COLLECT LEARN EXCEL Working Foreclosures Kendall Tierney President

COLLECT LEARN EXCEL Working Foreclosures Kendall Tierney President, GRCA

COLLECT The Language of Foreclosure LEARN • • EXCEL Varies by state Strict Foreclosure Deed in Lieu of Foreclosure Judicial vs. Non-Judicial Short Sale Trustee Sale Redemption

What should I ask? • What stage of foreclosure is the home in?

What should I ask? • What stage is the foreclosure in? • What options have they explored?

COLLECT LEARN EXCEL Making Home Affordable • Loan terms may be modified by reducing payments for distressed borrowers • Refinancing is intended to help owners who are current on payments, but have little or no equity in their home • Loans can be modified only one time • To be eligible, your loan must be owned or guaranteed by a government-backed mortgage company such as Fannie Mae or Freddie Mac

COLLECT LEARN EXCEL Making Home Affordable • Plan starts immediately and is strictly for primary residences that are not vacant or condemned • There are no fees for this type of loan modification • Modification plan ends on December 31, 2012 • www. makinghomeaffordable. gov

What should I ask? • What stage is the foreclosure in? • What options have they explored with their lender? • Are they planning to file bankruptcy?

COLLECT LEARN EXCEL Foreclosure and Bankruptcy • Chapter 7 bankruptcy does not prevent foreclosure • Equity • Chapter 13 can prevent foreclosure • Post-petition debt • Loan modifications made by judges

COLLECT How Might Modifications Work? LEARN EXCEL • Amends Bankruptcy Code section 1322(b) • What are the rules?

COLLECT LEARN EXCEL An Example Under the current Chapter 13 laws: Parker, Chip. “How Will Mortgage Modification Work under the New Bankruptcy Law? ” www. bankruptcylawnetwork. com.

COLLECT LEARN EXCEL An Example Under the proposed Chapter 13 laws: Parker, Chip. “How Will Mortgage Modification Work under the New Bankruptcy Law? ” www. bankruptcylawnetwork. com.

What should I ask? • What stage is the foreclosure in? • What options have they explored with their lender? • Are they planning to file bankruptcy? • Does my government have a lien in place?

COLLECT LEARN EXCEL What About My Judgment? • Deficiency judgments • First position v. Junior position • When a Junior lien holder forecloses • Do I need a new judgment?

What should I ask? • What stage is the foreclosure in? • What options have they explored with their lender? • Are they planning to file bankruptcy? • Does my government have a lien in place? • What do I do now?

COLLECT LEARN EXCEL Determine Property Ownership • What is the importance of the trustee sale date? – Homeowners are responsible for the property until the sale date – Trustco Bank, National Association v. Eakin (681 N. Y. S. 2 d 410) • What is the importance of having the deed recorded by the new buyer?

The debtor says… • My house is in foreclosure. • I gave my house back in the bankruptcy. • I lost the property in foreclosure. • The bank kicked me out.

Thank you for your attention. Kendall Tierney 877 -724 -GRCA Kendall. tierney@govcollect. org