2010 September Archive

All across the country, reports of foreclosure rates on the rise are finding their way into local television reports, periodicals, and newspapers. Lately, homeowners who are in danger of banks and lending institutes foreclosing on their property, are being afforded the opportunity to short sell their homes for less than what they owe on their mortgages. According to a NY Times article, current government funded incentives have nearly quadrupled the number of short sales made across the country, in comparison to figures from 2008.

Reportedly however, fraudulent activity regarding short sale practice is becoming more prevalent. In some cases, lenders sell homes to “straw buyers,” or those individuals who are actually affiliated with the lender, for less money. Thereafter, the lender turns around and sells the home for a higher, more market-friendly price. This is done unbeknownst to the original homeowner who authorized the short sale, in the first place.

In other cases, homeowners may purposefully default on their home loans and short sell their house to a friend, who would pay less than the amount due on the loan. Thereafter, the homeowner would continue to live in the house and pay the monthly mortgage payment, which is less than the previous monthly payment. At that point, the homeowner’s friend, who purchased the home, may transfer ownership to the original homeowner via the quitclaim deed process. Nationwide, the state of New Jersey ranks eighth in terms of the number of fraudulent short sales, with 3.3.% of all those sales being deemed suspicious. Furthermore, the article warns against real estate agents who claim to be foreclosure specialists.

If you are thinking of short selling your home, or selling real estate in New Jersey, your best defense against fraudulent activity involves retaining the services of an experienced bankruptcy protection lawyer. At the Law Offices of Robert Manchel, our skilled New Jersey foreclosure resolution attorneys will see to it that you are not taken advantage of during an already difficult time. For more information about your rights and options, please call 866-503-5655 today.

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While the U.S. Department of Housing and Urban Development is doing what it can to offer assistance to those in danger of losing their homes to foreclosure in New Jersey, there are still far too many people losing their houses each day because they are unable to make their mortgage payments. According to an nj.com news article, HUD’s neighborhood stabilization program is now allowing some low to moderate income individuals to purchase homes rather than lose them, all in hope that such action will help revitalize the housing market. To date, a total of $122 million in aid has been provided by the federal government to assist individuals with their housing needs.

Currently, the stimulus program is in its third phase, with $2 million being funneled to the community of Newark alone. To date, a total of 47 houses have been purchased throughout Newark using HUD funding. More specifically, these homes were purchased by the nonprofit organization HANDS Inc., which did repair work on the houses prior to selling them at discounted prices to program qualifying families. According to one fortunate resident who has benefitted from the program, “The prices of the homes are low enough where people — working people — could buy them.”

While government assistance is certainly key to helping the economy recover, many individuals may still require even more help in getting their finances back on track. In some cases, the best option available to an individual may be filing for bankruptcy protection under New Jersey law. However, the details surrounding the filing process can be complicated, so it is highly recommended that individuals thinking of filing for bankruptcy in New Jersey consult an experienced bankruptcy attorney as soon as possible. In some cases, individuals facing foreclosure may even be able to remain in and save their house via filing for bankruptcy.

At the Law Offices of Robert Manchel, our New Jersey foreclosure attorneys can assist you with all matters pertaining to your house’s foreclosure. For more information about foreclosure and bankruptcy protection in the New Jersey area, please contact our offices today at 866-503-5655.

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With such a sparse job market, many recent college graduates are finding it difficult to obtain gainful employment, and as a result are defaulting on their student loans. While many lenders offer lower payment programs meant to assist graduates who are less financially stable, the student loan default rate continues to rise. According to Consumer Reports, the most recent data available shows that the national default rate for student loans is currently at 7%.

Especially problematic, seems to be those student loans that are associated with for-profit schools, or those schools which are run by private companies seeking to make a profit from a student’s education. Currently, the trade-off between a degree and a high paying job seems to be more or less hit or miss. That is, in comparison to past college students and their abilities to find higher paying jobs, recent crops of college graduates are finding it extremely difficult to find any employment whatsoever.

