My Blog

With the past freeze on foreclosures from the major banks and the moratorium on these foreclosures have caused a lot of hype. You will see these foreclosures coming back on the market as soon as the next week but this does not mean the issues stop here.

Did you buy a foreclosed home in the past 3 Years? If so better check your Title Insurance Policy! You can count on these past owners making claims on these foreclosures and you need to check and be sure your Title Policy protects you. If you didn't get a Title Policy then prepare yourself for a legal battle in the near future.

I am going to vent a little on the false thoughts people are given about filing for bankruptcy to save their home.

First off... the person advising you to do this will most likely be accepting a big check from you. That is my biggest issue with that.

Next, the more concrete facts about this. When you file bankruptcy, both Chapter 13 and 7 this issues an "Automatic Stay". This makes creditors cease their attempts to collect debt immediately. Also, if your house is in the foreclosure process it will postpone this... but for only 3-4 months typically. With 2 exceptions to this rule!

1. Motion to lift... the lender could get permission from court to lift the "Automatic Stay"

2. If your foreclosure is already filed, it may not stop the clock to the sale.

Let's say the two above do not apply to you, then you could postpone the foreclosure and work out a plan with your lender at this point. This plan is made to bring you back current and keep you there. You will most likely not be able to afford this plan either, because it will not be a huge difference from your original note.

So long story short... you're just forestalling the inevitable. Also, most likely pay a nice chunk of change to do so.