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Yes, bankruptcy protect you from foreclosure by your mortgage company. You can read more at www.hirby.com/mortgage-lender-filing-for-bankruptcy

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โˆ™ 2010-04-05 20:32:24
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Q: Will bankruptcy protect me from foreclosure by my mortgage company?
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Related questions

How do you protect your home from foreclosure?

The easiest way would be to make all the payments on time to the mortgage company or bank.


Who is the saint that protect homes from foreclosure?

Saint Bankruptcy


Can a home owners association foreclose on a home in Florida without informing the mortgage company?

Foreclosure is a legal process whereby all interested parties are included, or the foreclosure procedure cannot be completed. If you believe that your association is foreclosing on your title, and you believe that your mortgage lender has not been informed, you can inform your lender, since the mortgage is in your name, not the association's name, and your responsibility is to protect your name.


Can you protect your home in chapter 7 bankruptcy in Arkansas?

When you fill out the forms for the bankruptcy, make sure that you "reaffirm" the mortgage. That means that you will continue to pay the mortgage as agreed. The bankruptcy trustee that will be assigned to your case will guide you through the rest. HIRE AN ATTORNEY!! IF you own a home,,,NEVER go it alone for a bankruptcy.


Can you keep your home if you file for bankruptcy?

A primary residence is a "secured debt" and is very rarely forfieted in banruptcy proceedings unless the borrower is unable to reaffirm the loan with the mortgage lender. In most cases the homestead exemption will protect a residence, this does not however apply to a foreclosure. yes you can stay with your home as long as you did not listed the mortgage as one of you debt to be discharge.


Does private mortgage insurance change the foreclosure or deed in lieu proceedings?

Private mortgage insurance or PMI is insurance to protect the lender if the home is foreclosed upon and there is a deficiency. That deficiency is paid by the insurance company. It would not appear to have an effect on the foreclosure proceeding, just on your liability for a deficiency. However it is to your advantage also to have MI if your house goes into foreclosure. Not only do they pay the lender and cure a portion of the definciency, but often they get involved up front and try to work with the borrower and lender both to avert the foreclosure. That way they are paying a lower claim and the borrower gets to keep their house. I've even heard of the insurance company helping the borrower get short term loans, renegotiate the mortgage or helping them find a buyer.


Does private mortgage insurance protect you from being sued over foreclosure of your house?

No.No.No.No.


How does one protect their mortgage if no representative from a mortgage company will contact them?

Send your mortgage company a "qualified written request" in the mail. They are required to respond to such a letter in 60 days. Please visit the links below.


How do you protect yourself from incurring inherited mortgage debt from your father?

Generally, if your father owns real property and grants a mortgage while he is living there is no way you can "protect yourself from the mortgage debt" if he should die and you are his beneficiary. You could ask your father to purchase private mortgage insurance that would pay off the mortgage in the case of his death. However, if he does not then you have to decide if you want the property or not in the case of his death. If you don't pay the mortgage the lender will take possession by foreclosure. If you want to keep the property you'll need to pay the mortgage.


What are the pros and cons of a short sale verses a foreclosure?

Both a foreclosure and a short sale will ruin your credit for many years. With a foreclosure, it's best to file a Chapter 7 bankruptcy to protect you from the lender. The lender has up to 10 years to come after you for the loan deficiency. For example, if you owed $200,00 on a mortgage, and it cost the lender $75,000 to re-sell your property, you could be liable for that $75,000 deficiency. On a short sale, the lender can still come after you, but the amount that is short can be issued to you on a 1099 as a "loan forgiveness" causing you to pay income tax on that money.


What happen your mortgage if you lost your incame?

If you have mortgage insurance that covers the reason of your income loss (disability, involuntary unemployment) then the insurance company will pay the premiums according to your policy's benefits schedule. If you don't have mortgage insurance, you can use savings, retirement funds, borrow money, or you can try to negociate your mortgage terms with your lender. Unfortunately, many mortgage clients believe they don't need mortgage insurance and they find themselves forced to file for bankruptcy and lose their home if something happens. The PMI (private mortgage insurance) will protect your mortgage payments and help you keep your home!


Does a quitclaim affect the mortgage?

Yes. Most mortgages have a due on transfer clause. It is meant to protect the lender. It provides that if there is any transfer of ownership, such as by a quitclaim deed, the lender can demand that the full balance of the mortgage be paid immediately. If the transfer goes unnoticed for a time, the property transfers subject to the mortgage and full payment will be demanded when the lender is notified. If the mortgage isn't paid the lender will take possession of the property by foreclosure.Yes. Most mortgages have a due on transfer clause. It is meant to protect the lender. It provides that if there is any transfer of ownership, such as by a quitclaim deed, the lender can demand that the full balance of the mortgage be paid immediately. If the transfer goes unnoticed for a time, the property transfers subject to the mortgage and full payment will be demanded when the lender is notified. If the mortgage isn't paid the lender will take possession of the property by foreclosure.Yes. Most mortgages have a due on transfer clause. It is meant to protect the lender. It provides that if there is any transfer of ownership, such as by a quitclaim deed, the lender can demand that the full balance of the mortgage be paid immediately. If the transfer goes unnoticed for a time, the property transfers subject to the mortgage and full payment will be demanded when the lender is notified. If the mortgage isn't paid the lender will take possession of the property by foreclosure.Yes. Most mortgages have a due on transfer clause. It is meant to protect the lender. It provides that if there is any transfer of ownership, such as by a quitclaim deed, the lender can demand that the full balance of the mortgage be paid immediately. If the transfer goes unnoticed for a time, the property transfers subject to the mortgage and full payment will be demanded when the lender is notified. If the mortgage isn't paid the lender will take possession of the property by foreclosure.


