This new program in New Jersey comes on the heels of the announced national mortgage settlement - a $25 billion settlement between the nation's five largest loan servicers, 49 states and the federal government. The settlement resolves a dispute regarding state and federal findings that the lenders - including Bank of America, Chase, Citi, Ally/GMAC and Wells Fargo - had regularly signed foreclosure documents without a notary and without verifying facts contained in the documents, otherwise known as "robo-signing."
It is hoped that the money from this settlement will provide some assistance for distressed homeowners. For example, homeowners in bankruptcy may be eligible for relief - relief in the form of loan modification, waiver of deficiency, forgiveness or forbearance of principal, among others. However, if you have questions about whether you qualify for any relief under this national mortgage settlement, and experienced attorney will be able to provide advice and guidance.
]]> Signs of New Jersey Mortgage ScamsEvery homeowner is a potential victim of a scammer. So, it is important that a homeowner is vigilant of the "signs" of a scam. According to HUD, common tell-tale signs of a predatory lending or mortgage fraud scam include:
If you answer "yes" to any of these questions, you may have been the victim or potential victim of a scam. However, even if you are not a victim of predatory lending or other mortgage scam, you may be struggling to make your monthly mortgage payments. You do have other options, including filing for Chapter 13 bankruptcy or mediation.
Every person's situation unique and not every option for relief may work for you. Therefore, an experienced bankruptcy attorney will be able to help you explore the options that work best for your situation.
Source: The Star-Ledger, "New program to make it easier for N.J. residents to report scams aimed at homeowners," Victoria St. Martin, April 18, 2012
]]>However, these few positive numbers for New Jersey doesn't mean all is well. In fact, even though New Jersey's total foreclosure filings dropped in the first quarter of 2012, the state saw an astonishing 73 percent increase in new foreclosure starts in March, according to RealtyTrac - putting it squarely among the states seeing the greatest increases.
]]> Some experts believe that foreclosures will again increase nationwide as the U.S. government recently settled their "robo-signing" dispute with five major mortgage lenders.While this dispute was pending, many lenders put a moratorium on new foreclosure filings as to avoid any other possible issues. Now with the dispute settled, many expect foreclosures to ramp up again - which is exactly what is happening in New Jersey.
Brandon Moore, RealtyTrac CEO, recently opined, "The dam may not burst in the next 30 to 45 days, but it will eventually burst, and everyone downstream should be prepared for that to happen - both in terms of new foreclosure activity and new short-sale activity."
If you are a homeowner facing foreclosure, an experienced bankruptcy attorney can advise you of your rights and options. For example, filing for bankruptcy can stop foreclosure proceedings, or, loan modification may be able to help you save your home - every situation is different, and you should know all of your options before making such an important decision.
Source: Inquirer, "U.S. foreclosure filings fall to lowest point since 2007," Al Heavens, April 12, 2012
]]>Described as a temporary fix to extreme circumstances, the bill's passage could deliver a win-win situation to all involved. "I'm doing this to help homeowners and communities, but also to help the financial institutions so they don't take losses of the amounts they're facing," said Rice.
The bill comes on the heels of a recent announcement of a $26 billion national settlement between the states and five major lenders - Ally Financial (the former GMAC), Bank of America, Citibank, JP Morgan Chase and Wells Fargo - regarding allegations of mortgage abuses. New Jersey is expected to receive about $837 million from the settlement for mortgage relief.
Under the terms of the proposal, delinquent New Jersey homeowners would have six months to complete loan modifications through the Foreclosure Mediation Program before entering foreclosure proceedings. The program would sunset in three years, when bank payouts under the national settlement end.
]]> Several lenders halted foreclosures in New Jersey in the fall of 2010 after reports surfaced of "robo-signing" - a practice in which lenders signed legal documents without proper verification in an attempt to speed homeowner evictions. In 2011, foreclosures dropped 80 percent as lenders and officials worked to end those abuses and return eviction proceedings to proper scrutiny.Today, New Jersey has an estimated backlog of 50,000 to 100,000 foreclosures. Among the homes sold in New Jersey last year, one in every 10 was in foreclosure.
