Board Certified Specialist in Bankruptcy
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...]
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...]
Sometimes when we tell prospective clients they are better off declaring bankruptcy than hoping for a mortgage modification they believe we're giving self-serving advice. Scroll to the bottom of this post for a comprehensive story from PBS's NewsHour on the modification debacle. Unemployment is the culprit Until employment improves, the housing situation will not improve. Most of the people we … [Read more...]
This week a WSJ article quoted the head of the NY Federal Reserve Bank addressed, saying “the Federal Reserve actively encourages efforts to find viable alternatives to foreclosure, like loan modifications, or deeds in lieu.” Let's take a look at each of these alternatives. How about a modification? If you CAN get a modification, and if the modification allows you sufficient room to pay … [Read more...]
For struggling homeowners trying to avoid foreclosure, the processing errors admitted to by GMAC and Chase could mean an opportunity to challenge the banks. If you can stomach a bit of crude humor, Jon Stewart sums up the situation rather well. Mon - Thurs 11p / 10c Foreclosure Crisis On a more serious note After 40 years of helping families and businesses … [Read more...]
More news on mortgage modification trends. The WSJ reports that borrowers who receive a permanent mortgage modification still have lots of other debt. The median ratio of total debt payments to pretax income stands at 63.5%. This means 20% of borrowers (or more) with permanent modifications are likely to re-default, primarily because of those high debt levels. If you have significant … [Read more...]
We hear this question more and more these days, which is a bit like asking your doctor, "My back hurts. What can I do?" Much, much more information is needed in order to put the problem into context. A problem spanning all income brackets We have seen people in all walks of life in our offices asking for advice, including: Well-heeled married couples with household incomes in excess of … [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...]
Part 1 of this series advised of free consumer protection resources for homeowners in foreclosure who receive offers to purchase their homes before the foreclosure process finalizes. THESE OFFERS ARE USUALLY SCAMS. Go into foreclosure and get sued at the same time? Why are these presumably well-meaning offers usually scams? In general terms, if you enter into a contract to sell a home … [Read more...]