FORECLOSURE AND PREDATORY LENDING

Southern California Bankruptcy Laws

The market has changed.  From 2000 to 2005, anyone that came into our office seeking bankruptcy help but owning real estate, generally was advised not to file for bankruptcy protection.  This was because they almost always had too much equity in their property and would lose it should they file.  So instead, a refinance was in order, money was then pulled out, and the personal debt was traded for a higher mortgage.  However, this only works in an appreciating real estate market where money is still available for loans.

Things have now changed.  The money is no longer available by lenders for a refinance.  Many lenders themselves now have filed for Bankruptcy.  Interest rates have increased.  Most people have exploding option adjustable rate mortgages where payments nearly double after 2 to 5 years.  The home values are dropping.  Its the "Perfect Storm" for real estate bankruptcy.

Nowadays, more than 70% of our bankruptcy clients have real estate and nearly all of them are letting their house go.  And its not their fault!  They are victims of the housing bubble and predatory lending (please see Attorney Ken Andrews real estate site at www.sandiegopredatorylending.com.  Many of the loans these people have are Illegal!  So generally the best option for the homeowner is surrender.  This is primarily because the home that is costing $4000 per month (first mortgage, second mortgage, HOA, taxes, insurance, etc) can easily be rented for $2000.  Its a no brainer.  Why keep a home when you can rent the same home in your neighborhood paying 1/2 the money, which has little if no equity, which has an interest rate that is only going up, and which is generally a maintenance and upkeep money pit?

When we see these situations, we engage our "Housing Rehabilitation Program" to help clients recoup what they may have lost as a result of predatory lending and the housing bubble.  Strategically, using Bankruptcy and other laws, we have developed a program that allows the homeowner legally remain in their home generally 6 months to a year, PAYING NOTHING.  This is all totally legal and the lenders know this!  At $4,000 per month for 12 months, thats nearly $50,000 back in our client's pocket, which they never would have netted in a sale!  Moreover, our after bankruptcy credit repair program then prepares them for the purchase of a new home once the market changes.  Bankruptcy atorney Michael Doan is also a Mortgage Broker and works hand in hand with Young Mortgage and First Platinum Properties to put them back in a new home in the future.

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PURSUANT TO THE NEW LAWS, WE MUST DISCLOSE THAT WE ARE A DESIGNATED DEBT RELIEF AGENCY UNDER 11 U.S.C. ß528. WE HAVE SUCCESSFULLY ASSISTED TENS OF THOUSANDS OF SOUTHERN CALIFORNIANS IN FILING BANKRUPTCY, DISCHARGING BILLIONS OF DOLLARS, AND WILL CONTINUE TO DO SO UNDER THE LAWS.