Board Certified Specialist in Bankruptcy
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...]
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...]
RealtyTrac is chock full of information about foreclosure trends. Here's a map of Mecklenburg County's foreclosure hot spots based on September 2011 data. The Charlotte region leads the state in the number of foreclosures. We wish more Charlotteans at risk of losing their homes educated themselves and this series we wrote on foreclosure is a good place to start. For answers to your specific … [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...]
This week The Charlotte Observer that GMAC's mortgage troubles have spread from the original 23 states reported in early September. In a letter sent to GMAC this week, N.C. Assistant Attorney General Philip Lehman said the state has received information indicating that GMAC Mortgage employees "routinely signed off on large numbers of (foreclosure) affidavits" without properly reviewing them. … [Read more...]
This NYT article reports that GMAC has halted foreclosures in 23 states. For homeowners in North Carolina here's the noteworthy aspect of the article: States where the moratorium is being carried out include New York, Connecticut, New Jersey, Illinois, Florida and 18 others, mostly on the East Coast and in the Midwest. All of the affected states are so-called judicial foreclosure states, where … [Read more...]
Earlier this summer Standard and Poors published an article that included data on Charlotte North Carolina home prices, reporting that home prices slipped 2.8% from last year (May 09 to May 10). The big picture: foreclosures, home prices, personal finance Foreclosures tend to drag down home prices, complicating the housing market's struggle to recover. The housing rebound that economists once … [Read more...]