STOP FORECLOSURE
Foreclosure rates hit a 50 year high in the first quarter of 2007, according to a recent Washington Post Article. This national trend is hitting home in this area, as the DC suburbs have seen unprecedented foreclosure rates. The Post reported that the foreclosure rate in Fairfax County has quadrupled, while the rate in Loudoun County has gone up ten times. Unfortunately, the epidemic of foreclosures has only grown worse in recent months. In March 2008, The Post published a story describing a "ring of fire" in Prince William County. Prince William County now has the highest foreclosure rate (5.5%) of any major metropolitan area in the entire country.
This surge in foreclosures has been driven by a combination of lending practices which put many homeowners into impossible situations and a real estate market which has seen home prices decline significantly over the last two years.
Facing a foreclosure can be a scary experience. Will you be evicted from your home? Will you lose the equity you have worked so hard to build? You may have been contacted by investors who want to buy your home or lenders who promise to help you refinance. Can you trust them? Or are they trying to rip you off? For a detailed explanation of how these scam artists work, read this column.
What you need right now are straight answers from someone you can trust. As an experienced attorney, I can help you by taking the time to meet with you free of charge to answer whatever questions you may have about the foreclosure process. I will help you examine the options you may have, including refinancing, selling, and filing bankruptcy.
Chapter 13
Depending on your particular situation, filing for Chapter 13 protection can help you in one of several ways:
- Chapter 13 can stop foreclosure and allow you to repay the current arrears on your mortgage over a period of up to 5 years, so that you can remain in your home;
- Chapter 13 can give you time to sell your house for fair market value so that you do not lose all of your equity;
- Chapter 13 can stop your foreclosure and allow you time to refinance your mortgage and pay off your debts.
If you would like to learn more about filing Chapter 13, or if you would simply like to get honest answers to your questions, please contact me right away. Please make sure to let me know that you are facing foreclosure so that we can schedule an appointment right away.
Chapter 7
For many homeowners, there is simply no realistic way to keep a home because the payments have become unmanageable and there is little or no equity. If you bought a home with no money down and have seen your adjustable rate jump significantly, it will probably be difficult or impossible to sell the property. You can't refinance either, because your house won't appraise for enough and you probably have a pre-payment penalty as well.
Chapter 7 Bankruptcy is sometimes your best option to this impossible situation. While you won't be able to keep the house if you can't make the payments, the Automatic Stay can give you some protection during the time you are in Bankruptcy. Additionally, your discharge can eliminate any shortfall which might remain after the property is sold at foreclosure. Best of all, the fresh start you get in Bankruptcy will help you get back on your feet so that you can eventually become a homeowner again.