FORECLOSURE ADVICE AND DEFENSE
The Rosenberg Law Group, PLLC specializes in consumer debt advocacy. This means that we advocate for consumers, utilizing a variety of legal practice areas. We offer bankruptcy, consumer protection actions, debt collection defense, and foreclosure defense. Today we our focus is on our foreclosure advice and defense activities.
The lender allows a property to be sold for less than the amount owed on a mortgage and takes a loss. This usually occurs when the market drops and the property is worth less than what the current mortgage is. There are three important aspects to a short sale that must be accounted for: it takes about three months to conclude; there is substantial damage to the debtor’s credit, and; there are tax or deficiency issues that must be accounted for. If the lender “writes off” the deficiency, there are tax implications. If the lender does not write it off, then the lender can seek a deficiency judgment.
Trustee Sales: means “a nonjudicial sale under a deed of trust undertaken pursuant to” the Deeds of Trust Act RCW 61.24. The Act provides that the first lien holder’s claim is satisfied by the sale of the property. Specifically, the Act states that:
Except to the extent permitted in this section for deeds of trust securing commercial loans, a deficiency judgment shall not be obtained on the obligations secured by a deed of trust against any borrower, grantor, or guarantor after a trustee’s sale under that deed of trust.
RCW 61.24.100 (1). Accordingly, if a debtor only has a first mortgage on their primary residence, and they do not wish to retain the property, then they should allow it to go into foreclosure. That process takes on average 19 to 23 months from the time of default. During that time, the debtor will benefit from not having to pay a mortgage.
However, if there is a second mortgage then bankruptcy or debt settlement (if the debtor has money for a lump sum payment) should be considered.
Generally involves claims based on RESPA, TILA, breach of contract, and Fraud.
Considering Bankruptcy? Facing Foreclosure? Drowning in Credit Card Debt? Call the Seattle Consumer Debt Advocates for Affordable Relief from your Creditors and a Fresh Start.
For Experienced Quality Service at an Affordable Price and Always a Free Consultation, Don’t turn to a Bankruptcy Mill, turn to Seattle bankruptcy attorneys at The Rosenberg Law Group, PLLC. We will examine all your affordable bankruptcy and non-bankruptcy options to find the solution to your financial problems that is best for you and not for a company’s bottom line.
We offer a free consultation with our consumer debt attorneys.
If you have questions or would like to learn more, please visit our consumer debt protection attorney services section. We are waiting to assist you.