Home Sale Relief

I got a phone call from a short sale negotiator asking for help. Why are short sales so hard to do, he asked?

The reason is that first, lenders regard loan servicing as a cost center. They don’t staff up to realistic levels needed to do real estate short sales.

Second, lenders don’t want to give investors enough margin. So they will only approve sales that are not far below market. Not enough margin to give real estate short sale investors.

Third, lenders have to get permission from the true owners of the loans, the noteholders. This process takes a lot of time and results in a lot of sales falling through.

If you want to do a short sale, if you want to sell even if you owe more than your property is worth, then please get my special 25 page report.

 I am a big fan of Doug Noland and Prudent Bear. Doug recently wrote in his credit bubble report:

And when it comes to Credit Bubble analysis, the Rest of World (ROW) page in the Fed’s Z.1 “Flow of Funds” report is actually the one I contemplated the most (and with the greatest unease) this week.  ROW increased holdings of U.S. Financial Assets by $1.573 TN last year, or 11.4%. With the Bursting of the Credit Bubble and the resulting impairment of U.S. securities, such growth has become unsustainable.  ROW holdings of U.S. Financial Assets were up an astounding $7.222 TN, or 88%, in just four years.  ROW more than doubled holdings of Agency/GSE MBS ($1.379 TN) and almost doubled Corporate Bonds/ABS ($2.583 TN) position since the beginning of 2004.  Security Repo holdings grew from $460bn to $1.100 TN. U.S. Equities almost doubled (94%) to $2.806 TN.  Total Credit Market Instrument positions were up 79% over four years to $6.855 TN.

Let’s translate this in plain English. It is the key to the mortgage bubble.

Foreign investors buying US mortgages has kept the US propped up and floating high. It has financed over one trillion dollars of US debt just last year alone. That is $3500 approximately, for every man, woman and child in the United States.

Now that the debt bubble is bursting, why should foreign investors continue financing the US debt?

And if they don’t, then what will the US do with approximately $300 per month per person deficit not being funded by anyone?

This is the key to the mortgage bubble and the next Great Depression. You cannot see the type of collapse this involves without a lot of problems. Problems that are just starting.

So please, here is what I urge you to do. Watch this important short sale video and learn how to get out of your mortgage debt, how to reduce your credit card debts, and much more.

The Wall Street Journal writes that mortgage losses will cause as much as two trillion in losses.

The resulting withdrawal of credit could knock one to 1.5 percentage points off economic growth, compounding the impact of collapsing home construction and softer consumer spending due to lower home wealth, the study said. It was presented Friday at a forum in New York on the Federal Reserve organized by the Brandeis International Business School and the University of Chicago Graduate School of Business.

I think it will be far worse than that. Even this article points out:

For each dollar of loss not made up for by new capital, these institutions will have to shrink their balance sheets by $10 to $25 by reducing lending or selling securities. They would do that not just in order to keep their capital ratios steady, but also to raise those ratios to align with risk-management practices.

Gold is at all-time highs, silver near all time highs, oil is $103 per barrel. Inflation is taking off on things like corn, wheat, energy, and metals.

Yet the cost of living has been skyrocketing, while wages are stagnant.

Mortgage short sales - how much impact do they have on the economy?

You tell me.

And please watch my acclaimed video on mortgage short sales to learn how to do a short sale, how to preserve your good credit, how to avoid personal liablity, and how to sell your house in nine days.

I used to have a line of credit on my last house, a home equity line of credit with a major bank. I always wondered what would happen if the equity fell on my house. Would they take away the line of creidt?

I am the developer of the Mortgage Relief Formula and I talk to a lot of homeowners who are faciging foreclosure and have HELOCs in foreclosure. Or they are paying their first mortgage payment using the HELOC.

So now there is a story from the Los Angeles Times that shows lenders are taking away HELOCs:

 Tens of thousands of homeowners with home equity lines of credit are getting a rude surprise: They’ve been told by their lender that they can no longer take money out on their credit lines because sinking home prices have left them with little or no equity.

Among the lenders taking such action is Countrywide Financial Corp., which sent 122,000 letters to customers last week telling them they could no longer borrow against their credit lines. In some cases, according to the company, the borrowers are now “upside down” — the total debt on the home exceeds the market value of the property.

I think that a lot of people who are in foreclosure on home equity lines of credit or who are in foreclosure on their first mortgage will find that the well is running dry in terms of borrowing yet more money.

