Tag: underwater

Strategic Debt Restructuring


Strategic Debt Restructuring

By: Jim Macklin
Secure Document Research

How many property owners in this country experienced the flush of “money for nothin’ and kicks for free” during the build-up to 2008? Champagne, boats, leisurely weekends at the lake all came part & parcel to those who were able and willing to leverage themselves at the urging of their local and national banks.

Obviously, those days were hazy and fast-paced for those caught up in the whirlwind of easy money provided by Wall St. and the MBS profits. I can still see the faces and attitudes of the mortgage brokers, loan officers and title company agents who were suddenly the darlings of the communities across the U.S.

Continue reading “Strategic Debt Restructuring”

in RE Crawford – No Chapter 13 Payments Required

in RE Crawford – No Chapter 13 Payments Required

By Daniel Edstrom
DTC Systems, Inc.

Thanks to Deontos for this case.  The property is not underwater and the debtor has agreed to pay all claims upon sale of the property in a reasonable time.  Until the property is sold, no payments will be made on the loan.  Plan approved by the bankruptcy judge.

Excerpt 1

The central question in this case is whether a Chapter 13 plan is confirmable where (a) the plan provides for payment in full of a first-mortgage lienholder upon sale of real property in which a debtor has substantial equity, but (b) where the debtor fails to provide for regular payments during the life of the plan. Put another way, may a debtor’s plan be confirmed where the debtor makes no regular payments through the plan, but, instead, makes payment, in full, to all creditors – secured an unsecured – upon sale of her real property under the plan, which property is valued far in excess of all creditors’ claims – secured and unsecured. Continue reading “in RE Crawford – No Chapter 13 Payments Required”

Hundreds of Years of Title Destroyed in a Decade and a Half

Hundreds of Years of Title Destroyed in a Decade and a Half

By Daniel Edstrom
DTC Systems, Inc.

Neil F. Garfield, Esq. just posted the following article:

TITLE CRISIS: EVEN IF YOU PAID CASH FOR YOUR HOME, TITLE STILL IN DOUBT — and you could be “underwater”

Posted on June 18, 2011 by Neil Garfield

What nearly everyone is missing is that any property that was mortgaged at any point in the last 15 years may have serious title defects.  Here is the scenario:

  1. A house is purchased or refinanced with a mortgage
  2. At some point in the future the house is refinanced again or sold
  3. A title company sends a payoff amount to “an entity”
  4. “An entity” issues either a substitution of trustee and full reconveyance or a full reconveyance (or other type of document used to release the loan)
  5. Repeat ad nauseum (or this only happened one time) Continue reading “Hundreds of Years of Title Destroyed in a Decade and a Half”