San Jose Bankruptcy Lawyer Blog

A San Jose bankruptcy attorney answers: What is a Loan Modification?

A loan modification is requested most often when a borrower has either fallen behind on his or her monthly obligations or the borrower simply cannot afford to continue making monthly payments at the agreed upon obligations due to an increase in APR or some other factor. Loan modifications are very difficult to obtain and are not part of any court’s jurisdiction. Therefore, the judge cannot order the lender to even attempt a loan modification. A loan modification will usually lessen the interest rate while packing all the arrears to the end of the loan. Most times this will cause the borrowers monthly payments to reduce. There are several loan modification companies out there to assist in the loan modification process, but ultimately the decision lies with the lender and their financial interpretation of the borrower.

If you have questions regarding Bankruptcy in San Jose please contact us at 408.279.2288 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys. After you have spoken with one of our downtown San Jose bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Jose and the South Bay!

A San Jose bankruptcy attorney on How Chapter 13 and Foreclosure Works...

Once a borrower defaults on his monthly obligations to a lender to which monies were secured by real property, the lender will likely opt to foreclose on the property in an attempt to sell the property and collect his money. One way to postpone a foreclosure and/or Trustee’s Sale is to file for Chapter 13 bankruptcy. In a Chapter 13 bankruptcy, the debtor is to propose a Chapter 13 Plan in which he or she is to pay the majority of their secured debt through a court assigned Trustee. Included in the Chapter 13 plan are automobile payments, payments to the IRS and FTB, and most importantly, the arrearages on any secured property. Once the Chapter 13 bankruptcy is filed, it is almost equivalent to “starting” the mortgage payments fresh. For the sake of the mortgage and bankruptcy, the minute the petition is filed the borrower is ‘current’ on their mortgage and the arrears get placed into the Chapter 13 Plan.

If you have questions regarding Bankruptcy in San Jose please contact us at 408.279.2288 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys. After you have spoken with one of our downtown San Jose bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Jose and the South Bay!

A San Jose bankruptcy attorney fills you in on:
How Chapter 7 and Foreclosure Works...

Once a borrower defaults on his monthly obligations to a lender to which monies were secured by real property, the lender will likely opt to foreclose on the property in an attempt to sell the property and collect his money. The easiest way to postpone a foreclosure and/or Trustee’s Sale is to file for Chapter 7 bankruptcy. The filing of a Chapter 7 bankruptcy places an automatic stay on any legal actions against the filing debtor. This will stop any foreclosure sale. However, in a Chapter 7 bankruptcy the lender will likely move the court for relief from the automatic stay and begin the foreclosure process again. Filing for Chapter 7 bankruptcy is a great way to postpone the foreclosure process in order to buy the debtor some time to either save some money or find a new place to live.

If you have questions regarding Bankruptcy in San Jose please contact us at 408.279.2288 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys. After you have spoken with one of our downtown San Jose bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Jose and the South Bay!

A San Jose bankruptcy attorney addresses:
What is a Non-Judicial Foreclosure?

Non-judicial foreclosure is one of two main types of foreclosures, the other being judicial foreclosure. In a non-judicial foreclosure, sometimes known as foreclosure by power of sale, the lender may supersede or bypass the judicial process of foreclosure and sell the property in order to satisfy the loan by the lender. This only occurs if and when the borrower defaults on their monthly obligations and either ignores or cannot comply with the request by the lender to cure the default. The terms and conditions of a non-judicial foreclosure are typically outlined in the lender’s mortgage papers. The highest bidder at the non-judicial foreclosure sale becomes the outright owner of the property free and clear of all interest from the former owner but superior liens may survive the sale. For more infomation on foreclosure, please contact us toll-free.

If you have questions regarding Bankruptcy in San Jose please contact us at 408.279.2288 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys. After you have spoken with one of our downtown San Jose bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Jose and the South Bay!

A San Jose bankruptcy attorney answers:
What is Foreclosure?

A foreclosure is the legal process wherein a lender of money and/or collateral, usually a mortgage, attempts to collect on the monies they are owed from the individual by re-taking the property securing the loan. There are typically two types of foreclosure, judicial and non-judicial. In judicial foreclosure, the court supervises the sale of the property foreclosed upon. The lenders are paid in the order of the priority. In non-judicial foreclosure, there is typically a clause in the lending papers which states that the lender can bypass judicial foreclosure and use methods outlines by each state/district’s guidelines. Should the sale of the property not satisfy all liens attached, the lender may file and request a deficiency judgment. The foreclosure process can be stopped by filing for protection under any of the bankruptcy chapters.

