California Bankruptcy Lawyer Blog

Several news sources have reported that the housing market will take a significant period to recover. Economist predict that it could take up to a decade for many homeowners to see equity in their homes, while those in the areas that were hit the hardest may not see complete restoration of the market in their lifetime. Since their peak in 2006, it's been reported that home prices have fallen another 30%, and many experts predict that the market will take another hit as foreclosures pile up. Experts are further concerned that recent government incentives to restore the market such as low interest rates and tax credits will actually lead to another crisis when the measures providing these incentives expire.

In places such as California, where the housing market saw a significant drop in home values, it's predicted that it could take as long as fifteen years to recover according to the chief economist for the national Association of Realtors. Within the state, the Sacramento area was hit particularly hard, and it should not come as a surprise that it will take longer for places such as the Sacramento area to recover because prices fell more steeply.

If you have a question regarding Bankruptcy in San Jose please contact us at 408.279.2288 or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys.  After you have spoken with one of our San Jose bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you.  Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your case. If you have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down,  stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your financial needs.  Please feel free to complete our free bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.

A drop in the number of million-dollar plus homes sold in California has marked its fourth consecutive year (2009) on the downslide. Hillsborough ranked the highest with the most expensive home selling at $8 mil, with Menlo Park a close second. To follow were Cupertino, Los Altos and Saratoga, while Palo Alto, Fremont and Los Gatos were the next grouping on the list with Los Gatos’ top seller peaking at $4.25 million. California communities where almost all sales of homes were in the million-dollar category were Portola Valley and Atherton in San Mateo County, Newport Beach in Orange County, Ross in Marin County and Rancho Santa Fe in San Diego County.

MDA DataQuick, a real estate service out of San Diego recently reported that 18,621 California homes sold for a million dollars or more last year, down 23.8 percent from 24,436 in 2008. In 2007 the total was 42,506, in 2006 it was 50,010 and in 2005 it peaked at 54,773. Last year was the lowest sales count since 2002, when 15,703 were sold.

1,457 newly built homes accounted for 2009's $1 million-plus sales, down 50.3 percent from 2,933 for 2008. There were 1,542 condo sales in the million-dollar category, down 34.7 percent from 2,362 the year before. Condos sold at the million-or-more level were in San Diego, Los Angeles and San Francisco.

While these statistics are mildly interesting, most consumers in the greater Bay Area do not fall in the category of the million dollar listing. If you are facing foreclosure, need assistance with asset management or protection or are considering filing bankruptcy, a Bay Area Bankruptcy Attorney may be in order. No matter what monetary bracket you fall into, consumers in debt are rampant in our current economic crisis, as commercial filings skyrocket, the dow dips, retail businesses file left and right, loans get modified and unemployment continues to plummet. However, the upside to those in financially dire straits are the bankruptcy options available to you, including the Fresh Start of a Chapter 7 bankruptcy.

Mortgage modifications under HAMP for December climbed to 66,000 from 31,000 at the end of November, according to the recent Treasury-issued cumulative report.

But basically, HAMP results are at 33,000 permanent modifications per month compared to a year ago, when they were resulting 100,000 per month.

November/December combined approximately 420,000 newly started foreclosures and approximately 170,000 foreclosure sales completed. What does this mean for HAMP ?

The idea was that the Treasury was driven to convert temporary modifications to permanent modifications but has not done so in the expected pace. Currently, of the 728,408 borrowers actively participating in loan modifications a low 4.3 percent have been transitioned from temp to perm modifications. That equates to approximately 31,382, have been converted to permanent status.

If you have a question regarding Bankruptcy in San Jose please contact us at 408.279.2288 or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys.  After you have spoken with one of our San Jose bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you.  Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your case. If you have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down,  stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your financial needs.  Please feel free to complete our free bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.

San Jose Chapter 11 Bankruptcy Attorney discusses GM’s Speedy Emergence from Chapter 11 Bankruptcy

Bankruptcy experts are saying that General Motors’ (GM) 40-day stay under the protection of Chapter 11 bankruptcy laws is the fastest emergence from bankruptcy protection for a company of its size in U.S. history. GM beat Chrysler’s record by 2 days.

GM was able to emerge from bankruptcy quicker than anyone expected by creating a new company and transferring all of its high-producing to that company. The remaining “old-GM” assets that were not assumed by the new company will to be sold to pay GM’s creditors.

In order for the new GM to emerge, the United States Government provided GM with $50 billion in U.S. government loans. As a result, The U.S. government holds a 61% controlling interest in the new GM. The Canadian government also has an 11.7% interest in the company, the United Auto Workers Union (UAW) controls a 17.5% and the remainder of the company went to GM bondholders.

The new GM believes it will be able to turn a profit even in the current economic climate given its new leaner structure. Through the restructuring process, GM was able to relieve itself of millions of dollars of under-producing assets, oppressive contracts, and massive debt. The new GM is looking to differentiate itself from other automobile manufacturers by committing to an environmental focus and green technology.

