| Is anybody out there buying houses? Sure there | | | | temporary fix. Many people fail to realize that filing |
| are. But, the numbers have dropped significantly | | | | bankruptcy to stop foreclosure requires them to |
| and experts predict the housing market will get | | | | repay mortgage arrearages and outstanding |
| worse before it gets better. This leaves | | | | debts. These debts are spread out over a period |
| distressed homeowners who need to sell their | | | | of time; usually three to five years. |
| house quick in serious trouble. | | | | Chapter 13 payments are in addition to regular |
| Buying houses today is entirely different than it | | | | monthly expenses. If the debtor is struggling to |
| was only months ago. Declining property values | | | | pay their mortgage payment, how in the world |
| have left many homeowners owing more than | | | | are they going to pay additional money? In many |
| their house is worth. Borrowers holding subprime | | | | cases people fail out of bankruptcy within the first |
| loans are unable to pay their mortgage and many | | | | year. |
| are facing foreclosure. | | | | Once a debtor misses their payment to the |
| With the current credit clog, buyers aren't able to | | | | bankruptcy Trustee, creditors can petition the |
| obtain financing. Homeowners can't sell their house. | | | | court requesting dismissal. When bankruptcy is |
| Realtors don't get paid. It's a vicious cycle that | | | | dismissed, the debtor loses all protection from the |
| has far-reaching effects. Those who are buying | | | | court and creditors can move forward with |
| houses are either paying cash or engaging in | | | | collection actions. |
| alternatives such as seller carry back mortgages | | | | If the debtor was on the verge of foreclosure |
| and lease-to-own contracts. | | | | when they filed for Chapter 13 bankruptcy |
| Homeowners facing foreclosure can request their | | | | protection, foreclosure actions can commence |
| lender enter into a short sale agreement. Although | | | | where they left off. For example, if the debtor |
| a short sale is rather complicated, it boils down to | | | | were five days away from eviction, that is where |
| the lender agreeing to accept less than is owed | | | | the lender can start if the debtor fails to make |
| on the loan. Why would a bank do this? Because it | | | | their payments. |
| can save them money in the long run. | | | | Homeowners who fall behind on their mortgage |
| A report published by Freddie Mac stated the | | | | must become proactive immediately. Experts |
| average cost of foreclosure is around $60,000. A | | | | state more than 50-percent of foreclosures occur |
| recent study shows foreclosures take | | | | because the homeowner failed to act. Instead of |
| approximately 18 months to complete. | | | | living in denial, being proactive from the beginning |
| Additionally, when banks hold non-performing | | | | places the homeowner in the driver's seat instead |
| loans, the Federal Reserve limits the amount of | | | | of under the wheels. |
| money they can borrow. If they can't borrow | | | | Sellers who need to sell their house quick should |
| money, they can't lend money. As you can see, | | | | locate private investors buying houses in the area. |
| foreclosures have a severe and negative impact | | | | There are many investors waiting for a good deal |
| on the banks balance sheet. | | | | with cash in hand. Professional investors will help |
| Although many banks received bailout money, this | | | | explore all available options and develop a win-win |
| act has yet to change their course of action. | | | | for all parties involved. |
| Homeowners are still facing foreclosure and filing | | | | As with any real estate transaction, it is important |
| bankruptcy to buy their selves a little more time. | | | | to engage in due diligence to ensure you are |
| The problem with bankruptcy is it is usually a | | | | working with a credible person or entity. |