Difficulties staying current with loan payments – housing, or otherwise- can seriously inhibit an individual’s ability to lead a productive life. While it may seem as though your New Jersey student loan debt situation is hopeless, there are options available to you that can alleviate the pressures associated with late payments and creditor phone calls. Although student loans cannot be eliminated through bankruptcy, the bankruptcy laws allow people to eliminate most types of debt, which will provide an individual much needed relief.

At the Law Offices of Robert Manchel, our skilled bankruptcy attorneys assist individuals in the state of New Jersey who are looking to file for Chapter 7 or Chapter 13 bankruptcy protection. For more information about your bankruptcy options in New Jersey, please contact our experienced New Jersey Chapter 13 bankruptcy attorneys today. Call 866-503-5655 today to find out more about our zero upfront Chapter 13 filing fees.

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Many residents assume that filing for bankruptcy and having fair debt collection in New Jersey is a complicated process. For the most part, they’re right. However, an experienced New Jersey bankruptcy attorney will help you understand the filing process, while always keeping your best interests in mind.

According to www.uscourts.gov, the Chapter 13 bankruptcy process is begun by filing a petition with the local bankruptcy court. The petition must include the following:

• a listing of assets and liabilities
• a listing of income and expenses
• a listing of contracts and unexpired leases
• a statement explaining the individual’s financial affairs

A bankruptcy attorney will acquire this information, in addition to income tax documents, pay stubs, and other relevant documentation, that must be prepared, prior to filing the petition with the court. The attorney should reduce the clients’ stress by ensuring the client that the petition is properly prepared. Furthermore, prior to filing the petition, the individual must complete a special type of credit counseling that is tailored for debtors who intend to file for bankruptcy protection.

A chapter 13 bankruptcy petition, includes a plan, which is not required for a chapter 7 bankruptcy case. The plan reflects the amount of the monthly payments, the length of the payments, and the creditors who are entitled to receive the funds.

Within a day or two after the filing, the court schedules two hearings. The first hearing is named the Meeting of Creditors or 341(a) hearing. Although the hearing is named a “Meeting of Creditors” it is unusual for any creditor to appear. Typically, the only individuals appearing at the hearing is the trustee or trustee’s counsel, the debtors, and their attorney. The trustee asks various questions about the debtors’ assets, liabilities, income and expenses. The 341(a) hearing is never held in a courtroom with a judge. Typically, the hearing is held in an office building and not the courthouse.

The second hearing is called a Confirmation Hearing. The debtor does not appear at this hearing. Typically, the trustee, the debtors’ attorney, and the creditors’ attorneys appear at this hearing. This hearing is held in a courtroom. At this hearing, the trustee reviews all information provided by the creditors and debtors. The trustee sets the monthly payment, which is adjusted based on the information provided.

Filing for Chapter 13 bankruptcy in New Jersey can be an intricate process. For more information about filing and your options, please contact the Law Offices of Robert Manchel. As an experienced New Jersey Chapter 13 bankruptcy lawyer, Robert Manchel will help you make the best possible decisions based on your circumstances. Call 866-503-5655 today.

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Homeowners in New Jersey are more seriously delinquent than homeowners in Connecticut and New York, according to a Wall Street Journal online article. Reportedly, the number of New Jersey loans in foreclosure reached 6.28%, while the number of seriously delinquent loans reached 10.54%. Comparatively speaking, the U.S. average during the same time period stood at 4.57% and 9.11%, respectively. New Jersey ranks behind only Florida and Nevada in terms of the number of loans in foreclosure.

While foreclosure seems like a hopeless process, there are options for homeowners who want to save their house. Many people fail to realize that filing for bankruptcy in New Jersey can actually allow an individual to remain in their home, provided they choose to file chapter 13 bankruptcy protection rather than chapter 7. While chapter 7 bankruptcy protection may, under some circumstances, allow an individual to save their home, it does not allow an individual to save a house once that house has gone into foreclosure. However, New Jersey chapter 13 bankruptcy protection does allow one to save their home once it goes into foreclosure.

