Category: Debt

Beware of Cross-Collateralization when dealing with Credit Unions

A cross-collateralization clause makes the collateral that secures the car loan (the car) serve as collateral for all loans the credit union has made or will make to you. This transforms any unsecured debts that you have with that credit union (i.e., a credit card) into secured debt. It is often the case that the debtor has no idea that this cross-collateralization exists until after default or during

When is the right time to file for Bankruptcy?

When to file for Bankruptcy? This is one of the most frequently asked questions that my clients need answering. The truth is, like most answers to legal questions, it depends... Creditor Harassment / Collection Calls: If the primary force driving you to file for bankruptcy is harassing phone calls, letters, and e-mails from your creditors,

Homeowners are Sinking Deeper Underwater

According to a recent Bloomberg article, more than 28 percent of U.S. homeowners owed more than their properties were worth. This is in the first quarter of 2011. This was the biggest drop in U.S. home values since 2008. Home prices fell approximately 3% in the first quarter of 2011. And, they are expected to

Can a Mediation Save your Home from Foreclosure?

In 2009, Florida Supreme Court issued an order mandating foreclosure mediation for all residential homesteaded properties. In other words, upon filing a foreclosure action on a primary residence, the banks now have to attend mediation with the borrower. This is before the case can proceed, or at least provide the borrower with the option. Under

What are the alternatives to Bankruptcy?

Believe it or not, there are some alternatives to bankruptcy. Your right to file for bankruptcy and discharge your debts is a very important and very powerful right. It can only be used once every 8 years and should not be exercised unless absolutely necessary. The general rule of thumb for deciding whether you should

What Happens to my 2nd Mortgage/Home Equity Loan in Ch. 7 Bankruptcy?

Many clients are concerned with what will happen to their second mortgage (also referred to as a Home Equity Loan, Home Equity Line of Credit or HELOC) during and after Chapter 7 Bankruptcy. What is Second Mortgage? In general, second mortgages or HELOCs are loans that property owners get. The value of the property above

Effects of the Foreclosure Crisis on South Florida Home Prices

The following is a series of charts organized by county showing the declining (in most cities) median listing prices for homes in South Florida. Moreover, they show the effects of the foreclosure crisis. MIAMI-DADE COUNTY Aventura Bal Harbour Aventura Zillow Home Value Index Aventura Home Values - Interactive chart Bal Harbour Median List Price Bal