Blogs

3 years 11 months ago

There is so much mis-information about a forbearance of home mortgages during COVID-19.  Know your options before making a decision not to pay your mortgage.

(4/1/21 UPDATE – see summary of foreclosure alternatives)

This chart provides a summary of relief options available for borrowers facing a COVID–19 related hardships. The options that they can access depend on the loan investor. In addition to the forbearance protections provided by the (CARES) Act, Fannie Mae, Freddie Mac, FHA, VA, and USDA borrowers all have access to expanded options provided by their investors.These programs are discussed in greater depth in Chapter 12of Mortgage Servicing, which will be freely accessible during the COVID. Questions? Contact Steve Sharpe, National Consumer Law Center ([email protected]).

Are you a ‘planner’ or a ‘gambler’?
forbearance mortgage
Do you assume everyone is looking out for you, or you need to look out for yourself?  Do you assume everyone will tell you the truth based on what you believe, or that everyone has some alternative motive to have you believe as they believe?  Since humans walked this earth there have been planners and gamblers.  Planners do their own homework, they research issues, ask questions and assume that answers change over time.  Gamblers throw the dice hoping that luck will shine on them today, they don’t see that the ‘house always wins’, instead they are looking for that one hit that will set them up for the rest of their life.
There are consequences for each action.
What does being a ‘planner’ or ‘gambler’ have to do with mortgages, car loans, student loans and credit cards during COVID-19?  Plenty!!  First, the year of 2020 will bring with it economic issues we have not seen in a century.  COVID-19 has led to mass under or unemployment, businesses closing or closed, shopping centers and large commercial businesses closing and filing for bankruptcy.  The quarantine has led to less driving.  Reduced driving led to using less gasoline, needing fewer repairs and buying fewer new cars (all at a cost to the underlying industry).  Our leaders are looking short term in how to solve the challenges we all face, but are their motives selfish (want to be reelected) or altruistic (want to help us weather this crisis)?
A forbearance is not a guaranty you can keep your home.
forbearance mortgageThe CARES Act introduced us to federally mandated programs that offered the homeowner a ‘breathing respite” – no mortgages during certain periods on certain loans.  First, the loans must be federally or GSE-backed mortgages.  That means 60% of all home loans do not qualify.  A forbearance means that payments are put on hold, not that payments automatically go away, or are added to the end of the loan. 
Hundreds of thousands homeowners are going to be very surprised when their forbearance periods are over and they must pay all the missing payments immediately, or the lender will foreclose on their home.

Never rely on anything someone tells you, even if they work for your lender.  ALWAYS get their promises in writing.  What someone says today will change tomorrow and it is your word against theirs what was said.  What someone writes will normally stand up in court.
There is no “one solution fits all circumstances”.

Planners pay their bills, especially their mortgage, if they have the funds.  Gamblers jump on any offer (like COVID forbearance) even though they have the funds.  Why, because planners look at the future, gamblers look at the chips in front of them.

Look for resources that have no ulterior motives, such as:
forbearance
Arizona Department of Housing
Mortgage Help For Homeowners Impacted By The Coronavirus
There are hardship programs in place to help homeowners who have been directly or indirectly affected by the coronavirus and are struggling to make their mortgage payments.  The Federal Housing Finance Agency (FHFA), which oversees Fannie Mae and Freddie Mac, encourages homeowners adversely impacted by the coronavirus who are having difficulty paying their mortgages to reach out to their mortgage servicers as soon as possible.  As the Consumer Financial Protection Bureau advises (link is external), “you can find the number for your mortgage servicer on your monthly mortgage statement or coupon book.”
Arizona Department of Economic Security
Services related to COVID-19
Mortgage Assistance
Maricopa County:
COVID Crisis Rental Assistance
Non-COVID Rent & Mortgage Assistance
US Department of Housing and Urban Development
COVID-19 RESOURCES
Consumer Financial Protection Bureau
(CFPB is currently run by a Trump appointee, who has watered down the “consumer protection” component).
Learn about mortgage relief options and protections

