March 7, 2009

Why Ohio Residents Should Hire a Bankruptcy Attorney

Ohio residents considering filing for bankruptcy should give serious thought to hiring an experienced bankruptcy attorney. Although it is possible to file your own bankruptcy petition, there are many risks to doing so and you will probably find that the peace of mind you get from having an attorney to guide you through the process is well worth the legal fees you pay. Some important reasons you should hire an attorney include:

1. Hiring an attorney is more affordable than you might think. Our firm charges a flat fee and offers payment plans to our clients so we can usually make arrangements that will work for just about anyone.

2. An attorney can protect you from creditor harassment. For example, once our firm is retained you can refer your creditors to us when they call. Our firm will field the phone calls from your creditors and verify that we have been retained to represent you. After this, your creditors will stop contacting you and, instead, contact our firm for progress updates on the filing of your case. Once your case is filed creditors are prohibited by federal law from contacting you. To some debtors distressed by relentless creditor calls at all hours, this relief from creditor harassment alone may be well worth the legal fees you pay.

3. Hiring an attorney will protect you from making mistakes. Your attorney will make sure you comply with the often confusing bankruptcy laws, requirements and deadlines so you do not risk having your case dismissed or your discharge denied. Certain aspects of the new Bankruptcy Abuse and Consumer Protection Act, such as the "means test," can be extremely difficult to navigate alone and even a little mistake can result in dismissal of your case.

4. Your Attorney will make sure your bankruptcy paperwork is completed correctly. Many people make incorrect assumptions about how to prepare their bankruptcy petition. One of the most common assumptions is that you simply leave out things you want to keep, such as car, instead of properly scheduling it. In fact, a mistake like this could actually result in loss of the car or even dismissal of your case. It is important to realize what you do not know and, unless you have a strong understanding of bankruptcy practices and procedures, you probably should not risk filing your own case.

5. You may have to go to court. In some instances a bankruptcy case will involve motions, such as a motion for relief from stay, that will be set for hearing before a bankruptcy judge. If you do not understand the motion, the customs and procedures of the court or the legal arguments necessary to protect your interests, you could find yourself losing your rights to property, money or your discharge. An experienced attorney can make sure this does not happen and can handle most routine hearings (other then your meeting of creditors) without you even needing to be present.

6. You will need to understand how bankruptcy procedures, such as reaffirming a debt, will impact your rights and responsibilities so you do not get yourself into trouble or undertake an obligation you cannot handle, which defeats the purpose of filing for bankruptcy protection. Additionally, if you do not properly prepare your paperwork then a judge may not approve your reaffirmation and you could end up losing property you wish to keep such as a house or car.

In summary, I believe most people will find that the time you save, the relief you will get from creditors and the peace of mind that comes with knowing your interests will be protected and your case will proceed smoothly will more than make up for the reasonable legal fees you will pay for an attorney to handle your case. If you would like to learn more about how an attorney can help, please feel free to contact our law firm for a free consultation.


Suit%20guy.jpg

January 17, 2009

Ohio May See Rise in Delinquent Mortgages in 2009 and Beyond

Ohio, like most of the nation, is likely to see an continuing rise in the number of mortgages in default in 2009. The Wall Street Journal reported that nationwide, the number of defaults is expected to rise from 4.67% in 2008 to as high as 7.17% in the fourth quarter of 2009. Adjustable rate mortgages are mostly to blame. Many of the notorious "teaser" rates that lured homeowners and new buyers in are expiring, causing the loan to adjust to a higher interest rate and a new higher payment that the homeowner can no longer afford. The Journal reported that there are a lot more loans that will reset in 2009 through 2011, so the level of defaults is likely to continue to climb for several years. Unfortunately, even when the economy rebounds it will take some time for consumers to respond. This is because even if business improves or an unemployed consumer finds a job, it will still take time to build up the funds to start repaying.

Mortgage%20Default.jpg If you are in an adjustable rate mortgage and are no longer able to make your payment there are options available. If you decide you are simply unable to afford the mortgage and your situation is not likely to improve, you can use a Chapter 7 bankruptcy to cancel the mortgage, return the house to the lender and end your responsibility for payments on the first mortgage as well as a second mortgage or home equity line of credit. If you have significant equity in your house and would like to keep it, but need a way to catch up on payments that have fallen behind and prevent foreclosure, a Chapter 13 bankruptcy will help. If you are behind on your mortgage or your mortgage has adjusted and you are no longer able to meet your payment you should contact an experienced bankruptcy attorney right away to discuss your options.

Add to Technorati Favorites

December 22, 2008

Is the Cleveland Housing Market Ready to Rebound?

There may be hope on the horizon for Cleveland homeowners. Cleveland, Ohio was cited in the November 2008 issue of SmartMoney Magazine as one of twenty-five major cities in the United States that is poised to see its housing market rebound. Part of the reason is that Cleveland "sat out" the skyrocketing home prices seen in other major cities across the U.S. that are now coming back to haunt those markets.

