Tag Archives: Bankruptcy

The Federal Housing Administration (FHA) is allowing borrowers who went through a bankruptcy, foreclosure, deed-in-lieu, or short sale to reenter the market in as little as 12 months, according to a mortgage letter released Friday. In order to be eligible for the more lenient approval process, provided documents must show ""certain credit impairments"" were from loss of employment or loss of income that was beyond the borrower's control. Additionally, borrowers must demonstrate they have fully recovered from the event that caused the hardship and complete housing counseling.

The Barrett Daffin Frappier Turner & Engel family of law firms has reacquired National Default Exchange (NDeX), NDeX Title, and NDeX West from the Dolan Company. The deal puts the law firms of the BDF Law Group in direct and complete control over their entire operations. Dolan's decision to shed the NDeX assets is in line with the company's plans to move into specialized business technology for law firms and away from business processing and back office services.

While 22 percent of Americans admitted they have never checked their credit report, nearly a quarter said they have encountered issues with their credit report, with incorrect or outdated negative marks leading as the main type of problem, according to a recent FindLaw. Overall, 23 percent of Americans said they have had a problem with their credit report, and 10 percent of problems were related to incorrect or outdated information about their credit history, such as delinquency payments, payment history, collection actions, court judgments, and bankruptcies.

Residential Capital (ResCap), Ally Financial's former mortgage subsidiary, announced Thursday it had filed a motion with the U.S. Bankruptcy Court for approval of the previously announced agreement with Ally and ResCap's major creditors. Under the plan support agreement announced mid-May, Ally will contribute $2.1 billion to the ResCap estate to settle any and all claims between ResCap and Ally and potential claims held by third parties in relation to ResCap.

Ally Financial Inc. announced an agreement that settles any existing and potential claims from Residential Capital--its bankrupt mortgage subsidiary--and ResCap creditors, according to an announcement Tuesday. The plan ""fully releases Ally from any claim,"" including representation and warranty claims, that could be brought on by ResCap and its third parties, but makes an exception for securities claims by the Federal Housing Finance Agency (FHFA) and the Federal Deposit Insurance Corporation (FDIC), a release stated.

In a notice Thursday, Freddie Mac encouraged servicers to prepare for new requirements for default-related legal services that will take effect in less than a month. Under the new requirement, Fannie Mae and Freddie Mac servicers must select qualified law firms by June 1 to handle all new referrals of default-related legal services, such as foreclosures, loss mitigation, bankruptcy, and related litigation.

The Law Offices of Clunk, Hoose and Associates, PA announced the opening of a new full-service office in Hollywood, Florida. Firm partners John D. Clunk and Robert R. Hoose, along with attorney Shan P. Massand, will lead the new practice, which aims to bring cost-effective default management services to lenders and servicers in the South Florida market.

Prommis Holdings Inc., along with 10 of its affiliates, filed for Chapter 11 bankruptcy protection in U.S. Bankruptcy Court in Delaware. Bloomberg first reported the story Monday and revealed the company listed debt of more than $50 million and assets of as much as $50 million in the filed documents. Prommis provides technology-enabled processing services for the default resolution sector of the mortgage industry.

The American Dream of homeownership has been resurrected among strategic defaulters, a foreclosure agency stated in a recent report. After surveying previous clients, YouWalkAway.com found nearly 80 percent expressed a desire to purchase a new home again within the next 12 months. YouWalkAway.com explained it's common for previous customers to desire homeownership since interest rates are low and home buying lessons have been learned.

According to data from the Warren Group, Chapter 7, Chapter 13, and Chapter 11 bankruptcy filings in Massachusetts saw double-digit decreases year-over-year in 2012. Bay State Chapter 7 bankruptcy filings decreased 18 percent over a one-year period after numbering 11,964 in 2012, down from 14,716 in 2011.