.fusion-body .fusion-builder-column-2{width:100% !important;margin-top : 0px;margin-bottom : 0px;}.fusion-builder-column-2 > .fusion-column-wrapper {padding-top : 0px !important;padding-right : 0px !important;margin-right : 1.92%;padding-bottom : 0px !important;padding-left : 0px !important;margin-left : 1.92%;}@media only screen and (max-width:980px) {.fusion-body .fusion-builder-column-2{width:100% !important;}.fusion-builder-column-2 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}@media only screen and (max-width:640px) {.fusion-body .fusion-builder-column-2{width:100% !important;}.fusion-builder-column-2 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}@media only screen and (max-width:980px) {.fusion-title.fusion-title-1{margin-top:15px!important; margin-right:0px!important;margin-bottom:0px!important;margin-left:0px!important;}}@media only screen and (max-width:640px) {.fusion-title.fusion-title-1{margin-top:10px!important; margin-right:0px!important;margin-bottom:10px!important; margin-left:0px!important;}}MUSINGS BY DIANE:“FREE” does not mean free.  It means that you will pay dues later.  It may mean your free trip to the mountains comes with obligations to attend two days of intense sales pressure to buy a timeshare that no one wants.  It may mean you get a free puppy who hates your children (or it could mean life is perfect and everyone gets along).  My point is that ‘free’ is never free.  Take time to investigate why someone is offering something for free and what are you obligated to do in the long run.

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The post Summary of Foreclosure Alternatives – COVID-19 Hardships appeared first on Diane L. Drain - Phoenix Arizona Bankruptcy Attorney.


3 years 11 months ago

I’ve received ten of these emails in the past year from the Babbs Law Firm based in Orlando, Florida:
“Good morning Attorney Turco,
 My name is Terrylle, and I am reaching out on behalf of the Babbs Law Firm in Orlando, Florida. I found your name looking for lawyers in the Southern District of Iowa for possible establishment of a local counsel relationship with our outside law firm. The Babbs Law Firm does foreclosure defense in Florida and Washington, DC, but has recently expanded to serve homeowners nationwide. The Babbs Law Firm is looking for attorneys to serve as local counsel, or co-counsel, in many jurisdictions around the country.  I’m contacting your firm to find out if your firm might be interested in working with Babbs Law Firm as cases arise in your area. If we have a need to serve a client in your area, we want to have local counsel, or co-counsel, lined up and ready to go.”    
I really had no idea who Sam Babbs was until I saw a new case issued by the South Carolina bankruptcy court imposing sanctions on the Babbs firm.
There has been an avalanche of these types of cases issued throughout the county in recent years and almost all of them involve a highly entrepreneurial attorney who markets bankruptcy services through the internet.  Bankruptcy law is particularly suited for this type of advertising since bankruptcy petitions are fairly generic and the process of preparing a case can be standardized much like Henry Ford did with the assembly line.
The fact is, successful bankruptcy attorneys do create assembly lines.  Smart attorneys should create streamlined preparation methods. They should automate the process to achieve a standard level of excellence for every case prepared.
So it comes as no surprise that our field increasingly sees regional or national firms entering local markets. They advertise well. They are internet savvy. They use telephone salespeople to quickly sign up new customers. Necessary documents can be faxed or emailed or uploaded to a central case preparation factory anywhere in the world.
But these new firms lack one thing: a local attorney to represent clients at the bankruptcy court hearing.
The challenge for these high-tech law firms is to figure out how to create a network of local counsel to show up at court. Warm bodies are needed, and, quite frankly, that is about the only qualification required.
The results of this spoke-and-wheel legal structure is predictable.

  • Clients get lost in the shuffle. They don’t know the name of the attorney who represents them.
  • Local counsel rarely meets the client prior to the bankruptcy court hearing.
  • Bankruptcy petitions are prepared by staff in the central national office.
  • Petitions are prepared by non-attorney staff who lack any courtroom experience and who are compensated by the number of cases prepared instead of the quality of the cases.
  • Communications with the firm are limited to telephone calls with no one person or team assigned to the case. You talk to a new person on the phone every time.
  • Petitions are frequently bare-boned and lack important details to explain the case to the court trustee.

