Mortgage Foreclosure Resolution

In what could quickly become a major national news story, The Press of Atlantic City reports that six mortgage lenders in New Jersey (including some who are the biggest banks in the U.S.) have been ordered by the state’s Supreme Court to appear in court on January 19 to explain why the state shouldn’t suspend their foreclosure practices as a result of the robo-signing that has been rampant the past few months. The lenders are reported to be Ally Financial; BAC Home Loan Servicing, which is a subsidiary of Bank of America; Chase Home Finance, which is a part of JP Morgan Chase; CitiResidential Living, which is a subsidiary of Citibank; OneWest; and Wells Fargo Financial New Jersey. An additional 24 lenders were given 45 days to provide evidence there aren’t irregularities in their foreclosure actions.

New Jersey has been swamped with foreclosures, and within the last few years, the number has skyrocketed. In 2006, there were over 24,000 foreclosure cases in the state. By 2009, that number had risen to over 66,000. By the end of 2010, the courts had handled over 46,000, with thousands more in the pipeline.

Unfortunately, evidence has arisen that has shown the banks have not been honest in their foreclosure practices. The recent robo-signing crisis brought to light the fraudulent practices of the nation’s banks, who hired individuals who have been dubbed “robo-signers” to process hundreds of foreclosure affidavits every day. This does not provide assurance that the banks’ claims against borrowers are documented and accurate, which they are required to prove legally.

The robo-signing predicament is a national problem, and the fraudulent practices of mortgage companies and banks have affected Americans across the country. To learn more about your rights as a homeowner in New Jersey, contact the Law Offices of Robert Manchel. Our New Jersey foreclosure lawyers can help you understand your legal options during this difficult time. Call us today at 866-503-5655.

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The Wall Street Journal reports that Bank of America will be restarting over 16,000 foreclosure cases across the United States. However, it could take many weeks before it is known whether or not the new documents the bank has submitted will be approved by local judges. This announcement does not conflict with the bank’s previous declaration to observe its regular holiday foreclosure freezing policy. The freeze does not affect the loans the bank services that are held by investors who have chosen not to participate in the voluntary freeze, or for homes that have already been vacated.

The bank instructed its foreclosure lawyers to ready new affidavits for approximately 7,800 cases where it is required to obtain court approval before foreclosing on a home. Currently the bank has over 102,000 homes that are essentially frozen by the bank because of recent documentation and “robo-signing” concerns. Bank of America lawyers were also asked to lift the hold on over 8,000 foreclosure sales out of 30,000 that have been delayed in states where court approval is not required.

Previously, Bank of America had stated they would resubmit affidavits for foreclosures that were pending starting on October 25 for foreclosure sales to resume in early November. However, their efforts struck several roadblocks, including hiring new law offices to handle foreclosure paperwork. Only a handful of cases were re-filed. A spokesperson for the bank stated they were taking a deliberate approach to the situation.

Other U.S. banks are reviving their foreclosure processes following internal reviews. J.P. Morgan Chase & Co. announced that it has begun re-filing affidavits for foreclosures on a state-by-state basis. A spokesperson for Wells Fargo & Co. stated the bank has readied over 46,000 supplemental affidavits in foreclosure cases where it is required to obtain court approval and 94 percent have been given to outside counsel to be submitted to the courts. Thus far, the bank alleges it hasn’t discovered any cases where a foreclosure should not have occurred.

The 16,000 foreclosure cases that Bank of America is reopening involve properties that are vacant or homes that were rented to other occupants. Both present less of a risk for a legal challenge. The majority of these cases are in California, Florida, Georgia, Michigan, and Texas. A spokesperson for the bank says it will take them approximately six days to review and then approve each newly readied affidavit. However, it may take some courts many weeks for a hearing to be scheduled. Regarding the remaining affidavits that need to be replaced, Bank of America expects to file them early in 2011.

