Posted by 101livescan on 10/3/10 1:00am
Msg #355200

Foreclosure news on CNBC News


Big Bank Foreclosure Delays Signal Big Trouble
"I would suspect that most responsible lenders are going to be looking at their processes and making sure that they've done everything properly, so they're not subject to the same accusations and lawsuits," says Laurie Maggiano, Policy Director in the Treasury Department's Homeownership Preservation Office.

http://www.cnbc.com/id/39441529/

Reply by desktopfull on 10/3/10 1:34am
Msg #355201

What do you expect when the law firms they are using are forging documents? Plus here in Florida there are several investigations into notaries in the law firms notarizing backdated and out of state documents.

Reply by JanetK_CA on 10/3/10 2:10am
Msg #355202

Here's another related article with a video of a news report:

http://realestate.msn.com/blogs/listedblogpost.aspx?post=1811759>1=35006.

Reply by 101livescan on 10/3/10 9:06am
Msg #355208

Every lender handles their foreclosures differently. While banks seem to be making a lot of money these days with lower interest rate loans, they have huge inventories of REO properties that are not selling because people are scared to death of the state of our US economy, unemployment, etc. I still see investors at the trustee sales purchasing lower end properties, not the million dollar estates though. These go back to the lender and get put on the market for sale. Loss mitigation departments of these banks are completely overwhelmed with the process. I have properties on my radar screen that have been in the foreclosure process for years and are still sitting there, getting postponed every two weeks. It's very interesting to watch which properties aren't getting foreclosed on...usually properties that will not sell on the open REO market. I have three that are vacant land, two were burned out in the Tea Fire. There are a lot of properties in the short sale stage. The banks have a real big mess on their hands. What if everyone stayed in their homes and drug the banks through the courts trying to overturn the foreclosure process. Are there enough staff at the courts to process all of them. I don't think so. Bankruptcy attorneys are making a ton of money right now. People are lined up outside the BK court every day in my town, as people try to stall the foreclosure process by filing.

Reply by kathy/ca on 10/3/10 11:53am
Msg #355218

Cheryl, are you saying that by filing BK you wont/cant be

forclosed on? I dont know much about how the BK process works but I find it very interesting especially in these economic times.

Reply by Linda_H/FL on 10/3/10 1:08pm
Msg #355224

If a foreclosure has already been started

and a homeowner files bankruptcy, the BK filing puts a "stay" on any legal proceedings until the bankruptcy is discharged. Once the bankruptcy is discharged, if the lender hasn't been included in the bankruptcy the bank can re-commence the foreclosure but it buys the homeowner time - sometimes a LOT of time.

So anyone seriously arrears in their mortgage and facing foreclosure sale or execution will, quite frequently, file a petition in bankruptcy at 5:00 on the day before the execution or sale. Puts on the brakes....immediately.

Reply by Shoshana/AZ on 10/3/10 2:26pm
Msg #355225

Consult a BK attorney.

I talked to one last week. In AZ, once you file for BK, you must go through with it. If you have more than a certain amount of money in the bank, you cannot do a BK. There are all kinds of info you should know. Please don 't depend on heresay from this board.

Reply by jba/fl on 10/3/10 8:22pm
Msg #355255

Re: If a foreclosure has already been started

"file a petition in bankruptcy at 5:00 on the day before the execution"

Like it matters.....

(Don't cha just love out of context quotes?) LOL

Reply by C. Rivera Chicago Notary Services on 10/3/10 9:04pm
Msg #355263

not necessarily folks...see below...

from http://www.afscanhelp.com/bk.cfm

Will bankruptcy stop a foreclosure?

Yes and No… A home is an asset usually secured by a deed of trust. The mortgage company is entitled apply to the court for relief from the automatic stay, the order preventing creditor action by virtue of the bankruptcy. Depending upon several factors, you may be able to prolong a foreclosure until you have received your discharge from bankruptcy. Usually, to keep a home that is in foreclosure you will have to make a deal with the Mortgage Company. This is the key, you still must work something out with the Mortgage Company to repay the past due amount. This is why we say filing for Bankruptcy is like putting a band aid on a bullet wound… it may help you at first but major surgery is still required.

The Bottom line is that Bankruptcy may buy you a small amount of time but negotiations will still need to be made with the Mortgage Company to enable you to keep your home. Most people who file Bankruptcy to save heir home from Foreclosure wish they had not because in most cases they are in a worse position that when they started. Filing Bankruptcy removes your leverage and places your fate in someone else’s hands. Your best option is for you to stay in control, and allow AFS work something out for your prior to filing.

Pros for filing Bankruptcy to Stop Foreclosure

* The Foreclosure proceedings will be temporarily suspended.


Cons for filing Bankruptcy to Stop Foreclosure

* There will be a bankruptcy on your record for 10 years.
* The Mortgage Company can work around the Bankruptcy and still Foreclose.
* You lose any leverage and control you once had.
* A deal must still be worked out with the Mortgage Company to repay the past due amount.
* If you are 1 day late on any trustee payments your case "may" be dismissed, the stay will be lifted and you will be back in Foreclosure.
* AFS can negotiate on your behalf with the Mortgage Company to keep your Home from Foreclosure and get your loan back in good standing.

Reply by 101livescan on 10/3/10 6:59pm
Msg #355240

Re: Cheryl, are you saying that by filing BK you wont/cant be

You gotta have a good story, yes, and by all means seek BK advice from a reputable attorney, someone who knows their stuff, get a referral from someone whose BK process was smooth sailing. Not everyone can file BK to delay the foreclosure process...

Reply by C. Rivera Chicago Notary Services on 10/3/10 8:57pm
Msg #355261

Kathy/CA, it depends on whether your state allows one to use

state or federal exemptions....one's home is considered exempt in some states...not necessarily for 2nd or investment properties....

not a lawyer, not legal advice, bla bla, but I am also a bankruptcy petition preparer in Illinois....

Reply by jba/fl on 10/4/10 6:36am
Msg #355276

You are so correct Cari - every state has different laws

In 1999 the following was true:
In FL you can keep your house, but not your car.
In TX you can keep your car, but not your house.
In some states you can keep your work tools, in others, no.
Everything has value - garage sales prices are in effect....quick sale prices only.
I don't know enough any more to continue, but I know enough to tell you that I don't know.

Even though filed in Federal court, it is a state thing.

Google = you can find the state's laws you are looking for.

Reply by 101livescan on 10/3/10 9:12am
Msg #355209

On Yahoo this morning, if you didn't see it.

http://news.yahoo.com/s/afp/economyhousingbankingusforeclosure

Reply by C. Rivera Chicago Notary Services on 10/3/10 8:54pm
Msg #355260

domino effect....

"US financial firms face lawsuits and potential fines after major mortgage lenders revealed that they mishandled thousands of home foreclosures.

Mortgage lenders, including the Bank of America, JPMorgan Chase, and GMAC, say they have suspended thousands of foreclosures because of an apparent mishandling of documents.

Borrowers in six states claim that lenders have made errors in foreclosure documentations. Attorney generals are investigating the cases.

Most of the foreclosures are expected to remain in place once the lending institutions re-examine the mounting number of cases - a process which could take years.

The lenders say the suspension will further damage the already fragile US financial market and housing industry.

Foreclosures have increased since the US economic downturn in 2007, leaving many Americans with massive debts.

The number of mortgage defaults has jumped from one percent a year before 2008 to 10 percent today.

According to AFP, figures show that in 2010 more than three million foreclosures are expected to take place in the United States."

RBK/TG/HRF