Mesa Bankruptcy Law Office
My AZ Lawyers
1731 W. Baseline Rd.
Mesa, AZ 85202
Phoenix Bankruptcy Law Office
668 North 44th Street, Suite #300
Phoenix, AZ 85008
Glendale Bankruptcy Law Office
My AZ Lawyers
20325 N. 51st Ave.
Glendale, AZ 85308
Tucson Bankruptcy Law Office
My AZ Lawyers
2 East Congress St. Ste. 900
Tucson, AZ 85701
There May Be Hope for Underwater Mortgages in Arizona
New Rules for Underwater Mortgages in Arizona
Some homeowners in Arizona who are trying to escape an underwater mortgage may have some hope. What is an “underwater mortgage” and why are those affected by this financial crisis desperate to find a way “above water”?
The term underwater mortgage is a term referring to a situation in which a homeowner is left with more debt on their home than what it is actually worth on the current market value. So the homeowner actually owes more on the mortgage that the house is worth. They could sell the house, but it wouldn’t cover the current mortgage that is owed. Due to the recent economy, the value of the housing market has greatly depreciated leaving many homeowners stuck with an underwater mortgage and desperately wanting help to bail out. Without a bailout on their mortgage, many people are forced to file for chapter 7 or chapter 13 bankruptcy in order to get out of the mess that has been created by their mortgage issues.
There may be help for those homeowners stuck in a house and mortgage who are unable to move or sell their homes due to the fact that they owe more on their property than it is worth. To help the economic recovery and to benefit people who need to move due to job relocation, the death of a spouse, illness which requires a shift in location, and for military personnel relocation, new rules for deed-in-lieu transactions may apply. On March 1, 2013, Fannie Mae and Freddie Mac will begin to allow some homeowners who need to move but are stuck in their “underwater homes” to give up their houses and cancel their debt. These moves may lead to a new financial start for many people in Arizona and throughout the United States who are “underwater” with their mortgages.
There are restrictions to this new relief program. To be eligible, homeowners must be able to prove that their need to move is considered to be a hardship; a move that is deemed necessary such as the death of a spouse. The rules of the program do not allow just anyone who is underwater who wants to move do so just in order to escape their financial situation.
The new rules apply to those who are current or less than 90 days late of their monthly mortgage payment (first mortgage, the program does not affect a second mortgage). Homeowners , depending on their financial situation, may also need to give up a percentage of their personal assets in order to meet some of the balance owed. So, don’t stop paying your mortgage now because you think that after March 1st you won’t have a mortgage any longer.
The newly announced relief program has created several questions, such as: How many homeowners facing an underwater mortgage will these new rules affect? Who will actually benefit? It appears that the number of borrowers who may be eligible for a deed-in-lieu release is projected to be small. Although it is a program created to help homeowners, it is somewhat restricted. (However, every little bit helps.) Short sales (a sale that allows lenders to sell the home for less than they are owed) have been far more popular than the deed-in–lieu transactions. Nevertheless, the program, as restricted as it may be, is intended to help borrowers affected by the housing market collapse.
Check out the restrictions and see if the debt relief is applicable to you. If it is not, it wouldn’t be a bad idea to seek the assistance of an experienced short sale lawyer or bankruptcy attorney to find out what other options may be available to you.
20325 N. 51st Ave., Suite #134
Glendale, AZ 85308
Office: (623) 640-4945
2 East Congress St., Suite 900
Tucson, AZ 85701
Office: (520) 306-8729
Tucson Chapter 13 Bankruptcy Attorneys
Filing Chapter 13 bankruptcy in Tucson, Arizona allows a person to consolidate the debt while making convenient monthly payments to a trustee. A Tucson bankruptcy lawyer will prepare a payment plan for you, the plan is proposed which repays the debt over a three to five year period.
The amount of the monthly payment and the length of the repayment plan is based upon the following factors:
- Monthly income of the person
- Monthly expenses of the person
- Amount and nature of the debt
The most common uses of a Chapter 13 bankruptcy in Tucson, Arizona involve:
- Repayment of mortgage arrears (back amounts owed) home
- Restructuring of auto loans to save a vehicle
In a Chapter 13 bankruptcy, secured debts are paid 100% on the dollar, while unsecured debts may be paid less than 100% on the dollar. A person receives a discharge under Chapter 13 bankruptcy in Tucson, AZ once the payment plan is completed.
Chapter 13 bankruptcy in Tucson, Arizona is a repayment plan that usually takes 3 to 5 years. It is overseen by the Bankruptcy Court to make sure everyone (creditors and the debtor) play by the rules, and it allows you to pay your creditors back on terms that are favorable to you. (This is different from a Chapter 7 filing, which simply liquidates your assets in order to pay back creditors and does not require ongoing payments.) A Tucson Chapter 13 bankruptcy also allows you to keep certain property (e.g., house or car) even if you have been behind on payments.