Money and credit are not the same. Credit can be revoked. If you have credit cards and you are bouncing from one card to the other and drawing a balance transfer check from Peter to pay Paul, you may be in for a rude awakening. The home equity lines are being cut off. So are credit card lines.

It’s time for you to get better information on what to do to slash credit card debt without borrowing still more money. And get my 36 page free mortgage relief report on avoiding foreclosure, dealing with credit card debt without bankruptcy and more.

More people are walking away from their mortgage.

As this wonder blog Bear Ridge Project post says:

 Walk away from it. Put the keys in the mail and walk away. Sit for a couple of months in your house don’t pay the mortgage, pocket the money. Use those dollars to buy a very cheap mobile home or trailer, the smaller the better, you will want to be able to move it. You will own this home outright no payments.

There is no debtors prison yet so get out from under your mortgage now. Your credit is going to be wreaked anyway so don’t let that scare you. Your neighbors are in the same situation so don’t let the so social stigma stop you. You have no equity built up to lose. You have no moral obligation to pay for these well designed traps, remember you were lied too.

All true.

I did three radio interviews this past weekend and on each of them the subject came up. People are leaving their houses empty and just, well, leaving.

There are a lot of ramifications to this. One is that lenders are going to be stuck much worse than anyone predicted.

But the other is that lenders will want more than anything to have you do a short sale. If you have two mortgages they can still come after you later, so a short sale is well worthwhile. Or if you have  a situation where you have a second home or a non-residence or rental properties, you may face personal liability.

There are a lot of instances where you may be liable personally. Walking away is not as good as dealing with the situation. Get my free 25 page report on keeping your home or walking away, dealing with credit cards so you get out from under without bankruptcy, living rent free while in foreclosure and more.

In my role of helping people with short sales and as the developer of the Mortgage Relief Formula home study course, I talk to people who owe more than their house is worth and can’t afford the mortgage payment.

A lot of the houses that people discuss with me are in the $200K range but many are upwards of $! million.

This Reuters article discusses it in plain language:

 The home owners who find it harder to walk away are those who took out large home equity loans before prices started falling and now owe far more than their home is worth.

“It’s difficult for home owners in that situation to sell as they’ll still be left owing money,” said Dave Hanna, managing partner of Prudential Preferred CRE, which owns Prudential Homelife Realty in Hindsale.

Unlike subprime borrowers, however, wealthy home owners are more likely to try to cut a deal with their lender, rather than end up in foreclosure. The alternative solution available to them is to opt for a short sale.

Under a short sale agreement, the borrower sells below the mortgage value and the lender writes off the difference. The lender gets less than originally anticipated, but is not stuck with a foreclosed property. The borrower’s credit rating is damaged, but not as badly as if they had lost the home.

I have clients with $1 million or $1.5 million homes. The other night we had a conference call with one of my colleagues who has done hundreds of nine day house sales which let you sell your house from start to finish in nine days even when there are seemingly “no buyers” around.  We had a few people on the call who have homes of upwards of $1 million.

The problems with those folks is that often they have a second mortgage and they have assets. As I have explained in Avoid foreclosure short sales when you have two mortgages and you have assets  folkw with high end homes and some assets to protect have special issues.

The second mortgage lender may accept partial payment as a short sale but they may refuse to release you from the possibility that they will pursue your assets in the future. The statute of limitations for this sort of thing can be as long as four or five years, depending upon your state.

For information I urge you to visit this link about how they can come after you later  for foreclosure losses, and get my free 25 page important report Keep Your Home Avoid Foreclosure which has details on short sales, avoiding bankruptcy, how to deal with credit card debts and more. I never share your info with anyone and you can phone me at 877-691-DEBT, ext.101 for a private, confidential discussion of your particular situation.

The Wall Street Journal has an article today about lenders pulling back home equity lines, and problems with home equity lines, second loans and foreclosure.

As home values continue to sink, mortgage companies are increasingly walking away from delinquent home-equity loans rather than pushing borrowers into foreclosure. At the same time, some lenders, in an effort to protect against future losses, are looking at scaling back home-equity lines of credit held by certain borrowers who are still making payments.

We’ve been discussing this for several months. The problem is that the second mortgage holder can, in the words of the article, be bought up by “third parties” who can then collect from you.

That means if you have two loans and a foreclosure, then the second mortgage lender can come after you later for the loan — without foreclosing at all.

Get short sale help and also learn  deed in lieu of foreclosure information. And get my 25 page free special report on how to avoid foreclosure, handle credit card debts by settling for less than you owe while raising your credit FICO scores and much more. Visit www.MortgageReliefFormula.

