WHAT WE ADVOCATE

Avoiding Chapter 13

Customarily, if we timely notify the lender of a legitimate listing for a sale of the property they will provide us the time necessary to market, sell and close on the property. There is no need then for a Chapter 13 filing to stop the legal proceedings.

Most are aware that Chapter 13 Bankruptcy is a fantastic “tool” to immediately stop a pending foreclosure sale. However, what most do not know is that some 90% of all pro se Chapter 13 filings go on to be dismissed.

Most of those are dismissed within months of the filing leaving the property owner vulnerable to a quickly rescheduled foreclosure auction.

What we have seen, all too often, is the rush to file a Chapter 13 proceeding upon the start of a foreclosure proceeding. Many times, properly marketing the property instead of putting band aids on the problem could be more worthwhile.

The main issue with most Chapter 13 filings is the requirement of making the current mortgage payments together with the arrears spread out over up to five years. In addition, interest on the arrears together with a 10% statutory fee to the Chapter 13 trustee is an added cost that just makes the total payments very difficult and leads to dismissals.

So, again, if you have the necessary income sure it is great. But, most do not and are just setting themselves up for failure.

Coupled with the detrimental credit implications a Chapter 13 filing just fuels the negativity associated with a foreclosure proceeding.

BENEFITS

Did you know that - Selling your property and paying off your defaulted mortgage at the closing will still allow you to buy another property after a couple of years?

It is not considered a foreclosure at that time and will not appear on your credit rating as such!

The end up is that for peace of mind and security it is best to avoid the property being foreclosed off and rather to sell the property, take the funds and relocate on your terms and not that of the lender.

Many people assume that because their property is underwater, have lived there for maybe 5 to 10 years or more without making any mortgage payments that too much is owed and that they should just walk away and let the property be foreclosed. We say, absolutely NOT.

A monumental side benefit of a fully approved Short Sale by the lender is that they will allow you to market, sell and close on the property thus providing you with the necessary time to get your affairs in order and to close on your schedule.

Come to us, let us list the property as a Short Sale and we will file with your lender.

There is nothing to be lost and all to be gained.

If the lender/bank accepts and agrees to the Short Sale they will pay ALL the customary fees associated with the closing including state and local required transfer taxes, bank attorney fees, and even our commissions.

You pay absolutely nothing, at the closing, plus we request that they additionally pay your relocation costs. Yes, you walk away with a check!