Brian Korte, P. A

thursday, 09 October 2008
Defending your foreclosure does pay off!!

Just a note to let everyone know that defending your foreclosure in the courts does work. I have talked to several people over the last few days that I suggested they not walk away from their homes but fight and 2 of them told me that their banks have made offers to REDUCE their amount owed and signigicantly! One was almost 35%. So you can see that staying in your home and fighting the banks can, and will, work if you have the right attorney and file the proper motions.

Until later, Joe

Jordan Budlick, P. A

Monday, May 25, 2009
Use of Home Affordable Modification Program (HAMP) with Chapter 13

Chapter 13 bankruptcy may present a platform to obtain modification of first mortgages under the U.S. Treasury Department’s “Home Affordable Modification Program” (HAMP).

As most people are aware, Congress did not yet pass the “cram-down” provision for principal residential mortgages. Despite this, the legal landscape does seem to indicate that the HAMP program will be of substantial assistance to homeowners – perhaps in many instances – more than the much sought after “cram-down”.

The chapter 13 plan may be a good platform to obtain relief under HAMP. As part of the chapter 13 plan, modification of the first mortgage may be sought under HAMP. Usually the mortgage company retains an attorney to represent their interests and this lawyer will serve as a contact person to insure review for HAMP relief. A substantial portion of first mortgage are eligible for HAMP relief either as Fannie Mae or Freddie Mac related mortgages (GSE Loans) or as the mortgage servicer has agreed to participate in HAMP (non-GSE Loans).

Some homeowners have trouble communicating with their mortgage company to obtain HAMP relief. But as most mortgage company usually retain an attorney to represent their interests, this mortgage company attorney will serve as a contact person to insure review for HAMP relief.

Upon filing of the chapter 13 case, most foreclosure actions are stayed until further order of the court. This automatic stay allows for pursuance of approval of the chapter 13 plan, HAMP modification of the first mortgage, avoidance of wholly underwater junior mortgages, and substantial discharge of unsecured debt.

Posted by Jordan E. Bublick, Bankruptcy Attorney at 10:45 PM