Mortgage Issues

25 Jan Chapter 13 Debtor’s Beware: Recurring Problems With Mortgage Companies – Part 1 “Double Dipping”

Mortgage companies are well known for havingnumerous and continuous problems keeping a proper accounting of the mortgages they hold. This is particularly true in the context of aChapter 13 case where the mortgage company is paid by the Chapter 13 Trustee for the pre-petition arrears, and by the homeowner for the ongoing post-petitionmonthly mortgage payments. Oftentimes, the problem with the mortgage company is that one department has no idea what the other department is doing within the same company. Usually,the one who gets hurt by this practice is the homeowner. Oneflagrantongoing problem is that of “double dipping”.
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31 Dec New Year’s Resolution–Don’t Be Financially Illiterate

Anyone who works with consumers these days--attorneys, housing counselors, lenders, and brokers and, for that matter, anyone who reads media reports on the mortgage crisis--has no doubt reacted to some tale of financial woe like this: "How could anyone be that dumb!" We've all heard some version of the exploding ARM, the payments which are higher than the borrower's monthly income, the "liar's loans" with no proof of income (or anything else) required. Whether we are reacting to the lender's nonsensical approval of the loan, or the borrower's outrageously optimistic assumptions, at some point we come across a scenario that just boggles the mind. Of course, in many of those cases, there is an explanation, if you know the background. Many transactions which appear ridiculous in hindsight made perfect sense, or at least some sense, at the time they were transacted. But there may be a bigger issue at work here: Americans' abysmal financial literacy.
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