June 24, 2019

Challenge Your Foreclosure?

For struggling homeowners trying to avoid foreclosure, the processing errors admitted to by GMAC and Chase could mean an opportunity to challenge the banks. If you can stomach a bit of crude humor, Jon Stewart sums up the situation rather well.

Mon – Thurs 11p / 10c
Foreclosure Crisis

On a more serious note

After 40 years of helping families and businesses cope with melt downs of one sort or another, the depth and breadth of the real estate crisis is unlike anything I’ve seen. It’s no wonder so many of our clients have whiplash: they’re being foreclosed upon, then they’re not; they think they’ve found a buyer for their property and then they haven’t.

According to the Washington Post the troubles  banks are having with foreclosures “also threatens to leave (homeowners) in prolonged limbo, stuck in homes they still cannot afford and waiting for the foreclosure process to begin anew.”

And just last week Reuters reported that Old Republic won’t provide title insurance to homes purchased after they’ve been foreclosed upon by GMAC and Chase. When house foreclosures are done with faulty documentation, new owners could be vulnerable to ownership claims. Title insurers agreed to protect buyers against defects or errors in the title.

How this pertains to bankruptcy

The economy is not turning around any time soon. RealtyTrac Inc. reported this month that homes in the foreclosure process sold at an average 26 percent discount.  In Charlotte, default notices, scheduled auctions and bank repossessions are up 50% over 2009.

If you do not have strong financial resources to weather this economic storm, consult with a qualified bankruptcy attorney for proactive bankruptcy counseling.

Hopefully YOU won’t have to file for bankruptcy protection, but a bankruptcy counseling session will walk you through scenarios and help you plan for contingencies, including creditor negotiation.

In this Great Recession, the wisdom and experience of a qualified bankruptcy attorney can help you develop strategies to deal with whatever comes up in the future.