In many instances, homeowners who need a loan modification also have other debts burdening them and file bankruptcy as well.  Bankruptcy and loan modification have become a pretty common combination for a complete financial fresh start. There are two types of bankruptcy most commonly filed by homeowners, chapter 7 and chapter 13. The numbers refer to the section of the bankruptcy code that you’re filing under. Loan Modification and Chapter 7 Bankruptcy For homeowners filing a chapter 7 bankruptcy, I often get the question which to do first or what’s the best way to go about doing both the loan [...]

Commercial loan modification services companies and attorneys often offer a variety exciting promises to commercial building owners.  Unfortunately, these services often fail to produce the results they promise.  In most cases, the services that commercial loan modification service companies can offer will be limited to document review and follow up. Challenges with Commercial Loan Modification Services Commercial loan modification services are typically much more difficult than residential loan modifications.  As a commercial building owner, when endeavoring into commercial loan modification services, there are some significant challenges that should be disclosed and addressed. HAMP and Other Government Programs Do Not Apply [...]

Non-owner occupied property has historically been part of a good diversified investment portfolio. With home prices declining however, many investors are looking to loan modification on non-owner occupied property as a way to salvage these investments. Federal Loan Modification on Non-Owner Occupied Property Most federal loan modification programs don’t apply to non-owner occupied properties or investment properties. These programs are designed to help homeowners save the home they live in, not to help investors make money or save an investment. So, HAMP or MHA programs are not applicable to non-owner occupied property, however investors may still be able to get [...]

With the difficult economy and housing prices way down, many people ask me “how to do a loan modification?” or ask about applying for a loan modification. It’s not an easy question to answer quickly.  How to do a Loan modification, as many people would have you believe, is not a matter of simply filling out some forms and faxing them in, it can be a long frustrating drawn out process. Step 1 in How to do a Loan Modification: Initial Requirements and Lender Guidelines The first step in how to do a loan modification, is to contact the bank [...]

Many borrowers asking: “how do I apply for a home loan modification?” have no doubt heard about their options to avoid foreclosure.  Words like “short sale”, “deed in lieu”, and “loan modification” have become household terms for struggling borrowers across the country.  In most cases, a loan modification will be the borrower’s first option since it is the only option that allows monthly mortgage payments to be lowered while allowing the borrower to maintain ownership of their property. How Do I Apply for a Home Loan Modification? Common Problems Applying for a loan modification should be an easy process but [...]

As a loan modification attorney, many homeowners ask me, “Does a loan modification affect your credit score or hurt your credit?“  The answer generally is that the loan modification itself is not terribly detrimental, however the necessary late payments leading up to the loan modification can affect your credit score. So, Does a loan modification affect your credit score or hurt your credit? Generally yes. Does Loan Modification Affect Your Credit Score? Applying for a loan modification by itself does not impact a homeowners credit score as it is not an event or issue that is reported to the credit [...]

In Louisville, Kentucky, it was announced Levy’s Lumber and Building Supply will be sold at an auction on December 18th—later this winter. The lumber and supply store remains Jacob Levy & Brothers, Inc.’s, last asset.  Levy & Brothers filed for liquidation under the Chapter 7 Bankruptcy Code, nearly eleven years ago. The property, which is being sold “as is,” is expected to fetch close to $2.5 million in December.  Back in the October of ‘09, Jefferson Circuit Judge Ken Conliffe handed down the orders to sell the property and give all of its earnings to the New York City-based, secured [...]

The North Carolina Labor Department has recently put forth a request with the US Bankruptcy Court and the North Carolina Justice Department to collect nearly $1.5 million in wages due to over 420 workers, who lost their jobs from the now bankrupt, Pace Airlines.  However, the bankruptcy trustee and various labor department officials said there is no guarantee wages will be paid. The airline filed for bankruptcy back in January, yet a preliminary financial statement indicates Pace Airlines has $1.8 million in assets and another $3 million in debts—which do not include the workers’ wages. Pace, based in Winston-Salem, was [...]

In Pennsylvania, and more specifically, Blair County’s Hollidaysburg, the number of mortgage foreclosures is increasing to a point where a much needed Mortgage Court is finally being introduced to residents, in effort to save homes.  This Mortgage Court will work closely with the Blair County Community Action Agency, which has been assisting residents receive financial aid via the Homeowners Emergency Mortgage Assistance Program of the Pennsylvania Housing Finance Agency. An order to produce a process, whereby residents are allotted more time to go through the mortgage foreclosure while looking for ways to save their home, was given by President Judge, [...]

Recently, in a court in Delaware, but, a good 10 months after a gigantic explosion rocked its Puerto Rican fuel storage depot, Caribbean Petroleum Corporation has filed for Chapter 11 bankruptcy protection.  Since the explosion, all operations have basically come to a stand-still (even their website is “under construction,” as of writing this article). The Caribbean Petroleum Corp. is an oil company which owns and manages an oil refinery in Bayamon and features a capacity of 48,000 barrels—per day.  The company accepted having to sell its assets in going through bankruptcy, working closely with senior secured lender, Banco Popular de [...]