foreclosure Tag

27 Dec HAMP Mortgage Modifications and Bankruptcy

HAMP, the Home Affordable Modification Program which can modify a mortgage, is no way to avoid bankruptcy. It's a heart-breaker. It builds up false hopes andthendestroys them. That's my conclusion from reading the new Congressional Oversight Panel report. I haven't written on HAMP because I've questioned...

Read More

17 Nov Residential Short Sale Can Be A Trap

Underwater loans and a difficult real estate market have made short sale of homes a popular alternative to bankruptcy or foreclosure. However, bankruptcy may be a better option than short sale. Homeowners, trying to do the “right thing” are learning that no good deed goes unpunished. The short sale of homes often causes more problems than it solves. A short sale of real estate means that the property is sold for less than the amount required to pay debts secured against it. This type of transaction requires the cooperation of the primary lender and any other creditors to whom the property was pledged as security. Many lenders and practically all realtors are eager to participate in a short sale. It results in a commission for the realtor and liquidates collateral for the lender. It is the homeowner who often gets the short end of the stick.
Read More