Saturday, September 17, 2011

Tampa Bay Rowdies

Watching FC Tampa Bay v. Minn Stars

Sent from my Verizon Wireless Phone

Wednesday, September 14, 2011

DHS to unveil new airport security policy for kids

http://www.msnbc.msn.com/id/44504084?GT1=43001

Children 12 years old and younger soon will no longer be required to remove their shoes at airport security checkpoints, Homeland Security Secretary Janet Napolitano told Congress on Tuesday. The policy also includes other ways to screen young children without resorting to a pat-down that involves touching private areas on the body.


Kids should take there shoes off and go through the screening machine too.  hello terrorists do not care about there kids--- Vietnam War- Middle East- ring any bells????

Pets as a Medical Expense in Your Ch 13

http://www.feedblitz.com/f/?FBLike=http://lawprofessors.typepad.com/bankruptcyprof_blog/2011/08/pets-and-chapter-13.html

Bankruptcy Filings Down

August consumer bankruptcies decreased 11 percent nationwide from August 2010, according to data from the National Bankruptcy Research Center (NBKRC). The data showed that the overall consumer filing total for August declined to 113,432, down from the 127,028 consumer filings recorded in August 2010. Each month of 2011 has recorded fewer bankruptcies than last year. 

NY Banking Dept Reaches Servicing/Foreclosure Practices Agreement with Goldman, Litton, Ocwen

New York's Department of Financial Services and Banking Department entered into an agreement with Goldman Sachs Bank, Ocwen Financial Corp. and Litton Loan Servicing LP regarding certain servicing and foreclosure practices.

A copy of the Agreement on Mortgage Servicing Practices is available at:
df

As part of the Agreement, Goldman Sachs will write down approximately $13 million in unpaid principal, consisting of forgiveness on 25 percent of the principal balance all 60-day delinquent first-lien home loans in New York serviced by Litton and owned by Goldman Sachs and its subsidiaries as of August 1, 2011.

The Agreement is a condition of Ocwen's acquisition of Litton, and does not preclude any future investigations of past practices or release any future claims or actions.  In addition, if any party to this Agreement agrees with any other regulator to adopt greater consumer protections or other more rigorous standards than are contained in this Agreement, such other provisions shall be applicable to the party.

Among other things, the Agreement requires servicing and foreclosure practice changes in the following areas:

- Document execution
- Accuracy of documentation
- Standing to foreclose
- Identification and contact information of the note holder, and account/payment history, on request
- Compensation to borrowers, and voiding of third-party sales, in all wrongful foreclosures
- Regular quality assurance audits of foreclosure and bankruptcy proceedings
- Oversight of third-party vendors
- Adequate staffing and training
- Single-point-of-contact notices and related requirements
- Toll-free number set up for new loans upon acquisition or transfer of servicing
- Modification notices
- Independent review of loan mod denials
- Complaint handling and resolution procedures
- Limits on attorneys fees, late fees and delinquency charges, property valuation fees
- Limits on lender-placed insurance

Ocwen and Litton must implement these requirements within 60 days following the acquisition. Goldman, which is exiting the mortgage servicing business with the sale of Litton, has agreed to adopt these servicing practices if it should ever reenter the servicing industry.

Articles of Interest

Foreclosures: Uncle Sam and His 248,000 Homes

U.S. taxpayers are the biggest owners of repossessed homes. For now, they’re stuck with them.  http://www.businessweek.com/magazine/foreclosures-uncle-sam-and-his-248000-homes-09012011.html

Robo-signed mortgage docs date back to late 1990s

http://www.google.com/hostednews/ap/article/ALeqM5getrYeAQRv3rG7noQ7QmPQQlnIaw?docId=b6873213020e4758bcd75ad770819850

As county officials review years' worth of mortgage paperwork, in some cases combing through one page at a time, they are finding suspect signatures — either signed with the same name by dozens of different people, improperly notarized or signed without a review of the facts in the paperwork — on all sorts of mortgage documents, dating as far back as 1998, The Associated Press has found.

10.9 million Houses Underwater

Nearly 10.9 million, or 22.5 percent, of all residential mortgages had negative equity at the end of the second quarter of the year, according to a report released Tuesday by the analytics firm CoreLogic. The figure is actually a slight improvement from the 22.7 percent of all mortgages with negative equity in the first quarter of 2011. CoreLogic says nearly three-quarters of homeowners in negative equity situations are also paying higher, above-market interest on their mortgages.  Nevada held the top position in terms of negative equity with 60 percent of all of its mortgaged properties underwater, followed by Arizona (49 percent), Florida (45 percent), Michigan (36 percent), and California (30 percent). http://www.corelogic.com/