If you have questions regarding Bankruptcy in San Jose please contact us at 408.279.2288 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys. After you have spoken with one of our downtown San Jose bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Jose and the South Bay!

A San Jose bankruptcy attorney helps with: What To Do About Bankruptcy And Loan Modification in California?

What is a loan modification in CA?

A loan modification in CA is when your lender agrees to modify the terms of the mortgage in order for you to afford your monthly payments and stop foreclosures. A loan modification in CA often requires the borrower to be in arrears on their monthly mortgage payments. When attempting a loan modification in CA, since you usually must allow your mortgage to default, it is wise to place each monthly mortgage payment into a savings account should the modification not go through. That way, your loan modification failure can be easily cured and you will not lose your home. When considering a loan modification in CA, lenders often look at the amount owed, the equity in the house (if any), and the borrower’s ability to continue to make monthly payments. Though not often obtained, a loan modification in CA help to alleviate California’s number one ranking on the foreclosure charts.

If you have questions regarding Bankruptcy in San Jose please contact us at 408.279.2288 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys. After you have spoken with one of our downtown San Jose bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Jose and the South Bay!

A San Jose bankruptcy lawyer helps with "I Need Help With My Loan Modification, CA resident!!!"

What is a loan modification in CA? A loan modification in CA is when your lender agrees to modify the terms of the mortgage in order for you to afford your monthly payments and stop foreclosures. A loan modification in CA often requires the borrower to be in arrears on their monthly mortgage payments. When attempting a loan modification in CA, since you usually must allow your mortgage to default, it is wise to place each monthly mortgage payment into a savings account should the modification not go through. That way, your loan modification failure can be easily cured and you will not lose your home. When considering a loan modification in CA, lenders often look at the amount owed, the equity in the house (if any), and the borrower’s ability to continue to make monthly payments. Though not often obtained, a loan modification in CA help to alleviate California’s number one ranking on the foreclosure charts.

If you have questions regarding Bankruptcy in San Jose please contact us at 408.279.2288 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys. After you have spoken with one of our downtown San Jose bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Jose and the South Bay!

A San Jose bankruptcy attorney answers the question:

How do I stop foreclosure in San Jose, CA?

Purchasing a house can be an exciting and life-changing event. On the other spectrum, going into default and foreclosure can be just as scaring and depressing. The easiest and quickest way to stop foreclosure in San Jose is to file for bankruptcy. The automatic stay of bankruptcy will stop foreclosure for the time being. This will allow the individual some time to either find a new place to live, or come current on the arrears. Often times, when a person files bankruptcy to stop foreclosure and save their house, they file for a Chapter 13 bankruptcy. A Chapter 13 bankruptcy will stop the foreclosure and generally allow a person to pay the arrears over a period of five (5) years so long as they are current on the mortgage payments following the filing of bankruptcy. This period of time following the filing of bankruptcy allows the individual to wrap up their financial affairs and look to the future without the stress of the looming foreclosure.

If you have questions regarding Bankruptcy in San Jose please contact us at 408.279.2288 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys. After you have spoken with one of our downtown San Jose bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Jose and the South Bay!

A San Jose Bankruptcy attorney comments on Mortgage Modification and Bankruptcy

One of the hottest new trends in the mortgage market is what is called a mortgage modification. A mortgage modification is when the lender, or mortgagor, sits down with the borrower, or mortgagee, and renegotiates the terms and possibly the amount of the current mortgage. A mortgagor is inclined to at least attempt a mortgage modification for the simple reason that as currently stands, the mortgagee cannot pay its mortgage and the lender is virtually without profit on the loan. The lender then has to go through the lengthy and somewhat expensive process of judicial foreclosure.

Mortgage modifications are rare however. Often times, borrowers attempt to go after a mortgage modification alone. A lender can take advantage of this as it is likely the individual attempting the mortgage modification is inexperienced and not as knowledgeable in the real estate field.

Another common trend arising is to see borrowers attempt a mortgage modification while preparing for a chapter 7 bankruptcy. This added pressure by the borrower of threatening to file bankruptcy and discharge his or her debts causes the lender to think twice about the mortgage modification. This is furthered by the 90-day automatic stay of bankruptcy. It is best to consult an attorney or legal professional before attempting a mortgage modification.

