FORECLOSURE ACTIVITY INCREASES 7 PERCENT IN FIRST QUARTER
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Wednesday, April 14, 2010
Obama foreclosure plan makes little impact
In a report released today, a congressional oversight committee concluded that the attempts to keep people in their homes is having little effect. The report from the Congressional Oversight Panel, created by Congress to monitor bailout spending, came as the Treasury prepared to release Wednesday its latest monthly report on the $50 billion Home Affordable Modification Program, or HAMP. That report will show that so far more than 230,000 households had been given permanent reductions in loan payments by the end of March, a Treasury spokeswoman said. That is up from 168,703 a month earlier.
By comparison, nearly eight million households are behind on mortgage payments or already in the foreclosure process.
HAMP loan modifications typically leave borrowers still heavily burdened by debts from second mortgages, car loans and credit cards, the panel noted. The typical household with a HAMP modification still must devote 59% of total income to debt service. "Most borrowers who proceed through HAMP will face a precarious future," the report said, adding that "many borrowers will eventually redefault and face foreclosure."
Even if you can get a modification, that doesn't mean that other options are not a better alternatives, such as bankruptcy, short sale, or a deed in lieu of foreclosure.
For a link to the full report of the panel, click here:
Congressional Oversight Panel: Evaluating Progress of TARP Foreclosure Mitigation Programs
By comparison, nearly eight million households are behind on mortgage payments or already in the foreclosure process.
HAMP loan modifications typically leave borrowers still heavily burdened by debts from second mortgages, car loans and credit cards, the panel noted. The typical household with a HAMP modification still must devote 59% of total income to debt service. "Most borrowers who proceed through HAMP will face a precarious future," the report said, adding that "many borrowers will eventually redefault and face foreclosure."
Even if you can get a modification, that doesn't mean that other options are not a better alternatives, such as bankruptcy, short sale, or a deed in lieu of foreclosure.
For a link to the full report of the panel, click here:
Congressional Oversight Panel: Evaluating Progress of TARP Foreclosure Mitigation Programs
Wednesday, April 7, 2010
Credit Repair After Bankruptcy - Steps To Take
Even after one files bankruptcy, there are still steps that need to be taken to improve your credit score.
1) Be sure to check with credit agencies after filing. Many people are scared to look at their credit report after filing, but you should several months after filing or discharge to be sure everything is accurate. You want to be sure the bankruptcy is listed and any discharged debt doesn't show as anything more than a bankruptcy filing.
More can be found at this article below:
RT @NYDailyNews: There is life after bankruptcy http://bit.ly/c5rWzT
http://www.nydailynews.com/money/2010/04/05/2010-04-05_there_is_life_after_bankruptcy_credit_could_thaw_in_1824_months.html
2) Make attempts to obtain credit after discharge. You can get secured credit cards by applying for that specific type of card. You simply give collateral, such as equity in a car or cash, to show the creditor they have something of value to collect if you don't pay.
3) Any debts not discharged or incurred after filing must be paid on time. Don't think that "oh well, my credit is shot anyway." If you make all your payments on time after filing, you can be on the road to financial recovery.
Chris Barsness
http://www.bankruptcylawyerla.net
1) Be sure to check with credit agencies after filing. Many people are scared to look at their credit report after filing, but you should several months after filing or discharge to be sure everything is accurate. You want to be sure the bankruptcy is listed and any discharged debt doesn't show as anything more than a bankruptcy filing.
More can be found at this article below:
RT @NYDailyNews: There is life after bankruptcy http://bit.ly/c5rWzT
http://www.nydailynews.com/money/2010/04/05/2010-04-05_there_is_life_after_bankruptcy_credit_could_thaw_in_1824_months.html
2) Make attempts to obtain credit after discharge. You can get secured credit cards by applying for that specific type of card. You simply give collateral, such as equity in a car or cash, to show the creditor they have something of value to collect if you don't pay.
3) Any debts not discharged or incurred after filing must be paid on time. Don't think that "oh well, my credit is shot anyway." If you make all your payments on time after filing, you can be on the road to financial recovery.
Chris Barsness
http://www.bankruptcylawyerla.net
Wednesday, March 31, 2010
Loan Modification Changes - Will They Help?
I am sure many of you may have heard about the recent changes and expansions announced last week to the guidelines for loan modifications. I have attached a link to the overview below:
http://www.nacba.org/files/email/Supp_Dir_10-02.pdf
Essentially, the government has heard the problems in the process and are trying to push lenders to start doing things right with more formal procedures and time frames. In addition, they want to expand modifications to homeowners in bankruptcy, provide assistance to those temporarily unemployed, provide cash payments to those who short sell or walk away, and provide more protection from unexpected foreclosure occurring during a modification review.
I must emphasize that these are only guidelines for non-GSE servicers to follow (those other than Fannie Mae and Freddie Mac) on HAM modifications only. There is no real enforcement procedure, it is more of a way to tell lenders that they must comply if they want to get the federal incentives. It took the lenders almost a year to implement the original guidelines announced last February 2009, so it is unknown what effect this will have and how long it will take.
The announcement by Bank of America that they will reduce principal on certain loans sounded like a positive thing; however, it was only done to settle certain cases brought by the Attorneys General of several states and will likely only apply to up to 45,000 borrowers who had certain Countrywide predatory loans.