10.9 million Houses Underwater

Nearly 10.9 million, or 22.5 percent, of all residential mortgages had negative equity at the end of the second quarter of the year, according to a report released Tuesday by the analytics firm CoreLogic. The figure is actually a slight improvement from the 22.7 percent of all mortgages with negative equity in the first quarter of 2011. CoreLogic says nearly three-quarters of homeowners in negative equity situations are also paying higher, above-market interest on their mortgages.  Nevada held the top position in terms of negative equity with 60 percent of all of its mortgaged properties underwater, followed by Arizona (49 percent), Florida (45 percent), Michigan (36 percent), and California (30 percent). http://www.corelogic.com/

Tuesday, September 13, 2011

Changes to Federal Bankruptcy Rules and Forms

Changes to Federal Bankruptcy Rules and Forms
Effective December 1, 2011

The following changes to and/or new Federal Rules of Bankruptcy Procedure and Official Bankruptcy Forms take effect December 1, 2011:

 Rule 1004.2 - Republication of a new rule requiring entity filing a chapter 15 petition to state the country of the debtor’s main interest, filer to list each country in which a case involving debtor is pending, and setting deadline for challenging the statement asserting the country of the debtor’s main interest.

 Rule 2003 - Requires the filing of a statement upon adjourning a meeting of creditors or equity security holders.

 Rule 2019 - Expands the scope of the rule’s disclosure requirements by requiring disclosure in chapter 9 and 11 cases by all committees or groups that consist of more than one creditor or equity security holder, as well as entities or that represent more than one creditor or equity security holder. It also authorizes the Court to require disclosure by an individual party in interest when knowledge of that party’s economic stake in the debtor would assist the Court in evaluating the party’s arguments.

 Rule 3001 - Prescribes in greater detail the support information required to accompany a proof of claim.

 Rule 3002.1 - New rule implements § 1323(b)(5) of the Bankruptcy Code which permits a chapter 13 debtor to cure a default and maintain payments of a home mortgage.

 Rule 4004 - Permits a party under limited circumstances to seek an extension of time to object to a debtor’s discharge after the time for objecting has expired.

 Rule 6003 - Clarifies that the requirement of a 21-day waiting period before a Court can enter certain orders at the beginning of a case, including an order approving employment of counsel, does not prevent the Court from specifying an effective date for the order that is earlier than the date of its issuance.

A complete list of the changes to and/or new Rules (Appellate, Bankruptcy, Criminal and Rules of
Evidence) that take effect December 1, 2011, is located on the U.S. Courts’ web site at:

www.uscourts.gov/RulesAndPolicies/FederalRulemaking/PendingRules/SupremeCourt042611.aspx.


 Form 1 (Voluntary Petition) - Implements new Bankruptcy Rule 1004.2.

 Forms 9A - 9I (Notices of Bankruptcy Case, Meeting of Creditors & Deadlines *341 Meeting Notice+) -Conforming to amendments to Bankruptcy Rule 2003(e).

 Form 10 (Proof of Claim) - Clarifies that, consistent with Rule 3001(c) and new Rule 3002.1, writings supporting a claim or evidencing perfection of a security interest—not just summaries—must be attached to the proof of claim. Three new forms have been created for claims secured by a security interest in the debtor’s principal residence.

 Form 10 (Attachment A) - Mortgage Proof of Claim Attachment

 Form 10 (Supplement 1) - Notice of Mortgage Payment Change

 Form 10 (Supplement 2) - Notice of Postpetition Mortgage Fees, Expenses, and Charges

 Form 25A (Plan of Reorganization in Small Business Case under Chapter 11) - Changes the effective date consistent with 2009 time-computation rules amendments.

You may view the proposed forms or obtain more information on the “Bankruptcy Forms
Pending Changes” page of the U.S. Courts’ web site at
http://www.uscourts.gov/FormsAndFees/Forms/BankruptcyForms/BankruptcyFormsPendingChanges.aspx

Mortgage rates hit lows

 Freddie Mac now puts the average rate for a 30-year fixed mortgage at 4.12 percent and the 15-year rate at 3.33 percent

Freddie Mac Rolls Out New Standard Modification

http://www.freddiemac.com/sell/guide/bulletins/pdf/bll1116.pdf

The Standard Modification replaces Freddie Mac’s classic modification, which is a debt coverage ratio mod, and is part of the Servicing Alignment Initiative underway to bring the two GSEs’ protocol for handling defaulted loans in line with one another.
Freddie Mac says the new formula will help servicers simplify underwriting by using a standard set of modification terms, including a 5 percent interest rate, for all eligible borrowers.


The new Standard Modification is available to borrowers who don’t qualify for the government’s Home Affordable Modification Program (HAMP), and includes a trial period to help ensure borrowers can sustain their modified mortgage payments and reduce re-default rates in servicers’ Freddie Mac portfolios

Dickson- Countrywide (6th Cir.)

