(picture from University of Pennsylvania blog on regulations) The most common question I get for a long time is what happens if I do not, or cannot, pay my mortgage? If you can afford to continue paying, and are current, there is really no bankruptcy alternative. The so-called “strategic default” option is to simply stop [...]
second mortgage
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 and then destroys them. That’s my conclusion from reading the new Congressional Oversight Panel report. I haven’t written on HAMP because I’ve questioned its relevance to bankruptcy, but a number of clients [...]
A second mortgage lien in the wife’s individual Chapter 13 bankruptcy case has been stripped by a Court, even though the mortgage and lien were in the name of the wife and her non-filing husband. Eastern District of Michigan bankruptcy Judge Rhodes wrote the opinion, finding the debts totally unsecured. In each case, it was [...]
The U.S. government will not have the right to modify distressed home mortgage loans if the government acquires mortgage-backed securities as part of a $700 billion Wall Street bailout, the Center for Responsible Lending (CRL) said today. Only court-ordered loan modification in chapter 13 bankruptcy will prevent home foreclosures in CRL’s view. Why? The holders [...]
