Bankruptcy, Foreclosure and Short Sale Seminar for Real Estate Professionals!
Bankruptcy, Foreclosure and Short Sale Seminar for Real Estate Professionals!AND Helpful Tips for the Changes in the Law Affecting the HUD and Closing Documents!
Knowing about Bankruptcies helps you to know if your client can sell a house and, if so, when.
Chapter 7Chapter 13
CHAPTER 7Means TestFresh StartLiquidates DebtsBut, you can Reaffirm DebtsNo Guarantee of a Permanent Stay without Equity in the Home.Limited Exemptions for Assets
MEANS TESTMeans test is a determination of whether an individual or family is eligible for government assistance, based upon whether the individual or family possesses the means to do without that help.Look at IncomeLook at Number of DependentsLook at Expenses
FRESH STARTIn a Chapter 7, you can wipe out most unsecured debts, EXCEPT:School LoanTaxesPersonal Injury Cases Arising From DUIFraudulent DebtsAlimonyChild Support
REAFFIRMING A DEBTCarsHousesForm provided by the Creditor.Completed by the Debtor.
STAY FORECLOSURE/LITIGATIONStay = AutomaticUNTIL Bank Files a Motion for Relief from Stay.Motion- GRANTED, if no equity and Bank complies with the Local Rules.However, the Court may grant additional time.
CHAPTER 13FeasibilityPayment PlanKeep Your AssetsStrip Off Second MortgagesCannot Sell Assets Without Court Permission
FEASIBILITYFor Ch. 13, your MUST have the Income to Pay the Payment Plan.
PAYMENT PLANRepay Secured DebtsPay Priority Unsecured DebtsPay a % or Unsecured DebtsComplicated Process- Takes Months for Approval
KEEP YOUR ASSETSIn Ch. 13, you can keep your assets while you make you payment plans.But, you have to fully disclose all assets, including inheritance and personal injury settlements even if you have not received them, yet.
STRIP SECOND MORTGAGE/ELOC
If you have more than 1 Mortgage, you MAY be able to strip off the second mortgage or ELOC.But, ONLY if the house is worth LESS than what the FIRST Mortgage is valued at.Values are based on appraisals.
YOU CANNOT SELL ASSETS WITHOUT COURT PERMISSIONWhen you enter Bankruptcy, all of your Assets become a part of the Bankruptcy Estate.You CANNOT transfer/sell any assets WITHOUT Court Permission.Court Permission can be obtained via Motion.
UNLAWFUL PRACTICE OF LAWDONT GIVE LEGAL ADVICE!You want to help your potential client, but protect yourself always.Get it in writing.Dont help with filing Bankruptcies!Dont help with filing Motions!Dont go to Court!
DONT ABUSE THE SYSTEM!If you do you run the risk of being denied your Bankruptcy Discharge.Or, WORSE, criminal charges of perjury and/or Bankruptcy Fraud.
FORECLOSURE JUDGESMIAMI-DADEDivision Judge handles all issues, except Motion to Cancel Sale and Motion for Summary Judgment.BROWARD3 Judges:Judge Lynn Rosenthal: Older than 2011Judge Joel Lazarus: 2011 and YoungerJudge Stone: Trials
THE PROCESSValid ServiceMotion to Dismiss/AnswerDiscoveryMotion for Summary Judgment/TrialCT/Writ of Possession
PROPER/LEGAL EXECUTION OF THE PROCESS = MORE TIME
YOU NEED TIMEEvery bank is different.4 Months to Work with is PreferredList for 2 Weeks firstThen take Offer to Bank with:With Proof of Buyers Ability to PayFair Mark Value Pull Final Judgment AmountPhotos and provable evidence as to why offer lower the Final Judgment should be accepted. I.e. roof damage.
UNLAWFUL PRACTICE OF LAWDONT GIVE LEGAL ADVICE!You want to help your potential client, but protect yourself always.Get it in writing.Dont help with filing Motions!Dont go to Court!
WHEN YOUR CLIENT MAY QUALIFY AGAIN FOR A MORTGAGEAfter ForeclosureAfter Short SaleAfter BankruptcyOther Options
CFPB CHANGEShttp://www.consumerfinance.gov/Making the mortgage process easierThe Know Before You Owe mortgage disclosure rule replaces four disclosure forms with two new ones, the Loan Estimate and the Closing Disclosure. The new forms are easier to understand and easier to use. The rule also requires that you get three business days to review your Closing Disclosure and ask questions before you close on a mortgage.
LAW OFFICE OF PEGGY URBANEJA7401 Wiles Road, Suite 208; Coral Springs, FL 33067(954) 840.0421; www.urbanejalaw.comAREAS OF PRACTICETitle/ClosingsBankruptcyForeclosureFamily LawPersonal Injury