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Former Los Angeles Bankruptcy JudgeRelated Bankruptcy ArticlesFewer Businesses File for Chapter 11 Protection in February, Consumer Filings Increase 14 PercentMarch, 3, 2010 The number of companies that sought bankruptcy protection last month remained level with January, but new statistics show that fewer did so with the goal of reorganizing, Dow Jones Daily Bankruptcy Review reported today. In February, 6,557 businesses sought bankruptcy protection, nearly the same as the 6,554 that did so in January, according to new data from Automated Access to Court Electronic Records, or AACER. Within those totals, however, last month saw a 20 percent decline in the number of businesses that sought protection under Chapter 11 of the U.S. Bankruptcy Code, which allows a company to reorganize. ABI executive director Samuel J. Gerdano said that the decline in chapter 11 filings may indicate more companies are able to avoid bankruptcy thanks to an increase in available funding from private-equity firms and other sources. "It's not hard to see that the view of bankruptcy may be one that is overly oriented to the quick sale as opposed to the restructuring," Gerdano said. "And that could be fueling an interest in an alternative approach." In related news, the 111,693 consumer bankruptcies filed in February represented a 14 percent increase nationwide over the 98,344 filings recorded in February 2009, according to the ABI, relying on data from the National Bankruptcy Research Center (NBKRC). NBKRC?s data also showed that the February 2010 consumer filings represented a 9 percent increase over the 102,254 consumer filings recorded in January 2010. Chapter 13 filings constituted 27 percent of all consumer cases in February, representing a 3 percent decrease from January. Southern California Attorney Arrested for Loan Modification ActivitiesMarch 2010 An Irvine attorney accused of targeting hundreds of distressed homeowners became the first California lawyer arrested for illicit loan modification activities when he was charged with more than 100 felonies last month. Christopher Lee Diener [#187890] faces one count of conspiracy to commit grand theft, 116 counts of grand theft by false pretenses and a perjury charge. He faces up to 70 years in state prison if convicted. Click here to read the full article. Housing Prices Fall at Slower PaceFebruary 24, 2010 Home prices kept falling, but at a slower rate, at the end of last year as the housing market continued to stabilize. Click here to read the full article. U.S. Weighs Changes to Mortgage-Relief ProgramFebruary 23, 2010 The U.S. Treasury is considering new guidelines to mortgage lenders that would give distressed borrowers more time to try to qualify for a federal program aimed at averting foreclosures. Under the proposals, loan-servicing companies, which collect payments and handle foreclosures, would have to give borrowers 30 days to respond after being denied a modification of their loan terms under the Home Affordable Modification Program, known as HAMP. During that period, which would allow borrowers to appeal against the decision, the servicer couldn't put the home up for sale at a foreclosure auction. The proposals are outlined in a draft presentation obtained by The Wall Street Journal and other news organizations. A Treasury spokeswoman said the proposals are among "many ideas under consideration in the administration's ongoing housing stabilization efforts." She added: "This proposal has not been approved and there are no immediate planned announcements on the issue." Servicers also would be required to provide a "written certification" that a borrower isn't eligible for HAMP before a foreclosure sale can be held. The proposal calls for servicers to seek contact with all borrowers who are 60 days or more delinquent on their loans and meet the "eligibility profile" for HAMP in an effort to determine whether they qualify. The effort to reach borrowers would have to include at least four telephone calls and two written notices, including at least one by certified mail. Servicers could deny a new application for HAMP received within six days of a scheduled foreclosure sale. But borrowers would have to be notified of the deadline for seeking a HAMP loan modification. These measures would likely further slow down the foreclosure process. Already, that process has been greatly slowed by efforts to determine which borrowers qualify for easier loan terms and by the inability of loan servicers and courts to keep up with millions of unresolved cases. These delays have created an immense backlog of borrowers at risk of foreclosure but unsure of that outcome. About 2.9 million households are 90 days or more behind on payments, but not yet in foreclosure, nearly triple the total of two years ago, according to LPS Applied Analytics, a data provider. On average, those households are nine months behind