Monday, June 27, 2011


Greetings Readers:

I found some more information on the programs now offered by the State of California.  You can click on the links to take you to the State's programs.  Here is a description of what they offer.  If you need help applying please contact us and we might be able to help.

Unemployment Mortgage Assistance Program (UMA) – Intended to assist homeowners who have experienced involuntary job loss. UMA will provide temporary financial assistance in the form of a mortgage payment subsidy of varying size and term to unemployed homeowners who wish to remain in their homes but are in imminent danger of foreclosure due to short-term financial problems. These funds can provide up to six months of benefits with a monthly benefit of up to $3,000 or 100% of the existing total monthly mortgage, whichever is less.
Mortgage Reinstatement Assistance Program (MRAP) – Intended to assist homeowners who have fallen behind on their mortgage payments due to a temporary change in a household circumstance. MRAP will provide limited financial assistance in the form of funds to reinstate mortgage loans that are in arrears in order to prevent potential foreclosures. These funds can provide benefits of up to $15,000 per household.
Principal Reduction Program (PRP) – Intended to assist homeowners at risk of default because of an economic hardship coupled with a severe decline in the home’s value. PRP will provide capital to reduce outstanding principal balances of qualifying borrowers with negative equity. Principal balances will be reduced in an effort to prevent avoidable foreclosures and promote sustainable homeownership. The principal reduction program will most likely be a prelude to loan modification. (Servicers that contribute through matching funds increase the benefit for homeowners).
Transition Assistance Program (TAP) – Intended to promote community stabilization by providing homeowners with relocation assistance when it is determined that they can no longer afford their home. TAP will be used in conjunction with a servicer-approved short sale or deed-in-lieu of foreclosure program in order to help homeowners transition into stable and affordable housing. Homeowners will be responsible to occupy and maintain the property until the home is sold or returned to the servicer as negotiated. Funds will be available on a one-time only basis.

Saturday, June 18, 2011

You can file for Bankruptcy but it won't stop......

Dear Readers:  
Many of you know that under 11 USC, Section 362, which is commonly referred to as the "Automatic Stay" filing a bankruptcy can stop a foreclosure sale.  However, it may not work in some instances.  If you have previously filed a bankruptcy and/or the court issued an order lifting the stay its possible that the stay will only apply for 30 days or not apply at all.  
Your home is far too valuable to you to make a mistake.  Don't trust your residence with a real estate broker.  While there are many good ones out there, far too many of them make the mistake of filing a bankruptcy on your behalf unbeknownst to you so they can have more time to complete a short sale.  This often times is a huge mistake and will impact you negatively.  
Make sure the professionals you are using to help you save your home know this information.  I strongly recommend that you retain the services of a licensed Bankruptcy Attorney to make sure of what will apply to your situation.  
But what you might not know is that filing a bankruptcy won't stop any of the following (NOTE:  This is not an all inclusive list):
1.  Family law issues such as paternity lawsuits, requests for orders for domestic support and visitation and the dissolution of marriage (but only to extent it is not seeking to divide assets);  domestic support orders.
2.  Driver's license restrictions & Wage garnishments for domestic support obligations.  However, once you file a chapter 13, it is possible to negotiate with these agencies for a payment plan in bankruptcy to get the driver's license reinstated and stop the wage garnishments.
3.  The interception of a tax refund.  So note that if you are going to file for bankruptcy, make sure you already got your refund!
4.  IRS or Franchise Tax Board Audit, issuance of a notice of tax deficiency or a demand for tax returns;

5.   COMMERCIAL LEASES:  If your lease is expired, a bankruptcy won't stop eviction proceedings.
6.  As I said above, a FORECLOSURE if there is an order entered in Prior Two Years giving relief from stay.

7.   EVICTION JUDGMENT.  Note this is an important one.  If you have lost your house in foreclosure, you can stay the case if there has not been entered a judgment.  But if  Judgment has been entered, the Bankruptcy will not stay the Sheriff's lock out.  There are some exceptions where some local Sheriff's departments won't do a lock out in the face of a bankruptcy.
Call me if you need me!  Have a great weekend!