Michigan Bankruptcy Blog

Stop Foreclosure with Chapter 13 Bankruptcy if Not on the Mortgage?

Stop Foreclosure with Chapter 13 Bankruptcy if Not on the Mortgage?

Even if Not on the Mortgage Note, You Can Still Cure a Claim Against Your Property in Chapter 13 Bankruptcy [caption id="attachment_2706" align="aligncenter" width="300"] Image by respires, courtesy of Wikimedia Commons[/caption] First: Some Important Information about Liability in Mortgage Purchases ... The situation in which a homeowner might find themselves faced with foreclosure without actually being a signatory on the mortgage note being accelerated is not a common situation necessarily, but it does happen. Why would it? There are many ...

Posted on May 17th, 2014 by John Hilla - Michigan Bankruptcy Attorney in Michigan Bankruptcy

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Chapter 13 Bankruptcy and Home Equity Loans: Stopping Payment Reset

Chapter 13 Bankruptcy and Home Equity Loans: Interest-Only Repayment Periods End in Large Number in 2014 [caption id="attachment_2673" align="aligncenter" width="199"] Image by Nevit Dilmen courtesy of Wikimedia Commons[/caption] Chapter 13 Bankruptcy Can Strip Off or Modify a Maturing HELOC or Balloon Payment While a Chapter 7 bankruptcy is a highly effective means of surrendering or walking away from real estate that you can no longer afford, a Chapter 13 bankruptcy will help you save real estate from foreclosure ...

Posted on April 25th, 2014 by John Hilla - Michigan Bankruptcy Attorney in Michigan Bankruptcy

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Can I Strip a Lien in Chapter 13 Bankruptcy without my Spouse?

When You're Both on the Mortgage & Deed But Only One of You Wants to File the Chapter 13 ... What Is a Lien Strip? A lien strip is a process that may be undertaken in a Chapter 13 bankruptcy that allows you to "strip" or remove a second mortgage, home equity line of credit (HELOC) lien, or other sort of lien from your primary residence—if your home is worth less in fair-market value than you owe ...

Posted on March 4th, 2014 by John Hilla - Michigan Bankruptcy Attorney in Michigan Bankruptcy

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Foreclosure & Short Sale Mortgage Tax Break Expires

Bankruptcy Now the Only Sure Way to Avoid Taxable Penalties for Walking Away from Real Estate Short Sales Now a Worse Deal than Ever As reported by the Los Angeles Times here, the tax break extended to homeowners who have experienced a foreclosure or conducted a short sale of their primary residence under the Mortgage Forgiveness Debt Relief Act expired on December 31, 2o13, thanks to the inaction of the US Congress. As a result, a surrender of foreclosing, ...

Posted on January 20th, 2014 by John Hilla - Michigan Bankruptcy Attorney in Michigan Bankruptcy

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Paying Balloon Payments through Chapter 13 Bankruptcy

Chapter 13 Bankruptcy Can Modify a Required Balloon Payment Force a Lender Accelerating your Balloon Payment to Accept Installments Over Time A balloon payment is a large lump sum payment required upon the termination of monthly installment payments, which may have been "interest-only" payments, in some sorts of longer term loans, such as home equity loans or other "second" mortgages. A balloon at the end of a term of payments often allows the preliminary monthly installment payments to ...

Posted on January 14th, 2014 by John Hilla - Michigan Bankruptcy Attorney in Michigan Bankruptcy

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Qualified Written Request Letter Rule Changes for January 2014

Tighter Deadlines for Response to Qualified Written Request Letters, Harder Penalties for Failure to Respond The Qualified Written Request (QWR) The Qualified Written Request is a letter sent to a mortgage servicer to which they are required to respond with certain information, such as the actual owner of the mortgage and other specific items requested in the letter. More regarding the specifics of qualified written request letters can be found here. Qualified Written Request Letters: What's Changing? On January ...

Posted on January 8th, 2014 by John Hilla - Michigan Bankruptcy Attorney in Michigan Bankruptcy

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Can I File Chapter 7 Bankruptcy after Refinancing my Mortgage?

Chapter 7 Bankruptcy after Refinancing: Timing Is Everything Modification or Refinance? You own your home, you like your home, you want to keep your home—but you just have too much credit card debt. Or medical debt. Or have suffered some other financial blow unrelated to your home that has you seeking the counsel of a bankruptcy lawyer. You're not interested in "bankrupting" your home ... It is not your main problem. In fact, you just had your mortgage payment ...

Posted on October 31st, 2013 by John Hilla - Michigan Bankruptcy Attorney in Michigan Bankruptcy

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Who Owns My Mortgage? The Qualified Written Request (QWR)

Fannie Mae, Freddie Mac, or Some Private Mortgage-Backed Security Trust? Almost Never the Bank To Which You Send Your Monthly Payment One of the biggest difficulties confronting homeowners facing potential foreclosure is the difficulty of identifying who or what exactly is the current owner of the mortgage and, thus, the entity with the actual right to foreclose. Nearly always, the bank or other entity to which you mail your monthly payment check is not actually the holder or owner ...

Posted on October 4th, 2013 by John Hilla - Michigan Bankruptcy Attorney in Michigan Bankruptcy

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How Do I Cramdown a Rental Property in Chapter 13 Bankruptcy?

Pay Its Fair-Market Value in 60 or Fewer Months through the Chapter 13 Payment Plan A Chapter 13 bankruptcy is a highly useful form of bankruptcy if you own real estate that may be underwater due to the burden of a second mortgage or home equity line of credit or if you own real estate in addition to the home you actually live in. Rental properties which bring in income each month but for which you owe ...

Posted on September 24th, 2013 by John Hilla - Michigan Bankruptcy Attorney in Michigan Bankruptcy

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What Happens to my Mortgage Modification if I File Bankruptcy?

A Chapter 7 or Chapter 13 Bankruptcy Filing May Void Your Mortgage Modification Application [caption id="attachment_2248" align="aligncenter" width="300"] Image by Steve Daniels courtesy of Wikimedia Commons[/caption] If you have already applied for a mortgage modification when deciding whether to file a Chapter 7 or Chapter 13 bankruptcy, there is a reasonable possibility that the mortgage servicer to whom you have submitted your modification may void or withdraw the modification. The Mortgage Modification Process A legitimate mortgage modification application will ...

Posted on August 29th, 2013 by John Hilla - Michigan Bankruptcy Attorney in Michigan Bankruptcy

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