23 Feb A New Foreclosure Every Thirteen Seconds
According to The Center For Responsible Lending 6,600 new foreclosures are filed every day in the United States. That works out to about one new foreclosure every thirteen seconds. A map of foreclosures for each state in 2009 is available on the center’s website. There are two types of foreclosure process generally used to terminate the interest of defaulting borrowers and remove them from their homes. A judicial foreclosure requires a court filing and a ruling by a judge. A non-judicial foreclosure is started and completed without the use of the courts.
In some states, a homeowner can be out on the street in as little as 90 days after the foreclosure is commenced. The proposal for judicial modification of home loans is presently being considered by the 111th congress. This author, as well as many other members of the National Association of Consumer Bankruptcy Attorneys, has lobbied in favor of passing the Helping Families Save Their Homes in Bankruptcy Act of 2009. This important legislation, at least in part, has been incorporated in the Obama administration Homeowner Affordability and Stability Plan.
If the proposed legislation passes and judicial modification of home loans is permitted in bankruptcy, even homeowners who don’t file bankruptcy will be helped. Pressure on lenders to modify unreasonable loans benefits all homeowners. The prospect of enforced modification in a bankruptcy proceeding will help bring loan servicers to the table and encourage them to modify bad loans before the borrowers default.
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