Foreclosure and Bankruptcy

SAVE YOUR HOME!

With an average of almost 10,000 foreclosures per month over the last year, and an unemployment rate near 10%, San Diego County has been hit hard by the difficult economic crisis. You may be in a mortgage you cannot afford, or have a second mortgage which when combined with the first mortgage creates debt that far exceeds the value of your property. Your lender, who is attempting to get as much money from you as possible, may not modify your loan or may be dragging their feet on a loan modification with a pending foreclosure. Bankruptcy may be an effective way to prevent your home from being sold at a foreclosure sale. You can eliminate liabilities and obtain a “fresh start” in Chapter 7, cure missed mortgage payments or wipe out the second with a lien strip in a Chapter 13.

American Debt Relief is lead by attorney Leonard J. Ackerman. For over 15 years, Len has been helping people save their homes and stopping foreclosures. He can help navigate you through the process, and allow you and your family to remain in your home. He may even be able to postpone the sale long enough to allow you to sell your home and/or eliminate potential deficiency balances. We also have a network of real estate professionals who may be able to assist you with the sale, refinance, or modification of your existing loan.

How it works

a. Stop the foreclosure - the automatic stay

When you file for either Chapter 7 or Chapter 13 Bankruptcy, the bankruptcy court will automatically notice out to creditors an order for an "automatic stay". The automatic stay will force creditors to cease any collection activities, and if your home is scheduled for a foreclosure sale, the sale will be postponed while the bankruptcy is pending.

b. Relief from the automatic stay

While creditors have a right to file a motion for “relief from the automatic stay,” there are numerous defenses, and motions often do not get filed or take months to file. This can provide you with significant additional time to decide what to do without worrying about losing your home in the meantime. In addition, if you can show that the creditor is “adequately protected,” their motion may be denied.

c. Cure the arrears

In a Chapter 13, the missed mortgage payments can be included in the Chapter 13 plan and paid out over 36-60 months. This is often much more digestible than curing over 6 months, or with a lump sum as lenders often require.

d. Lien strip

You also may be able to eliminate the second and third mortgages COMPLETELY depending on how much equity your home has. For example, if your home is worth $450,000, and you owe $460,000 on the first mortgage, and $95,000 on the second mortgage, we can file a lien strip motion to eliminate the second mortgage.

At American Debt Relief, we believe that no one should have to deal with the burden of debt by themselves. Our firm is here to provide the legal assistance and the individual attention that will help you with your financial future. Contact Attorney Leonard J. Ackerman today for a Free Consultation!