The Next Step in the Foreclosure Mess: Congressional Hearings
With the revelation that many big lenders were "robo-signing" documents - signing them without verifying the accuracy of the information - to move foreclosures through the process, several banks, including JPMorgan and Bank of America, temporarily halted foreclosures to ensure that all paperwork was in order. The resulting outcry has led to the executives of several large mortgage providers being called before congress to answer for their companies' actions.
Many in Congress are seeking solutions that would keep Americans in their homes rather than face foreclosure. Loan modification is seen as a possible solution to the problem.
According to Senator Tim Johnson (D-SD): "Foreclosure should be the last option and we need to examine barriers to mortgage modifications."
The Government's HAMP Program
While the government again appears to be pushing for lenders to work with borrowers to restructure loans, it should be remembered that loan modifications were previously thought to be a possible fix to the situation.
Touted by the Obama Administration, the Home Affordable Modification Program (HAMP) set out to help up to three million troubled American homeowners stay in their homes. The Wall Street Journal reports, however, that of the 1.4 million homeowners who were approved for temporary modifications, over half have been dropped from the program because they did not actually qualify for the loan modification. Many of those same families are now back into the same dire situation they were desperately trying to avoid, facing foreclosure.
Neil Barofsky, special inspector general of the Troubled Asset Relief Program (TARP), states that HAMP "has undoubtedly put people into foreclosure." When a borrower approved for a temporary modification is later found not to qualify for HAMP, the borrower is then responsible for back payments to make up the difference between the modified payment and the original payment, late fees and penalties accrued in the interim. If that money cannot be paid, foreclosure proceedings could begin.
While HAMP had its own issues, hopefully a new solution or loan modification program can be developed that will help the many Americans who are struggling to stay in their homes.
If you are facing foreclosure or currently in foreclosure, you may have options in the form of loan modification, negotiating a temporarily lower payment or filing for bankruptcy. It is important to speak with an experienced bankruptcy attorney about your situation as mortgage companies are not always going to act with your best interests at heart - protect yourself.
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The law firm of George R. Belche, Attorney at Law, located in Lawrenceville, Georgia, focuses on helping people resolve their financial problems through bankruptcy. Filing for Chapter 7 bankruptcy or Chapter 13 bankruptcy allows you to eliminate or pay back a portion of most unsecured debt and helps you ease your financial situation.
The law firm of George R. Belche, Attorney at Law, located in Lawrenceville, Georgia, focuses on helping people resolve their financial problems through bankruptcy. Filing for Chapter 7 bankruptcy or Chapter 13 bankruptcy allows you to eliminate or pay back a portion of most unsecured debt and helps you ease your financial situation.
The law firm of George R. Belche, Attorney at Law, located in Lawrenceville, Georgia, focuses on helping people resolve their financial problems through bankruptcy. Filing for Chapter 7 bankruptcy or Chapter 13 bankruptcy allows you to eliminate or pay back a portion of most unsecured debt and helps you ease your financial situation.
The law firm of George R. Belche, Attorney at Law, located in Lawrenceville, Georgia, focuses on helping people resolve their financial problems through bankruptcy. Filing for Chapter 7 bankruptcy or Chapter 13 bankruptcy allows you to eliminate or pay back a portion of most unsecured debt and helps you ease your financial situation.
The law firm of George R. Belche, Attorney at Law, located in Lawrenceville, Georgia, focuses on helping people resolve their financial problems through bankruptcy. Filing for Chapter 7 bankruptcy or Chapter 13 bankruptcy allows you to eliminate or pay back a portion of most unsecured debt and helps you ease your financial situation.
Students from both private and public universities all over the country may also provide low cost or free advice. The sessions will only achieve directing clients to the right legal path in filing the right papers. Note that with the new bankruptcy laws taking into effect making the bankruptcy filing process more difficult than usual, an experienced bankruptcy attorney will be worth your money.
Many people who enter the bankruptcy process worry about the fate of their credit. This is actually unnecessary as the bulk of credit damage happens before the bankruptcy process is even initiated. While no one wants the added hassle of rebuilding their credit after resolving debt troubles, doing so can put you leaps ahead of others in the credit game.
Americans are now filing Chapter 7 or 13 Bankruptcy to get their debts under control. Bankruptcy in itself is designed for debt elimination. Chapter 7 bankruptcy functions to cancel out unsecured debt such as utility or medical bills, credit card, etc. Chapter 13 Bankruptcy on the other hand is designed to give individuals more time in repaying all their debts.
Filing for bankruptcy is good news whenever you are struggling with your credit card debt, mortgage or medical bills. Bankruptcy laws help families and individuals in their debt struggles. You have two options on how to deal with your debt problems, Chapter 7 (debt elimination) and Chapter 13 (reorganization). Always remember that you can regain credit again after successfully filing your bankruptcy.
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The law firm of George R. Belche, Attorney at Law, located in Lawrenceville, Georgia, focuses on helping people resolve their financial problems through bankruptcy. Filing for Chapter 7 bankruptcy or Chapter 13 bankruptcy allows you to eliminate or pay back a portion of most unsecured debt and helps you ease your financial situation.
The law firm of George R. Belche, Attorney at Law, located in Lawrenceville, Georgia, focuses on helping people resolve their financial problems through bankruptcy. Filing for Chapter 7 bankruptcy or Chapter 13 bankruptcy allows you to eliminate or pay back a portion of most unsecured debt and helps you ease your financial situation.
The law firm of George R. Belche, Attorney at Law, located in Lawrenceville, Georgia, focuses on helping people resolve their financial problems through bankruptcy. Filing for Chapter 7 bankruptcy or Chapter 13 bankruptcy allows you to eliminate or pay back a portion of most unsecured debt and helps you ease your financial situation.
The law firm of George R. Belche, Attorney at Law, located in Lawrenceville, Georgia, focuses on helping people resolve their financial problems through bankruptcy. Filing for Chapter 7 bankruptcy or Chapter 13 bankruptcy allows you to eliminate or pay back a portion of most unsecured debt and helps you ease your financial situation.
The law firm of George R. Belche, Attorney at Law, located in Lawrenceville, Georgia, focuses on helping people resolve their financial problems through bankruptcy. Filing for Chapter 7 bankruptcy or Chapter 13 bankruptcy allows you to eliminate or pay back a portion of most unsecured debt and helps you ease your financial situation.
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