on payments. Write to James R. Hagerty at bob.hagerty@wsj.com January Foreclosures Up Over Previous YearFebruary 13, 2010 The number of U.S. households facing foreclosure in January increased 15 percent from the same month last year, and a surge in cash-strapped homeowners who've fallen behind on mortgages could be on the way. Click here to read the full article. Mortgage Officials Try Exits Softer Than ForeclosuresFebruary 11, 2010 Seeking alternatives to the nation's struggling foreclosure prevention efforts, federal and mortgage industry officials increasingly are looking for ways to get distressed borrowers to leave their homes voluntarily, without going through the expensive foreclosure process or a messy eviction. Click here to read the full article. Fannie, Freddie to Step Up BuyingFebruary 11, 2010 Fannie Mae and Freddie Mac said they will ramp up their purchases of some $200 billion in delinquent home loans that the two government-controlled mortgage-finance companies have guaranteed. Click here to read the full article. U.S. Employers Slash 20,000 Jobs; Jobless Rate Falls to 9.7%February 5, 2010 The unemployment rate dropped sharply last month, but employers continued cutting jobs in January as businesses remained insecure about the economic outlook. Click here to read the full article. Lawyer Sues Sallie Mae Over ‘Unrelenting’ Student Loan RobocallsFebruary 3, 2010 A Seattle lawyer who says Sallie Mae harassed him with “unrelenting” automated collection calls is suing for at least $500 in damages for each unwanted contact. Click here to read the full article. Existing-Home Sales PlungeJanuary 26, 2010 Home sales plunged in December, raising fresh concerns over the housing market's ability to recover when government support winds down. Click here to read the full article. Unemployment Figures as Reported by the Federal Government Jobs ReportJanuary 8, 2010 "THERE ARE NO SECRETS IN LIFE, JUST HIDDEN TRUTHS THAT LIE BENEATH THE SURFACE." From the Showtime TV hit, "Dexter". The highly anticipated Jobs Report arrived last Friday morning, showing 85,000 jobs lost during December...and while this was a bit worse than expected, the report also carried some good news, in that the prior month's revisions showed that November actually had a final tabulation of job gains for the month, for the first time since December 2007. Additionally, the Unemployment Rate remained stable at 10%. While this all seems to indicate some level of improvement in the labor market - you do have to look beneath the surface to clearly understand the present realities for the labor market. Let's start with the headline number of 85,000 jobs lost. This comes from what is called the "business survey", which uses many estimation tools, including the birth-death ratio of businesses, i.e. how many businesses were created or closed. The mechanics in coming up with the business survey allow the information to be gathered rapidly, but it also makes the information far less than accurate. On the other hand, there is also a "household survey", where a sampling of households receive actual phone calls. Although the household number is not used by the Labor Department for their headline numbers of job losses or creations, some deem it to be a bit more accurate. The household survey paints a bit of a darker - but perhaps more realistic - picture, showing a whopping 589,000 jobs lost. But let's dig deeper still. The Labor Department does use the household survey to calculate the Unemployment Rate - and remember, it stayed stable at 10% - but the calculation is determined by how many people are presently in the workforce. And the household survey indicated that last month, 661,000 people left the workforce. Whoa - what does "leaving the workforce" mean? And where exactly are they going? Let's take a closer look to understand. The Labor Department's definition of this is a "discouraged worker", who has not looked for a job during the past four weeks. Based on this definition, there are a few contributing factors that would help us understand why this would indicate such a large number of people "exiting the workforce." And remember, more people exiting the workforce means less people counted as unemployed, and this number alone last month would have contributed to almost a half percent increase in the rate of unemployment from 10% to almost 10.5%. So let's talk about these contributing factors. First, frigid temperatures and piles of snow during December played a role in keeping job seekers home. Add to that the holiday season, as well as travel for family gatherings and vacations during this time, also contributing to pushing off the job search. And perhaps most importantly playing a role are the extended unemployment benefits - up to 99 weeks worth - which could also play into the decision to not seek work. Put this all together, and it might clarify the large so-called exodus from the workforce, which masks the true