Bankruptcy Won

(EMAILWIRE.COM, February 19, 2007 ) SACRAMENTO, CALIF – One thing is certain about the residential housing market in the United States today: consumers are confused. This fact is regrettable, but it is true.One thing that many Americans do not understand about the foreclosure process is that filing for bankruptcy will not permanently stop a lender from foreclosing on a home if the borrower stops making payments. In addition, the process of filing for bankruptcy can be expensive (it’s risky to do it without a trained lawyer’s help, and they don’t work for free) and time consuming.According to Patrick McGilvray, J.D., President of the Sacramento-based company The Home Buying Center, LLC (http://www.TheHomeBuyingCenter.com), “many people who contact my company think that they can simply file bankruptcy and prevent their lender from foreclosing on their homes. They don’t understand that filing bankruptcy is more difficult these days due to recent federal legislation and that credit counseling and debt repayment programs may be required.”Mr. McGilvray continued, “at best, bankruptcy can forestall a borrower’s loss of their home, and at worst it can provide a false sense of security. Many borrowers will simply not be able to cure their underlying financial difficulties that led them to default on their mortgage payments, especially if they lied about their income on their mortgage application.”According to many services who track mortgage loan data as many as 90 percent of borrowers in recent years lied about their household income on their applications. Banks are increasingly looking to tighten their lending practices and are requiring many borrowers, especially those who wish to refinance adjustable rate mortgages (ARMs) into fixed rate loans, to prove their income.While this change in lending practices may be good for the overall American economy, many borrowers who took out the so-called ‘exotic mortgages’ will lose their homes to foreclosure and will suffer impaired credit scores for years to come.Contact:Patrick McGilvray, J.D.Tel: 916-920-3278http://www.thehomebuyingcenter.commanny@thehomebuyingcenter.com

Patrick McGilvray, J.D.
Patrick McGilvray, J.D.

manny@thehomebuyingcenter.com