Category Archives: Mortgage Modifications

Why Reaffirming Mortgages Is a Very Bad Idea

Guest Post by Michael Goldstein, attorney in Massachusetts.

You are in a Chapter 7 bankruptcy to eliminate your overwhelming debt, not to put yourself back on the hook for it.

Click here to read more about why reaffirming mortgages is a very bad idea in a guest post by Massachusetts Attorney Michael Goldstein on the new Michigan Bankruptcy Blog of Michigan Bankruptcy Attorneys The Hilla Law Firm, PLLC.

 

 

The Mortgage Meltdown: What Really Happened?

As a bankruptcy attorney routinely filing Chapter 7 and Chapter 13 bankruptcies in an economically hard-pressed state, Michigan, I am daily confronted with the real-world consequences of what the news media talking-heads have come to refer to as “The Mortgage Meltdown” or “The Housing Bubble Burst.”

Everyone is familiar with the long and short of this economic crisis—namely, that property values were quite high for some period of time, during which many folks purchased homes at high prices thinking that they were investing in their future, and then, suddenly, those homes were not worth nearly as much, leaving homeowners with negative equity, massively high monthly mortgage payments relative to the value of their homes, and no real way to sell or move away from the home in the case of job-loss in their geographic areas.

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Do I Need to Keep Paying Homeowners’ Insurance after I Surrender my Home in Bankruptcy?

After the surrender of a home or other real estate in a Chapter 7 or Chapter 13 bankruptcy in Michigan, you should still keep the property properly insured until you are no longer the titled owner of the property.

Click here to read more about homeowners insurance after a surrender in bankruptcy on the new Michigan Bankruptcy Blog of Michigan Bankruptcy Attorneys The Hilla Law Firm, PLLC.

If you are a southeast Michigan resident and are considering filing for bankruptcy, please contact us at (866) 674-2317 or john@hillalaw.com to schedule a free, initial consultation.

How Can I Save My Home with a Chapter 13 Bankruptcy?

While Bankruptcy is one of the most cost-effective and efficient legal means of walking away from an underwater or foreclosed home available, it is also, under the right circumstances, a better means of saving a home in danger of foreclosure than other non-bankruptcy strategies, such as mortgage modification.

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Home Mortgage Loan Modification and Bankruptcy: Before, During and After Your Bankruptcy

Guest Post by Atlanta Bankruptcy Attorney Peter Bricks.

A home mortgage loan modification can be differently challenging before, during, and after a Chapter or Chapter 13 bankruptcy.

To read more about home mortgage loan modification and how bankruptcy may affect the process—or be affected by it—click here to read our full article on this subject on the new Michigan Bankruptcy Blog of The Hilla Law Firm, PLLC, Michigan bankruptcy attorneys.

If you are a southeast Michigan resident and are considering filing for bankruptcy, please contact me at (866) 674-2317 or john@hillalaw.com to schedule a free, initial consultation.

Did I Reaffirm my Mortgage Debt in My Bankruptcy?

A reaffirmation of a mortgage in Chapter 7 bankruptcy is nearly always a bad idea. Michigan law already protects you from foreclosure if your payments remain current, and the reaffirmation agreement will put you “back on the hook” for tens or hundreds of thousands of dollars in mortgage debt where your Chapter 7 discharge would have otherwise technically discharged the debt, allowing you to truly walk away “free and clear” if your circumstances worsen in years to come.

To read more about this topic, click here to read our full article concerning mortgage reaffirmation agreements and Chapter 7 bankruptcy on the new Michigan Bankruptcy Blog of The Hilla Law Firm, PLLC.

If you are a southeast Michigan resident and are considering filing for bankruptcy, please contact me at (866) 674-2317 or john@hillalaw.com to schedule a free, initial consultation.

What Happens to my 2nd Mortgage if I File for Bankruptcy?

I have recently seen a few second mortgages “reaffirmed” in bankruptcy by some of my fellow bankruptcy attorneys. However, in Michigan, as I’ve described here, there is no reason to file what is called a reaffirmation agreement for a mortgage debt when you file a Chapter 7 bankruptcy. So long as you are current on your mortgage payments, you will likely have no issue with retaining your home (although there is the possibility that, if it is an especially “luxurious” home, the Bankruptcy Trustee appointed by the court to your case may see retention of the home as an issue of “good-faith” in your bankruptcy filing).

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