According to RealtyTrac, on online marketplace for foreclosed properties, a total of 925,986 houses were at some point in the foreclosure process during the first six months of 2007. This was a 55% increase compared to the same time period in 2006. That equates to one foreclosure for every 134 households during the first half of the year.
James J. Saccacio, CEO of RealtyTrac predicts that at this rate, foreclosures could easily surpass 2 million filings by the end of the year! This would be a 65% increase over 2006. The states with the largest foreclosure rates are Nevada, Colorado, Michigan, Florida, Ohio, Georgia, Arizona, Connecticut and Indiana.
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October 8th, 2007 at 7:24 am
How many will there be the year after that?
November 21st, 2007 at 2:22 am
My daughter is in the middle of the foreclosure process. Her lender, Fremont, has been of no help in negotiating her ARM. They have filed and tell her that she has “run up $10,000 in attorney fees”! How is this possible?
November 30th, 2007 at 3:54 am
Can you add a student loan/grant to a chapter 7 bankruptcy? also can you add a line of credit that is with the same bank that I have my mortgage loan with? Do you believe that the bank would call my entire loan due if I was able to add this line of credit to my chapter 7 filing.
December 3rd, 2007 at 5:49 pm
Why would a borrower continue to pay a mortgage on a property that is under water and sinking due to home values crashing. I believe this is the number one reason for defaults rather then the rates. Also lost income from layoffs and corporate downsizing is a signifant reason for defaults.
Do you agree?
December 12th, 2007 at 11:49 am
Aaron - I don’t know. From the analysts I have heard, they think the housing mess will take a couple of years to run its course.
Gramma - Believe it! Mortgage company attorneys aren’t cheap. I can’t comment on whether or not $10,000 is reasonable, but I have handled a lot of cases where mortgage company claims are much higher than anticipated because of alleged fees and costs. $10,000 seems high, though.
Brian - Student loans/grants are generally not discharged in bankruptcy. The debtor must file an adversary proceeding in bankruptcy court and litigate the issue of undue hardship. Undue hardship is difficult to prove, though success varies depending on where you live.
December 19th, 2007 at 11:39 pm
Can bankruptcy be used to get out of homeownership rather than try and save the home?
January 15th, 2008 at 10:27 am
I am in the middle of a Foreclosure for a home in Fla and have been summoned to appear I now live in Tx. I no longer am able to keep the home. I am wanting to file Bankruptcy. Will I have to appear in Fla. court and if they do sell can the Deficit be taken care of w/ Bankruptcy?
February 2nd, 2008 at 12:42 pm
CBS News this a.m. said that there were 1.3 million foreclosures in 2007,up 75% from the previous year. There is a great lack of information out there about the whole area of foreclosure and bankruptcy, so everything that can be shared by blogs like this is a help.
I will be starting a blog on personal experiences people are having with foreclosure at http://www.foreclosurefromtheinsideout.com. Not up yet, but will be very soon. Will look forward to visitors sharing comments of their experiences.
February 27th, 2008 at 8:30 pm
Robert - Yes! Bankruptcy can eliminate your obligation to pay anything to the mortgage company. The mortgage company will foreclose and recover most of its money, but it will not be able to pursue you for any deficiency balance if you file for bankruptcy.
February 27th, 2008 at 8:31 pm
Nicole - See my response to Robert.
March 5th, 2008 at 6:43 pm
My husband & I have an investment property that we stop making payments on since Oct. 07. It’s in the foreclosure process now. We have a primary residence. Also, my parents’ house is under my name & my brother’s names. Can the bank go after our primary and the property that is under my name & my brothers?
Thanks!
March 10th, 2008 at 6:48 pm
In CA, Chapter 7. who pays the delinquent taxes on a house that’s under bankruptcy or foreclosure? since the lender is taking back the house either ways are they (the lenders) going to pay for the delinquent taxes and unpaid HOA liens? Pls. help.
Also how much does bankruptcy lawyers charge? How are the lenders going to charge me attorney fees when I can’t even pay for the house and property taxes? How are they going to get that money? Are they going to take me to a court battle for it?
March 10th, 2008 at 6:52 pm
Is the bank on a Calif Chap 7 going to take away all the money in my savings account? that what concerns me about filing for bakruptcy vs. foreclosing. That money is all I have to survive since I don’t earn enough as a single mom to support my 2 kids. What will the court actually demand for me to give up so that my $70k credit card debt will be discharged?
