Chapter 7 Bankruptcy, Chapter 13 Bankruptcy, Short Sale, Foreclosure Slide Show for Real Estate Professionals, Changes in the HUD, Settlement Statement

1. Bankruptcy, Foreclosure and Short
Sale Seminar for Real Estate
Professionals!
AND… Helpful Tips for the Changes in the Law
Affecting the HUD and Closing Documents!

2. CONSUMER BANKRUPTCY
• Knowing about Bankruptcies helps
you to know if your client can sell
a house and, if so, when.
• Chapter 7
• Chapter 13

3. CHAPTER 7
• Means Test
• Fresh Start
• Liquidates Debts
• But, you can Reaffirm Debts
• No Guarantee of a Permanent Stay without Equity in the Home.
• Limited Exemptions for Assets

4. MEANS TEST
• Means test is a determination of whether an individual or family is eligible
for government assistance, based upon whether the individual or family
possesses the means to do without that help.
• Look at Income
• Look at Number of Dependents
• Look at Expenses

5. FRESH START
• In a Chapter 7, you can wipe out most unsecured debts, EXCEPT:
• School Loan
• Taxes
• Personal Injury Cases Arising From DUI
• Fraudulent Debts
• Alimony
• Child Support

6. REAFFIRMING A DEBT
• Cars
• Houses
• Form provided by the Creditor.
• Completed by the Debtor.

7. STAY FORECLOSURE/LITIGATION
• Stay = Automatic
• UNTIL… Bank Files a Motion for Relief from Stay.
• Motion- GRANTED, if no equity and Bank complies with the Local Rules.
• However, the Court may grant additional time.

8. CHAPTER 13
• Feasibility
• Payment Plan
• Keep Your Assets
• Strip Off Second Mortgages
• Cannot Sell Assets Without Court Permission

9. FEASIBILITY
• For Ch. 13, your MUST have the Income to Pay the Payment Plan.

10. PAYMENT PLAN
• Repay Secured Debts
• Pay Priority Unsecured Debts
• Pay a % or Unsecured Debts
• Complicated Process- Takes Months for Approval

11. KEEP YOUR ASSETS
• In Ch. 13, you can keep your assets while you make you
payment plans.
• But, you have to fully disclose all assets, including inheritance
and personal injury settlements even if you have not received
them, yet.

12. STRIP SECOND MORTGAGE/ELOC
• If you have more than 1 Mortgage, you MAY be able to strip off the second
mortgage or ELOC.
• But, ONLY if the house is worth LESS than what the FIRST Mortgage is
valued at.
• Values are based on appraisals.

13. YOU CANNOT SELL ASSETS
WITHOUT COURT PERMISSION
• When you enter Bankruptcy, all of your Assets become a part of the
Bankruptcy Estate.
• You CANNOT transfer/sell any assets WITHOUT Court Permission.
• Court Permission can be obtained via Motion.

14. UNLAWFUL PRACTICE OF LAW
• DON’T GIVE LEGAL ADVICE!
• You want to help your potential client, but protect yourself always.
• Get it in writing.
• Don’t help with filing Bankruptcies!
• Don’t help with filing Motions!
• Don’t go to Court!

15. DON’T ABUSE THE SYSTEM!
• If you do you run the risk of being denied your Bankruptcy Discharge.
• Or, WORSE, criminal charges of perjury and/or Bankruptcy Fraud.

17. FORECLOSURE

18. FORECLOSURE JUDGES
• MIAMI-DADE
• Division Judge handles all issues, except Motion to Cancel Sale and Motion for
Summary Judgment.
• BROWARD
• 3 Judges:
• Judge Lynn Rosenthal: Older than 2011
• Judge Joel Lazarus: 2011 and Younger
• Judge Stone: Trials

19. THE PROCESS
• Valid Service
• Motion to Dismiss/Answer
• Discovery
• Motion for Summary Judgment/Trial
• CT/Writ of Possession

20. PROPER/LEGAL EXECUTION OF
THE PROCESS = MORE TIME

22. SHORT SALES

23. YOU NEED TIME
• Every bank is different.
• 4 Months to Work with is Preferred
• List for 2 Weeks first
• Then take Offer to Bank with:
• With Proof of Buyer’s Ability to Pay
• Fair Mark Value
• Pull Final Judgment Amount
• Photos and provable evidence as to why offer lower the Final Judgment should be accepted. I.e. roof
damage.

24. UNLAWFUL PRACTICE OF LAW
• DON’T GIVE LEGAL ADVICE!
• You want to help your potential client, but protect yourself always.
• Get it in writing.
• Don’t help with filing Motions!
• Don’t go to Court!

25. WHEN YOUR CLIENT MAY QUALIFY
AGAIN FOR A MORTGAGE
• After Foreclosure
• After Short Sale
• After Bankruptcy
• Other Options

27. CFPB CHANGES
• http://www.consumerfinance.gov/
• Making the mortgage process easier
• The Know Before You Owe mortgage disclosure rule replaces four
disclosure forms with two new ones, the Loan Estimate and the Closing
Disclosure. The new forms are easier to understand and easier to use. The
rule also requires that you get three business days to review your Closing
Disclosure and ask questions before you close on a mortgage.

34. LAW OFFICE OF PEGGY URBANEJA
7401 Wiles Road, Suite 208; Coral Springs, FL 33067
(954) 840.0421; www.urbanejalaw.com
AREAS OF PRACTICE
Title/Closings
Bankruptcy
Foreclosure
Family Law
Personal Injury