Baton Rouge Foreclosures

where can you find help if your home is in foreclosure?

I LIVE BATON ROUGE LOUISIANA, AND WANTED TO KNOW IS THERE ANY KIND OF HELP TO KEEP FROM LOSING MY HOME

Option 1: You can negotiate with your bank for a redemption by offering to buy your mortgage. This is an alternative to mortgage modification so you won’t need your bank to modify your current loan. All you need to do is find a new lender first, asap. Choose one with a lower interest rate at a fixed rate for five years, prediction based on current Jan-Mar 2010 conditions, and/or who allows a longer period/term (Lucky Rabbit’s financial advice). If your current lender is Fannie Mae or Freddie Mac then you’re possibly eligible for government aid in refinancing your mortgage. Phone the Federal Housing Finance Agency on that. Also contact HUD because you might also qualify for a partial redemption assistance http://portal.hud.gov/portal/page/portal/HUD/i_want_to/avoid_foreclosure This means the government will pay a bit towards helping you buy back your home via your new lender; in effect the principal you borrow will be lower than the current market value of your home. The new lender can loan you the rest of the money to buy your home. Then offer to buy/pay off that mortgage before the foreclosure. Meanwhile, continue to pay your mortgage.

Option 2: Implement this step if you are one or two weeks away from the foreclosure deadline and weren’t successful in option 1. In your interactions with the bank prior to filing a bankruptcy claim, don’t even hint that you are aware of this option. That is because they can then take steps to stop you from doing this and refuse option 1. If you voluntarily Declare Bankruptcy the types open to you are ‘chapter 13′ or ‘chapter 7′. A ch 13 bankruptcy notice gives you a chance to keep your home, if you find a willing lender. Read the links I researched. Both types include an “automatic stay” or delay of the foreclosure. Check your eligibility for a ch 7: basically, your gross income over the six months before filing your bankruptcy must not exceed the median income for the same size household in Louisiana. For a quick estimate, use the online means test in http://www.nolo.com and click the ‘bankruptcy, foreclosure…’ tab to search. Also read the activerain.com link I provided to see if you qualify. Before you choose which to file, check with the FHFA again to find out if mortgage modification is now available for a chapter seven and 13 bankruptcy because of new amendments that might have recently been passed as law (see ‘contact us’ at the bottom of their home page or http://www.fhfa.gov/Default.aspx?Page=141 ). You could also ask the court clerks. This means that you could, if you really want to stay in your home, request the judge to order the bank to change your mortgage so that it is more affordable to you, such as a lower rate or a longer term. Or you could request that the court allow you to find a cheaper loan and for the new lender to pay out your current bank. That is called ‘redemption’ (see option 1). Request those options ONLY if you get confirmation that ‘mortgage modification’ and ‘hardship discharge’ is available. It depends on your financial situation and whether you want to try and save your home. You definitely should consult a financial advisor or insolvency lawyer to write all of that because government aid (see http://cantwell.senate.gov and click the ‘constituency services’ tab on top to find info & free legal services) in a traditional bankruptcy can complicate and confuse judges; they could see you as making a false bankruptcy claim and so reject your application (original by Lucky Rabbit). Then you’d still have to move out but earlier. When you file, I advise that you include a written request to the court to give you at least 21 days after the date of their decision on your bankruptcy. That allows you more time to find another place and move out of your home (original advice by lucky rabbit) because up until the court makes a decision, you can live in your home beyond the foreclosure deadline. The court might decide to give you 21 or 14 extra days.

You have to include a list of your assets, loans, living expenses, and income sources. Examples are: receipts to show petrol costs, insurance contributions, last year’s tax assessment (they don’t need to see your SS/identification number so you can black that out in the photocopy or original), grocery receipts, names and addresses of other lenders such as your credit card company. If you suspect that you are in the high income earner status, or that the total of what you actually own Debt Free might put you in the high income earner status, you should go to an accountant or financial planner (original advice by Lucky Rabbit). S/he can help you prepare more accurate information that reduces the chances of your bankruptcy claim being rejected.

During the bankruptcy processing time, the bank must stop requesting payments immediately regardless of how much you owe and are late on. You don’t have to pay them anything during that time, and nothing at all after the court approves your declaration (they always do for 90% of self-declared bankrupts). If your claim fails you still won’t have to pay because you’ll just move out and the bank will continue foreclosure (original explanation by Lucky Rabbit). This will allow you to live in your home for free from the date of filing to the time the court finishes your case; that could be two to four months. Use the money you save during that time for the bond deposit and first few months of renting. The auction date of your home must be postponed during the time that a bankruptcy claim is pending a decision. This means the bank must not show your home to anyone or sell your home during the time your claim is being processed. And don’t choose a deed-in-lieu instead of bankruptcy (original advice by Lucky Rabbit). If you get declared a bankrupt, then a trustee will sieze most of your assets. Choosing to apply for bankruptcy protects your credit rating from further falling while a lessor/landlord checks your record. It is also better than waiting to be foreclosed because you’d be on the bad credit rating blacklist for years longer than if you were declared bankrupt. (10 March 2010)

Baton Rouge Appraisers Video: Someone Took An Axe To This Foreclosed Home