Foreclosure

[Tina]

Dear Mr. Murray:

Hopefully you can answer a few questions for me. I am in the process of filing bankruptcy (Chapter 7) in the very near future. This all has to do with medical reasons. Although I did not want a foreclosure attached to my bankruptcy, it looks like I may have no other alternative. I own a stick built home and currently have it listed with a Realtor. I am two months late on my house payment. I do not have the financial resources to make my house payments. I lost my job due to my health and have used up all my resources...nothing is left. I am waiting to hear from Social Security Disability, but they can take a long time before they make their decision.
Here is my problem. I plan to relocate to another state, but cannot move for the next couple of months. The bank is telling me I am better off to surrender my home than to foreclose. Can you tell me what is the difference between the two? Also, when a person files bankruptcy, is it worse when a foreclosure is attached to the bankruptcy or does it matter because bankruptcy is just that...bankrupt, no matter how you look at it?
I appreciate your time to answer these questions. This all has me so upset. Unfortunate for someone to become ill and lose everything. Thank you.

[rmurray]

This is exactly what bankruptcy is for...bad things happening to good people...giving good people a clean start to start over..

When you file chapter 7...you should be clearing EVERY single debt that you have...including the home...Do not even talk to the mortgage company anymore...do ALL your talking to your bankruptcy attorney and let him handle all the collectors...Especially DO NOT any agreements with the mortgage company without your attorney's advice...Since you have decided to file...go do so now...

Good Luck...

P.S. after the bankruptcy..be sure you pay ALL bills on time...start to rebuild your credit and within 2 years your credit will be fine..

[Tina]

Mr. Murray,

Thank you so much for your reply. This has made me feel much better and eased some of the burden I have been carrying around. The mortgage company is calling me every two days and I keep telling them the same story. Of course, it is a different person every time, but they make you feel like a dead beat and can get pretty rude if not downright nasty. I even had one lady tell me if I have to end up on the street with my child (a Down Syndrome child at that) then that is what I would have to do. I am so tired of this harassment.

Again, thank you so much for all of your help.

[Annaz]

Tina...get caller id or don't answer any calls. It is actually illegal for them to harrass you. I had a bankruptcy 15 years ago and they were doing the same to me. Just stop answering the phone. If it's friends and family call them back.

[Karen]

Tina,
There are laws in EVERY state about how a person collecting a debt can talk to you, what they can say and even what hours they can call you. The laws are Federal.

Please go the Federal Trade Commission's website (I beleive it is FTC.gov) and look up the "Fair Debt Collection Practices Act". Follow all the links and learn what you can.

The next time a person calls you, tell them you are hanging up and calling the Attorney General (research his website too). Then call the Attorney General and tell them what is going on. Make sure you mention your child's disability, you have special rights.

Don't take this, at all. Do not let people intimidate you or your child. You may even get help saving your home. Don't give up Tina!