Under the BAPCPA (the 2005 Amendments to the Bankruptcy Code), to file Chapter 7 bankruptcy, a debtor must pass a test. The test is in some respects very simple, and in others very complex. The very first step (which can be relatively easy) is to compare a debtor’s income to the median income for the State in which they live. These “median income numbers” are published by the Federal Government, and are adjusted annually. Come November 1, 2009, for the first time since the law was implemented, the median income for most states is going down

With all of the bad news these days, I thought should look at some of the more positive little-known tips and tricks if you are negotiating the difficult waters of foreclosure and/or bankruptcy.

Did You Know . . .

An article written by Orlando Realtor® Judy Chapman on her “Orlando For Sale” blog caught my eye the other day. The article, which had a follow-on, described in the context of realistic appreciation expectations, how long a homeowner may expect it to take for their home’s value to return to the height of the market values. In the case of Orlando property, she projects that it could take more than 10 years for values to return to their high point from 2007. So, being curious, I performed the same little analysis on Orange County, California home values . . .

Of the inquiries we receive, I believe one of the more common questions starts something like this:

“I am a tenant renting a home, and today I received a notice from the bank that they are going to foreclose on the house. What is going to happen?”

The answer is a mixed bag of good and bad. At this point, a little background is important . . .

Earlier today I posted an article discussing Foreclosure and Tenants. I will re-post this article sometime tomorrow as recent Federal legislation was just brought to my attention which may substantially affect the rights of tenants in foreclosure. More to follow tomorrow.

David