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Tip# 8
San Diego Bankruptcy attorney Charles Andersen recommends a Chapter 7 "Top Kill" strategy for clients in foreclosure.
Los Angeles Times, May 2010
Not Paying the Mortgage and not Even Worrying
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Many Chapter 7 clients of San Diego bankruptcy attorney Charles Andersen survive 6 months to a year on the automatic stay before a lift stay order can be achieved |
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Some even obtain financial freedom and permanent mortgage elimination. |
For many clients in bankruptcy, foreclosure it becoming a way of life - something they did not want but are in no hurry to get out of.
Foreclosure has allowed them to stabilize the family business, go to Outback occasionally for a steak. Take their gas-guzzling speedboat out for the weekend. Visit the Hard Rock Casino
"Instead of the house dragging us down, it's become a life raft." said one client, who stopped paying the mortgage on their house last summer. "It's really been a blessing."
A growing number of people whose homes are in foreclosure are refusing to slink away in shame. They are fashioning a bankruptcy mortgage modification, one that brings their payments all the way down to zero. They use the money they save to get back on their feet of just get by.
This type of modification does not beg for a lender's permission but is delivered as an ultimatum: Force me out if you can. Any moral qualms are overshadowed by a conviction that the banks created the crisis by snookering homeowners with loans that got them in over their heads.
"We could pay the mortgage company way more than the house is worth and starve to death" said the client, "Or we could pay ourselves so our business could sustain us and people who work for us over a long periods of time. It may sound very horrible but it comes down to a self preservation thing."
They used the $1837 a month that they were not paying their lender to publicize there business, first with print adds, then with local television. Word apparently got around because the business is recovering.
The couple owe $280,000 on the house where they live with their two daughters, their two dogs and a very round pet raccoon. The house is worth far less than that amount - which they said would be their starting point in future negotiations with their lender,
"If they took the house from us, that's all they would end up getting for it anyways," said the client age 48.
"In the mean time our bankruptcy has wipe out over $50,000 in other credit card and medical debt."
Call the Bankruptcy Law Offices of Absolute Bankruptcy, P.C. Call today for a FREE Debt Consultation.
Here's a telling question: Knowing what you know about your own situation, would you lend yourself more money?
Rather than continuing to tread water with ankle weights, ......recognize you may be in over your head.
