STRATEGIC MORTGAGE DEFAULT IN A CHAPTER 7 BANKRUPTCY--
Walking away from your mortgages and home equity loans when you
file a chapter 7 bankruptcy
This article, for individuals considering filing a chapter 7 bankruptcy on Long Island,
was written by Long Island bankruptcy lawyer Alan Pressman
Many people owe more money on their mortgage(s) than their house is worth. This is
known as “negative equity” or being underwater”. Many homeowners are underwater
by a large amount of money, and cannot afford their mortgage payments. If such an
individual is eligible to file a Chapter 7 bankruptcy (and receives the Chapter 7
discharge), they have the option of a strategic mortgage default.
In a strategic mortgage default, you stop paying your mortgages and home equity
loans - - with the understanding that one of your mortgagees will, at some point,
start a foreclosure action and sell your house at a foreclosure sale. However, if you
have received a Chapter 7 discharge (your mortgagees and home equity loan creditors
get listed as creditors on your Chapter 7 bankruptcy schedules) - - your mortgagees
and home equity loan creditors cannot come after you for any money after the
foreclosure is over.
Also, keep in mind that if you are opting for a strategic mortgage default, you will be
able to live in your home for a long period of time without making any mortgage
payments.
On Long Island, as of 2011, it seems that most homeowners who have stopped making
their mortgage payments are able to remain in their homes for at least 1 - 2 years.
During that time period, the mortgagee will start the foreclosure action (by serving
you with a summons and complaint), and will proceed with the various steps involved
in the foreclosure action.
As the homeowner, you can remain in your home while the foreclosure action is going
on. During this time, no one from the bank is allowed to come into your house or go
on your premises.
Not paying the mortgages enables you to save up money which you can use (i.e. for
moving expenses, security deposit, initial rent, etc.) to get set up in your new
residence.
This article was written by Alan Pressman, Long Island bankruptcy attorney
If you would like a free consultation on Chapter 7 bankruptcy with Alan Pressman, call
(631) 234-3883. I have been actively handling bankruptcy cases on Long Island since
1981. My office is located at 1797 Veterans Highway, Islandia (1/4 mile southeast of
LIE exit 57-- across from the Islandia Shopping Center). I have been practicing law at
the same Islandia location for more than 28 years.
My fees are very reasonable.
Evening appointments are available.
I will handle your case personally.
My law practice is focused 100% on handling bankruptcy cases. Bankruptcy is my
entire law practice.
Call now for a free consultation.
(631) 234-3883
1797 Veterans Highway, Islandia -- Across from the Islandia Shopping Center;
Long Island Expressway Exit 57, 1/4 mile southeast
Thanks for taking the time to visit my website.
Copyright 2011, Alan Pressman Attorney At Law
Alan Pressman, chapter 7 bankruptcy lawyer near Rokonkoma,11779; Hauppauge,11788; Bohemia,11716;
Holbrook,11741; Islandia,11749; Central Islip,11722; Brentwood,11717; Islip, 11751; Islip Terrace, 11752;
Bay Shore,11706; East Islip,11730; West Islip,11795; Oakdale,11769; Sayville,11782; Blue Point,11715;
Lake Ronkonkoma,11779; Smithtown,11787; Nesconset,11767; Saint James,11780; Lake Grove,11755;
Deer Park,11729; Commack,11725; East Northport, 11731; Huntington Station,11746; Wheatley Heights,
11798; Wyandanch,11798; Babylon,11705; North Babylon,11703; West Babylon,11704; Kings Park,11754;
Centereach,11720; Holtsville,11742; Medford, 11763; Middle Island,11953; Stony Brook,11790; Coram,
11727;Port Jefferson Station,11776; Patchogue,11772; Brookhaven,11719; Manorville,11949; Yaphank,
11980; Farmingville,11738; Shirley,11967; Mastic,11950; Mastic Beach,11951; Bellport,11713; Center
Moriches,11934; etc. --
serving all of Long Island since 1981.
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