by evolveAdmin | Feb 27, 2012 | Bankruptcy
The costs of higher education continue to increase faster than the overall rate of inflation. Parents are struggling to pay tuition costs for their children. Although funding college was never easy, the ballooning increase in tuition and fees forces many parents to take out loans they may not be able to repay. These excessive loans can worsen your financial situation and drive you to consider filing for bankruptcy protection. In the past, families would often fund college expenses through a second mortgage. But as home prices have plunged borrowers no longer have adequate equity for a second mortgage. Many parents are turning to other forms of funding. One popular choice is the Parent Loans for Undergraduate Students (PLUS) loan. This loan is government issued and requires no collateral. But a PLUS loan comes with a 7.9 percent fixed interest rate. Differences from Student Loans Student loans differ from PLUS loans in two important ways: Student loans carry lower interest rates Interest on student loans accrues after graduation, which makes student loans generally favorable However, a larger student loan award generally is only granted after a PLUS loan application is rejected. College financial aid officers have voiced concerns about this system, according to U.S. News. They find that PLUS loans are awarded to financially strapped parents, who may not be able to repay the loans and need student loan debt relief. Bankruptcy and Educational Loans Bankruptcy is designed to aid individuals attempting to manage excessive amounts of debt by offering a fresh start. However, a PLUS loan is not dischargeable in bankruptcy. Forgiveness from a PLUS loan is only granted in extreme...
by evolveAdmin | Jan 30, 2012 | Foreclosure Defense
For one homeowner facing foreclosure in Winter Springs, the Judge tried to speed through the case and would not give him a chance to defend himself. This was because the Judge was scheduled to hear over 300 foreclosure cases in just three days. The Florida court system is struggling to manage a backlog of foreclosure cases. The overload resulted from an end to the funding that paid retired judges to hear the cases. Foreclosures have flooded the court system making foreclosure defense even more complicated. Florida Homeowners Fighting Foreclosure In 2007, the young professional had purchased his home in Winter Springs, but was now faced with foreclosure after losing his job. He had been able to pay his mortgage from savings for months while searching for employment. However, when his savings ran out, he could not make his mortgage payments. Then the bank filed for foreclosure. The system works the same for every resident: a foreclosure is filed with the court and the homeowner receives a summons and complaint. If the homeowner submits an answer to the complaint, then a court date is set and the court will make a decision after from hearing from both parties. However, when one judge hears 300 cases in three days very little time is spent on each case. Tips if Facing Foreclosure Steps can be taken to avoid becoming part of the foreclosure system. If you fall behind in mortgage payments, contact the mortgage company. Speak with the loss mitigation department to determine if restructuring options exist. If an agreement is reached over the phone, a written letter of confirmation should be completed and signed...
by evolveAdmin | Dec 16, 2011 | Foreclosure Defense
In December 2009, the Florida Supreme Court ordered that lenders and borrowers be allowed to file for pre-suit mediation prior to initiating the foreclosure process. This pre-suit mediation program, dubbed Residential Mortgage Foreclosure Mediation, fulfills Florida’s mediation requirement for all foreclosure matters and allows lenders and borrowers to voluntarily attempt to obtain a resolution. The goal of the program is to help homeowners keep their homes and give them a fresh start financially. The program was initially available only in state courts. However, in recent months the Federal Bankruptcy Court enlisted bankruptcy trustee Laurie Weatherford’s help in creating a similar program to help homeowners in the federal bankruptcy courts. Bankruptcy judges had grown concerned with the number of debtors who were entering their court rooms owing more on their mortgages then their properties were worth, and seriously behind on their mortgage payments. The federal program works in conjunction with Chapter 13 bankruptcy proceedings. Chapter 13 proceedings can often allow homeowners to keep their homes by working out a debt repayment plan with their creditors. How does the Mortgage Mediation Program Work? The program requires the borrower and lender to come together to work out a resolution. In the first stage, the lender and borrower select a mediator. Mediators are neutral parties who work with the lender and borrower toward a resolution. Once a mediator is chosen, the lender and borrower, and often the borrower’s attorney, sit down together and try to find a solution that keeps the homeowner in their home. Many times the lender will agree to modify the current mortgage. A mortgage modification often lowers the current interest rate on the...
