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Short Sales – Advantages and Disadvantages

By stonehavenlaw on February 20, 2012 in , ,

A short sale is occurring if the home owner delays on their loan payments. When the home owner faces foreclosure, he sells the property for less than what is debited to the lender. Those sales need to be approved by the mortgage lender. These short sales become very popular. There are many reasons why they are become so prevalent nowadays. In some cases, home owners fall behind due to their job loss, others with adjustable- interest rates can’t make payments If their interest rates rise; others because of sickness or divorce. A lot of home owners have seen that value of their home decrease and when they want to refinance.

Foreclosure is a huge frustrating task for every person who is involved in that, more and more often mortgage lenders are becoming irresponsible home owners , who try to sell their property lesser than the amount what they are still indebted to in loan payments. There are many potential hazards to dealing with a short sale property, but it is also a financially sensible investment. There are definite advantages and disadvantages that you need to understand before making a decision.

Advantages:

  • Real estate agents, closing and title agents, brokers can all get profit from short sales.
  • You can be in control of the deal.
  • Inhibit the remark “foreclosure” on the credit account. Mortgage lenders affirm another way and some would not bear them to the credit bureau whatsoever.
  • The home owner may also be benefited from the short sales in which it eliminates a foreclosure on their final credit report.
  • It is also usually quicker and less costly to resolve than some other alternatives.
  • If you have had reported for a foreclosure notice, you can manage this action to postpone while the bank thinks about with your short sale. It may take two to three months or more time to approve all these by the bank.

Disadvantages:

  • So many states would still tax you, if you fail to meet the requirements and needs for an exemption.
  • Not each and every home or seller qualify for the short sales.
  • Not all mortgage lenders will take bargain payoffs or short sales, most importantly if it could make profuse financial sense to foreclose.
  • If you want to sale your remaining, then it may not be the best option for you. An experienced short sales lawyer can advise you about the options that are available to you, which can protect you and your property.
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Can I File Bankruptcy for Free?

By stonehavenlaw on February 5, 2012 in ,

Filing for bankruptcy is a very costly process. Any person who is facing problems in filing bankruptcy is not only concerned with the personal cost to their assets, finance and credit, but also he/she wonders about the cost to file for bankruptcy. However individual does all the required legal works themselves, there is a need for submitting documents, bankruptcy forms and requirements, so it is not free of cost with any court.

“Can I file the bankruptcy for free?” is the very first question, which comes in to the minds of individuals who are willing to file a bankruptcy because of their low credits, assets and finances. A consumer needs to be updated on bankruptcy filing information before file for bankruptcy offline or online. Generally, an individual, who is filing the bankruptcy under chapter 7 would pay $200, and likewise the person who is filing under chapter 13 will have to pay $300. These amounts do not include any professional or legal financial advice, and attorney’s fees.

If you have good knowledge about bankruptcy, then filing it through online will become very easy for you. If you want to file for bankruptcy at free of costs, then the best way is to meet any credit consulting agency, or any financial management group or a legal agency. The appropriate legal or financial agency will help you in providing free analysis of your financial situations and filing bankruptcy through online.

If you are searching for an easy and cheap way to file for bankruptcy, it will be a good idea about filing through online instead of hiring an attorney for this process. But before continuing for this procedure, you should be aware of the law of the state government from where you are applying. Only updated information about bankruptcy will helpful for you in terms of saving your money, so keep this thing in mind while filing for bankruptcy.

Filing costs: There is no way to escape from these filing costs of the bankruptcy case in the court, so everyone must have to pay. However, there is an option, which may allows you to get your fees of filing waived, but it is very rare so most of the people must pay through a payment plan or upfront.

Unless you have very low income and your chances of getting an attorney, taking credit classes is impossible for you, then better ask a legal adviser about your condition. In normal condition you have to pay something. Filing cost and credit classes alone are all cost almost $300. If you are looking for a bankruptcy attorney, fees may vary greatly; it may cost another $500 to $700 or even more.

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Different Types of Temporary Visas

By stonehavenlaw on February 2, 2012 in ,

So many people are coming to the US on temporary visas. This is the initial step in the process of applying for a permanent visa or green card. This temporary visa allows you to stay in the country till the approval of the application. Apart from this, so many people are coming for several temporary needs. So, they need the permission to live in the US, which is available in the form of visa. There are different types of temporary visa options to apply for. Here are several types of temporary visas:

