Foreclosures & Repossessions

Belleville 618.236.7000
Granite City 618.656.7941
Mt. Vernon 888.400.6763

Foreclosures and Repossessions

Our current economy makes it very difficult for everyone to be able to afford their houses and their vehicles.  Jobs are being eliminated, and pay raises are decreasing or disappearing.  In addition, many houses have decreased in value, and vehicles depreciate each year at a significant rate, increasing the difference between what we owe on our houses and vehicles, and what they are currently worth.  A filed bankruptcy immediately prevents a foreclosure or a repossession.  If your car has already been repossessed, a bankruptcy may allow you to get your car back IF your case is filed quickly enough.  Here are some ways TBC has helped our clients to avoid losing their homes and their vehicles.  Their names have been changed, but their situations were absolutely real.

Retirement, Repossessions and Foreclosure: 

Just reaching their retirement age, Frank and Mary were struggling to keep up financially already.  They had two cars repossessed, and owed the bank for the difference between the value of these cars and the amount owed on them.  They would no longer be able to afford their house once they retired and their income was lowered even further.  They knew that they would not be able to sell the house for enough to pay off their mortgage.  In addition, they had credit card debt that they were struggling to repay.

TBC's Solution:

Their attorney fully reviewed Frank and Mary's financial situation and determined that, before retirement, their income was too high to qualify them for a Chapter 7 bankruptcy.  However, once they retired a couple of months later, their lowered income would qualify them for a Chapter 7.  After they retired, Frank & Mary filed a Chapter 7 and were able to surrender their house and eliminate the deficiencies they owed to the bank for their two repossessed vehicles and the house, as well as their credit card debt.  The Chapter 7 allowed Frank and Mary to discharge over $100,000 in debt, making it possible for them to afford to live ontheir retirement income. 

« Back to Top »

 

Foreclosure and Medical Bills:

Fran had a medical condition that kept her off of work for an extended period of time.  As a result, she fell behind on her house payments.  When she was finally able to return to work, she was so far behind on those payments that she could not catch up, and the bank began to foreclose on the house.  In addition, she was burdened with about $20,000 in medical bills.

TBC's Solution:

Fran came in to see a TBC attorney just 11 days before her house was to be sold in foreclosure.  She retained TBC and brought in all of the necessary documents on the next day, and her Chapter 13 case was filed a few days later, stopping the foreclosure and wiping out her medical bills.  She paid $475 per month for 4 years, to bring her house payments current.  Her children agreed to help her with her ongoing monthly mortgage payment.

« Back to Top »

 

Car Repossession: 

Lucy met with a TBC attorney to discuss her options in October, but had not yet made a decision on how to proceed when her car was repossessed in December.

TBC's Solution:

Lucy immediately retained TBC and brought us the necessary paperwork, and we had her Chapter 13 filed within the week.  By that time, the creditor had already moved her vehicle to a site in Indiana.  We had Lucy stop by our office to pick up proof of her bankruptcy filing, and we printed out directions to the site in Indiana, so that she could go retrieve her car.

« Back to Top »

 

Death of Spouse, Foreclosure: 

Cathy was a young, stay-at-home mom who home-schooled her children.  When her husband died very suddenly, she was left with no source of income while the estate was being opened and settled.  Her friends and her church helped her out with some of her expenses, but her mortgage company refused to wait for the life insurance proceeds, and began to foreclose on her family's home.

TBC's Solution:

TBC filed a Chapter 13 for Cathy, who was able to make a minimum monthly plan payment that allowed her and  her children to keep their home.  When the life insurance proceeds arrived 4 or 5 months later, Cathy was able to pay off her bankruptcy.

« Back to Top »

 

Mortgage Higher Than House Value:  

Sam had two mortgages on his house, and it was becoming harder and harder to be able to afford them each month.

TBC's Solution:

Sam set up a free consultation with a TBC attorney to learn his options for dealing with his debt.  From documents Sam provided, his attorney determined that Sam's house now appraised for less than the balance owed on the first mortgage.  The attorney was able to file a Chapter 13 for Sam, and eliminate Sam's $28,000 second mortgage entirely.  The rest of Sam's debts are being paid off through monthly Chapter 13 plan payments that Sam can afford.

