Since the release of the Governments "HAMP" Making Home Affordable Program home foreclosures have increased rather than decreased. Many of the borrowers in trial mods are denied permanent loan modifications even after making all their scheduled payments on time. Although this doesn't seem fair to those who make the effort to avoid foreclosure or short sale, it's happening all over the country.
Denied Loan Modifications
So what do you do if you were denied a loan modification? You can try and try again, but the more delinquent you are the tougher it may be to avoid foreclosure. You can look into legal action against your Mortgage Servicer or consult with a bankruptcy attorney who practices foreclosure defense as soon as you're denied. Consulting with a bankruptcy attorney is critical as he/she can help explain all your options and see if you would qualify for a Chapter 7 or Chapter 13 plan. You need to understand the foreclosure laws and time lines in your state, and how to protect your personal liability and avoid foreclosure.
While you can file Chapter 7 bankruptcy to stop foreclosure with an "automatic stay", you must bring your 1st mortgage current to keep your home. While the lender may negotiate a loan modification while in bankruptcy, there's no guaranteed result. If you file a Chapter 13 bankruptcy you must be able to afford the repayment of the 1st mortgage over 5 years. Regardless of the type of bankruptcy chapter you file, filing bankruptcy prior to foreclosure will help you avoid a deficiency judgment or 1099 income tax implications.
Finding an Attorney
Finding a good attorney is relatively easy if you know who to ask or where to look. Because you're mentioning bankruptcy, most consumers avoid asking friends and family for a variety of reasons. So how are most people searching for a bankruptcy attorney? For the most part they go to the IInternet, attorney referral services or the Yellow Pages and search for a bankruptcy attorney in their city.
For instance; in California a search like California Chapter 13 bankruptcy attorney followed by your zip code or ( your city) bankruptcy attorneys are popular searches when looking for a bankruptcy attorney in California. This way you can nail down an attorney close to you. Also, reliable Law firm sites are primary real estate spots for California bankruptcy attorneys being they are a trusted source and easy to find on the Internet. If you search terms like "California foreclosure attorney", “how to file bankruptcy”, “bankruptcy attorney in California” or “What happens to my Property When I File for Bankruptcy ?” you will probably find local bankruptcy attorneys due to your IP address without putting in your zip code or city.
Regardless how you go about locating a California bankruptcy attorney near you the important thing is you find one who is reliable, reasonably priced and knowledgeable with both Chapter 7 and Chapter 13 bankruptcies. The California bankruptcy attorneys at the Law Offices of Zhou&Chini offer FREE consultations, reasonable prices and aggressive representation. Call us today at (800) 972-9600 for a FREE consultation or visit us at zhouchinilaw.com.
