Overview of Judicial Foreclosure
What is a Judicial Foreclosure?
According to Investopedia, a foreclosure is the legal process by which a lender attempts to recover the amount owed on a defaulted loan by taking ownership of the mortgaged property and selling it. Typically, default is triggered when a borrower misses a specific number of monthly payments, but it can also happen when the borrower fails to meet other terms in the mortgage document.
- Foreclosure is a legal process that allows lenders to recover the amount owed on a defaulted loan by taking ownership of and selling the mortgaged property.
- State law in the area where the real estate is located governs the foreclosure procedure. While some lenders may cooperate with borrowers, it is never a good idea to rely on their assurances. Make sure that you have written records of all communications. Send a confirmation of the details of the chat if it is a phone conversation. Include the time, date, person you spoke with, and details of what was said. Maintain a regular record and copies of all correspondence.
- The judicial foreclosure often takes six to twelve months to complete, sometimes even longer.
Homeowners: Never let a trustee’s sale, short sale, deed in lieu of foreclosure, or foreclosure proceed without first seeking legal and tax guidance.
Major errors made during the process cannot be corrected after it is over. As a result, disregard any advise given by a realtor, your neighbor, or a less-than-qualified attorney. Because this is your life and your future, you should always make educated decisions. I’ve seen hundreds of people deal with devastating outcomes that might have been prevented if they had just obtained professional legal and/or tax counsel. I’m not saying this to scare you. Instead, I’m saying it because I’ve watched people suffer with terrible consequences.
Beware of real estate scams
Numerous thousands of homeowners are the victims of frauds. Many prey on a particular community, such as the low-income or minorities, since they are unable to or afraid to seek legal advice. The best advice anyone can give is to never reply to someone who reaches you during a crisis and tries to “help,” as this is never a good idea. Always make contact with reputable businesses that have a history of offering top-notch services.
Here is just one example of such greed – “foreclosure rescue scheme and scams.“.
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Am I Eligible to File Bankruptcy in Arizona?
Chapter 7 Qualifications
The means test is the major qualification for Chapter 7 debtors. If your annual household income is less than the national average, you may be eligible for this type of bankruptcy. This figure is updated every few months.
If you do not qualify for Chapter 7, other options, such as Chapter 13 bankruptcy are usually available.
Chapter 13 Qualifications
In Chapter 13 cases have limits on the amount and type of debts. There is also a minimum income and expense requirement. Debtors in Chapter 13 must have enough disposable income to make a monthly plan payment.
The right to file Bankruptcy bankruptcy is Protected by the United States Constitutional.
As early as 1789, Congress was authorized by the US Constitution’s Art. 1, Section 8, Clause 4 to enact bankruptcy laws to assist all citizens in obtaining a fresh start. The first bankruptcy law was enacted in 1800. Clearly, this option has been viewed as an important tool for protecting our citizens. As a result, you should never feel obligated to apologize to me or anyone else for exercising your constitutional rights.