If you have questions regarding Bankruptcy in San Jose please contact us at 408.279.2288 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys. After you have spoken with one of our downtown San Jose bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Jose and the South Bay!

A San Jose bankruptcy attorney discusses foreclosure

California is seeing a new trend in lawsuits; Homeowners Associations are suing former homeowners over unpaid association fees on homes that have been foreclosed upon and individuals who have filed for bankruptcy. On top of the association fees already owed, these individuals are being sued for attorney and court fees associated with the lawsuit. One of the ways foreclosed and bankrupt homeowners are getting hit with these fees is that when the bank forecloses on the house, the debtor(s) name(s) are left on the Deed and thus they are liable for the yearly fees.

A bankruptcy filing discharges any homeowner's fees that accrued before the bankruptcy case is filed. The discharge does not release the homeowner for fees for months after the case is filed, for so long as the debtor owns or occupies the residence.

The newly enacted 11 USC 523(a)16 discharges “any debt for a fee or assessment that becomes due and payable after the order for relief to a membership association with respect to the debtor’s interest in a unit that has condominium ownership, in a share of a cooperative corporation, or a lot in a homeowners association, for as long as the debtor or the trustee has a legal, equitable, or possessory ownership interest in such unit, such corporation, or such lot, but nothing in this paragraph shall except from discharge the debt of a debtor for a membership association fee or assessment for a period arising before entry of the order for relief in a pending or subsequent bankruptcy case . . . .”

The new language being “as long as the debtor or the trustee has a legal, equitable, or possessory ownership interest” is what triggers the liability.

If you have questions regarding Bankruptcy in San Jose please contact us at 408.279.2288 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys. After you have spoken with one of our downtown San Jose bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Jose and the South Bay!

A San Jose bankruptcy attorney explains why Foreclosure Should Be a ‘Fore’ Letter Word

In a recent first quarter study published by RealtyTrac, the largest publisher of foreclosure databases, nationwide foreclosures rose seven percent or approximately 930,000 homes. What does this equate to in the real world? Take a walk around town and count 137 homes. Every time you count your 138th home, that home has been foreclosed upon and another family must find a new place to live.

Currently, California boasts the fourth highest foreclosure rate in the country, behind only Nevada, Arizona, and Florida. According to the study, one in every 62 Californians received a foreclosure filing in the first quarter of 2010. Not surprisingly, California boasts another fourth place finish … unemployment. Currently, 12.6% of Californians are unemployed. Is it any coincidence that as the unemployment rate increases, so does the foreclosure rate?

With no end in sight, how does the average American family of 2.93 people protect themselves from being forced out of their homes following the real estate’s tomfoolery of predatory lending? Americans can turn to bankruptcy for protection of their home which they worked so hard to obtain. The government has created subsidized loan modifications to attempt to assist, but to date that has failed. One advantage of bankruptcy is that it does not entice anyone to purposely default on their loan obligations in order to get better repayment terms. In opposition banks have fought vigorously in Congress to ensure that bankruptcy judges are stripped of any power to adjust loan terms. Said opposition throws fuel on the foreclosure fire.

If you have questions regarding Bankruptcy in San Jose please contact us at 408.279.2288 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys. After you have spoken with one of our downtown San Jose bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Jose and the South Bay!

A San Jose bankruptcy lawyer talks about loan mods and foreclosure...

Many consumers are confused as to why they are constantly hearing about loan modifications and the Administrations plan to aid home owners, but when they actually try to obtain a loan modification are just given the runaround. A big problem with the process is lender incentive to actually provide debtors with loan modifications. According a report by Real Capital Analytics, lenders are recovering between 60 and 70% of the loan values on foreclosed properties. In some state the recovery rate is as high as 78%. In California, the recovery rate is especially high: San Francisco has the third highest recovery amount at 70%, and Los Angeles is at 70% plus.

The best recovery rates are on commercial mortgages for retail properties. In 2009, lenders recovered $1.9 billion on 145 commercial mortgages that were in default. Higher recovery rates in California may make lenders less likely to negotiate with consumers in California compared to consumer in places such as Michigan and Florida which have recovery rates as low as 45%.

If you have questions regarding Bankruptcy in San Jose please contact us at 408.279.2288 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys. After you have spoken with one of our downtown San Jose bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Jose and the South Bay!

