Own your home and in foreclosure?
You feel like you should try to beat the banks at their scams and file bankruptcy?
Well don't do it. Here is what I would do....
Once upon a time from sea to shining sea and from purple mountains majesty, bankruptcy judges would protect the home owner. Well not any more. Bankruptcy judges are in on the foreclosure scams. If I file bankruptcy during my foreclosure the judge will lift the stay and the house be taken out of the bankruptcy. Then the plaintiff will get a summary judgment as fast as a robo judge will sign the order. So I file the bankruptcy and spend all that money for nothing.
But, I am getting smart!
A mortgage is the security for the promissory note. They take the mortgage, foreclose on it and sell the house to pay the note holder. That is how the note holder gets his money. So, get smart here. My mortgage is a secured debt. Because of this, the bankruptcy judge will lift the stay so the secured debt can be satisfied. Then when there is not enough money from the sale to pay the complete note off, the bank will then sue me for a deficiency judgment. The difference between what they got from the courthouse sale and the balance owed at the time of the summary judgment. This deficiency can be thousands of dollars. The only way to wipe it off is claim this unsecured debt in bankruptcy. Since the deficiency is unsecured and there is no mortgage any more, the bank cannot ask the judge to lift the stay. Many times the bank will not even appear at the bankruptcy court. So I am getting smart.
The time for me to file the bankruptcy is AFTER the summary judgment has been entered. Once this has been entered into the court and filed in the public records. I will go straight to the bankruptcy court and file bankruptcy. I will do it within minutes. I will not wait a day. I have the forms already filled out. I will place the summary judgment on schedule "F" as an unsecured debt. I will ask the judge to wipe it off with all other debts claimed.
Yes, when this happens, the greedy bank is not getting the house back. I will not ask for the summary judgment to be set aside. I will not allow the bank another stab at killing me. A bankruptcy judge should allow the unsecured debt to be included in the wipe out.
OK, now I own the house and the mortgage is wiped out in the bankruptcy. Now what? Good question.
The bankruptcy judge can order the house sold and all my debtors paid from the proceeds. Or, the judge can look at the value of the house at present market conditions and just let me have it. Now that is what we have been fighting for all these years since this fraud in Florida courts surfaced.
OK, get smart. Now find an attorney and let him guide you through the foreclosure. You could still win there. But if you do not, do not cry and go jump off some bridge. Go out and have a good supper and celebrate. Then soon as the summary judgment is signed, do as I will do and go straightway and file bankruptcy. Do it. Just do it.
Not intended to be legal advice....just an opinion of what I would do.