Homestead

Published on: June 24, 2011

I Walked Away from my Mortgage. Can I Get Rid of the Deficiency Judgment by Filing Bankruptcy?

If you are one of the many people who walked away from your home before filing for bankruptcy, you might still owe the bank some cash. Generally, when you walk away from your mortgage, the bank will foreclose on your home, sell it, and likely take the loss on that sale (the selling price is usually lower than what you might have owed the bank).

However, Jacksonville Bankruptcy Lawyers are seeing an increase in what is called a “deficiency judgment.” Banks might ask for a deficiency judgment, which is essentially a lawsuit filed by the bank against you. It means the bank wants you to pay the difference between what you owed on the home and what it sold for.

For example, let’s say you walk away from a mortgage that you owe $200,000 on. The bank forecloses on your home and sells it for $50,000. The bank might then seek a deficiency judgment. If the court grants the judgment, you’ll be on the hook for that $150,000 + interest.

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Published on: June 3, 2011

A Creditor Has Put a Lien On My Homestead. Should I File Bankruptcy?

By David M. Goldman

According to Florida Statute 222, there are only 3 reasons that a lien can be put on your homestead: 1. a mortgage 2. unpaid taxes 3. a contractor’s lien (you contracted for work to be done on your homestead and did not pay). Although this is the law, very often a creditor may put an improper lien on your homestead. To remove the lien, simply file and record a Notice of Homestead with the circuit court in the county in which the property is located. The Notice of Homestead you should use is listed in Florida Statute 222.01. The clerk will mail the Notice to the creditor via certified mail. After 45 days, the lien will disappear.

Although this process removes the lien from your homestead, it does not dissolve your liability to pay the debt so a bankruptcy might still be in your best interest. Speak with a Jacksonville bankruptcy attorney today to assess your specific situation.

Published on: May 6, 2011

How can I keep my home and file bankruptcy?

By David M. Goldman

Under a chapter 7 bankruptcy, you can keep your home by reaffirming the debt. This means that you will, through a Statement of Intention, tell the creditor that you wish to keep the property and will continue to be liable for the loan.

If you are behind in payments and able to make the current payments, you may want to file a chapter 13 bankruptcy. This will allow you to keep your home and pay the arrearages that you owe through your chapter 13 Plan. This Plan will be anywhere from 3-5 years in length and will allow you to catch up on all the monies owed to keep your house. You can put all your creditors in the Plan, including liens by homeowner’s associations, second mortgages, tax debt, etc. You can even, through the Plan, catch up on arrearages for your vehicle.

If you are thinking of filing bankruptcy and you want to learn more about how to keep your home, contact a Jacksonville attorney today for a free consultation.

Published on: May 5, 2011

I have two properties, one is my residence and one is a rental property. Can I keep one and not the other?

By David M. Goldman

Yes it is possible with a Florida bankruptcy to keep one property but not the other. When a bankruptcy is filed, you have the option to keep or surrender secured collateral, including real property. So you can decide, with the help of your Jacksonville bankruptcy attorney, for each property that you own what would be in your financial best interest: to surrender the property to the creditor or to retain the property and continue payments. But be mindful that in Florida, you can only take one homestead exemption in bankruptcy.

If you are behind on your payments, this can be cured. You can pay the arrearages that you owe through your Chapter 13 Plan. Talk with a Jacksonville bankruptcy lawyer to decide if keeping both a homestead and rental property would be in your financial best interest.

Published on: May 1, 2011

I Want to File Bankruptcy but Transferred a Deed to My Father Seven Months Ago. Will this Affect My Bankruptcy?

By David M. Goldman

Yes. Your father is an “insider”. (So is a friend or other relative.) To analyze property transferred to an insider, the trustee will look back one year. If you have transferred property to an insider within a year prior to filing, the trustee might try and undo the transaction. For creditors that are not insiders, the trustee will look back six months from the time of filing to analyze property transfers.

Contact a Jacksonville bankruptcy attorney today to assess your individual situation to see whether a trustee is likely to undo an insider transaction.

Published on: April 29, 2011

I Have Three Homes and Need to File Bankruptcy. Can I Keep all Three Homes?

