Tampa Bay Foreclosure Lawyer 813-222-8210
Stop Foreclosure and Garnishment
At the Galewski Law Group, P.A. we have extensive experience in helping people stop foreclosure, file for bankruptcy and otherwise workout and restructure their debt. If you are facing foreclosure, do not take a risk with your investment, call and ask how we can stop the foreclosure or help you file bankruptcy. We are a debt relief agency, our foreclosure attorneys and bankruptcy lawyers help people file for relief under the Bankruptcy Code. Almost everyday we have a family contact us and to save their home after waiting months into a foreclosure or they have filed an answer because their friends told them to file one. If you are in foreclosure you should contact an attorney immediately.
If that consultation does not start with a serious discussion about 1, what you want to accomplish with the home (save the home, walk away, short sale or modification) and 2, a discussion on how you are realistically going to accomplish that goal, you should seek further assistance. Often people are mislead that they can live years free in a home and then do a modification and short sale. This may be true, but also some banks, mortgage investors and other servicing companies may also limit the amount of time you can be behind on a mortgage before you do a modification or a short sale. Some mortgage servicing companies will not allow you any work out options,loss mitigation, modification or short sale if you are 12 or 24 months behind or more. These companies attempt to only work with people that have a short term hardship. If you do not get information at the start of the process it may be too late and bankruptcy may be your only option. Before you commit to a strategy call for a free mortgage analysis and let us help find what foreclosure defense strategy is best for you.
With the New Legislative session approaching, Your Tampa Foreclosure Attorney will soon be reaching out to local Florida congressmen about the foreclosure process impacts Tampa homeowners. For Florida we will discuss the foreclosure process and the state requirements to prove the bank has done acted properly. On the Federal level your Tampa Foreclosure Defense Lawyer will request better mortgage modification rules, and added benefits in Chapter 7 and Chapter 13 Bankruptcy. Your Tampa bankruptcy lawyer may some day be able to change the value of your homestead mortgage in a chapter 7 or 13. With the recent change in politics in DC, the one thing that both sides may agree on is helping people save their home. Currently only a chapter 11 can change a home mortgage value, but it is expected that Congress will find a way to modify Chapter 13 to allow people to reduce principal due on their mortgage. Note that as of now Congress has made it so homestead mortgages are specifically exempted from modification of value under the Bankruptcy Code. That is that Congress has allowed people to use Bankruptcy to reduce the amount owed on a mortgage for investment or rental property to the value of the property, but has added a line in the Bankruptcy Code right after this provision stating that it cannot be done for homestead property. We help lobby to remedy this provision, but so far Congress seems to be following the direction of mortgage companies and not families.
QUESTION OF THE WEEK:
I am surrendering a home to a mortgage lender to help consolidate my debt, may I still collect rent on the home, and does this change after filing a chapter 7?
If you have rental income from property but are planning on surrendering the property to the mortgage lender, either in bankruptcy or foreclosure, the rental income may belong to the mortgage lender. Please refer to your mortgage and note for details; often rental income is assigned as part of the mortgage. If you were to file a chapter 7 or 13 bankruptcy, you may still not be able to keep the rental income. In a chapter 7 bankruptcy, the bankruptcy estate would own the rental property and they would be the proper party to collect the rent. Even if the rent is paid to you, you may be required to turn over the rent to the bankruptcy trustee. If you file a chapter 13 or reorganization, the rental income may be used in calculating your income for purpose of determining your discretionary income and ultimately your chapter 13 plan payments. There are limitations to the income and asset turnover rule, and each bankruptcy judge or trustee may have their own rules or style that may impact the assets that you keep and how property is treated — please contact a bankruptcy lawyer to discuss these and other important matters early in the bankruptcy, mortgage modification or short sale process.
I am up-side-down or have negative equity in my home, can bankruptcy help me?
If you owe more than your house is worth, you typically have three options: pay for the house the home value increases, return the home to the bank or sell the home. If you sell the home, a Tampa bankruptcy attorney may help you to negotiate a short sale with the bank, so you do not need to bring money to sell. If you decide to give the house to the bank, this may be done, with or with out a bankruptcy. If you do not file a bankruptcy the Court may grant the bank a deficiency judgment against you for the difference between the sale price and the amount owed. The bank may attempt to collect the difference from your personally or may file a 1098/1099 with the IRS, and treat the deficiency amount as earned income. You would then be personally liable for the difference as if it were earned income from that tax year. A bankruptcy or reorganization may save you from the deficiency judgment and the 1099 taxable gain. Call your Tampa bankruptcy lawyer for more information. Click here to learn more about personal bankruptcy as an option to loss of assets in garnishment or foreclosure Did you know:M
Tampa Bankruptcy Attorney – There is life after bankruptcy
There is life after bankruptcy. There is good credit, new credit cards and lines of credit, home loans and car loans after bankruptcy. Generally, credit reporting bureaus use three factors to create 90 percent of your score.
your immediate payment history, your debt to credit limit and your debt to income ratio. The remaining ten percent of your score comes from smaller items such as having to many inquiries in a 6 month period.
Most people on the eve of bankruptcy do not have the greatest immediate payment history. Filing a bankruptcy can help improve this area over time. Instantly it is another bad mark, but that mark begins to age almost immediately and is almost a non issue in 12-24 months. Without the bankruptcy you will keep having other bad marks hit your score until you get your credit under control.
Your Debt to credit limit ratio is the amount that you owe compared to what you could possibly owe. Anything over 20% is bad. That is if you have $10,000 of total available credit card space and you owe more than $2,000 you are hurting your credit score. Most people, even those not considering a bankruptcy, seem to be above this mark. After a bankruptcy you will have no credit card debt and this will be a positive mark on your credit score.
Your debt to income ratio is the amount that you owe compared to what you make. Again anything over 20% is not good. That is if you make $100,000 per year but owe more than $20,000 you are hurting your score. Again most people, even those not considering bankruptcy are past this point today. Most people considering bankruptcy are over 25%. After a bankruptcy there would be no debt and this would be a positive factor in your score.
For these reasons and other most clients report that they are in the 650-720 range within 12 months of a chapter 7. FHA used to allow people to refinance out of a chapter 13 after 12 payments into the plan. Due to the market crash FHA now requires you to be 24 months removed from the bankruptcy for a loan. Other loans are available often at less then 9.9% for new homes. Credit cards will send you unsolicited offers and car dealers will often give you loans the day after a chapter 7 discharge.
The Galewski Law Group provides Accident, Insurance Claim, Injury, Chapter 7, Chapter 11 and Chapter 13 bankruptcy, foreclosure defense, mortgage modification, Divorce, and Personal Injury representation to clients throughout the Tampa Bay Area including Hillsborough, Pinellas, Manatee, Pasco, Polk, Sarasota and Hardee County and in cities that include Tampa, Clearwater, Dover, Seffner, Tarpon Springs, St. Petersburg, Palm Harbor, Dunedin, Safety Harbor, Lutz, Holiday,, Oldsmar, Sarasota, Crystal Beach, Bradenton, Lakeland, Brandon, Plant City, New Port Richey, Trinity, Spring Hill, Port Richey, Largo, Seminole, Pinellas Park, and Bartow.
412 E. Madison Street * Suite 1106 * Tampa, FL 33602 * Stan “The Man” Galewski * www.Galewski.com * 813-222-8210