Board Certified Specialist in Bankruptcy
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...]
Chapter 7 debtors have several options for their personal property (anything other than land or buildings) that is financed and thus subject to a mortgage lien: Surrender. You can surrender (turn in) the property to the lender and discharge the debt. This often makes good sense where a car is underwater (worth less than what’s owed) or is unaffordable. Reaffirmation. “Reaffirmation” … [Read more...]
Charlotte made the news this week, but not in a way that makes homeowners happy, especially those who are un- or under-employed. The Case-Shiller Home Price Index found that values in the Charlotte market are back down to 2004 levels. In Charlotte, homes are going for 2004 prices. Last year, more than half of the homes sold in surrounding Mecklenberg County were foreclosures, says Mark Vitner, … [Read more...]
I saw an interesting article about a Pennsylvania judge who forces the mortgage companies trying to foreclose on homes in his jurisdiction to first try and work out a modification with the homeowner. Mortgage companies cannot proceed until they have proven a good faith effort to the court. Even that's not enough to help most people save their homes. 20% of borrowers (or more) with permanent … [Read more...]
When we warn clients about the rocky road toward a permanent mortgage modification, and why bankruptcy protection may make more sense for them, they always think THEY will be the one who succeeds. Odds of seeing the Loch Ness Monster are worse, but not by much. Only 35% of applicants have received permanent modifications, and, in our clients’ experience, the permanent modification sometimes … [Read more...]
We all love stories about the "little people" who prevail against the "big bad banks." Recent stories about the so-called "robo-signing" debacle have fueled hopes among people facing foreclosure that they may be able to buy themselves some time or even slip through the clutches of predatory lenders altogether. More luck than legal basis Then there's the story about a Florida woman who's been … [Read more...]
I recently filed a Chapter 11 bankruptcy case to stop a foreclosure that was threatening a well known local church, demonstrating the power of the automatic stay. Chapter 11 is not just for businesses Greater Salem Church was threatened with the loss of its church building. The Chapter 11 filing caused the automatic stay to stop the foreclosure proceeding. This will allow the church membership … [Read more...]
Increasingly, we hear from new clients that they have paid a substantial sum of money to someone who has promised to “stop a foreclosure.” Generally, these new clients tell us that they found “an agency” or “a law firm” online with an out of state address that advertises such services and requires an up-front, non-refundable fee. Behind the slick ads and promises When we ask for … [Read more...]
We often talk to prospective clients who hope to avoid foreclosure and bankruptcy by applying for a mortgage modification. While we always wish them the best of luck, we consider it our professional duty to inform them of what lies ahead if they apply with the Home Affordability Modification Program (HAMP). In October, Bloomberg reported on congressional hearings, which include this fact: even … [Read more...]