Archive for the ‘Mortgage Foreclosures’ Category
Monday, February 21st, 2011
Since the start of the mortgage foreclosure crisis in 2007, the mortgage industry in the U.S. has changed significantly. And, according to a recent piece in the Wall Street Journal, one of the latest changes being noted is a push by banks for larger down payments on mortgage loans.
Here’s a look at what that might mean for potential homeowners, the housing market and the recovery of the U.S. economy.
More Money Down = Fewer People Buying Homes?
The WSJ reports on how the home-buying landscape has changed in recent years:
- Down payments at all-time high: One online real estate information base, Zillow.com, has apparently been keeping track of median down payments required by lenders since 1997, and this year’s median (22 percent of the home’s value) is the highest that number has been since the tracking began.
- Steep rise in required down payments: What’s more, sources report, that 22 percent figure marks a doubling of the median down payment required just three years ago! In other words, banks have reacted swiftly and decisively to the turmoil in the housing market.
- Higher stakes for homeowners: It seems that the push for higher down payments has been largely driven by lenders, as a reaction to findings that homeowners with more of their money on the line (i.e. those who make larger down payments up front) are less likely to default on payments or go into foreclosure than those with less money at stake.
- Alternative lending assistance sought: The Journal notes that, because many potential homebuyers cannot afford a 22 percent down payment, there’s been an uptick in applications for mortgage assistance programs designed to help select groups of people (including veterans).
A More Realistic Picture of Homeownership?
While owning a home has long been considered part of the “American Dream,” the real estate bubble’s devastating effects on the housing market has left some people questioning whether homeownership is in fact for everyone.
Considered from a broad perspective, tightened mortgage regulations could well be a good thing for the U.S. economy as a whole: with lending practices that require more fiscally conservative borrowing and spending, the housing market will have less of a chance to spiral out of control and create another boom-and-bust cycle like the one we’re currently digging out of.
Worried about Your Mortgage?
If you’re currently saddled with an unaffordable mortgage (or one that’s gotten out of your reach because of job loss or reduction), you may be able to benefit from the foreclosure-prevention power of Chapter 13 bankruptcy, which may allow you to catch up on your mortgage payments or sort out your living arrangements without the pressure of creditors breathing down your neck.
Posted in Bankruptcy and the Economy, Chapter 13 Bankruptcy, Mortgage Foreclosure, Mortgage Foreclosures, Personal Finance | Comments Off
Friday, June 25th, 2010
Well, according to a recent ABA Journal article, it appears Fannie Mae is going to pursue deficiency judgments against borrowers who walk away from loan obligations without good reason.
A deficiency judgment is a judgment following a foreclosure sale for the difference between the property’s value at the time of the foreclosure sale and the balance owed on the loan obligation. Once the deficiency judgment is obtained, the creditor may be able to garnish wages, seize assets, and take any other action allowed by law. Apparently Fannie Mae will be instructing its servicers to recommend which homeowners should be pursued for deficiencies.
The first question I had when I read this article is what criteria will be used to determine whether a reason for the walk away was a “good reason.” It appears that the Fannie Mae’s goal is to stop people who have the ability and means to pay their mortgages from walking away merely because the property is no longer an economically appealing investment. But with the management of the loans I have seen by the servicers in my clients’ cases I have little doubt that implementation of this program will affect people not intended.
Some states do not allow deficiency judgments but Florida is not one of those states and pursuit of a deficiency judgment is becoming a more frequent occurrence here. While deficiency judgments may be obtained even if there is a valid hardship, it has largely not been pursued against debtors in the past. However, it seems the tides are changing.
In Florida, a deficiency judgment is an equitable remedy and is discretionary with the trial court judge. Following a foreclosure sale, the creditor has one year from the date of the foreclosure judgment to seek a deficiency in the foreclosure case. If one is not sought or requested in the foreclosure case, the creditor has up to five years to bring a new action for a deficiency. Many debtors believe there is no defense to deficiency judgments but in most instances, this couldn’t be farther from the truth. In defending against a deficiency judgment, debtors can fight creditor’s valuation of the property and raise numerous equitable defenses and legal defenses that an experienced attorney can counsel them on.
As with any legal issue, early consultation with an attorney can many times make the issue much easier and cheaper to deal with. With creditors becoming more aggressive in the collection efforts on the loans by seeking deficiencies, it is more important than ever to seek an attorney’s advice and counsel in handling a foreclosure case from its outset as merely “walking away” may put you in more jeopardy than it may have in the past.
This blog was written by David Fineman, Esq. of The Dellutri Law Group, P.A.. Attorney David Fineman handles Bankruptcy, FDCPA, FCRA, UDAP, FCCPA and civil litigation.
Posted in Bankruptcy News, Consumer Protection, Foreclosure Defense, Mortgage Foreclosures, Sign of the Times, Southwest Florida News | Comments Off
Wednesday, February 17th, 2010
As a Consumer Bankruptcy Attorney, I hear and read about what is going on with consumers who are on the front lines of economic issues. The latest twist on the Foreclosure Crisis is that inventory is hurting the real estate market. I don't know about your neck of the woods, but right here in Southwest Florida our real estate market has taken a beating. As a homeowner, I'm not too happy with the drop in prices, but I am more concerned about others who are facing multiple issues. For example, it is estimated that over 7 million homes in the United States are in trouble.
