Saturday, January 8, 2011

More ammunition for the homeowner in the foreclosure crunch.

A recent ruling in Massachusetts has given homeowners some relief against lenders who have purchased mortgages.  With the high rate of transfer of the loans, many banks cannot provide the proper documentations that the bank owns the loan.  If the bank cannot prove they own the loan, then it has no right to foreclose.  This is an important lesson to anyone facing foreclosure proceedings.  The bank must prove that it is in fact the holder of the note that your mortgage secures.  While experts are hailing this ruling as "groundbreaking" and "far-reaching", this fact has been well established in Kentucky for many years.  In fact, one of my first cases was an appeal for a homeowner where the bank had failed to produce the assignments showing it was the holder of the note.  The homeowner won when the bank failed to produce the documents.  Now it seems other jurisdictions plan to follow that precedent.

Experts predict less bankruptcies in 2011

Two sources are predicting fewer bankruptcies in 2011.  The Seattle Times says that filings were down in December 2010 from the same period a year ago.  The Wall Street Journal's Real Time Economics  Blog state that filings are at a five-year high but are expected to be lower in 2011 because consumers are carrying less debt.

Are business bankruptcies falling?

According to the Wall Street Journal and the Dow Jones Daily Bankruptcy Review, the number of Chapter 11 filings for businesses is on the decline.  According to the article, this is the first decline since 2005.  Is this a sign that the economy is turning around?

Which states saw higher bankruptcy filings?

This article in the Huffington Post  discusses states that have seen spikes in bankruptcy filings.  It looks like there is trouble in paradise.

Law School Problems

I remember being told of the value of a good education as I grew up. I was fortunate in going to law school and having a practice that I enjoy. However, these financial times have made the value of education questionable according to this article in the New York Times.