Bankruptcy Game Changer May Be Coming Soon

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A new law amending New York’s exemptions may be coming very soon. One thing it may do is increase the homestead exemption. This could make Chapter 13 an excellent option for homeowners who have equity but are behind on their mortgage payments and have credit card debts that they cannot currently afford. With increased exemptions, many homeowners may qualify to keep their homes, reinstate mortgage arrears over 5 years (and also try a loan modification) and also pay their unsecured debts (such as credit cards) only a small percentage (possibly 10% give or take) even if they have $150,000 in equity in their home.

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Many Homeowners Unhappy With Obama’s Program – Bank’s Lose Files Regularly

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MSNBC.com and the Associated Press are reporting about problems with the HAMP loan modification program, Read more

Feds Announce Arrests in Mortgage Fraud Crackdown

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The Department of Justice is undertaking a major crackdown on mortgage fraud and predatory practices. Here is the story.

It’s a reminder to any homeowner – if it sounds too good to be true, it probably is. Be cautious when approached by unregulated unlicensed individuals who claim that they can help you. They sometimes call themselves “loan consultants.”

My firm is assisting several clients who have suffered as a result of various mortgage frauds. We are also handling an appeal to the New York Supreme Court, Appellate Division, Second Department, in a mortgage fraud case.

Even More Questions and Answers: ML 09-23 / FHA-Home Affordable Modification Program

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Following up on my last post, here are some more questions and answers regarding HAMP.

HAMP FAQs

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If you are a New York homeowner looking for help with your mortgage loan, please contact us by email or phone or use our free consult link on this page. Whatever you decide to do, stay away from non-lawyer “consultants.” These people are dangerous and we hear horror stories every day from people who have been scammed by unregulated consultants who promised them the world and then disappeared after taking a fee – this conduct is illegal – and will make a bad situation worse for a homeowner. Lenders are not easy to deal with and this area can be even more confusing once a foreclosure action (lawsuit) has been started. Lender’s lawyers often do not call back homeowners or when they do the conversation can be confusing to a layperson. You may want to see whether bankruptcy will help you.

For those who are interested in HAMP, here is a list of Frequently Asked Questions and Answers.

BORROWER FREQUENTLY ASKED QUESTIONS
Revised March 9, 2010

What is “Making Home Affordable” all about? Read more

A New Problem – Foreclosure and Mortgage Loan Modification When The Loan Is Not In Your Name

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I am seeing a recurring new problem. Many clients and callers own properties with mortgage liens but the mortgage is in someone else’s name, usually a family member like a spouse, parent or cousin. It appears that many such loans were made around 2005 when values were increasing and homeowners refinanced to tap into their new found equity. Some did so out of necessity – to get funds to pay off credit card debts or resolve a mortgage default and catch up on arrears. Others did this to get funds to renovate or repair the property. In some cases, the homeowner/true person interested in the property (i.e. living in the home) did not have good enough credit to qualify for the loan. So instead some of these new loans were made with a family member who had good credit but who really had no interest in the property. Now, flash foward a few years later . . . . Read more