Likewise, it is estimated that we will see another 3.5 to 5.5 million foreclosures. Florida is expected to be one of the hardest hit areas. Why? My answer is that Loan Modifications are not working. Even if a person is able to get a loan modification and stay in their home, it may not be enough to deal with all of their debt problems.
On a daily basis I see people who are maxed out with debt. A loan modification for them would be the equivalent of putting a band aid on a broken arm. These are good people who have lost their jobs or have had their hours cut back, etc, etc. They are good, honest and hardworking people were not able to foresee this economic nightmare. Now, they are having to make very hard choices.
If Congress changed the Bankruptcy Laws to allow people to modify their first mortgages in the Bankruptcy Court, people would have an opportunity to save their homes, cut down their debts, modify their payments schedules and pay their debts in a fair and equitable manner.
Bankruptcy is an option for many people, yet for some reason, the bankruptcy process is still shunned by the many people.
This post was submitted by Carmen Dellutri, Esq., founder of The Dellutri Law Group, P.A. Currently, the firm has offices in Port Charlotte, Fort Myers, Naples and Sarasota. Mr. Dellutri also sits on the Board of American Board of Certification. Mr. Dellutri is also one of the founders of the Bankruptcy Law Network, Debt Law Network, Credit Law Network, and Mortgage Law Network. Mr. Dellutri also writes for the firm's personal injury litigation blog, www.faircreditreportingactblog.com and www.fairdebtcollectionpracticesactblog.com, and the firm's mortgage modification blog.
Posted in Bankruptcy News, Consumer Protection, Life After Bankruptcy, Mortgage Foreclosures | Comments Off
Wednesday, February 17th, 2010
As a Consumer Bankruptcy Attorney, I hear and read about what is going on with consumers who are on the front lines of economic issues. The latest twist on the Foreclosure Crisis is that inventory is hurting the real estate market. I don't know about your neck of the woods, but right here in Southwest Florida our real estate market has taken a beating. As a homeowner, I'm not too happy with the drop in prices, but I am more concerned about others who are facing multiple issues. For example, it is estimated that over 7 million homes in the United States are in trouble.
Likewise, it is estimated that we will see another 3.5 to 5.5 million foreclosures. Florida is expected to be one of the hardest hit areas. Why? My answer is that Loan Modifications are not working. Even if a person is able to get a loan modification and stay in their home, it may not be enough to deal with all of their debt problems.
On a daily basis I see people who are maxed out with debt. A loan modification for them would be the equivalent of putting a band aid on a broken arm. These are good people who have lost their jobs or have had their hours cut back, etc, etc. They are good, honest and hardworking people were not able to foresee this economic nightmare. Now, they are having to make very hard choices.
If Congress changed the Bankruptcy Laws to allow people to modify their first mortgages in the Bankruptcy Court, people would have an opportunity to save their homes, cut down their debts, modify their payments schedules and pay their debts in a fair and equitable manner.
Bankruptcy is an option for many people, yet for some reason, the bankruptcy process is still shunned by the many people.
This post was submitted by Carmen Dellutri, Esq., founder of The Dellutri Law Group, P.A. Currently, the firm has offices in Port Charlotte, Fort Myers, Naples and Sarasota. Mr. Dellutri also sits on the Board of American Board of Certification. Mr. Dellutri is also one of the founders of the Bankruptcy Law Network, Debt Law Network, Credit Law Network, and Mortgage Law Network. Mr. Dellutri also writes for the firm's personal injury litigation blog, www.faircreditreportingactblog.com and www.fairdebtcollectionpracticesactblog.com, and the firm's mortgage modification blog.
Posted in Bankruptcy News, Consumer Protection, Life After Bankruptcy, Mortgage Foreclosures | Comments Off
Thursday, April 30th, 2009
The Senate will vote either today or tomorrow on a bill that could give Bankruptcy Judges the ability to cramdown home mortgages to the present level owed on the home. Currently, Bankruptcy Judges cannot cramdown first mortgages on debtor's homesteads. In today's market, now is the time and place for this bill to be passed. If you are a reader of this blog or any other blogs that I write for, you know how important this bill, as passed by the House of Representatives, is for the people of Southwest Florida, especially Cape Coral and Lehigh Acres.
So, either today or tomorrow we will know if our elected officials have sold us out to the Banks and Mortgage Companies. My bet is that they will, and for each elected official that sells us out for political gain, I say vote them out. There is no issue that is more important to the people of the United States right now than housing. If you are not sure of where you will be sleeping tonight, how can you be a productive American at work. The issue of housing is core to our economy, and the jokers in Washington are playing politics with the Banks. They are in discussions with banks that we the people own. Why do the banks have any say in this legislation? Aren't we a democracy (Rule by the People)? Sure, as long as you can hire a lobbyist with a politician in his or her back pocket. These are things that baffle my mind. Let's wait and see if they do the right thing.
This post was submitted by Carmen Dellutri, Esq., founder of The Dellutri Law Group, P.A. Currently, the firm has offices in Port Charlotte, Fort Myers, Naples and Sarasota. Mr. Dellutri also sits on the Board of American Board of Certification. Mr. Dellutri is also one of the founders of the Bankruptcy Law Network, Debt Law Network, Credit Law Network, and Mortgage Law Network. Mr. Dellutri also writes for the firm's personal injury litigation blog and the firm's mortgage modification blog.
Posted in Bankruptcy News, Consumer Protection, Legislative Updates, Mortgage Foreclosures, Sign of the Times, Southwest Florida News | Comments Off
