Is your home worth less than what you owe on the mortgage, or mortgages? That is called: underwater. This encourages people to stop paying and let mortgage foreclosure happen, even if they can afford the payments. In Michigan now, for homes that have a mortgage more than half are underwater. Tune I have been singing…
Tag Archive: real property law
Bankruptcy Filings Will Go Up
More economic bad news means more Detroit MI bankruptcy filings, and more chapter 7 and chapter 13 bankruptcy filings almost everywhere. Home sales continue to plunge. Government programs have failed to stem the tide of foreclosures, which will only go up as “Home Loans Going Bad Faster Than They’re Being Helped” as the title of…
Update-Chapter 13 Bankruptcy Reform
Bill passes House Judiciary Committee, you can read it here. What is now happening in Detroit, Michigan, is that foreclosed homes are being given away by New Century, which sold 60 homes for $60.00. That is right, 1$ per home. Someone studied the records, came in and said I will take them off your hands….
New Bankruptcy Law
Citibank announced support for the Chapter 13 bankruptcy reform legislation which would allow cramdown of mortgages secured by residences. Not all bankers are on board. One trade group dumped on Citibank for supporting the bankruptcy reform that would help homeowners avoid foreclosure by allowing bankruptcy courts to re-write mortgages down to the balance owed, and…
