JP Morgan Chase & Co., Citigroup Inc., Morgan Stanley and Fannie Mae have announced they are halting home foreclosures until March 6, 2009, while the Obama administration develops its policy for helping the U.S. housing market.
NPR Airs Story on Judicial Mortgage Modification in Chapter 13 Bankruptcy
Posted on February 12, 2009 Written by
Here is a report that aired on National Public Radio this morning about the judicial mortgage modification bill pending in Congress.
“On Capitol Hill, Democrats are supporting a bill that would let judges block home foreclosures. The measure would allow bankruptcy judges to alter home loans. Industry insiders say that would cause more harm than good, but economists disagree.”
Congress Considers Judicial Mortgage Modification in Chapter 13 Bankruptcy
Posted on February 11, 2009 Written by
The Helping Families Save Their Homes in Bankruptcy Act of 2009 is pending in Congress. If passed, chapter 13 debtors will be able to rewrite their delinquent mortgage loans by lowering the loan balance to the value of the home, reducing interest rates, eliminating the variable rate and fixing the interest rate, and stretching out the mortgage over 40 years. The goal is to lower the payments enough to make them affordable for the borrower to keep the home and avoid foreclosure of the mortgage.
Mortgage bankers want your home not your money. They oppose the law change and are lobbying against the proposed legislation.
Mortgage Loan Modification Programs
Posted on February 11, 2009 Written by
Here is a collection of voluntary mortgage loan modification programs from various lenders in the United States collected by the National Consumer Law Center, America’s consumer law experts.
Some lenders will modify and some won’t. Mortgage modification agreements are being offered by some lenders. But all mortgage modification agreements are not equal. Here’s what’s happening in the real world, today.
Relying on lenders to do voluntary mortgage modifications has not been successful thusfar. Less than 10% of the voluntary modifications result in reduced principal, more than half capitalize the unpaid interest onto the loan balance, and a third of the modifications reduce the monthly payment while almost half have monthly payments increases.
Foreclosure Fixes Failing
Posted on January 25, 2009 Written by
DATA: MORTGAGE “FORECLOSURE PREVENTION†FIXES FAILING TO WORK, U.S. HOME FORECLOSURE TOLL NOW EXPECTED TO RISE EVEN HIGHER TO EIGHT MILLION
Near Half of Homeowners in “Loan Modification†Programs Face Higher Monthly Payments; Failure of Voluntary Industry Efforts Hikes Pressure on Incoming Obama Administration, New Congress to Clear Way for Court-Supervised Modifications.
WASHINGTON, D.C.//December 19, 2008//Much hyped “foreclosure prevention programs†relying on voluntary loan modifications are failing to reach a significant number of troubled homeowners and are often backfiring when they do so, according to newly updated research released today by the National Association of Consumer Bankruptcy Attorneys (NACBA). The across-the-board failure of these much ballyhooed “fixes†for the foreclosure crisis are expected to result in the new President and Congress facing considerable new pressure to clear the way for court-supervised loan modifications that will prove more beneficial for homeowners. [Read more…]
New Year's Resolutions for Resolving Debt
Posted on January 3, 2009 Written by
Here are five New Year’s resolutions my blogging colleague, Peter Orville of Upstate New York, made for people with debt problems, each highlighting an article found on the pages of Debt Law Network, Credit Law Network or Bankruptcy Law Network.
- Create an emergency fund.
- Don’t gamble.
- Don’t sign up with a “Debt Settlement†company.
- Seek advice from a good bankruptcy attorney.
- Don’t prepare and file a bankruptcy petition without a lawyer.
Pets Abandoned in Hard Times
Posted on December 27, 2008 Written by
People struggling financially are making tough choices and are being forced to give up their pets. Almost daily people are bringing dogs and cats they can no longer care for to the Topeka animal shelter.
Recently a man brought in two skinny dogs, saying he couldn’t afford to feed them. “He had to feed his kids first,” an intake worker at the Helping Hands Human Society told the Topeka Capital-Journal.
The shelter is filling up with dogs and cats [Read more…]
Conversion Moots Negative Equity Case
Posted on December 21, 2008 Written by
Court watchers will have to wait for another case to find out how the U.S. Court of Appeals for the Tenth Circuit will rule on the so-called negative equity issue. Â The Court dismissed the appeal in In re: Hunt, No. 07-3297, as moot after the debtor converted his case from chapter 13 to chapter 7 bankruptcy.