by evolveAdmin | Dec 5, 2011 | Foreclosure Defense
It’s no secret that Florida and the rest of the country has suffered through and continues to suffer through a tough economy. The Great Recession has claimed the livelihoods and homes of many throughout Orlando as savings and even retirement accounts have been tapped into to make ends meet. At the same time, far too many homeowners faced foreclosure because of improper behavior on the part of their mortgage servicers. Sadly, Orlando foreclosure defense attorneys see it all the time. But, finally, the federal government has taken notice of these wrongful foreclosures and is giving Orlando-area homeownes, as well as homeowners throughout the U.S., a way to fight back. Independent Foreclosure Reviews Available Borrowers whose primary residence was in the foreclosure process at some point between January 1, 2009 and December 31, 2010 are eligible to seek an independent review of their foreclosure proceedings if they believe they were wronged by their mortgage servicer. The reviews are available to customers of 24 major mortgage servicers including Chase, CitiBank, Countrywide, GMAC Mortgage, Bank of America, IndyMac, U.S. Bank, Wachovia, Washington Mutual and Wells Fargo. Borrowers who are found to have suffered financial injury may be entitled to monetary compensation. Qualifying financial injuries include, but are not limited to the following: The balance of the mortgage at the time of foreclosure was more than the borrower actually owed The borrower was complying with the terms of a mortgage modification agreement, but the servicer still proceeded with a foreclosure sale The foreclosure action took place while the borrower was protected by bankruptcy The borrower properly requested assistance or modification and was waiting on a decision when the foreclosure sale happened The...
by evolveAdmin | Nov 28, 2011 | Foreclosure Defense
The length of time between initial filing and completion of a Florida foreclosure continues to grow. On average, the process now takes 749 days, or a little over two years. By comparison, the national average is 366 days. Only two states have longer completion periods than Florida – New York takes the number one spot at 986 days with New Jersey coming in a close second at 974 days. The long processing period is largely due to the fact that Florida foreclosure laws, unlike those in most states, require judicial approval of foreclosures. Combine that with the fact that Florida is home to a disproportionately large share of the country’s foreclosures, and you have a perfect recipe for big backlogs and long waits. The duration of a Florida foreclosure proceeding is not expected to shorten any time soon, as initial filings continue to grow. October’s initial filings were seven percent higher than the same time last year. October also marked the third straight month of increases in foreclosure filings after a temporary slowdown caused after regulators discovered that mortgage companies and loan processers had behaved improperly. Long Wait Gives Florida Homeowners Options The long delay can, in many cases, be a good thing for Florida homeowners facing foreclosure. The two-year window gives homeowners time to consult with a Florida foreclosure attorney and work out a plan to either save their home or minimize the financial impact of the foreclosure. Some homeowners may want to pursue loan modification. The federal government has recently relaxed rules for entry into federal loan modification programs, and lenders are showing increased willingness to work with homeowners...
by evolveAdmin | Nov 18, 2011 | Foreclosure Defense
Orlando had spent almost a year outside the dreaded top-ten metropolitan areas for foreclosures, but October 2011 marked Orlando’s reentry to the top end of the list. From September to October of this year, Orlando-area homeowners saw a 36 percent increase in foreclosure filings. Good News, Bad News According to the Orlando Sentinel, September was the first time since November 2010 Orlando has been on the list. While nationwide foreclosures were up only seven percent, in Orlando they rose 36 percent. The good news is this is still down 41 percent from a year ago. What this may indicate is that lenders have overcome some of the defects in many of the foreclosures they filed in 2010. Those defects eventually led to many mortgage holders placing a moratorium on new foreclosure filings, until they could fix the deficiencies in many of the filings. Lenders Return To Court Now that they have their documents properly back in order, they may be beginning to ramp up their filings. The further bad news is that the ample supply of foreclosed properties will continue to exert downward pressure on housing prices. If you have fallen behind on your mortgage and want to attempt to save your home, you may have options other than losing your home to your lender. A short sale or loan modification may be a possibility or a Chapter 13 bankruptcy filing may offer a solution. An Orlando foreclosure defense and bankruptcy attorney can review your mortgage and your finances and let you know if a Chapter 13 could help you save your house. Source: Orlando Sentinel, “Orlando back in Top 10 for foreclosure filings,” 10...
by evolveAdmin | Oct 20, 2011 | Foreclosure Defense
If you’re one of the many Florida homeowners struggling to make ends meet, to make your monthly mortgage payment or are facing foreclosure of your Orlando area home, Bank of America is offering a new incentive to Florida homeowners. In exchange for short selling a home rather than taking the bank through the foreclosure process, Bank of America is offering up to $20,000 to some Florida homeowners. In order to qualify, a short sale must be submitted for approval to Bank of America by November 30th. In addition, a home must not currently have an offer or offers pending and the sale must close by August 31, 2012. Not all short sales will qualify for the $20,000 payout to sellers, but the reported minimum payout is $5,000. The Florida foreclosure process is averaging almost two years from start to finish and is almost twice that of the national average. It is believed that Bank of America is trying to encourage homeowners who may be facing a Florida foreclosure to leave a home sooner and in better condition than some foreclosed properties have been by offering a relocation fee or bonus to the cooperating homeowner. What Exactly is a Florida Short Sale? A short sale, or short-selling a property, is selling a home for less than what is owed on the property. Under Bank of America’s current program, it will often agree to not seek a deficiency judgment from the seller for the remaining unpaid mortgage when a short sale is approved. For example, if you owe $200,000 on your home and the bank agrees to a short sale to a third party for $150,000,...
