Should I File Bankruptcy or Defend My Foreclosure?

In this volatile real estate market and recession economy, many homeowners are faced with the difficult decision of choosing between filing a bankruptcy and defending a foreclosure. Unfortunately, the dominant thought among most attorneys is that bankruptcy is the proper remedy to address foreclosure. Our law firm handles both foreclosure defense and bankruptcy, so we have the benefit of seeing both sides of the coin.

For many individuals with extensive consumer debt or medical debt, as well as debt relating to real estate, bankruptcy is an option. (however, one should never forget the power of negotiating debts).

For those individuals who are mainly dealing with debt relating to their real estate holdings, it is often a poor decision to file a bankruptcy prior to defending a foreclosure.

For those individuals trying to save their homes or real property, a Chapter 7 bankruptcy will do little to save a home, except briefly delay a foreclosure case. In fact, Chapter 7 is designed to liquidate debt. For those individuals considering Chapter 13 bankruptcy, they will be met with an often difficult and lengthy repayment plan. Bankruptcy judges are not endowed with the authority to modify mortgages; therefore, Chapter 13 is often not helpful to homeowners.

A clearer way to protect a home is to pursue one of the many foreclosure alternatives including loan modification, reinstatement, or refinancing. Often these alternatives take time and may take skilled legal advice. While in the process of pursuing foreclosure alternatives, property owners may be sued for foreclosure. A skilled foreclosure attorney can help defend the foreclosure and advise borrowers regarding foreclosure alternatives.

Many people are not interested in saving their homes. Perhaps they have no equity or are upside down, where they owe far more than the property is worth. Perhaps they do not have the financial means to qualify for a loan modification, reinstatement, or refinancing. Or perhaps they are simply tired of the system- they are fed up with dealing with banks. Many people fear a deficiency judgment more than anything else. A deficiency judgment may arise where a borrower’s property sells at a foreclosure auction for less than the amount that is owed on the loan. In such a scenario, the borrower could be held responsible for the difference owed or the “deficiency” amount.

While the potential for a deficiency judgment is a valid fear for homeowners, there are tools and options that will avoid a deficiency without filing bankruptcy. First, the homeowner may enter into a short sale, where the bank approves the sale of a home for less than the amount owed. In a short sale, the bank forgives the difference owed and the borrower is relieved of any liability.

Another solution to avoid a deficiency judgment is a “deed in lieu of foreclosure.” In a deed in lieu scenario, the borrower turns the deed over to the lender in lieu of foreclosure; this means that the lender promises they will not file a foreclosure or seek a deficiency judgment against the borrower. A deed in lieu avoids a deficiency judgment, without the need to file bankruptcy.

Finally, for those individuals already facing a foreclosure lawsuit, a skilled lawyer should be able to defend foreclosure cases and negotiate a favorable “consent judgment.” In such a consent judgment, the borrower consents to the entry of a foreclosure judgment in exchange for the banks promise and guaranty to waive any deficiency against the borrower. Many of our clients want us to time the entry of such a consent judgment so that they are able to get the maximum time in their home. This arrangement affords our clients the maximum use of their property and also allows our clients the opportunity to pursue other options as they see fit, including loan modification or reinstatement. There is a great deal of value for those borrowers that choose to pursue a consent judgment- the borrower essentially walks away from the property without owing money to the lender, and without having to file a bankruptcy.

While not every homeowner may be able to pursue a loan modification, short sale, deed in lieu or consent judgment, these are excellent options to avoid debt and avoid filing a bankruptcy. Moreover, while borrowers pursue these options they are able to continue living at the property, or renting the property to tenants. This usually means that money is saved or money is earned. Finally, if these foreclosure options do not work out in the long run, bankruptcy is always a failsafe option- it can always be filed if everything else fails.

Protect Your Assets

2 Financial Planning Strategies to help protect your assets

Would you like more control of your finances? The first thing you'd need to do is to actually create a plan. And then, you need to keep your goals and purposes in mind as you invest. But that's just the beginning. Read on for two more of the six key elements you need to deal with before you can be assured you've covered the basics.

These two keys are absolutely essential, yet many people are reluctant to deal with them because doing so makes them uncomfortable. No one likes to think about dying, and no one likes to think about getting sued.

