learn collect excel working foreclosures kendall tierney president, grca
TRANSCRIPT
COLLECT
Working Foreclosures
Kendall TierneyPresident, GRCA
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The Language of Foreclosure
• Varies by state• Strict Foreclosure• Deed in Lieu of Foreclosure• Judicial vs. Non-Judicial• Short Sale• Trustee Sale• Redemption
What should I ask?
• What stage of foreclosure is the home in?
What should I ask?
• What stage is the foreclosure in?
• What options have they explored?
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Making Home Affordable
• Loan terms may be modified by reducing payments for distressed borrowers
• Refinancing is intended to help owners who are current on payments, but have little or no equity in their home
• Loans can be modified only one time • To be eligible, your loan must be owned or
guaranteed by a government-backed mortgage company such as Fannie Mae or Freddie Mac
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Making Home Affordable
• Plan starts immediately and is strictly for primary residences that are not vacant or condemned
• There are no fees for this type of loan modification
• Modification plan ends on December 31, 2012
• www.makinghomeaffordable.gov
What should I ask?
• What stage is the foreclosure in?• What options have they explored
with their lender?
• Are they planning to file bankruptcy?
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Foreclosure and Bankruptcy
• Chapter 7 bankruptcy does not prevent foreclosure
• Equity• Chapter 13 can prevent foreclosure• Post-petition debt• Loan modifications made by judges
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How Might Modifications Work?
• Amends Bankruptcy Code section 1322(b)
• What are the rules?
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An Example
Under the current Chapter 13 laws:
Parker, Chip. “How Will Mortgage Modification Work under the New Bankruptcy Law?” www.bankruptcylawnetwork.com.
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An Example
Under the proposed Chapter 13 laws:
Parker, Chip. “How Will Mortgage Modification Work under the New Bankruptcy Law?” www.bankruptcylawnetwork.com.
What should I ask?
• What stage is the foreclosure in?• What options have they explored
with their lender?• Are they planning to file
bankruptcy?
• Does my government have a lien in place?
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What About My Judgment?
• Deficiency judgments• First position v. Junior position• When a Junior lien holder forecloses• Do I need a new judgment?
What should I ask?
• What stage is the foreclosure in?• What options have they explored
with their lender?• Are they planning to file
bankruptcy?• Does my government have a lien
in place?
• What do I do now?
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Determine Property Ownership
• What is the importance of the trustee sale date?– Homeowners are responsible for the
property until the sale date– Trustco Bank, National Association v.
Eakin (681 N.Y.S.2d 410)
• What is the importance of having the deed recorded by the new buyer?
The debtor says…
• My house is in foreclosure.• I gave my house back in the
bankruptcy.• I lost the property in
foreclosure.• The bank kicked me out.
