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At the peak of the financial crisis the State of Michigan saw dramatic increases in the number of homeowners who were facing foreclosure. As the foreclosures skyrocketed, the values of Michigan homes plummeted. Michigan, as well as much of the nation, was in a death spiral. However, due to action by the Federal Reserve and the White House the housing crises was ended and over time the surplus of homes on the market has started to decrease. Add that to the mortgages companies willingness to hold onto some of their inventory and we now have a recovering marketplace.
As the values of homes in Michigan increase, mortgage companies are once again beginning to increase the rate of their foreclosure filings. Homes that were once considered not to be worth the costs of the foreclosure process are now being targeted as potential money makers for mortgage companies that are once again on a mission to make a profit at all costs. Due to this fact many homeowners are seeing themselves faced with a foreclosure on a home that they haven’t made payments on in over five years. For many of these individuals they haven’t even known who owns their mortgage for years. Payments were not an option. Now they face foreclosure on their home and they need to know where to turn. However, when they call most bankruptcy firms they are told that they are too far behind on their mortgage payments for a Chapter 13 to be successful. They are turned away often by law firms who refuse to even take the time to sit down with them and try and come up with a solution.
I am here to tell you that for may of these individuals Chapter 13 is absolutely an option. While it is true that a Chapter 13 bankruptcy cannot force a modification onto a bank, that does not mean that a Chapter 13 is not an excellent place to seek a modification. A Chapter 13 plan can be filed in good faith that proposes to seek a plan modification while the Chapter 13 case is pending. This strategy allows the Debtor to be protected by the automatic stay while the Debtor and the bank work towards a modification to save the home. While there is no guarantee of success, this strategy is often successful in modifying the mortgage. The bottom line, if you are told by an attorney that a Chapter 13 cannot help you because you are too far behind on your mortgage, seek a second opinion.
Second Chance Legal Services is a bankruptcy law firm located in Madison Heights, MI. While we are located in Oakland County, we service Wayne, Oakland and Macomb County residents. As Detroit Bankruptcy Attorneys we specialize in helping individuals escape their burden of debt in order to get a fresh start on their bright future.
Because of our small size our clients get individual attention. You will have the same bankruptcy attorney throughout your case whether you are in a Chapter 7 Bankruptcy or a Chapter 13 Bankruptcy. Your attorney will help guide you through the bankruptcy process in order to help you get a successful discharge of your debt.
It is important to note that Macomb County Bankruptcy Attorneys, Oakland County Bankruptcy Attorneys and Wayne County Bankruptcy Attorneys all deal with the same judges and trustees. This is because all Michigan Bankruptcies are filed with the federal bankruptcy court in Detroit, MI. For this reason, it is important that you choose an attorney not by location but rather by how comfortable you feel with them when you meet. If you don’t feel comfortable with their knowledge, their experience or their demeanor you should seek out an attorney that you do feel comfortable with.
If you are interested in speaking with a Detroit bankruptcy attorney from Second Chance Legal Services, please contact our office at 248-629-6367 for a free initial consultation.
Debtors looking for relief from constant phone calls and mailings from bill collectors may wonder about how bankruptcy protection works. You may see and hear advertisements on the television and radio about using bankruptcy to stop bill collection activity, but many may not understand how the process works or even realize they may qualify to [...]
(305) 891-4055 - Over 25 Years of Experience - Over 8,000 Cases Filed - 1221 Brickell Ave., 9th Fl., Miami, Florida - Jordan E. Bublick - www.bublicklaw.com
Chapter 7 personal bankruptcy is used to discharge your dischargeable debt including credit cards, medical bills, and unsecured loans.
Chapter 13 personal bankruptcy is used to formulate a chapter 13 plan that will reorganize one's secured (such as a mortgage or car loan) and unsecured debt (such as credit cards and personal loans). (305) 891-4055 - Jordan E. Bublick is a Miami Bankruptcy Lawyer with over 25 years of experience in filing Chapter 13 and Chapter 7 Bankrkuptcy Cases. Bankruptcy Attorney Jordan E. Bublick has filed over 8,000 Chapter 13 and Chapter 7 cases.