Property taxes are heading for the sky.

The exact environment that created Proposition 13 in California is going on now. But now it’s everywhere in the US not just California.

• Housing prices peaked as they did at this time in California.
• Assessments soared based upon higher property values.
• Local governments geared up their expenses.

And now, even the 1/3 of folks who own free and clear face crippling taxes. They are no longer delighted to pay enormous $500 or $1000 property tax bills every month, equivalent (or more than) what their mortgage payment used to be!

Now I expect a huge property tax revolt everywhere. Arnold is dreaming…the bulk of the middle class are not going to stand for it.
I have some specific tips on escaping a crushing mortgage. And getting out of credit card debts without bankruptcy. Click on the links for more info and my 25 page acclaimed free report, Keep Your Home avoid foreclosure.

Irvine Housing Blog is a great blog I read because although Irvine is a small postage-stamp community in California, it is the home of some of the largest mortgage companies and of the worst bubble property values as well.

There was a post on renting versus owning the other day:

The chart above is the inverse of the previous chart showing the relationship between rent and price. The over-valuation in the market in 2000 becomes even more apparent. The price bubbles of the late 70s and late 80s also stand out. Our most recent bubble is hard to miss and even harder to deny.

The bottom line is that renting is in much of the country a far better deal than owning. That means that rents are destined to rise, or property values to fall, or both, if the usual “normal” relationship between rents and ownership resumes.

And if you want to get out from under a rental property (or more than one) by doing a short sale, then visit my informative Mortgage Relief Formula blog and learn about how to do short sales so the lender says “yes”, how to sell any house in nine days and even how to buy with no money and no credit.

well we’ve come a long way …I doubt too many people won’t acknowledge that we have a burst bubble situation…and when we started, many folks wouldn’t even agree we were in a bubble at all.

One of the requirements for a bubble is widespread public participation. The bubble has a long run-up and towards the end it goes almost straight up. Much of the bubble money is tantalizingly to be made then (2005), but the people who try to ride that wave are too late.

What fuels a bubble? The requirement is simple: cheap credit. Government fueled credit. Government fueled money.

When that is gone, the bubble pops. And it doesn’t come back. Bubbles take many, many years to recover.

But we have to look at two types of home prices. What are called “real” prices are the prices of homes in constant, inflation-adjusted dollars. Nominal prices are the prices in current US dollars.

If we look at house prices on an inflation adjusted (real) basis, they will fall for 15 - 20 years.

If we look at them in nominal prices, they will fall for 2 - 4 years. The bottom will be reached somewhere in 2009 or perhaps 2010.

Bottoms are harder to call than tops. I called the top of the market many times and was wrong many times. I did in fact get out of all real estate in July, 2005, which turns out to have been great timing.

But that was kinda luck. I would have sold in 2004 if I had been able to.

Bottoms are easier to call. How can you call a bottom? Sentiment. When everyone hates real estate and everyone “knows” you can *never* make money in real estate, it will be time to buy.

Now I will say something that may shock you. I believe in real estate. It is a wonderful hedge against the dollar which eventually will fall to zero value.

The US$ is depreciating at 8% or 10% per year these days, contrary to the false US government reports. So if you own real estate, you can at least hedge because you are paying back a big loan in cheaper and cheaper dollars.

I wouldn’t be a “buy and hold” investor right now, but I do see opportunity in real estate even now.

Here’s one: you can option properties and  then use the nine day selling method to sell houses fast. I know of no other method that lets you sell your house nine days from today, without a broker, at top dollar, even when there are allegedly “no buyers”.

Another way you can make money in some areas is buy at today’s distressed prices and rent the house out. You can buy a house with no money down and no qualifying even if you have bad credit.

I have written a complete home study course that tells you how to negotiate lower payments on your existing loan without refinancing, how to do a short sale so you can sell your house and walk away with good credit even if you have messed up your credit and even if you owe more than your house is worth. I teach you how to sell any house in nine days without fixup, how to slash your credit card debts outside of bankruptcy in a way that actually improves your FICO credit score, and how  to buy with no money down and no credit. Click here to order a home trial of my home study course, Mortgage Relief Formula, just paying the shipping and handling.

Or if you prefer enter your name and email and I will give you instant access to my acclaimed free 25 page report Keep Your Home. I will email you information that is too sensitive to post publicly on debt reduction and mortgage relief. I never share your name with anyone, ever, and you can leave my list by clicking a single link whenever you want.