The unethical behavior by banks and mortgage companies have affected all Americans who are struggling financially or who are currently going through foreclosure. If you have questions about the foreclosure process or bankruptcy in New Jersey, contact the Law Offices of Robert Manchel. Our New Jersey foreclosure lawyers can help you determine the best course of legal action for your specific situation. Call us today at 866-503-5655.

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CNN.com recently reported that several big mortgage companies and banks have stated they won’t evict borrowers who have defaulted on their payments during the weeks that surround Christmas, essentially initiating a freeze on foreclosures during the holiday season. Both Freddie Mac and Fannie Mae announced they will freeze all foreclosure evictions on mortgage loans they currently back or own from December 20 through January 3. The two companies are controlled by the government.

One of the executive vice presidents at Freddie Mac, Anthony Renzi, stated, “If the property is occupied, our foreclosure attorneys will suspend the eviction to provide a greater measure of certainty to families during the holidays.”

In foreclosure, eviction marks the completion of the process. After a house is sold at a foreclosure auction, or if the bank takes possession of the house, the owners are required to vacate the property or they will face eviction notices.

Many large banks are also in a unique position this holiday season as investigations regarding robo-signers are underway. Typically banks also observe a freeze during the holidays, but this year there is already a freeze in place because of the scandal. The freeze was instigated to allow the banks time to scrutinize whether any legal procedures were violated in their foreclosure processing, as well as to allow time to re-file any questionable documents that were discovered.

Bank of America said it will still observe its regular holiday policy, which is to hold off on foreclosure evictions or sales from late December through New Years’. However, it will continue the process of foreclosure for loans it services that are held by investors who have opted not to participate in the freeze, and for houses that are already vacant.

Wells Fargo’s holiday freeze will run the same time period as Freddie Mac’s and Fannie Mae’s. Like Bank of America, their freeze will not affect other loans it services that they do not hold in its portfolio, and will follow investors’ guidelines from the states where the properties are located.

Chase Mortgage, a division of J.P. Morgan Chase has stated that suspension connected with the robo-signing scandal essentially makes a holiday freeze a moot point. The company will not be able to evict borrowers for several weeks regardless of whether they instated a freeze.

There are about 100,000 bank repossessions in the United States each month. The temporary amnesty the mortgage companies and banks will initiate will affect tens of thousands of defaulted borrowers, allowing them to have a peaceful holiday season.

If you have questions about filing for bankruptcy or mortgage foreclosures in New Jersey, please don’t hesitate to contact experienced and highly skilled New Jersey mortgage foreclosure lawyer Robert Manchel. He can examine the circumstances surrounding your situation and can help you make the best possible decision for your financial future. Call Mr. Manchel today at 866-503-5655.

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A recent article on CNN.com discussed guidelines that many states in the U.S. issued shortly before this past election, regarding the complex subject of voting while someone’s home is in the foreclosure process. Normally, people register to vote in whatever county they reside, but residency can be difficult in the midst of foreclosure. Often, individuals going through foreclosure drift from rental house to rental house or often live with friends or family.

While each state in the U.S. has its own laws regarding this topic, typically, if an individual owns a home that is in foreclosure, it doesn’t affect their right to vote, but it could affect where they vote. In a recent report, over 3 million homes in the U.S. are going through the process of foreclosure, and that’s a lot of potential votes that could sway an election.

The U.S. Election Assistance Commission issued guidelines on how to register to vote for individuals who are going through foreclosure:

• If you have recently moved, you will have to re-register, if you’ve moved out of county or state. If you have moved within your county, you will need to update your address.
• In most states in the U.S., you can change your address until Election Day, or you can vote with a provisional ballot, if your name isn’t on the voter rolls.
• If the foreclosure process commenced against your home, but you haven’t moved, you are still registered to vote within that precinct.
• If the foreclosure process is finished, you will need to update your voter registration with your new address.
• If you don’t have a permanent address, most states permit you to use the address of the foreclosed property.