The Atlanta newspaper recently published an article reporting that over 40% of homes in the metro Atlanta area are “underwater,” meaning that they are worth less than what is owed. In such a climate, homeowners faced with years of payments on real estate with no chance for even a break even sale, much less profit are deciding to simply walk away.Abandoned homes, of course, cause neighborhood values to decline even more, continuing the downward cycle. Presumably, at some point property values will level off but it may take years, if ever, for values to rise to pre-2008 levels.In years past, mortgage lenders would act quickly to secure their rights by initiating foreclosure proceedings against homeowners who defaulted on their loans. We have seen far less foreclosure action in the metro Atlanta area over the past few years because lenders are worried about potential liability arising from procedural irregularities (the “robo-signing” problems) and because the federal government has put a great deal of pressure on the big mortgage companies not to foreclosure during a bad recession.
Because foreclosure activity has been restricted, real estate markets in large metro areas like Atlanta have stagnated. Thousands of homes remain in limbo – payments are not being made but foreclosures are not being processed. Towards the end of 2012 and on-going, however, we are starting to see an uptick in foreclosure activity.Demand for housing is increasing, especially for homes in the $75,000 to $150,000 range and lenders want to clear out their inventory. Foreclosure numbers are trending upwards and will likely to continue to do so. As such, it may be helpful to you to understand a bit more about how foreclosure law in Georgia works.Foreclosure law in Georgia is governed under Georgia Code Section44 Title 14. These laws are very specific about notifications to borrowers, deficiency judgments and rights of redemption. 1No Requirement for Court Involvement in GeorgiaGeorgia is considered a title theory state, which means that the mortgage lender actually holds the title to a property until such time as the borrower has paid his debt in full. Mortgages in Georgia almost always contain a power of attorney clause which says that in the event of default, the borrower (you) authorizes the lender to sell the property at public sale in the event of default. Again, no court involvement is required but lenders are required to provide notification of the foreclosure sale to the borrower.There are two steps required for notification:First, the lender must send you a written demand notice outlining all past due amounts allowing the borrower 10 days to pay in full. If the borrower does make this payment, the lender cannot assess any foreclosure fees.The second step is a foreclosure schedule notification which must be published for at least four consecutive weeks in the local newspaper. In addition, the borrower must be re-notified within 15 days of the sale via certified mail.Once the notification requirements are met, a foreclosure sale must only take place on the first Tuesday of the month at the courthouse steps of the county where the property is located. If you were to visit your local county courthouse on foreclosure Tuesday you will see mortgage company lawyers auctioning off property to the general public.In many foreclosure sales, however, the only bidder for the property is the foreclosing mortgage company. This is because a third party purchaser or investor would have to satisfy the outstanding first mortgage before taking title. If the first mortgage debt on the property is greater than the value, a buyer would have to pay more than the property is worth to take title – obviously no one will do this, so in underwater mortgages, the lender “bids in” an offer equal to the outstanding principal balance.Deficiency ClaimsIf the lender “buys” the property for the outstanding first mortgage balance, that lender can pursue a deficiency claim against the borrower. However, under Georgia law (O.C.G.A. Section 44-14-161(a) the only way a lender can pursue a deficiency judgment is to file a lawsuit in Superior Court asking a judge to confirm the deficiency. This “confirmation” basically means that the superior court judge agrees that the lender’s assertion about fair market value is legitimate and that the lender’s calculations about its outstanding balance are accurate.A confirmation judgment is a very serious problem for the borrower/former homeowner. Once this judgment is issued, the former homeowner’s assets area at risk, his bank account is subject to levy and his paycheck is subject to wage garnishment.If have received a notice of foreclosure out any deficiency claim along with the rest of your unsecured debt., it would be wise to talk to a lawyer about your options. Ginsberg Law Offices is a bankruptcy law firm and we can counsel you about Chapter 13 - which you could use to stop the foreclosure, and Chapter 7 – which you could use to wipe.We can also answer your questions about timing and non-bankruptcy options. We can be reached at 770-393-4985 and we are standing by to answer your questions.
