Yes, if you can afford them. You can reaffirm the debt on all real property by filing a Statement of Intentions indicating your desire to reaffirm in your bankruptcy. If you owe arrearages on these properties, you will probably want to file a Chapter 13. A Chapter 13 will let you cure your arrearages over time and so bring your balance current with your mortgagor. You do not have to give up any real property, but depending on your exemptions, you might have to pay extra money through your Chapter 13 Plan to keep any property that is not exempt. Contact a Jacksonville Bankruptcy Attorney now to find out about what exemptions you qualify for.
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Another Foreclosure Mill out of Business
The original foreclosure mills are starting to drop like flies. The Florida Foreclosure Defense Lawyers Blog has an article on the fate of the latest victim of the foreclosure fraud crisis, Ben-Ezra & Katz who is shutting down its operations. While not as large as the David J Stern firm who shut down a few months ago Ben-Ezra & Katz had almost 600 employees. The company’s demise began in February when the company lost all of its foreclosure business from Fannie Mae due to the mishandling of Fannie Mae’s foreclosure files.
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Proposed Bankruptcy Foreclosure Mediation Bill Advances
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Mortgage Delinquency Rate Falls to Lowest Level Since 2008
According to the latest statistics from the Mortgage Bankers Association (MBA), the mortgage delinquency rate on single-family homes fell to its lowest rate since the fourth quarter of 2008, falling to 8.22% for the fourth quarter 2010. The MBA’s chief economist, Jay Brinkmann, said the fourth quarter stats represent “significant across-the-board” decreases in delinquent mortgages in the U.S. Mortgages one payment behind have fallen to late 2007 levels and loans three payments behind have dropped to the lowest levels of 2010.
The MBA delinquency statistics do not include the mortgages that have already received a foreclosure filing but Brinkman noted that “every state but two (North Dakota and Arkansas) saw a drop in the 90-lus day delinquency rate and the two increases were negligible.” The number of loans in foreclosure or are at least one payment past due was 13.56%, a significant decline from the third quarter 2010 numbers.
Brinkman stated that the improvement in the delinquency rate should be attributed to the improvement in individual earnings due to the increase in private sector job growth and that “absent a significant economic reversal, the delinquency picture should continue to improve during 2011. If you are already facing a Florida Foreclosure Lawsuit or are delinquent on you mortgage loan, contact a bankruptcy Lawyer to see what foreclosure alternative options may be available to you.
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Foreclosure Mediation Program Ramping Up but Helping Few
The Tampa Florida Tribune has posted an interesting article about the actual effects of the early stages of the statewide, mandatory foreclosure mediation program. According to statistics compiled by the Tribune, between March and June 2010 there were 13,417 cases referred to mediation statewide. Of those cases only 1%, 768 total, resulted in an agreement between the borrower and the lender!
The primary question many are asking is why is the program not working as intended. While there are several factors that may be contributing to the low success rate of the program, most mediation administrators are point to the sloppiness of the lenders attorneys’ and their process servers as the most obvious reasons for the breakdown of the program. The sloppy paperwork has made it difficult to locate borrowers in order to determine their desire to participate in the mediation program, which is problematic because the mediation program must contact the borrowers within 60 days of the lawsuit being filed or the case goes back to regular court proceedings.
While only 7 of the 20 Florida Circuit Courts submitted data for the Tribune report, there is enough data to determine that there are major flaws in the program. Foreclosure Defense Lawyers think that mediation is a good alternative for many struggling homeowners and hopes the trend reverses. If you are facing a Florida Foreclosure Lawsuit contact us to discuss how foreclosure defense or a bankruptcy may help you.
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Spike in Foreclosures Looms in 2011
With news from RealtyTrac that lenders repossessed more the 1million homes in 2010 many homeowners may believe that the worst of the housing crisis is over, but industry experts say it will get even worse. Statistics from the fourth quarter of 2010 showed a significant drop in the number of foreclosure filings, most of which has been attributed to the foreclosure freeze due to the robo-signing scandal.
Many industry analysts believe that the delay from the foreclosure freeze will be over by the end of the first quarter of 2011 and clearing up those delayed foreclosures will cause 2011 to be another record year. Some figures show that 250,000 foreclosures were delay by the foreclosure freeze and this may cause a significant spike in the number of foreclosures in early 2011. This will only add to the overall number of bank-owned properties, which some industry insiders already estimate to be worth to close to $31 billion.
