NE Office

503.380.7822

SE Office

503.719.5123

Our Blog

Here’s what we have to say.

Check Out Our Recent Blog Posts

Mortgage Lenders’ Mistakes Create Opportunities for Distressed Homeowners

posted on 12.27 @ 5:49 pm

During the last few months, the local and national news has been full of stories about mistakes made by mortgage lenders that have helped millions of homeowners at least buy some time to live in their homes threatened by foreclosure. Some of these homeowners have done better than buy time: they’ve leveraged these creditor mistakes into better terms on their mortgages.

What is all this excitement about? What kinds of mistakes did these mortgage lenders make, and how can you gain from them?

Let’s start with robo-signers. Who are THEY?! A few months ago, some homeowners in different parts of the country tried to stop their foreclosures in court. As part of this process, their attorneys deposed some of the mortgage lenders’ employees (that is, asked them questions under oath). These employees, who had signed some of the foreclosure documents filed at court by the mortgage lenders, admitted that much of what these documents said was false.  They had signed thousands of affidavits (statements under oath) saying that they had personally reviewed the mortgage documents and the accounting on the loan, to show that a foreclosure was legally justified. But they had actually done none of this. The lenders hired these inexperienced people essentially to do little more than sign these affidavits hour after hour, hence the name: robo-signers.  Since the entire foreclosure system is based on the truthfulness of such affidavits, this revelation caught the attention of judges across the country. They did not take kindly to the lenders systematically lying to them in court documents. Once judges started ruling against the creditors, many of the major lenders voluntarily stopped processing millions of foreclosures temporarily, to try to fix these problems.

This attention has opened the door to uncovering a bunch of other problems–not only with foreclosure processing procedures but also with issues that challenge the validity of the mortgages themselves.   These deeper problems include things like the mortgage lender not being able to find the original promissory note or trust deed to show they had a right to foreclose or even that they are owed any money! Some judges have started ruling in favor of homeowners in some of these areas as well, but there is a great deal of uncertainty about what will or will not eventually be successful.

All these irregularities and the confusion they’re causing should be no big surprise: the same mortgage lenders and servicers who were so sloppy and greedy with approving and “re-packaging” mortgages in the first place, were also sloppy and greedy in transferring these mortgages from one lender to another, and then in trying to foreclose on them.

Portland Bankruptcy Law Group has the experience and knowledge to handle your case. Our bankruptcy lawyers are extremely familiar with and are well versed in all aspects of bankruptcy law. Contact us today!

Pay Less on Your Vehicle Loan Every Month & Pay It Off for Less Money

posted on 12.10 @ 11:27 pm

Pay Less on Your Vehicle Loan Every Month

& Pay It Off for Less Money

In our last blog we talked about keeping your vehicle in a Chapter 7 case through the protection of the vehicle exemption. But we didn’t talk there about what to do if you have problems making the vehicle loan payments. So what if you really need to hang on to your car or truck, but cannot afford those monthly payments?

Chapter 7—the “straight bankruptcy–won’t help you there. Almost always it’s “take it or leave it” with your vehicle loan in a Chapter 7 case: either keep the vehicle and live with the payment terms of your loan, or surrender the vehicle and write off the debt.

That’s especially tough if you’ve fallen a payment or two behind, and file your bankruptcy a step ahead of the repo man: if you file under Chapter 7 usually you have to come up with the money fast to catch up on the payments.

BUT, if you meet two conditions, you may have to option of keeping your car or truck, lowering your payments, AND reducing how much you end up paying to keep the vehicle. PLUS, if you’re behind on payments when your bankruptcy is filed, you won’t have to make up the missed payments.

The two conditions:

1.  You got your vehicle loan at least two and a half years ago.

2.  You owe more on the vehicle than it’s worth.

If so, through a Chapter 13 cram-down, you can re-write the terms of your vehicle loan, reducing the balance to the fair market value of the vehicle, sometimes stretching out the term of the loan, sometimes reducing the interest rate, and often lowering the monthly payment by a lot.

Let’s say you are four years into a 6-year loan, with the balance at $11,000 but the vehicle worth only $7,000. The monthly payments are $498, with 24 months to go. With a cram-down, the balance would essentially now be $7,000, and the term stretched to the 36 months of the Chapter 13 case. So now the monthly payment would be reduced to about $220. That is less than half of what the monthly payment had been, saving you $278 per month. Plus in most cases this reduces the total amount to pay off the debt so you have the vehicle free and clear.

The new much lower cram-down payment, along with usually a radical reduction in what you have to pay monthly to the rest of your creditors in a Chapter 13 case, can make it much easier to keep your vehicle.

2207 NE Broadway, Suite 350, Portland, Oregon 97232 T: 503.380.7822
1415 SE Ramona Street, Portland, Oregon 97202 T: 503.719.5123
Web Design By Harlo Interactive - Portland Web Design and SEO Company
© copyright of Kane Legal all rights reserved 2010