- The Georgia Attorney General’s web site contains an easy to read summary setting out the rules for foreclosure in Georgia. You can visit the Attorney General’s site here. ↩
The post How Does Foreclosure Law Work in Georgia appeared first on theBKBlog.
The Atlanta newspaper recently published an article reporting that over 40% of homes in the metro Atlanta area are “underwater,” meaning that they are worth less than what is owed. In such a climate, homeowners faced with years of payments on real estate with no chance for even a break even sale, much less profit are deciding to simply walk away.Abandoned homes, of course, cause neighborhood values to decline even more, continuing the downward cycle. Presumably, at some point property values will level off but it may take years, if ever, for values to rise to pre-2008 levels.In years past, mortgage lenders would act quickly to secure their rights by initiating foreclosure proceedings against homeowners who defaulted on their loans. We have seen far less foreclosure action in the metro Atlanta area over the past few years because lenders are worried about potential liability arising from procedural irregularities (the “robo-signing” problems) and because the federal government has put a great deal of pressure on the big mortgage companies not to foreclosure during a bad recession.Because foreclosure activity has been restricted, real estate markets in large metro areas like Atlanta have stagnated. Thousands of homes remain in limbo – payments are not being made but foreclosures are not being processed. Towards the end of 2012 and on-going, however, we are starting to see an uptick in foreclosure activity.Demand for housing is increasing, especially for homes in the $75,000 to $150,000 range and lenders want to clear out their inventory. Foreclosure numbers are trending upwards and will likely to continue to do so. As such, it may be helpful to you to understand a bit more about how foreclosure law in Georgia works.Foreclosure law in Georgia is governed under Georgia Code Section44 Title 14. These laws are very specific about notifications to borrowers, deficiency judgments and rights of redemption. 1No Requirement for Court Involvement in GeorgiaGeorgia is considered a title theory state, which means that the mortgage lender actually holds the title to a property until such time as the borrower has paid his debt in full. Mortgages in Georgia almost always contain a power of attorney clause which says that in the event of default, the borrower (you) authorizes the lender to sell the property at public sale in the event of default. Again, no court involvement is required but lenders are required to provide notification of the foreclosure sale to the borrower.There are two steps required for notification:First, the lender must send you a written demand notice outlining all past due amounts allowing the borrower 10 days to pay in full. If the borrower does make this payment, the lender cannot assess any foreclosure fees.The second step is a foreclosure schedule notification which must be published for at least four consecutive weeks in the local newspaper. In addition, the borrower must be re-notified within 15 days of the sale via certified mail.Once the notification requirements are met, a foreclosure sale must only take place on the first Tuesday of the month at the courthouse steps of the county where the property is located. If you were to visit your local county courthouse on foreclosure Tuesday you will see mortgage company lawyers auctioning off property to the general public.In many foreclosure sales, however, the only bidder for the property is the foreclosing mortgage company. This is because a third party purchaser or investor would have to satisfy the outstanding first mortgage before taking title. If the first mortgage debt on the property is greater than the value, a buyer would have to pay more than the property is worth to take title – obviously no one will do this, so in underwater mortgages, the lender “bids in” an offer equal to the outstanding principal balance.Deficiency ClaimsIf the lender “buys” the property for the outstanding first mortgage balance, that lender can pursue a deficiency claim against the borrower. However, under Georgia law (O.C.G.A. Section 44-14-161(a) the only way a lender can pursue a deficiency judgment is to file a lawsuit in Superior Court asking a judge to confirm the deficiency. This “confirmation” basically means that the superior court judge agrees that the lender’s assertion about fair market value is legitimate and that the lender’s calculations about its outstanding balance are accurate.A confirmation judgment is a very serious problem for the borrower/former homeowner. Once this judgment is issued, the former homeowner’s assets area at risk, his bank account is subject to levy and his paycheck is subject to wage garnishment.If have received a notice of foreclosure out any deficiency claim along with the rest of your unsecured debt., it would be wise to talk to a lawyer about your options. Ginsberg Law Offices is a bankruptcy law firm and we can counsel you about Chapter 13 – which you could use to stop the foreclosure, and Chapter 7 – which you could use to wipe.We can also answer your questions about timing and non-bankruptcy options. We can be reached at 770-393-4985 and we are standing by to answer your questions.
