San Francisco Bankruptcy Attorney Blog

A San Francisco bankruptcy attorney
What is the Lender’s Role in Foreclosure?

What is foreclosure?

Foreclosure is the process by which the lender retakes possession of the property on which the mortgage was based. The lender’s interest is secured in the home and if there is a default in repaying on the note, the lender has the option of foreclosing on the property in order to satisfy the outstanding balance.

Why would a lender foreclose?

A lender will generally want to foreclose on a property to protect its interest. There is a concern that the property will not be kept in good condition or that the borrower will abandon the property and cause substantial disrepair. A foreclosure is also a way for the lender to regain some of the credit it extended to the borrower.

Will my lender tell me about a foreclosure?

Yes. The lender must inform you of an intent to sell the property. Generally the lender will also give you statements indicating how much is due in order to stop any foreclosure proceeding. Lenders must inform borrowers of any developments regarding the foreclosure and whether there is a sale date.

What if I rent my home and I’ve defaulted on the mortgage?

The lender must still give notice to the tenants. If the home is occupied there is generally a 60 day period to allow for the renters to vacate the property. Once the time runs on having the renters vacate, the lender will generally need to bring an unlawful detainer proceeding against the tenants in order to have them removed from the property. If you are renting it is important to let the lender know the home is occupied so there is plenty of notice given to the renters.

If you have questions regarding bankruptcy in San Francisco or bankruptcy in the greater Bay Area please contact our San Francisco Bankruptcy Attorneys at (415) 946-8882 or (1800) 941-6730 for a free consultation or visit www.sagarialaw.com and request a free face to face appointment in a Sagaria Law office location nearest you. Our team of Bankruptcy Lawyers, Bankruptcy Client Care Specialists and Bankuptcy staff supporting San Francisco and Bay Area consumers in debt can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Francisco Bay Area!

A San Francisco bankruptcy attorney addresses:

How can bankruptcy assist me in keeping my home?

Bankruptcy will not only stop a foreclosure sale but can also allow an individual to make up missed mortgage payments. Chapter 13 of the bankruptcy code gives the filer three to five years to catch up on past due mortgage payments. This means that if the filer is able to pay the mortgage as it normally comes due, plus a little extra to make up for the missed payments, the home will not be sold. In addition, at the end of the three to five years, the filer will be current on their mortgage and exit bankruptcy with no threat of foreclosure.

If you have questions regarding bankruptcy in San Francisco or bankruptcy in the greater Bay Area please contact our San Francisco Bankruptcy Attorneys at (415) 946-8882 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Francisco Bankruptcy Attorneys. After you have spoken with one of our Bay Area bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of Bankruptcy Lawyers, Bankruptcy Customer Care Specialists and Bankuptcy staff supporting San Francisco and Bay Area consumers in debt can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Francisco Bay Area!

A San Francisco bankruptcy attorney addresses the question: Can filing bankruptcy assist with foreclosure?

Yes. Filing a bankruptcy petition will automatically stop any foreclosure proceeding, whether it is the lender notifying you that the loan is in the pre-foreclosure stage or whether there is a trustee sale date for selling the home. An automatic stay goes into effect once a bankruptcy petition is filed, meaning no adverse action can be taken against you by your creditors.

If you have questions regarding bankruptcy in San Francisco or bankruptcy in the greater Bay Area please contact our San Francisco Bankruptcy Attorneys at (415) 946-8882 or (1800) 941-6730 for a free consultation or visit www.sagarialaw.com and request a free face to face appointment in a Sagaria Law office location nearest you. Our team of Bankruptcy Lawyers, Bankruptcy Client Care Specialists and Bankuptcy staff supporting San Francisco and Bay Area consumers in debt can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Francisco Bay Area!

A San Francisco bankruptcy attorney talks about bankruptcy and a second mortgage...

Can bankruptcy assist with my second mortgage?

