Fraud on Finance

Forelosure Bankruptcy Tips

If you’re facing foreclosure and wondering, “Will I be able to keep my home if I file bankruptcy?”, there may be options for you. Filing for a Chapter 7 Bankruptcy can possibly delay your foreclosure for a few months. A Chapter 13 Bankruptcy filing may even help you save your home altogether.

Reaffirmation Agreement

In bankruptcy, a contract signed between the lender and the debtor.

  • Reaffirms the personal liability for the debt.
  • Must be entered into before the Discharge in Bankruptcy is filed.
  • Must be approved by the court.

Pros of Reaffirmation Agreement

  • Usually to lenders advantage because it keeps you binded to the debt.
  • You have 60 days after signing the document to revoke.

Loan Modification

  • Permanent change in your mortgage loan terms.
  • Allows the loan to be reinstated under the new terms.
  • New terms include a new mortgage you can now afford.

FDIC Sponsored Loan Modification Program

The Homeowner Affordability and Stability Plan

  • Helps borrowers who cannot make their payments due to insufficient income.
  • Provides options for borrowers who are up-to-date on their payments, but can’t refinance because of a major decrease in the value of their home.
  • No fees for borrowers through this program.

Can I Keep My Home in Bankruptcy?

When you’re asking yourself, “Can I keep my home in bankruptcy?”, keep a few things in mind.

Order of Relief

When you file for bankruptcy, an Order for Relief is automatically issued by the bankruptcy court.

  • Includes an “automatic stay” ordering all creditors to immediately stop all collection actions and activities.
  • Any scheduled foreclosure sales are legally postponed during the pending phase of the bankruptcy.

Chapter 13 Bankruptcy Mortgage

1st Mortgages & Chapter 13 Bankruptcy

  • Arrearage is paid off over the length of the new repayment plan.
  • As long as the repayment plan is followed, foreclosure will cease.

2nd and 3rd Mortgages & Chapter 13 Bankruptcy

  • Court can “strip off” 2nd and 3rd mortgages.
  • 2nd and 3rd mortgages can be re-categorized as unsecured debt, making them last priority.

Chapter 7 Bankruptcy Mortgage

  • Time to Save – During the pending phase, you can live in your home free for up to several months. This gives you time to save money to relocate, or possibly save your home.
  • Get Debt Canceled – Chapter 7 Bankruptcy cancels all debt secured by you home. This includes your 1st mortgage, 2nd mortgages and home equity loans.

* These are just tips to help you understand whether bankruptcy can help you. For legal advise, please contact a bankruptcy attorney.

Ways to Rebuild Your Credit After a Bankruptcy

If you’ve filed for bankruptcy at some point, you know that it not only affects your finances, but equally does great damages to your credit score. And while it may seem like a daunting task to rebuild your life after bankruptcy – amid working on your credit rating, your finances and emotional wellbeing – there truly is life after all these. Rebuilding credit after bankruptcy is quite possible even eventually attaining a credit score of 700 or 750. How do you make this possible? This article gives you 5 ways to rebuild your credit after a bankruptcy that will undoubtedly help you.

Reviewing your credit report

Your journey to rebuilding credit begins when you know exactly where you stand with your credit and the far you have to go to get to the score you ultimately want. Mark dates to get copies of your credit report from major bureaus. When you know that a credit score above 750 is often considered excellent while one below 400 is considered very poor, you’ll know how drastically you need to restructure your finances to get your desired score.

Creating Realistic Budgets

After a bankruptcy, you’ll need to become extra cautious about your finances. And even if you’ve never created a budget in the past, this is the time you’ll need to do this and be serious about it. Your budget acts as your spending plan that will help you manage your cash flow, in turn, preventing you from getting into unnecessary debts. Budgeting helps to prioritize and leaves room for any debt repayment, savings and bill payment.

Taking care of all your existing bills on time

Make it a priority to take care of all your current bills on time. You can set up automatic bill payments whenever necessary and don’t forget to take care of your rent on time as these payments are often tracked and may play a huge role in your credit score. On-time bill payment is one of the most powerful things that will eventually help restore your credit and finances.

Get a secured credit card

Obtaining a secured credit card is another important strategy for rebuilding your credit score. You can deposit a certain amount on your secured card say $500 and this becomes your credit limit. You’ll gradually be able to rebuild your credit by charging minimal amounts every month and settling your debts on time.

