B is for Bailed out Banks The Treasury Department has invested about $200 billion in hundreds of banks through its Capital Purchase Program in an effort to revitalize the banking industry and support new lending. In return, the banking industry has reciprocated the generousity of the American tax payer by modifiying the mortgage loans of home owners in financial distress. Nope… The Banking industry has made a calculated decision to force homes into foreclosure because it is more profitable for Banks to allow a home to foreclose than to help out a financially distressed home owner. Why are bank’s unwilling
YOU CAN DO NOTHING which will result in the judge issuing a judgement against the debtor. A judgment against the debtor for failing to answer the foreclosure lawsuit is also called a default judgment. Once a bank (mortgage company) obtains a default judgment, the next step in the foreclosure process is to schedule a sheriff sale and sell the property. If the homeowner does nothing, the foreclosure process takes about three and a half months from start to finish. OR YOU CAN CONTEST THE FORECLOSURE COMPLAINT which will result in the the foreclosure proceeding been permanently derailed or significantly delayed.
Chapter 7 and Chapter 13 are two different kinds of bankruptcies available to individuals, some businesses, and married couples with financial problems. A straight liquidation bankruptcy, known as a Chapter 7 bankruptcy, involves the filing of a bankruptcy petition and statement of all property, debts, and budget information. The filing of the petition stops all creditor action against the Chapter 7 debtors and their property, including mortgage foreclosure, sheriffs sale, utility shut-offs, and other creditor harassment. Chapter 7 debtors can generally keep all their personal property, but debtors can keep their home and cars only if arrangements are made separately