Look at this article in the San Diego Union Tribune this morning. The link is http://www.signonsandiego.com/news/2010/nov/08/homeowners-sought-help-but-didnt-get-it/?Watchdog Sure looks like another example of a loan modification scam. Ok, so I don't have all of the intimate facts and I may be wrong. But read the article and come to your own conclusion. I doubt I am wrong. These con-artists really disgust me. Clearly they are preying on desperate people. I still don't get how they can sleep at night. Personally, If I were them, i'd be scared. Desperate people can do desperate things. When you start messing with someone's lives, people can snap and do crazy things.
So anyway, how is this related to bankruptcy. Well, a Chapter 13 can help a homeowner turn their 2nd mortgage into an unsecured debt. Once it is an unsecured debt, it can be treated the same as other unsecured debt (like credit cards). A Chapter 13 plan may allow the debtor to compromise the unsecured debt and pay pennies on the dollar. At the end of the plan (which lasts 3 to 5 years) the 2nd mortgage is gone with all other unsecured debt. And hopefully the homeowner has an equity position in the property.
Want to learn more? Call me (Richard Chang) at 619-233-6300 or see my website. www.thebklawyers.com
Tuesday, November 9, 2010
Wednesday, October 13, 2010
Mortgage Bankers Assoc. Default on Loan... WHAT?!?
Well, it's no wonder that our housing market is in the condition that it is in! At Chang & Diamond, APC many clients come to us to help free them of mortgage debt. We pass no judgement and help as best as we can. So it angers me when I hear that the Mortgage Bankers Association which is the mortgage "industry's voice on legislative and regulatory issues" has recently defaulted on their $79 million dollar building that they purchased a few years ago. When they fell on some hard times over there at the MBA, rumor has it they decided renting would be cheaper. So they short sold their new (and very expensive) building in favor of renting. They moved about 5 blocks away from where they defaulted. The president of the MBA, John Courson, has been quoted saying that defaulting on your loan is a moral issue. In addition to that not being true, it is also hypocritical. He also said that before you default on a loan you should consider what message it sends to "family and their kids and their friends by defaulting".
We see hundreds of clients every year that have no choice but to default on their homes. Our clients can rest easier now knowing that even those that preach against defaulting on your loan have done it once themselves.
If you find that you are in a position that you need to default, bankruptcy can protect you from any repercussions. Call us today! 619-233-6300
We see hundreds of clients every year that have no choice but to default on their homes. Our clients can rest easier now knowing that even those that preach against defaulting on your loan have done it once themselves.
If you find that you are in a position that you need to default, bankruptcy can protect you from any repercussions. Call us today! 619-233-6300
Friday, October 8, 2010
Bank of America Halts Foreclosures
Big news for Chang & Diamond's Bankruptcy clients!
According to almost all news websites (that care to report about our nations housing crisis) Bank of America along with several other large lenders have halted their foreclosure processes for the time being.
The reason these large lender came to a screeching halt is to prove that there have been no illegal foreclosures. In 23 states a Judge is required to approve a foreclosure before the home is taken back or sold at auction. At a legal proceeding in February a Bank of America official stated that she signed up to 8,000 foreclosure documents a month without reading them. Making it unclear if a Judge had signed off. There are also rumors of Trustee Sale Companies forging debtors signatures and notarizing documents in house to speed up the foreclosure process.
Bank of America, and the others, contend that nothing has been amiss, but they want to take a month or so to prove it. Lenders acknowledge that they are constantly under fire since our housing marking fell through the floors in the last few years. In response to Consumer/Debtors/Voters concerns that some may have been evicted unlawfully, Spokesperson for Bank of America, Dan Frahm, said "we feel the need to address that and demonstrate that our process is accurate". Bank of America also stated that although they are among the first to go back and double check their work, this practice may soon be required for all lenders.