Read the entire Babbs case and all these shortcomings are revealed.
What these national firms don’t  seem to understand is that they have their organizational structure backwards.  The key to a successful national firm is not centralized operations but empowerment of the local counsel.
A national firm should used it centralized powers of technology, advertising, organization and finance to empower the local counsel.
A smart national firm should route new customers to speak with local attorneys immediately. Instead keeping costs down by hiring the cheapest local attorney to show up in court, national firms should seek out enterprising local attorneys  who want a partner to handle advertising, technology, accounting and routine management duties so that they can focus on their role of representing clients. Talented local partners do not just want a token payment for being a warm body. They want ownership of their work and profits.
A savvy national firm that empowers its local partners would have a multiplier effect. The national office could answer phones and provide extra paralegal services and provide a template for standardized excellence in service. When times are busy the national office could inject extra personal to prepare cases. When times are slow a national office could tap local counsel to help out other local counsel in busier regions.
A national firm that focuses on making the local partner successful by enabling them to provide superior service is the blueprint for success. But this cannot be achieved if the national leader thinks like a fast food franchisor.
In my firm all new clients speak to an attorney who is then assigned their case for the duration of the matter. We work in teams, and a paralegal is partnered with each attorney to provide clients with an attorney/paralegal team that follows them through every step of the case. You always know who handles your case.  This is the most expensive way to structure a bankruptcy firm, but it also produces the highest quality of work and client happiness.
I’m not interested in being a warm body for the Babbs firm. No self-respecting attorney would.
 
 


3 years 11 months ago

On January 1, 2022, HB2617 will become the law of Arizona.  Your home is no longer protected from your judgment creditors, which will have a devastating effect on Arizona’s consumers, and those hardest hit by Covid-19.
homesteadThis bill was promoted by Ben Toma, House Majority Leader, bought and paid for by the debt collectors and creditors.
There are three parts to the bill and its amendments:

  1.  The   bill   increases   a   homeowner’s   homestead   exemption   from   $150,000   to $250,000 effective January 2022.  YEA, THAT IS WONDERFUL, BUT WHAT DOES THE HOMEOWNER GIVE UP?
  2.  The bill retroactively turns any existing judgment into a lien on the judgment debtor’s homestead (some that has never been allowed in Arizona – back to Statehood).
  3.  The Toma amendment to the bill creates a new right for judgment creditors to receive proceeds otherwise exempt if a person refinances the mortgage on their home.

