Foreclosure Strategies
May 10 2018
The best way to deal with a foreclosure is to take aggressive legal action when the foreclosure laws... [Read More...]
July 30, 2018 By
An emergency Order to Show Cause can be brought to the judge the foreclosure case is pending before. The Order to Show Cause can be served on the court requesting the court stop the sale from moving forward. If the Order to Show Cause is signed by the judge it is thereafter served upon the attorneys for the bank and referee. This will stop the sale of the house from going forward. If the judge in the New York State court does not sign the Order to Show Cause and stop the sale from moving forward there are other alternatives to stopping the sale of the house.
Bankruptcies are brought in federal courts. Upon filing of a Chapter 13 bankruptcy the federal bankruptcy court issues a stay stopping all legal proceedings in the state court. The state court foreclosure action is frozen. Your house will not be sold. A Chapter 13 bankruptcy allows you to reorganize your finances, establish a plan to catch up on your mortgage and it keeps you and your family in your home.
A Chapter 7 bankruptcy is also brought in a federal bankruptcy court. The filing of this bankruptcy stops the foreclosure in its tracks. The attorney filing the bankruptcy serves a copy of the bankruptcy notice on both the attorney for the financial institution and the referee who seeks to sell your home. This stops the sale of the house from moving forward.
The Chapter 7 bankruptcy is also known as a straight bankruptcy. It does not involve a plan to pay off the mortgage. It seeks to eliminate your personal liability on the mortgage. Therefore, if you owe $500,000.00 on the mortgage and your home is sold for $250,000.00 you will not have to pay the deficiency of the $250,000.00 the bank did not collect at the foreclosure sale. The filing of a Chapter 7 bankruptcy also ties up your case in federal court for months.
Once your case is tied up either by the Order to Show Cause , a Chapter 7 bankruptcy or Chapter 13 bankruptcy, a mortgage modification application can be submitted. Even if you were turned down in the past, you can still submit another mortgage modification application. God helps those who help themselves. All the bank can do is say no again if you submit another mortgage modification. However, during the mortgage modification underwriting process the bank generally will not move forward with trying to sell your home.