Foreclosure & Bankruptcy
Due to unethical and predatory lending practices by mortgage companies and banks, this country is in the midst of a foreclosure crisis. It is estimated that 8 million foreclosures will have been started or completed by the end of 2010. Bad or fraudulent lending practices have resulted in a “Hiroshima” effect of empty houses. Unfortunately, both in the residential and commercial areas, even more catastrophic foreclosures are expected. See USA Today, (September 10, 2009 Front Page); Sacramento Bee (September 14, 2009, front page).
It appears that our government's “bail out” has had little or no effect on this crisis. Although mortgage companies and banks have avoided collapse with our taxpayer funded bailout, these funds have not quite reached you, the homeowner.
Even though our biggest hope, HR200 (the “cram-down bill”) was voted down by mortgage and banking interests in the U.S. Senate, we sill have options. Chapter 7 will allow you to eliminate mortgage debt on houses you wish to surrender. Chapter 13 will give you five years to get current on your mortgage if you are behind and allow you to lien strip the second and third mortgages.