What can I do to stop home foreclosure?

I think the best way to avoid foreclosure is to prevent the filing of a Notice of Default. Lenders do not want to foreclose but will file a Notice of Default to protect their interests, if necessary. If you know you are unlikely to meet your mortgage obligation, the first thing you should do is call your lender.


Can you get a reverse Mortgage after Bankruptcy Discharge?

But it would be unusual to own a property (certainly one with any value/equity) that could have been used to pay debtors in the BK. Yes you can get a reverse mortgage after a bankruptcy if you have equity in the property. Various state homestead exemptions can protect equity in the primary residence. See related link for a state listing.


Can you be forced to sell your home if you declare bankruptcy?

Maybe but not normally. Generally speaking, you can keep your home during a Chapter 7 case so long as you "reaffirm" the debt to the mortgage company during the case. This means you contact the mortgage company and tell them you want a "reaffirmation agreement," then they will send you one and you sign it, they sign it, and you file it with the court. This reaffirmation agreement puts you back on the hook legally for the mortgage debt, but lets you keep your home. In other words, it allows the mortgage to pass through the bankruptcy unscathed. There are a couple of roadblocks to this though: (1) If you are not current on your mortgage payments, the mortgage company will usually not allow you to reaffirm the debt. So, generally people in Chapter 7 must be current on mortgage payments to be able to keep a home in a Chapter 7. (2) If you have too much equity in the home, the Bankruptcy Court may seek to sell the home. In other words, each State says how much equity in residential real estate a person who files bankruptcy in that State may protect. If you go over this amount, the Bankruptcy Court can sell the home to get that unprotected equity to give to your creditors. For example, in Indiana each person may protect $15,000.00 equity in residential real estate. So, if John files bankruptcy in Indiana and he owes $70,000 on his house and his house is worth $80,000, he is fine since he only has $10,000 in equity ($80,000 value minus $70,000 mortgage) and he is safe for up to $15,000. But, say John owes $70,000 on his house and it is worth $150,000. Now, John has $80,000 in equity ($150,000 value minus $70,000 mortgage) and he can only protect $15,000, so the Bankruptcy Court would sell the house, pay off the mortgage, give John his $15,000, and keep the remaining $65,000 to give to creditors. So, to keep a house in Chapter 7 be sure you are current on the mortgage and check and be sure you are within the amount of equity you are allowed to have in your State. Please note that nothing in this posting or in any other posting constitutes legal advice; this is simply my understanding of the facts and law, which I do not warrant, and I am not suggesting any course of action or inaction to any person. Speak to a lawyer for specific advice. If you have any questions, please refer to a lawyer in your jurisdiction. Thanks!


If you already have filed for chapter 7 found out that your mortgage cannot be discharged. At the hearing can you ask to do a deed in lieu of foreclosure or is it to late?

You thought your mortgage would be discharged? And I guess you would just have then owned the house free and clear. You really are kind of far along to be asking these questions don't you think? even if it can be done and they agree, sure you want a to do a "deed in lieu of foreclosure" as part of your bankruptcy? Wow....what a surorise you aren't getting the result you expected...and really no surprise your in bankruptcy --meaning you asked the court to protect you from all those who trusted you and the promises you've decided to break to them and loss and trouble to cause. Really...why not get expert personalized help...your own counsel to explain it?


Does mortgage insurance protect the bank's interest on a foreclosed loan?

Mortgage insurance protects a lender from loss, subject to contractual limitations between the bank and the mortgage insurer, if a borrower defaults. A bank that is forced to foreclose on a property due to a borrower default is still at risk of losing money since the mortgage insurer covers only a specified percentage of the original loan amount, typically 20% to 50%. Mortgage insurance will mitigate losses incurred by a bank due to a foreclosure but does not fully protect the bank from losses.


Can you file bankruptcy while owning a house and keep the house?

Yes. Whether or not the property can be retained depends upon the circumstances. The first being if the mortgage agreement is still valid and the property has not been subjected to foreclosure action. The second is if the property is protected by the propery exemption amount allowed under state law. If the property is in foreclosure or payments to the morgage/lien holder(s) are in arrears it is necessary for the borrower to negotiate with those entities concerning restructuring/refinancing of the loan. If that is not possible the home will be forfeited. Likewise, if the exemption amount does not protect the property from being included in the BK then the home might not be excluded from bankruptcy action.