Per your chapter 13 bankruptcy plan, a monthly payment will be paid each month to a trustee. These payments may last anywhere from 36-60 months. This payment may include unsecured sources of debt, such as credit card bills and hospital fees, in addition to the pre filing mortgage arrears. An individual who can make the monthly bankruptcy, as well as their monthly mortgage payments, will be allowed to remain in their house. At the end of the plan payments, their past mortgage payments will be considered settled, cured and resolved.

At the Law Offices of Robert Manchel, our experienced New Jersey bankruptcy attorneys will guide you every step of the way during your bankruptcy protection proceedings. For more information about how chapter 13 bankruptcy can save your home from foreclosure, please contact our office today at 866-503-5655.

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The economy may be on the road to recovery, but the progress it’s making is too little for the average person to actually feel in their daily life. Credit card debt, variable mortgage rates, and the everyday costs of living are becoming more and more difficult for people to handle. Consequently, many homeowners are now unable to make their mortgage payments, resulting in those homes going into foreclosure.

According to a Los Angeles Times article, many investors and private equity funds are now cashing in on foreclosed properties, purchasing them at auction so that they can turn right around and sell them for a quick profit. Though home flippers are nothing new, the method of purchasing foreclosed homes (which often times still house the home owners) as an investment opportunity during a downtrodden economy is a practice that is catching on across the country. Professional investors, in particular, are venturing into the flip business, which was more recently occupied by amateur investors looking to make a profit after a few months of remodeling and staging.

Allowing one’s home to go into foreclosure is the absolute last option that a New Jersey homeowner would ever want. Fortunately, when a family’s home is in danger of entering into foreclosure, and mortgage companies are unwilling to help, there are options that can help save the family home. In order to take advantage of the best option available, a home owner facing foreclosure in New Jersey should always consult an experienced New Jersey foreclosure attorney who will ensure that everything that can be done to save the house will be done.

In New Jersey, filing for Chapter 13 bankruptcy protection may allow a home owner to continue living in their house after their mortgage has been reinstated. Although a Chapter 7 bankruptcy will not stop a foreclosure action, the filing will permit the elimination of debt and permit the homeowner an opportunity to negotiate a loan modification. In any event, the skilled New Jersey bankruptcy attorneys at the Law Offices of Robert Manchel will help you make the best decisions for your particular financial situation. If you’d like more information about your rights when filing for bankruptcy as well as the potential benefits of New Jersey credit counseling, please call 866-503-5655.

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According to a recent Wall Street Journal article, the number of baby boomers filing for bankruptcy is on the rise. Data gathered by the Administrative Office of the U.S. Courts shows that in 2007, nearly half of all individuals filing for bankruptcy in the United States were between the ages of 45 and 64. A full 42% of all filings belonged to Baby Boomers, representing a disproportionate number of filings associated with older Americans.

The findings of the study, set to appear in the September issue of the American bankruptcy Institute’s ABI Journal, show that the number of bankruptcy filings belonging to individuals between the ages of 55 and 64 increased by 65% during the five year period of 2002-2007. Comparatively speaking, the number of filings belonging to individuals 25 years of age and younger decreased by 60% during the same time period.

Variable mortgages are cited as one possibility for why Baby Boomers were hit so hard financially in recent years. Reportedly, many mortgage companies targeted older individuals with offers of low mortgage payments, which have since increased due to variable mortgage rates, a process that has been extremely scrutinized as of late. However, Baby Boomers are certainly not the only age group that has been adversely affected by the declining economy or may be sorting out New Jersey debt after bankruptcy.

At the Law Offices of Robert Manchel, our experienced New Jersey bankruptcy attorneys have assisted many individuals with the important decision as to whether bankruptcy is in their best interest. We will also guide you through the process and explain the disadvantages of New Jersey bankruptcy. If you’re thinking of filing for Chapter 7 or Chapter 13 bankruptcy protection, please contact our offices for more information. Call 866-503-5655 to speak to one of our skilled bankruptcy attorneys today.

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