Freedom Law Firm Las Vegas Foreclosure News Round-up
As foreclosures continue to climbin in Las Vegas, Nevada and the U.S., it’s worth taking a look at some of the trends and current issues in foreclosure:
Countrywide’s Court Loss Complicates Mortgage Modifications (The Atlantic) – Mortgage lenders may not be able to negotiate loan modifications even if they want to in many cases, thanks to a ruling by a Federal Court judge. It looks like they’ll need the consent of their investors. And getting consent from numerous investors is less a matter of persuasion than it is of logistics. Because mortgage lenders like Countrywide don’t usually own your loan. They take it and sell it into a pool of loans, which is usually a corporate entity set up solely for that purpose. Pieces of that pool or corporate entity are then sold to a whole bunch of investors, both directly as well as through mutual funds and other investment vehicles.
In other words, the mortgage modification process may have just gotten a lot more complicated for some people. And the only way around it would be for Congress to change the laws. If you have time to wait for that, though, you’re probably not reading this blog post.
House legislation would allow rentals of foreclosed homes (The Washington Examiner) – In the state of Washington, the legislature is considering a law that would allow banks to rent foreclosed homes. The idea is that they would rent the homes back to the homeowners, making everyone happy. However, opponents point out that the banks wouldn’t have any requirement to rent to the homeowners. In other words, this could just end up being a windfall for banks.
Frank Threatens Banks to Stop Foreclosures (AP) – In case you haven’t seen it, Barney Frank and some members of Congress have been putting pressure on the banks to do more to stop foreclosure. They’ve been doing this by threatening to bring back the “mortgage cram down” legislation. This would enable bankruptcy judges to reduce mortgage amounts in the course of the bankruptcy process (something that the bankruptcy court cannot currently do). This legilsation failed to pass previously. But it would be a huge help to homeowners and probably be the best way to enable homeowners keep their homes and avoid foreclosure.
Help Stop Foreclosure Las Vegas
If you’re facing foreclosure and are looking for bankruptcy information in Las Vegas, contact us for a free initial foreclosure consultation. We’ll help you figure out your best options, whether that means foreclosure mediation, filing bankruptcy in Las Vegas or a combination of the two.