Southern California Bankruptcy Law Blog

Category Archives: Home Loans

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The Chapter 13 Bankruptcy Debt Limits And An Undersecured Mortgage On A Principal Residence

Posted in Chapter 13, Debt, Home Loans

Chapter 13 bankruptcy has an important limitation.  If the debtor’s debts are too large, Chapter 13 is unavailable: Only an individual with regular income that owes, on the date of the filing of the petition, noncontingent, liquidated, unsecured debts of less than $383,175 and noncontingent, liquidated, secured debts of less than $1,149,525, or an individual… 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

Rebuilding Credit After Bankruptcy

Posted in Chapter 11, Chapter 13, Chapter 7, Home Loans

Many potential bankruptcy clients tell me that they are concerned about the possible ill effects of bankruptcy on their future credit rating.  They are surprised and pleased to learn my tips for rebuilding credit after bankruptcy.  Let me begin with a bit of background. I.          Your Current Credit Is Poor When someone calls a bankruptcy… Continue Reading

Home Mortgage Modification And Bankruptcy – Part II

Posted in Home Loans, Home Mortgage Modification

In my last post I focused on housing because I think it’s the most important factor in the current mess.  This post discusses the programs set up to address the mortgage meltdown.  The feds also view housing as the linchpin. I.          HAMP, HAUP, HAFA, HARP These stand for “Home Affordable Modification Program”, “Home Affordable Unemployment Program”,… Continue Reading

Missed Mortgage Payments And Falling Home Sales

Posted in Home Loans

Here’s the latest mortgage delinquency news from  E. Scott Reckard in the Los Angeles Times: In an ominous sign for the housing market, the percentage of homeowners who have missed at least one mortgage payment has risen for the second straight quarter. . . . “It is clear that the downward trend we saw through… 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

Mortgage Modification And Bankruptcy

Posted in Home Loans

In a recent blog I discussed the abysmal failure of the HAMP program.  It looks like things are even worse than I stated. In a recent headline from the Wall Street Journal’s Market Watch: “New recession begins next year, Shilling says.”  Who is Shilling, and why should I care? According to Howard Gold, Gary Shilling, economist… Continue Reading

Fraudulent Transfers: A Warning To Potential Bankruptcy Filers

Posted in Chapter 13, Home Loans

In a previous posting I discussed the concept of preferential transfer.  A somewhat related topic that has serious implications to bankruptcy filers is fraudulent transfer – also known as fraudulent conveyance.  I.          Fraudulent Transfer Outside Of Bankruptcy             A.        The Origins Of Fraudulent Transfer Law The concept of fraudulent transfer has its origins in ancient… Continue Reading