If you have made the decision that you need to file for bankruptcy and you have hired one of the qualified bankruptcy lawyers in Escondido to help you through the process, chances are you have successfully wiped out most if not all of your debt. The bankruptcy court reviewed your case, approved it, discharged your debt and closed out the filing.
No what do you do? Especially what do you do regarding your house? Yes, the bankruptcy filing wiped out the mortgage you owed to your mortgage lenders, but they still have the right to recoup their losses. They still have the right to foreclose on you, and they will unless to you take action.
If your mortgage lender did not file a Motion for Relief of Automatic Stay during your bankruptcy protection period of which your bankruptcy lawyers in Escondido would have informed you, your mortgage lender is now free to resume foreclosure activity. A Motion for Relief of Automatic Stay is a petition your creditor files with the bankruptcy court requesting that your home is removed from the bankruptcy protection. If there is equity in your home, the trustee will generally deny the motion, but if your home is underwater then the court-appointed trustee will release the automatic stay so that the bank can continue trying to foreclose on you.
After your bankruptcy has been discharged and the case closed, there is no reason to file the motion as there are no restrictions keeping a lender from foreclosing. Assuming you did not reaffirm your mortgage debt– because the home was over leveraged– you no longer owe your bank the money but that does not mean you should just sit back and wait for them to foreclose on you. There are other options available. You can attempt to get a loan modification or you can request the bank approve you short selling the home. There are benefits to both.
A loan modification simply means that you are requesting the bank to modify the terms of your previous mortgage agreement. You are not reaffirming the debt. Even if you wanted to reaffirm, it is highly unlikely a bankruptcy judge would allow it. You are simply agreeing to continue sending the bank money every month for the right to continue living in the home. If you have no where else to go, this may be an option for you. As long as you continue to make your payments, the bank will not foreclose on you.
Bankruptcy lawyers Escondido – Bankruptcy lawyers can be your greatest ally when looking for financial relief through bankruptcy. Get in touch with Vista Bankruptcy for help.
