Foreclosure Law Office of Matthew A. Dunaway Attorneys Birmingham Alabama

Foreclosure

Foreclosures and Voodoo Accounting Put Banks at Risk
Posted by: Matthew Dunaway
March 18, 2008

In the March 24, 2008 issues of BusinessWeek, Mara Der Hovanesian has an excellent article revealing the precarious position many banks and lenders have put themselves in by hawking exotic mortgage products, such as option-arms to consumers and homeowners. Hovanesian details the shady accounting of many mortgage lenders which makes their earnings look better than they actually are. But as we've seen with the Countrywide debacle, accounting can cover-up for only so long, eventually the numbers don't lie. Banks, mortgage companies and lending institutions have been having to write down billions of dollars in defaulted mortgages, so much so, that the banks are now in danger of not having enough funds in reserve to cover such losses. This is bad...really bad; ala Bear Stearns bailout

Sub-prime Foreclosures and Credit Crisis bring down Wall Street's Bear Stearns
Posted by: Matthew Dunaway
March 17, 2008

The fallout from the sub-prime mortgage debacle, which has lead to rampant foreclosures in Alabama and througout the U.S., has taken it's tole on a Wall Street icon, Bear Stearns. Over the weekend, J.P. Morgan, with help from the Fed, agreed to buyout (save from bankruptcy) one of their own. How did Bear Stearns go from a high powered 85-year-old Wall Street institution to being saved from bankruptcy by the government and it's Wall Street neighbor? In short, hubris. Bear Stearns continued to bet big on sub-prime lending and the mortgage boom, even when other banks and investment firms were bracing for the coming mortgage crisis.

Stemming the rising tide of Foreclosures in Alabama
Posted by: Matthew Dunaway
March 12, 2008

As the mortgage crisis continues and foreclosure rates continue toincrease, different solutions to the problem have been suggested. A recent article in The Economist sets out both the problem faced by homeowners and potential solutions. As home prices continue to decline and adjustable rate mortgages begin to squeeze homeowners, many consumers have decided to simply turn their keys back in to the mortgage company and face foreclosure and many times eventually bankruptcy.

Alabama Mortgage Crisis Increases Foreclosures
Posted by: Matthew Dunaway
March 11, 2008

The fall in home prices teamed with the contraction of lending standards by banks has posed great difficulties for those with good credit histories. According to economists, many people are missing the deadline on their payments on credit cards, auto loans and most importantly home loans.

Stop Birmingham Foreclosure by filing Chapter 13 Debtor's Court
Posted by: Matthew Dunaway
August 02, 2007

Many homeowners are not aware that if they are facing foreclosure, they may be able to stop the foreclosure sale by filing Chapter 13 Debtor's Court. In today's real estate market, this is very important to understand. Mortgage companies continue to increase the burden on homeowners with the exotic mortgage products they have peddled over the last several years, suchas adjustable rate mortgages, option-arms, interest only loans, and negative amortization loans.

Home foreclosures are at an all time high in many states. Although Chapter 13 Debtor's Court may not be the best solution for a consumer who has little to no equity in his home and who is facing rising interest rates, courtesy of an adjustable rate mortgage (ARM), it may be a good option for the homeowner that has substantial equity in their home and is able to catch up on mortgage payments given some time. This, in essence, is what Chapter 13 Debtor's Court does for the homeowner; it gives him time to catch up on the payments.