If your primary goal was to save your home, you may have done so.
R&B and pop singer Toni Braxton filed for bankruptcy for the second time in 12 years in October. Despite selling more than 40 million records, he listed between $ 10 and 50 million in debt in his bankruptcy programs in his second presentation. Braxton filed documents prior to his bankruptcy notifying the court of his intention to remain in his single-family residence and specifically sought to modify his mortgage to do so.
Her lender, the holder of Braxton’s mortgage debt, recently filed documents seeking relief from the automatic stay in the singer’s bankruptcy proceedings to foreclose or take other actions in Braxton’s Duluth, Georgia, reported Home the Wall Street Journal. His lender stated that Braxton did not have any equity in the property and that the lender’s interest in the property is not adequately protected. The lender stated that Braxton owes $ 1.5 million on his mortgage, while the property is worth $ 1.2 million.
The problem for Toni is that a bankruptcy judge does not have the power to modify the mortgage on a primary residence. Bankruptcy laws allow a debtor to pay any pre-application defaults or arrears during the life of the bankruptcy plan. However, a debtor basically has to keep up with the mortgage in the future. The lender must agree to any changes to the mortgage. The lender in Toni’s case appears determined to put more pressure on her and is unlikely to make any changes to the mortgage.
If a mortgage is the main problem pushing you toward bankruptcy, you should seriously consider non-bankruptcy resolutions before putting all your energy into filing a bankruptcy case. You can take a number of avenues to deal with your mortgage problems, including negotiations, using different federal programs, and different people to consult. Make sure you don’t make the mistake of wrongly counting on bankruptcy to save your home if a mortgage is your main financial problem.