  • F-1: Also called as student visa, this type of visa allows foreign students to study in the US educational institutions, and some visas also allow limited employment. The length of the F1 visa depends on how long the student will be studying.
  • B-1 or B-2: These visas are issued for business travelers for particular activities in the US such as to attend the convention of the business and to consult with business associates. The time period of B-1 visa will be remained up to six months.
  • K-1: It is also called as fiancé visa. This type of visa is issued for the fiancés of the US citizens who are living outside the US. K-1 Visa is valid up to 90 days only. After marriage it will be proceeded to get the green card.
  • K-3: It is also called as spousal visa. These are issued for the U.S citizens spouses who are staying outside the US. K-3 visa is valid up to 2 years after that it proceeds to the process of acquiring the green card.
  • R-1: This is for religious workers, who are being transferred by associated international church to the US.
  • P-1: This type of visa is issued for internally recognized athletics and entertainment groups.
  • J-1: These visas are for the exchange program participants. This will allow the business trainees to acquire information about profession or an occupation in the US. The duration of this type of visa is 12 months to 7 years that depends on the category for which you are applying.
  • TN: These visas are for Mexican and Canadian citizens for one year with unlimited renewals. For long term strategy these can be processed for dual-intent visa or investor visa and then green card.
  • H-1B: This type of visa is for professional workers in a wide range of applications. This is valid up to 3 years with one renewal it will be valid for 6 years. These visa holders can proceed to acquire the green card.
  • O-1: This type of temporary visa is issued for the people who have an extraordinary ability in arts, sciences, business, education or athletics. The duration is for 3 years. This can be proceeded to acquire green card after you start living in the US.
  • E-1 or E-2: These are applicable for business owners and investors to invest an ample sum of money and also to obtain a controlling interest in a business activity in the US. It is also a renewable visa.
  • EB-5: This type of visa getting program is offered for those persons from foreign land that who are in the action of investing minimum $ 1million in a commercial enterprise and employing at most 10 full time U.S employees.

For more detailed information about each type of visa, you can contact an immigration attorney in your region.

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Will I Get to Keep My Investment Property if I File for Chapter 13 Bankruptcy?

By stonehavenlaw on January 9, 2012 in ,

The answer to this question will make more sense if you understand the goal of a chapter 13 bankruptcy. The goal of a chapter 13 bankruptcy is to allow the discharge of your debts after you have completed a plan that pledges all of your disposable monthly income towards the repayment of creditors.

If maintaining the investment property does not cause you to use money from your own pocket, then you will likely be able to keep the investment property. An example of this situation is as follows: Tenants reside in your investment property and pay you enough monthly rent to cover all of the investment property’s monthly expenses. In such a scenario, you are not using any of your own disposable monthly income to maintain the investment property, and you will be more likely to retain the property in your chapter 13 bankruptcy.

If, on the other hand, the expense of maintaining an investment property requires the use of some your own disposable income, your chapter 13 trustee will not consider that an appropriate expense in your chapter 13 plan.

This reasoning applies to any “luxury” items, such as financing extra vehicles, jewelry, and the like. It is important to consult with a bankruptcy attorney to have a better understanding of which property you will most likely be able to continue making payments towards while you are in chapter 13 bankruptcy.

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Will I Be Able to Keep My House if I File for Chapter 13 Bankruptcy?

By stonehavenlaw on January 7, 2012 in , ,

Chapter 13 does not usually involve the selling of assets, so if you are current on your mortgage payments, you will be able to keep your house so long as it is your primary residence. (To find out your options in regards to keeping an investment property, read “Will I Get to Keep My Investment Property if I File for Chapter 13 Bankruptcy?”.)

If you are behind on your mortgage payments, filing chapter 13 bankruptcy can help you keep your property. The reason for this is, chapter 13 bankruptcy allows you to catch up on mortgage arrears through a repayment plan. You will be required to make payments on your past due mortgage for up to five years. Depending on how far behind you are on your mortgage payments, this can make “saving your property” much more manageable than paying your mortgage lender a large lump sum of money prior to an upcoming foreclosure date. If this is your first bankruptcy filing, your foreclosure sale date will be postponed indefinitely until you have completed your chapter 13 bankruptcy. Once your chapter 13 plan is completed, you should be current on your mortgage and no longer at risk of foreclosure. One important factor to keep in mind is, you must make all mortgage payments on time in addition to making your monthly chapter 13 payment after your bankruptcy has begun.

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Will I Get to Keep My House if I File for Chapter 7 Bankruptcy?

By stonehavenlaw on January 3, 2012 in , ,

Since chapter 7 bankruptcy is known as the “liquidation” chapter, many individuals fear they will lose their house if they file for chapter 7 bankruptcy. Due to the current housing market, however, most individuals do not have to worry about losing their home simply because a large number of houses currently have no equity in them. If the balance of your home loans is greater than the current fair market value of your house, then the bankruptcy estate will gain nothing from selling your house, and you will get to keep it (provided you are current on your mortgage payments).

If the balance of your home loans is less than the fair market value of your house, then your house does have equity in it. The California exemption code for a chapter 7 bankruptcy will protect up to $100,000 worth of equity (if you are married) and up to $75,000 worth of equity in a primary residence (not investment property) if you are single. (Please note: These numbers are subject to change.)This means, that if you can prove that the equity in your home is less than the exempted figures, the bankruptcy estate will gain nothing from selling your house, and you will get to keep it (provided you are current on your mortgage payments.)