The homestead exemption has been an essential Arizona consumer protection law since the beginning of Arizona statehood.
The purpose of the homestead exemption is to protect a person’s home. For decades, A.R.S. § 964(A) has prohibited judgments from attaching to a person’s home by providing:
“[A] judgment shall become a lien for a period of ten years from the date it is given, on all real property of the judgment debtor except real property exempt from execution, including homestead property.” A.R.S. § 964(A) (emphasis added).
The bill eliminates this protection by automatically converting judgments into a lien that encumbers the person’s homestead.  It puts the interests of the judgment creditor ahead of a homeowner’s interest in the home. It puts families at risk of being left without shelter.
The consequences on debtors who file bankruptcy.
A bankruptcy discharge only relieves a debtor from its personal liability (i.e., the creditor is no longer able to sue or garnish a debtor for the debt). The purpose of a bankruptcy discharge is to give a debtor a fresh start by eliminating all debts. Bankruptcy judges have relied on the A.R.S. § 33-964(A) when holding that no lien attached to a debtor’s homestead and thus no lien could be avoided under the Bankruptcy Code. (i)   It is possible that thousands of bankruptcy cases will need to be reopened, at a substantial cost to the homeowner, to obtain a court order avoiding a lien that didn’t exist at the time of the original bankruptcy.  Some language was included as an amendment, but only time will tell if that language holds up to litigation of the issue.
This change in the law will most certainly lead to a significant increase in bankruptcy filings in order to eliminate the judgment liens on homestead property.
The bill amendments allow the judgment creditor to invade the homestead proceeds in the case of a refinance.
Homeowners refinance their existing mortgages to reach the excess equity in their home. Often, this amount is less than their protected homestead amount.    When a borrower is struggling financially, the borrower can refinance the mortgage, take out existing equity and use that excess cash to pay essential living expenses, repair a home, and pay off medical bills.
The Toma Floor amendment effectively eliminates the homestead exemption by creating an exception to its application in the event of a refinance.  As a result, a judgment creditor can take a homeowner’s equity upon refinance without regard for the exemption.
homesteadThis happens without warning to the homeowner.   If someone refinances their home, expecting to receive cash to pay for repairs, necessities or other items, the judgment creditors get the money, not the homeowner.  That leaves the homeowner with nothing other than a higher mortgage balance. Judgment creditors would receive an automatic windfall and be allowed to take all the homestead exemption.
The bill and its amendments negatively affect other creditors.
By allowing a judgment to retroactively attach to a homestead, the new law will deprive many existing creditors of their lien positions, because the loan was granted subsequent to the date of the judgment. Similarly, holders of second or subsequent mortgages will likely be denied their rights to the house.
Results:
The provision to increase the homestead exemption to $250,000 is long overdue and a welcome change to existing laws.  However, converting judgments into automatic liens that attach to a person’s homestead grants no added benefit to judgment creditors, while significantly weakening the homestead protections granted to Arizonans.
Retroactively granting lien rights to judgment creditors will be the foundation for a significant amount of litigation in both Arizona courts and federal courts and could potentially create chaos in the Arizona bankruptcy court. Giving judgment creditors greater rights in a homeowner’s equity upon refinance completely defeats the purpose of the homestead exemption.
Courts   have   repeatedly   reiterated   that   the   legislative   purpose   of   the   homestead exemption statutes is to allow the family to prevent judgment creditors from taking the family home.(ii) Judgment creditors (iii) are paid only if a sale takes place and then only after the homeowner receives their homestead exemption.
The bill, with its amendments, change the existing law to the extreme detriment of families who need basic shelter.

In re Rand, 400 B.R. 749 (Bankr. D. Ariz. 2008) (holding that a creditor’s judgment does not attach to any homestead, regardless of equity, and judgment creditors are “denied the special and convenient remedy of obtaining a lien against the homestead and waiting for their collection to fall into their laps when their debtor has to sell or refinance).
ii  Pacific Western Bank v. Castleton, 246 Ariz. 108, 434 P.3d 1187 (Ct. App. 2018) (affirming the longstanding rule that judgment liens never attach to a debtor’s homestead, regardless of equity); Union Oil Co. v. Norton-Morgan Commercial Co., 23 Ariz. 236, 202 P. 1077 (1922); Security Trust & Savings Bank v. McClure, 29 Ariz. 325, 241 P. 515 (1925); Wheeler Perry Co. v. Mortgage Bond Co., 41 Ariz. 247, 17 P.2d 331 (1932); Schreiber v. Hill, 54 Ariz. 345, 95 P.2d 566 (1939); Seaney v. Molling, 62 Ariz. 81, 153 P.2d 532 (1944).
iii  Excludes judgments for domestic support/child support which are not subject to the homestead exemption.

So who voted for the bill:

In the Senate, those who voted for debt collectors over the homeowner were: Barto, Borrelli, Bowie, Boyer, Engel, Gowan, Gray, Kerr, Leach, Livingston (the sponsor in the Senate), Mesnard, Pace, Petersen (made the huge changes allowing the liens to attach retroactively), Rogers, Shope, Townsend, Ugenti-Rita and Fann.

