Settlement with Banks = Trust and Recovery?

Dec 14th, 2011
by John Mlnarik.
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The Wall Street Journal reports that banks and a number of states are close to a settlement.  It is estimated that $19 Billion would be paid and banks would be monitored by an agreed upon third party, to ensure compliance with the terms of the deal.  Although nothing has been announced the article notes that the Obama Administration is pushing for a 50 state deal in attempts to put an end to the foreclosure log jam.

With so many states strapped for cash the settlement will no doubt be a welcomed pay day. Similarly with the election year ahead the incumbent wants signs the economy is recovering well before November rolls around. External pressure aside the American people are ready to move on with their lives and get back to work.  It is unclear how resolving claims against the big banks will allow this to happen, but the link between the two is front and center in the media.

What the economy needs to move forward is trust and how the settlement will begin to rebuild the people’s trust in our economic system again is unclear.  While resolving disputes without litigation is beneficial I can’t help but think there is an opportunity in the settlement being overlooked.

Posted in: Legal issues, Uncategorized.
Tagged: · · · · ·

Foreclosure Crisis Continues

Dec 10th, 2011
by Doug Jacobs.
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240px-Sign_of_the_Times-Foreclosure

The New York Times states that the foreclosure crisis isn’t even half over!  Ouch!

The Times cited a report that analyzed the troubled homes from 2004 to 2008 and found that at least 2.7 million mortgages made between 2004 and 2008 have ended up in foreclosure and that there are nearly another 4 million in the same category.

According to the Times: “Put another way, ‘The nation is not even halfway through the foreclosure crisis.’”

The report, produced by the Center for Responsible Lending, also noted that certain types of loans have much higher rates of completed foreclosures and serious delinquencies. They include loans originated by brokers; hybrid adjustable-rate mortgages, option ARMs, loans with prepayment penalties and loans with high interest rates (subprime).

There’s additional analysis in the report which provides data about the impact this problem is having on minorities.
All in all, the foreclosure crisis is continuing.

 

image credit:  FlickreviewR

Posted in: News.

Get Back In The Real Estate Market After A Short Sale

Dec 5th, 2011
by Cathy Moran.
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Home ownership after short saleIs there  home ownership after a short sale?

One of the huge fears that keeps homeowners paying on underwater homes that overload their budget  is the worry that if they bail on the present house, it will be forever before they can buy another home.

Not so, says Keith Rockmael, a Bay Area real estate advocate.  Here’s what he wrote me on the subject:

If you listen to the media, investors and experts in the real estate everyone would be buying, buying and buying more. After all, with homes prices still soft and interest rates at ridiculously minuscule levels it would make sense. Many investors (and even owner occupiers) continue to break open their  piggy banks and dig through their mattresses to pay cash for homes.

For those without a mattress full of dinero, most people think that they can’t get a loan especially after a short sale, bankruptcy or foreclosure. Not true. People just need to look in the right place and have a relationship with a loan officer who knows their stuff.

A couple of banks and credit unions can lend to homeowners after a short sale with no waiting period or only a 90 day seasoning. Wells Fargo offers a post short sale loan if the homeowner remains current with all payments and a completed Short Sale. Homeowners needs a legitimate hardship and will likely not be able to purchase in the same city. The rates are good as it is an FHA loan.

In San Francisco, the Mission SF Credit Union can lend with no waiting period after a short sale again with no lates. Even with lates, they can lend one year after a short sale. Normally, most banks will make borrowers wait two years before they can qualify for a new loan post short sale.

With both of these loans, borrowers must show improved credit history post short-sale and the guidelines can be strict. Savvy homeowners realize that options exist for those who seek to get off the bench and back into the game.

The old bromide is that “time heals all wounds”, even to credit worthiness.  But its clear, that smart shopping for home loans can shorten the time a short seller is out of the market.

Posted in: General.

HARP 2.0 Debuts

Dec 2nd, 2011
by Cathy Moran.
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The government has launched a revised version of HARP, designed to facilitate refinancing underwater mortgages held by Fannie and Freddie.

The expectations for the impact of the program, however, are not high.