- The Georgia Attorney General’s web site contains an easy to read summary setting out the rules for foreclosure in Georgia. You can visit the Attorney General’s site here. ↩
The post How Does Foreclosure Law Work in Georgia appeared first on theBKBlog.
According to Reuters – U.S. borrowers are increasingly missing payments on home equity lines of credit they took out during the housing bubble, a trend that could deal another blow to the country’s biggest banks. The loans are a problem now because an increasing number are hitting their 10-year anniversary, at which point borrowers usually must start paying down the principal on the loans as well as the interest they had been paying all along.
More than $221 billion of these loans at the largest banks will hit this mark over the next four years, about 40 percent of the home equity lines of credit now outstanding.
According to the article “What is happening with home equity lines of credit illustrates how the mortgage bubble that formed in the years before the financial crisis is still hurting banks, even seven years after it burst. By many measures the mortgage market has yet to recover: The federal government still backs nine out of every ten home loans, 4.6 million foreclosures have been completed, and borrowers with excellent credit scores are still being denied loans.”
At Wells Fargo, $4.5 billion of home equity balances will reset in 2014 and another $25.9 billion will reset between 2015 and 2017. At Citigroup, $1.3 billion in home equity lines of credit will reset in 2014 and another $14.8 billion will reset between 2015 and 2017.
Read more…
The post Home Equity Loans Next Wave of Defaults appeared first on Diane L. Drain - Phoenix Bankruptcy & Foreclosure Attorney.
Jordan E. Bublick is a Miami Personal Bankruptcy Lawyer with over 25 years of experience in filing chapter 13 and chapter 7 bankruptcies. Miami Personal Bankruptcy Lawyer Jordan E. Bublick has filed over 8,000 chapter 13 and chapter 7 cases.
November 20, 2013 the Consumer Financial Protection Bureau announced an enforcement action against payday lender Cash America International, Inc., one of the largest short-term, small-dollar lenders in the country. The company has agreed to reimburse up to $14 million to approximately 14,000 people for robo-signing practices related to debt collection lawsuits. The company will also pay a $5 million penalty for the violations and other misconduct.
Those eligible for a full refund if they paid money because of a collections lawsuit from January 1, 2008 through October 1, 2012 to any of the following companies:
Ohio Neighborhood Finance, Inc., d/b/a Cashland
Cash America Pawn, Inc. of Ohio
Cashland Financial Services, Inc.
Cash America Net of Ohio, LLC
Ohio Neighborhood Credit Solutions, Inc.
CNU of Ohio, LLC.
If you have not already received your refund, or think you received the wrong amount of refund, please contact the company administering the refund no later than May 19, 2014. You can call them at (877) 524-8480 or find more information on their website: www.voluntaryloanrefundprogram.com
Problem with a payday loan? Submit a complaint online or by calling (855) 411-2372.
The post $14M Reimbursement to Payday Loan Borrowers appeared first on Diane L. Drain - Phoenix Bankruptcy & Foreclosure Attorney.
I recently received a phone call from a realtor. They were representing one of my clients whom had filed for Chapter 7 Bankruptcy. This client had contacted the realtor to list their home for short sale so that they could get it out of their name and get rid of their obligation to maintain the home. The realtor had signed an agreement with the client, listed the home and received several offers. After receiving the offers they contacted me to get a copy of the bankruptcy paperwork to provide as part of their hardship package. Much to their dismay they quickly learned upon contacting my office that the bankruptcy was not yet complete. Yes the bankruptcy had been filed over a year ago. Yes the discharge had been granted almost a year ago. No that does not mean the case is over and no that does not mean that the Debtor has the authority to sell the home.
