Foreclosures Help Information

Archive for August, 2009

Foreclosure Law In Texas

There is no doubt that the amazing men and women who serve in the United States military are the finest our country has to offer.  They have made the choice to risk their lives to protect each one of us and we can never repay them enough.  The commitment that the members of our armed forces are asked to give has become even more significant in the wake of the September 11th terrorist attacks.  We now have service members who are sent to the other side of the world for a year or more at a time, only to return home for a few months and then do it all over again.  With many of our military troops away in Afghanistan, Iraq, and other bases around the globe, military families are left at home struggling to pay the bills in the midst of this difficult economic recession.  The unfortunate result is that federal bankruptcy filings by members of the military are on the rise, creating additional stress in already strained relationships.

Across the country, and particularly here in Texas, citizens have been experiencing an increase in bankruptcy filings every year throughout this recent economic crisis.  According to the American Bankruptcy Institute, consumers filed 675, 351 bankruptcy filings in the first half of this year, which is up 36.5% from the same period last year. The same organization estimates that there will be a total of 1.4 million new bankruptcy filings by the end of the year, which would be a substantial increase over the 1.06 million filed in 2008 and the 801,840 cases during 2007.

The residents of Texas are faring better than the country as a whole, but there are still plenty of our Texans who are suffering.  In the twelve-month period that ended on June 30, 2009, there were nearly 50,000 incidents of bankruptcy filings in the Lone Star State.  The Southern District of Texas, which includes Houston, was the only region of the state to experience a decrease in filings over the past year. However, even this region of Texas is seeing the number of bankruptcies accelerate as the year progresses.

What do these daunting numbers mean for our military servicemen and women?  In the state of Texas alone, there are close to 200,000 military personnel representing every branch of the armed forces. From Randolph Air Force Base in San Antonio to Fort Hood to Corpus Christi Naval Air Station, service members and their families are operating on incomes that are certainly less than they deserve and are often worried about how next month’s bills are going to be paid.  Naturally, the financial situation is particularly strained when children are involved.  With one parent overseas, there is the decision that must be made between surviving on one military income or paying the cost of full-time day care and returning to work for an additional paycheck.

Just looking at recent homeowner foreclosure statistics provides one important indicator regarding the money crunch that soldiers are facing.  The number of homes in foreclosure in the United States rose 59 percent in the first quarter of 2008 when compared to the previous year. Foreclosures during the same time period in towns near military bases were up an average of 217 percent.  Our men and women in uniform are undoubtedly experiencing a disproportionate level of economic hardship. Fortunately, there are some protections in place for the members of our military who must face these difficult decisions.

The most significant piece of federal legislation that works to save the assets of our military personnel is the Servicemembers Civil Relief Act (SCRA). The SCRA prevents the filing of a default judgment by a creditor, requires that notice be given to a military member about his or her accounts, and can wipe out judgments and garnishments against service members. These protections often help to make filing for bankruptcy unnecessary for members of the military, or at least diminish bankruptcy as an appealing option.  And, the SCRA extends to anyone who is a co-signer or shares debt with a military member, which certainly helps the family members who are making financial sacrifices at home.  In order to qualify for the protections offered by SCRA, personnel must show that their service is materially affecting their ability to pay the bills.  For most young, enlisted families, such verification will not be difficult.

Texas also offers bankruptcy protection for those serving in the military, as spelled out in MISC 10, 1035, 46, 1111, 38 and 562 of the Texas Bankruptcy Code. This law states that if a debtor is serving active duty in the military and is stationed abroad, his or her military deposits in savings accounts are exempt from seizure.  As is also enforced on the federal level through the SCRA, Texas bankruptcy law states that U.S. courts can stop any judgment if ability to pay is directly affected by military service.  This exemption usually remains in place through the length of the debtor’s military service plus three months.  If the immediate need to pay creditors is removed, then some of the pressure to file for bankruptcy protection is hopefully alleviated.  It appears that the U.S. government recognizes the financial strain that is being placed on our military families and has taken these steps to provide at least some level of relief.

About the Author:

Tony R. Bertolino is the managing partner at Bertolino LLP with law offices located in Austin, Houston and San Antonio, Texas. A member of the Trial and Appellate Litigation Team, Mr. Bertolino’s practice is devoted largely to complex transactions, commercial litigation, business law, entertainment law and family law matters. You can read more about Mr. Bertolino at www.belolaw.com

Source - Military Members Who are Facing Bankruptcy in Texas Have Legal Protections

House Foreclosure - Busby & Associates - Houston, Texas

>

If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!

Foreclosure Attorney Tampa Florida

Residential real estate market is not performing very well. We all know. Should we take care of neighborhood shopping center, condo project or office park goes bust?

According to experts, the meltdown of commercial real estate after collapse of housing could prolong and we have already seen unemployment slogging.

Till now real estate foreclosures had been seen proceeding smoothly for commercial missteps. It is evident from the case of St. Peterburg’s BayWalk entertainment complex and also the never-built Westshore Beach Club in Tampa.

