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.
Archive for the ‘Foreclosures and Real Estate’ Category
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:
The Advertised Auction of 115 Cottonwood Street
Tuesday, June 1st, 2010
My joyful descent into holiday weekend relaxation mode was interrupted by a Friday afternoon news story that caught my attention. Harmon Law Offices, a Massachusetts law firm, placed an ad in the New Bedford Standard Times announcing a land sale in Fairhaven.
The advertisement stated that the land “…shall not be sold, leased or rented to any person other than of the Caucasian race or to any entity of which any person other than of said race shall be a member, stockholder, officer or director.”
In a statement issued to FOX25, Harmon Law Offices said: “This notice involves a restriction that a previous owner placed on the property. We do not condone the language and do not believe that it would be enforceable. It is industry practice to include in the notice of sale the exact legal description as set forth in the mortgage. We have removed the language for future legal notices.”
As I mentioned on Twitter, and as I’ve been thinking about on the weekend, this news story raises a number of issues. (more…)
Massachusetts Commission Against Discrimination Launches Investigation into Advertised “Caucasion Only” Land Sale
Friday, May 28th, 2010
Click the link below to read the press release from the Massachusetts Commission Against Discrimination about the “caucaisan only” land foreclosure auction sale advertised in the New Bedford Standard Times.
Twice.
Follow us on Twitter for more as this story develops (which oddly, took root at 3pm on a Friday afternoon of a long weekend that I think most people – including yours truly – really needs.)
Hat Tip to Fox 25.
Some ‘Provocative’ Questions about ‘Extend and Pretend’
Monday, April 5th, 2010
I read this today on HousingWire. Its publisher, Paul Jackson, poses the following “provocative” question about all of those modification plans and programs we keep hearing about (and I often write about):
[W]hat if ‘extend and pretend’ within our nation’s troubled mortgage markets is actually providing a lift to consumer spending?
Or, perhaps it can be said like this: what if consumer confidence statistics are actually being artificially buoyed by the extra cash homeowners (at homeowners ‘on paper’) who are not making mortgage payments, but instead, allocating those resources to things they would not otherwise purchase? (more…)
That Servicemembers Notice & Your Loan Mod Request
Wednesday, March 17th, 2010
I received a call today from a client what we in the biz refer to as a “Soldiers and Sailor’s Notice.” I had met this caller a few weeks ago – and at that time, was told that the home mortgage and loan were “in review” by the lender and servicer. The caller was confident that a modification would be offered – and it would be one they could live with. I have “I’ll believe it when I see it” view. But today, the caller had this notice – which was found tied to the front door knob by a rubber bank. The caller’s question for me: “what does this mean?” (more…)
Redux Predators in our Midst: A Warning for Homeowners Facing Foreclosure
Thursday, March 4th, 2010
This first appeared on May 27, 2008. Unfortunately even today, there are people looking to scam those who can least afford it. If you’re facing foreclosure or know someone who is, this is an important read.
Redux: Things Will Get Worse Before They Get Better
Monday, March 1st, 2010
I first posted this on February 18, 2008 – more than two years ago… before the election. As I was reading through it, it occurred to me… I wasn’t far off base. Some of the links no longer lead to the page intended, but it’s worth a second look – and perhaps a second thought.
Talking to the Kids: Dealing with Failure
Wednesday, February 24th, 2010
As you can see, in the title I use the “F” word. Now, I want to point out that by using the “F” word, I’m not saying that you – as a parent deep in debt – are a failure. Yet talking to your kids might raise some concerns that you have about how they might perceive you – and the choices you have made. And that’s the tough road I’m going to talk about today. (more…)
Credit Fueled Drunken Debauchery
Come on, you had to know I was going to write about this: Her no longer royal highness Sarah Ferguson is blaming booze (and her debt) for her lapse in judgment in seeking money in exchange for access to her ex-husband, Prince Andrew. I’m still not entirely clear what “access” really meant… that alone could be another blog, on another website.
Oddly, this reminded me of among the many colorful jobs I had when I was going through school was that of a bartender. In the movie “Cocktail”, Tom Cruise made bartending look sort of cool. And to an extent it is… but for the smells of dirty bar rags that still sometimes haunt me in my dreams. It also helps to have the physical stamina of a 20-something and be able to be cheerful and attentive past midnight. Or 4am.
Then there’s another aspect of being a bartender that isn’t so fun: having to shut someone off. That’s when a bartender has to make the call that a patron has had a wee-too-much and can be served no more alcohol. Any bartender will tell you – this aspect of the job stinks. But I see this emerging attitude about lenders and their reckless credit underwriting standards that resembles the same often righteous indignation I see when I would tell people they were on their last drink of the night.
(more…)
Tags: Commentary - Legal, Credit and Debt, HAFA, HAMP
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