Going through foreclosure can affect a person’s life in many ways, besides just dictating where someone votes. It can impact an individual’s health, as the complex process brings added stress into their lives. Foreclosure can also affect a person’s personal life and strain their relationships with family and friends. With the holidays approaching, foreclosure can also determine whether a family is able to travel due to tightened finances.

Foreclosure is a decision that must be made carefully. It could be a wise decision to talk with a New Jersey bankruptcy attorney to learn how filing for bankruptcy can affect all aspects of your life. For more information, contact the Law Offices of Robert Manchel, and our lawyers can help you decide the best course of action during these hard times. Call us today at 866-503-5655.

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According to a recent article in USA Today, the foreclosure rate across the country has dropped roughly 6 percent, as state and federal investigations are conducted on foreclosure cases in 23 states that require court approval. There has also been heavy coverage by the media regarding foreclosure errors, where many mortgage companies failed to follow proper legal procedures in thousands of foreclosures. There is an estimated 1 million homes in the midst of foreclosure in the U.S., and with news of faulty methods by mortgage servicers being reported, many homeowners are hiring attorneys to help challenge foreclosure actions.

In Florida, circuit courts have reported more than two out of three cancelations in foreclosures, while the normal ratio is less than one out of three. The delay has been attributed to banks, which are slowing processes down as reports of “robo-signers” have recently come to light. Many U.S. states require verification that documents in a foreclosure process are accurate, and in some cases must be signed by a notary.

Bank of America has reported that it will refile affidavits in over 100,000 foreclosure actions within the 23 states requiring judicial approval. It will then complete a state-by-state review of their foreclosure documents in the remaining 27 states. JPMorgan Chase has stated it will need to refile approximately 115,000 affidavits in 41 states. They have temporarily suspended foreclosure completely within those states. Other mortgage companies and banks have found themselves in the same situation.

Once the affidavits are refilled, foreclosures in those states will begin again, pending a judge’s ruling in each case. Many judges are now demanding more information from mortgage servicers with the recent revelation regarding faulty paperwork and robo-signers. Some companies have failed to produce proof of ownership of the actual mortgage note when attempting foreclosure on a house. This typically occurs when mortgages are transferred from lenders to investors, and sometimes even to other investors.

In New York, courts are requiring that mortgage company’s attorneys to do their part, not just judges, to ensure that foreclosures are properly handled. A new rule that effects an estimated 80,000 pending foreclosure cases, requires attorneys to sign an affirmation stating that they reviewed all foreclosure documents and asked the lenders and banks to verify the accuracy of the documents. Any attorney who files a fraudulent affirmation would face court sanctions. Other states are considering instating similar rules.

Unethical action on the part of mortgage companies and banks affects all Americans. For information about New Jersey foreclosure and bankruptcy, please contact the Law Offices of Robert Manchel. Our New Jersey foreclosure and bankruptcy attorneys will assist you during this difficult time. Call today at 866-503-5655.

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Defendants of a foreclosure action has become an unfortunate reality for thousands of Americans across the country. Under expected conditions, the New Jersey foreclosure process is challenging to deal with. However, at the heels of investigations into the unethical business practices of lenders, many people facing foreclosure may be asking themselves what they did to deserve such a corrupt and expedited customer service practices.

According to The Miami Herald, a Palm Beach County judge has put a stop to a state subpoena asking permission to further investigate a law firm in Boca Raton that has been accused of unethical foreclosure practices. Reportedly, the law firm has been accused of filing fraudulent documentation during speedy foreclosures, which unfairly forces families and individuals out of their homes sooner than they should have been. The article explains that the judge rejected the subpoena due to the lack of evidence supporting the allegations presented for pursuing the subpoena. It is likely that additional evidence will undoubtedly be sought to bring to light the true reality of the situation. Unfortunately, many lenders and law firms have been accused of unscrupulous behavior, particularly the firms that handle high volumes of foreclosure cases. The problems are associated with the lenders and law firms’ representatives’ failure to properly review and confirm the accuracy of the information presented in each case. Also, there are allegations that the lenders are signing certain documents without reviewing any information, whatsoever. In short, people all across the country have lost their homes because foreclosure representatives have failed to do their jobs properly.

