The Chapter 13 Wave Is Coming – Choose The Right Lawyer To Save Your Home

I suspect that there are going to be more Chapter 13 bankruptcy filings soon. This posting explains why and what you can do if you are considering Chapter 13 as a way to save your property or resolve debt problems Read more

Senate Considers New Foreclosure Bill

As a member of NACBA (National Association of Consumer Bankruptcy Attorneys), I just received an interesting email concerning the attempts in Congress to deal with the foreclosure crisis. The main issue is whether modification of residential mortgages will be permitted under Chapter 13 of the Bankruptcy Code. Read more

More Window Dressing: New Project Lifeline Initiative Will Help Very Few

A new government initiative called Project Lifeline was announced this week. It is supposed to put foreclosures on hold for 30 days while lenders look for ways to make the mortgages more affordable. For most people this will be a useless program that will only create false hopes. There are several reasons why. Read more

Home Foreclosure and Debt Cancellation

The IRS has an informational page on the new debt forgiveness relief law. For those interested in short sales, it makes sense to read this and discuss it with your accountant. Read more

Foreclosures At All Time High

Recent reports say that mortgage foreclosure rates were at an all time high last year, mostly due to subprime adjustable rate mortgages. No surprise there. I am seeing this every day “in the trenches.” Many of the callers to my firm are homeowners who bought a property around 2005 or 2006 with 100% or close to 100% financing. Some did 80/20 loans with poor terms on the 20% part. Most have maxed out their equity, thus eliminating selling or refinancing as a way out of foreclosure now. Chapter 13, loan modifications, forbearance agreements, and short sales look to be the main alternatives for many during 2008.

When Banks Mess Up Accounting Make A Qualified Written Request

As the mortgage foreclosure mess grows, banks are complaining that they cannot properly comply with accounting rules on modified loans because they never developed systems to deal with so many restructurings. Some attorneys may be able to take advantage of lender’s mistakes and convince courts to block foreclosures. One strategy is to start with a qualified written request under Title 12 USC Section 2605 .