How can it be that of the millions of homeowners, loan modification companies, and attorneys applying, less than 200,000 homeowners nationwide have gotten loan modifications? The banks report to Obama that people fall through the cracks because of missing documents or failure to follow up; however, anyone who works in this industry or has tried on their own to get a modification knows that can't be the truth. No matter how many times you submit, resubmit, call, or mail things to follow up, you will no doubt be told everything is fine one day, then that you were supposed to send new paystubs the next day and because you didn't, your file is closed and your home will be sold.
It is quite apparent that the banks have no intention to finalize anything more than a small number of modifications to show the president they are trying. If you are an investor holding loans serviced by these banks, I would be outraged by their either intentional dismissal of help or complete and utter disorganization. Some have theorized that the banks want to take over a large number of homes and only slowly release them for sale to artificially boost the home buying market and prices. This potentially rises to the level of anti-trade violations if there is collusion by several banks to do this by artificially fixing markets and prices. When will the justice department get involved to investigate? Probably never because the banks will just keep blaming everything on homeowners not working with them when we all know that isn't the case.
The only thing that makes sense based upon these facts is an intentionally willingness to not modify loans or stop foreclosures. Not only are large banks possibly doing this, but they then refuse to lend any money to small business or new home buyers. I suggest closing any bank accounts with large banks and opening new accounts with small banks or local credit unions and keep your money out of the hands of the greedy corporations.
I once again call on Congress and the Obama administration to push realistic financial reform and pass legislation to allow primary residence 1st mortgages to be reduced to market value in bankruptcy.
Tuesday, March 16, 2010
Monday, March 15, 2010
Sunday, March 14, 2010
Banks Sue Homeowners Years After Foreclosure
Other states see the same issues regarding lenders coming after foreclosed homeowners years down the road. See the below article for this happening in Nevada.
http://www.lvrj.com/business/underwater-homeowners-leave-behind-mortgages--but-lenders-can-still-come-calling-87612462.html
Bankruptcy may be the best option to avoid worrying about the banks suing a homeowner after a short sale or foreclosure and no one should assume everything is fine when they walk away from a home.
http://www.lvrj.com/business/underwater-homeowners-leave-behind-mortgages--but-lenders-can-still-come-calling-87612462.html
Bankruptcy may be the best option to avoid worrying about the banks suing a homeowner after a short sale or foreclosure and no one should assume everything is fine when they walk away from a home.
Friday, March 12, 2010
Beware Of Personal Liability After Foreclosure Or Walk Away
Many people do not realize that they may face personal liability for certain debts if they walk away from their home or let it go to foreclosure. In California, if the 1st lender forecloses with a trustee sale, any other lienholders, such as a 2nd or 3rd mortgage or line of credit may be able to come after the borrower personally.
In fact, reports are that servicing companies are increasing their efforts to come after people who have been foreclosed upon for these personal obligations. Homeowners need to take steps to avoid going through more financial distress after a foreclosure. Often a Chapter 7 bankruptcy liquidation makes sense after a foreclosure to get rid of all other debts and personal liability.
See the report out today on CNBC:
http://www.cnbc.com/id/15840232?video=1439003187&play=1
Chris Barsness
http://www.bankruptcylawyerla.net
In fact, reports are that servicing companies are increasing their efforts to come after people who have been foreclosed upon for these personal obligations. Homeowners need to take steps to avoid going through more financial distress after a foreclosure. Often a Chapter 7 bankruptcy liquidation makes sense after a foreclosure to get rid of all other debts and personal liability.
See the report out today on CNBC:
http://www.cnbc.com/id/15840232?video=1439003187&play=1
Chris Barsness
http://www.bankruptcylawyerla.net
Wednesday, March 10, 2010
Bankruptcy & Short Sales Better Option Than Modification
The recent announcement by President Obama of incentives to homeowners of $1,500 for selling their home in a short sale is just further evidence that lenders are unwilling or unable to complete realistic loan modifications. The President is realizing that lenders would rather take a short sale loss and move on than deal with modifications.
Many homeowners get emotionally attached to their homes, but they need to be realistic. If you are in a position where you cannot afford the existing payment and are severely behind in payments, it is unlikely a loan modification is going to help. With only 66,000 modifications in 2009 under the Obama HAM program nationwide, it seems unlikely that anything is going to get better.
Once homeowners realize that they may not be able to save their home and realistically think about moving on, they can properly evaluate all possible options. Many homeowners end up losing their homes during a modification review and end up with personal liability on 2nd or 3rd mortgages. Bankruptcy can be a useful tool to resolve some of these issues. It can be used to remove 2nd liens and bring a homeowner current on back owed payments.
The other options are short sales or deeds in lieu of foreclosure. Homeowners should consult with a local real estate or bankruptcy lawyer to be sure they are protecting their finances moving forward.
Chris Barsness
http://www.bankruptcylawyerla.net
Many homeowners get emotionally attached to their homes, but they need to be realistic. If you are in a position where you cannot afford the existing payment and are severely behind in payments, it is unlikely a loan modification is going to help. With only 66,000 modifications in 2009 under the Obama HAM program nationwide, it seems unlikely that anything is going to get better.
Once homeowners realize that they may not be able to save their home and realistically think about moving on, they can properly evaluate all possible options. Many homeowners end up losing their homes during a modification review and end up with personal liability on 2nd or 3rd mortgages. Bankruptcy can be a useful tool to resolve some of these issues. It can be used to remove 2nd liens and bring a homeowner current on back owed payments.