Unemployment Rate. Overall - the job picture is still weak, at best. Census hiring in the next few months - although temporary - should boost job creations, which in turn may lead to upside Job Report surprises. This could lead to some tough days ahead for Bonds and home loan rates - count on me to be watching closely, and standing by to advise Fed Plan to Stop Buying Mortgages Feeds Recovery WorriesJanuary 8, 2010 The Federal Reserve's pledge to stop buying mortgages by the end of March is sparking fears among home builders, mortgage investors and even some Fed officials that mortgage rates could rise and knock the fragile housing recovery off course. Click here to read the full article. A Foreclosure Crisis Rooted, the Family Says, in Predatory LendingJanuary 8, 2010 Giuseppa Bagnarol, 82, was in her final hours in August, dying at home surrounded by the large family she presided over as matriarch. Click here to read the full article. Business Bankruptcies Rise More Than Individuals’January 6, 2010 Jan. 6 (Bloomberg) -- Chapter 11 bankruptcy filings by U.S. businesses surged 50 percent last year, outpacing the increase for individuals. Click here to read the full article. NINE DISTRICTS SEE BANKRUPTCY FILINGS INCREASE 60 PERCENT OR MORE IN FY2009According to Chief Justice John Roberts’ Annual Report on the Federal Judiciary, the number of bankruptcy filings exceeded 2008 totals in 93 of the 94 districts, and nine districts experienced increases of 60 percent or more in FY2009 (Oct. 1, 2008-Sept. 30, 2009). The following districts had filings increase 60 percent or more in FY2009: Central District of California, Nevada, Arizona, Delaware, Utah, Wyoming, Hawaii, Virgin Islands and Guam. Total chapter 7 filings rose by 45 percent in FY 2009, while chapter 11’s increased 68 percent, chapter 12 filings rose 47 percent and chapter 13 filings increased 13 percent. Consumer Bankruptcy Filings Increase 32 Percent in 2009, Most Since 2005, Reports American Bankruptcy Institute, in its 010510 e-newsletter:U.S. consumer bankruptcies increased 32 percent nationwide in 2009 from the previous year, according to the American Bankruptcy Institute (ABI) relying on data from the National Bankruptcy Research Center (NBKRC). The data showed that the overall consumer filing total for the 2009 calendar year (Jan. 1 – Dec. 31, 2009) reached 1,407,788 compared to the 1,064,927 total consumer filings recorded during 2008. Annual consumer filings have increased each year since BAPCPA was enacted in 2005. NBKRC’s data also showed that the 113,274 consumer filings recorded in December 2009 represented a 33 percent increase from the 84,926 filings in December 2008. Chapter 13 filings constituted 28 percent of all consumer cases in December, a slight decrease from November. New California Legislation Effective January 1, 2010, re. Residential Mortgages/Residential Deeds of Trust Secured Loans, and re recent changes to Foreclosure Procedures on Single Family Residences with Certain Types of Secured Loans in Default:With the start of the New Year, several statutory amendments of interest to insolvency constituents came into effect in California: Impound Accounts on Residential Mortgages. California Civil Code Section 2954 has been amended to add two new exceptions to the law which prohibits a lender from requiring an impound account as a condition of a loan on a single family, owner-occupied dwelling. As of January 1, 2010, a lender may, in addition to the previously-allowed situations, require an impound account:
Reverse Mortgages. California Civil Code Sections 1923.2 and 1923.5 have been amended to add restrictions on a reverse mortgage lender’s participating in certain other financial or insurance activities, and on referring the prospective borrower to anyone for the purchase of other financial or insurance products; to make certain changes in the 16-point type notice required to be given to a potential borrower; and to add requirements for the delivery of a written checklist covering issues that might impact the borrower as a consequence of the loan. Residential Real Property Foreclosure. California Civil Code Sections 2923.5, 2923.6, 2924.8 and 2924f and 2943, and California Financial Code Section 17312, have been amended to make temporary changes to the handling of foreclosures relating to certain mortgages and deeds of trust. Changes include adding procedures for the handling of short pay agreements. The new provisions sunset January 1, 2014. Judgment Liens. California Code of Civil Procedure section 697.510 and 697.670 have been amended to provide that, within six months prior to the expiration of a judgment lien recorded with the California Secretary of State, the judgment lien can be renewed in the same manner as a UCC financing statement. In addition to the foregoing, a new law on mechanics liens will come into effect on January 1, 2011: Mechanics Liens. California Civil Code Sections 3084 and 