Submitted by New Jersey Bankruptcy Lawyer, Lee M. Perlman. Bankruptcy debtors should not reaffirm a mortgage. Reaffirmation of debt in bankruptcy prevents the debt from being discharged, a process explained in greater detail by Kevin Gipson in Chapter 7 Bankruptcy and the Reaffirmation Agreement. Yet, lawyers continue to debate whether to reaffirm a mortgage, without […]
To Buy or Rent a Home? Weighing Which Is Better
Submitted by New Jersey Bankruptcy Lawyer, Lee M. Perlman Rob Austin and his wife, Natalia, have a 10-month-old son, healthy incomes and plenty of cash in the bank for a down payment on a house. But they are happily renting a townhouse in Pasadena, Calif., with no plans to buy for now, given the frothy […]
A Focus on Credit History for Mortgage Approvals
Submitted by New Jersey Bankruptcy Lawyer, Lee M. Perlman. Fannie Mae announced on Monday that it would soon start taking a longer view of consumer credit histories when evaluating mortgage applications, a change that could help some borrowers and hurt others. Beginning in mid-2016, Fannie Mae will require lenders to use what is known as […]
Fannie Mae Lowers Mandatory Waiting Period After Bankruptcy, Short Sale, & Pre-Foreclosure
Submitted by New Jersey Bankruptcy Attorney, Lee M. Perlman. Mandatory Waiting Period Reduced To 2 Years It’s getting easier to get approved for a mortgage. Following in the FHA’s footsteps, Fannie Mae has reduced the mandatory waiting period for a mortgage after bankruptcy, short sale, or pre-foreclosure. Borrowers no longer need to wait 4 years […]
Is It Better to Buy or Rent?
Submitted by Lee M Perlman, New Jersey Bankruptcy Attorney. Originally published in the New York Times. The choice between buying a home and renting one is among the biggest financial decisions that many adults make. But the costs of buying are more varied and complicated than for renting, making it hard to tell which is […]
Pitfalls of Reverse Mortgages May Pass to Borrower’s Heirs
By JESSICA SILVER-GREENBERG originally posted here Jim Wilson/The New York TimesIsabel Santos says she spends her evenings huddled over stacks of foreclosure notices on her parents’ home. The only solace for Isabel Santos as she spends her evenings huddled over stacks of yellowed foreclosure notices is that her parents are not alive to watch their […]
Loan Complaints by Homeowners Rise Once More
By JESSICA SILVER-GREENBERG and MICHAEL CORKERY Daniel Rosenbaum for The New York Times Wanda Darden, at home in Riverdale, Md. Her mortgage has bounced among three loan servicers, leading to increasing mix-ups. “I either get conflicting answers or no answer at all,” she said. A growing number of homeowners trying to avert foreclosure are confronting […]
The American Housing Market in a Microcosm – 12204 Backus Drive in Bowie, MD
The Tale of a House, and an Entire Market By SHAILA DEWAN and CATHERINE RAMPELL The history of 12204 Backus Drive in Bowie, Md., is in many ways the history of the American housing market over the last two decades. This four-bedroom home in Bowie, Md., has sold several times since 1990, at […]
Help for Some Sandy Victims
Originally published in The New York Times By LISA PREVOST Published: October 31, 2013 A temporary change in a federal loan program for the rehabilitation and repair of houses may provide a new option for financing repairs to homes damaged a year ago by Hurricane Sandy. The Federal Housing Administration’s 203(k) loan program covers purchase […]
Why You Shouldn’t Reaffirm a Mortgage in Bankruptcy
I recently got a phone call from a client. She got a letter from her mortgage company giving her the “opportunity” to reaffirm her mortgage. She wanted to know whether she should do this. I told her, “Absolutely not.” In the overwhelming majority of cases, it makes absolutely no sense to reaffirm a mortgage debt. […]
