Texas bankruptcy lawyers are some of the toughest in the country. They know their stuff and know how to reach amicable solutions for their clients. Filing for bankruptcy is never an easy solution for anyone so working with a reliable knowledgeable attorney really helps to ease a person through the process.
Whether you are dealing with austin bankruptcy attorneys or dallas bankruptcy attorneys, you can depend on their tough and tenacious attitudes to make the process simple for you. Texas lawyers are well known for their take no prisoners type of attitude and their strict adherence to the law. They can help their clients to fill out all of their paperwork properly and can be there to guide them as they go through the court proceedings. Instead of a person feeling like they are floundering as they stand before a judge and declare that they are bankrupt, having a great lawyer standing beside you makes the whole process that much easier to bear.
When a client has a lawyer that they know that they can depend on, the stress of becoming bankrupt becomes that much easier to bear. They are able to go through the process of itemizing their assets and not feel overwhelmed. They can give up all of their credit cards and feel stronger about the reality of having to live on cash only. It is the knowledge that they have a strong support system in their corner in terms of legal representation that they are able to face the financial challenges that lie ahead of them.
Clients in Texas are definitely lucky. They have some of the strongest legal minds at their disposal to help them chart their course through the uncomfortable bankruptcy waters. With determination and perseverance they can come out stronger on the other side.
The thought of house foreclosure is scary. Nobody wants to have their homes taken away from them. The foreclosure process is simple. The following steps outline the foreclosure process. If you have missed payments on your house, whether you are in the second, third, or even fourth steps, it is not too late to seek professional help.
Step one
After your first month of missing your payments, you will receive a phone call from your lenders inquiring as to why you didnt pay your mortgage payments. This may be followed up by with an email. Always take the lenders calls. This is the beginning stage of a foreclosure. It is best to talk with your lender and give your reasons for not paying on time. Present a plan of how you will bring your payments up to date.
Step two
If you have not made your payments for two months in a row, you will be served a notice to accelerate. This letter will state that if you do not bring your payments up to date, including any late fees, official steps will be taken to begin a foreclosure. At this point, you must bring your payments up to date. Speak to a housing counselor to find out if you are eligible for government foreclosure help.
Step three
If after ninety days, you still have not brought your payments up to date, you will be contacted by your lenders attorneys and a demand letter will be issued to you. The letter will state that you must bring your payments up to date immediately, including late fees and attorney fees, or your lenders will bring your home under foreclosure. If you still have not paid everything you owe, your case will be taken up in court and an official notice of default and sale will be issued to you. Knowing how the house foreclosure process works can help you realize the seriousness of the situation and find a solution as soon as possible.
If you own an investment property, there is certainly a possibility that it might perform badly. It may be because you could not keep it rented, or the prices dropped steeply because of a downward market trend or any other reason. If this happens by any case, you may have to select between a short sale and bankruptcy. These options are not attractive at all, but it will be useful to know the difference between both.
Short Sale
In the process of short sale, the owner of the home or property sells the mortgaged property for less than the outstanding loan balance and pays the sale revenue to the lender. In most cases, the lender too agrees to reduce the loan balance after considering the borrower’s financial condition. In general, short sale is considered to be a faster process than foreclosure. It is less costly too.
Bankruptcy
If you have more than one investment property giving you financial troubles, you can settle for bankruptcy. There are two types of bankruptcy, chapter 7 and chapter 13. In chapter 7 category, you can get rid of almost all your debts and start all over again. While in chapter 13 bankruptcy, you can fix up a repayment plan with your lenders to pay back over time. Regardless of whether you have one property or multiple properties, you can do away with mortgage debt using this method.
Credit Impact
When deciding on an option to choose, look into the credit impact which each will bring about. Short sale will not upset your credit as unfavorably as bankruptcy. It reduces the credit score by around 120 to 130 points. Contrarily, bankruptcy will lower your credit score by somewhere between 355 and 365 points.
Benefits
If you have just one investment property which is performing poorly, the short sale would probably seem sensible. It would not affect your credit score gravely and will also help to maintain your personal finances. The advantage of bankruptcy would show up only if you had multiple properties that were in non-payment or if you had other monetary issues also.
Warning
Although you could go with either option, these must be your last choice. These dealings will affect your credit in a negative way. It may take ages to restore the harm caused. Thus, before going in for short sale or bankruptcy, you should reach a deal with your lender to alter your current mortgage. Lenders may extend the loan tenure or also bring down the interest rate for you. This would also damage your credit score, however not so severely as the remaining two alternatives. It is important in any financial crisis to obtain good investment advice from a professional with experience in this area.