« Back to Top »

 

Rental Home:

Robert & Jenny owned a mobile home that Robert's sister was renting from them.  They still owed $17,000 for the mobile home, and were considering surrendering it back to the bank, as the monthly payment had become too high for them.  If they surrendered the mobile home, however, Robert's sister would have nowhere else to live except Robert & Jenny's basement.

TBC's Solution:

Their TBC attorney put Robert and Jenny into a Chapter 13, which in their case allowed them to have to repay only the value of the mobile home ($7000), rather than their entire remaining loan balance ($17,000).  This cut their monthly payments for the mobile home in half, allowing them to keep it.

« Back to Top »

 

Disability and Foreclosure:

Jack is disabled and was having difficulty affording his mortgage payment. His bank began the foreclosure process on his home. Jack had consulted with a few other bankruptcy attorneys before scheduling his free consultation with TBC, but stated that he chose TBC based on our personal service, professionalism, and competence.

TBC’s Solution:

Jack’s TBC attorney filed a Chapter 13 for him, immediately stopping the foreclosure sale. The attorney requested, and was granted, a Court Order allowing Jack and his mortgage company to negotiate a loan modification to significantly reduce Jack’s monthly mortgage payment. He also put Jack in contact with a HUD-certified, not-for-profit housing counselor to assist him with these negotiations. Finally, as attending a meeting at Court would have been a hardship due to Jack’s disability, TBC was able to get his appearance at the meeting waived, so that he did not have to go.

« Back to Top »

 

Loan Modification Rejected:

Cassie was a Realtor whose income had been hard hit by the housing crisis. She had been trying to work out a loan modification agreement with her mortgage company for several months, until the mortgage company suddenly notified her that they had set a date for a foreclosure sale.

TBC’s Solution:

Cassie’s TBC attorney filed a Chapter 13 for her to stop the foreclosure sale, and obtained permission from the Court to negotiate a mortgage loan modification. For just $350 up front, and an affordable payment of $275 per month, Cassie will be able to catch up on her house payments and eliminate $13,000 in medical bills and $55,000 of other debt within 4 years. She will also be able to negotiate a lower monthly mortgage payment.

« Back to Top »

 

Deficiency on Foreclosure:

Scott & Pam had lost their home to foreclosure several months earlier. They were still struggling to make ends meet, with three small children, two car payments, and credit card and other debts totaling $30,000.00. They called TBC when their former mortgage company told them that they still owed $40,000.00 on the foreclosed house – the difference between the value of the house and the amount they had owed on the mortgage.

TBC’s Solution:

Scott & Pam’s TBC attorney filed a Chapter 7 for them, to eliminate the $40,000 deficiency on the foreclosed house, as well as the additional $30,000 in debt. Now Scott & Pam can afford their two vehicle payments, as well as the rest of their family’s monthly expenses, and their ongoing car payments are rebuilding their credit.

« Back to Top »

 

Job Loss and Foreclosure:

Yvette lost her job and soon fell behind on her mortgage payments. The mortgage company was threatening to foreclose on her house.

TBC’s Solution:

Yvette filed a Chapter 13 bankruptcy with TBC to stop the foreclosure. She has relatives who will be moving in and renting from her, so that she can afford her Chapter 13 payments to catch up on and keep her house.

« Back to Top »

Memberships & Associations

memberships

Belleville Location

The Bankruptcy Center
5312 West Main Street
Belleville, IL 62226
Tel: 618.236.7000

Granite City Location

The Bankruptcy Center
2021 Johnson Road, Suite 1
Granite City, IL 62040
Tel: 618.656.7941

Mt. Vernon Location

The Bankruptcy Center (In the US Bank Building)
123 South 10th Street, Suite 202
Mt. Vernon, IL 62864
Tel: 618.236.7000

Disclaimer

The Law Offices of William A. Mueller is a debt relief agency, helping people file for bankruptcy relief under the Bankruptcy Code.