Bankruptcy, Meeting of Creditors

To all those debtors out there, would you like to know what to say and what not to say at your Section 341 meeting of creditors???? If you are like most of my clients, you are somewhat nervous about what will happen at your meeting of creditors and would like to know exactly what you will be asked and what you should be answering. One word of advise, TELL THE TRUTH ABOUT EVERYTHING. You have no idea what lying can do, no idea. My mother always told me that lies always result in more lies and we all know that mothers are almost always right. I was witnessing a debtor trying to get out of lying to the trustee today and it was not a pretty picture. So, tell the truth and keep it short.

THE NEWS ON FORECLOSURE

A client the other day told me that she had heard on the news that banks will no longer pursue foreclosures. She also wanted to know what did that mean in her case, would she continue to live in her house without paying the mortgage and would the bank take her house? To be honest, I cannot, myself, comprehend the completely foreclosure crises to its fullest, but I will try to explain the most recent news on the foreclosure to the best of my legal ability. In some states, including Illinois, it has come to the attention of the judges, attorneys, and banks, that during the foreclosure process, which begins with the homeowners failing to pay their monthly mortgage payments, some banks failed to comply with all of the required steps of the foreclosure laws, while others simply forged documents. Among these banks are Chase, Bank of America, and several, unnamed others. Due to this latest development, the Banks decided to put some of their foreclosure cases on hold. Now, this is the punch line, we have no idea which cases. So, I guess for most homeowners in trouble, this is simply a waiting game of seeing whether or not their case will be the one to be put on hold.

Lost your job, you might get a break on your mortgage payments

Bank of America recently announced that they have come up with a new program, to help unemployed home owners. The program has not been approved as of yet, but might be approved some time soon. If you are unemployed and are collecting unemployment, Bank of American will allow you, with their permission, of course, to stop paying your mortgage for 9 months. What will happen after 9 months is obviously up to you, but the 9 months can help home owners find a new job, put some money aside, or simply sell their existing home.

Behind on your mortgage?

You are not alone. 7.2 million loans are reported delinquent as of last year, 2009. If you are one of many who would like to save their home, consider working with banks for a loan modification solution. If that does not work, Chapter 13 bankruptcy can help you save your home and reinstate your loan.

Effectiveness of Loan Modification

White House requested the Dept. of Treasury to submit a report regarding the aspect of Loan Modification that are unclear to most, including the White House. Although, there are numerous requirements that a homeowner is suppose to submit to the bank with their loan modification application, the idea of how a home owner is suppose to come up with these requirements is unknown, even to the banks. What is a net present value of your home? What does that suppose to mean??????????????????? Why is your application denied? Even the bank does not know, that is why they do not tell you when denying your application, as to the reasoning behind their denial. In any event, it would be interesting to see what the Treasury reports, they have until February 18, 2010 to come up with a response.