If you owe more than your house is worth, or have a negative amortization loan, or can’t afford your mortgage or all of the above, then you will be thinking of a short sale. A short sale lets you get out from under because you sell the house for whatever it’s worth. The lender gets the proceeds, not you. And even if the proceeds fall short of your mortgage, the lender will allow the sale to go through.

There are issues with regard to keeping good credit, and having the lender agree not to come after you later for any deficiency. But that aside, there is another overriding issue: getting the house sold!

Short sale services will help you get the lender to say yes. But the house has to be sold. So there are two important and different aspects to doing a short sale: getting lender approval, and selling the house.

A good short sale service can help you with both. But beware. Every real estate agent who was rolling in the bucks in 2005 or so and who is now desperately clinging to the profession will profess they are experts at short sales.

If you are a real estate agent trying to do short sales, you have to work on lender approval which is time consuming and requires a whole skillset. And you have to work on selling the house.

If you are a homeowner, get my 25 page free instant download report Keep Your Home short sale services. I will email you with info too sensitive to post publicly not just on short sales but also on credit card debt relief and raising your credit FICO score while playing hardball with the lenders.

I saw a fascinating blog post Look who’s getting Notices of Defaults:

Over the last two weeks we counted 9 REALTORS® in Carlsbad’s 92009 getting their NODs in the mail. This is out of 18 NODs filed in the zipcode, or 50% of the total NODs.

Going along the same theme, this week we head down to the bubble-proof La Jolla, where we find over the last 2 weeks a total NOD filing of only 6 homes, but once again, 50% of which belonging to REALTORS®.

Here are the three defaulting REALTORS®. Looks like two of them withdrew a little too much from their housing ATM, while one couple ran out of cash mid way through the building of their dream La Jolla flip.

This could be anywhere…

I developed the Mortgage Relief Formula home study course and I am shocked at how many people have bought the course who are involved in the real estate market. Some buy because they want to short sell their own properties and they are having difficulties.

Some buy because they want to get out from under crushing credit card debts while improving their FICO score.

Some buy because they want to sell their clients houses in 9 days using the 9 day house sale method.

Some want to take advantage of today’s market by optioning or buying houses with no money down and no credit.

Regardless of your situation, get my instant 25 page  free report Keep Your Home and if you are in real estate, if you are a broker or agent, or mortgage broker, then order the Mortgage Relief Formula home trial for just the cost of shipping and handling.

I have discussed how you can sell your house fast, without a broker. A lot of people want to sell quickly without a broker because they want to avoid real estate commissions, and also because brokers are often not doing a good job selling houses these days.

The nine day selling method is simple to follow:

1. You do some simple advertising.

2. You take calls from interested people.

3. You show the house Saturday and Sunday

4. People bid and you have the house sold and are often in settlement on Monday.

There is no better way to do a FSBO than the nine day house sale method. For sale by owner this way works even when nobody else is selling their house.  And it works even if you are doing a short sale. Sell your house fast - in nine days without a real estate broker — it can work for you.

I have a noted expert who has done 60 of these sales himself. People who purchase the Mortgage Relief Formula will be able to talk to him and ask questions.

It is easy to do your own nine day house sale and this way you have an expert to help guide you. I cover the nine day house sale in my Mortgage Relief Formula. Click here to order your home trial of Mortgage Relief Formula for just the initial cost of shipping and handling.

Several million people face foreclosure today and the number is likely to increase. How can you protect your credit if you end up in foreclosure? How can you ensure that foreclosure credit points are not lost, resulting in a declining FICO score from foreclosure?

Recall that FICO scores are one type of credit score, although they are the most commonly used. Over 700 is decent and closer to 800 is great. Your credit score reflects a lot of things including how much debt you have in proportion to your available credit and your income, and your payment history plus things like any chargeoffs or judgments or bankruptcies.

What really destroys your FICO score are bankruptcy and foreclosure. Delinquent payments and chargeoffs are not as bad as these two. If you can, it is far better to do a short sale or a deed in lieu of foreclosure instead of a foreclosure. That way you can at least have some negotiating room with your lenders. You are helping them and in return they can help you.

I have written about short sale effects on credit score, which you should read if you are thinking about doing a short sale.  Also, please get instant access to my 25 page book Keep Your Home avoid foreclosure and I will email you very helpful tips that you will not find anywhere else. I never share your name with ANYONE and you can unsubscribe anytime.

I am indebted to IAmFacingForeclosure.com for bringing attention to an article about how when you have had a foreclosure, it isn’t over…the lender can still pursue you in court.