In the House: those who voted for debt collectors over the homeowner were:: Barton, Biasiucci, Blackman, Bolick, Burges, Garroll, Chaplik, Cob, Cook, Dunn, Fillmore, Finchem, Grantham, Griffin, Hernandez, D., Hoffman, John, Kaiser, Kavanagh, Nguyen, Nutt, Osborne, Parker, Payne, Pingerelli, Pratt, Roberts, TOMA (THE SPONSOR OF THE BILL), Udall, Weninger, Wilmeth and Bowers.

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Politically, this is a very strange time.  Politicians are doing things that only a criminal would try (from the insurrection on January 6, 2021, to selling their soul to a narcissist).  Arizona has become the laughing stock of the nation (equal to Florida and Texas).  Voting rights are something to hold hostage.  Why?  Where is honesty,  respect and common courtesy? 
Arizona legislators just invaded your homestead protection.  They cloaked this invasion in an appealing cover of raising the homestead from $150,000 to $250,000.  But, just like the Greeks, this was a Trojan horse.  Pretty on the outwide, but deadly on the inside.  After January 1, 2022 all past valid judgments are now going to attach to your homestead.

Eventually everyone is going to harmed by this change in the homestead law.  Secondary lending will slow down, and, probably, disappear completely for those with modest incomes.  The consequences of refinancing are not going to be known by the common Arizonian, at least not until they try to refinance their home, only to find out the money goes to the creditor(s) who have judgments, not to the homeowner.  So much for paying for the new roof, or dad’s heart surgery.
When will this insanity stop? When will people be more important than the dollar?

@media only screen and (max-width:980px) {.fusion-title.fusion-title-2{margin-top:0px!important; margin-right:0px!important;margin-bottom:6px!important;margin-left:0px!important;}}@media only screen and (max-width:640px) {.fusion-title.fusion-title-2{margin-top:10px!important; margin-right:0px!important;margin-bottom:10px!important; margin-left:0px!important;}}– Diane L. Drain.fusion-body .fusion-builder-column-2{width:100% !important;margin-top : 0px;margin-bottom : 0px;}.fusion-builder-column-2 > .fusion-column-wrapper {padding-top : 0px !important;padding-right : 30px !important;margin-right : 1.92%;padding-bottom : 0px !important;padding-left : 45px !important;margin-left : 1.92%;}@media only screen and (max-width:980px) {.fusion-body .fusion-builder-column-2{width:100% !important;order : 0;}.fusion-builder-column-2 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}@media only screen and (max-width:640px) {.fusion-body .fusion-builder-column-2{width:100% !important;order : 0;}.fusion-builder-column-2 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}.fusion-body .fusion-flex-container.fusion-builder-row-2{ padding-top : 0px;margin-top : 0px;padding-right : 0px;padding-bottom : 0px;margin-bottom : 0px;padding-left : 0px;}.fusion-button.button-1 {border-radius:10px;}.fusion-button.button-1.button-3d{-webkit-box-shadow: inset 0px 1px 0px #fff,0px 5px 0px #003d00,1px 7px 7px 3px rgba(0,0,0,0.3);-moz-box-shadow: inset 0px 1px 0px #fff,0px 5px 0px #003d00,1px 7px 7px 3px rgba(0,0,0,0.3);box-shadow: inset 0px 1px 0px #fff,0px 5px 0px #003d00,1px 7px 7px 3px rgba(0,0,0,0.3);}.button-1.button-3d:active{-webkit-box-shadow: inset 0px 1px 0px #fff,0px 5px 0px #003d00,1px 7px 7px 3px rgba(0,0,0,0.3);-moz-box-shadow: inset 0px 1px 0px #fff,0px 5px 0px #003d00,1px 7px 7px 3px rgba(0,0,0,0.3);box-shadow: inset 0px 1px 0px #fff,0px 5px 0px #003d00,1px 7px 7px 3px rgba(0,0,0,0.3);}Click here for steps to your free bankruptcy consultation
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The post New Law Allows Creditors to Invade Arizona Homestead Protection appeared first on Diane L. Drain - Phoenix Arizona Bankruptcy Attorney.


