Recognized for Excellence in Bankruptcy – Your Financial Life-Saver TM
Posted by Ryan Blay on February 10th, 2012 in Foreclosure - Saving Your Home, Mortgage Foreclosure Defense, Mortgage Modifications, Wisconsin
As of now, there has been no news from Illinois about the mortgage foreclosure settlement and how funds would be distributed. However, Wisconsin’s Governor, Scott Walker, and the attorney general, J.B. Van Hollen, have announced that $25.6 million of the $31.6 million received would go to fix the budget deficit instead of helping homeowners.
When the states received tobacco settlement money years ago, many states elected to do the same thing. In this case, however, the issue is not one of compensating smokers. After all, paying smokers or the victims of deceased smokers would do little to stop smoking or solve the outbreak of cancer and other health concerns that smoking caused. Paying homeowners, however, or writing down principal on mortgages to reflect the fair value of properties would absolutely have done more for the economy.
Instead of suddenly becoming tight-fisted, allowing homeowners to break even on homes instead of remaining underwater would arguably do more to stimulate spending and restore consumer confidence in homebuying. Instead, the foreclosure crisis will most likely lead to more lost houses and depressed home values until the market bottoms out. This could take years. This certainly won’t be good news for homeowners looking to refinance, to borrow from home equity, or to sell their homes (rental, vacation, or homestead) in the next few years.
Will other states follow Wisconsin’s lead and funnel the money into fixing a budget deficit or attack the foreclosure problem directly by paying down principal and encouraging modifications to stop foreclosures and save the homes of their residents? What role will this have in the upcoming recall elections? Stay tuned for more.
Posted by Ryan Blay on February 9th, 2012 in Foreclosure - Saving Your Home, Illinois, Mortgage Foreclosure Defense, Mortgage Modifications, Wisconsin
Today a national mortgage settlement was announced with five of the country’s biggest servicers: Ally (GMAC), Bank of America, Citi, Chase and Wells Fargo. A website was even created to answer some of the most basic questions – and direct the rest of your questions to the servicers. So if you have questions about what relief you are supposed to receive – call the parties that committed the robosigning and other bad acts in the first place!
What this means for homeowners who are still suing these lenders and servicers is unclear. The settlement terms supposedly allow lawsuits against the servicers and the mysterious MERS Corp., allow criminal actions against the servicers, send some money to foreclosed borrowers from January 1, 2008 through December 31, 2011, and provide money to the states for principal reductions on first and second mortgages.
What are your thoughts? Is the $25 billion received in the settlement enough? Will the nationwide servicing standards actually be enforced against the servicers if they continue to improperly foreclose? Will homeowners who lost their houses due to unethical and possibly illegal activity ever get compensated? Will the money to help write down some mortgages slow or stop the ongoing foreclosure crisis? Only time will tell. But don’t let this news stop you from calling us at (866) LAKELAW or (262) 694-7300 in Wisconsin if you are still facing foreclosure or have questions about your mortgage and other debts.
Posted by Ryan Blay on December 19th, 2011 in Bankruptcy Information, Chapter 13, Foreclosure - Saving Your Home, Illinois, Mortgage Foreclosure Defense, Mortgage Modifications, Uncategorized, Wisconsin
While each bankruptcy case is different we attorneys at Lakelaw see a common theme among many bankruptcy filers: the threat of losing a home in foreclosure. This post tries to explain some of the options debtors have when facing foreclosure.
The first question anyone must answer is whether or not to try and save the home. Someone wishing to walk away from their home without a final foreclosure could have two options: Attempting a Deed in Lieu of Foreclosure or agreeing to a Short Sale
In a Deed-in-Lieu, the offer is to give the home back to the bank to stop the foreclosure. However, mortgage defense attorneys have not seen much success with this lately. Due to so many homes already foreclosed (and those that are still going to be foreclosed on any day now), banks are often refusing to accept a Deed in Lieu of Foreclosure.
A second is a short sale. A short sale involves a homeowner, with the help of a realtor, finding a buyer who is willing to buy the home at a reduced value. The bank would then have to agree to waive the difference between what the home sold for and what was owed—the deficiency—or the homeowner would have to bring money to pay the difference at closing. Banks like the idea of having a waiting buyer instead of waiting through months of foreclosure, but they do not like the idea of walking away from the deficiency amount.
