Exploring Your Options When Facing Foreclosure in New York
August 31, 2023
Exploring Your Options When Facing Foreclosure in New York
Foreclosure can be a daunting process for homeowners. It's a stressful and unfamiliar situation that can leave you feeling overwhelmed and unsure of what to do next. In New York, where the housing market can be particularly volatile, it's important to understand your options when facing foreclosure. If you're a homeowner facing financial hardship and the possibility of foreclosure, you're not alone. Many people have been in your shoes and have successfully navigated the foreclosure process. In this blog post, we'll explore your options when facing foreclosure in New York and provide you with the information you need to make the best decision for you and your family. 
1. Loan modification. One option you have when facing foreclosure is to apply for a loan modification. A loan modification is a change to the terms of your mortgage that can make your monthly payments more affordable. The goal of a loan modification is to prevent foreclosure and keep you in your home. To apply for a loan modification, you'll need to provide your lender with financial documentation and a hardship letter explaining your situation.
2. Short sale. Another option you have when facing foreclosure is a short sale. A short sale is when you sell your home for less than what you owe on your mortgage. The goal of a short sale is to prevent foreclosure and minimize the impact on your credit score. If your lender approves a short sale, they'll forgive the difference between what you owe on your mortgage and the sale price of your home.
3. Deed in lieu of foreclosure. A deed in lieu of foreclosure is when you voluntarily give your home back to your lender instead of going through the foreclosure process. The goal of a deed in lieu of foreclosure is to prevent foreclosure and mitigate the impact on your credit score. If your lender accepts a deed in lieu of foreclosure, they'll forgive your remaining mortgage balance.
4. Chapter 13 bankruptcy. If you're unable to make your mortgage payments and facing foreclosure, filing for Chapter 13 bankruptcy may be an option for you. Chapter 13 bankruptcy can help you catch up on missed mortgage payments and keep your home. Under Chapter 13 bankruptcy, you'll create a repayment plan to repay your debts over a period of three to five years. During this time, you'll make your mortgage payments, and your lender is prohibited from foreclosing on your home.
5. Sell your home to a real estate investor. Finally, an option you may have when facing foreclosure is to sell your home to a real estate investor. Real estate investors specialize in buying distressed properties and can offer you a fair price for your home, even if you're facing foreclosure. This option can be a quick and easy way to get out from under your mortgage and move on with your life.
Being faced with foreclosure is never easy, but you're not alone. There are several options available to you in New York that can help you prevent foreclosure and keep your home. Keep in mind that each option has its benefits and drawbacks, and the best option for you will depend on your financial situation. If you're facing foreclosure, the most important thing you can do is take action early and explore your options. With the right help and guidance, you can successfully navigate the foreclosure process and come out on the other side with a fresh start.
1. Loan modification. One option you have when facing foreclosure is to apply for a loan modification. A loan modification is a change to the terms of your mortgage that can make your monthly payments more affordable. The goal of a loan modification is to prevent foreclosure and keep you in your home. To apply for a loan modification, you'll need to provide your lender with financial documentation and a hardship letter explaining your situation.
2. Short sale. Another option you have when facing foreclosure is a short sale. A short sale is when you sell your home for less than what you owe on your mortgage. The goal of a short sale is to prevent foreclosure and minimize the impact on your credit score. If your lender approves a short sale, they'll forgive the difference between what you owe on your mortgage and the sale price of your home.
3. Deed in lieu of foreclosure. A deed in lieu of foreclosure is when you voluntarily give your home back to your lender instead of going through the foreclosure process. The goal of a deed in lieu of foreclosure is to prevent foreclosure and mitigate the impact on your credit score. If your lender accepts a deed in lieu of foreclosure, they'll forgive your remaining mortgage balance.
4. Chapter 13 bankruptcy. If you're unable to make your mortgage payments and facing foreclosure, filing for Chapter 13 bankruptcy may be an option for you. Chapter 13 bankruptcy can help you catch up on missed mortgage payments and keep your home. Under Chapter 13 bankruptcy, you'll create a repayment plan to repay your debts over a period of three to five years. During this time, you'll make your mortgage payments, and your lender is prohibited from foreclosing on your home.
5. Sell your home to a real estate investor. Finally, an option you may have when facing foreclosure is to sell your home to a real estate investor. Real estate investors specialize in buying distressed properties and can offer you a fair price for your home, even if you're facing foreclosure. This option can be a quick and easy way to get out from under your mortgage and move on with your life.
Being faced with foreclosure is never easy, but you're not alone. There are several options available to you in New York that can help you prevent foreclosure and keep your home. Keep in mind that each option has its benefits and drawbacks, and the best option for you will depend on your financial situation. If you're facing foreclosure, the most important thing you can do is take action early and explore your options. With the right help and guidance, you can successfully navigate the foreclosure process and come out on the other side with a fresh start.
Chapter 7 bankruptcy income limits are based on the means test, which compares your household income to your state’s median income. If your income is below the median, you typically qualify. If it is above, additional expense calculations may still allow eligibility.
The cost of Chapter 7 bankruptcy generally includes a court filing fee, required education courses, and attorney fees that vary based on case complexity. Total costs depend on income level, assets, and whether issues arise during the case.
Chapter 7 bankruptcy can stop merchant cash advance lawsuits immediately through the automatic stay and may discharge personal liability for MCA debt, depending on the contract and business structure.
To qualify for Chapter 7 bankruptcy, you must pass the means test, demonstrate limited disposable income, complete credit counseling, and meet timing rules related to prior bankruptcy filings. Your assets must also fall within exemption limits.
To find a reputable Chapter 7 bankruptcy attorney, look for a lawyer who focuses primarily on bankruptcy law, has experience handling Chapter 7 cases in your state, offers transparent pricing, and provides clear explanations without pressure or unrealistic promises.
Chapter 7 bankruptcy typically discharges unsecured debts such as credit card balances, medical bills, personal loans, utility arrears, payday loans, and certain judgment debts. It does not usually eliminate child support, alimony, most student loans, or recent tax obligations.
Can Chapter 7 bankruptcy help with merchant cash advance debt? Yes. Chapter 7 bankruptcy can eliminate personal liability for merchant cash advance debt in many cases, stop lawsuits and collections, and provide immediate relief through the automatic stay.
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