Open a new savings and checking account

Think of opening both a savings and checking account if you don’t have any. Choose a local bank or credit union based on various criteria including talking to friends and family, comparing interest rates and considering the services rendered by each bank.

Aurora Loan Services Mortgage Modification

Aurora loan services is one of the lenders who is approved to offer the Governments “Making Home Affordable” plan. This plan allows homeowners the chance to save their home from foreclosure, or save hundreds of dollars every month through home loan modification. Qualifying is easy, but here are some things you should know when getting a Aurora loan services mortgage modification:

– In order to help ensure Aurora loan service approves your application for a home loan modification, you should make sure all your paper work is in order, completely filled out, and accurate. This way your home loan modification application does not just look like the rest of the incomplete ones which need to be re done.

– Homeowners facing a “financial hardship” such as hospital bills, loss of job, reduced wages, or a whole list of other things which are unavoidable have a better chance of getting approved for a home loan modification from Aurora loan services. This is because a lot of the $75 billion in Government mortgage bailout money will be given to mortgage lenders who approve homeowners who are facing financial problems.

– The home which a homeowner wishes to get a modification for must be lived in as the main residence of the mortgage holder.

– According to the Governments guidelines, after a home loan modification, the monthly mortgage payment must not exceed 31% of a homeowners gross monthly income.

Top 5 Criteria to Choose a Bankruptcy Lawyer

When individuals cannot afford to pay off large debts, it becomes necessary to use Bankruptcy Lawyer services. Financially misfortunate people should know that bankruptcy and bad debts is not the end of the world. The right bankruptcy attorneys are specially trained to assist those who have declared themselves unable to pay any of their ballooned debts.

1. Even though filing of bankruptcy will not always suit a debtor, it may still be valuable to get tips from a bankruptcy attorney. Creditors are in the business to recover owed money with the use of various methods. Sometimes they may use intimidating collection methods in the form of letters or phone calls that will never stop until every last cent has been paid. The process of declaring bankruptcy can protect people from threatening creditors.

2. The bankruptcy process is not simple. Apart from the long, boring paperwork, the bankruptcy process can become worse in court. A number of proceedings are necessary that will increase the usefulness of a bankruptcy lawyer.

3. Bankruptcy law can seem very confusing for people who do not understand the law or have never stepped foot in court. Those people should avoid representing themselves in court and hire attorneys with the right expertise and experience in the area of bankruptcy. Preferably, these attorneys should have a good track record in their field.

4. The bankruptcy lawyer should work against the occurrence of home repossession, foreclosure, and wage garnishment. An attorney can work to clear away debts by developing a payment plan or liquidating assets. All of these choices will have a large effect on financial status. Clients are allowed to discuss the nature of the cases all they want with their lawyers.

5. Bankruptcy is a complex issue but not every lawyer can manage the evolving procedures in this field. A company that deals with bankruptcy cases will exceed expectations in assisting clients who need to achieve the best results. Clients will receive the best service if a well-qualified attorney is there to help them every step of the way.

Some law firms that specialize in bankruptcy are different from the others. In addition to being confident and committed to the highest quality service, the most effective Colorado bankruptcy attorneys firms will prove that they care and will protect their clients under the law. During the first consultation, these lawyers will describe every aspect of the bankruptcy process and allow plenty of input from clients so they get what they want in the end.

How Bankruptcy Works

Bankruptcy is an option that can help relieve you of debt. You may be in a position where you can no longer pay back debt due to a change in your life such as divorce, job loss, medical costs and other reasons. Do not wait until the last minute to file; many times, people try to hang on and their financial situation becomes more difficult. Once you have decided that you can no longer meet your obligations, it is time to visit a bankruptcy attorney and discuss your options.

You are not required to hire a bankruptcy attorney, but it can be a time-consuming, confusing process, and it is best to have someone who is experienced and knowledgeable on your side. When you visit your lawyer, there are several things that you will discuss including your current situation, your creditors, whether filing Chapter 7, 11 or 13 best suits your situation, and more. Your attorney will spend time answering your questions, and there will be paperwork that needs to be filled out. Your first visit is usually for exploratory purposes, and after your bankruptcy attorney has all the facts time may be needed to evaluate for the best course of action.

