The Street reported on August 5, 2011 that banks are stepping up their efforts to facilitate short sales of properties in which the outstanding balance on the mortgage exceeds the present market value of the property (also known as being “Upside Down” or “Underwater”). Basically, the banks have finally realized that they have to get…Read more
Paying Back Student Loans: A Love/Hate Relationship
You’re a first year grad student, and the thought of repayment doesn’t even cross your mind. “That’s so long from now!” At every semester’s start, you long for the day you stand in the long financial aid line to get the check. The grad school years go by and, in the last year, you go…Read more
What happens at the Meeting of Creditors?
Section 341 of the United States Bankruptcy Code provides creditors the right to meet with the debtor to determine if a discharge or a reorganization of debt is appropriate based upon the facts and circumstances presented by a debtor in their bankruptcy petition. While creditors technically have the right to attend these proceedings, and to…Read more
Post Petition Mortgage and Auto Payments in Chapter 13 Bankruptcy
In most Chapter 13 cases, debtors are required to continue (or resume) making regular monthly mortgage or auto loan payments directly to their lenders. Remember, lenders will be tracking your performance carefully, so it is important to remit them on time. Here’s some tips about making those payments. From my experience, many lenders will not…Read more
Voluntary Mortgage Defaults – Just Walking Away
Earlier today, an article, written by Roger Lowenstein for the New York Times, discussed the pros and cons of homeowners, who have mortgage balances that exceed the value of their homes, voluntarily defaulting on their mortgage obligations and, in essence, preparing to walk away from their homes. Voluntary defaults are far from a new phenomenon. …Read more
Is the Mortgage Modification Process simply a prelude to a Chapter 7 or Chapter 13 Bankruptcy Filing?
In one of my recent posts, I listed a series of myths that you may encounter regarding the mortgage loan modification process. Upon further reflection, I may have discovered a major flaw in the entire mortgage modification process. On September 13, 2009, Newsday reported that the number of Long Island homeowners that had mortgages that…Read more