Yes. In a chapter 13 bankruptcy, if the current market value of your home is less than the primary mortgage amount, you can remove the second mortgage and treat it as unsecured debt. This means that you will only be responsible for making your primary mortgage payments each month. Depending on your income, there might be some repayment to unsecured creditors, but upon completion of your chapter 13 plan, the second mortgage will no longer be attached to your home.

If you have questions regarding bankruptcy in San Francisco or bankruptcy in the greater Bay Area please contact our San Francisco Bankruptcy Attorneys at (415) 946-8882 or (1800) 941-6730 for a free consultation or visit www.sagarialaw.com and request a free face to face appointment in a Sagaria Law office location nearest you. Our team of Bankruptcy Lawyers, Bankruptcy Client Care Specialists and Bankuptcy staff supporting San Francisco and Bay Area consumers in debt can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Francisco Bay Area!

A San Francisco bankruptcy attorneyhelps with:
What is foreclosure?

A foreclosure notice is a notice that you, or "the borrower," receives in the mail warning you of a pending foreclosure sale on your home. Typcially, the foreclosure notice is sent due to non-payment on a mortgage for a period of anywhere between 1-6 months, but typically the foreclosure notice is initiated once someone is 3-4 months behind and has made no contact with their lender. Foreclosure is the process by which the lender retakes possession of the property on which the mortgage was based. The lender’s interest is secured in the home and if there is a default in repaying on the note, the lender has the option of foreclosing on the property in order to satisfy the outstanding balance. If you have received a foreclosure notice or know someone who has, the worst thing you or they can do is nothing. Calling your lender right away to avoid foreclosure is the right thing to do. If you are unable to do so or your foreclosure is beyond the stages of reaching resolution with your lender, legal counsel shoud be sought.

If you have questions regarding bankruptcy in San Francisco or bankruptcy in the greater Bay Area please contact our San Francisco Bankruptcy Attorneys at (415) 946-8882 or (1800) 941-6730 for a free consultation or visit www.sagarialaw.com and request a free face to face appointment in a Sagaria Law office location nearest you. Our team of Bankruptcy Lawyers, Bankruptcy Client Care Specialists and Bankuptcy staff supporting San Francisco and Bay Area consumers in debt can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Francisco Bay Area!

A San Francisco bankruptcy attorney discuss foreclosure...

What is foreclosure?
A foreclosure happens when the lender retakes possession of the home, which was the collateral for the mortgage. Generally this occurs when the borrower has defaulted on the loan and is unable to work out an agreement with the lender. To protect its interest, the lender will retake the home and try to sell it to cover the outstanding balance.

Can I stop a foreclosure?
There are several ways to stop a foreclosure. One is to pay the default amount – generally equal to the number of missed payments plus some late fees. Some lenders will not accept the default amount and require the entire loan balance due in order to remain in the home. If paying off those balances is not a viable option, declaring bankruptcy can prevent a foreclosure. When an individual files for bankruptcy an automatic stay goes into effect, preventing the sale of a home or the bank taking repossession of the home.

Can I remain the home after it has been foreclosed?
That generally depends on what the lenders plans are and whether it was sold at the trustee sale. It is often possible to prolong the amount of time you can remain in a home after defaulting on your mortgage but it is difficult if the bank gets the Sheriff involved. Going through an unlawful detainer process is not simple and can make finding a new place to live difficult.

What if I cannot afford my home but don’t want a foreclosure?
You should ask you lender if they do a “cash for keys” exchange. That is basically just letting the lender know you cannot afford to remain in the home but want to leave without any issues. If you surrender your keys to the lender they will often pay you to help cover certain moving expenses. This is done to protect the lenders interest in the property.