3 years 6 months ago

After Bankruptcy, are you getting your mortgage statements? After you file bankruptcy, you are still supposed to keep getting your mortgage statements.  But, are you? This question came up at the 29th Annual Meeting of the National Association of Consumer Bankruptcy Attorneys.  (I’m at that meeting this week, which was supposed to be in Orlando, […]
The post After Bankruptcy, are you getting your mortgage statements? by Robert Weed appeared first on Northern VA Bankruptcy Lawyer Robert Weed.


3 years 11 months ago

After Bankruptcy, are you getting your mortgage statements? After you file bankruptcy, you are still supposed to keep getting your mortgage statements.  But, are you? This question came up at the 29th Annual Meeting of the National Association of Consumer Bankruptcy Attorneys.  (I’m at that meeting this week, which was supposed to be in Orlando, […]
The post After Bankruptcy, are you getting your mortgage statements? by Robert Weed appeared first on Northern VA Bankruptcy Lawyer Robert Weed.


3 years 11 months ago

After Bankruptcy, are you getting your mortgage statements? After you file bankruptcy, you are still supposed to keep getting your mortgage statements.  But, are you? This question came up at the 29th Annual Meeting of the National Association of Consumer Bankruptcy Attorneys.  (I’m at that meeting this week, which was supposed to be in Orlando, […]
The post After Bankruptcy, are you getting your mortgage statements? by Robert Weed appeared first on Northern VA Bankruptcy Lawyer Robert Weed.


3 years 12 months ago

Many married people in California have individual debt. When they fail to make payments on their debt, their creditors are entitled to take legal action to collect. One step a creditor can take is to get a judgment and levy a person’s property, including their bank account.  Because California is a community property state, the […]
The post Can Your Spouse’s Bank Account be Garnished for Your Debt in California?  appeared first on The Bankruptcy Group, P.C..


4 years 55 min ago

Businesses have been hit hard on account of the COVID-19 pandemic. While many people have had protection & help through stimulus checks, eviction moratoriums, and extended employment benefits, businesses- both large and small- have not had as much help.
Many businesses and corporations have filed for Chapter 11 bankruptcy amid the COVID-19 pandemic. Although worrisome, Chapter 11 bankruptcy does not mean a company completely stops operating, it just means they are struggling.
Click the link below to see the 20 biggest companies that have filed for bankruptcy due to the COVID-19 pandemic.
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The post The 20 Biggest Companies That Filed for Bankruptcy Amid The COVID-19 Pandemic appeared first on Allmand Law Firm, PLLC.



