I imagine that any homeowner facing foreclosure would find these words quite comforting. Unfortunately, we’re hearing that this claim might be reflective of a scam. And even more troubling, it could lawyers who perpetuating it.
Archive for February, 2007
Housing Market Blues
Tuesday, February 27th, 2007
The news on the housing market is not cheery.
The FDIC reports that residential mortgage loan charge offs climbed to almost 200% during the 4th quarter of last year. The FDIC also reports that the number of deliquent loans at banking institutions is also on the rise.
The Japanese are getting concerned over increasing defaults in sub-prime mortgage loans here in the US. They are not the only ones. Freddie Mac today announced “today announced that it will cease buying subprime mortgages that have a high likelihood of excessive payment shock and possible foreclosure.”
So there’s all that news, and then we have today. Apparently tired of the cold winter weather, the stock market headed south. Marketwatch reports that todays drop (which included a 200 point drop in one minute) is the worst one-day drop since 2001. From Breitbart.com:
The housing market, which the Street had been hoping had bottomed out, also looked far from recovery after a Standard & Poor’s index indicated that single-family home prices across the nation were flat in December. A later report from the National Association of Realtors said existing home sales climbed in January by the largest amount in two years, but the data didn’t erase housing-related concerns, as median home prices fell for a sixth straight month.
Some argue that the drop is simply a long overdue correction. Others blame the Drudge Report.
All I can say is that these sure are interesting times.
Homestead Update: Domicile v. Residence
Tuesday, February 27th, 2007
When someone asks you where you reside, the answer is usually easy. But when someone asks you where you are domiciled, the answer might not be the same. A recent Massachusetts bankruptcy court decision determined that a debtor who claimed Massachusetts was only a temporary home could not use the Massachusetts homestead statute to protect property in Michigan where he was domiciled.
The debtor sought to shield from creditors approximately $30,000 in equity in the Michigan property. The Massachusetts homestead statute (subject to certain limitations) protects up to $500,000 in equity in a debtor’s residence. The Chapter 7 Trustee objected to the claimed exemption. He argued that at the creditor’s meeting, the debtor admitted that he had not occupied the Michigan property and had lived in Massachusetts for several years. Because he did not reside in the property, the Chapter 7 Trustee argued that the debtor could not use the exemption.
Debtor claimed that the property had been in the family for generations and is acquired it in 1988. He lived in the property for approximately 10 years until he moved to Massachusetts to take care of his ailing grandmother. He viewed the move to Massachusetts as temporary. While here, he continued to maintain the property and visited it once per year. He did not rent it out. In December, debtor’s grandmother died and he argued that he intended to return to the property.
Debtor argued that he could only use the Massachusetts homestead exemption because he resided in Massachusetts prior to filing. He argued that while the homestead statute does not expressly state whether a home must be located in Massachusetts in order for the statute to apply, he is entitled to use that exemption. He resided in Massachusetts when he recorded his homestead declaration. The Trustee then claimed that based on the debtor’s responses to his objections, the debtor resided in Michigan at the time of the filing, and therefore, the Debtor must choose between the federal or Michigan exemptions, not Massachusetts.
It’s Tax Refund Time (for some)
Thursday, February 22nd, 2007
Many people get tax refunds, and today Reuters reports that a National Retail Federation survey reveals what some will be doing with their refunds:
…According to the survey, which polled 9,027 consumers between February 1 and February 8, only about 10 percent will dedicate a portion of their return to major purchases or a vacation. About 43 percent plan to use it to reduce debt, while about 38 percent see saving it, and more than 25 percent will put the money toward everyday expenses.
So, what are you doing with your refund this year?
Homeowners Warned of Foreclosure Scams
Tuesday, February 13th, 2007
The Chief Economist for the Real Estate Center at Texas A&M University is warning struggling homeowners about foreclosure ‘rescue’ scams:
Here is how the scam works. The homebuyer gets behind on mortgage payments. The predatory lender offers a “loan to get caught up” on the delinquent mortgage payments. In exchange for the rescue, the homeowner signs over the title to the predator, who promises that the homebuyer may remain in the home while paying rent. The predator then sells the house to someone else, and the original homeowner gets an eviction notice.
Cease Purchasing “Crap”
Monday, February 12th, 2007
Atlanta bankruptcy attorney and fellow NACBA member Jonathan Ginsburg has a great post today and recommends two websites that I will also pass along:
The first is a blog called Debt Free and more notably, a recent entry called “How the Red Flags of Debt Can Save You.”
The second, and definitely more entertaining is StopBuyingCrap.com.
Bullying Our Troops
Thursday, February 8th, 2007
KCEN-TV out of Texas reports that aggressive debt collectors are bullying our troops overseas. An attorney tells them:
I hate to say it, but they’re easy targets. They’re in Iraq. They’re in Afghanistan. They’re at bases across the world and the collectors realize that. They start going after spouses, they start calling commanding officers..
The report suggests that debt collectors “hope military members will quickly fold and hand over money, before they know their rights and realize they’re being violated.”