If you have questions regarding bankruptcy in San Francisco or bankruptcy in the greater Bay Area please contact our San Francisco Bankruptcy Attorneys at (415) 946-8882 or (1800) 941-6730 for a free consultation or visit www.sagarialaw.com and request a free face to face appointment in a Sagaria Law office location nearest you. Our team of Bankruptcy Lawyers, Bankruptcy Client Care Specialists and Bankuptcy staff supporting San Francisco and Bay Area consumers in debt can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Francisco Bay Area!

A San Francisco bankruptcy attorney on: What is chapter 13 bankruptcy?

Who can file for chapter 13? Chapter 13 bankruptcy is a type of bankruptcy where some or all of an individuals outstanding debts are repaid over the course of three to five years. Most people choose chapter 13 if they either make more than is allowed under chapter 7 or want to repay arrears on secured property. Chapter 13 also allows debtors to repay taxes and other debts owed to government agencies.

How is chapter 13 different than chapter 7? Chapter 7 bankruptcy is known as liquidation bankruptcy, where all of the debtors property they are not able to exempt is sold and repaid to creditors. The entire process is about three months and the debtor does not develop any type of repayment plan. Chapter 13 is different in the sense that the debtor can generally keep all of their property and instead uses income or other constant source of money to repay creditors. A monthly payment is made each month and at the end of the plan the debtor receives a discharge.

Why would someone want to file under chapter 13? Chapter 13s are beneficial to those who owe a lot of tax debt or are behind on their secured mortgage payments and just need time to catch up. An ideal chapter 13 debtor is someone with a constant income who will be able to not only make the regular monthly payments on their secured property, but also a little bit more to account for the past due amount and administrative fees associated with chapter 13 administration. It is generally not suggested that someone file chapter 13 if they cannot keep current on their secured property and afford to pay the administration costs.

Are unsecured creditors repaid in chapter 13? It depends. Often debtors make too much money to file under chapter 7 and so there is repayment to unsecured creditors over the course of the plan. Most chapter 13 cases result in only a percentage repayment, although some individuals make enough to fully repay all debts. Chapter 13 can still be a good option even if there is 100 percent repayment because the interest rates are lower and the debts are paid off in five years.

If you have questions regarding bankruptcy in San Francisco or bankruptcy in the greater Bay Area please contact our San Francisco Bankruptcy Attorneys at (415) 946-8882 or (1800) 941-6730 for a free consultation or visit www.sagarialaw.com and request a free face to face appointment in a Sagaria Law office location nearest you. Our team of Bankruptcy Lawyers, Bankruptcy Client Care Specialists and Bankuptcy staff supporting San Francisco and Bay Area consumers in debt can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Francisco Bay Area!

A San Francisco bankruptcy attorney addresses: What happens at the meeting of creditors?

What is the meeting of creditors?
Section 341 of the Bankruptcy Code allows for the individual filing for bankruptcy to be asked questions by the trustee and creditors. The meeting gives interested parties an opportunity to question the debtor about the circumstances that led to the filing of bankruptcy and any specific questions related to outstanding balances the debtor is seeking to have discharged.

Is my appearance necessary? Yes. It is required that the debtor appear at the 341 hearing and be examined by the trustee and any creditors. Although it is possible to have the meeting postponed, it needs to be conducted in order for a debtor to receive a discharge.

How long is the meeting?
For most debtors the trustee only asks a few questions relating to the information contained in the petition. Creditors rarely show up so most debtors will not have to worry about being confronted and questioned about certain debts. In chapter 13 cases the trustee will inquire as to whether the planned monthly payments are going to pose a hardship.

What happens when the meeting is concluded?After the trustee has completed the examination they will file a report with the court indicating what happened. In a chapter 7 case, if there are no assets available to sell, the trustee enters a no asset report. In chapter 13 cases the trustee will conclude the meeting and make a determination as to whether to recommend the chapter 13 plan for confirmation or if more work is needed in order to develop a feasible plan.

