Sunday, December 29, 2013

Foreclosure Defense Strategies in Sacramento

Show me the note!

Many online bloggers instruct homeowners in default to adopt the "show me the note" defense when facing foreclosure.  In essence, the homeowner is supposed to demand that the lender produce the original promissory note to evidence their right to pursue foreclosure in the event of default.  As mortgages are bought, bundled, and sold in the secondary market this tactic is designed to exploit this vulnerability of securitization.  However, courts have routinely held that non-judicial foreclosure can proceed without the lender producing the original promissory note.  As a result, the "show me the note" defense has become something of a pipe-dream among buyers in default.

So, what's the answer?

File chapter 13 bankruptcy.

Chapter 13 bankruptcy is a powerful tool in foreclosure defense.  In chapter 13 bankruptcy you can force your lender to accept your repayment terms while you keep your home.  In brief, you will repay your late mortgage payments over several years, and in exchange you will get to keep your home.  

Friday, December 6, 2013

Wage Garnishment & Bankruptcy

Many people experiencing a wage garnishment turn to bankruptcy.  In short, bankruptcy can stop a wage garnishment and discharge the underlying debt.  In fact, once a bankruptcy petition is filed with the court the "automatic stay" prevents the continuation of a wage garnishment.  For example, if you have a wage garnishment effective on Monday, but file bankruptcy on Tuesday, you will not have a 25% deduction from your wages on Wednesday.  The relief provided by the automatic stay is often the motivating force for debtors to call a bankruptcy attorney.  However, waiting until a wage garnishment is active is often a sign that the debtor should have called a bankruptcy attorney earlier.  With advance planning a bankruptcy petition can be filed before a wage garnishment comes into existence, thereby protecting wages and making the entire bankruptcy process generally easier and less rushed.