Can you keep your home if you file a chapter 7 bankruptcy?

AnswerYes - assuming you meet certain criteria. Generally speaking, you can keep your home during a Chapter 7 case so long as you "reaffirm" the debt to the mortgage company during the case. This means you contact the mortgage company and tell them you want a "reaffirmation agreement," then they will send you one and you sign it, they sign it, and you file it with the court. This reaffirmation agreement puts you back on the hook legally for the mortgage debt, but lets you keep your home. In other words, it allows the mortgage to pass through the bankruptcy unscathed. There are a couple of roadblocks to this though: (1) If you are not current on your mortgage payments, the mortgage company will usually not allow you to reaffirm the debt. So, generally people in Chapter 7 must be current on mortgage payments to be able to keep a home in a Chapter 7. (2) If you have too much equity in the home, the Bankruptcy Court may seek to sell the home. In other words, each State says how much equity in residential real estate a person who files bankruptcy in that State may protect. If you go over this amount, the Bankruptcy Court can sell the home to get that unprotected equity to give to your creditors. For example, in Indiana each person may protect $15,000.00 equity in residential real estate. So, if John files bankruptcy in Indiana and he owes $70,000 on his house and his house is worth $80,000, he is fine since he only has $10,000 in equity ($80,000 value minus $70,000 mortgage) and he is safe for up to $15,000. But, say John owes $70,000 on his house and it is worth $150,000. Now, John has $80,000 in equity ($150,000 value minus $70,000 mortgage) and he can only protect $15,000, so the Bankruptcy Court would sell the house, pay off the mortgage, give John his $15,000, and keep the remaining $65,000 to give to creditors.So, to keep a house in Chapter 7 be sure you are current on the mortgage and check and be sure you are within the amount of equity you are allowed to have in your State. Please note that nothing in this posting or in any other posting constitutes legal advice; this is simply my understanding of the facts and law, which I do not warrant, and I am not suggesting any course of action or inaction to any person. Speak to a lawyer for specific advice. If you have any questions, please refer to a lawyer in your jurisdiction.


By filing chapter 7 will you lose your house?

That answer to that question depends on a couple of factors, and to WHOM you're talking about losing the home. LOSING THE HOME TO THE MORTGAGE COMPANY: If the house payments are behind, the mortgage company will still be able to forecose on the home even if you file Chapter 7, so the Chapter 7 may delay the foreclosure but generally won't stop it from happening. If, however, one is current on his or her mortgage payments, then that person can usually keep the home without objection from the mortgage company. LOSING THE HOME TO THE BANKRUPTCY COURT: Usually one only loses a home in Chapter 7 to the Court if they have more equity in the home than the State in which they file let's them keep in a home in bankruptcy. In Indiana, a person may keep a home when they file bankruptcy so long as they do not have more than $7,500.00 in equity in the real estate (and couples may protect $7,500.00 each, so $15,000.00 all together). These amounts will probably double in July 2005. So, in Indiana, if one owns a home worth $100,000.00 and they owe $95,000.00 on it, they won't lose the home since they can protect the $5,000.00 in equity by using $5,000.00 of their $7,500.00 exemption. This is a simplistic explanation since there are other exemptions which may apply, practical applications to consider, as well as exceptions and exceptions to those exceptions, but you get the general idea. Each State is very different on how much stuff you get to keep when you file bankruptcy, however, so check with an attorney in your area to see what exemptions you are entitled to. Please note that nothing in this posting or in any other posting constitutes legal advice; this is simply my understanding of the facts, which I do not warrant, and I am not suggesting any course of action or inaction to any person.


Can you protect a structured settlement in a chapter 7 bankruptcy?

Yes you can protect it under chapter 7 bankruptcy


What is the purpose of mortgage protection life insurance?

The purpose of mortgage protection life insurance is to protect the home from being lost in the event the mortgagee passes away. The life insurance will pay off the balance of the existing mortgage to the finance company.


What happens to the first mortgage on a condo in Florida when the condominium association forecloses for unpaid association fees?

A creditor that has perfected its lien by a court action can take possession of a property as a result of the debtor's failure to pay their debt. An HOA that has a lien on your property for unpaid fees can take possession of your property by foreclosing on that lien.Generally, in the case of an outstanding mortgage, the HOA would take possession of the property subject to the mortgage. However, the mortgage would remain in the original debtors name and would have an extremely detrimental effect on their credit. More often, an HOA would record their lien in the land records but not actually foreclose if there exists senior liens.


Can they take your house if you have card debt in Wa State?

It is possible, yes, although new bankruptcy and mortgage rules have gone into effect that may protect you (in part). Best consult a lawyer to find out the details.


How reliable is PMI mortgage insurance?

"Most people do not understand the purpose of PMI insurance. I know it is to protect the mortgage company from risk, but it almost seems like it's just another fee to add to the payment."