This is good news for a couple reasons. First, this will give some of our clients additional time to work out their finances. If we were filing a Chapter 13 to keep a person out of foreclosure, we could now look at Chapter 7 as an option. Also, this will keep our fragile Southern California housing market from becoming even more saturated with bank owned homes that nobody wants. The UT reported that "During the first half of this year, there were 5,458 notices of default in San Diego County and 3,315 foreclosures, according to MDA DataQuick, a real estate analysis firm based in La Jolla." Perhaps this will help get those numbers down also. The last silver lining that I see is that these big lenders seem to be taking more responsibility for their actions. That seems like a step in the right direction.
Call us today if this news may effect your bankruptcy. 619-233-6300
According to almost all news websites (that care to report about our nations housing crisis) Bank of America along with several other large lenders have halted their foreclosure processes for the time being.
The reason these large lender came to a screeching halt is to prove that there have been no illegal foreclosures. In 23 states a Judge is required to approve a foreclosure before the home is taken back or sold at auction. At a legal proceeding in February a Bank of America official stated that she signed up to 8,000 foreclosure documents a month without reading them. Making it unclear if a Judge had signed off. There are also rumors of Trustee Sale Companies forging debtors signatures and notarizing documents in house to speed up the foreclosure process.
Bank of America, and the others, contend that nothing has been amiss, but they want to take a month or so to prove it. Lenders acknowledge that they are constantly under fire since our housing marking fell through the floors in the last few years. In response to Consumer/Debtors/Voters concerns that some may have been evicted unlawfully, Spokesperson for Bank of America, Dan Frahm, said "we feel the need to address that and demonstrate that our process is accurate". Bank of America also stated that although they are among the first to go back and double check their work, this practice may soon be required for all lenders.
This is good news for a couple reasons. First, this will give some of our clients additional time to work out their finances. If we were filing a Chapter 13 to keep a person out of foreclosure, we could now look at Chapter 7 as an option. Also, this will keep our fragile Southern California housing market from becoming even more saturated with bank owned homes that nobody wants. The UT reported that "During the first half of this year, there were 5,458 notices of default in San Diego County and 3,315 foreclosures, according to MDA DataQuick, a real estate analysis firm based in La Jolla." Perhaps this will help get those numbers down also. The last silver lining that I see is that these big lenders seem to be taking more responsibility for their actions. That seems like a step in the right direction.
Call us today if this news may effect your bankruptcy. 619-233-6300
Monday, October 4, 2010
Filing for Bankruptcy 101
What does it mean when I hear "file my petition"?
Before almost everything was done electronically, there was a time when a person had to physically go to the court house and fill out confusing and long forms, give them to the clerk who would then stamp and finally file them.
Now, thank goodness, we can do all of that online. The Bankruptcy Courts have a website and once we are logged into it we can upload all required documents to file bankruptcy.
Here's what we do. First we make sure that all required documents have your signature on them. We also need your Attorney to sign off on the forms, but only after they have reviewed them for accuracy. We then create your file electronically either by scanning it in or by creating a pdf from the bankruptcy software we use. We make sure your schedules and signature pages are in the correct order, we make sure everything is accurate and according to the law then we save it to your file on our server.
Once we have that we log into the Bankruptcy Court's website and upload your case. When completed uploading you petition, all schedules, and your signature pages we receive confirmation that your case has been filed and we are giving your case number.
There are a lot of forms that must be filed with the courts to file bankruptcy. They can be lengthy and complicated (even for Attorney's that are not practicing bankruptcy). That is why it is important to contact the Law Offices of Chang & Diamond to help you through the process. We do all the very difficult and complicated work so that you don't have to. We have many years and many many cases under our belt. We stay current with the laws and although we do not have testimonials from all of our clients, please check out our website to view what some very happy clients have said about us.
Call us today and we can get started down the road to filing your bankruptcy! 619-233-6300
Before almost everything was done electronically, there was a time when a person had to physically go to the court house and fill out confusing and long forms, give them to the clerk who would then stamp and finally file them.