‘Q: My home was foreclosed on, resulting in my losing the home and the lender obtaining a judgment against me for $22,000. I then received a court citation that says I have to go to court and give my lender my tax returns, bank statements and personal financial records for the past three years. I know I owe the money, but can the lender keep hauling me into court after it won a judgment? What’s next, debtor’s prison?’

Yes, kind of. This is why I really suggest you don’t just walk away from a foreclosure. Deal with it. Do a short sale. Or a deed in lieu of foreclosure. Work things out. There are many situations where if you just let things go you can get into more trouble even after the foreclosure sale:

If you have a second mortgage and a first mortgage, often the first mortgage will foreclose but the second mortgage won’t. Guess what? The second mortgage holder can sue you in court after the foreclosure sale. They can get a judgment and they can go after your other assets and drag you into bankruptcy and that might require you to pay them back in a chapter 13 over many years.

Or, in states like Illinois, the lender can get a deficiency judgment and go after you. Even in states that use deeds of trust rather than mortgages, if you have refinanced you may have lost some protections that state law would have granted you for a purchase money mortgage.

Please get instant access to my 25 page report Keep Your Home avoid foreclosure, and learn how to do short sales even if you have several lenders, and how to cut credit card debts so you get credit card debt relief. I always maintain your privacy completely and you can unsubscribe anytime.

Bargain houses largely unsold, says the headline.

“Statewide, 12,282 properties went to foreclosure auctions, but only 321 were sold to bidders. Lenders took back the rest, which had unpaid debts of nearly $4.8 billion.”

That is Modesto, Stockton, Merced…which if you’ve been to California, you recognize as not the largest towns in the world. They are cities that grew up from modest agricultural roots. They are the center of the worst real estate speculation although the contagion is all over.

If you are in the situation where you can’t afford to stay and you want to sell your house, you are competing with these forced sales. A forced sale is a foreclosure auction, forced on the seller. Or it isa short sale situation.

And of course, there are all the builders that are trying to stay afloat by selling and getting whatever they can.

In some areas, a house you purchased new two years ago will sell for 50% of what you paid today. If it sells at all. You are competing with the foreclosure sale. You want to avoid foreclosure sale by selling, but the sellers that are out there are so desperate.

That means if you are selling your house, you must be realistic as to the purchase price. You must make sure you get a good opinion as to what the house will really sell for if it is to sell.

I recommend you get instant access to my 25 page report Keep Your Home avoid foreclosure and take my 20 minute quick course on ending foreclosure, doing short sales, negotiating with your mortgage company to get lower payments, slashing your credit card debt without bankruptcy, and even buying new property with no money down and no credit. I always maintain your name in complete privacy and you can unsubscribe any time.

Yesterday I got a phone call from a gentleman who asked me if he thinks the Bush Paulson Freeze will help him get his lender to say “yes” to lowering his payments.

I am the developer of the Mortgage Relief Formula home study course so I get a lot of calls and hundreds of emails. And I am always grateful that people flatter me by asking my opinion.

I explained to him that the freeze has nothing to do with anything. He can call his home loan lender and ask them to lower his payments or freeze his adjustable loan. But in fact, I said, the freeze publicity makes it harder because the lenders are buried with phone calls and the publicity doesn’t mean it is any easier dealing with the home loan company.

My advice is to communicate with your lenders. Ask them to lower your mortgage payment without getting a new loan.  Or try to sell your home quickly in nine days even when there are no buyers and get your mortgage lender to agree to a short sale. Get short sale help and get your mortgage short sale questions answered.

Now, an excellent Reuters article bears out the fact that the US government isn’t going to help you. The FHA Secure program was announced with great fanfare as the way to save people facing adjustable mortgage interest rate hikes they couldn’t afford. Well, seems it has only helped a few hundred people.

WASHINGTON, Dec 17 (Reuters) - A program unveiled by U.S. President George W. Bush in August that is trying to save tens of thousands of homeowners from foreclosure has aided just 266 borrowers so far, according to government data released on Monday.

The initiative, which helps high-risk or low-income borrowers win better loan terms by insuring mortgage payments, targets recent homeowners whose loans have a built-in interest-rate spike that made them miss a payment.

More than 1.8 million borrowers could face mortgage rate spikes by the end of next year, according to the Federal Reserve Board, with the mortgage costs rising $350 a month.

If this government-guaranteed loan program isn’t working…how is the so-called Bush Paulson Freeze going to help?