What if you want to try and keep your home? If you and your bank are working well with each other, a home modification could be an option. The bank would be willing to work with the borrower and try to find a payment plan that works. It should be noted that the Wisconsin branch of Lakelaw has seen some promise in mortgage modification within the Chapter 13 modification program set up in the Eastern District of Wisconsin bankruptcy court).
Another option is Chapter 13 Bankruptcy. This may be the best option a debtor has to save their home. When the debtor files a Chapter 13 bankruptcy an automatic stay goes into place. This means the bank must stop the foreclosure and the borrower can stay in the house as long as they are making payments to the trustee and a payment to the mortgage company after the bankruptcy filing. The goal is to find a way to cover the regular monthly mortgage payment plus an additional amount to catch up on the arrearage. A Chapter 13 bankruptcy is a difficult process and is different for each person, so it is always best to speak with an attorney about your particular situation.
If you have questions about saving your home, the professionals at Lakelaw are here to help. We serve our clients with Care, Kindness, Courtesy, Respect, Professionalism and Dedication. We can be reached at 1-800-LAKELAW in Illinois and 262.694.7300 in Wisconsin. Give us a call so we can help you with your finances and your home.
This post was drafted by Attorney Nicholas Strom
Posted by Ryan Blay on June 28th, 2011 in Foreclosure - Saving Your Home, Mortgage Foreclosure Defense, Mortgage Modifications, Wisconsin, Foreclosure, Kenosha, mediation, Mortgage, Racine, Wisconsin
Lakelaw has mediation experience. In 2009, Lakelaw became the only private law firm in Wisconsin to receive funding from the Wisconsin Housing and Economic Development Authority (WHEDA) to fight foreclosures. We’ve done so by advising clients across the state about their legal rights and responsibilities, presented training sessions throughout Wisconsin to other attorneys, and attended dozens of mediations in Milwaukee and Waukesha County on behalf of local homeowners.
When the United States Bankruptcy Court for the Eastern District of Wisconsin was creating a pilot program with similar guidelines, they asked that Lakelaw appear along with other law firms providing guidance on the language and structure of the program.
Lakelaw focuses on two main avenues of financial freedom: consumer bankruptcy and foreclosure defense. Lakelaw can provide separate guidance on fighting the foreclosures. We can also appear on your behalf at the Kenosha/Racine mediations, providing advice and guidance through a complicated process against local and national banks.
Please visit our website at www.lakelaw.com, or call (262) 694-7300 to learn more about us and our values. We have two convenient Wisconsin offices to serve you.
Lakelaw
6905 Green Bay Road, Suite 101
Kenosha, WI 53142
On Green Bay Road in Kenosha, just north of Route 50.
Lakelaw
740 North Plankinton Avenue, Suite 210
Milwaukee, WI 53203
In the River Bank Plaza Building between Wells and Wisconsin,
Located near the Shops at Grand Avenue
Posted by Ryan Blay on March 24th, 2011 in Foreclosure - Saving Your Home, Real Estate
1. Lakelaw believes homeowners should be treated with kindness, courtesy and respect – and that core belief does not end when it’s time to get on the phone with your mortgage company. The rudeness and lousy customer service that mortgage companies across the country use would put any small company out of business. But it’s typical of our nation’s biggest servicers, and there’s very little ability to say goodbye and take your mortgage to a business with better customer service. That means lies and misleading statements about ongoing litigation, modification attempts, and questionable accounting practices.
2. Property taxes are the hidden culprit in many foreclosures. Counties are bleeding money, so they have no choice but to raise property tax rates. Because property values are plummeting, the tax revenues fall, and next year’s rates are even higher. This vicious cycle won’t end until the foreclosures stop and property values can go back up on their own. Why are you paying the same for your $100,000 house as you were 3 years ago when your house was worth $150,000? A very good question to ask as you plan your budget.