Yet the first one is unavoidable – we all will die, sooner or later. And when that happens, hopefully very far into the future, you'll want to make sure your assets will go to the people or causes of your choice, not the court's choice. And the second issue, getting sued or losing assets due to situations beyond your control, is actually more likely to happen than you might think.

1. Get Your Estate in Order

Do you have a will? You really need to have one. You'll also need to set up durable powers of attorney and health care directives. I realize that this might be an uncomfortable topic, but do it anyway.

If you don't, the courts will determine what to do with your assets. Do you really want them to decide who should get your stuff? I didn't think so.

And if you have significant assets, you will want to look at revocable living trusts and other entities as well to ensure that your heirs will actually be able to benefit from the fruits of your hard work.

2. Protect Your Assets

Asset protection is another topic we'd rather not think about. But the fact is, that there are many risks that could endanger your wealth: premature death or disability, taxes, inflation, adverse economic conditions, lawsuits and more.

Unless you want to risk losing it all, you must take the necessary precautions to protect any assets you have accumulated. You can do that by using the appropriate asset protection tools such state and federal statutes, legal structures, and insurance.

This can be as simple or as complicated as you choose, depending on the level of protection you desire. The more assets you have, the more important it is to protect them from as many risks as possible.

Since getting sued is a big risk in this current society, here's a very cool additional benefit of proper asset protection: It may be much more difficult or even impossible for the other party to collect a judgment if a lawsuit doesn't go your way. And that prevents you from looking like a desirable target. Most attorneys work on a contingency basis, and if they're unlikely to collect, they may refuse to get involved.

And regarding insurance, can you survive without your spouse or business partner? Do you have enough cash to cover the bills if you can't work? Have you reviewed all of the risks you're currently taking to determine if you want to accept that risk or transfer it to someone else? These are very important questions that need to be answered if you really want to protect your assets.

How you choose to structure your estate and business activities will have a significant impact on your overall financial success. The better you plan and execute, the more you will be able to enjoy the benefits of your work.

Financial Guidelines In Buying A Real Estate

Are you thinking about buying a new house? Have you always dreamt of owning your own home? Are you financially prepared to buy a real estate? When you own your home, it is always an advantage. What you do on the other hand though is that you force yourself to earn extra every month to pay amortization rates, and to ensure that you get you pay off your home as soon as possible.

Once you are able to pay for real estate, is it important not to make mistakes because buying a new home is the biggest expense yet. The process of buying a new home is extremely complicated and it requires thorough planning. The following below are tested guidelines in buying a real estate.

No Major Purchases

Being ambitious is innate in every person. The tendency to make multiple purchases is so tempting. When you are considering buying a new home, do not make major purchases. Some couples often get into a mistake of buying a car and at the same time getting into a real estate deal. Major purchases would often get you into a debt of any kind. First things first! If you can still manage with the old car, buy the home first.

Compare Value

Don't be impatient or impulsive as your dream and future finances are at stake. Look around first and manage your impulse. Do not get carried away and fell in love with the first home you've checked out. You might get easily confused as your dream and excitement mixes. Set your standards for your dream home and compare at least three (3) prospective houses.

Don't Transfer Funds

In getting your desire real estate, there will be an investigation on your financial status. A real estate examiner checks on a potential buyer's bank statements and funds. A buyer will be asked to present financial records covering 2-3 months. Transferring money can possibly involved cancelled checks, deposits, withdrawals, and other financial data. All of this information will make documenting difficult for the buyer and the lender. Also, it is most recommended not to change banks.

Do Not Shift Careers

You may be earning on a salary basis, commission basis or through self-employment, it is imperative to stick to your current job or employer when you are in the process of applying for a real estate loan. It does not make sense to change jobs because it does not ensure a secure financial earnings in the future. In changing jobs, potential bonuses will be missed and there will be no basis in computing for an average financial earnings. The reason behind is that, there will be no basis for the buyer's past earnings and if it will be definite for one to produce the same amount of earnings in the future. Once loan officers find themselves in this situation, it can possibly create a negative impact to a buyer's loan application in buying a real estate property.