by evolveAdmin | Sep 19, 2011 | Foreclosure Defense
Although the struggling housing market in Florida appears to be improving as reports of rising home values and declining foreclosure filings surface, many experts in the real estate industry are wary that a potential second wave of foreclosures may be looming on the horizon. Because banks have recently hired new real estate lawyers to pick up where the previous ones left off due to unethical conduct, economists fear that lenders may start releasing more houses than the market can currently support. Hidden Risk of Orlando Foreclosures: Florida Shadow Inventory Right now, the primary cause of concern in the Florida housing industry is a phenomenon aptly named “shadow inventory.” Essentially, the shadow inventory is a collection of mortgages that have been in default for three or more months that are either on the brink of foreclosure or have already been seized by the bank. If you have defaulted on your mortgage and are facing or in fear of foreclosure, an Orlando foreclosure defense attorney can help you understand the options available to you, whether you want to stay in your home or move on. Homes that are part of the shadow inventory are not yet listed for sale. They pose a huge threat to the housing industry because it is impossible to predict their exact numbers. If lenders decide to release all of the foreclosed properties at once, the shadow inventory has the potential to completely destroy the slowly recovering market because the percentage of lender-owned properties for sale would grossly outnumber the amount available for conventional sales. As a result, there would not be enough qualified buyers to reduce the inventory....
by evolveAdmin | Aug 31, 2011 | Bankruptcy
Many individuals and families have considered bankruptcy in recent years due to the poor economy, a lost job and the sharp downturn in the housing market. But there is another all-too-common reason for seeking bankruptcy relief, one an Orlando family knows all to well: medical bills. The birth of their daughter in 2007 was a celebrated event for the Sutherland family. But, shortly after Ellie’s birth, she was whisked away to a neonatal intensive care unit, where she remained for 25 days, thus beginning a lifetime of visits to hospitals and specialists trying to determine what was affecting little Ellie. She was partially deaf, suffered from high fevers, was lacking muscle tone on one-half of her face and would scratch and bite until she bled. In 2009, the Sutherland’s filed for bankruptcy. The medical bills were piling up, the couple made too much money to qualify for government benefits for Ellie, but not enough to keep up with the house, the living expenses and Ellie’s treatment. Medical Bankruptcies are Not Uncommon in Florida and Throughout the U.S. Researchers at Harvard and Ohio found that 62 percent of all bankruptcies are due at least in part to medical debt. Every 90 seconds, a family somewhere in the United States files for bankruptcy relief because of overwhelming medical expenses. Contrary to popular belief, a majority of those families, three-quarters to be exact, had health insurance. Both of the Sutherlands were employed when Ellie was born and both had insurance. Neither thought that medical bills would become an issue. But the insurance companies pointed fingers at each other, claiming that the other was the...
by evolveAdmin | Jul 29, 2011 | Bankruptcy
While Florida bankruptcy filings show a decline compared to last year, experts say the percentages may be skewed. Most economists are not celebrating yet; they do not believe that Florida is quite yet on the mend as unemployment remains high throughout Central Florida. Some believe the drop-off was caused by a temporary backlog of foreclosure filings from lenders due to the accusations of fraudulent paperwork in 2009-2010. While banks sort though legal issues and company tactics, delinquent mortgages have been put on the back burner, slowing the number of foreclosures. The Hidden Benefit of the Foreclosure Backlog: No Mortgage Payments Some Florida homeowners who have lost their jobs or have otherwise fallen prey to the Great Recession are benefitting from the backlog. As lenders slow the rate at which they are filing foreclosures, many people have been able to live ‘rent free’ in their home, allowing funds to be used elsewhere. Living without a mortgage payment and being able to stay in their home is enabling some homeowners to get back on their feet financially, avoiding or postponing bankruptcy. The timing of a bankruptcy filing is a critical issue for anyone considering bankruptcy relief; the lack of a mortgage payment has given some Orlando-area families additional time and money during these difficult times. Bankruptcy Options for Floridians Individuals have two main bankruptcy options, Chapter 7 and Chapter 13 bankruptcy. A Chapter 7 bankruptcy, if filed correctly, will allow the homeowner to eliminate unsecured debt and keep their home. A Chapter 13 bankruptcy allows you to restructure all debt including your mortgage in order to make payments more manageable. A Chapter 13 filing...
