Attorney General Martha Coakley announced yesterday that a settlement has been reached with five lenders involved in a foreclosure rescue scheme. The lenders involved are First Horizon Home Loans; Option One Mortgage Corp.; Wells Fargo Bank, N.A.; America Brokers Conduit; and Ocwen Loan Servicing, LLC.
More on the settlment can be found here.
This morning’s Worcester Telegram is reporting that from January 1, 2006 through June 30, 2007 a total of 1,370 foreclosure notices were filed by lenders against Worcester homeowners. It also does not appear it will get better anytime soon:
Trouble could continue for the next two years, according to Mr. [Clark Ziegler, executive director of the Massachusetts Housing Partnership]. ARMs on about 200 more Worcester homes are scheduled to reset before the end of this year, he said. About 1,000 more ARMs reset in Worcester next year, followed by 1,000 more in 2009, he said.
Anyone facing foreclosure, or considering just “walking away” from their home, must read this important announcement from the IRS.
Bank of America reports that “’unprecedented dislocations’ in credit markets will have a ‘meaningful impact’ on third-quarter results at its corporate and investment bank.” Unprecedented dislocation sounds painful. Perhaps that’s why they recently hiked up their ATM fees.
From CNNMoney.com, a Chapter 13 debtor explains why filing for bankruptcy was the best decision he ever made.
Over at The Street.com, reporter Cliff Mason shares his experiences with a debt collector. It is a good read, but I have to stress that if you are having problems with a debt collector, contact a local consumer protection attorney to advice.
While my practice is limited to Massachusetts, I understand that people all over the country read this blog. (Of course, they do so with the understanding that it’s not legal advice and that they should confer with a local attorney who can help them.) With that said, my observations this morning in Bankruptcy Court might be helpful to just about anyone facing bankruptcy.
Last week, a Chapter 13 case was filed by a debtor who had a pending Chapter 7 case which had been filed earlier this summer. The judge asked “why do I have two pending bankruptcy cases at the same time?” A good question.
Today the The Wall Street Journal reports that the bankruptcy of American Home Mortgage Investment Corporation puts thousands of homeowners in “imminent risk” of losing their homes.
From the New York Post: Countrywide reportedly continues its struggle in this mortgage and housing meltdown.
And finally, USA Today reports that there should be no assumptions that the Federal Reserve will cut interest rates.
Dallas Federal Reserve Bank President Richard Fisher said the U.S. economy appears to be weathering troubles in housing and financial markets, but it is uncertain how things will play out.“Our economy appears to be weathering the storm thus far. The future path of that storm and the appropriate policy course, however, are still to be determined,” Fisher said in remarks prepared for delivery to a community forum in Laredo, Texas.
Last summer, I questioned whether we were heading into a Perfect Storm. If you read the news close enough, it would appear that we are. Are you prepared?
When faced with a foreclosure, most people will consider a Chapter 13 filing. But I have been hearing some rumblings here and there that many people seeking protection under Chapter 13 are opting to go it alone, without an attorney. While certainly people have the right to represent themselves, there is no good reason to not hire an attorney for a Chapter 13.. In an effort to drive my point home, I have identified here the Top Ten Reasons Why You Should Not File Chapter 13 Without an Attorney. I’ve also done so while still hoping to leave a smile on your face.
May we hear a drum roll!
A Message For Those With Their Head in the Sand
Here’s one for the “believe it or not” list: ostriches do not hide their heads in the sand. I know – you’re thinking “get OUT!” I was as shocked as the next person. Apparently, while they do not bury their head, they will sometimes lie on the ground trying to make themselves look inconspicuous. According to The Phrase Finder:
Birds are not stupid (at least not all of them), and I find it difficult to believe that a bird that merely lies about hoping not to be avoided (such as one might do at a high school or college reunion) is intellectually deficient. So if ostriches don’t hide their heads in the sand, why do people struggling with high house payments often do just the opposite?
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Tags: Bankruptcy, Chapter 11, Chapter 13, Chapter 7, Commentary - Legal, Credit and Debt, debt, Mortgages and Foreclosures
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