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Fannie Mae recently launched KnowYourOptions.com
In its Press Release, Fannie Mae states that:
The Key features of KnowYourOptions.com are said to include:
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Wall Street Reform Bill: $1 billion fund to help unemployed homeowners avoid foreclosure
The Dodd-Frank financial regulatory reform bill which passed through Congress and is headed for President Obama’s desk, contains a provision that is likely to help some unemployed homeowners avoid foreclosure.
The Washington Independent reports that there is a provision in the bill to set up “the Emergency Homeowners’ Relief Fund…a $1 billion fund to help unemployed workers stay in their homes.” According to the article the fund should be in place by October 1, 2010 and “will offer qualified unemployed homeowners low-interest loans up to $50,000 to help them keep up with their mortgage payments and remain in their homes.”
The article also reminds us that “On July 1, the Treasury Department started up the Home Affordable Unemployment Program. Through the program, banks and lenders will let unemployed homeowners stop paying their mortgages for set periods of time while they look for work, or will reduce payments to less than 31 percent of the homeowner’s gross monthly income for a set amount of time. (That means that if the homeowner’s income is zero, the payment will be zero. If he or she is taking severance or receiving unemployment insurance, it will be about a third of that.)”
Also visit our Foreclosure category to learn more about foreclosure.
As always, The Foreclosure Defense Law Firm of VAUGHN & WEBER, PLLC is here to assist you. We are conveniently located in the heart of Nassau County, Long Island, at 217 Willis Avenue in Mineola, NY. Contact us at (516) 858-2620 to arrange a consultation with a foreclosure defense attorney.
Filing Bankruptcy to Save Your Home: CHAPTER 7 Bankruptcy
Will filing a chapter 7 bankruptcy save my home from foreclosure?
Probably not.
If you are facing foreclosure you have likely missed a few mortgage payments. Chapter 7 does not allow you to make up your missed payments over time.
However, the “automatic stay” may delay the foreclosure long enough for a homeowner to complete a sale or loan modification.
Automatic stay – An injunction that goes into effect automatically, with some exceptions, when a debtor files for bankruptcy. It, in most cases, automatically stops most lawsuits, foreclosures, garnishments, and collection activities against the debtor.
Generally, Chapter 7 bankruptcy is a better option for homeowners who are current on their mortgage, or at least not in foreclosure, but may be struggling due to other “dischargeable debt”.
Dischargeable debt- Debt that can be eliminated by filing bankruptcy (credit card debt, medical bills, etc.).
Filing Bankruptcy to Save Your Home: CHAPTER 13 Bankruptcy
Will filing a chapter 13 bankruptcy save my home from foreclosure?
Probably.
Chapter 13 Bankruptcy DOES allow you to make up your missed mortgage payments over time (3-5 years). This is done via a monthly payment plan. A portion of your arrearage is paid along with your current monthly mortgage payment as part of your chapter 13 plan.
Also, like a chapter 7, the “automatic stay” may delay the foreclosure long enough for a homeowner to complete a sale or loan modification.
Additionally, you may also be able to “strip-off” a totally unsecured 2nd/3rd mortgage on your primary residence. This would allow the 2nd/3rd mortgage to be treated as any other unsecured creditor. Thus, it would be dischargeable upon the completion of the Chapter 13 plan.
As always, The Law Firm of Vaughn, Weber & Prakope, PLLC is here for you should you need us. Contact us at (516) 858-2620 to speak with a bankruptcy attorney.
Please visit our Bankruptcy category to learn more about filing chapter 7 or 13 bankruptcy.
Please visit our Foreclosure category to learn more about foreclosure issues.
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