Foreclosure

• Options When Facing Foreclosure
• Foreclosure FAQ
• Foreclosure Solutions Video
• Fees For Stopping Foreclosure
• Why Wadhwani & Shanfeld for Foreclosure Options?

Options When Facing Foreclosure

Foreclosure is one of the most frightening prospects for a struggling homeowner, but luckily there are some options for stopping a foreclosure or lessening its impact. Three of the best options are Chapter 7 bankruptcy and/or short sale, or Chapter 13 bankruptcy.

Chapter 7

If you are a homeowner who is facing foreclosure on your home, Chapter 7 bankruptcy might make sense for you if you would like to buy yourself some additional time in the home, but eventually walk away from it.

When you file bankruptcy, an automatic court order is issued called an “automatic stay.” This halts all legal action against you by creditors, including foreclosure. This automatic stay usually lasts throughout your case, and can push back the sale date on your home up to twelve months, thus buying you more time in the home.

In addition to buying you more time, Chapter 7 can get rid of any deficiency that might arise from the foreclosure. When your lender forecloses on your home, it will turn around and resell the home and use the proceeds to pay down what you owe them. If the sale proceeds are not enough to do this, however, there will be an outstanding balance called a “deficiency.” In some cases, this can become a debt of yours. Chapter 7 is ideal for getting rid of this debt. Chapter 7 Bankruptcy

Chapter 13

If, on the other hand, you are facing foreclosure but want to keep your home, then Chapter 13 will be a much better option for you. This is because Chapter 13 allows you to come up with a plan for making up arrearages, and might even allow you to strip off your second mortgage, all while keeping your lender from foreclosing.

Until a few years ago, property values steadily rose, resulting in significant equity for homeowners. Many took out a second mortgage to cash out this equity. When property values began to drop sharply, these homeowners were often stuck owing more on their first mortgage than their home was worth.

If you are one of these homeowners, we can use Chapter 13 to extinguish your second lien. Beyond getting rid of your second mortgage, since your Chapter 13 case let you catch up on arrearages on your first, you will have a much better chance of fending off foreclosing and stay in your house permanently. Chapter 13 Bankruptcy

Short sale

If you are walking away from your home but do not want to pursue bankruptcy, then we can help you set up a short sale of your home. A short sale is where you and your lender agree that you will line up a buyer for your home, and the lender will forgive your loan even if the buyer pays less than you owe on the home.

The benefits of short selling your home instead of walking away and allowing the lender to foreclose are twofold: First, since there is no actual foreclosure, no foreclosure will appear on your credit report. Second, no deficiency will attach, and thus no leftover debt from the house will follow you going forward. Short selling your home requires some extra effort on your part, but you benefit from this extra effort.

Please give our office a call to see if a short sale of your home is your best option.

Foreclosure FAQ

Q: When do I need to act to stop foreclosure?

A: If you plan to use bankruptcy to stop a foreclosure on your home, your case needs to be filed before the actual sale of your home takes place. Since these sales are usually around 10:00 a.m., your case must be filed by 8:00 a.m. However, to ensure notice of the filing is properly received, it is best to get your case filed by the day before the sale.

Do not, however, think that just because you can wait, you should wait. Once it becomes clear that your lender is beginning the foreclosure process, and you decide that you want to file bankruptcy to get rid of your debt AND buy yourself some more time in the home, then you should contact our office. The sooner you contact us, the better we can time your filing to ensure that you get the maximum time possible in the home.

Please give our office a call to see if it’s the right time to start preparing your case.

Q: How long will bankruptcy stop foreclosure?

A: If you file a Chapter 7 case, bankruptcy can delay foreclosure up to 1 year.

If you file a Chapter 13 case, and you make all up all of your arrearages through your plan while continuing to pay your mortgage payments on your own, then foreclosure will never occur. This is because your case will get you current, and you will keep yourself current, and thus the lender will have no reason to foreclose.

Q: If I don’t want the house, should I just walk away?

A: No. While walking away is the easiest thing to do, you are doing yourself a disservice by doing so.

Even if you want to give up the house, filing a Chapter 7 can buy you up to a year in the house, which you can use to save up for money to pay for the next place you live. Also, filing a Chapter 7 case can ensure that no deficiency relating to the house follow you forward in life.

If you do not want to file bankruptcy, you can short sell your house. This will prevent a foreclosure from appearing on your credit report, and will prevent a deficiency from follow you forward.

Q: Do you service my location?

A: We service all of California, with offices in Sherman Oaks, Long Beach, Ontario, Lancaster and Los Angeles.

If it is not convenient to visit one of our offices, we can handle your entire case by phone and email! Please give our office a call for a free consultation.

Foreclosure Solutions Video

Fees For Stopping Foreclosure

If you choose Chapter 7 bankruptcy to stop foreclosure, the cost of filing your case will be determined by the complexity of you case.

If you choose Chapter 13 bankruptcy to stop foreclosure while trying to save your home, the cost of your case is pre-set by the bankruptcy court.

If you choose to short sell your home, we can refer you to a broker who we work very closely with, and his office can help you line up a buyer.

No matter which you choose, our fees are highly competitive, and we have the experience you need to accomplish the goals you have for your home and finances.

Why Wadhwani & Shanfeld for Foreclosure Options?

When you are facing foreclosure, you have more options than you might think. Depending on your intention with your home, Chapter 7, Chapter 13 or a short sale of your home can go a long way to minimizing the damaging effect of a foreclosure, or stopping the foreclosure altogether. In addition, there are other customized options that our office can help you formulate. Our experience and full service offering will help you find the best solution that maximizes your chances for success while minimizing any potential for harm.

We service all of Southern California, and have offices located conveniently in Sherman Oaks, Long Beach, Ontario, Lancaster and Los Angeles. If you would rather not come to one of our offices, we can handle your entire case by phone and e-mail.

We also offer a free consultation so that you can get the answers you are looking for right away. Give us a call to find out about your options.