Aftermath Foreclosure
What is the Aftermath of a Foreclosure Like?
A foreclosure can be a very stressful and emotionally draining experience. Many who decide not to contest a foreclosure on their property think that the foreclosure means an end to their problems. If the bank sells my house, then I don’t have any debt to the bank, right? Not exactly.
Unfortunately, many people are unable to get protection from foreclosure. Despite all the talk from the government about modifying the loan, most loan modification applications have been turned down by the major mortgage lenders. In fact, one of the largest mortgage lenders has turned down 96% of requests. It goes without saying, homeowners in debt are in trouble and have few options to help them.
Now, putting the emotional trauma of losing a home aside (if that is possible!), the financial burdens might not yet be over. Many people mistakenly think that they won’t have any mortgage debt after their house sells in foreclosure. However, it’s not that simple. If the home sells for a lower amount than you owe on your mortgage, you still owe whatever the rest of your mortgage balance. A deficiency is the difference between the value of the mortgage and the selling price of your home.
With the recession, more people than ever have a deficiency after a foreclosure. The current market has caused a big decline in home values. If you bought your home for $100,000 in 2005 with a mortgage, but now your home is only worth $80,000, then chances are that your mortgage balance is greater than the value of your home.
Lenders won’t simply forgive deficiencies or let them go, either. Creditors will use every option available to collect the deficiency including wage garnishment, go after other property, or seize your bank accounts.
Although many are more in debt than they thought they ever could be, there are still options to pursue to help you with your deficiency balance. A Chapter 7 bankruptcy can eliminate your deficiency balance and other “unsecured” debts—like credit cards, medical bills, and payday loans. Without the burden of debt on your shoulders, you’ll be able to live a life free of creditor calls, wage garnishments, and constant threats to your property.
You owe it to yourself and your family to give Chapter 7 a look. Find free information like bankruptcy FAQ, articles, blogs, and even free publications from reputable bankruptcy attorneys in your area. Remember, many attorneys will offer you a free consultation but the best ones will give you free information before you set foot in an office.
About the Author
Jim Brown is the founder and owner of Castle Law Office of St. Louis, P.C. He has been filing bankruptcy cases in Missouri since 1994 and has released several publications based on his experience. You can find these publications and more information by visiting his website at
http://www.CastleLaw.net
.
Foreclosure consequences
|
|
Foreclosure aftermath: preying on senior homeowners: hearing before the Special Committee on Aging, United States Senate $22.34 Original publisher: Washington: U.S. G.P.O., 2008. LC Number: KF26.5 .A3 2008a OCLC Number: (OCoLC)277050603 Subject: Mortgage loans — Corrupt practices — United States. Excerpt: … 11 4093.005 VerDate Aug 31 2005 14: 48 Oct 10, 2008 Jkt 000000 PO 00000 Frm 00015 Fmt 6633 Sfmt 6633 H: DOCS 44093. TXT SAG PsN: JOYCE 4… |
|
|
FORECLOSURE AFTERMATH: PREYING ON SENIOR HOMEOWNERS $13.22 The BiblioGov Project is an effort to expand awareness of the public documents and records of the U.S. Government via print publications. In broadening the public understanding of government and its work, an enlightened democracy can grow and prosper. Ranging from historic Congressional Bills to the most recent Budget of the United States Government, the BiblioGov Project spans a wealth of gover… |
|
|
Photo Inflation. Aftermath of inflation–a foreclosure tale in Iowa in the early 1930s when the bottom fell out $3.99 High quality reprint of original from the Library of Congress… |