Bankruptcy proceedings may also bring mortgage foreclosures to a halt. If you are considering filing for bankruptcy, an experienced bankruptcy attorney may be able to explain the options best for you.
Source: NJSpotlight, "Proposed Bill Offers Six-Month Grace Period for Underwater Mortgages," Joe Tyrrell
]]>Generally student loan debt is not dischargeable in bankruptcy, which means the debtor will still be liable for the debt even after they file for bankruptcy. This rule does have limited exceptions though, such as a showing of undue hardship.
However, the inability to discharge student loan debt hasn't appeared to stop former students from considering bankruptcy. According to the NACBA survey, more than four out of five bankruptcy attorneys report that possible clients with student loan debt have risen "significantly" or "somewhat" in the last three to four years - with almost 50 percent of all attorneys falling into the "significant" category. Moreover, 95 percent of attorneys asked feel only a few students have any chance of discharging student loan debt using the "undue hardship" exception.
]]> According to the survey, 82 percent of bankruptcy attorneys view non-dischargeability of student loans as a "big problem" for debtors attempting to get a fresh start. This has led to calls by some attorneys to reinstate the bankruptcy discharge for student loans and a reasonable statute of limitations when students default on their loans.Even though a debtor is unlikely to be able discharge student loan debt during bankruptcy, that does not mean bankruptcy cannot help. For example, by filing for bankruptcy a debtor can stop student loan creditors from harassing them for up to five years, which can give the debtor time to get their finances in order. Also, by discharging other debt in bankruptcy, it may free up additional monies to help pay off the student loans.
Source: Forbes, "The Student Loan Crisis Is Crippling America's Families - Is The Economy Next?" 02/07/2012
]]>The Justice Department has claimed evidence of criminal liability is hard to find, but who can forget the "robo-signing" scandal in which bank employees were signing foreclosure affidavits they hadn't read or checked - and then their signature was notarized when they were not even present. Since then, evidence of foreclosure fraud has only grown.
For example, according to a New York federal bankruptcy judge's ruling and additional documents reviewed by Reuters, there is evidence indicating that at least a dozen promissory notes containing illegal changes and forged signatures have been filed in one bankruptcy court alone.
]]> Reuters also reported on a recent federal bankruptcy hearing in which a New York bankruptcy judge commented on Bank of America's loan modification efforts. In response to the bank's assertion that they had been working to modify a debtor's mortgage for almost a full year, the judge stated, "Bank of America issues constant press releases about how it is responsive to their borrowers on these issues. They are not, period." The judge continued, "Whoever is in charge of this program and their supervisor, who should be following it, should be fired" because "they are frankly incompetent."In Alabama, another federal bankruptcy judge also recently held that a different large bank had filed at least 630 sworn affidavits that contained false "facts" - including statements that some homeowners were late on payments that were not even due yet.
As long as banks and mortgage-service companies continue to use fraudulent foreclosure practices such as these, homeowners need to be vigilant in protecting their rights. However, it may difficult to know when "big banks" are attempting to take advantage of homeowners, which is when an experienced attorney can help navigate the often complicated laws.
Moreover, even in those situations in which the bank is not utilizing fraudulent practices, there are still other options for homeowners behind on their payments - namely bankruptcy. By filing for Chapter 7 or Chapter 13 bankruptcy, homeowners are able to immediately stop foreclosure actions in progress. This gives homeowners the time they need to determine what option is best for them. In some instances, homeowners may be able to utilize other loan modification strategies or even be given time to get current on their payments - with the ultimate goal of keeping their homes.
]]>Filing for bankruptcy is a solution for people who are unable to recover from debts. Accumulated debts can be the result of a divorce, medical emergency, loss of a job, overuse of credit cards, or an unforeseen tragedy. Regardless of your financial history and the reasons for your unmanageable debt, we can help.
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