A federal judge refused to let a lawsuit against Countrywide Financial Corporation be transferred to federal court today. Two investors in mortgage-backed securities sued Countrywide over plans to make up to $8.4 billion in loan modifications as part of a settlement with 15 state attorneys general. They argued most of the loans at issue [...]

Congress is considering changes to the Bankruptcy Code that would allow the same judicial modification of home mortgages that is currently allowed for vacation homes, business property, and other assets. Letting families keep their homes by reducing principal and interest to market value would let tens of thousands of homeowners resume making their mortgage payments, [...]

CNN has just uploaded a foreclosure map, showing the percentage of mortgages across the United States. Move the mouse over your state to see the pecentage. It also shows your state’s unemployment rate and budget deficit. Check out the map at http://money.cnn.com/news/storysupplement/economy/gapmap/index.htm.

Everyone knows what a mortgage is–it’s the document giving a bank collateral for the loan used to buy your home and letting it foreclose if you don’t pay. But here in Maryland (and a number of other states, like California), we don’t see mortgages very often. Instead, lenders use something called a “Deed of Trust”.
What’s [...]

In a January 9, 2008 press release, the American Bankers Association’s chief lobbyist came out strongly against proposed changes to the Bankruptcy Code that would let judges lower principal and interest rates on residential mortgages–what is called a “strip-off” or “cramdown”.
Floyd E. Stoner said that, “Such proposals would bring additional risk and uncertainty to an [...]

Today’s Wall Street Journal (December 31, 2008) has a front-page story titled, “Mortgage ‘Cram-Downs’ Loom as Foreclosures Mount.” Discussed is the question of whether the new congress will allow “cram-downs” of residential mortgages in Chapter 13 and 11 cases.
A cram-down is where the terms of a mortgage are changed in bankruptcy. The interest rate can [...]

In these days of old-line financial powerhouses filing for bankruptcy and continuing questions about the economic stability of banks and mortgage companies, we are often asked what happens if your mortgage company goes bankrupt?
The answer is actually pretty simple and straightforward.

With foreclosures skyrocketing, many people are looking for ways out of their mortgages. Short sales are often used to avoid foreclosure. They do avoid foreclosure. But do they really benefit you, the homeowner?
In many cases, they benefit others, and can leave you and your credit worse off than filing for bankruptcy.
Here’s the inside scoop on [...]

With foreclosures skyrocketing, many people are looking for ways out of their mortgages. Deeds in lieu of foreclosure are often used to avoid foreclosure. They do avoid foreclosure. But do they really benefit you, the homeowner? In many cases, they can leave you and your credit worse off than filing for bankruptcy.
Here’s the inside scoop [...]

In a recent article on the Maryland Bankruptcy Blog, I talk about the human cost of foreclosures–the emotional trauma that strikes even those who clean out foreclosed homes for the banks. The Human Cost of Foreclosure, also talks about a darker side of this trauma–suicide.
But, as the article notes, there is hope. Not only are [...]