LIBRARY

Premature Foreclosure: Collection of Debt Scenario: A borrower has a mortgage that is owned by Wells Fargo. Wells Fargo later assigned the loan to Washington Mutual. Before the mortgage was actually transferred to Washington Mutual, Washington Mutual filed a foreclosure suit complaint alleging ownership of the property. The allegations in the complaint were false because […]

Short sales happening more than sales of bank-owned homes Sales of homes facing foreclosure are increasing and exceeding sales of bank-owned homes. This may be a result of the efforts made by lenders to avoid foreclosures on properties where mortgage are due and owing. In fact, sales of pending foreclosure homes increased 22% since the […]

Assuming a mortgage of property acquired by death, divorce, or deed Is happens pretty often that a spouse or child is left a property and the servicer refuses to discuss the loan with the new homeowner because they are not listed on the note. Servicers also often cause problems and object to the homeowner filing […]

Pre-petition foreclosures avoidable as preferential transfers?   Preferential transfers are transfers made to ordinary creditors within 90 days prior to filing or transfers made to insiders within 1 year prior to filing. Insiders can be family members or friends, etc. All of the transfers mentioned above can be determined void by the bankruptcy trustee and […]

Foreclosure mediation requirement to continue The Boyd Law Group sought a temporary restraining order again St. Louis County’s foreclosure mediation program alleging that it causes irreparable harm if the program is allowed to continue. The Judge seemed skeptical of this allegation and therefore declined to issue the temporary restraining order. In fact, the Judge stated, […]

Filing Bankruptcy on Behalf of a Third Party Believe it or not, this happens pretty often. Someone comes in wanting to file bankruptcy on behalf of someone else who unable to come in for any reason. Usually this is the result of someone being deployed or incarcerated. If you have power of attorney, you can […]

Are income tax liabilities consumer debt? In a Chapter 7 or Chapter 13 bankruptcy the means test is not required it more than 50% of the debt is non-consumer debt. Usually this is not the case because a mortgage is considered consumer debt so even if someone has substantial non-consumer debt, their mortgage loan outweighs […]

Can my creditors get mad that I filed bankruptcy and make me pay them back? In short, no. However, your creditors can file an objection to discharge if they feel there is fraud involved. This can occur if you are discharging credit cards that were used close to filing.  You should not incur any debt […]

Bankruptcy Shift to Allow Discharge of Student Loans – Would it make a big difference? The short answer is no. Here’s why… If laws are changed to what they are considering it would only affect private student loans. 85% of student loans are government student loans meaning that they would not be discharged anyways. So […]

In August, 2012 St. Louis County Council approved a law requiring banks to participate in formal mediation before foreclosing on properties on the county. In October, 2012, the Council tweaked the foreclosure rules. The changes made include adding words that the ordinance does not provide grounds for individuals to sue banks over foreclosure sales and […]