3146 have been amended, effect on January 1, 2011 to require, as a condition of the enforceability of the mechanics lien, that notice of the lien be served on the owner or reputed owner of the property, by registered, certified or first class mail, or on the construction lender or original contractor. The amended statute provides that failure to serve such a notice will render the lien unenforceable. This information is published by the California State Bar Insolvency Committee on 010510. Banks Roll Out New Check, Card FeesJanuary 2, 2010 The nation's banks will be bombarding customers with new fees and products in 2010 as they try to replace more than $50 billion in revenue wiped out by new rules that clamp down on certain business practices. Click here to read the full article. U.S. Loan Effort Is Seen as Adding to Housing WoesJanuary 1, 2010 The Obama administration’s $75 billion program to protect homeowners from foreclosure has been widely pronounced a disappointment, and some economists and real estate experts now contend it has done more harm than good. Click here to read the full article. 2010 Brings New Rules to Bankruptcy LawsJanuary 1, 2010 The new local bankruptcy rules are effective January 4, 2010 Click here to read the new rules. Debt Collector Jailed Over ThreatDecember 17, 2009 A former gang member was today sentenced to 10 months' prison for threatening a businessman and his daughter while acting as a debt collector trying to recover $50,000. Click here to read the full article. U.S. Regulators Propose Guidance on Reverse MortgagesDecember 17, 2009 Reverse mortgages, which are targeted at homeowners who are at least 62 years old, allow homeowners to tap the equity in their home and receive cash from the lender. The loan does not have to be repaid as long as the borrower lives in the home. Click here to read the full article. Exclusive: U.S. Mortgage Delinquencies at New HighDecember 16, 2009 Among U.S. homeowners with mortgages, 7.91 percent were at least 30 days late on payments in November, up from 7.76 percent in October, according to the monthly data the credit bureau provided exclusively to Reuters on Wednesday. Click here to read the full article. TransUnion: Auto Loan Delinquencies to Grow 7%December 16, 2009 One of the nation’s largest credit rating agencies, TransUnion, predicts that the rate of auto loan delinquencies nationwide will grow 7% in 2010 — including a sharp 27% increase in Michigan. Click here to read the full article. 4 Big Mortgage Backers Swim in Ocean of DebtDecember 16, 2009 Even as the biggest banks repay their government debt in what is being heralded as a successful rescue program, four troubled giants of the financial world remain on government life support. Click here to read the full article. Guesstimate of 2010 Bankruptcy FilingsDecember 14, 2009 How many U.S. bankruptcy filings will there be in 2010? A "projection" would imply all sorts of careful analysis with regressions and charts. I don't have that, but I do have a guesstimate based on the trends we have seen recently. Last year, I made a guesstimate of a little under 1.40 million bankruptcy filings, and we are going to have 1.45 million bankruptcy filings in 2009. That's not too bad for a guesstimate. Click here to read the full article. Mortgage Cramdown Amendment DefeatedDecember 14, 2009 In a stunning reversal, the House on Friday rejected an amendment to the massive financial services overhaul bill to allow bankruptcy judges to modify home mortgages in chapter 13. The vote was 188-241, with 71 Democrats joining nearly all Republicans in opposition. An identical proposal passed the House in March before being defeated in the Senate. Foreclosures continue to rise as the administration's voluntary program to modify mortgages has delivered disappointing results to date. The cramdown amendment was offered as a way to break the foreclosure trend -- without using taxpayer money -- for those with enough current income to fund a chapter 13 plan. Opponents argued that the amendment wouldn't help many homeowners and would have unintended adverse consequences for lenders in securitized markets. The "Wall Street Reform and Consumer Protection Act of 2009" passed the House on Friday and heads to the Senate, where it faces an uncertain future. The controversial bill will need 60 votes to win approval there. Click here to read the House Financial Services Committee’s press release on the passage of the “Wall Street Reform and Consumer Protection Act of 2009.” Interest Rates Are Low, but Banks Balk at RefinancingDecember 12, 2009 Mortgage rates in the United States have dropped to their lowest levels since the 1940s, thanks to a trillion-dollar intervention by the federal government. Yet the banks that once handed out home loans freely are imposing such stringent requirements that many homeowners who might want to refinance are effectively locked out. Click here to read the full