Archive for Foreclosure Articles

Bankruptcy Reform Contributed to Foreclosure Crisis

According to a WSJ report, Wenli Li of the Federal Reserve Bank of Philadelphia made some strong arguments regarding repealing the bankruptcy laws.  She notes of the serious consequences that arose from the tightening of the federal bankruptcy laws in 2005 that contributed to a significant increase in home loan defaults.  The study concluded that [...]

Major Provisions of House Mortgage Bankruptcy Bill

The House of Representative’s housing rescue plan includes a controversial measure backed by President Obama to let bankruptcy judges rewrite mortgages to reduce monthly payments for debt-strapped homeowners. It also contains other loan modification measures to stem the tide of foreclosures and keep credit flowing. Here are the major provisions:
 
_ Allow bankruptcy judges to lower [...]

Bankruptcy Law Being Modified

This new bankruptcy law measure could give bankruptcy judges more power to modify primary home mortgages. Congress is poised to give bankruptcy judges more power to modify primary home mortgages in an attempt to halt the foreclosure crisis, a move Democrats and housing advocates have been pushing for two years in the face of stiff [...]

Most Mortgage Servicing Giants Agree To Foreclosure Prevention Plan

Two-thirds of mortgage servicers have agreed to implement the foreclosure-mitigation policies outlined by Treasury Secretary Timothy Geithner last week, a top Senate Democrat said Wednesday. According to a senior financial-industry lobbyist, this includes the four-largest national mortgage servicers: Bank of America Corp., Citigroup Inc., J.P. Morgan Chase & Co. and Wells Fargo & Co.
 
Senator Charles [...]

Mortgage Relief Versus Bankruptcy

Loan Modification Plans- Also known as mortgage modification options has quickly become the best option for homeowners facing home foreclosure. Loan workouts are not the only mortgage relief solution for homeowners looking for protection from foreclosure because of delinquent home loan payments. However; it is an option that can save your home while putting you in [...]

Automatic Stay

Automatic stay is a significant benefit for homeowners in a chapter 7 bankruptcy. The automatic stay provision protects consumers against creditors from debt collector’s debts from because they are not allowed to call or send you additional collection letters.
The creditors are prevented from continuing any legal action against you, or repossess your car or [...]

Lien Stripping Eliminates Home Equity Loans

Debtors who find themselves in serious financial trouble may have or will soon have several liens placed on them. Lien stripping has become a new trend led by lawyers who negotiate a settlement for the 2nd mortgage.  A lien is a recorded document that states that the Debtor owes the creditor a certain amount of [...]

Debt Relief Companies Expand Services With Debt Settlement and Attorney Backed Mortgage Relief Programs

Amid the ongoing housing and credit crises, even as some of the country’s largest mortgage lenders announce a moratorium on foreclosures and unveil various loan modification initiatives meant to help homeowners stay in their homes, the number of foreclosures nationwide has quadrupled since the fall of 2007. Foreclosure rates rose 81% in 2008 from the [...]