The other options are short sales or deeds in lieu of foreclosure. Homeowners should consult with a local real estate or bankruptcy lawyer to be sure they are protecting their finances moving forward.
Chris Barsness
http://www.bankruptcylawyerla.net
Friday, February 19, 2010
Loan modifications - Have Realistic Expectations
Many homeowners have very emotional connections to their home and it can often cloud their judgment when it comes to trying to save their home. If the homeowner doesn't have steady income, the bank is very unlikely to do anything to keep you in your home. The banks only look to financial performance, reward, and risk, and if you don't have current income, you are extremely risky. The banks see this over and over where they provide some form of assistance only to have the homeowner default down the road because they think they will start doing better financially, only to realize that the economy is not picking up in 2010 as many expected.
If you are living off withdrawals from retirement accounts, credit cards, or loans from family and friends, a mere change in the terms of your home mortgage is probably not going to be enough to save your home. The banks see this other debt and often take it into account when deciding whether to provide you a loan workout. If you think of a modification as a refinance, you will have more realistic expectations. In a refi, if you don't have verifiable income, reliable income, low other debt, and decent FICO scores, it is too risky for the bank and they will say no. Often clients try to argue that it makes financial sense to keep the person in their home versus foreclosing. The banks have their own internal numbers and they are more than willing to take substantial losses to be done with that loan since it is often not a valuable loan for them to service or sell.
Homeowners should think about what if a loan modification is denied, have they thought about turning the house over with a deed in lieu of foreclosure to avoid personal liability for the loan. Have they thought about a short sale to also avoid personal liability for the loan? Do they realize that once the home is in foreclosure, it is very difficult to get back out and foreclosure and evictions on your record are equal to or worse than bankruptcy. A person in bankruptcy can get a rental apartment because they are in a better financial position now that certain debts are gone; however, someone who had to be evicted tells a landlord that if they have to remove that person, it is going to cost time and money because that person is not willing to move out voluntarily.
For more information on bankruptcy, foreclosure, and loan modifications, visit our website or give us a call 888-881-6591.
Chris Barsness, Esq.
http://www.loanlawyermodification.com
If you are living off withdrawals from retirement accounts, credit cards, or loans from family and friends, a mere change in the terms of your home mortgage is probably not going to be enough to save your home. The banks see this other debt and often take it into account when deciding whether to provide you a loan workout. If you think of a modification as a refinance, you will have more realistic expectations. In a refi, if you don't have verifiable income, reliable income, low other debt, and decent FICO scores, it is too risky for the bank and they will say no. Often clients try to argue that it makes financial sense to keep the person in their home versus foreclosing. The banks have their own internal numbers and they are more than willing to take substantial losses to be done with that loan since it is often not a valuable loan for them to service or sell.
Homeowners should think about what if a loan modification is denied, have they thought about turning the house over with a deed in lieu of foreclosure to avoid personal liability for the loan. Have they thought about a short sale to also avoid personal liability for the loan? Do they realize that once the home is in foreclosure, it is very difficult to get back out and foreclosure and evictions on your record are equal to or worse than bankruptcy. A person in bankruptcy can get a rental apartment because they are in a better financial position now that certain debts are gone; however, someone who had to be evicted tells a landlord that if they have to remove that person, it is going to cost time and money because that person is not willing to move out voluntarily.
For more information on bankruptcy, foreclosure, and loan modifications, visit our website or give us a call 888-881-6591.
Chris Barsness, Esq.
http://www.loanlawyermodification.com
Tuesday, February 2, 2010
Eliminate 2nd and 3rd mortgage, reduce principal
Many homeowners are pounding their heads against a wall trying to get lenders to work to get them current or give them some form of loan modification. Many of these homeowners have been taking out of credit cards, personal loans, or other sources just to survive. However, many lenders look at large amounts of other debt negatively when considering your total debt to income ratio in a modification. These homeowners don't realize that a loan modification is not going to suddenly save them from the brink.
Often times a bankruptcy filing is a better option. It can eliminate the other credit card debts, personal loans, 2nd mortgages, and 3rd mortgages. It all depends upon the type of filing under what chapter of the Bankruptcy Code, but it is even possible to force principal reduction in some cases. Although there have been attempts at federal legislation over the last year to allow bankruptcy judges to force modification of terms of mortgages on principal residences, they are always defeated. There are ways to eliminate 2nd mortgages even on principal residences in some cases.
Homeowners needs to look at all their options and not delaying because your lender will move a foreclosure forward no matter how seemingly nice them seem on the phone.
For more information, contact us or view our website.
888-881-6591
http://www.bankruptcylawyerla.net/BankruptcyServices.htm
Often times a bankruptcy filing is a better option. It can eliminate the other credit card debts, personal loans, 2nd mortgages, and 3rd mortgages. It all depends upon the type of filing under what chapter of the Bankruptcy Code, but it is even possible to force principal reduction in some cases. Although there have been attempts at federal legislation over the last year to allow bankruptcy judges to force modification of terms of mortgages on principal residences, they are always defeated. There are ways to eliminate 2nd mortgages even on principal residences in some cases.
Homeowners needs to look at all their options and not delaying because your lender will move a foreclosure forward no matter how seemingly nice them seem on the phone.
For more information, contact us or view our website.
888-881-6591
http://www.bankruptcylawyerla.net/BankruptcyServices.htm
Subscribe to:
Posts (Atom)