Posted by Sidney Diamond on Wed, Jun 10, 2009 @ 03:03 PM
There has been a great deal of publicity about money being infused into banks and financial institutions by the government. A significant portion of that infusion is supposed to be used to modify existing mortgages that are in default or are on the verge of foreclosure. In addition, there has been a great deal made by various government or semi-government agencies about their assistance in loan modifications and/or accelerating the process.
There has been a great deal of hype regarding loan modifications; to enable people to keep their homes, as well as, getting the banking system stable and profitable so that new loans can be made. After a number of months the banks and other financial institutions have announced a return to profitability.Yet according to the media, based upon various statistical data, foreclosures continue to increase. Perhaps what is most important is what is not being said, discussed, published or announced either by the government or the financial institutions. How many loan modifications have been made and/or are in process? What terms and conditions, if any, are being offered to people who are behind in their mortgage payments? It would seem to me that these financial institutions would be making one press release after another (creating goodwill and improved public relations) about how they are helping people out of difficult if not impossible situations. The silence in this area has become deafening.
I am a small bankruptcy lawyer whose practice is practice is primarily in El Paso, Texas and the surrounding area. My only real knowledge is based on: what is happening to my clients who are trying, or have tried to modify their mortgages; what I have observed in the bankruptcy court with other cases; what the discussions have been over coffee and the water cooler with other local bankruptcy lawyers. Sad to say, based upon all of the foregoing there have been very, very few loan modifications actually being accomplished.
The best advice I can give a person seeking a loan modification, in a general sense, since each person's situation is unique, is to avoid the new companies that have sprung up offering to assist with a loan modification for a fee. Go directly to the lender. Insist on their terms be reduced to writing. Give yourself plenty of time to seek an alternative if the proposed modification does not work, and finally the alternative of seeking relief under Chapter 13.
This is not to be taken as legal advice and is given only as information. Only a consultation with your attorney with facts specific to your circumstances can be relied upon as legal advice.
Posted by Sidney Diamond on Tue, Apr 28, 2009 @ 12:23 PM
Parties in control of Congress change, politicians that control the parties change, but it appears regardless of which party has the upper hand, the one thing that never changes is the people behind the scenes controlling the show. The bankruptcy bill that would give some protection back to the consumer is now stalled in the Senate, on the other hand, provisions that give businesses additional rights in bankruptcy, especially against the average guy trying to hang on to his job and support his family, is quietly moving through Congress and will probably end up being approved. There is also another law that received a great deal of publicity, when it passed Congress, dealing with the abusive tactics used by banks and other companies issuing credit cards. There is now a new proposed law that has been introduced in Congress that would push back the time that the law goes into effect by several years.
After you read this, I hope you are as angry as I am and you contact your representatives.