3. On top of property taxes, the true cost of home ownership is the principal, interest, and homeowner’s insurance. If this amount in total is too large, the rest of your budget will fall apart and you’ll be forced to borrow money through a retirement plan early withdrawal, credit card advances, payday loans, and title loans. There is a reason that the government’s Making Home Affordable program set a target of 31% of gross income to cover principal, interest, taxes & insurance (PITI). If your payment is hovering around 50% of your gross income, it is eating up too much of your budget and you won’t be able to save or set money aside. Maybe it was affordable before the pay cut, or before a loss in hours. But your home is supposed to be a place to feel secure and enjoy ownership, not to worry every minute about borrowing from family and friends to keep above water.
Posted by David Leibowitz on January 21st, 2011 in Bankruptcy, Chapter 13, Chapter 7, Foreclosure - Saving Your Home
Just because you file a bankruptcy case, you don’t necessarily lose your house in bankruptcy. There are several considerations;
If you are not behind in your mortgage, you can file a bankruptcy, even in chapter 7 if you are eligible, keep on making the payments on your house and stay in your house as though nothing ever happened.
If you are behind in your mortgage, or even if you are in froreclosure, you can file a chapter 13, stop the foreclosure, catch up on the mortgage payments, and even fight the mortgage company’s claim in some cases.
If you can’t catch up, and even if you are in foreclosure, bankruptcy will slow down the foreclosure for a little while. An Illinois mortgage foreclosure takes almost a year to complete from start to finish. So you probably will have enough time to get ready to move to another residence if you have to file a bankruptcy case in Illinois.
If you are in trouble with your home mortgage and thinking about bankruptcy, contact the experienced attorneys at Lakelaw. We have the answers to all your questions.
And for more information, visit our Mortgage Defense and Modification pages at lakelaw.com
Posted by Ryan Blay on April 14th, 2010 in Foreclosure - Saving Your Home, Mortgage Foreclosure Defense, Mortgage Modifications, Not for Profit Organizations, Real Estate, Wisconsin
Sometimes when you need the most help, it seems like nobody is willing to take the time and make the effort to assist. In foreclosure, the mortgage companies often tell their customers that they won’t even consider modifications unless they are months behind. The largest law firms won’t help because they are too busy profiting from the foreclosure fees given to them by the biggest lenders. Who does that leave to fight the good fight (besides Lakelaw, of course)?
One such agency is Housing Resources, Inc. You can visit their website at http://www.hri-wi.org/ or call them at 262-636-8271. HRI can assist first time homebuyers, and they can assist those struggling through higher than expected mortgage payments, losses of income, and other problems faced by Wisconsin residents in the tough times.
HRI is a chartered member of NeighborWorks and is one of the few Southeastern Wisconsin locations approved by the Wisconsin Housing and Economic Development Authority to refer homeowners facing foreclosure to Lakelaw for limited free assistance with mortgage woes. They have a dedicated staff and value privacy. They have specialists who speak Spanish as well, to ensure that nobody in the community should feel left out.
When foreclosure looms, there are multiple options. You can always dial 262-694-7300 and call us at Lakelaw to speak about using bankruptcy and legal defenses to foreclosure to fight the mortgage companies. You can also call HRI and other counseling agencies to speak with trained specialists to discuss modifications, re-finances, and new rules that impact homeowners such as US Treasury Supplemental Directive 10-02 designed to ease the foreclosure crisis.
At Lakelaw, an agency dedicated to keep people in their homes instead of kicking them on the streets is a friend of ours and we are proud to support their tireless efforts.
And Housing Resources, Inc. can refer you to Lakelaw where you can also get some free legal advice to help you address your mortgage problems, thanks to a grant from the Wisconsin Housing and Economic Development Administration – WHEDA. For more information about this program, visit www.wisconsinforeclosureresource.com
Posted by David Leibowitz on April 6th, 2010 in Alternatives to Bankruptcy, Foreclosure - Saving Your Home, Wisconsin
If you are facing foreclosure in Wisconsin, you’re not likely to suffer a deficiency judgment even if your house has lost a lot of value. What’s a deficiency judgment? That’s a judgment against you for the difference between the amount owed on your mortgage and the value of your house. So many home-owners find themselves “upside-down” – the value of their homes are less than their mortgage. They don’t see any reason paying for something worth less than it is worth. They don’t think of their home as a wasting asset. So they stop paying on their mortgage. It may be cheaper for them to rent.