By David M. Goldman

Yes, if you can afford them. You can reaffirm the debt on all real property by filing a Statement of Intentions indicating your desire to reaffirm in your bankruptcy. If you owe arrearages on these properties, you will probably want to file a Chapter 13. A Chapter 13 will let you cure your arrearages over time and so bring your balance current with your mortgagor. You do not have to give up any real property, but depending on your exemptions, you might have to pay extra money through your Chapter 13 Plan to keep any property that is not exempt. Contact a Jacksonville Bankruptcy Attorney now to find out about what exemptions you qualify for.

Published on: April 28, 2011

Another Foreclosure Mill out of Business

By David M. Goldman

The original foreclosure mills are starting to drop like flies. The Florida Foreclosure Defense Lawyers Blog has an article on the fate of the latest victim of the foreclosure fraud crisis, Ben-Ezra & Katz who is shutting down its operations. While not as large as the David J Stern firm who shut down a few months ago Ben-Ezra & Katz had almost 600 employees. The company’s demise began in February when the company lost all of its foreclosure business from Fannie Mae due to the mishandling of Fannie Mae’s foreclosure files.

Published on: February 28, 2011

Mortgage Delinquency Rate Falls to Lowest Level Since 2008

By David M. Goldman

According to the latest statistics from the Mortgage Bankers Association (MBA), the mortgage delinquency rate on single-family homes fell to its lowest rate since the fourth quarter of 2008, falling to 8.22% for the fourth quarter 2010. The MBA’s chief economist, Jay Brinkmann, said the fourth quarter stats represent “significant across-the-board” decreases in delinquent mortgages in the U.S. Mortgages one payment behind have fallen to late 2007 levels and loans three payments behind have dropped to the lowest levels of 2010.

The MBA delinquency statistics do not include the mortgages that have already received a foreclosure filing but Brinkman noted that “every state but two (North Dakota and Arkansas) saw a drop in the 90-lus day delinquency rate and the two increases were negligible.” The number of loans in foreclosure or are at least one payment past due was 13.56%, a significant decline from the third quarter 2010 numbers.

Brinkman stated that the improvement in the delinquency rate should be attributed to the improvement in individual earnings due to the increase in private sector job growth and that “absent a significant economic reversal, the delinquency picture should continue to improve during 2011. If you are already facing a Florida Foreclosure Lawsuit or are delinquent on you mortgage loan, contact a bankruptcy Lawyer to see what foreclosure alternative options may be available to you.

Published on: January 22, 2011

Spike in Foreclosures Looms in 2011

By David M. Goldman

With news from RealtyTrac that lenders repossessed more the 1million homes in 2010 many homeowners may believe that the worst of the housing crisis is over, but industry experts say it will get even worse. Statistics from the fourth quarter of 2010 showed a significant drop in the number of foreclosure filings, most of which has been attributed to the foreclosure freeze due to the robo-signing scandal.

Many industry analysts believe that the delay from the foreclosure freeze will be over by the end of the first quarter of 2011 and clearing up those delayed foreclosures will cause 2011 to be another record year. Some figures show that 250,000 foreclosures were delay by the foreclosure freeze and this may cause a significant spike in the number of foreclosures in early 2011. This will only add to the overall number of bank-owned properties, which some industry insiders already estimate to be worth to close to $31 billion.

If you are currently facing or fear that you will be facing a Florida Foreclosure Lawsuit in the immediate future, contact a Jacksonville Foreclosure Lawyer or a Jacksonville Bankruptcy Lawyer today to see what defenses may be available to you.

Published on: December 20, 2010

Stripping my second mortgage in a Bankruptcy?

By David M. Goldman

In many cases the answer to this question is yes. Often times homeowners find themselves “underwater” in the home and are afraid that if they surrender their home in satisfaction of their first mortgage their second mortgage lender will pursue a deficiency against them or they will file a form 1099(c) creating tax liabilities for the amount of the second mortgage.

One of the most effective ways a Jacksonville Foreclosure Lawyer has found to prevent that from happening is for a homeowner to file a chapter 13 bankruptcy surrendering the house in full satisfaction of the first and second mortgage before the house if foreclosed on. By doing this, the homeowner prevents the holder of a second mortgage company from filing a deficiency claims because the house has not yet been sold and the funds dispersed. This method is especially effective for those homeowners who have little other debt and are looking to protect assets.

If you are facing a Florida Foreclosure Lawsuit and are considering your foreclosure alternatives, contact a Jacksonville Bankruptcy Lawyer today for a review of your case and explore what alternatives may be available to you.