Now, thank goodness, we can do all of that online. The Bankruptcy Courts have a website and once we are logged into it we can upload all required documents to file bankruptcy.
Here's what we do. First we make sure that all required documents have your signature on them. We also need your Attorney to sign off on the forms, but only after they have reviewed them for accuracy. We then create your file electronically either by scanning it in or by creating a pdf from the bankruptcy software we use. We make sure your schedules and signature pages are in the correct order, we make sure everything is accurate and according to the law then we save it to your file on our server.
Once we have that we log into the Bankruptcy Court's website and upload your case. When completed uploading you petition, all schedules, and your signature pages we receive confirmation that your case has been filed and we are giving your case number.
There are a lot of forms that must be filed with the courts to file bankruptcy. They can be lengthy and complicated (even for Attorney's that are not practicing bankruptcy). That is why it is important to contact the Law Offices of Chang & Diamond to help you through the process. We do all the very difficult and complicated work so that you don't have to. We have many years and many many cases under our belt. We stay current with the laws and although we do not have testimonials from all of our clients, please check out our website to view what some very happy clients have said about us.
Call us today and we can get started down the road to filing your bankruptcy! 619-233-6300
Wednesday, September 29, 2010
Time
Time is a constant concern when talking about bankruptcy. How long is the process? How long is the consultation? How long is my "hearing"? It seems from the beginning of our relationship people want to know how much time will be invested.
I thought I would dedicate this entry to giving some ballpark estimates of time frames for people.
How long is the free consultation?
The free consultation with one of our Attorneys at Chang & Diamond, APC is about 30 minutes. Please see our "10 Questions" article to get the most out of your free consultation.
How long is the process?
For a Chapter 7 I estimate that the entire time frame (assuming that all goes exactly according to plan) is about 6 months from the day you meet with one of our Attorneys to the day you get a discharge. For a Chapter 13 you will be in bankruptcy for about 3 to 5 years.
How long is my "hearing"?
Your 341a Meeting of Creditors is very very short. However, the waiting can be very very long. I always suggest that people get to the location of the "hearing" about 30 minutes before to find the correct room and get settled in. Depending on if the Trustee is on schedule or not (more often than not it seems that they are behind) you may find yourself with some waiting time on your hands. However boring this may be it does provide you an opportunity to understand the line of questioning. Take this chance to learn what questions will be asked of you on the record. When it is your turn to sit before the Trustee answer any questions he/she asks of you then you are done. The questioning should last only about 5 minutes.
How long until I can get a credit card again?
Anytime you are IN bankruptcy you cannot incur new debt. So during the bankruptcy process you cannot get any new credit. Once your bankruptcy has been completed you are free to start to rebuild your credit again. Only a lender can let you know if you qualify for their credit card, and a secured card may be a good place to start. Making sure you pay the entire balance every month is a wonderful way to re-build credit.
How long does a bankruptcy stay on my credit report?
All bankruptcies stay on your credit report for 10 years. The bankruptcy tends to matter less and less as time goes by, but it is on your report for 10 years. Our FAQ section addresses this further on our site.
How long until I can purchase a house?
This is completely up to the lender. However, if you surrender a home in your bankruptcy or have a foreclosure on your credit report then Fannie Mae just released new guidelines that state you cannot qualify for a home loan for 7 years after a foreclosure has been reported on your credit. A short sale prohibits you from purchasing for 2 years after it has been reported on your credit.
When will I be able to get a new vehicle after bankruptcy?
Yes. Several lenders have programs to assist you in purchasing a vehicle after bankruptcy. After you file chapter 7 bankruptcy you cannot file again for 8 years. If you have a 5 year loan on a vehicle the lender can be certain that you are responsible for making those payments.
I filed bankruptcy in the past, how long until I can file again?
You can only receive one discharge every 8 years. Note that if you file more than 3 bankruptcies in one year you may have to prove that you are not filing in bad faith.
Call us today to schedule some time with us. We look forward to working with you!
I thought I would dedicate this entry to giving some ballpark estimates of time frames for people.
