You have probably heard about this new mortgage to lease program that Bank of America is touting as the next solution to the foreclosure crisis that is again looming as many more Adjustable Rate Mortgages are coming due. Many people may find this option appealing, in general — to stay in the same home you were in, pay less per month and have the rest of the debt forgiven. However, it results in a worse solution for people than merely just walking away from the home, but allows the bank to continue to profit off of you. You will still have the credit hit of the foreclosure, and instead of living in the house without a house payment, you will be making a monthly payment to the bank. [Read more...]
Avoid Early Settlement of Your Claim
March 19, 2012 By Leave a Comment
I just had a consult with a potential client. During the conversation, the client informed me that she was being pressured to settle quickly by the opposing insurance company for merely her medical costs. In my experience, if you’re injured in an accident that was not your fault, you should not have to pay for anything — in fact, you probably have an additional claim to pay you for injuries, pain & suffering. [Read more...]
Student Loan Debt (Part 1) – Cause of Increase
March 19, 2012 By Leave a Comment
This is a multi-part post on student loan debt. Part one is about the cause of the increase in student loans. Part two is about the ramifications of the student loan debt. Part three offers some possible solutions to the problem.
For the last 14 years, student loan debt has rocketed. This increase in student loan debt is tied completely to the increase in tuition. Many commentators claim that this increase in tuition is due to the increase in costs of tuition, the required tuition expense, the costs of staffing and all of the other expenses that a college incurs. I fully disagree. [Read more...]
TaxMasters Files for Bankruptcy
March 19, 2012 By Leave a Comment
You probably know of TaxMasters. The company was constantly on the television advertising for tax settlement services. I remember one commercial where the advertisement had many testimonials claiming, “TaxMasters settled my ten million dollar debt for three cents.” Of course that is an exaggeration, but you know the type of commercials I am talking about. [Read more...]
Federal Government as New Landlord?
August 11, 2011 By Leave a Comment
According to an Associated Press article, the Federal Government through the Federal Housing Finance Agency is now collecting investor opinions on whether and how to begin converting the approximately 248,000 federally owned homes into rental properties. [Read more...]
The Daily Show and The Forecloser
August 10, 2011 By Leave a Comment
A few days ago, we did a posting on a homeowner who foreclosed upon a Bank of America Branch. The Daily Show picked up the story and here is the result:
United States Debt Rating Downgraded!
August 6, 2011 By Leave a Comment
This has to be some of the most significant news of our time. According to the Wall Street Journal in an article found here, Standard and Poor’s has downgraded the United States triple A debt rating. I cannot even fathom what the consequences of this action will be. It is completely unprecedented that an economy as large and once vital as the United States has defaulted on its loans.
One thing is for certain though, interest rates are likely to be increasing for every American on everything here. This is troubling and could possibly lead to further defaults on adjustable rate mortgages as those mortgages are reset with higher interest rates, rather than the lower ones that we have been experiencing lately. This would further strain the ability of the average American to make their payment obligations. All in all, this is terrible news.
On a separate note, I do have to respect the courage that Standard and Poor’s demonstrated by downgrading the United States’ debt rating. I believe that the failure of the ratings agencies such as Standard and Poor’s and Moody’s to properly grade the businesses that led to the overvaluation of many businesses leading up to the economic collapse of 2008.
Thank you for taking the time to read this article by bankruptcy lawyer Glenn Roethler. The views expressed in this article do not reflect those of all the members of Greeves, Price & Roethler, PLC.
Glendale’s Westgate City Center Facing Foreclosure
August 6, 2011 By Leave a Comment
Another major bankruptcy and foreclosure looms in Glendale, Arizona according to the Arizona Republic. Westate City Center, the development that anchors Glendale’s Hockey and Football arena’s is about to be foreclosed upon. Like many of my clients, the owners cite a terrible economy and uncertainty about the future of the Phoenix Coyotes.
For more information please find the article here.
Thank you for taking the time to read this post by bankruptcy attorney Glenn Roethler.
Arizona Foreclosures Delayed by Backlog
August 6, 2011 By Leave a Comment
The New York Times reports here that the foreclosure system is overwhelmed by the sheer number of houses waiting to be foreclosed upon. In states like New York the backlog would extend for 62 years at current rates of foreclosure. This, of course, is in states where foreclosure is a judicial action. In other states like California (and Arizona) where it is not a judicial action, that backlog is 3 years.
This certainly coincides with my experience as a bankruptcy attorney. As a firm we have had clients that have lived in their house waiting to get foreclosed upon for over five years. You read that right. Five Years. Of course, that’s an atypical case with most of our clients living in houses that they are surrendering for approximately a year. Further, bankruptcy further slows down the process of foreclosure as well. All of which gives homeowners much needed breathing room in this terrible economy.
As an aside, you may have recently heard that it is now what is termed a “seller’s market” in real estate. This mans that there is less than 3 months of inventory for sale currently. While technically true, I believe that this is not taking into account the stealth inventory that the banks have of houses that they are waiting to foreclose upon. You may ask why they are waiting, the primary reasons are that the banks do not want to own a house, risk the liability of injury, pay the HOA fees, or figure out a way to maintain the property. Finally, and primarily, I believe that the banks are waiting to foreclose because they know about the phenomenon of a seller’s market, which is supposed to increase house prices. In essence, they are trying to create a false market for the properties they need to sell, eventually. Just my 2 cents.
Thank you for taking the time to read this article by Tempe, Arizona Bankruptcy Lawyer Glenn Roethler. The views expressed in this article do not represent the views of all members of Greeves, Price & Roethler, PLC.
CEOs Wait Too Long To File Bankruptcy
August 6, 2011 By Leave a Comment
Reuters reports here that there is a fascinating new study out indicating that CEOs of business wait too long to file for bankruptcy. The thrust of the study indicates that bankruptcy is often the best way for a troubled company to reorganize and proceed forward. This is because bankruptcy is often expensive and requires capital that, if you wait too long, may be unavailable to the corporation in its time of best use.
In my experience, this has definitely been true. Filing bankruptcy is an embarrassing and very difficult decision, even for (and often especially for) business executives. It implies a failure, either real or imagined, of some sort. However, the truth is, that bankruptcy is a financial decision. There should not be any moral judgment attached to it. Unfortunately, creditors have perpetrated the belief that bankruptcy is a moral decision. It’s unfortunate, because bankruptcy can help in many difficult situation.
Thank you for taking the time to read this article by Tempe, Arizona bankruptcy attorney Glenn Roethler. The views reflected by this article are not necessarily held by all members of Greeves, Price & Roethler, PLC.