Once you have gathered all your information and you have decided what filing type is best suited to your situation, your attorney will begin to work on your Petition and Schedules which is paperwork summarizing your financial situation and your creditor information. This paperwork is very important, and mistakes can cause your further difficulties. Your bankruptcy attorney will also make sure that the Petition and Schedules is accompanied by supporting documentation.

After all your paperwork is completed, your bankruptcy attorney will file for a bankruptcy case with the court. You will be assigned a hearing where a bankruptcy official will review all of the material, and a decision will be made concerning your discharge unless they find that more information is needed or you do not qualify. Of course, having an experienced bankruptcy attorney increases the odds of a favorable outcome as they have already evaluated your case and they are familiar with the documentation that will be required.

Filing for bankruptcy can out you in a better position to manage your finances and be able to regain some stability to a life that may have been spinning out of control. If you think that filing for bankruptcy may help your situation, make an appointment with a knowledgeable bankruptcy attorney and go over options.

Tips for Investment Success – Promissory Note Loan Servicing

A Practical Guide to Protecting Your Promissory Note Investment

Writing a check to invest in a promissory note begins the investing process that will provide you with future income and possibly capital gains. After your check is cashed, numerous administrative functions are necessary, on an on-going basis, to protect your investment and maximize its profitability. The administrative functions are called “Loan Servicing”.

Unfortunately, the Loan Servicing function is little understood by many and neglected by most. This neglect causes a discount and devaluation of your investment. Let’s learn how to increase your promissory note investing success and protect the investment through intelligent Loan Servicing.

Definition of ‘Loan Servicing’
Promissory note loan servicing provides administrative services for the loan from the time the proceeds are dispersed until the loan is paid off. Loan Servicing includes: sending monthly payment statements, collecting monthly payments, maintaining records of payments and balances, collecting and paying taxes and insurance, managing escrow and impound funds accounts, remitting funds to the note holder, and following up on payment delinquencies.

Promissory Note Loan Servicing Reports
Monthly and Annual Reports: gross income collected, real income collected, taxable income collected, and repayment of principal collected must be all be tracked separately and reported. Regular payments, partial payments, late payments, late fees, and service fees must be recorded and reported.

Year-end IRS Report Forms: 1096, 1098, 1099-A, and 1099-C must be prepared and remitted.

Loan Servicing Pitfalls and Traps
Realizing the specialization and complexity of the Loan Service function is the first step in dealing with it intelligently. Realizing that neglecting it will discount and devalue your investment is your wake-up call to handle it professionally and carefully. Doing Loan Servicing on scratch paper, or on the back of an envelope, will not satisfy the local State laws, Federal laws, or IRS rules and regulations-a good software Loan Servicing program is needed.

Many uninformed note investors do not realize their exposure to being sued by disgruntled borrowers, State Attorneys General, or by Federal law enforcement agencies. The legal expenses to defend one law suit, or one investigation, can wipe out a year’s investment income or more—even if you win; if you lose, it can be many times more costly.

Tips for Investing Success
The first rule for investing success: understand the details of the investment; understand its risks and rewards; understand your responsibilities and your rights; understand what you will do when an unexpected negative event happens.

The second rule for investing success: understand the details of administering the investment. Who does the Loan Servicing? Is that person or entity experienced and capable? How often will you receive reports on your investment? If you intend to do the Loan Servicing yourself you must realistically and objectively evaluate your own experience, capabilities and computer software facility.
Don’t underestimate the time and effort required; don’t overestimate your own capabilities.

In Summary
• Fools rush in where angels fear to tread.
• There is nothing more difficult to plan, more doubtful of success, nor more dangerous to manage than a new system.
• Prevent a small problem from getting worse by stopping it soon after it starts.
• Life has it woes so learn to be on your toes, be alert.

What Is Chapter 20 Bankruptcy

When we meet to discuss your financial situation, I’ll take the time to get to know the details of your circumstances so that we can create a custom solution to your debt troubles. For some people, budget and spending revisions and negotiating with creditors can help them to avoid bankruptcy altogether. Others may need the immediate discharge of a Chapter 7, and still others will use a Chapter 13 to get their debt under control while protecting their property and assets. In order to maximize the benefits of bankruptcy, a Chapter 20 may also be used. This is when someone files a Chapter 7 followed by a Chapter 13. There are some guidelines surrounding to this option, and we’ll work together to make the right choice for you.

