How would you like to stop foreclosure?
keep your home, get rid of your 2nd mortgage forever, control or even eliminate other debts, and save thousands or hundreds of thousands of dollars?
Hello, I’m Gary Fraley. I founded Fraley & Fraley, Sacramento Bankruptcy Attorneys in 1978. I’m in my 34th year of practicing bankruptcy law. I’m one of only about 100 attorneys Certified by the California State Bar Board of Legal Specialization as a Certified Bankruptcy Law Specialist and I teach bankruptcy law seminars for bankruptcy attorneys.
We practice bankruptcy, debt reorganization and debt negotiation law. We protect individuals and small businesses from mortgage company foreclosure to bill collector abuse.
If you are reading this, you are likely one of many homeowners in financial difficulty. Perhaps you are even in foreclosure. A Sacramento Bee investigating found that one out of every 7 homes in our region was either in foreclosure or seriously delinquent on their payments and facing foreclosure. Unfortunately you probably have no home equity. In fact, your home is probably worth even less than you owe on your 1st mortgage. If you have a 2nd mortgage with no equity above the 1st mortgage, this bad news may have a “silver lining” for you.
Common Mistakes Made During Foreclosure
Many homeowners like you just give up and walk away from their home when it is in foreclosure. Worse yet, people in foreclosure often get talked into doing a short sale of their home by some real estate salesperson. Often that salesperson does not know, or realize, or even care what the true tax and other consequences are for you.
I have met with many people who are told by some real estate salesperson that new laws allowed people to do a short sale and have no tax consequence. This may be true in some situations. Most of the time however, these statements are inaccurate, misleading, and simply false.
I also know that many of these individuals tell people that a short sale will save their credit. This too is false. In fact, a short sale does exactly the same damage to your FICO credit score as a foreclosure or a bankruptcy filing.
I want you to know that walking away from your home or short selling your home is likely to be the worst mistake you can possibly make for your financial future. This is even true when your home is in foreclosure. Even if you are ready to walk away from your home now, come in and see us first. The free advice you will receive in my office will still be worth thousands of dollars to you. I guarantee it.
How We Can Help You During Foreclosure
Fraley & Fraley, Sacramento Bankruptcy Attorneys, specializes in helping people stop foreclosure, keep their homes and reduce their debts. Not just mortgage debt, but all debts. Together we can control some of your debts and eliminate the rest. That includes your 2nd mortgage.
If you never had to pay another cent to your 2nd mortgage holder and could remove that 2nd mortgage off your home, would you keep your home?
If your answer is “yes” then you need to call my friendly staff at (916) 485-5444 and schedule a free, no pressure bankruptcy attorney consultation. It is likely we can remove that 2nd mortgage off your home. We can control or eliminate other debts like credit cards, lines of credit, medical bills, and in some cases, even taxes.
If you are attempting to do a mortgage modification, you need to see us before you sign any agreement. If the mortgage company actually “forgives” part of the debt in a loan modification, do not agree to it without talking to a tax attorney or Certified Public Accountant to learn what the tax consequences may be. Your obligation to pay the tax man for any forgiveness of debt applies whether you have lived in your home for one month or 30 years. Capital gains taxes may not apply but forgiveness of debt is treated as ordinary taxable income. In that situation foreclosure may be the better choice. Determining whether foreclosure is better depends on too many factors than we can go over here. You need honest advice from someone who has both experience and knowledge on this issue.
If you do a loan modification and later need to do a bankruptcy, you may then find the Bankruptcy Court telling you that you have money available to give to your general creditors in bankruptcy and must pay creditors that you otherwise would not have to pay. This is true if you short sell as well.
Whether you do a mortgage modification to stop foreclosure before or after filing a bankruptcy will depend on too many factors than we can cover here. However, we certainly can discuss with you when you come to see us. If you already did a mortgage modification, the world won’t end (maybe). However, we may want to look at the best timing to file a case for you if it is needed.
If you choose to do a Chapter 13 Reorganization plan, to can keep your home without paying the 2nd mortgage. It can be “lien stripped” off your home like it never even existed. Depending on your situation, that plan could be as short as 36 months or as long as 5 years.
Even if your do not want to file a bankruptcy, you still need to call us immediately at (916) 485-5444. Here’s why:
If you took out your 2nd mortgage after you bought your home, whether as part of a refinance of your purchase money loan or a new loan or home equity line of credit, you may have a serious problem. As you probably know, if you can’t make your mortgage payments to your 1st mortgage, they can foreclose and take your home. Then it gets much worse. Unfortunately your 2nd mortgage can still sue you for the full amount of what you owe them even though you lost your home to foreclosure.
Fortunately, I can control or, more likely, wipe out your personal obligation to pay that 2nd mortgage.
If you move out of your home, you may well lose your ability to qualify to file a Chapter 7 straight bankruptcy to get rid of your debts including your 2nd mortgage. Instead of being able to get rid of most of your debts, you could be required to spend up to 5 years of your life paying every penny above what the IRS thinks you should live on to your creditors. We all know how generous the IRS is.
Also, if you move out you may find yourself being sued for homeowner’s association dues. You are also liable if someone gets hurt on the property or if the property becomes a hazard, needs weed abatement or worse. Do not move out without coming in to see us first. You need good honest advice and knowledge to be able to make the right decisions for you.
Remember, knowledge is power.
Call my friendly staff at (916) 485-5444 to schedule a free, no pressure attorney consultation. Don’t be afraid. Let me help you regain control of your life and maybe, if you want to, even help you save your home from foreclosure.