Going through the foreclosure process can be one of the most stressful situations that any person must confront. Fortunately, there are attorneys who are prepared to help homeowners protect their homes and discuss all options in this regard. At the Law Offices of Robert Manchel, our experienced New Jersey foreclosure resolution attorneys assist individuals with legal matters pertaining to the foreclosure process and filing for Chapter 7 and Chapter 13 bankruptcy. For more information about how to save your house from foreclosure in Bankruptcy, please contact a skilled New Jersey foreclosure attorney today at 866-503-5655.

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After luring potential and current homeowners in with the promise of low payments, many mortgage companies have now jumped quickly at the chance to foreclose on homes in which payments have faltered. According to a Reuters.com article, Connecticut’s attorney general has recently asked state courts to freeze home foreclosure proceedings for 60 days while the business practices of mortgage companies, namely JPMorgan Chase & Co, are investigated. This is on the heels of borrower complaints that they were misdirected by their lenders.

According to the article, deceptive lenders first acquired business from unsuspecting homeowners by offering adjustable mortgage rates, which began with low payments but soon escalated to larger payments. Now, investigations are being conducted into how foreclosure proceedings are being handled. This is primarily because foreclosure documentation is being submitted incorrectly by mortgage companies, possibly because they either don’t fully understand the provisions of the documentation or are simply attempting to unfairly expedite the foreclosure process. Either way, it appears as though some individuals are having foreclosure thrust upon them without a completely valid reason.

Economic uncertainty has led to foreclosures and bankruptcies all across the country. For residents in New Jersey, the risk of losing their homes is at an all time high, particularly if an unethical mortgage company is involved. For more information about foreclosure in New Jersey, please contact the experienced New Jersey foreclosure resolution attorneys at the Law Offices of Robert Manchel. Our foreclosure attorneys will help you make the best possible decisions in regard to your financial future. Call us today at 866-503-5655.

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The fear of foreclosure continues to affect the peace of mind of individuals all across the country. While the unethical business practices of mortgage companies and lending institutions are examined by government agencies, there are groups that are seeking to assist individuals avoid foreclosure and save their homes. According to a Los Angeles Times article, one such group, the Neighborhood Assistance Corporation of America (NACA), held a refinancing event at the Los Angeles Convention Center that began September 30.

Reportedly, the five-day event was aimed at individuals who are at risk of losing their homes to foreclosure. The NACA, a national mortgage company, offered assistance to individuals by restructuring their current mortgages in order to make monthly payments more manageable. This was the second year of the company’s “Save The Dream Tour”, which travels the country in hopes of helping individuals save their homes. Typically, the NACA is able to lower interest rates to 2 or 3 percent. In 2009, the NACA saw an average of 30,000 people at each of its 12 events across the country.

While lower interests rates will certainly prevent many people from losing their homes, there are still some circumstances under which decreased monthly payments may not be enough. Filing for bankruptcy is a viable option for many individuals who have accumulated debt and simply cannot afford to pay their debt on their own. Whether one chooses to file for Chapter 7 bankruptcy protection or Chapter 13, filing for New Jersey bankruptcy can be a complicated process that requires the assistance of an experienced bankruptcy attorney.

The skilled New Jersey bankruptcy attorneys at the Law Offices of Robert Manchel assist individuals in New Jersey who are thinking of filing for bankruptcy, including those who are at risk of losing their homes. In some cases, bankruptcy may help an individual save his or her home. For more information about what bankruptcy can do for you, please call an experienced New Jersey bankruptcy lawyer today at 866-503-5655.

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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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