Certified Bankruptcy Real Estate Broker

Homeowner’s Smart Options Chapter 7 Bankruptcy Things to consider during and after filing for Bankruptcy

Options for a Better Outcome in Bankruptcy

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* This document is to provide information only and does not provide legal advice. For legal advice contact an attorney.

Homeowner’s Best Options The purpose of this information is to help homeowners understand their rights and options in bankruptcy and to offer assistance if needed to ensure the best outcome and a “Fresh Start”.

Options for a Better Outcome in Bankruptcy

Visit us at www.bkginc.com

* This document is to provide information only and does not provide legal advice. For legal advice contact an attorney.

What happens to my home in bankruptcy?

The homeowner files bankruptcy and choses one of the following options.

Options for a Better Outcome in Bankruptcy

Visit us at www.bkginc.com

RETAIN HOME

SURRENDER HOME

This is when the homeowner works out a deal with the mortgage servicer.

This is when the homeowner elects to sell their home and get a “Fresh-Start�.

* This document is to provide information only and does not provide legal advice. For legal advice contact an attorney.

RETAIN What do I need to do to retain my home in bankruptcy?

Must bring the home loan current or Qualify for a loan modification

To qualify you must have income to cover a debt-to-income ratio of 43% or less.

Options for a Better Outcome in Bankruptcy

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* This document is to provide information only and does not provide legal advice. For legal advice contact an attorney.

What if I do not qualify for modification?

RETAIN

What happens if the homeowner doesn’t meet these requirements to retain?

If you choose not to sell the property the mortgage servicer will pursue foreclosure.

Is the homeowner responsible for the debt?

Bankruptcy relieves the homeowner from personal liability on the loan however they are still responsible for satisfying the mortgage.

Should the homeowner avoid foreclosure?

Avoiding foreclosure is the smartest and best option for a homeowner. Foreclosure makes it very difficult to get a fresh start. One misconception is that a foreclosure after bankruptcy will not affect your credit score however it does remain on your credit history for more than 7 years restricting you from obtaining a new mortgage and most new lines.

Options for a Better Outcome in Bankruptcy

Visit us at www.bkginc.com

Future * This document is to provide information only and does not provide legal advice. For legal advice contact an attorney.

RETAIN

How do I avoid Foreclosure?

Homeowner’s right to sell in or after bankruptcy You have the right to sell you home and avoid foreclosure. This offers the best long term outcome in getting a fresh start.

What if I owe more than the home is worth?

In bankruptcy lenders are eager to work with you to sell the home.

It is the best option for you and for them.

What if I cannot afford to move?

In most cases lenders will offer relocation assistance. This is something your real estate agent can request as part of your settlement in selling your home.

What if I need time to relocate?

Selling your home takes time and closing can be scheduled later to accommodate individual situations.

Options for a Better Outcome in Bankruptcy

Visit us at www.bkginc.com

* This document is to provide information only and does not provide legal advice. For legal advice contact an attorney.

SURRENDERED

What happens if I surrender my home?

The intent of surrendering Homeowners typically surrender their home with the intent of freeing themself from debt and obligation hoping to get a “Fresh Start� in life.

What happens when I surrender When you surrender the Trustee has the right to sell your home for you and settle the mortgage obligation. However, in most cases the Trustee will abandon your home from bankruptcy pushing that responsibility back on you and the burden of foreclosure litigation.

Options for a Better Outcome in Bankruptcy

Visit us at www.bkginc.com

* This document is to provide information only and does not provide legal advice. For legal advice contact an attorney.

SURRENDERED

If your home is abandoned by the Trustee Selling is your best option!

When your home is abandoned by the Trustee the lender then has the right to continue foreclosure litigation. Selling your home and working with the lender is your best option. By doing this you can have a graceful exit , avoid eviction and potentially receive a moving allowance. Most importantly, you avoid foreclosure litigation which has a serious impact on your credit. Even if you have been behind on your payments, selling is far better outcome than foreclosure. Selling your home will offer you a “Fresh Start� enabling you to re-establish credit in 18 - 24 months. This means you will have the option to buy a new home!

Options for a Better Outcome in Bankruptcy

Visit us at www.bkginc.com

* This document is to provide information only and does not provide legal advice. For legal advice contact an attorney.

BENEFITS OF SELLING!

Avoid Foreclosure!

Graceful Exit!

Get Moving Money!

Preserve Credit!

Buy New Home!

Get “Fresh Start”!

Options for a Better Outcome in Bankruptcy

Visit us at www.bkginc.com

* This document is to provide information only and does not provide legal advice. For legal advice contact an attorney.