It won’t. But you can help yourself. First join my quality email list so you get instant access to the acclaimed 25 page book Keep Your Home avoid foreclosure and learn how you can get credit card debt relief without filing bankruptcy, and get your mortgage company to either lower your payments or let you do a deed in lieu of foreclosure or let you sell your house even if you owe more than it’s worth.

Everyone wants to get out of foreclosure, stop their house from going to sale, preferably by selling their house or doing a deed in lieu of foreclosure.

A Countrywide deed in lieu of foreclosure would be the best outcome for your Countrywide house assuming you can get them to say “yes.”

This post on Countrywide deed in lieu requirements helps spell out some of the issues with Countrywide.  You are more likely to get them to accept your deed in lieu in a state that uses primarily mortgages rather than deeds of trust. If your state uses judicial foreclosure, deed in lieu would have a greater chance of actually working out.

Rather than deed in lieu of foreclosure, Countrywide prefers a short sale. That’s when you find a buyer and Countrywide accepts the proceeds and lets the mortgage off the property. They take the proceeds from the buyer after paying for closing costs and real estate agent commissions. This pays their loan back in part, which is what they want. They want the mortgage paid. They don’t want your house back. So a Countrywide short sale will be easier than a deed in lieu of foreclosure.

Make sure that you get instant access to my 25 page insider report Keep Your home stop foreclosure, deed in lieu, some very important tips about bankruptcy that you have probably not heard and much more.

Jim has words of wisdom today in Don’t use home equity to pay off unsecured debt.

 The primary reason I don’t advocate the transfer of the debt from an unsecured credit card to home equity is because of the downside. If something catastrophic occurs and you are no longer able to service the debt, having it be tied to your house is much worse than having it be tied to an unsecured credit card. If you can’t make payments on your credit card, there’s very little they can immediately take away from you as a matter of process. If you can’t make payments on a home equity loan, they can seize your house and sell it. That’s because your home equity loan is backed by your home as collateral, that’s the reason why the interest rates are so much better (they take on less risk for loaning you the money).

I never advocate people borrow on a home equity line except for something that is house related. Building onto your house, putting on a new roof, redoing a bathroom. Otherwise I don’t think a person should borrow on their home equity line.

A lot of homeowners are panicky right now because they have credit card debts that in some cases are just stunning. I am talking about $250,000 in credit card debts, or $70,000. Even a $5,000 debt for someone who is barely scraping by can be a killer. So what to do if you are in this position?

You can consider bankruptcy but in some cases you may be forced into a chapter 13 and you will have to repay the money back at least partly. Every month you will be making court ordered payments and it you are living under a judicial microscope for 3, 4 or 5 years.

Another approach is the no-bankruptcy workout. You contest what you can. And the rest you work out with your credit card companies by making offers in compromise. You figure out what you can pay per month for all your unsecured bills, and you make offers to all your old creditors based upon this total amount.

This has worked for thousands of people and continues to work. I write about it in the Mortgage Relief Formula. I offer you a 25 page free instant report on keeping your home stop foreclosure, how to avoid bankruptcy or when to think about filing it, slashing debts and working out lower mortgage payments without refinancing.

Also learn how to buy houses no money down no risk no credit — your next house can be bought with no money and no credit, even if you have had a foreclosure or have a low FICO score.

Most people know there are two types of bankruptcy processes for most folks, chapter 7 and chapter 13.

A chapter 7 gives you a discharge from your unsecured debts. So you don’t owe them anymore.

A chapter 13 requires you to pay a percentage or all of the debts back over a three to five year period.

Chapter 7s used to be easy but not so much anymore. You have to pass a “means test” to file chapter 7. If your credit card debts and other debts exceed about $336,000, you can do a chapter 7. And if your income is too low, you can file a chapter 7.

Regardless of which type of bankruptcy you are pursuing, your credit will be affected the moment you file. Even if your bankruptcy petition is dismissed later, the bankruptcy filing will drop your FICO score often around 100 points or more.

A lot of people try to pursue a bankruptcy petition in order to stop foreclosure and while it temporarily halts foreclosure, it doesn’t stop it for very long. You will take comfort in consulting with a bankruptcy lawyer and always do so and don’t take advice from articles like this one.

If you find this information helpful please visit www.HomeSaleRelief.com and get instant access to my 25 page special report Keep Your Home and join my list where you will learn inside tips on reducing credit card debts outside of bankruptcy, stopping foreclosure, getting lower payments without getting a new loan, and much more, even how to quickly sell your house in nine days even when there are no buyers.