Foreclosure is not a good thing. You will lose your home. You’ll have to move. But you probably won’t have to pay a big judgment to the mortgage company. That’s because in Wisconsin, the lender on residential real estate has a choice of waiting 12 months from the time the foreclosure case starts before the foreclosure is complete or 6 months. If the lender selects the 6 month waiting period, which is almost always the case, the lender must give up any rights to a judgment for the difference between the loan and the value of the home – the deficiency judgment.
So if you face foreclosure in Wisconsin and that’s your only big debt, you at least may be able to avoid the need to file for bankruptcy.
Call us at Lakelaw to discuss your options – we’re at 262 694 7300 and we help people with mortgage foreclosure and bankruptcy throughout the State of Wisconsin.
Posted by David Leibowitz on December 10th, 2009 in Chapter 13, Foreclosure - Saving Your Home, Mortgage Foreclosure Defense, Mortgage Modifications
Today I heard about a couple’s predicament: They just had their second child. Mom is staying home. So the couple went from a two-income household to a one income household. However, they did not go from a two-mortgage home to a one-mortgage home at the same time! As a result of the blessed event, they also faced big credit card and medical debts. What to do?
Well, they could file a chapter 7 bankruptcy – if they qualify through the means test. Their previous six-months income was still high, but that would change within a short period of time. They could also try to defeat the presumption they are abusing the system by showing the permanent change in their income since Mom is staying home with the kids.
This would eliminate a lot of debt, but not the debt that’s giving them the most headaches: Their second mortgage. It’s a high interest home equity loan. And the house is worth even less than the first mortgage. So we discussed Chapter 13 as an option.
Despite the huge influence banks have over Congress, the bankruptcy laws still allow a couple to eliminate the second mortgage in the Chapter 13 if the house is worth even less than the first mortgage. This is fantastic news for our couple because they can stop paying their second mortgage, and pay their chapter 13 Plan instead. That plan will mean that those creditors will be old news in 5 years, and so will that pesky second mortgage. It may seem counterintuitive – paying more money saves you more money? But sometimes that’s just the way it works out.
For financial relief in Kenosha, Racine, Walworth or Milwaukee, call Lakelaw today at 262.694.7300 and ask for Attorney Ryan Blay or David Leibowitz.
This post was written by Ryan Blay, Supervising Attorney in Lakelaw’s Kenosha office.
Posted by David Leibowitz on April 7th, 2009 in Foreclosure - Saving Your Home, Mortgage Modifications, Uncategorized, Foreclosure, Mortgage Modification, Servicers
It’s not easy to contact a mortgage servicer. They say they want to help you get a loan modification agreement. But first, you have to find them. Here’s a handy list of phone numbers. Hopefully, this will help you on your way. And if you need more help, call Lakelaw at 1 866 LAKELAW instead of the mortgage modification company scammers that the United States Department of Justice and Attorneys General around the company are trying to shut down
HOW TO REACH YOUR MORTGAGE COMPANY
Phone: 800-848-9136 (Mortgage)
Phone: 800-836-5656 (Home Equity)
Phone: 510-652-0401
Web: https://chaseonline.chase.com
These numbers and the identities of the banks and mortgage companies are changing every day. If you find out any updates, please let us know and we will post them here.
Illinois Lawyer David P. Leibowitz handles business law, estate planning, probate, asset
protection, consumer bankruptcy, business bankruptcy, real estate, elder law, guardianships, identity theft, consumer protection, commercial collections and foreclosure defense matters from Chicago to Milwaukee with offices in Chicago, Skokie, Waukegan, Milwaukee and Kenosha.
All Rights Reserved - lakelaw.com - 2012 - Sitemap | Legal | View Mobile Site | A Law Firm Web Design by PaperStreet
The Supreme Court of Illinois does not recognize certifications of specialties in the practice of law. Certification is not a requirement to practice law in Illinois. Disclaimer.
