Questionable Foreclosure Practices in Chicago put Banks on the Hotseat
As The New York Times recently reported, the country's most powerful banks aren't trying to fix the problems with robo-signing and shady business practices in foreclosure cases by actually fixing them, but instead by trying to pay off the government.
Chicago Foreclosure Attorneys have watched as the country's financial crisis started in the mid 1990s, but didn't rear its ugly head until recent years, when the housing market collapsed. Home prices steadily increased in from 1995 to 2001 and as they did, lenders relaxed their standards and let people borrow against their home's value. But when values plummeted as the bubble burst, millions of homes lost value, leaving even honest homeowners in Illinois upside down in their mortgages.
But it is possible to stop foreclosure in Chicago. Consulting with an experienced foreclosure attorney in Chicago can make the difference between dealing with unmanageable debt and enjoying the freedom of taking control of your finances.
As the story details, the banks controlling about two-thirds of the mortgages in the United States have offered to pay $5 billion to settle allegations of robo-signing and other shady practices like filing false documents in foreclosure cases. But the state attorneys general who have launched investigations are seeking $20 billion in payments.
The Wall Street Journal recently reported that the banks are trying to haggle over how much to pay for their abuses. After the banks offered $5 billion, the states came back with an offer of $17 billion. The states believe the banks will face a liability of at least $17 billion in civil lawsuits.
The U.S. Trustee Program, a part of the Justice Department that oversees bankruptcy cases, has asked for an additional $500 million to $1 billion in penalties, according to people familiar with the matter. Officials of the unit have raised questions in several cases over the authenticity of foreclosure documents.
All this can be good news for homeowners who are struggling to pay off their loan on an upside down mortgage. All of these problems can potentially be helpful in defense of a foreclosure. While that may be a successful plan of attack for homeowners, one surefire way to stop foreclosure in its tracks is through Chapter 13 bankruptcy in Chicago.
The way Chapter 13 differs from Chapter 7 is that it works for people who have assets they want to protect, such as houses. Chapter 13 filings immediately stop the foreclosure process and work to help the homeowner come up with a payment plan to help keep their home and other assets. The payment plan typically lasts 3 to 5 years.
In other cases, Chapter 7 Bankruptcy may be your best bet. In either case, fighting bankruptcy can permit you to remain in your home indefinitely while you work to restore solid financial footing.
If you are on the verge of losing your home, speak with a Chicago foreclosure attorney for advice about how to protect your family. The DebtStoppers Bankruptcy Law Firm can give you a clear vision and guided plan so call 1-800-440-7235 for a free debt analysis today.
More Blog Entries:
Foreclosure Filings in Chicago remain Elevated: April 26, 2011.