Southern California Bankruptcy Law Blog

Category Archives: Foreclosure

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The Automatic Stay In Chapter 13, And Foreclosure Sales

Posted in Chapter 13, Foreclosure

A fellow bankruptcy attorney recently posed an interesting question regarding a threatened foreclosure sale before the automatic stay is lifted in a Chapter 13 bankruptcy.  Here is the exchange I had with her: Question:             Background Facts: I just got an email from a Chapter 13 client who has a confirmation hearing on 8/21.  She… Continue Reading

The Treatment Of A Second Mortgage After A Foreclosure Sale

Posted in Foreclosure, Short Sales, Uncategorized

I recently had an interesting email exchange with a couple of fellow bankruptcy attorneys on the subject of foreclosure.  The specific question we discussed was whether a second mortgage holder’s claim is extinguished after the holder of the first mortgage conducts a foreclosure sale. The question is complicated by the fact that there are three… Continue Reading

The 2012 Foreclosures, The World And U.S. Economies, And Bankruptcy

Posted in Chapter 11, Chapter 13, Chapter 7, Debt, Foreclosure

Bankruptcy filings should surge in 2012 because the foreclosure pace is picking up speed, and because the world and U.S. economies are not headed for improvement in the near future. I.          Foreclosures In 2012 I haven’t written about foreclosure in a while, but an article in the Thursday Los Angeles Times has given me the… Continue Reading

Chapter 13 Bankruptcy And A New Foreclosure Scam

Posted in Chapter 13, Foreclosure

A recent corrupting trend in Chapter 13 bankruptcy is creating serious challenges for honest Chapter 13 debtors, their attorneys, mortgage companies, and Bankruptcy Courts.  The problem is a new foreclosure scam called property dumping, and it illustrates the ingeniously evil thinking of some real estate crooks. Property dumping has cropped up in response to the desperation… Continue Reading

The Home Mortgage Nightmare Gets Worse

Posted in Foreclosure, Home Loans

Over the last few weeks Alejandro Lazo of the Los Angeles Times has written about new mortgage problems looming on the horizon.  On September 14, 2011 he discussed the toxic combination of relatively high interest rates and heavily underwater property values as presaging the next wave of residential foreclosures.  He observed: A total of 10.9 million homes… Continue Reading

Homeowners Association Dues And Bankruptcy

Posted in Chapter 11, Foreclosure

It is not news to say that today’s real estate market is terrible.  Many “homeowners” are quite literally hundreds of thousands of dollars underwater.  I put homeowners in quotation marks because someone who is underwater does not really own a single molecule of the house. This leads many to surrender their houses as part of… Continue Reading

Tax Debts After Foreclosure

Posted in Foreclosure, Home Loans, Short Sales

I.          The Basic Idea:  Cancellation Of Debt Income Let’s first understand the basic idea with a simple non-real estate example.  Suppose you owed me $100,000.  I’m such a nice guy that I forgive the debt.  It turns out that this becomes a mixed blessing because now the IRS and the Franchise Tax Board (FTB) both… Continue Reading