The decision to file for bankruptcy is a complicated one. Below you will find information on bankruptcy that may help you make a more informed decision. To find out more about bankruptcy and your mortgage or to learn more about your options in a foreclosure process click here for our on-line application.
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There is no simple way to get out of debt. Borrowers should make every effort to improve their credit as it will increase the chances of being approved for a home loan at the best interest rate that they can achieve. First, borrowers should attempt to lower their monthly payments with a debt consolidation loan using the equity in their home if possible, or by securing a loan from a family member or friend. Another option you may have when trying to get out of debt is to cash out from your 401K. All of these options have their consequences though which makes it important to get professional advice.
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The underlying policy of bankruptcy law is that the honest debtor who is in debt beyond his/her ability to repay the debt should be given a fresh start through the discharge of debts in a bankruptcy proceeding. Not all debts are discharg-able through bankruptcy including federal taxes, child support, and student loans. There are many provisions within the bankruptcy code which apply to different situations and differing needs of individual debtors. Infinity Capital Mortgage is not a legal firm and therefore does not give legal advice, but we strongly recommend a consultation with an attorney to understand how the laws may benefit you. We do offer referrals to attorneys that specialize in this area.
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There are different types of bankruptcy and different qualifications for each. In a Chapter 7 liquidation, debts may be fully discharged as determined by the court. In a Chapter 13, a plan is created with the court for repayment of all or part of the debts owed. When filing for a bankruptcy, many forms need to be completed and these forms are part of the bankruptcy petition. A hearing will be held in a court where a decision regarding your petition will be made.
For each type of bankruptcy, mortgage loan options may be available. In some cases, bankruptcy can be avoided altogether with a debt consolidation loan using the equity in your home to solve an immediate financial crisis. Even if the bankruptcy option is chosen, and it is approved by the court, mortgage loan options may still be available. These options vary with the type of bankruptcy plan that is confirmed. They also vary with an individuals credit history, home equity, and employment status. The best course of action may be to consult a mortgage professional prior to making a decision. We are very knowledgeable in this area of lending and offer free consultations to discuss and evaluate your options.
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To avoid a foreclosure mortgage lenders often recommend that you communicate with your lender every step of the way. If your mortgage lender is informed of your financial situation they may offer you a workout plan to help you recover with a lower monthly payment, temporarily suspend your mortgage payments or an array of other options. Be prepared to provide them with financial information, such as your monthly income and expenses. It is also important to stay in your home for the time being because you may not qualify for assistance if you abandon your home. If your mortgage lender initiates a foreclosure process there are specific steps, governed by law, that are taken over a period of four (4) months before your home is actually sold at auction. You maintain all rights to your property throughout that period, including the right to bring your loan current (catch up all back payments). In some cases you may even qualify for a refinance of your mortage, depending on your equity, which would enable you to pay off the bad debt in full and convert additional equity into cash for reserves to help you through your difficult time. Infinity Capital Mortgage is an expert in the area of foreclosure and foreclosure financing. We offer free consultations to examine your options.
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Following a foreclosure you will face many consequences. Foreclosure results in the loss of your home which means that all saved equity and appreciation in the home will be lost. A foreclosure is a serious credit derogatory that will affect your ability to borrow money in the future. The result may be declined applications for credit, the inability to rent an apartment, and possibly many other problems. However, good people have faced this difficult circumstance and there are ways to recover. Your borrowing power will be limited for a time, but not eliminated. The are steps to take and options which may be available to you to help you get back on your feet. The guidelines for qualification for a home mortgage following a foreclosure are always changing. We at ICM keep up to date with these guidelines and are available to assist you with understanding them and to help you determine what your options may be so that you are fully empowered to plan your future.
| | Deciding to file for bankruptcy is an important decision that can have many consequences. Infinity Capital Mortgage Inc can help you obtain a Seattle mortgage following a Seattle bankruptcy filing. Filing for Bankruptcy in Seattle does not mean that you can not secure a Seattle home loan, it simply means that you need a Seattle bankruptcy specialist to help you with your Seattle mortgage. Contact Infinity Capital Mortgage Inc to learn more about bankruptcy and your Seattle mortgage.
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