Homes and Bankruptcy

Alternatives to Mortgage Foreclosure in Montana

02/09/12

“A full-fledged recovery in the housing sector will likely elude the U.S. in 2012.” — Frank Nothaft, chief economist for mortgage-finance company Freddie Mac A rising number of foreclosures and a stagnant economy add up to another difficult year for Montana homeowners. If you are one of the thousands of Montana homeowners in danger of [...]

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Lien Stripping In Chapter 13 Bankruptcy

11/01/11

Avoiding a Second Mortgage in Bankruptcy As a consequence of the decline in the real estate market many clients are asking about the status of their second mortgages. It is not understood by most lay people under what circumstances a second mortgage can be “avoided.” The most common second mortgage scenario in my practice for [...]

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Bankruptcy Reform

10/22/11

People who are facing mortgage foreclosure routinely ask me if they can get their house payment lowered by filing bankruptcy.  This question highlights a common misconception of bankruptcy law, and may be the result of news articles dealing with the mortgage foreclosure crisis.  Last year the House of Representatives passed H.R. 1106: The Helping Families Save Their Homes Act [...]

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Countrywide Home Loans Will Pay $108,000,000 to Customers Affected by its Unfair Lending Practices

08/24/11

Countrywide Home Loans Will Pay $108,000,000 to Customers Affected by its Unfair Lending Practices – and Give Adequate Notice of its Charges to Debtors in Bankruptcy   This Department of Justice News Release is Reprinted Here as an Educational Service It is always prudent for homeowners to check with a lawyer specializing in financial rescue [...]

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I Filed Bankruptcy, My HOA Is Suing Me…

08/23/11

I Filed Bankruptcy, My HOA Is Suing Me… Can My HOA Sue Me After I Filed Bankruptcy? HOA lawsuits to collect delinquent HOA assessments (HOA dues) are on the rise. Most attorneys agree on the reason for this. It used to be that if you didn’t pay your HOA dues, your HOA would simply record [...]

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How is a Short Sale Different from a Foreclosure?

08/05/11

With the housing market the way it is, many people want to know: what is the difference between a short sale and a foreclosure sale?  And what difference does it make in bankruptcy?   In a short sale, you have defaulted on your loan and cannot make the payments, but your lender decides to allow [...]

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Banks Foreclose on Homes With No Mortgage!

08/05/11

 In the current home foreclosure crisis, it seems some banks have become trigger happy.   It has become a bit of a recent anomaly why banks have suddenly and mistakenly gone after some homeowners with whom they have no claim.  Recently, Bank of America mistakenly brought a foreclosure action against a couple who had bought their [...]

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How Does Bankruptcy Affect Your Eligibility for HAMP?

08/04/11

Many homeowners applied for HAMP modifications through The Home Affordable Modification Program in hopes of avoiding bankruptcy. But then they discovered that mortgage servicers are horribly slow in processing the paperwork. Plus, the mortgage companies will not even acknowledge that they received the documents, pushing homeowners closer and closer to bankruptcy. As a result, many [...]

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Will Bankruptcy Affect My Loan Modification?

07/22/11

Whether a debtor files Chapter 7 or Chapter 13, her bankruptcy should have no effect on an already completed loan modification, whether the homeowner is making payments under a trial modification or a permanent one as long as the homeowner continues to make his or her payments. One potential pitfall that may arise, however, is [...]

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Bankruptcy Discharge

07/21/11

A bankruptcy discharge is one of the most common reasons for filing for bankruptcy.  A discharge releases you from personal liability for debts that qualify under federal law.  It is a permanent order granted by a bankruptcy court.  Any debts you successfully discharge in bankruptcy will basically disappear and your creditors can never come after [...]

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