If you have a question regarding Bankruptcy please contact us at 1-800-941-6730 or visit www.bkanswers.com and we can connect you with one of our experienced Bankruptcy Attorneys. After you have spoken with one of our bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you. Our team of Bankruptcy Lawyers can assist you with all aspects of your case. If you are have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down, stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your needs. Please feel free to complete our free bankrupcty evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.

Sacramento Bankruptcy Attorney Discusses the Current Foreclosure and Bankruptcy Crisis, along with FEMA

If there was ever a silver lining in the current foreclosure and bankruptcy crisis, then it would be the ingenuity of the solutions that get sparked. The latest one comes from Florida. There is a proposal on the table to allow FEMA to use foreclosed properties to house people displaced by hurricanes. Basically, instead of building new homes or while the homes are being built, the displaced can use homes in Florida that have been abandoned and owned by the banks. The idea seems win-win. Banks have no ability to sell these properties anyway in this market and the displaced need a place to live. FEMA would be able to use the resources already available to carry out its mandate. Communities like the idea because it will mean no more empty houses which invites vandalism and decreases property values.

Of course, as with an good idea, there are nay-sayers. The first problems are the logistics such as who would be picked, how they would get to the new housing, and how it would matched (for example the right house for the right sized family). The next problem is a long term situation. What happens when the market turns or if the bank needs to actually sell the property? Can they evict the tenants and what rights would they have? Finally, there is a moral challenge, should Florida be using the displaced victims as a means to jump start their faltering real estate situation? Whatever the answer may be, the most valuable lesson is that even in calamity, there is opportunity.

If you have a question regarding Bankruptcy please contact us at 1-800-941-6730 or visit www.bkanswers.com and we can connect you with one of our experienced Bankruptcy Attorneys. After you have spoken with one of our bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you. Our team of Bankruptcy Lawyers can assist you with all aspects of your case. If you are have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down, stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your needs. Please feel free to complete our free bankrupcty evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.

Sacramento Bankruptcy Attorney discusses the Pitfalls of Pursuing Voluntary Loan Modifications

It has been predicted that there will be over 8 million foreclosures in the United States over the next four years. Thousands of people are trying to negotiate voluntary loan modifications with their lenders to prevent themselves from becoming a statistic. Unfortunately, the most recent data shows that less than 10% of the consumers who participate in voluntary loan modification programs actually receive a modified loan that results in a reduced principal loan balance. Current data also reflects that approximately 45% of strapped consumers who participate in voluntary modifications actually end up with higher monthly payments as a result of the modification. Consumers who modify their loans may also end up capitalizing their unpaid interest and fees, which get placed on the back end of the loans, and ultimately increases the consumer’s overall debt.

Even with all of the programs to incentivize lenders to make meaningful loan modifications to struggling consumers, the execution of these programs is falling short. Consumers are often given the “run around” or told to get further behind on their payments in order to receive assistance. Asking well intentioned consumers to intentionally fall behind on their payments or further damage their credit just to be given the time of day is patently unfair. Furthermore, many consumers voluntarily attempt to modify their loans for months before they are finally told that relief will not be granted. A serious restructuring of the voluntary loan modification process needs to take place in order to adequately protect consumers and provide much needed relief.

If you have a question regarding Bankruptcy please contact us at 1-800-941-6730 or visit www.bkanswers.com and we can connect you with one of our experienced Bankruptcy Attorneys. After you have spoken with one of our bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you. Our team of Bankruptcy Lawyers can assist you with all aspects of your case. If you are have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down, stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your needs. Please feel free to complete our free bankrupcty evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.

San Mateo Bankruptcy Attorney Talks About Loan Modification Attorneys

Due to the sub-prime mortgage crisis, millions of hard working consumers are facing problems paying their mortgages. With many of the adjustable loans about to “adjust” upwards, their difficulty in paying for mortgages will only get worse. As the fear of missing mortgage payment grows, consumers become desperate in their panic to save their homes. The confusing information coming from the government only adds fuel to the fire as there are daily messages that the government is releasing credit or passing laws that order lenders to work with their customers. From this mass confusion arises a new brand of unsavories preying on the uninformed.

The latest trend of mis-advertising is the “loan modification specialist.” These advertisers promise that lenders can have their loan modified to lower interest rates, place missed payments onto the back end of the loan, or even lower of principle. Although there are legitimate programs out there to help lenders modify their loans, the unscrupulous usually ask the nervous homeowner for money upfront then do little or no work on the case. The homeowner usually falls further behind because their precious mortgage money was paid to the specialist only to find out a foreclosure was started instead of a loan modification.

Lawyers are not immune to the lure easy money as well. Crafty loan modification scammers have been trying to “partner” with bankruptcy attorneys to get more money. The bankruptcy attorney is asked to put their name on the advertisement or even onto the loan modification service contract. Then the bankruptcy lawyer does no work while leaving it all to the “specialists.” These actions can be extremely unethical because the bankruptcy lawyer is fee sharing with non-attorneys, collecting fees upfront, or allowing the unauthorized practice of law, which are all not allowed. If a consumer hires a bankruptcy lawyer to do a loan modification then the lawyer is expected to make a good faith effort to provide actual legal services. Simply turning over the case to non-lawyers is not enough because the lawyer has no control over the quality of work being provided.