If you are currently facing or fear that you will be facing a Florida Foreclosure Lawsuit in the immediate future, contact a Jacksonville Foreclosure Lawyer or a Jacksonville Bankruptcy Lawyer today to see what defenses may be available to you.
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Bank of America Fined for Harassing Homeowners and Ignoring a Court Order
Judge J. Rich Leonard recently fined Bank of America $126,000 for contempt of court after Countrywide Home Loans flagrantly violated the terms of a court order. The fines included $63,000 in punitive damages. The Kirkbride family filed for bankruptcy and signed a consent order with Countrywide Home Loans in which Countrywide would foreclose on two of their properties. In the consent order, Countrywide agreed to release the family from the mortgage debts on both properties.
Only three days after the order was entered in court, Countrywide began violating the order. The Judge found it “particularly frustrating [that Countrywide] actively negotiated the terms of the consent order with the debtors, signed the order, and later, through its agents, repeatedly acted as if the order did not exist.” Fines were levied for over 400 phone calls from Countrywide to the family, improper written demands, wrongfully causing homeowner association bills and tax problems for the family. Bank of America is responsible for these fines because it acquired Countrywide Home Loans.
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Stripping my second mortgage in a Bankruptcy?
In many cases the answer to this question is yes. Often times homeowners find themselves “underwater” in the home and are afraid that if they surrender their home in satisfaction of their first mortgage their second mortgage lender will pursue a deficiency against them or they will file a form 1099(c) creating tax liabilities for the amount of the second mortgage.
One of the most effective ways a Jacksonville Foreclosure Lawyer has found to prevent that from happening is for a homeowner to file a chapter 13 bankruptcy surrendering the house in full satisfaction of the first and second mortgage before the house if foreclosed on. By doing this, the homeowner prevents the holder of a second mortgage company from filing a deficiency claims because the house has not yet been sold and the funds dispersed. This method is especially effective for those homeowners who have little other debt and are looking to protect assets.
If you are facing a Florida Foreclosure Lawsuit and are considering your foreclosure alternatives, contact a Jacksonville Bankruptcy Lawyer today for a review of your case and explore what alternatives may be available to you.
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Bankruptcy Courts now Enforcing Foreclosure Laws
In recent weeks bankruptcy courts and the associated United States Trustee Program have begun to increase the scrutiny with which they are looking at requests to proceed with foreclosures and requiring the foreclosing lender to prove that they are the proper party to foreclose on the property. Bankruptcy courts in New Jersey and Georgia have denied to remove the automatic foreclosure stays that are put in place when a court confirms a debtor’s bankruptcy repayment plan because banks have been unable to satisfactorily prove they were the parties that actually owned the mortgages.
In order for the lenders to foreclose on a home once the homeowner has an approved repayment plan, the lender must file a motion to remove to stay and prove they are entitled to foreclose. Spokeswoman for the U.S. Trustee Program Jane Limprecht verified the Program’s increased scrutiny by stating it “is engaged in an enhanced review of mortgage servicer filings in bankruptcy cases to help ensure the accuracy of the claim to repayment.”
This is a positive step for those homeowners facing a Florida Foreclosure Lawsuit and are considering bankruptcy. Contact a Jacksonville Bankruptcy Lawyer or a Jacksonville Foreclosure Lawyer today to explore your foreclosure alternative options.
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DC Mayor Enacts New Law Aimed at Slowing Local Foreclosures
Last week, Washington, D.C. Mayor Adrian M. Fenty signed into law an emergency act aimed at slowing the dramatic rate at which homes in the District of Columbia are being foreclosed upon. The Act, titled “Saving DC Homes From Foreclosure Emergency Act of 2010” puts into place several key processes that lenders and homeowners must complete before a foreclosing on a home and proceeding to a foreclosure sale.
One such process the Act creates is a mandatory foreclosure mediation program, much like the one created in Florida, whereby lenders and homeowners must meet before the lender can proceed with the foreclosure action. Delinquent borrowers have 30 days from the initial notification to opt into the mediation program and pay the $50 fee. If a borrower elects to not participate in the program the foreclosure and accompanying foreclosure sale can proceed but it a completed foreclosure or a foreclosure sale is completed before the entire process is complete it will be considered null and void.
With this new law Washington, DC joins an ever-growing group of states that are requiring processes where lenders and willing homeowners to explore foreclosure alternatives before a house can be foreclosed on and sold. If you are facing a Florida Foreclosure Lawsuit and wanted to find out what foreclosure alternative options may be available to save your home, contact a Jacksonville Bankruptcy and Foreclosure Defense Lawyer today.