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 »
Usually debtors in chapter 13 New York bankruptcy concern themselves with what happens to their tax refunds, which trustees will keep for the creditors, but there’s another way the tax code intersects with bankruptcy—but this time to the advantage of debtors: deductions. The reason tax deductions can make a difference for debtors in chapter 13 …
Save Money in Chapter 13 by Ferreting Out Tax Deductions From Payments 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 …
One reason people find themselves in New York bankruptcy is that the interest rates on their debts are too high, which raises their monthly payments needlessly.Hopefully this is common sense, but according to the Consumer Financial Protection Bureau (CFPB) many Americans don’t consider interest rates when buying homes. Specifically, they don’t “shop” for mortgages, often …
CFPB Finds That Few Americans ‘Shop’ for Mortgages Read More »
Liens on underwater junior mortgages survive chapter 7 New York bankruptcy, which means homeowners will need to keep paying them to prevent foreclosure. Often, the response is to file a chapter 13 case after the chapter 7 one to strip the lien, but there are reasons to be cautious about taking that course of action. …
Alternatives to Chapter 13 After Discharging an Underwater Mortgage Read More »
For homeowners struggling with high mortgage payments, there are alternatives to filing New York bankruptcy. One of them, refinancing, is underused by homeowners, according to a report that was recently published by National Bureau of Economic Research (NBER). (The NBER is best known for setting the official start and end dates of U.S. recessions.) The …
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