San Jose Bankruptcy Attorney discusses states in most financial challenge

California residents are not surprised that given the current economic downturn that it is one of the nation’s top states in financial trouble. The entire west coast has been significantly impacted by foreclosures and the housing market crash, including Oregon, Arizona, and Nevada.

A recent study which placed California in the top 10 states in financial crisis based its conclusion on foreclosure rates, loss of state revenue, poor money management practices, relative size of budget gaps, and unemployment rates.

The San Jose economy still continues to struggle with increased unemployment and tanking housing values. Some areas in the Silicon Valley are slowly starting to recover, but the impact of the economic downturn is still devastating. With unemployment on the rise, many once prospering San Jose and Silicon Valley residents are having to turn to various programs for debt relief including bankruptcy and debt settlement.

If you have questions regarding Bankruptcy in San Jose please contact us at 408.279.2288 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys. After you have spoken with one of our downtown San Jose bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Jose and the South Bay!

San Jose Bankruptcy Attorney comments on House of Reps vote against homeowner legislation...

When the U.S. House of Representatives voted against legislation that would have allowed homeowners to modify their loans on a principal residence in a bankruptcy case (Chapter 13), it was at least the second time this amendment came up for vote, and this time only 50 democrats voted in favor. Thus, the bankruptcy law remains unchanged on this issue. Loans against a principal residence cannot be modified in a bankruptcy case (except that in some circumstances–and only in some districts– a junior lien may be removed if and only if the value of the property is less than the amount owed to the 1st mortgage).

Of course, there were a number of variables associated with today’s vote that were not a factor in the earlier vote, particularly given that Members also were being asked to vote against the banks by supporting the creation of a Consumer Financial Protection Agency (CFPA).

If you have questions regarding Bankruptcy in San Jose please contact us at 408.279.2288 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys. After you have spoken with one of our downtown San Jose bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Jose and the South Bay!

A San Jose bankruptcy attorney clarifies more on HAMP...

If the net present value (“npv”) test shows that the lender would receive at least as much under the calculated modification as if the property were foreclosed, the lender is required to offer the modification. It is not optional. If the “npv” test does not favor the modification the lender may, in its discretion, offer the modification to the borrower.

If the “npv” does not favor the modification, but the lender wishes to offer it, the interest bearing balance must at least equal the current value of the property.

If the “npv” favors the modification, the lender is required to forbear principal up to the greater of 30% of the unpaid principal balance or the amount that would provide for amortization of the current value of the property, to the extent necessary to lower the “tmp” target first mortgage montly payment to 31% of the borrower’s gross income. The lender may in its discretion forbear more principal.

If you have questions regarding Bankruptcy in San Jose please contact us at 408.279.2288 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys. After you have spoken with one of our downtown San Jose bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Jose and the South Bay!

San Jose Bankruptcy Attorney Comments on Foreclosure Protection...

Residents and consumers in San Jose who are working on a loan modifications may be interested to know that the Obama administration is considering additional protections to ensure homeowners are treated fairly and consistently under its mortgage relief program.

I can’t tell you how many times, as a San Jose Bankruptcy Attorney, I have clients sit down in my office and tell me their house is going through foreclosure but their working on a loan modification. Generally the story goes like this; borrower calls bank and inquires about a loan modification. Bank tells borrower that in order to be considered for a loan mod they must first be delinquent on their mortgage. Generally the magic number is three months. Borrower stops paying mortgage for three months. During this time borrower sometimes uses the mortgage payments on a loan modification attorney or generally spends the money on other expenses. Loan modification fails…surprise! Borrower is now three months behind on their mortgage. Borrower is now facing foreclosure.

It appears that the Obama administration is not unaware of these practices. According to the associated press the administration has cited cases of lenders continuing with foreclosures while homeowners were being evaluated for help. Thankfully, that practice would be banned under the new rules.

Still, these rules apply only to the relief program setup by the Obama administration. Homeowners who are not seeking help under the Obama plan should consider bankruptcy as an alternative. At the very least bankruptcy will stall the foreclosure process and can in certain circumstances provide a solution that will allow a debtor to keep their home!

If you have questions regarding Bankruptcy in San Jose please contact us at 408.279.2288 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys. After you have spoken with one of our downtown San Jose bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Jose and the South Bay!