In the Tampa Bay, the office properties and also the shopping centers have shed about 30% of their value. This is, when combined with the debt of commercial real estate coming due over next 3 years which is $1.2 trillion.
Let us take note of the following also:

•    The community banks in Florida started investing in the commercial real estate after the meltdown of residential housing there. At least fifty percent of the lending in real estate there is commercial, construction and also land development loans. It has surpassed the residential lending.
•    The failures of banks will lead more tightening in credit. This will result in depriving the businesses of capital in their operation and expansion there. Hence, it may drive down unemployment in the area.
•    After the ongoing residential foreclosures the judges in the Hillsborough, Pinellas and Pasco fear too much of commercial foreclosures. This has also leading in delaying of the selling and appraising process of those real estate that are troubled.

Chief Judge Thomas McGrady of Pinellas-Pasco County Circuit says, “It is coming… And it could break the whole system.”

One thing is sure. Everyone of us fear catastrophe. According to Eric Odom, broker of Tampa commercial real estate, at the time of last real estate bust in early 1990s, too many office buildings were empty in the downtown Tampa. The important troubled projects that can be easily recalled were the skyscrapers SunTrust Financial Center and the 100 North Tampa.

Odom said, “We don’t have the towers standing empty like we did last time… Most of the speculation this time around was in residential real estate.”
However, the attorneys of real estate, Marsh Rainey and Scott Brown, who are surveying the market spotted recently too many turmoil on the ground.

He says that it is not usually the big office projects causing the problems, but it is the glut of office strips. He adds that shopping centers and also the subdivisions which were not either occupied completely or built fully are defaulting on debts.

Real Estate Commercial Group suggest any business owner facing financial difficulties, get proactive and get prepared to provide a solution for your bank.  Mr. Sanchez, 15 year SBA experience, recommends re-underwriting your current financials, create a business plan with realistic, obtainable goals projected for the next 2 to 4 years based on current business trends.  Have 2 (two) solutions for your banker.  Obtaining a commercial loan modification is a option.

Then call your banker and propose the solutions before you reserve cash runs out.

If you are searching the internet for commercial loan workout help, be careful, suggest Mr. Sanchez because his company is reporting 2 calls a day about residential loan modification companies wanting to get into the commercial loan modification business.  “Residential loan modifications are completely different from commercial loan modifications. My team of commercial underwriters, commercial loan officers only work with commercial loans.” said Mr. Sanchez.

For more information, please contact Mr. Sanchez at 480-214-4040 x 2310 or visit www.recommercialgroup.com . Commercial loan modification

About the Author:

-15 Years experience SBA
-11 Years Commercial Real Estate
-Underwriters On Staff
-Licensed & Bonded
http://recommercialgroup.com

Source - Commercial Lenders fear to finance in Downtown Tampa

Florida Corruption State Attorney Mark Ober fixing court cases

>

Illinois Mortgage Foreclosure Law

Redemption rights in foreclosure actually only come after the homeowner's property is lost through judicial sale or foreclosure. The owner can redeem by paying the lender the outstanding principal and interest due, plus the lender's costs in foreclosure. Once the home has been lost, some states allow the homeowner the right to "reclaim" his home for varying periods.

Because of the power the banks have for foreclosing, some states decided that that homeowners should likewise have the right to reclaim their home if their personal circumstances turnaround within a given time period. The homeowner will have to petition the court for a hearing to get his home back and show "proof of funds" that he is able to repurchase his home for what is owed plus all the associated costs of the foreclosure.

Proof of funds can either be cash in the bank or a pre-approved letter from another lender that is willing to fund his purchase. The new lender does not have to be a bank, but can be a "hard money lender" who will charge the homeowner a much higher interest rate and closing points and will only carry the loan for year or so.

These hard money lenders are sometimes called "predatory lenders". The amount they will lend is based on the "quick sale" value of the property. That gives them an equity cushion in case they are forced to again foreclosure upon the property to recoup their loan money.

The homeowner who lives in one of the states that has long redemption periods, can solicit local hard money lenders or real estate investors to exercise his redemptive right if there is equity in the home that can be retrieved by fixing the property and selling it in the retail market.

These are called Equity Agreements and are common in the real estate business. Equity Agreements stipulate who gets how much of the proceeds from the sale, who pays what expenses and who will be dong the work. Remember, if it isn't in writing in the Agreement, it isn't going to happen. If you have a question, ask an attorney before you sign anything.

Here are the states that have no redemption period: Arizona, Connecticut, Delaware, Hawaii, Illinois, Iowa, Louisiana, Massachusetts, Mississippi, Montana, New Hampshire, New York, Oklahoma, Pennsylvania, South Carolina, and Texas. While these sates have no redemption privileges, it is possible to bring legal action against the bank with regard to deficiencies in the foreclosure proceeding or mortgage irregularities. This is seldom worth the effort.

States that have one year redemptive rights include: Alabama, Idaho (either 6 or 12 months), Kansas, Kentucky, Maine, North Dakota (6 or 12 months), and Wisconsin (possibly to 12 months).

The other states vary greatly because of specific terms in the mortgage or deed of trust contracts but range from 10 days to 240 days. It is imperative that become familiar with your local foreclosure laws because they vary greatly from state to state, and the sale or auction practices vary from county to county.

About the Author:

Mark Walters is a third generation real estate investor and founder of
CreatingWealthClub.com
. For a limited time Mark is offering his big guide to finding hard money loans for real estate investing free.
Free guide to private money loans.
 
http://www.FindPrivateMoney.info

Source - Foreclosure Redemption Rights Explained

Facing the Mortgage Crisis | KETC | Granite City

>