Therefore, any consumer considering hiring an attorney to do loan modifications should inquire who is actually doing the work. The consumer should also assume that any money they put forward will never be recovered. At the very least, consider consulting with a bankruptcy attorney to understand those options before paying somebody $3,000.00 for an unknown loan modification.

If you have a question regarding Bankruptcy please contact us at 1-800-941-6730 or visit www.bkanswers.com and we can connect you with one of our experienced Bankruptcy Attorneys. After you have spoken with one of our bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you. Our team of Bankruptcy Lawyers can assist you with all aspects of your case. If you are have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down, stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your needs. Please feel free to complete our free bankrupcty evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.

San Jose Bankruptcy Attorney discusses the Importance of Work Life Balance

The Sagaria Law bankruptcy team attended a 2-day conference in Chicago, Illinois this past week. The theme of the conference was “Get a Life.” At first, the title seemed a bit abrasive. As bankrupcty attorneys, we are constantly striving to reach new goals and better serve our bankruptcy clients. We have massive amounts of deadlines and our actions have serious consequences for our clients. Telling us to “Get a Life” seemed a bit unfair.

However, after listening to the speakers over the course of the conference, it became exceedingly obvious that we all, in fact, do need to “Get a Life.” In any profession or career, a balance of work and personal time is critical to continued success. The speakers motivated us to streamline our processes and provided us with added tools to increase customer satisfaction and retention.

At Sagaria Law, we pride ourselves on our commitment to excellence in providing bankruptcy services to consumers, and in every area of our practice. With our new arsenal of strategies and techniques for improved customer service and greater efficiency, all of the bankruptcy attorneys and staff here believe we are on our way to “Getting a Life.”

If you have a question regarding Bankruptcy please contact us at 1-800-941-6730 or visit www.bkanswers.com and we can connect you with one of our experienced Bankruptcy Attorneys. After you have spoken with one of our bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you. Our team of Bankruptcy Lawyers can assist you with all aspects of your case. If you are have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down, stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your needs. Please feel free to complete our free bankrupcty evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.

San Francisco Bankruptcy Attorney Discusses Loan Modifications

There are many different variations of “loan modifications” being used in the market today. The most traditional loan modification is one where the lender changes the terms of the loan to accommodate the borrower. This usually occurs when the borrower is in a financial bind and has defaulted on their loan. The borrower does not have the funds to fix the situation by paying their arrears or they cannot make their current payments due to a financial hardship. The lender then modifies the loan (which is different from a refinance) to accommodate the borrower. A loan modification is discretionary and need not be approved by the banks. The modifications can include a reduction of interest rate, decrease in principal of the loan, or adding any arrears to the principal and extending the loan. Recently, President Obama released several billions of dollars to the banks to encourage them to modify certain loans.

Alternatively, many debtors have contacted “loan modification specialists” who often advertise late at night promising substantial reductions of a mortgage. Behind the lofty promises, these specialists often work in two ways. The first is a person who will basically negotiate with your lender on your behalf. Their goal is to try and get you the best loan modification possible. These “specialists” are usually people who have very good connections with the lenders and leverage their knowledge of the industry to get you to fill out the proper forms and get the best deal they can. These “specialists” need not be attorneys. The second type of “specialist” is a person who will go through your loan documents looking for errors. When a debtor borrows money for a mortgage, there is a substantial amount of paperwork involved which requires many levels of accurate and truthful disclosures. During the past 8 years, there have been several lenders who were less than experienced which resulted in non-compliant mortgages. Any mistakes present due to the need for quick mortgages give these “specialist” a bargaining chip to force the lender into a better deal on the debtor’s mortgage. Rumors are that certain mistakes can result in hundreds of thousands of dollars of reduction in home loans. These specialists usually want money upfront and the debtor should expect that money to be non-refundable regardless of the outcome. Since the money would basically be non-refundable, the debtor should be very careful as to who they select as their specialist. Luckily for the debtor, if these specialists do not succeed, bankruptcy is still an option for them.

Generally speaking loan modifications and bankruptcy are like oil and water. The two concepts do not work well together. If a debtor is in the middle of loan modification then any subsequent bankruptcy filing will put a stop to the process until the bankruptcy is finished. Also, if a debtor is in bankruptcy, the bankruptcy court must approve any loan modifications.

A loan modification and a bankruptcy can co-exist but it requires a lot of extra paperwork and many more hoops to jump through. It is better for a debtor to actually finish one before starting another. Technically speaking, if a debtor does a loan modification and then immediately files for bankruptcy, then the debtor’s transaction may fall into the presumption of abuse. The presumption of abuse is important because if the debtor pulled out money or paid down some balance then the debtor may have to return the money or reverse the transaction. However, most lenders will not cry foul unless the debtor intends to renege on the new deal.

If you have a question regarding Bankruptcy please contact us at 1-800-941-6730 or visit www.bkanswers.com and we can connect you with one of our experienced Bankruptcy Attorneys. After you have spoken with one of our bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you. Our team of Bankruptcy Lawyers can assist you with all aspects of your case. If you are have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down, stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your needs.