Cleveland ranked fifth on SmartMoney's list of twenty-five major cities. As the credit freeze begins to thaw, interest rates fall and people are once again able to refinance, there may be light at the end of the tunnel. Despite this positive news, however, Cleveland and Ohio are still experiencing a significant rise in the number of bankruptcies filed, which include many homeowners for whom this rebound comes too late and who were forced to abandon their homes (see prior entry Ohio is Not Alone: Bankruptcies Continue to Rise Across the Nation). If you are facing foreclosure or considering bankruptcy, be sure to contact an experienced attorney to learn your options.

Cleveland%20Flag.jpg

October 28, 2008

Ohio Homeowners, Answer the Phone, it’s Your Bank and They Want to Talk to You…

The Vice President of a Cleveland, Ohio based regional bank recently told a friend of mine that his bank had called thousands of Ohio homeowners who were behind on their payments to discuss their options. Out of these thousands of phone calls, only a handful of people even answered the phone! The reasons are obvious …fear, uncertainty, pride, and denial. Nobody wants to tell someone they can’t pay. Phone%20Call%20Girl.jpg

The reason I am sharing this story is to show you that, if you are falling behind on your mortgage, you are not alone. Remember, they were calling thousands of people just like you that, for whatever reason (and there are many), could not pay their mortgage. You may have been a victim of a predatory loan or a layoff. It doesn’t matter the reason, what is important now is that you don’t stick your head in the sand and ignore the problem because it won't just go away. You should talk to the bank or contact an attorney to speak on your behalf. The worst thing you can do is to ignore the problem and let your opportunity to fix the situation slip away.

Once you have fallen behind on your mortgage (usually by three months or more) your lender will consider you in default, accelerate your debt and commence foreclosure proceedings. Ordinarily, once the bank has determined they will foreclose they will stop accepting payments and will not reinstate your loan unless you come up with the entire past due amount plus any legal fees and costs they have incurred.

Even after a foreclosure is filed you have options. Many counties, such as Cuyahoga, have voluntary mediation programs in which you can elect to participate when facing foreclosure (you should receive a notice of the program with your foreclosure papers from the clerk of courts). A qualified attorney may also be able to help you negotiate a loan work out to reduce your interest or payments, but this is more easily done before you incur legal fees and expenses of foreclosure. Depending on your overall financial situation you may want to contact an attorney to explore a Chapter 13 bankruptcy which allows you to keep your house and catch-up on your past due payments while also lowering and eliminating your other debt through a structured repayment plan. If you are facing foreclosure, contact an attorney now to learn more about your options.

June 27, 2008

Ohio Homeowners Facing Foreclosure Should Seek Legal Advice: New Developments May Help

There is no denying that Ohio is facing a serious housing crisis and foreclosure filings in Northeast Ohio are at record levels. Unfortunately, many homeowners facing foreclosure simply abandon their home or surrender it to the lender. If you are one of the many facing foreclosure, then you should consult an experienced attorney to review your case and discuss your options before you give up your home.

If you are not yet in foreclosure but are behind on your mortgage, then you should also consult an attorney while you still have the most options available. However, even after the foreclosure has been filed, an attorney may find a basis to challenge the foreclosure action or be able to negotiate a resolution on your behalf. If these options do not work, a bankruptcy can also stop the foreclosure and may allow you to keep your home.

1020195_housing_crisis.jpg

One new defense for homeowners in foreclosure resulted from a ruling last October by Federal Judge Christopher Boyko in Cleveland. In October 2007, Judge Boyko ruled that a foreclosing lender had not filed the proper paperwork to support its right to foreclosure on fourteen Ohio homes (Judge Christopher A. Boyko, Opinion and Order, In re Foreclosure Cases, Case 1:07-cv-02282-CAB, U.S. District Court, Northern District of Ohio, Eastern Division, filed 10/31/2007 ). Previously, many courts let this slide and banks and lenders were often permitted to bypass the requirement to produce the original mortgage note by simply filing a "lost note affidavit" attesting that the original note could not be located and then proceed with foreclosure. Judge Boyko's ruling provides a basis for homeowners to challenge the lender's right to the security (your house) and potentially stay or stop the foreclosure proceedings if the lender cannot produce the original mortgage note.

Since Judge Boyko's ruling, several judges in other jurisdictions have followed suit and required lenders to produce the original mortgage note in order to proceed with their case. Due to the common practice of lumping mortgages together and selling them as mortgage-backed securities, many lenders are not the originator of the mortgage and are, therefore, unable to produce the original note, providing a basis to challenge the foreclosure. Notably, it has been reported that Ohio Attorney General Marc Dann is challenging the ownership of mortgage notes in as many as forty cases in Ohio.

If you are facing foreclosure you are certainly not alone. Foreclosures in Ohio rose eighty-eight percent in 2007. Recent developments in Ohio law as well as the increased willingness of lenders to resolve or "work-out" mortgage delinquencies make it more important than ever for homeowners to explore all of their options when facing the loss of their home.