December 2010 Monthly Archive
December 28, 2010 | Comments: 1
Forbearance in bankruptcy can be a complex matter that requires help from a qualified attorney. Forbearance is a special financing arrangement that delays loan payments and prohibits banks from commencing with foreclosure or repossession of property used to secure the loan.
Forbearance in bankruptcy can go awry because technically borrowers are defaulting on the forbearance plan once they record their bankruptcy petition. However, when the petition is submitted the courts enter an automatic stay that stops collection activities from all creditors, including mortgage lenders.
December 22, 2010
If you are considering filing chapter 13 bankruptcy it is crucial to take time to become educated about the process. Obtaining debt help through personal bankruptcy is not an easy or inexpensive process. The majority of people who use this strategy to reduce financial burdens often find it causes more harm than good.
Filing chapter 13 bankruptcy requires debtors to retain the services of a bankruptcy lawyer. This can be expensive because new bankruptcy laws require lawyers to certify that all financial information provided is truthful and accurate.
December 16, 2010
Preforeclosure is the last opportunity borrowers have to cure mortgage arrears or work out a payment plan with their lender to avoid foreclosure. This phase takes place once lenders send out a Notice of Default, which normally occurs when borrowers are 60 days delinquent with loan payments.
Once mortgagors enter into preforeclosure they may limit eligibility for foreclosure prevention strategies. Therefore, it is important to attempt to work out a payment plan the moment borrowers realize they will not be able to fulfill their loan obligation.
December 09, 2010
Inheritence property consists of real property, cash, and personal belongings that have been gifted to others via a Will, trust, or probate law. Anything that belonged to the decedent must be transferred to a surviving spouse, family members, friends, institutes of education, or charitable organizations.
The most common way to gift inheritence property is through a last will and testament or trust. Estates not protected by a trust must undergo the process of probate. This is required in all states to ensure estates are settled according to state probate laws.
December 01, 2010
A mortgage loan modification can help borrowers facing temporary financial setbacks, but able to afford future home loan payments. Loan modifications do not reduce the principal amount owed on the loan. Instead, the terms are extended or the interest rate is reduced.
Applying for a mortgage loan modification can be a time-consuming process. Borrowers must first contact their lender to determine if they qualify for a loan modification. Banks require borrowers to fill out a request for modification and affidavit (RMA) form to evaluate borrowers' financial status.