Sarasota foreclosure action overwhelms home owners, forcing them into bankruptcy BEFORE understanding their options or the consequences!
Last week, Charles informed me he’d lost 3 “distressed” property listings when the owners decided they’d had enough.
They’d decided to “threw in the towel.”
“…throw in the towel?” I asked.
You see, Charles (like me) is a real estate agent helping homeowners avoid foreclosure. Rather, he (and I) try to help struggling homeowners avoid foreclosure.
We do NOT succeed 100% of the time.
You see, short sales are challenging…banks, in case you haven’t heard, are fat and happy with all our taxpayer bailout money. Banks and bankers are not eager to help anyone but themselves.
Charles and I hand banks great offers to purchase distressed properties at fair market value and banks (shockingly!) will reject the offers, only to sell after foreclosure for $20,000-$30,000 LESS than the offers I gave them.
This, my friend, is reality!
Turns out, Charles’ customer had remained patient for months as Charles negotiated short sales on 3 investment properties.
Unfortunately, these property owners (elderly husband and wife) couldn’t take any more emotional duress. They’d had enough….
Now, it’s BANKRUPTCY…they’re filing “BK” and they don’t know what to expect in court in front of the judge.
Click Read More below now for the FAQs a judge in a federal bankruptcy courtroom asks BK filers, who claim this is the longest 6 minutes of their lives.
SARASOTA FORECLOSURES END WITH BK QUESTIONS
Charles’ customers were “throwing in the towel” and filing bankruptcy.
Charles asked me what it’s like to show up in federal bankruptcy court to stand before the judge.
I’ve worked with home owners who have been forced in to bankruptcy.
I’ve sat with them in a “BK” courtroom…a very solemn place…as people of all socio-economic conditions step forward when their names are called to take the oath and answer the judge’s questions.
On nearly every face, you see embarrassment, defeat & fear. Rarely do you see the “new beginning” you might expect to see.
It’s the BOTTOM for many people. Literally, they’re at the end of their proverbial rope…and the blank stares common in a federal BK courtroom typify the “end.”
NOTE: Bankruptcy court is open to the public. Lawyers request their clients keep answers clear and short.
When a BK filer’s name is called, he/she/they will walk to the front, facing the judge. The trustee will take the BK filer’s photo ID & Social Security card & administer the oath.
Next, the judge commonly asks the following questions, amounting to about 6 minutes of pure hell:
- Tell the court your name, address & social security number or tax ID number.
- What is your telephone number.
- Did you list all your property?
- Did you list all your debts?
- What did you pay your attorney (i.e. $2000 + filing fee for instance).
- Do you have any gold, jewelry, coin collections, guns, art objects that you did not include in your filing?
- Within 90 days of your bankruptcy did you repay any old debts?
- Within three years of bankruptcy did you transfer any of your assets to any children or relatives or repay old loans?
- How do you happen to find yourself in bankruptcy (NOTE: this is where I hear attorneys advising clients to be brief & mindful of their words).
- Do you expect a tax refund? If so, how much do you expect?
- Has anyone you know died recently? Do you expect to inherit anything?
- What business interests have you had during the past few years?
- Does anyone owe you any money? If so, how much and what is his/her/their name and address?
- Where did you get the value for your home, i.e. appraisal, broker price opinion, tax records for instance)?
- Where did you get the value for your car, i.e. DMV, appraisal, Kelly Blue Book for instance?
- Did you consider chapter 13 (if you’re filing chapter 7)?
- Do you have cash value life insurance?
- Have you had anything repossessed or foreclosed on in the last year?
- Did you review the petition before you signed it and is it true and complete in every way?
What is your experience with bankruptcy? Any different questions a judge asks? Was “BK” a new beginning or shameful baggage carried around for years? Please scroll down & share your experience. I am not an attorney and don’t try to answer questions about whether bankruptcy is right for anyone.
Sarasota foreclosures (more and more often) lead to bankruptcy. When you or someone you know ends up in federal bankruptcy court, try to see the horrible event as a new beginning. Also keep in mind, you still (and should) pay back the real people who helped you out financially but whom you had to betray by including their “help” in your bankruptcy.
Welcome back! Got a question for me...or an experience to share? Please go to the bottom of this article to ask a question or share an experience. :) Thank you!
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