ADVICE TO HOMEOWNERS IN FORECLOSURE

August 24, 2009

Many homeowners currently in foreclosure have tried unsuccessfully to have their loans modified. The vast majority of loan modification firms are either scams or simply ineffective, which leaves few options for the unfortunate homeowner.

If you've tried all options and still face a foreclosure sale AND you're interested in staying in your home, I highly recommend that you file bankruptcy. It's our understanding that either Chapter 7 or 13 will allow for the following action. At the time you file, indicate to your attorney that you are interested in requesting the "loan stripping" option. This allows the presiding judge to nullify your existing mortgage(s) (including home equity loans) and to re-value the property based on current market values. A new 30-year fixed-rate mortgage will be structured by the Court and you will be able to save your home.

You should only employ this option if you are interested in staying in your home and can afford to pay the new mortgage payment. You can even file an "emergency" bankruptcy within a few days of the sale and, in most cases, the scheduled sale will be cancelled.

We are simply interested in giving homeowners an option that gets little attention, but provides significant relief and, importantly, sticks it to the lenders. These crooks have gotten away with grand larceny, insurance fraud and investment fraud on a monumental scale and deserve all the consequences that can be unloaded on them.