3 years 12 months ago

If you experience financial problems that make you unable to pay the money that you owed to a creditor, declaring bankruptcy may be your last option to seek debt relief. Bankruptcy will allow you to reorganize your finances, pursue debt settlement, and pay off a creditor. Different types of bankruptcy will help you manage your finances and pay your debts.
There are two different types of debt: secured debts and unsecured debts. Secured debt is a type of debt backed by collateral to reduce the risk associated with lending. It is often associated with borrowers that have poor creditworthiness. If you have a good credit history, you will have higher chances of loan approval. Because the risk of lending to an individual or company with a low credit rating is high, securing the loan with collateral significantly reduces that risk.
If the borrower on secured loan defaults on repayment, the bank will seize the collateral, liquidate and sell it, and use the proceeds to pay back the borrowed money. Assets backing debt or a debt instrument are considered as a form of security, which is why unsecured debt is considered a riskier investment than secured debt.
Secured credit is created with liens. It provides a lender with added security when lending out money. A lien is classified as a voluntary lien or involuntary lien. An experienced Oregon bankruptcy attorney can help you understand how the liens affect your bankruptcy filing.
A voluntary lien is a type of lien where the owner of a property consensually grants another party legal claim to the property as security for the repayment of a debt. The debtor voluntarily grants the lien to the lender, and the property is used as collateral. For example, when you apply for a housing loan, you will be required to sign a deed of trust or a mortgage. This agreement serves as proof that you grant the lender a lien or security interest for your property. If you fall behind on your monthly payment, then the lien will be used to allow a foreclosure auction.
Secured Debts in OregonA lien can be granted to a lender against your personal property through a security agreement. This includes equipment, vehicles, furniture, inventory, tools, stock shares, cash, other investments, or anything that you possess that is not a real estate property. Types of loans such as car loans and home mortgages are secured debts with a voluntary lien. When you apply for a car loan, you will be required to sign and authorize a security agreement that grants a lien against the car that you will buy. If you fail to repay according to the payment plan, the lender can repossess the car using the voluntary lien.
On the other hand, an involuntary lien may be imposed by the court, often for non-payment of taxes. The involuntary lien gives the tax authority (or other body) the right to confiscate one’s property if the debt is unpaid. It includes mechanic’s liens, income tax or real estate liens, judgment liens, and landlord liens.
Secured creditors can protect their collection rights by perfecting a lien. In legal terms, “perfection” refers to a mandatory action to give a creditor notice of lien depending on the applicable state law and property type. A perfected lien provides legal documentation to prove that a creditor has a legal right to seize a collateralized property in place of payments for which they are owed.
In most states, a lender can perfect a lien for a real estate property by filing or recording deeds of trusts and mortgages in the same location of that property. For vehicles, lenders may perfect the liens against motorcycles, trucks, and cars by filing a notation on the certificate of title with the state motor vehicle department.
To perfect a lien for tangible personal properties such as furniture, equipment, tools, materials, and goods, a financing statement must be filed. It is a legal document or record that recognizes the lender, the borrower, and the collateral for secured debts. A financing statement can be filed by a creditor even without a signature, as long as the debtor has signed the agreement for the collateral.
A lender needs to perfect a lien. Some borrowers are granting liens to multiple creditors against the same property. For instance, home equity lines of credit are typically considered as junior to the home loan that you have taken. If the owner of the mortgage is unable to perfect the secured interest, the junior lien can move up in priority.
Lenders might face serious consequences if they fail to perfect a lien. If you decide to file for bankruptcy, the court can disregard a lien that was not perfected properly. In this case, the lender will be considered as an unsecured creditor.
Secured and unsecured debts differ from one another in terms of how a creditor can impose his or her rights to collect, in case you are unable to make monthly payments on time. A credible Oregon bankruptcy attorney can help you classify your assets as secured or unsecured. When you deal with unsecured debts, a creditor is required to file a lawsuit in bankruptcy court before they seize your assets or property.
In contrast, a secured creditor can immediately enforce rights when you fall behind your loan debt and have not yet declared bankruptcy. A court order is not required before the repossession of any car or motor vehicle; however, secured creditors are not allowed to breach the peace or to trespass on any private property.
A lender can impose a home mortgage by foreclosing the deed of trust. Some states allow foreclosure even without any legal action from the bankruptcy court and it can be accomplished within a couple of months. In some states, foreclosure may require approval from the bankruptcy court, therefore the process may take longer.
Before you declare bankruptcy, it is important to know and understand how the bankruptcy process and bankruptcy exemptions will solve your debt problems. Credit counseling can give you an in-depth understanding of the importance of debt management. For legal help in filing for bankruptcy, do not hesitate to consult our qualified Oregon bankruptcy lawyers at Northwest Debt Relief Law Firm. Our lawyers will guide you on how to file your bankruptcy forms, prepare your paperwork for the bankruptcy filing, negotiate settlements to reorganize a repayment plan, help you get out of debt, and improve your credit score according to the bankruptcy laws.
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The post Importance of Secured Debts in Oregon appeared first on Portland Bankruptcy Attorney | Northwest Debt Relief Law Firm.


3 years 6 months ago

For most people, bankruptcy works. For most people “debt settlement” doesn’t work. One reason.  The debt settlement people charge enormous fees–FDR and NDR charge at least $6,000 to “settle” $40,000 in credit cards (and you still have to pay the settlement). Plus, they usually don’t work . See this email I got this email today […]
The post For most people bankruptcy works. For most people, debt settlement doesn’t. by Robert Weed appeared first on Northern VA Bankruptcy Lawyer Robert Weed.


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