article. Debt Collectors are Ready to DealDecember 11, 2009 Bad economic times haven't spared debt collectors. Although the number of delinquent accounts has rocketed in the recession, job losses mean fewer people are able to pay. Click here to read the full article. Foreclosure Relief Program is Stuck in FirstDecember 11, 2009 The government's foreclosure relief program is sputtering, according to government data released Thursday showing that the pace of help being offered to struggling homeowners slowed last month and many borrowers are at risk of losing the aid they have already received. Click here to read the full article. Are You Foolish to Pay Your Mortgage?December 9, 2009 If you're 'underwater' on your mortgage, walking away might make sense, but when is it OK to set aside your responsibilities to your lender, your neighbors and yourself? Click here to read the full article. One in Four Borrowers Is UnderwaterNovember 24, 2009 The proportion of U.S. homeowners who owe more on their mortgages than the properties are worth has swelled to about 23%, threatening prospects for a sustained housing recovery. Click here to read the full article. Renters Becoming Latest Victims as Foreclosure Crisis WidensNovember 23, 2009 NEW YORK -- A new wave of foreclosures stands to hurt people who may have never taken out a mortgage: renters. In cities such as New York, Chicago and Los Angeles, where many investors are carrying upside-down mortgages on large rental buildings, some tenants are watching their homes fall apart along with the financing. Click here to read the full article. Fannie Mae to Allow Some Troubled Owners to Rent BackNovember 5, 2009 Fannie Mae announced a new program Thursday that will allow some homeowners facing foreclosure to hand the deed back to their lender but remain in the home as a renter. Click here to read the full article. News Alert from The Wall Street JournalOctober 27, 2009 Americans are growing increasingly pessimistic about the economy after a mild upswing of attitudes in September. But Republicans haven't been able to profit politically from the economic gloom, according to a new Wall Street Journal/NBC News poll. The survey found a country in a decidedly negative mood, nearly a year after the election of President Obama. For the first time during the Obama presidency, a majority of Americans sees the country as being on the wrong track. Fifty-eight percent of those polled say the economic slide still has a ways to go, up from 52% in September and back to the level of pessimism expressed in July. Only 29% said the economy had "pretty much hit bottom," down from 35% last month. News Alert from The Wall Street Journal - Sponsored by NASDAQ OMXOctober 24, 2009 Bank closings for the year have surpassed 100 as regulators shut down small banks in Florida and Georgia. The FDIC took over Partners Bank in Naples, Fla. American United Bank in Lawrenceville, Ga., also failed. They boosted to 101 the number of bank failures so far this year. Three New Bills Signed into California Law – Raising the Homestead Exemption, Permitting Renewal of Judgment Liens, and Correcting Statutory Inconsistencies Regarding BankruptcyOctober 19, 2009 On October 11, 2009, Governor Schwarzenegger signed into law three new Assembly bills, each of which will become effective January 1, 2010: Homestead Exemption Increase. Assembly Bill 1046 increased the amount of equity in a homestead that is exempt from the enforcement of a judgment. Under current law, the base exemption is $50,000. There is an exemption of $75,000 if the judgment debtor or the judgment debtor's spouse who resides in the homestead is a member of a family unit, and an exemption of $150,000 if the judgment debtor or the judgment debtor's spouse is age 65 or older, disabled or age 55 or older with limited income. Under the new law, which will go into effect on January 1, 2010, the exemptions will be increased to $75,000, $100,000 and $175,000, respectively. The bill also requires the Judicial Council to submit to the Legislature, at three year intervals, recommendations as to the amount by which the exemption should increase based on the change in the annual California Consumer Price Index for All Urban Consumers. However, no further increases will take effect until approved by the legislature. Judgment Lien Renewal. Assembly Bill 121 amended California Code of Civil Procedure Section 697.510 to permit a judgment lien creditor to renew a notice of judgment lien filed with the California Secretary of State. Under current law, judgment liens on certain kinds of personal property can be filed in the same manner as a UCC financing Statement, but they expire after five years and cannot be renewed. As of January 1, 2010, the judgment creditor will be able to file a continuation statement with the Secretary of State's office within the last six months of the judgment lien's validity, thereby renewing the lien for additional