How long is the free consultation?
The free consultation with one of our Attorneys at Chang & Diamond, APC is about 30 minutes. Please see our "10 Questions" article to get the most out of your free consultation.
How long is the process?
For a Chapter 7 I estimate that the entire time frame (assuming that all goes exactly according to plan) is about 6 months from the day you meet with one of our Attorneys to the day you get a discharge. For a Chapter 13 you will be in bankruptcy for about 3 to 5 years.
How long is my "hearing"?
Your 341a Meeting of Creditors is very very short. However, the waiting can be very very long. I always suggest that people get to the location of the "hearing" about 30 minutes before to find the correct room and get settled in. Depending on if the Trustee is on schedule or not (more often than not it seems that they are behind) you may find yourself with some waiting time on your hands. However boring this may be it does provide you an opportunity to understand the line of questioning. Take this chance to learn what questions will be asked of you on the record. When it is your turn to sit before the Trustee answer any questions he/she asks of you then you are done. The questioning should last only about 5 minutes.
How long until I can get a credit card again?
Anytime you are IN bankruptcy you cannot incur new debt. So during the bankruptcy process you cannot get any new credit. Once your bankruptcy has been completed you are free to start to rebuild your credit again. Only a lender can let you know if you qualify for their credit card, and a secured card may be a good place to start. Making sure you pay the entire balance every month is a wonderful way to re-build credit.
How long does a bankruptcy stay on my credit report?
All bankruptcies stay on your credit report for 10 years. The bankruptcy tends to matter less and less as time goes by, but it is on your report for 10 years. Our FAQ section addresses this further on our site.
How long until I can purchase a house?
This is completely up to the lender. However, if you surrender a home in your bankruptcy or have a foreclosure on your credit report then Fannie Mae just released new guidelines that state you cannot qualify for a home loan for 7 years after a foreclosure has been reported on your credit. A short sale prohibits you from purchasing for 2 years after it has been reported on your credit.
When will I be able to get a new vehicle after bankruptcy?
Yes. Several lenders have programs to assist you in purchasing a vehicle after bankruptcy. After you file chapter 7 bankruptcy you cannot file again for 8 years. If you have a 5 year loan on a vehicle the lender can be certain that you are responsible for making those payments.
I filed bankruptcy in the past, how long until I can file again?
You can only receive one discharge every 8 years. Note that if you file more than 3 bankruptcies in one year you may have to prove that you are not filing in bad faith.
Call us today to schedule some time with us. We look forward to working with you!
Thursday, August 26, 2010
Another Law Office Goes Under
It often happens, especially in today's economy, that a business fails. The tragic death of a company is mourned every day by someone. The only thing worse than losing your business is having your bankruptcy law firm close it's doors. Many owner/operators of law offices are forced to shut down every day in today's economy. We have recently seen the end of some bigger law offices here in San Diego. Where does that leave you, the client?
Lately, we have received some calls from people who's Attorney is no longer working and their cases have fallen through the cracks. We are here to pick up the pieces. Our three attorneys are always available to answer your questions. We may be a smaller office, but out business is built on a strong foundation. The Law Offices of Chang & Diamond has been in business for over a decade and we are not going anywhere. We will not let any case be ignored.
Call us today if you need help --we can get your case back on track.
www.thebklawyers.com or call at 619-233-6300 We're here to help, give us a call.
Lately, we have received some calls from people who's Attorney is no longer working and their cases have fallen through the cracks. We are here to pick up the pieces. Our three attorneys are always available to answer your questions. We may be a smaller office, but out business is built on a strong foundation. The Law Offices of Chang & Diamond has been in business for over a decade and we are not going anywhere. We will not let any case be ignored.
Call us today if you need help --we can get your case back on track.
www.thebklawyers.com or call at 619-233-6300 We're here to help, give us a call.
