Stopping Foreclosure – Call the lender, then call a lawyer

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MSNBC has an interesting article on stopping foreclosure which suggests a common sense approach. Just call the lender.

In my experience, this makes sense but many times lenders are just stubborn or aggressive and are not willing to help. Most of my clients have already called the lender with little results. And, of course, even if a lender is willing to work with a borrower, it still makes sense for a homeowner to call an attorney to represent him or her. The lenders have sophisticated attorneys. Homeowners need legal counsel too. If you own property in foreclosure and are about to work something out with your lender, keep in mind that the lender is not your friend and does not have your well-being or best interests in mind, no matter how nice that rep on the phone may seem. Also keep in mind that in most cases no agreement with the lender will be enforceable unless it is in writing. Foreclosure law can be a minefield for the pro se defendant.

Here’s the article . . . Read more

Short Sales And Foreclosure

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The NY Times wrote an interesting piece on how short sales can help borrowers in foreclosure. In my experience, I have seen many people talk about short sales but it doesn’t always work out. Whether a bank will agree to this varies from one loan to another. Read more

Chapter 13 Seminar For Bankruptcy Lawyers

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The New Deal For Consumer Bankruptcy seminar, 4th Annual Presentation, will be held on September 7, 2007 from 9:15 a.m to 4:45 p.m., in historic Hyde Park, New York. I attended this seminar last year and found it to be very informative, especially with the Bankruptcy Laws in flux since they were revised in October 2005. Judges Gerber, Gerling, Morris and Peck will be speaking on a panel of other bankruptcy experts. Judge Peck currently hears Chapter 13 cases in the Southern District of New York in Manhattan which also has jurisdiction over cases filed by Bronx residents. I expect that Chapter 13 and the recent mortgage crisis will be one of the primary topics of discussion.

Mortgage Problems Are About To Explode Into A Chapter 13 Epidemic

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The New York Times ran three separate stories this weekend regarding the mortgage crisis and the problems many homeowners now face. In short, too many people maxed out their equity. Many people bought homes or refinanced at or near 100% of the value of their property using loans that had adjustable rates. The thinking was that they could always refinance later, especially because property values had risen over the last few years, peaking in 2005. Now, with the market slowdown and the failures of subprime mortgage lenders many homeowners are facing increased monthly payments that they cannot afford. Those that cannot qualify to refinance in this restricted mortgage market will find that Chapter 13 may be their only viable option. I am getting calls every day from many people interested in this option. For those that have sufficient income, my firm helps them create a 3 to 5 year repayment plan to reinstate their mortgage in Chapter 13.

Here is the NY Times article: Read more

Countrywide Financial Runs Out Of Money

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Countrywide Financial Corp, the nation’s largest mortgage lender, is having serious trouble funding it’s loans. This is part of the overall mortgage crisis. Lenders are going out of business. Others can’t fund loans. All have restricted their lending guidelines. The mortgage market has gotten a lot tougher for homeowners: Read more

American Home Mortgage and Other Lenders Are Filing Bankruptcy

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American Home Mortgage has filed for bankruptcy. Other lenders have also recently filed. For the owner of distressed property, this topsy turvy news is not good. Bottom line, there are less lenders out there available to refinance and those that are still viable have more restricted underwriting guidelines for new loans (i.e., refinancing).

Here is the story on the American Home Mortgage bankruptcy – Read more