Board Certified Specialist in Bankruptcy
Mortgage modifications are rare. Modifications for second mortgages present challenges of their own. Clients who are in financial difficulty are well advised to consider a Chapter 13 bankruptcy case as an option when they are current on their first mortgage but are not paying, in full and on time each month, their second mortgage (including a home equity loan or other debt secured by the … [Read more...]
After several years of speaking with our clients about loan modifications to save homes and hearing a sad litany of misinformation and outright deceptions, it has become painfully obvious that loan modifications are more smoke and mirrors than reality.Does this mean that there is nothing that homeowners can do to try to save their homes? Unfortunately, in most instances the answer is … [Read more...]
This video of a Charlotte, NC family being foreclosed upon by their homeowners association (HOA) is a cautionary tale illustrating the power of HOAs.If you are facing a foreclosure by your homeowners association, or are substantially behind on HOA dues and have concerns about how to resolve this, you are not alone and a bankruptcy filing may be a viable solution. A story in The … [Read more...]
According to the Wall Street Journal, nearly 40% of homeowners who took out second mortgages are underwater on their loans, more than twice the rate of owners who did not take out such loans. Second mortgages have made it more difficult for troubled borrowers to negotiate loan modifications with lenders. Economists say borrowers with second mortgages on homes that are underwater are far more … [Read more...]
We have seen how sloppy and aggressive foreclosure processes have taken a toll on homeowners, neighborhoods and the economy in general. Last week's news of a House panel examining lapses and gaps in mortgage servicing regulation caught my attention, but I don't expect a speedy resolution. State attorneys general and the Justice Department are advanced talks with JPMorgan Chase & Co. … [Read more...]
With 23.5 percent of Charlotte metro area homes valued at "negative equity" (or near it) mortgage holders are looking for exit strategies, including short sales.An article in Charlotte Magazine described the dynamics behind the "surge" in short sales like this: Legal challenges have put a halt to many foreclosures, and the government is encouraging banks to accept short-sale offers from … [Read more...]
Everyone knows that in the event payments are missed, there has been a default. However, many business people overlook the fact that there can and often are other contract provisions that do not involve the payment of money which can trigger a default. These are known as non-monetary defaults.Bank loan agreements, leases, and other types of commercial contracts provide for events of … [Read more...]
This opinion piece by economist Paul Krugman about mortgage company shenanigans garnered 463 comments before the NYT closed the comment section. If you are trying to get your mortgage refinance or modified, you'll find plenty of company among the disgruntled commenters but not much in the way of advice. You need a bankruptcy attorney for that.Dr. Krugman endorses the Oscar-winning film … [Read more...]
Many of our bankruptcy clients who are homeowners have been in contact with their mortgage company in an effort to modify their mortgages and keep their home. Most of them are behind on their mortgage payments either because of a trial modification at a reduced monthly payment, or because they simply cannot timely pay their entire regular monthly payment.In either situation, after a bankruptcy … [Read more...]
Some Chapter 7 debtors are current on their mortgage obligations at the time of the bankruptcy filing, and there is no equity (value above mortgages and liens on the property) that can be reached by creditors. In this situation, the debtors may keep, and continue to own, the property throughout the Chapter 7 case and after the case it is closed – so long as they continue to uphold their end of … [Read more...]