San Diego Bankruptcy | Avoid the F-word
You never have to go through a Foreclosure in San Diego. There is always a better solution. Filing for Bankruptcy Protection will stop a Foreclosure DEAD in it’s tracks. Even if the “Foreclosure Sale Date” is today at 5pm… if You file for Bankruptcy protection at 4:55pm, the Foreclosure sale does not happen. If it did happen for some reason, the Bankruptcy would “un-do” it immediately.
Chapter 7 Bankruptcy Solution:
If You have debts that make filing a Chapter 7 Bankruptcy beneficial for You and Your family, it will allow You 3 months or so to be in Your home while the paperwork is being processed. Keep in Mind, the Bankruptcy doesn’t transfer Title or change anything regarding the deed to the property. So, You will still need to do a Short Sale or the Home will go to Foreclosure. The absolute LAST thing You want on Your credit profile is a Foreclosure after a Bankruptcy. You will also be able to delete any unsecured debts such as Credit Cards, personal loans, medical bills, collections, etc. within this Chapter of San Diego Bankruptcy.
Chapter 13 Bankruptcy Solution:
If You want to keep Your home, a Chapter 13 could be a great solution for You. In a Chapter 13 Bankruptcy, a payment plan is created based on what You can afford. The repayment plan will allow You to catch up on any late mortgage dues over the course of a 3-5 year period. That could potentially allow You to keep Your home, even if times have been tough recently.
You can also potentially do a “Lien Strip” as well. If Your 1st mortgage is for an amount greater than Your home is worth and You have a 2nd mortgage of any amount, once You complete the Chapter 13 repayment plan, that 2nd lien is stripped and the mortgage attached to it is deleted permanently! It’s possible that Your home went up in value during the repayment period, but that doesn’t matter one bit. You could have $200,000 in equity at the Completion of Your Plan and the subsequent Lien Strip doesn’t change anything. Tell me that’s not Amazing!
No matter what You have going on, if You need help with a Foreclosure sale or have questions about San Diego Bankruptcy, reach out to me. I know a lot about it and I’m here to help.