Legal Question in Bankruptcy in New York

Re: forecloser

You would have to file a Chapter 13 Bankruptcy to save your house immediately.

Re: forecloser

I am sorry to hear that your house is being put up for auction 8/28. You are not alone. Many people in New York, Bronx, Queens, Brooklyn, Staten Island and Nassau and Suffolk Counties are in danger of losing their homes through foreclosure these days.

Unfortunately, you would have had more options earlier in the process before the lender obtained a judgment of foreclosure. For others reading this posting it is always a good idea to file an answer to a foreclosure complaint to prevent the lender from getting a default judgment. There are some state programs to try to assist people faced with foreclosure. I would suggest consulting the office of your local congressman or state senator for more info.

If you want to keep the house a key issue is whether you can afford the current monthly payment. Another issue is whether you have any equity in the house or are �upside down� (loans exceed current fair market value of the house).

In chapter 13 bankruptcy you have the ability to cure arrears (past due portion) of the mortgage over time through a chapter 13 plan -- even if there is a foreclosure judgment as long as sale has not yet occurred. However, you have to pay current mortgage payments as they come due. You can file chapter 13 and still try to pursue a settlement/workout/loss mitigation program with the lender at the same time, but most lenders will require that you dismiss your bankruptcy case before they will finalize any deal.

Chapter 13 is too complicated to explain in a brief posting. See the consumer bankruptcy Frequently Asked Questions (FAQs) on our website at www.starrandstarr.com and the following post on our Blog about Chapter 13:

http://www.starrandstarr.com/blog/2008/07/21/nychapter-13-bankruptcy-issues/

for further info.

Best regards,