Loan Modification & Bankruptcy
Homeowners seeking to modify their loans under the HAMP program may encounter issues with the loan modification when they file for Bankruptcy under Chapter 7 or Chapter 13. In the early days of the HAMP program I used to caution people who were still in their trial modification term to wait until it was over before filing a Chapter 7. The reason was that lenders would routinely cancel the trial modifications due to bankruptcy filings. Over the past two years as the HAMP program has evolved such actions have become more rare. Although I still...
read morePrivate Mortgage Insurance Paying Underwater Borrowers
PMI Group, a private mortgage insurer, has announced that it will be paying some borrowers cash to stay in their homes. The goal of the program is to prevent mortgage defaults, which naturally cost the insurer. Through its subsidiary, Homeowner Reward, borrowers who are underwater on their homes and choose to participate in the program will receive cash incentives of between 10% and 30% of their outstanding principal balances. The catch? Borrowers must remain current on their mortgages from between 36 and 60 months. Homeowners interested in...
read moreBank of America May Not Have Standing to Conduct Arizona Foreclosure
In early June, the Ninth Circuit Court of Appeals Bankruptcy Appellate Panel issued several decisions in similar cases dealing with the issue of whether lender has standing to prosecute a motion to lift the automatic bankruptcy stay. One of these cases, Sardana v. Bank of America, N.A., contains some interesting insights into the way Bank of America assigned notes and retained servicing rights. Sardana involved a Chapter 13 debtor who fell behind on her mortgage payments during the course of her Chapter 13. Bank of America (BAC) moved to lift...
read moreFighting Fraud in Bankruptcy Act of 2011
On May 25, 2011, Senator Patrick Leahy (D-VT) introduced a bill (S.1054, full text available here) titled the “Fighting Fraud in Bankruptcy Act of 2011″ (hereinafter “FFBA”). The FFBA is aimed at providing additional tools to the U.S. Trustees to protect homeowners from lenders who file fraudulent claims. These additional tools consist primarily of remedies against those who assert or assist in the assertion of fraudulent claims in the bankruptcy court. The available remedies are broad and left to the Judge’s...
read moreHelp for Artists
KarmaCounsel.org, the first donation only legal services website in the U.S., is now accepting inquiries from artists and other creative individuals in need of legal counsel on a donation only basis. This service is only available to individuals residing or working in California or Arizona. If you are an artist, writer, musician, or other creative individual in need of legal counsel, KarmaCounsel.org provides an alternative to the for-profit law firm world. Artists may submit their issue online and an attorney will contact them to discuss...
read moreDonate to a Good Cause
The world is becoming an increasingly stratified place. Many people have prospered through the recent recession and many people have struggled. We are all, however, in this world together. One irony of financial downturns is that those people who may need legal help the most are the least likely to be able to afford it. While there are numerous public interest organizations our there that provide free legal services to the extremely poor, many people are turned away from these organizations because they are employed. A new organization is,...
read moreDonation Only Bankruptcy Help
KarmaCounsel.org is now providing an alternative method for Arizona and California individuals to obtain help with a bankruptcy. Based on the principle that helping others sows positive seeds for the future, KarmaCounsel.org connects people with attorneys willing to work on a donation only basis. The website fills the gap between those public interest organizations who only help the indigent and the for-profit law firms who serve only themselves. The concept is simple. Clients needing help submit their information online and receive a call or...
read moreUsing Nontraditional Credit Data
The modern credit score carries with it so much meaning for most Americans that it has become part of our identities. Potential employers use it to gauge our trustworthiness and consistency. Creditors use it to determine whether to lend to us. Government agencies use it during security clearances and background checks. There is a lot our credit scores do not say about us, however. For those of us who rent our primary residences, our history of rental payments is generally not reported to the credit bureaus (unless you live in one of the 8...
read moreForeclosures Slowing Nationwide
Looking at the statistics for April 2011, the pace of foreclosures and trustee sale notices has slowed dramatically compared to last year. In Los Angeles the rate is down a full 17.41%. This slowing of foreclosures, however, does not necessarily mean less families are in trouble. Many still are. Rather, the slowing is likely indicative of banks intentionally slowing the foreclosure process as a result of increased scrutiny into their practices. In many markets, the backlog is allowing homeowners to stay in their homes for several years without...
read moreRent vs. Buy Calculator
Depending on who you ask, it always seems to be a good time to buy real estate for one reason or the other. The current flavor of argument goes something like this: The housing market has either bottomed out or does not have too much further to fall; Mortgage interest rates are at historical record lows; and Rents seem likely to rise given low vacancy rates. These arguments, however logical they appear, are entirely market-based. Whether or not buying is a better decision than renting depends on many other factors unique to each...
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