Your House Is in Foreclosure: What Should You Do?-Part 2

Hopefully you have read the first part of this blog that discusses mortgage modifications and short sales. This portion of the blog will examine how filing a Chapter 7, Chapter 11, or Chapter 13 bankruptcy can impact your foreclosure.

Hopefully you have read the first part of this blog that discusses mortgage modifications and short sales. This portion of the blog will examine how filing a Chapter 7, Chapter 11, or Chapter 13 bankruptcy can impact your foreclosure.

Although the housing market is supposedly recovering from the real estate crises, many homeowners are still struggling to make their mortgage payments. If you are one of them, you may be trying to decide whether a short sale and/or filing for bankruptcy is the best option for you.

A short sale occurs when you sell your home for less than the amount owed on your mortgage. All of the proceeds from the sale are used to pay a portion of the mortgage debt balance.

There are numerous factors that should be considered in trying to decide whether a short sale or bankruptcy is the better debt relief option for you.

Time. The process for completing a short sale can be complex and time-consuming. And, after all your efforts in a short sale, there is no guarantee that your sale will close successfully. When you file a bankruptcy case, you are provided immediate relief from your creditors. If you successfully complete your bankruptcy, you will receive a discharge order that could potentially eliminate all or a large majority of your debt.
Deficiency balance. A deficiency balance is all amounts that remain due and owing on the mortgage loan after the house is sold. It is important to understand in advance whether or not the lender will consider the payment from the sale as “payment in full” and waive the deficiency balance, or whether you will still be liable to pay any remaining amounts. In some states, lenders are required to accept the short sale proceeds as payment in full. In a bankruptcy filing, you can discharge or eliminate the deficiency balance left after the short sale of your home.
Overall financial situation. Is your mortgage the only debt you can’t timely pay? If so, a short sale may be the solution because it only deals with your mortgage debt. However, if you are struggling to pay numerous bills, bankruptcy is the better option. A Chapter 7, 11, or 13 filing allows you to deal with all of your debt at one time. A bankruptcy brings all of your creditors into the case so you can comprehensively deal with your debt.

Please keep in mind that every case is different. If you are contemplating a short sale and/or filing bankruptcy, and you need help deciding which may be your better option, please contact our office to schedule a no-cost consultation by completing the form on this website or calling us at 954-466-0541.

Image of a person looking at the bankruptcy forms in shock.

How Long are the Florida Bankruptcy Forms?

Filling out these forms requires a thorough understanding of your current financial affairs. You'll need...

Image of a watch over some money, related to the time it takes for Chapter 7 bankruptcy in Florida.

How Long Does Chapter 7 Take in Florida: A Comprehensive Guide

Now, let's address the question at hand: how long does Chapter 7 take in Florida? Typically, the Chapter...

Image of a guidebook for chapter 7 bankruptcy: Florida qualifications.

Chapter 7 Bankruptcy: Florida Qualifications - Your Guide to a Fresh Start

Chapter 7 Bankruptcy, often referred to as straight or liquidation bankruptcy, is a legal process that...

Image of a comprehensive guide for exploring Florida bankruptcy laws.

Exploring Florida Bankruptcy Laws: A Comprehensive Guide

Bankruptcy is a legal procedure that allows individuals or businesses struggling with debt to seek relief...

Schedule Your Business Bankruptcy Strategy Session

Claim Lead Magnet Form Submission

Signs user up for long term narture compaign

    
 
 
       If you are considering filling for bankruptcy , this would be the firm to use! Jonathan is very experienced as well as all of his team, Specially Anne ! They made the process very easy and my case was approved due to their help and expertise! I am very grateful to have had them representing me !
  
 
    
   Xime Basa 
 2023-09-28
 
 
 
      I highly recommend LSS Law. No complaints. Jonathan, Ann, and Maria were very professional and clear in all our communications, which makes everything really easy.
  
 
    
   Donald Galindo 
 2023-09-05
 
 
 
      Great service. Friendly and helpful staff. Highly recommend.
  
 
    
   Al La 
 2023-03-29
 
 
 
      Jonathan and Anne were wonderful and I thank you for helping me with my new beginning.
  
 
    
   ADRIANNE SURRENCY 
 2023-03-29
 
 
 
      I had a wonderful experience with Jonathan Leiderman at LSS Law. Not only is he well experienced, but he is also very patient and supportive throughout a tough time. I appreciate that he takes such a hands-on approach where there is no going through office staff and waiting for a reply. He deals with you one-on-one, and he is your single point of contact. He takes time to answer all your questions and takes the time to ensure that you understand every aspect. He is highly communicative and does so in a timely manner.... I always got a response within minutes or hours, at the latest 24 hours. I don't know how he does it all, but I am grateful that I had him to represent me! I highly recommend Jonathan and LSS Law!
  
 
    
   Jewel Nicholson 
 2023-02-16
 
 
 
      Jonathan Leiderman did a phenomenal job representing me and taking on my case.  His knowledge, experience, and diligence quickly became apparent through his work product and the correspondence that he maintained with me.  Furthermore, he was always quick to answer my questions and put my mind at ease during the entire process.  Jonathan and LSS Law will forever have my gratitude and I highly recommend their services to anyone who is in need of them.
  
 
    
   Ali 
 2023-02-06
 
 
 
      I am really greatful to attorney Jonathen Leiderman for patiently working with me through a very stressful period of ambivalence, and then towards resolution of a difficult predicament. His professionalism and empathy were exceptional. I would recomend him to all who need similar services.
  
 
    
   Peter G 
 2022-04-04
 
 
 
      Excellent company to work with providing timely advice and guidance.  Went above and beyond in assisting our company with an out of state bankruptcy issue
  
 
    
   Diane Artioli 
 2021-10-08
 
 
 
      This company was very professional, sympathetic and very reasonably priced.
  
 
    
   Kemel Gajraj 
 2021-09-13

Hear From Our Clients

Google Reviews

Xime Basa

If you are considering filling for bankruptcy , this would be the firm to use! Jonathan is very experienced as well as all of his team, Specially Anne ! They made the process very easy and my case was approved due to their help and expertise! I am very grateful to have had them representing me !

Donald Galindo

I highly recommend LSS Law. No complaints. Jonathan, Ann, and Maria were very professional and clear in all our communications, which makes everything really easy.

Walter Laramore

Jonathan is quite splendid to deal with and has been an ideal representative for my case. Well prepared, great attention to detail, and very empathetic to my needs. Superior communication skills and gets back with you, anticipating your needs. Worth every penny!

Tavy Bastos

I had a great experience. Jonathan was very attentive, patient and knowledgeable. I had consulted with a different office before that was subpar and didn't provide all of the options provided by this one. I felt secure and in good hands with the representation.

Adrianne Surrency

Jonathan and Anne were wonderful and I thank you for helping me with my new beginning.

Contact us for your Strategy Session

When you’re ready to take the next steps toward a secure and successful future, please get in touch with our team for your Strategy Session.

Your House Is in Foreclosure: What Should You Do?-Part 2

Table of Contents

Related Posts