When the topic of the underwater house comes up in New York bankruptcy, a few options are regularly (and rightly) listed: short-sales, offering the deed in lieu of foreclosure, staying and paying, foreclosure (the worst option), and bankruptcy. One that doesn’t come up often is moving out and renting the residence. It’s an intriguing idea …
The Risks and Benefits of Renting Out the Underwater Home Read More »
It’s one of the most common—and important—questions New York bankruptcy debtors ask: How long will a chapter 7 bankruptcy take? The answer is there are really two timelines to be aware of: the one between the bankruptcy case being filed and the discharge, and the one from filing until closure. In most cases, the period …
Factors Affecting a Chapter 7 New York Bankruptcy Timeline Read More »
It is possible for an insurance policy to force someone into New York foreclosure. These would be “forced-place” insurance policies. As the name suggests, the policy is forced into place onto the homeowner by another party. Before going into how this can lead to or aggravate a foreclosure, it’s necessary to explain why a party …
You may recall the “robo-signing” scandal that erupted in 2010. Banks’ employees and contractors were improperly signing false mortgage or foreclosure documents and then executing them on homeowners. Apparently, some of these documents found their way into bankruptcy courts, meaning the lenders committed perjury as well. The U.S. Trustee Program, which among other responsibilities helps …
U.S. Trustee Program Announces $50 Million Bankruptcy Settlement With JPMorgan Chase Read More »
In discussing reverse mortgages and New York bankruptcy, I demurred on whether they “work as intended.” As a brief reintroduction, a reverse mortgage gives the homeowner equity payouts over time rather than the homeowner “purchasing” equity with monthly payments. The Consumer Financial Protection Bureau (CFPB) recently issued a report that addressed the effectiveness of reverse …
CFPB Reports on Homeowners’ Reverse Mortgage Complaints Read More »
A reverse mortgage is when a homeowner who owns a property free of any other mortgages and is at least 62 years old borrows money against the home’s equity. It’s “reverse” in the sense that the home’s equity decreases as the money is paid out to the homeowner instead of rising with each mortgage payment. …
You may have heard stories of underwater homeowners walking away from their homes and allowing the banks to foreclose on them without a contest. This might not sound so awful if you think you have no hope of catching up on mortgage payments, but it’s a very bad idea for multiple reasons. (1) Until the …
4 Reasons ‘Walking Away’ From an Underwater Home Is a Bad Idea Read More »
So there’s research showing that filing chapter 13 New York bankruptcy may reduce mortality rates and delay or prevent foreclosure. How exactly does it accomplish this, and how can it best be used to debtors’ advantages? First of all, like other chapters, upon filing chapter 13 bankruptcy, a debtor is immediately protected by the automatic …
Supposedly, during the Punic Wars, Roman soldiers were away from homes for so long that their family farms went bankrupt and were bought up by the wealthy. Veterans crowding into Rome led to unrest as well as the failed land-reform proposals by Tiberius and Gaius Gracchus. Fortunately, there is a federal law in place to …
How Can the Servicemembers Civil Relief Act Help Debtors? Read More »
Last week I discussed an article in The New York Times‘ Dealbook blog that described banks that were failing to report bankruptcy debtors’ debts as discharged. A minor criticism that wasn’t worth raising at the time was the article’s melodramatic characterization of bankruptcy as taking a “heavy toll” on debtors. Actually, New York bankruptcy isn’t …
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