I admit that I have a stick in my craw. In May 2008, Massachusetts (a non-judicial foreclosure state) imposed a 90 day cooling off period to give time for defaulting home loan borrowers to work with their lenders. This summer, that period of time got extended to 150 days. Now, there are calls for a “foreclosure moratorium” in Massachusetts. I am not a fan of what I think is this inevitability, but before y’all think I’ve really fallen off my rocker, let me give you my perspective, and why I think we need to not just think about the moratorium – but for who and for how long.
Archive for the ‘Bankruptcy’ Category
Hope is a 4-Letter Word
Sunday, October 3rd, 2010
Many have read media reports that decry HAMP (the Obama Administration’s purported “response” to the foreclosure crisis) and proclaim it is as lipstick on a pig. After two years have watching clients struggle in this program and few coming up with anything meaningful, I want to go on record as saying this:
HAMP is not only lipstick on a pig, but it’s continued existence only puts more light on the political impotence and the bankruptcy of leadership on both Beacon Hill and Capital Hill.
Law & Propaganda
Saturday, September 25th, 2010
Mercedes Rule
Tuesday, August 31st, 2010
A rather interesting decision has come out of the Bankruptcy Court for the Northern District of Texas at Dallas. The decision is only 4 pages, but in addition to quoting Janis Joplin, it speaks to something that debtors need to hear, that people thinking about bankruptcy need to hear, and that attorneys practicing in bankruptcy court sometimes need to be reminded of.
While the decision follows this blog, I’ve filled in the lines a bit by looking at the public records and bringing in some additional facts.
20/5 Redux: Things I Won’t Do
Monday, August 30th, 2010
In July 2009, I blogged about “Things I Won’t Do” which includes taking what I know will be someone’s last buck to file a bankruptcy case that I know will fail… and there seems to be this level of agnst that I cannot help them. I’ve received a few calls lately from folks who have not read it. So I’m posting it again with the reminder that I’m in the business of helping people move forward in their lives.
Or as I said recently to someone, “I’m a bankruptcy lawyer. I cannot turn water into wine.”
20/5 Redux: Thoughts on When to “Walk Away”
Thursday, August 26th, 2010
This was first posted in March 2008. More than two years later, the housing market is still in the pits, and more folks are opting to simply walk away from real estate they can no longer afford. Little has changed. And I dare say, it’s getting worse (although those seeking relection this year might want to disagree). If you own a condo or are in a homeowners association, the 2005 changes to the Bankruptcy Code force you to take some new issues into consideration.
20/5 Redux: A Table Saw Crosses the Road
Tuesday, August 24th, 2010
Yet Another Reason to Avoid the Rip-Off of Debt Settlement
Thursday, August 19th, 2010
I was recently retained by a client who – like many people struggling nowadays – tried to tackle their mounting financial problems by going to a debt settlement company. I’ve said it once, and I’ll say it again: debt settlement companies are a rip-off. The proof is in how empty my client’s wallet is now, and where my client is now.
Staying Out of the Valley of Disappointment
Tuesday, August 17th, 2010
Some Massachusetts homeowners have this peculiar belief that a homestead declaration is the legal equivalent of a real Chinese fire wall (i.e., with flames). That it keeps creditors at bay, allowing you to live in bliss in your home until you die or get sick of it and want to move on to a greener patch of grass. That’s not entirely the case. Not all debts are covered and not all creditors can be kept at bay. If you’re up to your eyeballs in debt, relying on the Homestead Declaration and only on the Homestead Declaration to keep your home from creditors will lead you to an unhappy and mythical place I call the Valley of Disappointment.
I came up with the Valley of Disappointment because I thought it seemed like a humourous metaphor But then, just to be safe, I did a websearch and just want to caution my readers not to confuse my mythical and metaphorical Valley of Disappointment, with Disappointment Valley which is: (1) a real valley located in Colorado; as well as (2) a documentary which according to IMDb “examines the plight of America’s wild horses and the rapidly deteriorating condition of our wild Public Lands.” Any similarity between my imaginary Valley and the real thing or the movie is totally unintentional and accidental…and kind of scary.
I envision the Valley of Disappointment as a place where none of the stores are open when you need them to be, and those that are all have the products you don’t want at prices you can afford, and products you need at prices that shock the conscience. I envision it as a place where the traffic lights stay green for only three seconds before they jump to red, where they stay for 3 minutes. It’s a place where things just don’t go your way, and you feel pretty powerless to do anything about it. It’s generally always cloudy or rainy. The street signs are all confusing, and it can be tough to navigate your way through it or out of it. Sometimes you just don’t know how you got there. Other times you do, and that knowledge can sometimes make it all worse. But enough about what I envision about the Valley of Disappoitment… I was talking about Homestead rights:
Barney Frank: Please Read This
I have a bone to pick with Barney Frank. Yesterday, a new multi-million dollar loan program was rolled out by HUD. Sharing in the local announcements were local Congressmen and other elected officials.
According to a Boston Herald report:
Boston.com reported the program a little differently, but in substance, it’s the same.
That smells a bit like “hope.” So I’m afraid the sound of this program ruffles my feathers a bit. But what compels me to write is this quote, which also appeared in the same Boston Herald report:
Really?
I’m going on record: Mr. Frank, I’m no anarchist I find this program offensive. So today, I write this blog to you.
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Tags: Bankruptcy, Bankruptcy Abuse Prevention & Consumer Protection Act of 2005, Chapter 13, Commentary, Consumer Protection, foreclosure, Homes, homesteads and real estate, In the News, Mortgages and Foreclosures, Yep. We're in trouble.
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