Sunday, December 1, 2013

Bankruptcy May Not be Best Option for Unsecured Mortgage Lenders

Filing within the Section 362 of the bankruptcy might not always be the best strategy for a mortgage lender.

According to mortgage expert Maggie Puccini, a borrower files a bankruptcy proceeding to stop a foreclosure since the filing results in an automatic stay that prevents creditors from pursuing the borrower or his assets to collect debt.

Whether a lender files a Chapter 7, Chapter 11, or Chapter 13 bankruptcy depends on many factors, including the amount that a person is in debt and how much their income is compared to that debt.

After the real estate crisis, with the steep decline in property values and an oversupply of properties, many lenders have begun to entertain short sales — sales to which the lender consents even though its debt will not be paid in full.

However, some lenders have discovered that a short sale may also be accomplished within the context of bankruptcy and can save them more heartache and stress than they already have.

Many times in cases of mortgage lenders, bankruptcies can end in lieu of a short sale. Short sales can save the lender the time and expense of foreclosing, as well as the cost of maintaining and marketing the property once it is owned by the lender. In addition, a sale by the trustee may well bring a higher price than if the lender were to sell the property at or after a foreclosure sale.

About NielsenLawGroup.net

Nielsen Law Group (http://www.nielsenlawgroup.net/what-we-do/bankruptcy/arizona-bankruptcy-attorney/) is a reputable Arizona Bankruptcy Attorney. Nielsen law firm has been effectively representing clients and consumer debtors in bankruptcy cases for a substantial time period. The bankruptcy professionals at their firm use a wide range of legal knowledge and services to assist individuals, families and businesses in Arizona and California find resolution to their legal, tax and business issues. For more information, visit the website or call 480-888-7111.


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Company Name:NielsenLawGroup.net
Contact Person: Benjamin Wrights
Email:media@vytalnet.com
Phone: 4157669098
City: San Francisco
State: CA
Country: United States
Website: http://www.nielsenlawgroup.net/what-we-do/bankruptcy/arizona-bankruptcy-attorney/

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