The New York Times reports that the original program promised help to 4 to 5 million homeowners.  Perhaps, 900,000 have gotten refinances, and few of those turned out to have underwater properties.

Image courtesy of Wikimedia.

Posted in: News.

We Enter The Wider World Of The Mortgage Mess

Nov 16th, 2011
by Cathy Moran.
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The hope for judicially supervised mortgage modification in bankruptcy spurred us to start this site.  That hope died in the Senate  last session.

Though Congress walked away from a workable solution, and no one has produced a viable alternative, the problems of the California housing market continue.

We are widening our focus here to discuss not just legislative solutions but negotiated solutions and litigation tied to the mortgage mess.  Send us your questions and suggest housing related topics for exploration.

We live here in Northern California and we’re here to further your knowledge about your options for living through the mortgage mess.

 

Posted in: General.

Robo signers and underwater houses

Mar 6th, 2011
by Cathy Moran.
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States Attorney Generals, investigating defective foreclosure procedures used by the big banks, have proposed a settlement that would give homeowners a means to keep houses worth less than the debt.  Lenders would be encouraged to offer principal write-downs to make it desirable to stay in upside down homes.

NACBA has proffered a principal pay down plan which it hopes can be implemented without legislation.  The plan would utilize bankruptcy’s  Chapter 13 and would be a consensual provision of the Chapter 13 plan.  In exchange for crediting every mortgage payment during the plan to principal, the lender would get a new promissory note and a  release of  claims for past lender transgressions.

Stay tuned.

Posted in: News.
Tagged: · ·

Free San Jose Modification Event

Feb 17th, 2011
by Cathy Moran.
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Meet face to fact with your mortgage servicer to discuss loan modification February 24, 2011 between 11 am and 7:30 pm at the San Jose Convention Center.

Sponsored by HUD, the Making Home Affordable Program, HOPE NOW and NeighborWorks America, admission is free.

You can either bring documents showing your household income and expenses such as your last two paychecks; information about each of your mortgages including lines of credit; statements for each of your other debts; and bank account statements, or, you can access and complete the Request for Modification form found at MakingHomeAffordable.gov.

There are helpful videos at www.youtube.com/user/MakingHomeAffordable.

You can also call 1 888 995- 4673 for more information.

Posted in: Uncategorized.

Get property tax reduction

Feb 11th, 2011
by Cathy Moran.
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February 15th is the deadline for San Mateo County homeowners to apply for a review of the tax value of their real property.  If today’s market value is less than the assessed value, you may be eligible for a reduction in property tax.

The application for a review is available online at www. smcare.org.  Or call the assessor’s office at 650 363 4500.

There is no charge for the review.  But the deadline is Tuesday, February 15th.

Posted in: Uncategorized.

Getting Assistance from HUD Counselors

Feb 8th, 2011
by John Mlnarik.
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As a bankruptcy lawyer I talk to homeowners every day who are trying to obtain a loan modification. So many of them have been at it for 18 months or more and are ready to throw in the towel.

The combination of filing for Ch 13 and working with a HUD counselor seems to be getting the best results. We send our clients to Surepath Financial for help dealing with their lender, but provide a list of others in the area as well.
When choosing someone to help with a loan modification it is important to go to a counselor approved by the U.S. Department of Housing and Urban Development for FREE assistance. You should NEVER be asked to pay for counseling or a loan modification.
Here are a number of HUD-Approved counseling services in and around Santa Clara County:
SUREPATH FINANCIAL SOLUTIONS

1190 South Bascom Avenue, Ste 208
San Jose, California 95128

PHONE: 877-615-7873
E-MAIL: clientservices@surepath.org
WEBSITE: www.surepath.org

- Counselors speak English and Spanish

AFFORDABLE HOUSING CENTERS OF AMERICA

395 E. Taylor St. Suite 230
San Jose, California 95112

PHONE: 408-297-3053
E-MAIL: jgaleano@ahcoa.org
WEBSITE: www.ahcoa.org

- Counselors speak English and Spanish

PROJECT SENTINEL

298 S. Sunnyvale Avenue, Suite 209
Sunnyvale, California 94086

PHONE: 408-720-9888 x 16
TOLL FREE: 888-331-3332
E-MAIL: mediate4us@housing.org
WEBSITE: www.housing.org