The ruling disappointed the creditor, Wells Fargo Bank, N.A, which urged the Court to proceed with the appeal despite the conversion. The Court ruled against the creditor saying the existence of other cases on the same legal issue and the desire for binding appellate authority was not sufficient reason to make an exception to the mootness doctrine. Courts are required dismiss a case when a controversy no longer exists. [Read more…]
NCLC Collects Mortgage Modification Information
Posted on December 20, 2008 Written by
National Consumer Law Center (NCLC), America’s consumer law experts, has collected information about the mortgage industry and government sponsored loan modification programs for combating foreclosure.
Loan Modification Programs Chart
Walking Away from the House
Posted on December 9, 2008 Written by
Cathy Moran, my blogging colleague on the Mortgage Law Network, discusses whether you should prevent foreclosure and keep the house. Walking away from the house is one solution for a homeowner who can’t afford to repay the mortgage loan balance and the house is worth at least as much as you owe. A deficiency judgment, if one is taken in the foreclosure, can be discharged in bankruptcy. Here is a pay or go calculator to help you assess whether you should walk away from your mortgage.
New Rule: Chapter 13 Mortgage Payments Through Trustee
Posted on September 20, 2008 Written by
The Kansas Bankruptcy Court adopted a new rule requiring chapter 13 debtors behind on mortgage debts when the bankruptcy case is filed to be paid through the trustee. The rule goes into effect for cases filed on or after October 1, 2008.
Proponents of the new rule say the chapter 13 trustee records will aid the court in protecting debtors from charges for inappropriate fees and from false allegations of nonpayments. Opponents of the new rule object to the chapter 13 fee (up to 10%) added to the to the mortgage payments, creating additional financial hardship for debtors.
New Standing Order 08-02
Posted on August 15, 2008 Written by
The U.S. Bankruptcy Court for the District of Kansas issued Standing Order 08-02 eliminating the requirement of notice to creditors by the chapter 13 trustee in certain circumstances. Here is the text of the order:
Notice to all creditors of post-confirmation motions to modify plan, which notice is required by Fed. R. Bankr. P. 3015(g), is waived when the motion is filed by a Chapter 13 Trustee, and the sole purpose of the motion to modify plan is to recover an asset that Debtor has been ordered to repay to the estate, but which he/she has not repaid. The only notice required will be to the Debtor and Debtor’s Attorney. This Standing Order will expire March 17, 2009.
Attorney General Six Gives Foreclosure Advice – Get Attorney, Learn Options
Posted on February 21, 2008 Written by
Kansas Attorney General Stephen N. Six issued the following statement on home mortgage foreclosure this week, urging people facing foreclosure to seek help from an attorney.
Home foreclosure is a growing problem in Kansas and across the nation. Mortgage fraud and subprime lending have left many homeowners stuck with home loans they can no longer afford.
My office recently convened a task force to investigate this problem. Consumer advocates met with representatives from lending and real estate industries to determine ways we can stem the tide of home foreclosure in Kansas. [Read more…]
Board Certification Renewed for Jill Michaux
Posted on February 10, 2008 Written by
Jill Michaux has earned recertification in consumer bankruptcy law by the American Board of Certification. She was awarded her 15 year pin as a consumer bankruptcy specialist.
She was the first Kansas lawyer to be board certified in consumer bankruptcy law. Her partner, Mark Neis, was second. Today, they are the only board certified consumer bankruptcy specialists in Topeka and two of ten in Kansas.
Board certification means that Jill has met rigorous, objective standards and has demonstrated expertise in consumer bankruptcy law. She goes the extra mile to keep current on bankruptcy law changes by attending national seminars, participating in daily e-mail updates and by attending several times the hours of continuing legal education required by Kansas.
You expect certification from your doctor – expect it from your lawyer too. Hiring an attorney with expertise in any specialized field of law, such as bankruptcy, can be a bewildering experience. As a client, you want to make sure your attorney is experienced in consumer bankruptcy law. Choosing a board certified specialist in one way to make sure.