Get some advisers

Advisers will help you make the right decision. Speak to your lender, a real estate agent, a lawyer to make sure the legal process is being handled correctly and a property inspector to help you not to buy a home that will fall apart in 6 months time. There are trusted realtors like Scottsdale Real Estate who can help you find your dream home. You will not be wasting a lot of time, money and effort when you consult reputed builders because Scottsdale Homes can provide you concrete data.

How Article Submission Service Helps Your Business

If you're wondering whether you should sign up with an article submission service, this article is for you. Read on to learn exactly what article marketing is, and what benefits it can offer you.

E-commerce has none of the disadvantages of physical businesses, since it requires no real estate for a shop, and carries no expensive lease. So a website can be a great source of revenue, but only if managed properly.

The most important factor for generating revenue, whether through ads or product sales, is the number of visitors. More importantly, it's the number of visitors that are already interested in your site, rather than random visitors who may just "bounce" out.

The more the targeted visitors, the more the potential ad clicks or sales. And the best way to get targeted traffic is through a search engine, since visitors already know what to expect as they're looking for something specific.

Search engine optimization (SEO) is the process of improving your site's search ranking. This is done by improving the content on your site, as well as providing useful incoming links embedded in relevant content. This is what a good article marketing service can do for your site.

They can write well-researched, informative articles that readers will find useful. These are written exclusively for your site, and when approved by you, the article submission process of publishing them on the best internet directories, begins.

Virtually all SEO services offer some sort of article submission service as part of their product range. However, not all SEO companies operate ethically. Some use unethical methods such as spam pages, duplicate domains and plagiarized content.

Search engines can automatically detect such techniques, and will invariably penalize your site by dropping its rank or even banning it. This is why it is important to make sure your article submission service writes only original content, and submits only to quality directories.

Writing Business Plan Basics For Successful Funding

The two most important reasons for writing a business plan will help you succeed. The first is so you can convince a lender or a potential investor your business is worthy of investing in or lending money to. The second is to develop a good marketing plan.

To get started, you'll want to conduct preliminary research. You'll discover: your competition, and how they're promoting and and marketing their products, services and business. You'll quickly find how much easier writing a business plan becomes when you've done this type of research. That said, here's a very quick way to start.

Use a Free Business Plan Template

You can download a free business plan template.(Be sure to go to the resource box and click the link to get yours.)

Review it and begin by doing some simple research.

Complete these basics and include them in your finished plan.

1. Describe your Business - What you do, what products you sell

2. How will you sell your Business,Products or Services- What's your marketing approach?

3. Competition- Who is your competition? How does your approach or business vary from theirs?

4. You Operating Procedures - Describe your approach to business

5. Insurance- Make sure you are covered for liability

6. Financial Information should include: A 3-Year Proforma (Projections of earnings and expenses), A Balance sheet, A List of Your Equipment, A Break-even Analysis

7. Your Resume

Remember why you're writing a business plan...Keep this close in mind as you compile your information and research data.

Are you writing a business plan to present to a banker?...Or will you use it to raise startup money from an investor. If so, you'll want to create a compelling reason for someone to invest in you, your ideas and your business.

Bear in mind, they will also be looking for how much of your own time and money you have invested prior to seeking them out.

A banker will be looking at how this business is going to generate enough cash flow to pay back the money you are seeking. You are writing a business plan to sell him on you and your ability to

sell your products or services and make a profit. An investor is looking at how much money he'll be able to make in return for his investment.

As you work with your financials, make sure you project sales and profits, so you can show your potential investment partners (the banker, private investors,etc.) your cash flow.

(Remember this: Cash flow and profits are two different things.) Cash flow pays your expenses...profits are what's left over after you've paid your bills. Your banker will be looking at cash flow, investors will be looking for profits.

Be Thorough...Be Convincing...

But be sure you put some of your own money into the picture. You should consider at least 10%, but an investment of 25% is better. Remember, you are asking someone else

to take a risk on you. Ask yourself, why should they take such a risk, when you haven't...Think about it. They will.

Writing a business plan should be one of the first tasks you take on when starting your business. If you look at it as a way to discover more about your chosen business, you'll see it as fun and exciting.

You may find some surprises along the way, including opportunities you never considered before, ways to market, or even new products. Using a business plan template can ease your task.