five-year terms until the judgment has been satisfied. AB 121 was an Affirmative Legislative Proposal (“ALP”) by the Insolvency Law Committee of the Business Law Section of the State Bar. Erroneous Bankruptcy References. Assembly Bill 1059 corrected over 50 erroneous references in California statutes to federal bankruptcy law, but made no substantive changes to California law. The erroneous references in California statutes arose out of the fact that the United States Bankruptcy Code was substantially amended in 1978, and there have been significant amendments since then, but the references in the California statutes to the old law were never updated. The obsolete or superseded bankruptcy law references not only created ambiguity, but also call into question the meaning or enforceability of Code provisions that invoked or relied on such references. AB 1059 was an Affirmative Legislative Proposal ("ALP") by the Insolvency Law Committee of the Business Law Section of the State Bar. Congratulations to the ILC for its hard work over several years reviewing hundreds of California statutes to provide the very important public service of keeping the statutes up to date. AB 1059 will take effect January 1, 2010 Personal Bankruptcies Hits a 4-Year HighOctober 2, 2009 NEW YORK (CNNMoney.com) -- Personal bankruptcies topped the 1 million mark in the first nine months of the year, the first time it has done so in four years, according to an industry research firm released Friday. Click here to read the full article. FDIC Fund Faces Years in Red as Failures Jolt SystemOctober 1, 2009 WASHINGTON -- The government said the fund that protects consumer bank deposits has fallen into the red and will remain there into 2012, a pointed symbol of how the aftershocks of the financial crisis will reverberate for years as banks continue to fail at a high rate. Click here to read the full article. Unprecedented U.S. Corporate Default Seen for '09September 28, 2009 NEW YORK (Reuters) - U.S. corporate debt default rates are expected to hit "unprecedented" levels in 2009, even though the economy may be past the halfway mark of the U.S. recession, according to a forecast unveiled on Monday at the Reuters Restructuring Summit. Click here to read the full article. Housing Recovery Has ‘Long Road,’ Fannie Mae CEO SaysSeptember 9, 2009 The U.S. housing market still has a “long road ahead” to recovery and investors and borrowers should remain cautious as the economy regains its footing, Fannie Mae Chief Executive Officer Michael Williams said. Click here to read the full article. Wealthy Families Face Bankruptcy on Real Estate CrashSeptember 9, 2009 Wealthy individuals’ Chapter 11 bankruptcy filings jumped 73 percent in the second quarter from a year earlier, according to the National Bankruptcy Research Center, a research firm in Burlingame, California. Click here to read the full article. Another Wave of Foreclosures LoomsSeptember 9, 2009 The housing market faces the prospect of a new round of foreclosures as hundreds of thousands of risky home loans known as option adjustable-rate mortgages reset to significantly higher payments that could force borrowers to fall behind, according to a report released Tuesday by Fitch Ratings. Click here to read the full article. Frank Bemoans Pace of Housing HelpSeptember 10, 2009 Lenders are making modest progress on a federal foreclosure prevention effort, according to new government data, but frustrated lawmakers warned Wednesday that the industry could face drastic consequences if it does not do more to help homeowners. Click here to read the full article. White House Raises Long-Term Deficit ForecastAugust 25, 2009 WASHINGTON -- The Obama administration shaved $262 billion from its estimated 2009 federal budget deficit but said the U.S. will run a $9 trillion deficit over the next 10 years -- $2 trillion more than it forecast earlier this year. Click here to read the full article. The Next Fannie MaeAugust 11, 2009 Much to their dismay, Americans learned last year that they "owned" Fannie Mae and Freddie Mac. Well, meet their cousin, Ginnie Mae or the Government National Mortgage Association, which will soon join them as a trillion-dollar packager of subprime mortgages. Taxpayers own Ginnie too. Click here to read the full article. Cramdown Proposal May Be Revived to Boost Mortgage ReliefJuly 29, 2009 House Financial Services Committee Chairman Barney Frank (D-Mass.) yesterday threatened to revive the mortgage cramdown bill that stalled in Congress this year, saying that lenders aren’t being aggressive enough in modifying troubled home loans, Bloomberg News reported yesterday. "People in the servicing industry and in the broader financial industry must understand that if this last effort to produce significant modifications fails, the argument for reviving the bankruptcy option will be extremely strong, and I think there is a substantial chance that the outcome will be