March 10th, 2008 at 7:04 pm
At what point of the foreclosure process can I still file for bankruptcy? If I already got the NOD, is it too late to file for bankruptcy?
If I file for liquidation bankruptcy though will the mortgage discharge not show as a foreclosure? If so, will it even be listed as discharged mortgage in my c redit report?
I’m asking becoz if i apply for bankruptcy during the foreclose and the mortgage gets discharged still shows as a foreclosure, then I’ll have double whammy of having both a bankruptcy and foreclosure in my credit report, instead of just foreclosure.
I nee to make a decision. The answer to this question will help me make decision quickly. I’m only one month default but I don’t foresee being able to pay it.
April 28th, 2008 at 6:03 am
Out of work and loaded with debt. I am considering bankruptcy and wondered whether or not a sign-on bonus in the form of a promissary note I signed with an old employer can be added if I haven’t yet received a judgement?
2nd question is can a casino credit marker owed be added prior to any judgment?
Thanks,
JP
May 9th, 2008 at 10:56 pm
I bought a home because i had good credit..had being the key word..and was to be a silent partner anyway..that fell through..it went into foreclosure the other deal has gotten me nowhere and i was out of work for 6 months using credit cards to survive…I am a single mother of 4 kids, their dad is not alive it is just me, so am contiplating if i should file bancruptcy and start over. I have a good job now, but am just barely able to put food on table..I do have a house i kept up on mortgage so far with..but afraid i am going to get behind with all the bills, and with my partnership leaving me with nothing but bills. I probably am about 25000 in debt and also have a school loan of 7ooo. I am thinking to start over because it will take me awhile to get my credit back to what it was., and with that forecloser and short sell on the house..which we just did..i am not sure how long that will stay on my record..any advice ?
May 11th, 2008 at 12:09 am
Cristina - Whoever owns the property would be responsible to pay the real estate taxes. Generally, in a foreclosure sale any outstanding real estate taxes would be satisfied by the proceeds before any money was paid to anyone, including the mortgage company. So, there shouldn’t be any remaining real estate tax obligations once the property is sold at a foreclosure sale.
May 11th, 2008 at 12:09 am
Sandy - Any negative credit situation can stay on your report for up to 7 years. Bankruptcy can be reported for 10.
May 11th, 2008 at 12:12 am
John - You should include ALL debt in your bankruptcy case. Of course, not ALL debt is discharged, but all debt must be disclosed. The issue with the ex-employer is tricky and you should bring all your paperwork regarding that to an experienced attorney for review and to get an opinion regarding dischargeability.
Same with the casino markers, though usually those are viewed as checks that were insufficient funds and in most places that is tantamount to fraud and likely not discharged. But, the creditor would have an obligation to take action to get a court order holding the debt non-dischargeable and if the creditor doesn’t take that action, the debt would be discharged.
May 11th, 2008 at 12:13 am
Cristina - Regarding all of your very valid questions, my best advice is to give us a call and let’s talk about them!
May 14th, 2008 at 6:27 pm
I am so behind in all my bills and so many things have went on my credit. I can’t even finish my last couple of classes to get my second masters degree due to me having high student loan debt for going to private colleges and I have reach my loan amount, I have a house, the taxes are behind and I am unable to get caught up and pay the mortage which will go up in August by 200 dollars not including taxes and insurance. I am considering filing bankruptcy, should I. I need a car Im not able without a co-signer, Help me please need advise.
May 15th, 2008 at 7:51 am
thank you , I do believe that i will need to start over..even my credit cards are writing to me although i have kept up on all bills..they are writing to me and decreasing my lines of credit. I had a card for 9000 and now they decreased it to 5. So obviously my credit is really falling now with the bad choice i made to invest..lol..the first time i decide to invest…this is what happens…should have stayed with my conservative side. I have as i said paid everything, except the investment house , which the partner was supposed to take care of.
May 30th, 2008 at 5:19 pm
I filed bankruptcy and added my house to it. The bankruptcy went through, now the house is in foreclosure. My question is, since I added the house to the bankruptcy before the foreclosure was started am i still protected from being charged.