If there is equity in your house above the values that can be protected under the bankruptcy code, then the trustee administering your case has the authority to sell the property and disperse the non-exempt portion of funds received among your creditors. Often times, the person who filed for bankruptcy has the option to buy back the property from the trustee instead (Filing Bankruptcy). (This would require paying the same amount of lump sum money that the trustee would receive if the trustee sells your property to a third party.)

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Do I have to appear in court if I file for bankruptcy?

By stonehavenlaw on December 31, 2011 in , , , ,

Each person who files for bankruptcy must appear at a “341(a) hearing”.  Typically, the 341(a) hearing is held in a meeting room (which is less formal than an actual Judge’s courtroom.)  You must bring proof of your social security number as well as some form of government ID along with you.

The purpose of the 341(a) hearing is to give the bankruptcy trustee the opportunity to question you under oath.

If you are filing under chapter 7, the trustee’s questions will relate primarily to your assets. Their job is to be certain you disclosed everything you own in your bankruptcy petition, and to determine if any of your assets can be sold and used to pay some of your creditors.

If you are filing under chapter 13, the trustee’s questions will primarily relate to your income and expenses. It is the the trustee’s job to make certain you have proposed a proper chapter 13 plan payment amount. Chapter 13 cases also have confirmation hearings. Confirmation hearings are held in a courtroom, and they are held before a US Bankruptcy judge. In most cases, debtors do not need to appear at the confirmation hearings (but the attorneys usually do). Appearance at the chapter 13 confirmation hearing depends in large part upon what your particular judge and trustee prefer.

If you retained a bankruptcy attorney to handle your case, your attorney should appear with you.

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How long will it take me to rebuild my credit after I file for bankruptcy?

By stonehavenlaw on December 28, 2011 in ,

Unfortunately, there is no law that determines how long it will take every individual to rebuild their credit. The actual word “bankruptcy” will remain on a person’s credit report for ten years. (That is the same whether you file chapter 7 or chapter 13 bankruptcy.) However, the speed with which you rebuild your credit after filing bankruptcy is completely up to you.

Some individuals rebuild their credit quickly, and for others, it takes a longer period of time to bring their credit score. The time it takes to rebuild a person’s credit is up to each individual’s spending and repayment habits. The good news is, if you are concerned about rebuilding your credit before filing for bankruptcy, you will most likely be amongst those individuals who will actually rebuild their credit at a faster pace after bankruptcy. The pace at which you bring your credit score back up is up to you.

In most cases, once a person’s debts are discharged through bankruptcy, they begin receiving a large number of credit card offers. Making payments on debts can help you rebuild your credit.  Just be careful not to enter into an agreement that may set you back financially all over again.

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How do I know if I qualify for chapter 13 bankruptcy?

By stonehavenlaw on December 24, 2011 in ,

If you are considering bankruptcy, it is a good idea to consult with an attorney to determine what your options are. Your attorney will ask you for the information necessary to determine which chapter you are eligible for.

To qualify for chapter 13 bankruptcy, you must first be able to prove to the court that you have a steady source of income. Your income should be enough to cover your household’s necessary expenses with some money left over to propose a chapter 13 plan payment. The length of your chapter 13 plan depends, in part, on what your income is.

Additionally, a person filing for chapter 13 bankruptcy cannot have debt over the debt limits as of the date of their bankruptcy filing. At the current time, the secured debt limit is $1,081,400, and the unsecured debt limit is $360,475. (These amounts are subject to change.)

Another requirement for having your chapter 13 plan confirmed is that your chapter 13 plan must be a feasible one. This means that you must be able to show the bankruptcy court that you have enough income to cover your minimum mandatory plan payment. The minimum mandatory plan payment amount differs in every case. That is why it is very important that you seek the assistance of an experienced chapter 13 bankruptcy attorney. Your attorney should have a good idea, based on your income/expenses/and types of debts, whether or not your plan will be a feasible one.  Be sure to accurately state your debt amounts to the bankruptcy attorney when you attend your free consultation.

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How do I know if I qualify for a chapter 7 bankruptcy?

By stonehavenlaw on December 20, 2011 in ,

If you are considering bankruptcy, it is a good idea to consult with a bankruptcy attorney to determine what your options are. Your attorney will ask you for the information necessary to determine which chapter you are eligible for.

Before you meet with an attorney, however, it is good to have an understanding of some things that are required for filing chapter 7 bankruptcy. First of all, chapter 7 bankruptcy is known as the “liquidation” of assets chapter. In a chapter 7 bankruptcy, all of your assets must be disclosed in your bankruptcy petition. Any assets whose value is not exempted will be sold and used to pay off your creditors. So when you consult with a bankruptcy attorney, be sure to tell the attorney what valuable assets you have to find out if those assets will be protected in a chapter 7.

Second, in order to file chapter 7 bankruptcy, you must qualify based on your income. If your household makes equal to or less than the average California household of your size, you will qualify for chapter 7. If your household makes more than the average California household of your size, then you will have to pass the means test in order to qualify for a chapter 7. When you consult with a bankruptcy attorney either take your most recent paycheck with you (that shows your Year to Date earnings) or any other type of proof of income that you have.

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