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Archive for December, 2007

Mortgage Triage »

I’m beginning to feel like a financial triage nurse rather than a bankruptcy law specialist. I sort through a client’s mortgages and decide which properties live and which properties die.
The best advice I had for a couple I saw yesterday was stop making payments on your miserable loan and live there payment free ’til [...]

Loan servicers hope non-binding deal with Bush will kill bankruptcy reform »

The Bush administration is on the verge of inking a non-binding “deal” with major lenders to freeze interest rates for five years, but while anything is better than nothing, this agreement will not be enough to put the economy back on track. According to analyst Guy Cecala of the trade publication Inside Mortgage Finance, less [...]

Making a deal with the Devil: Bush and the banks could freeze adjustable mortgage rates »

I know. Your first question is, “Which one’s the Devil?” Good question, considering Bush’s second term is being sponsored by the banking industry.
In any event, according to AP Reporter Martin Crutsinger, an agreement between the Bush administration and some of the country’s biggest banks to freeze adjustable interest rates is close. Using a something-is-better-than-nothing rationale, [...]

Subprime America: Good Credit Was No Shield »

In the peak year of 2005, more than half of subprime mortgages were made to borrowers with prime credit scores. And last year “prime-subprime” borrowing hit 61% of all subprime loans originated, according to a study reported by the Wall Street Journal.
The Journal’s report reflects what many practitioners already know: A lot of [...]

Loan Modification, Fact or Fantasy »

A recent article, Mortgage Modifications not Happening, published in a blog sponsored by Public Citizen, a nonprofit consumer advocacy organization, points out just what the title implies. Lenders are making promises that they will modify loans to prevent foreclosure but they are only making promises, not loan modifications. Based on analysis of [...]

Mortgages and Divorce–A Match *Not* Made In Heaven »

A recent article in The Washington Post highlighted a common problem when a couple divorces: what happens to the mortgage?
In many divorce cases, one spouse keeps living in the family home. (We’ll call this person the “Home Spouse”). The Home Spouse wants to be listed as the sole owner of the property, while the other [...]