Wednesday, May 1, 2013

Destroyed Property Now in Foreclosure: Rebuild or Walk Away?

Question: We are in the early stages of foreclosure on our home as my wife has been laid off for a while. We have payments in arrears with an attorney, who helped us get a loan modification on our mortgage, but our home was destroyed in a fire and is now a total loss. We got a payment from the insurance company, so I would rather rebuild our home than walk away. My wife is starting another job in a month. Will the bank move forward with the foreclosure or allow us to rebuild our home?

Response: If you are not paying the mortgage, the bank may start a foreclosure action. You can try to get a loan modification to avoid foreclosure. However, if you now have the money to reinstate the loan (i.e. pay back the arrears and get current on the mortgage payment), the bank will be happy to get its money back. Once the loan is reinstated, you no longer in danger of foreclosure and I don't see a reason why you shouldn't be able to rebuild your home unless it is not feasible for you for some other reason.

In the legal blog, Attorney Svetlana Kaplun addresses typical questions our firm has received from our clients, or come across from homeowners related to foreclosure, foreclosure defense, loan modification and bankruptcy topics.

The information contained in the legal blog of Attorney Svetlana Kaplun is for informational purposes only, and should not be construed as a legal advice on any subject matter. Please read our full disclaimer or contact the Law Office of Svetlana Kaplun, P.C. by telephone at 718-444-1115 for more information.
Copyright © 2015 Law Office of Svetlana Kaplun, P.C.

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Compliance with Bank's Financial Information Requests in Short Sale Process

Question: We were in a short sale process with our lender and now they transferred our loan to another lender. The new lender says we have to start the short sale process all over and provide extensive financial information, which was provided in part to the original lender. Is this legal and if so, I only plan to provide limited information and state that we filed Chapter 7 bankruptcy in 2011 for much of the questions.

Response: Short sale process can be rather complicated and must be approved by the bank. If your servicer has changed, you must now comply with new servicer or short sale will not be approved. If you filed for bankruptcy, there is nothing shameful here and should be disclosed. The bank usually pulls your credit report and will be able to see it anyways. Every bank has their own process for short sale and I am not sure what it is that this particular bank is asking of you in this case but most of the time they just want to get an offer similar to the market value of the property to approve the short sale (also unaffordability of current mortgage).

In the legal blog, Attorney Svetlana Kaplun addresses typical questions our firm has received from our clients, or come across from homeowners related to foreclosure, foreclosure defense, loan modification and bankruptcy topics.

The information contained in the legal blog of Attorney Svetlana Kaplun is for informational purposes only, and should not be construed as a legal advice on any subject matter. Please read our full disclaimer or contact the Law Office of Svetlana Kaplun, P.C. by telephone at 718-444-1115 for more information.
Copyright © 2015 Law Office of Svetlana Kaplun, P.C.

modification, making home affordable, hamp, mortgage modification, harp refinance, making homes affordable, modifications, home affordable modification program, home affordable refinance program, hamp program, home loan modification, loan modification guidelines, foreclosures, foreclosure listings, foreclosure homes, mers, foreclosure settlement, foreclosure homes for sale, free foreclosure listings, foreclosure home, deed in lieu of foreclosure, foreclosure process, how foreclosure works, home foreclosure, foreclosure radar, bank foreclosure, home foreclosures, foreclosure listing, hud foreclosure, foreclosure laws, short sale vs foreclosure, stop foreclosure, totally free foreclosure home listings, foreclosure help, free government home foreclosure listing, free listing foreclosure home sale, free foreclosure listings with pictures, fannie mae foreclosure, independent foreclosure review, lawyers, power of attorney, personal injury attorney, attorneys, power of attorney form, durable power of attorney, power of attorney forms, criminal attorney, attorney search, medical power of attorney, free power of attorney, bankruptcy attorney, power of attorney template, power of attorney form download, durable power of attorney form, free power of attorney forms, general power of attorney, free printable power attorney form, lasting power of attorney, tax attorney, free power attorney forms, divorce attorney, ace attorney, disability attorney, attorney jobs, enduring power of attorney, attorney at law, patent attorney, free power of attorney forms to print, real estate attorney, injury lawyer, personal injury lawyer, defense lawyer, criminal defense lawyer, the lawyer, accident lawyer, a lawyer, criminal lawyer, motorcycle accident lawyer, rocket lawyer, bankruptcy lawyer, divorce lawyer, ask a lawyer, find a lawyer, lawyer referral, car accident lawyer, family lawyer, lawyer search, lawyer find, lawyer ratings, lawyer referral service, immigration lawyer, dui lawyer