Thursday, August 19, 2010
The Potential Downside to Loan Modifications
Here is the tragic story of clients #8938. This lovely couple had filed Chapter 13 bankruptcy since January 2009. They had successfully paid every month for about 16 months while they were working on a loan modification for their first mortgage.
"Finally!" they thought as the bank offered them a modification. The final step was to get the Trustee's permission (an Authority to Incur New Debt must be signed off by the Trustee in order to get a loan modification). The Law Offices of Chang & Diamond, APC looked at all of the numbers and noticed that this was not in the best interests of our clients.
By taking this offered Loan Modification Clients #8938 were losing 3 ways.
1. Their Chapter 13 plan was curing (paying off) all of the money that they were behind before the bankruptcy. By adding that amount to the end of the loan, as proposed, they would spend the next 30 years paying interest on that amount. Not good!
2. When their monthly mortgage payment would be lower as proposed in the Loan Modification the Trustee would see that they had more disposable income every month. Our clients thought that they could keep this money. That is not the case. All disposable income is dedicated to your creditors while in a Chapter 13 bankruptcy. They were saving nearly $1,000 every month. This money now went to the creditors that were not going to get anything before that money was available. Their monthly plan payment (the payment that is paid to the Trustee every month while in a Chapter 13 bankruptcy) went up --not good!
3. Lastly, when we took the mortgage arrears (the past due) out of the Plan Payment they now had EVEN MORE money to pay to creditors that were previously not receiving any money. Not good!
The Attorney's at Chang & Diamond stressed to our clients not to sign the Loan Modification paperwork, unfortunately our clients signed anyways. Months later though our clients agree that the loan modification was not the best idea. What had started out as a manageable plan payment had become a burden.
We estimated the total loss for clients #8938 at over $75,000 by taking the offered loan modification. Sadly, our clients had worked for over 16 months to get a loan modification and were not willing to let it go. They signed the loan documents and we were forced to amend their plan.
I wish there was a happier ending to this story. Please talk to an Attorney about the possible negative effects of filing bankruptcy.
Please call Chang & Diamond, APC for information on Chapter 13 bankruptcy and how that can help you save your home --even without a loan modification.
"Finally!" they thought as the bank offered them a modification. The final step was to get the Trustee's permission (an Authority to Incur New Debt must be signed off by the Trustee in order to get a loan modification). The Law Offices of Chang & Diamond, APC looked at all of the numbers and noticed that this was not in the best interests of our clients.
By taking this offered Loan Modification Clients #8938 were losing 3 ways.
1. Their Chapter 13 plan was curing (paying off) all of the money that they were behind before the bankruptcy. By adding that amount to the end of the loan, as proposed, they would spend the next 30 years paying interest on that amount. Not good!
2. When their monthly mortgage payment would be lower as proposed in the Loan Modification the Trustee would see that they had more disposable income every month. Our clients thought that they could keep this money. That is not the case. All disposable income is dedicated to your creditors while in a Chapter 13 bankruptcy. They were saving nearly $1,000 every month. This money now went to the creditors that were not going to get anything before that money was available. Their monthly plan payment (the payment that is paid to the Trustee every month while in a Chapter 13 bankruptcy) went up --not good!
3. Lastly, when we took the mortgage arrears (the past due) out of the Plan Payment they now had EVEN MORE money to pay to creditors that were previously not receiving any money. Not good!
The Attorney's at Chang & Diamond stressed to our clients not to sign the Loan Modification paperwork, unfortunately our clients signed anyways. Months later though our clients agree that the loan modification was not the best idea. What had started out as a manageable plan payment had become a burden.
We estimated the total loss for clients #8938 at over $75,000 by taking the offered loan modification. Sadly, our clients had worked for over 16 months to get a loan modification and were not willing to let it go. They signed the loan documents and we were forced to amend their plan.
I wish there was a happier ending to this story. Please talk to an Attorney about the possible negative effects of filing bankruptcy.
Please call Chang & Diamond, APC for information on Chapter 13 bankruptcy and how that can help you save your home --even without a loan modification.
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