- Counselors speak English, Spanish, Chinese Mandarin, Hindi

PROJECT SENTINEL

7800 Arroyo Circle, Bldg A
Gilroy, California 95020

PHONE: 408-842-7740
TOLL FREE: 888-331-3332
E-MAIL: gilroy@housing.org
WEBSITE: www.housing.org

- Counselors speak English and Spanish
NEIGHBORHOOD HOUSING SERVICES SILICON VALLEY

1156 North Fourth Street
San Jose, California 95112

PHONE: 408-279-2600
WEBSITE: www.nhssv.org

- Counselors speak English, Spanish, Hmong and Vietnamese

NORTHERN CALIFORNIA URBAN DEVELOPMENT

Keisha Woods, Housing Program Manager
1836 Bay Road, Suite B
East Palo Alto, California 94303

PHONE: 650-328-1890×110
E-MAIL: keisha@norcaludc.org
WEBSITE: www.norcaludc.org

- Counselors speak English and Spanish
AVENIDAS

450 Bryant St
Palo Alto, California 94301

PHONE: 650-289-5433
E-MAIL: hlandsman@avenidas.org
WEBSITE: www.avenidas.org

– English Only

NATIONAL ASIAN AMERICAN COALITION

1535 Landess Avenue, Suite 146
Milpitas, California 95035

PHONE: 408-343-7701

- English Only

*** If you are outside Santa Clara County, the Department of Housing and Urban Development has a list of approved counseling agencies by State. You can access the list here.
Once you’ve set out on the path of seeking a mortgage modification consider the following tips.
• Do not let anyone pressure you into signing papers right away. Take your time to decide, and get more than one opinion on your situation.
• Do not sign your deed over to anyone if you are applying for a mortgage modification
• NEVER make a mortgage payment to anyone other than your mortgage servicer without its express approval

Posted in: General.
Tagged: · · · · · · · · ·

Hearings Tuesday on Mortgage Mediation

Jan 31st, 2011
by Cathy Moran.
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The Senate Judiciary Committee is holding hearings tomorrow at 10 a.m. regarding foreclosure mediation programs and the impact that Bankruptcy Courts may have on limiting Homeowner and Investor Losses.  A link to the web site where you can hear the web cast of the hearings follows below, along with the names of those testifying during the scheduled hearing.

“Foreclosure Mediation Programs: Can Bankruptcy Courts Limit Homeowner and Investor Losses?”

Senate Judiciary Committee – Full Committee

http://judiciary.senate.gov/hearings/hearing.cfm?id=4960

DATE:February 1, 2011
TIME:10:00 AM
ROOM:Dirksen-226

OFFICIAL HEARING NOTICE / WITNESS LIST:
January 25, 2011

NOTICE OF COMMITTEE HEARING

The Senate Committee on the Judiciary has scheduled a hearing entitled “Foreclosure Mediation Programs: Can Bankruptcy Courts Limit Homeowner and Investor Losses?” for Tuesday, February 1, 2011 at 10:00 a.m. in Room 226 of the Dirksen Senate Office Building.

Senator Whitehouse to preside.
By order of the Chairman.
Witness List
Hearing before the Senate Committee on the Judiciary On
“Foreclosure Mediation Programs: Can Bankruptcy Courts Limit Homeowner and Investor Losses?”
Tuesday, February 1, 2011 – 10:00 a.m.
Dirksen Senate Office Building, Room 226

The Honorable Robert Drain
United States Bankruptcy Judge
Southern District of New York

John Rao, Attorney
National Consumer Law Center
Boston, MA

Larry Britt, Homeowner
Riverside, RI

Dr. Anthony B. Sanders
Professor and Senior Scholar
The Mercatus Center, George Mason University
Fairfax, VA

Andrew M. Grossman
Visiting Legal Fellow
The Heritage Foundation
Washington, DC

Posted in: Uncategorized.

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