Exploring Your Options

I’ll walk you through the benefits and eligibility requirements of each chapter and will guide you as we make these important decisions. A Chapter 7 is usually resolved in just a few months and discharges most types of unsecured debts, regardless of how much you owe. If you have secured debts, such as a car or house payment, you’ll need to stay current on these payments or face repossession or foreclosure. It may be possible to negotiate with secured creditors during a Chapter 7, but they are under no obligation to do so.

For my clients who have room in their budget to make some, but not complete, payments, a Chapter 13 may be the best fit. If you’ve fallen behind on your mortgage, for example, filing a Chapter 13 gives you time to get caught up, and you may be able to roll your delinquent payments into your repayment plan. This means you get to keep your property, and many people end up paying nothing toward their unsecured debts. Some people hesitate to file a Chapter 13 because they will be in the bankruptcy process for 3-5 years. This type of bankruptcy also has limits on how much debt may be included.

Filing Chapter 20

One strategic way to take advantage of the benefits of Chapters 7 and 13 is to file a Chapter 20. First, a Chapter 7 is filed, which will discharge your unsecured debts. You can then file a Chapter 13, which will put you on a reduced repayment plan for any remaining debts. If you have debts that cannot be included in any bankruptcy, such as alimony, child support, back taxes, or student loans, these payments may help you to qualify for a Chapter 13 and reduce the total you’ll pay toward other debts during your repayment period.

An Experienced Professional

Before jumping into any chapter of bankruptcy, it’s wise to consult with a professional bankruptcy attorney who can ensure you maximize the benefits available to you. Bankruptcy law can be complex, but you can be confident that your case will be handled competently and completely when we work together.

After a Bankruptcy Has Discharged

For most people, going through bankruptcy brings with it a mix of emotions. On the one hand, there can be a sense of disappointment at having to take such a drastic measure in order to get one’s financial life back on track. There can also be some guilt that comes from not being able to repay debtors, and even a sense of failure.

At the same time, bankruptcy can bring with it huge feeling of relief for finally being out from under all of that debt. In particular, this feeling of relief can be the strongest when you are discharged from owing money to most or all of your creditors.

Defining a Bankruptcy Discharge

A bankruptcy discharge is simply a provision within many bankruptcy arrangements whereby you, the borrower or debtor, are released from any further personal liability for certain types of debts. After your discharge, you are no longer required to repay the qualifying debts.

Furthermore, this is a permanent order, meaning that creditors and collection agencies to which the discharge applies are no longer able to seek repayment from you – including calling you, writing you or seeking legal action in order to collect outstanding debts.

Note that some types of debts – such as those with a valid lien or charge upon a specific property – will remain owed by you even after the discharge. There may be other types of debts, such as some types of student loans, for which you will remain responsible even after the bankruptcy.

The Need for Money after a Discharge

As you know, once you have been through a bankruptcy, for a period of a number of years you will not be able to quality for many types of credit or loans. However, that does not mean you will not have the need for a loan: your need for cash will still be there even after bankruptcy, of course. Fortunately, some lenders special in making personal loans to people in your situation.

If you are wondering how to get a loan after a bankruptcy has discharged, personal loan options abound. Here are 3 personal loan tips for getting funded:

1. Decide whether you want a secured or an unsecured loan:

The first decision you will need to make is whether you should take out a secured or an unsecured personal loan. The main difference is that, with an unsecured loan, you will not need to put up any collateral such as a piece of physical property or a financial instrument such as a funded savings account. However, unsecured loans understandably come with higher average interest rates than do secured ones.

2. Figure out how much you need to borrow and for how long:

Now, decide exactly how much you will need to borrow. It is worth spending some extra time to be precise on this point. After all, you will want to make sure you borrow enough to meet your current cash needs, but you will want to avoid over-borrowing as well.

3. Apply to as many lenders as you can:

Now, it is time to apply to as many bankruptcy-okay personal lenders as you can find. Start by doing an extensive online search for “bankruptcy okay personal loan” and related terms. These lenders are out there and willing to take you on as a customer. Make sure you apply to multiple (e.g., 3-5) lenders, since by doing so you greatly improve your chances of getting a low loan rate.

