Foreclosure News

28 Nov Bankruptcy And Mortgage Mediation/Modification

The words Mortgage Modification and/or Mediation and Bankruptcy were never used in the same sentence because we all know that a debtor in Chapter 13 bankruptcy cannot use the Bankruptcy Code to modify a primary mortgage on their residence. However, in the wake of this economic challenge, the winds of change are blowing, and we are starting to see cracks in the old walls. Now, Bankruptcy Judges are creating the changes they wish to see. In Orlando, Florida, the Bankruptcy Judges, Chapter 13 Trustee, Debtors Attorneys and Creditors Attorneys started a mediation program to assist debtors who wanted to save their homes. Under the current Bankruptcy Code and existing case law, this may be impossible under certain circumstances, however, there is nothing in the Bankruptcy Code or existing case law which prohibits the parties from a mutually agreed modification of the mortgage. So far, the program has seen a great deal of success.
Read More

27 Sep Should I Keep Paying My Mortgage if My Home Was Destroyed in a Natural Disaster?

Natural disasters have recently destroyed countless homes and uprooted huge numbers of individuals and families. When the flood/hurricane/tornado/wildfire is over you focus on the destruction to your home, car, and business. You concentrate your concerns on whether or not you should rebuild, and on how to put your family’s life back together. In upstate New York we have suffered through the wake of Hurricane Irene and Tropical Storm Lee. The Binghamton, NY area experienced the second “500 year flood” in five years. Entire neighborhoods and towns were under water. Tens of thousands were evacuated, and many returned to condemned homes. In the wake of this destruction many face the dilemma of what to do about their mortgage payments and other debts. Usually, the credit industry puts out “public service announcements” reminding people in disaster areas to keep paying their mortgage, car payments and credit card debts or risk late payment fees, damaged credit scores and foreclosure. But many people did not have or could not get flood insurance. So in the overall scheme of things, how high a priority should it be to stay current on the mortgage and debt payments? What help is available? And what steps can you take to relieve some of the pressure?
Read More

06 Sep Another Appeals Court Circuit Approves Second Mortgage “Stripping,” Even in No-Discharge Chapter 13 Cases

The Bankruptcy Appellate Panel for the federal Eighth Circuit Court of Appeals has added its voice to the other nine circuits that have have ruled in favor of wholly unsecured second mortgage lien stripping in chapter 13.This means that debtors in the Eighth Circuit (Minnesota,...

Read More

24 Aug Foreclosed Homes Bulldozed by Bank Of America, Wells Fargo, and Chase

Stephen Gandel, senior writerover at Time Magazine, discussed the recent news from Bank of America of BOA's plans to donate lots after bulldozing 100 foreclosed Cleveland homes. The lots will be donated to local government authorities. That donation adds to earlier donations of...

Read More