Archives: FAQs
Yes, in many respects a short sale is less harmful than having a foreclosure on your credit report. However, each lender will have their own underwriting guidelines and view short sales/foreclosure differently. Therefore, you should inquire about your bank’s specific rules regarding short sale. You should also confer with your accountant, as there may be…
Debt consolidation is the process of getting one large loan to pay all of your outstanding debts. Debt consolidation is beneficial because the interest rate for the consolidation loan may be much lower than the interest rate you are currently paying.
While some banks may be skeptical about extending credit so soon after bankruptcy, some retailers may be more willing to do so. Retailers (such as gas stations, for example) will often have less restrictions for new applicants in comparison to the big banks.
Yes, your primary residence (homestead) property is protected in bankruptcy. Therefore, if you file Chapter 7 or Chapter 13 bankruptcy you will not have to lose the home.
Yes, when a Chapter 13 case is filed an automatic stay is instantly put into effect. The automatic stay is a federal law that stops all collection activity, including foreclosure sales already scheduled to occur.
Yes, Florida law does allow HOA’s to file for foreclosure. In many ways, it is a lot easier and quicker for an HOA to foreclose on a home than a mortgage company. Therefore, if you are being threatened with foreclosure from the HOA you should contact an attorney right away.
The bankruptcy filing may last on your credit report for a few years. If you completed a Chapter 13 bankruptcy, the filing may remain on your credit report for seven years. On the other hand, Chapter 7 bankruptcy will stay on your credit report for up to 10 years.
Bankruptcy is designed to give borrowers a fresh start and provides the opportunity to discharge bills, collection accounts, and judgments. When the debts are discharged and removed from your report, the credit score should increase.
Often, after a foreclosure auction, there will not be enough funds from the sale to pay the loan in full. In cases such as these, the bank may sue the borrower for the remaining balance (deficiency). Additionally, the bank will usually add interest, late penalties, and legal fees onto the balance. However, a Chapter 7…
Yes, homestead (primary residence) is protected in both Chapter 13 and Chapter 7 bankruptcy. Therefore, you may not have to lose your home as a condition of the bankruptcy.