If you have questions regarding bankruptcy in San Francisco or bankruptcy in the greater Bay Area please contact our San Francisco Bankruptcy Attorneys at (415) 946-8882 or (1800) 941-6730 for a free consultation or visit www.sagarialaw.com and request a free face to face appointment in a Sagaria Law office location nearest you. Our team of Bankruptcy Lawyers, Bankruptcy Client Care Specialists and Bankuptcy staff supporting San Francisco and Bay Area consumers in debt can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Francisco Bay Area!

A San Francisco bankruptcy attorney responds to: What Can A Loan Modification Do For Me?

Loan modifications are changes to the contractual terms of your mortgage. Generally the changes result in either some of the outstanding balance being reduced or a reducing in your monthly payments. Whatever the change, loan modifications are designed to help those who otherwise are having a difficult time meeting their monthly mortgage obligation.

There are some drawbacks associated with the loan modification process. Generally lenders will not modify the terms of an existing agreement unless the borrower can show the mortgage is causing a hardship for the household. The most common “requirement” is that the borrower not be current on their mortgage payments. Those who are current and up to date with the payments have a much more difficult time modifying the terms of the agreement.

Lenders will typically set up a borrower on a trial period in order to test how the new monthly payments will work. If the borrower successfully makes it through the trial period the lender may choose to make the modified terms permanent. Often this includes building whatever arrears have accumulated back into the payment terms.

Advantages of obtaining a loan modification mean that you often are no longer considered in default with your mortgage because any default amount is built back into the new payments. This can potentially help those who would otherwise need to file a chapter 13 bankruptcy in order to save their home. A loan modification will generally allow those thinking of bankruptcy to proceed under chapter 7 to discharge debts instead of working out a repayment plan with respect to mortgages.

If you have questions regarding bankruptcy in San Francisco or bankruptcy in the greater Bay Area please contact our San Francisco Bankruptcy Attorneys at (415) 946-8882 or (1800) 941-6730 for a free consultation or visit www.sagarialaw.com and request a free face to face appointment in a Sagaria Law office location nearest you. Our team of Bankruptcy Lawyers, Bankruptcy Client Care Specialists and Bankuptcy staff supporting San Francisco and Bay Area consumers in debt can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Francisco Bay Area!

A San Francisco bankruptcy attorneydiscusses bankruptcy and foreclosure...

Filing a bankruptcy petition prior to the sale of a foreclosed home stops the foreclosure process. Bankruptcy and foreclosure are closely related in the sense many individuals look to bankruptcy to help discharge debts and stop adverse actions against them. When the bankruptcy petition is filed a stay automatically goes into effect.

The stay prevents lawsuits, garnishments, and other actions from being filed against debtors while under the protection of the bankruptcy court. The automatic stay is an important tool for individuals who want to stop a foreclosure. The stay not only allows individuals to remain in their homes during bankruptcy but also allows them to rearrange their finances in order to work out a feasible repayment plan.

Lenders, however, can petition the court to have the stay lifted as applied to them. The stay is generally lifted if the individual communicates to the bank that there is no intention to remain in the property or that the property is to be surrendered during or after the bankruptcy. The bank often wants to retake possession of the home in order to protect its interest in the property.

The automatic stay goes into effect regardless of what chapter bankruptcy is filed. It is important for those filing for bankruptcy to understand that it is still possible to lose property when the bankruptcy petition is filed. As mentioned above, creditors will often ask the court to lift the stay if the property is not essential to the debtors reorganization or if payments are not made after the petition is filed.

If you have questions regarding bankruptcy in San Francisco or bankruptcy in the greater Bay Area please contact our San Francisco Bankruptcy Attorneys at (415) 946-8882 or (1800) 941-6730 for a free consultation or visit www.sagarialaw.com and request a free face to face appointment in a Sagaria Law office location nearest you. Our team of Bankruptcy Lawyers, Bankruptcy Client Care Specialists and Bankuptcy staff supporting San Francisco and Bay Area consumers in debt can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Francisco Bay Area!