Board Certified Specialist in Bankruptcy
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...]
Although the Home Affordable Modification Program (HAMP) has been widely reported as under-serving those in need, and hat has been our clients' experience here, if you are considering filing for bankruptcy protection or have already done so, and you have also applied for HAMP, this guide explains policies and procedures related to borrower outreach and communication. Chapter 13 bankruptcy must … [Read more...]
As my partner, Rick Mitchell, outlined in "Cash for Keys?" walking away from a mortgage obligation is neither simple nor straightforward.As with short sales, 90%+ of our clients have other debts in addition to the mortgage debt that's addressed in a deed in lieu/cash for keys offer and those debts remain after a deed in lieu or other "mortgage fix." For these people, a deed in lieu is at best … [Read more...]
The term "strategic default" has been in the news. With 25% of American homes valued at less than the balance of the mortgage, and some of those "underwater" mortgage holders out of work it's no wonder.For those who can't stay up late enough to watch Stephen Colbert, here's a video clip on this subject. After he talks about the bankers testifying on Capitol Hill, he gets to The Word: "Honor … [Read more...]
"Strategic default" is a conscious decision by a borrower to stop paying the mortgage(s) on a real property even though the borrower can afford the payment(s). It can happen for a number of reasons and is not a decision to be made lightly or without education about the legal, tax and credit consequences. We have counseled clients about strategic default in these common scenarios: [note]The … [Read more...]
Chapter 13 is a repayment bankruptcy. It is utilized by individuals, and owners of sole proprietorships or other “mom and pop” businesses, not only to obtain a fresh start, but also to retain their assets and reorganize their financial affairs.For most individuals with debt problems, the major decision is whether to file for protection under Chapter 7 or Chapter 13 of the Bankruptcy … [Read more...]
USAToday reported on the impact of loan modifications on credit scores this week. Selected paragraphs: A growing number of cash-strapped consumers are working with lenders to modify their mortgages so they can stay in their homes. But these modifications could wreck consumers' credit. A modification is typically a change in loan terms. Usually, the interest rate is reduced temporarily to lower … [Read more...]
The American Bankruptcy Institute covered this story from New York concerning foreclosures: While the nation’s largest banks come to his court seeking to take the homes of New Yorkers who cannot pay their mortgages, New York State Supreme Court Justice Arthur M. Schack rejects nearly half of the banks’ motions because the foreclosure papers contain errors, the New York Times reported … [Read more...]
As a member of the Better Business Bureau, we review the organization's activity updates regularly. If they affect our clients and prospective clients directly, we highlight them on our blog.What follows is a quote from the BBB on one of the many fraudulent schemes targeting homeowners at risk of foreclosure: The "we buy houses" concept is a variation of the mortgage foreclosure rescue … [Read more...]
Many people want to come in and talk about asset protection are surprised to learn that they have no assets to protect. "How can this be? "I own a car and a house!"Asset protection comes in to play if you own non-exempt property -- property that creditors can reach; or if you anticipate that you may have non-exempt property in the future. Learn by example North Carolina residents are … [Read more...]