June 21st, 2008 at 3:14 pm
My husband and I filed bankruptcy in 1999 and it was discharged in the same year, we are both in the Real Estate industry and have been hit very hard. Would we be able to file for bankruptcy again…like right now?
June 30th, 2008 at 11:24 am
David - yes, your bankruptcy discharge should relieve you of any debt related to the mortgage, provided you did not reaffirm the debt by signing a new agreement during the bankruptcy case.
Mary - The rule is 8 years, so since it is now 2008 and that has been more than 8 years since you last filed (I’m assuming it was a chapter 7) you are eligible right now to file another bankruptcy case.
July 14th, 2008 at 5:25 pm
Is there any way to prevent having to pay 1099 from foreclosure or short sale? Someone told me you can if you are eligible to claim “insolvency”. What is insolvency and the conditions involved?
Is there any way I can claim the debt/income from rental properties even if loan is in my son’s name? I am the 100% responsible party for these houses paying for all their payments, repairs, remodeling, & managing needed , my son was never interested in these properties, and now I’m having a hard time making payments on them. I will be filing a BK soon and have many bad RE investments from the economy change.
When they do the income check for Chap 7 qualifying does that include 1099 income from houses sold within the year or is is only last 6 month pay stubs/income from house sales,etc ? (If I sold a house 7 months ago - do they include that in my income to determine if Chap 7 eligible?) How far back does trustee search into income of Chap 7 filer?
July 28th, 2008 at 2:09 am
My home recently was foreclosed on. It went back to the bank in May, however they have not sold it yet. Will I be responsible for the difference of what they claim I owe (mortgage plus all the fees) and what they eventually sell the house for? If I am responsible for the deficit, does filing bankruptcy relieve it? I ask because I was told that the deficit would actually be a judgement and judgements can not be included in a chapter 7. Is it true that is is a judgement and is it true that all judgements can not be included in a chapter 7? Thanks for your help.
July 31st, 2008 at 8:37 pm
I am way behind on bills and in debt, I am considering filing bankruptcy. If I have a car for my self that is in my name and I also have a car that I am a cosigner on for a friend, how will that work? Will I only be allowed to keep one car and my friend will have to refinance??
July 31st, 2008 at 8:40 pm
If I have a credit card from a furniture store and I will be filing bancruptcy, will I have to give back the furniture or will the whole debt be discharged? P.S I am in Arizona
August 13th, 2008 at 9:27 am
Is there a process where a person can go to the bank and have the value of the house re-assesed and the home loan amount readjusted to reflect that amount. We have excellent credit and are not behind, but we are hanging on barely. Our house is no longer worth the same amount we purchased it for in 2005, and we will loose it, as we are unable to sell and have other financial problems due to employment moves.
August 14th, 2008 at 12:18 am
Vicki M - I am not a tax expert, but bankruptcy is an exception to the IRS rule that says “forgiven” debt is taxable income to the debtor. Thus, bankruptcy is not only a way to eliminate the debt owed to the mortgage company, but could also be effective in establishing insolvency which would protect you from having to report the balance as income.
However, there could still be capital gains tax issues, so you should certainly talk to a tax professional about all the specifics.
August 14th, 2008 at 12:20 am
Annie - Yes, bankruptcy would eliminate your debt to the mortgage company. Bankruptcy can eliminate obligations to pay judgments too, whether foreclosure judgment or any other type of judgment. Keep in mind that the judgment is public record and can still be reported on credit histories, but the bankruptcy is eliminating the obligation to pay money to satisfy the debt.
August 14th, 2008 at 12:23 am
Alexandra - The bankruptcy will not force anyone to refinance anything. Bankruptcy simply eliminates your obligation to pay. If the co-signor wants to keep the car, the co-signor will still be obligated to make the payments, of course.
As far as furniture debt, technically the finance company has repossession rights to take back the furniture. However, my experience is that most finance companies won’t spend the money to obtain a judgment and pay a truck and movers to come and pick up used furniture because used furniture depreciates pretty rapidly.
August 14th, 2008 at 1:11 am
Cheryl - With the recent passage of legislation, it certainly could be worth a phone call or two to see what the mortgage company is now able to do for you. Historically, the chances of renegotiating with the mortgage company for a lower balance have been zero. Maybe a refinancing might help since you’re still current (though I suspect the employment issues may adversely affect your ability to do this)?