The Role of Mortgage Loan Services and How They Can Help You

These days the cost of living is so unavoidably high that many people are actually finding it hard to survive an entire month without falling into debt. But this is just half of the problem when it comes to the experiences of people with families to feed and, of course, to shelter.

A mortgage loan makes life so much easier than it would be without one, because if there was no way of getting a loan, how else would you be able to afford that dream house you have been fantasizing about for your whole life? A vast number of mortgages are turned down for various reasons, thereby prompting borrowers to resort to mortgage loan services which will help them in their pursuit of a loan.

Before actually processing your mortgage application form, make sure you work with a company specializing in mortgage loan services. A mortgage loan service company is responsible for facilitating an easy and hassle free loan application. What makes these companies so special is the fact that they know what it takes to get an application approved.

When working with such companies you should ensure that you give them all the information they require in order to process your application. Otherwise the end result will simply become a repeat of your previous attempts at getting approval.

Generally, mortgage loan services know what must be included in an application for it to be approved. To start with, your credit report has an indelible impact on the outcome of any application, with a positive score well above the 600 mark being a score which will get any application approved swiftly.

However, if your credit score is well below the expected threshold you will have to make sure you work towards repairing it. There are tons of ways to fix an awful credit score, and one of those surefire ways includes actually paying off any outstanding debts you may have in your name. Plus, if an application is turned down, this will have a negative impact on your credit rating, so be certain beforehand.

Providing proof of permanent employment, in addition to attaching pay stubs, is another way of getting an application approved quickly. But this is particularly helpful to people who, though having a low credit score, still earn a good amount of money. The company offering mortgage loan services will actually recommend this.

Another important thing to consider if you have poor credit is furnishing the assets of a third party as security for the loan. Having a third party standing as security only works if you have a bad credit score and he or she, on the other hand, has an impressive score. But be sure that you actually pay off the loan on time, or his assets could be sold.

How Hiring A Chapter 7 Bankruptcy Lawyer Can Help

If you’re thinking about filing, you should hire a Chapter 7 bankruptcy lawyer to help you out. Things get very tricky when you’re doing it all by yourself, and you want it to be as quick and painless as possible. A qualified legal professional can help you get through it.

The most common type of filing is Chapter 7 bankruptcy. Lawyer services are often required even though it is the simplest types. It is available to individual people, married couples and businesses. For a business, it is basically the end of the road. One feature of this type is that it takes all of your non-exempt assets, sells them off and divides the money between your creditors. For a business, this means selling everything it has and closing up show. Since most things that you own are exempt, individuals can usually get through it unscathed.

Why Hire A Chapter 7 Bankruptcy Lawyer?

One of the common misconceptions when it comes to the Chapter 7 bankruptcy lawyer is that it’s their job to basically fill out the forms for you. However, this is not like applying for a credit card. These forms are extremely complicated and it nearly takes a law degree to make heads or tails of them.

Even more importantly, you should hire this type of professional in order to avoid any mistakes that could really cost you. For example, how do you know which of the things that you own are exempt or not? You could end up losing something you value, or getting into trouble for not listing something that you should have claimed as an asset.

The advice of your Chapter 7 bankruptcy lawyer is also invaluable. They know every detail about this type of filing, so they can let you know exactly what to expect. For example, most people don’t realize that alimony payments and some kinds of taxes do not apply to this filing. In other words, you’ll be starting debt free unless you carry these debts, in which case you will still have to pay them.

Use It As A Last Resort

Always keep in mind that filing will wipe the slate clean, but it’s going to cause serious problems for you down the road. You’re probably aware of this and already in a desperate situation if you’re considering it, but you should keep in mind that it’s going to seriously affect your credit for a long time. It will make it difficult to get loans of any sort, and this includes car loans and home loans.

However, if you hire a good Chapter 7 bankruptcy lawyer to handle the proceedings for you, you’ll have immediate relief for your debt problems. They’ll give you a record number and the next time creditors call, you can simply give them this number and they’ll talk to your attorney from then on. Most people who file to this type do not lose their house or car, and they keep all of their other possessions. No notification is made to your employer or anyone else that you know, so you can rest easy knowing that your financial situation is private.

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