different," he said. Frank managed to get a cramdown bill through the House of Representatives in March, only to see the legislation stall in the Senate as lawmakers there argued over whether to limit the provisions to certain loans or a specific timeframe. Frank said he will re-attach the provisions to any new legislation requested by the industry "unless we see a significant increase in mortgage modifications and foreclosure-avoidance." Click here to read the full article. Analysis: Lucrative Fees May Deter Efforts to Alter LoansJuly 29, 2009 Industry insiders and legal experts say that the limited capacity of mortgage companies is not the primary factor impeding the government’s $75 billion program to prevent foreclosures, but rather that many mortgage companies are reluctant to give strapped homeowners a break because the companies collect lucrative fees on delinquent loans, the New York Times reported today. Even when borrowers stop paying, mortgage companies that service the loans collect fees out of the proceeds when homes are ultimately sold in foreclosure. The longer borrowers remain delinquent, the greater the opportunities for these mortgage companies to extract revenue — fees for insurance, appraisals, title searches and legal services. Legal experts say the opportunities for additional revenue in delinquency are considerable, confronting mortgage companies with a conflict between their own financial interest in collecting fees and their responsibility to recoup money for investors who own most mortgages. From June 2008 to June 2009, the number of American mortgages that were 90 days or more delinquent soared from 1.8 million to nearly 3 million, according to the realty research company First American Core Logic. Click here to read the full article. Wall Street Journal Predicts Unemployment Will Remain HighApril 9, 2009 Click here to read the full article. Mortgage Modification Legislation Progressing in CongressFebruary 24, 2009 The financial services industry has bitterly fought the idea, often referred to as a "cramdown," but the momentum of a supportive president and escalating housing crisis appeared to have turned the tide of the battle. With Citigroup leading the way, several industry groups have indicated a compromise was likely, so long as some concessions were made in the final language of the bill. Click here to read the full article. H.R. 200—The Helping Families Save Their Homes in Bankruptcy Act of 2009by: By Jon Lieberman On Jan. 27, 2009, the House Judiciary Committee approved the Helping Families Save Their Homes in Bankruptcy Act of 2009 by a vote of 21-15, and reported it to the full House. The bill is expected to be folded into the 2009 Omnibus Appropriations Bill, slated for imminent consideration in the House. Introduced by Sen. Richard Durbin (D-Ill.), H.R. 200 delegates authority to bankruptcy judges to rewrite first mortgage terms by lowering the value of a mortgage to the current market value of the property, reducing interest rates and extending loan maturity. Click here to read the full article. Free First Consult to Tell You if We Can Help You Phone Us at 1-310-559-9224; or from Los Angeles and Ventura Counties Only Phone Toll Free 1-866-BKY-ATTY Los Angeles Bankruptcy Lawyer Disclaimer: The information on los angeles bankruptcy law, filing bankruptcy in Los Angeles, Chapter 7 bankruptcy, personal bankruptcy, Chapter 13 bankruptcy, Chapter 11 bankruptcy, credit card bankruptcy, and other bankruptcy legal information presented at this site does not constitute legal advice and does not create any attorney client relationship or contract of any kind with the Bankruptcy Law Firm, PC or Los Angeles bankruptcy lawyer Kathleen P. March, Esq. The Bankruptcy Law Firm, PC uses a written contract for each bankrkuptcy client and will only be representing you in your Los Angeles bankruptcy matter if you and the law firm sign a written legal representation contract and you pay Bankruptcy law firm for the bankruptcy legal services it performs for you. Information on this bankruptcy los angeles law firm web site is provided for informational and educational purposes only. You should never make legal hiring decisions solely upon web pages, brochures, advertising or other promotional materials. Please contact a Los Angeles bankruptcy lawyer at The Bankruptcy Law Firm, PC, for your free first consult to find out whether our Los Angeles Bankruptcy Attorneys can represent you. This web site might be characterized as an advertisement under California's State Bar Rules and is not intended to solicit clients for matters outside of the State of California. Always seek the advice of an attorney from your own jurisdiction before relying on information from this site or any web site. Kathleen P. March - Los Angeles Bankruptcy Lawyer, and Former Bankruptcy Judge - claims the copyright (2002-2009) to the content of all pages on www.bkylawfirm.com. All rights reserved. |