To say on top of these issues, please follow our blog or visit our website to link to us on Facebook and Twitter. http://www.bankruptcylawyerla.net
Bankruptcy Attorney Chris Barsness
http://www.nacba.org/files/email/Supp_Dir_10-02.pdf
Essentially, the government has heard the problems in the process and are trying to push lenders to start doing things right with more formal procedures and time frames. In addition, they want to expand modifications to homeowners in bankruptcy, provide assistance to those temporarily unemployed, provide cash payments to those who short sell or walk away, and provide more protection from unexpected foreclosure occurring during a modification review.
I must emphasize that these are only guidelines for non-GSE servicers to follow (those other than Fannie Mae and Freddie Mac) on HAM modifications only. There is no real enforcement procedure, it is more of a way to tell lenders that they must comply if they want to get the federal incentives. It took the lenders almost a year to implement the original guidelines announced last February 2009, so it is unknown what effect this will have and how long it will take.
The announcement by Bank of America that they will reduce principal on certain loans sounded like a positive thing; however, it was only done to settle certain cases brought by the Attorneys General of several states and will likely only apply to up to 45,000 borrowers who had certain Countrywide predatory loans.
To say on top of these issues, please follow our blog or visit our website to link to us on Facebook and Twitter. http://www.bankruptcylawyerla.net
Bankruptcy Attorney Chris Barsness
Saturday, March 27, 2010
Treasury's New Attempts To Help Foreclosure & Loan Modification Problems
The Treasury announced more attempts to help borrowers in foreclosure or close to foreclosure including payments toward relocation and short sales, as well as additional help for unemployed borrowers.
It remains to be seen whether these changes will help fix the foreclosure and loan modification problems, including problems facing borrowers going through bankruptcy.
For an overview of these changes, you can read more below:
http://www.nacba.org/files/email/Supp_Dir_10-02.pdf
It remains to be seen whether these changes will help fix the foreclosure and loan modification problems, including problems facing borrowers going through bankruptcy.
For an overview of these changes, you can read more below:
http://www.nacba.org/files/email/Supp_Dir_10-02.pdf
Saturday, March 20, 2010
California Bankruptcy Attorney Uses Chapter 11 to Stop Foreclosure
A bankruptcy filing has the effect of placing a court order stopping foreclosure and eviction. It gives homeowners time to try to work out a solution to their financial problems. Loan modifications are few and far between these days and do not guarantee the bank won't sell the home during the process.
Many people do not realize that Chapter 7 and 13 are not the only alternatives when it comes to filing for bankruptcy. Chapter 11 is a reorganization like chapter 13, but can be used for individuals to accomplish foreclosure relief, debt reorganization, and lien stripping that essentially results in principal mortgage reduction. A homeowner's primary residence 2nd mortgage can only be lien stripped if the home's value is less than what is owed on the 1st mortgage. Rental or investment properties 1st and 2nd mortgages can be lien stripped in certain circumstances in Chapter 11.
Even in Chapter 13, a homeowner can benefit by removing the 2nd mortgage, resulting in more available income.
Consult with a bankruptcy attorney to review your options. Many, including our firm, provide free consultations to see if bankruptcy may be the right option for you.
http://www.bankruptcylawyerla.net
Watch my Twitter page for updates: http://twitter.com/BarsnessLaw
Many people do not realize that Chapter 7 and 13 are not the only alternatives when it comes to filing for bankruptcy. Chapter 11 is a reorganization like chapter 13, but can be used for individuals to accomplish foreclosure relief, debt reorganization, and lien stripping that essentially results in principal mortgage reduction. A homeowner's primary residence 2nd mortgage can only be lien stripped if the home's value is less than what is owed on the 1st mortgage. Rental or investment properties 1st and 2nd mortgages can be lien stripped in certain circumstances in Chapter 11.
Even in Chapter 13, a homeowner can benefit by removing the 2nd mortgage, resulting in more available income.
Consult with a bankruptcy attorney to review your options. Many, including our firm, provide free consultations to see if bankruptcy may be the right option for you.
http://www.bankruptcylawyerla.net
Watch my Twitter page for updates: http://twitter.com/BarsnessLaw
Wednesday, March 17, 2010
How to file bankruptcy - consult a bankruptcy attorney
Record numbers of bankruptcy cases are dismissed by the court as they are not being filed properly. Both local and federal rules of bankruptcy procedure require compliance with filing deadlines and format of forms, schedules, and other documents. People want to avoid the costs of hiring an attorney, but they end up wasting the $300 filing fee and time involved by filing improperly only to have the court dismiss the case 14 to 30 days after filing.
If you are trying to rearrange your finances and get back on your feet, an experiences bankruptcy attorney can help you make sure you handle your case properly. Realize that you are eliminating debts and monthly payments, so an investment in your financial future is worth the cost. Most bankruptcy lawyers are willing to work with you to figure out how to pay the costs involved for their advice and representation.
In addition, a bankruptcy lawyer can explain advantages that you may be able to take advantage of, such as eliminating second mortgages on your home, saving your home from foreclosure, and other pieces of advice and counseling.
http://www.bankruptcylawyerla.net
If you are trying to rearrange your finances and get back on your feet, an experiences bankruptcy attorney can help you make sure you handle your case properly. Realize that you are eliminating debts and monthly payments, so an investment in your financial future is worth the cost. Most bankruptcy lawyers are willing to work with you to figure out how to pay the costs involved for their advice and representation.
In addition, a bankruptcy lawyer can explain advantages that you may be able to take advantage of, such as eliminating second mortgages on your home, saving your home from foreclosure, and other pieces of advice and counseling.
http://www.bankruptcylawyerla.net
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