The My AZ Lawyers, PLLC, is a debt relief agency servicing all of Arizona. Our Affordable bankruptcy attorneys and bankruptcy lawyers help people file for bankruptcy relief under the Arizona bankruptcy code. The My AZ Lawyers, PLLC provide bankruptcy planning, Chapter 7 and Chapter 13 filing options to those experiencing extreme financial difficulty. We have offices in Mesa, Chandler, Tucson and Glendale,AZ servicing the entire Phoenix metro area, and all of Arizona.
Experienced, affordable and professional, the bankruptcy lawyers and bankruptcy attorneys at The My AZ Lawyers, PLLC provide personalized and compassionate bankruptcy planning and filing services to individuals, families, and businesses experiencing extreme financial difficulty. Our team of bankruptcy lawyers and bankruptcy attorneys understand the sensitive nature of filing for bankruptcy and are committed to protecting your interests and maintaining the discretion you deserve.
Many of our clients are simply Arizona individuals or Arizona families looking to get a fresh start. Some of our other clients are Arizona business owners searching for attorneys sophisticated and experienced enough to handle more complex bankruptcy filings.
Our business bankruptcy clients include: retail stores, service companies, and restaurants.
Whatever your reasons are for considering filing Chapter 7 or Chapter 13 bankruptcy in Tucson, Mesa, Glendale, or Phoenix, Arizona, we understand. The My AZ Lawyers is non-judgmental; our experienced bankruptcy lawyers and bankruptcy attorneys understand how financial problems can easily happen to anyone and we firmly believe everyone deserves a second chance. The Arizona bankruptcy laws are designed to give you a chance at a Fresh Start, there is no better time than now to improve your quality of life, stop threatening collections, and get your life back on track. Filing for bankruptcy in Arizona, be it chapter 13 bankruptcy or chapter 7 bankruptcy has many advantages.
Some of the advantages of declaring bankruptcy in Arizona include:
- Filing bankruptcy may rebuild your credit.
- Declaring bankruptcy will help you stop bad financial habits.
- Filing bankruptcy in Arizona may help you stay out of debt.
- Declaring bankruptcy in AZ will let you live your life without worry.
- Chapter 7 and chapter 13 bankruptcy in Arizona gets you a “Fresh Start”
Before you make any decision about filing Chapter 7 or Chapter 13 bankruptcy in Tucson, Glendale, Phoenix, or Tempe, Arizona, please speak with one of our low cost bankruptcy lawyers or affordable bankruptcy attorneys, find out your bankruptcy options at either a FREE initial consultation with one of out bankruptcy lawyers. Your FREE bankruptcy consultation can either be in person or by phone.
Our licensed Arizona based Bankruptcy Attorneys in Phoenix, Tucson and Glendale can walk you step by step through what options are available to you while going through the process of filing chapter 13 or chapter 7 bankruptcy in Arizona. Find out if filing bankruptcy is the right option for you .
Many people in Phoenix, Arizona; Chandler, Mesa, Glendale as well as Tucson and Tempe, Arizona are going through hard times in this tough economy. Filing chapter 13 or chapter 7 bankruptcy in Arizona is a legitimate option that deserves your careful consideration. If you are falling behind in your financial obligations, you owe it to yourself and your family to investigate all of your options, be it a chapter 7 bankruptcy, a chapter 13 bankruptcy, or some other debt relief option. We offer a free debt analysis and consultation with a debt relief expert. It is NEVER a good time to do NOTHING. Call us today and make an appointment with one of our Arizona debt management counselors, Arizona bankruptcy lawyers, and Arizona bankruptcy attorneys.
The bankruptcy experts at The My AZ Lawyers, PLLC offer an initial free consultation in all bankruptcy matters with our experienced bankruptcy lawyers and trusted bankruptcy lawyers. It is important that you see a bankruptcy attorney or bankruptcy lawyer in person because each case is different and needs individual attention. Once the decision has been made by you to file bankruptcy, our chapter 13 and chapter 7 bankruptcy lawyers will ask that you provide complete and accurate information so the attorney can try to foresee any possible difficulties. After all of the information is provided, the bankruptcy forms are prepared and the final product is reviewed with each client and signed. The meeting of creditors will be thirty to forty five days after the date of filing. If any further hearings are required the chapter 13 and chapter 7 bankruptcy attorneys will represent your interests at them and let you know if you need to attend. The My AZ Lawyers, PLLC will be with you every step of the way while filing chapter 7 or chapter 13 bankruptcy in Arizona.
A recent report in The Arizona Republic gives some hope to valley residents. Despite the on-going nationwide recession, the numbers of bankruptcy filings in Phoenix, Arizona have declined for the 4th consecutive month. Continue reading “Bankruptcy Filings on the Decline in Phoenix?” »