When an individual files for bankruptcy all of their property is transferred into their bankruptcy estate by operation of law. This means that no deed is signed, not title is transferred, the property is just automatically transferred to the bankruptcy estate. While the bankruptcy remains open all property of the state is under the control of the Bankruptcy trustee who is charged with running and administering the bankruptcy estate. While the estate remains active only the bankruptcy trustee has the authority to sell the property. In Michigan many trustees are holding cases open for one or two years after the bankruptcy is discharged to determine if their is any possibility of recovering money through a below value bid at the Sheriff’s sale. In this case the Trustee had done just that. The active portion of the bankruptcy was over, but the case remained open.
Beyond this Debtor’s lack of authority to list the home, this realtor was potentially facing another more serious problem. When an individual is in an active bankruptcy they are not allowed to hire any professionals without bankruptcy court approval. If the sale were to go through this realtor would be facing both the risk that the trustee would invalidate the sale leaving the realtor open to lawsuits from the purchaser, but also would be facing the prospect that the trustee could allow the sale to go through but simply void the commission of the realtor and keep it as part of the estate’s property to distribute to other creditors.
The lesson this realtor learned is that anytime a client comes to her to list a home and discloses that a bankruptcy was filed within the last three years the realtor should first contact the individuals bankruptcy attorney to determine the status of the case. Additionally, the realtor should work closely with the bankruptcy attorney if the case does remain open to ensure that all proper authorizations are received
Second Chance Legal Services is a bankruptcy law firm located in Madison Heights, MI. While we are located in Oakland County, we service Wayne, Oakland and Macomb County residents. As Detroit Bankruptcy Attorneys we specialize in helping individuals escape their burden of debt in order to get a fresh start on their bright future.
Because of our small size our clients get individual attention. You will have the same bankruptcy attorney throughout your case whether you are in a Chapter 7 Bankruptcy or a Chapter 13 Bankruptcy. Your attorney will help guide you through the bankruptcy process in order to help you get a successful discharge of your debt.
It is important to note that Macomb County Bankruptcy Attorneys, Oakland County Bankruptcy Attorneys and Wayne County Bankruptcy Attorneys all deal with the same judges and trustees. This is because all Michigan Bankruptcies are filed with the federal bankruptcy court in Detroit, MI. For this reason, it is important that you choose an attorney not by location but rather by how comfortable you feel with them when you meet. If you don’t feel comfortable with their knowledge, their experience or their demeanor you should seek out an attorney that you do feel comfortable with.
If you are interested in speaking with a Detroit bankruptcy attorney from Second Chance Legal Services, please contact our office at 248-629-6367 for a free initial consultation.
When it come to bankruptcy fee quotes and prices for Oregon and Washington consumers, Northwest Debt Relief Law Firm has been offer a combination of two pricing elements that the other bankruptcy firms leave out. We have been doing this for years.
First, we offer certainty. Call me up and I will tell you exactly what you will pay. While our Portland, Seattle, Vancouver and Salem offices are all in pretty convenient locations, there is just no need to brave rush hour traffic or give up half your Saturday just to get the information that you need. My experience is that the bankruptcy firms that won’t immediately tell you what they charge probably have something to hide, namely high prices.
Second, we offer real bankruptcy payment plans. You will see many other firms offering them, but they are payment plans in name only. The usual arrangement is that you gradually pay all of your fees and then they file your case. Hard to believe that this kind of arrangement is some kind of favor to you. These bankruptcy installment payment plans are really more like the old lay-away plan where you keep dropping off money and six months to a year later once you have handed over well over a thousand dollars in cash they actually do something for you.
What we offer is a real payment plan where you pay part of your attorney fees prior to filing and then after your bankruptcy is filed, you pay the rest of your attorney fees as well as your filing fee for the court in seven monthly installments. Now that’s a payment plan. We take the lowest amount up front that the bankruptcy court will allow prior to filing. Moreover, we make it so that you don’t get needlessly garnished or harassed by getting you under the protection of the bankruptcy court as quickly as legally possible. We even offer a discount if you decide you don’t want to do a payment plan and would rather pay all the fees up front.
I will look forward to hearing from you and addressing all of your bankruptcy pricing questions immediately.
The original post is titled Oregon and Washington Bankruptcy Prices and Fee Quotes , and it came from Oregon Bankruptcy Lawyer | Portland, Salem, and Vancouver, Wa .
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