If payments are missed during a Chapter 13 bankruptcy, it does not automatically end the case. In some situations, an attorney can request permission from the court to allow missed payments to be addressed without dismissing the plan.

Bankruptcy can be a strong option for homeowners who are behind on mortgage payments or facing foreclosure.

Not every mortgage loan qualifies for the protections offered by anti deficiency laws or the one action rule. Mitchell Sussman explains that even in states like California where both protections exist, a borrower must still meet specific legal requirements for the laws to apply. If a loan falls outside those guidelines, the bank may still have the right to sue for the unpaid balance. Certain types of loans often fall into this category.

State laws can make a major difference in what happens after a homeowner stops paying a mortgage. Mitchell Sussman explains that in states with anti deficiency laws or the one action rule, a borrower may be able to walk away from the home without personal liability for the loan.

Some states limit what a bank can do after a mortgage default. Mitchell Sussman explains that the one action rule allows a lender to choose only one path when a borrower stops paying. The bank can either foreclose on the home or file a lawsuit to collect the debt, but it cannot do both.

Special Episode 4, Short 1 A short sale occurs when a property is sold for less than the amount owed on the mortgage. This usually happens when the home’s market value drops below the remaining loan balance, forcing the owner to sell at a lower price than the debt. For example, if a home has a $400,000 mortgage but is only worth $300,000, selling it at that price would be considered a short sale because it does not fully cover what is owed to the lender. WATCH VIDEO:...

Are you in need of legal assistance for your real estate transactions in Las Vegas? Look no further than Las Vegas real estate lawyers. ...