Foreclosure News

25 Nov Loan Modifications to Avoid Bankruptcy? 7 Tips to Help.

Since the mortgage market collapsed, loan modifications to avoid foreclosure have become industry and government policy. Many people hope to modify their mortgages to avoid having to give up their homes and file bankruptcy. The process is deceptively simple to get involved in - and easy to get burned by, even if you are working with a reputable modification agency. Here are a few simple tips to keep in mind. Keep copies of everything. Your home is your most important investment. Keep everything the mortgage lenders send you about it and about any modification you are working on. A corollary is to keep notes of every conversation you have with them as well.
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10 Nov What Happens to my Second Mortgage Obligation if my First Mortgage Lender Forecloses?

I recently received the following question from a reader of my Atlanta bankruptcy law web site:
I live in Georgia. If my 1st mortgage goes to foreclosure, what happens to my second mortgage?
Here are my thoughts: if the holder of a first (or senior) mortgage forecloses, all junior mortgage liens are wiped out. However, that does not mean that the debt goes away – it just means that the first lender gets the property free of the junior claims. The junior lender no longer has the property as security, but the second mortgage lender can still try to collect from you. Holders of defaulted second mortgage notes are often very aggressive, but they also know that their chances of collection are limited. After all, if you couldn’t pay to keep your home, how much money are you likely to have to pay another debt? They also know that they will get nothing if you declare bankruptcy. This means that you can often settle for 10% to 30% of the debt. Keep in mind that the creditor in all likelihood is an investor who bought bundles of notes from failed financial institutions, paying pennies on the dollar.
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15 Oct Foreclosure Court taints the legacy of Florida’s Senior Judges

[caption id="" align="alignleft" width="188"] Senior Judges need a nap[/caption] Judges are put in a position to shape their communities for decades, and Florida’s Circuit Civil Judges are no different. They decide extremely critical issues facing Floridians ranging from real estate development to the death penalty. They create new families through adoption and end broken families through divorce. At some point in a judge’s career, he (or she) begins to think about the legacy he leaves behind, and when a judge retires, he reflects upon his body of work and hopes that his unbiased rulings helped shape his community for the best.
Don’t count on it.
Yes, there are those judges who truly believe that they must uphold the rule of law, and they are easy to spot. They are deliberate and struggle with each issue. They scrutinize sworn witnesses in an attempt to ascertain the truthfulness of their testimony, and they patiently listen to and absorb the finely tuned arguments of lawyers. They are human, but they sincerely try to put aside their preconceived opinions in an honest attempt to rule on the merits of the case.
I have had the distinct pleasure of being beaten by better lawyers before judges who just flat disagreed with my legal arguments. I walk away from those cases dejected but satisfied that society is better off for having resolved a question of law, even if I lost. However, nothing rips the idealistic heart out of a lawyer like a judge who KNOWS he is ignoring the law, and nothing angers an idealistic lawyer more than a rigged system of justice, especially when the result is destroying faith in democratic justice and the community at large.
Now, just imagine how I feel about an entire band of retired Florida judges who have sold their integrity and legacy to the American Bankers Association. These rocket docket judges follow a pre-stated agenda, not the law, in ramming foreclosure cases through the newly created “Foreclosure Division.”
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13 Oct Foreclosures Stopped by Bank of America: Not Always Good News

Foreclosures by Bank of America have been stopped in all 50 states, which is good news for many homeowners frustrated by foreclosure documentation problems. It is good that some of the mortgage industry's widespread problems are being examined, but stalled foreclosures may not be beneficial for everyone. This may actually worsen problems for some borrowers, and all borrowers should be aware of pitfalls that can result from this temporary relief.
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