The U.S. Court of Appeals for the Sixth Circuit recently ruled that a Chapter 13 debtor whose mobile home was involuntarily converted to real property by court order had standing to seek avoidance of a perfected lien on the real property under Section 522(h)(1) of the bankruptcy code.

The borrower in this matter gave Countrywide Home Loans ("Countrywide") a note and mortgage on an unimproved lot in consideration for a loan. She then used the loan proceeds to purchase a manufactured home, and placed that home on the mortgaged real property. Under the terms of the mortgage, Countrywide was granted a lien against the real property and "all improvements now or hereafter erected on the property, and all easements, appurtenances, and fixtures now or hereafter a part of that property." Several years later, the borrower filed for bankruptcy under Chapter 7 and was granted a discharge; she did not reaffirm the debt.

After a subsequent default, Countrywide initiated foreclosure proceedings.

In its foreclosure complaint, Countrywide asserted that while the parties had intended the mortgage to secure a valid, first lien on the manufactured home, the borrower had failed to surrender the title to the manufactured home, thus preventing the Countrywide from noting its lien on the title to the manufactured home. Countrywide obtained a judgment from the state court that it had a valid first priority lien on the real property, that the real property be sold to satisfy Countrywide's lien, and that the manufactured home be "deemed converted to real estate."

Shortly thereafter, the borrower filed a Chapter 13 petition. Countrywide sought relief from the stay, but the borrower responded by filing an adversarial complaint, asserting that Countrywide had failed to properly perfect its lien on the manufactured home. Countrywide moved for summary judgment on the bases that the borrower lacked standing to bring the adversary proceeding because the mortgage lien was consensual, that the borrower's claim was barred by res judicata as a result of the prior Chapter 7 case, and that the prior state court judgment prevented avoidance of Countrywide's lien. The borrower filed a similar cross motion for summary judgment, disputing each of Countrywide's assertions.

The bankruptcy court denied both parties' motions, and ruled that the borrower did have standing because the lien at issue was created by a non-consensual judgment lien. After renewed cross motions from both parties, the bankruptcy court eventually again ruled in favor of the borrower, concluding that "the only manner in which to perfect a lien on a manufactured home under Kentucky law is by noting the lien on the certificate of title, that Countrywide had failed to perfect its lien, and that even if Countrywide had perfected its lien, such lien was avoidable as a preference." On appeal, the Bankruptcy Appellate Panel upheld the bankruptcy court's judgment and order in favor of the borrower, and Countrywide appealed to the Sixth Circuit.

The Sixth Circuit noted that, under Kentucky law, "a manufactured home is personal property for which a certificate of title is required" and that "[i]n order to perfect a lien on personal property, the lien must be noted on the certificate of title." However, the Court also noted that "a manufactured home may also be converted from personal property to an improvement to real estate.thereby allowing perfection through first recording without notice."

The Court further noted that "the plain language of the mortgage contract did not grant Countrywide a lien on [the borrower's] manufactured home as personal property." Accordingly, "unless converted to an improvement to real estate, Countrywide did not obtain a security interest in the manufactured home through the mortgage contract."

The Court also considered various state-law decisions in ruling that "even if Countrywide obtained a lien against the manufactured home by way of the mortgage contract, it is undisputed that Countrywide did not note this security interest on the certificate of title, and the filing of a lis pendens cannot serve to perfect a security interest in a manufactured home" and thus, "before the state-court foreclosure judgment, Countrywide did not have a perfected lien on the borrower's manufactured home."

The Court then examined the state court order of sale converting the borrower's manufactured home to an improvement to real property, and concluded that the state court judgment created a perfected security interest in the manufactured home. The Court also noted that, because the borrower did not appeal the state court judgment, the conversion was binding under the doctrine of res judicata.

In addition, the conversion also placed the manufactured home "clearly within the terms of the mortgage contract," which then "granted a security interest in favor of Countrywide on the listed real estate, together with 'all the improvements now or hereafter erected on the property.'"

Accordingly, the Court ruled, "upon the entry of the state-court judgment.

Countrywide possessed a perfected lien on the borrower's manufactured home."

The Court then considered whether the borrower had standing to seek avoidance of Countrywide's perfected lien. Considering the language of Section 522(h) of the Bankruptcy Code, the Court ruled that "a Chapter 13 debtor has standing to avoid a transfer under Section 522(h) if five conditions are met: (1) the transfer was not voluntary; (2) the transfer was not concealed; (3) the trustee did not attempt to avoid the transfer;

(4) the debtor seeks the avoidance pursuant to Sections 544, 545, 547, 548, 549, or 724(a) of the Bankruptcy Code; and (5) the transferred property is of a kind that the debtor would have been able to exempt from the estate if the trustee had avoided the transfer under one of the provisions in Section 522(g)."

The Court ruled that Countrywide did not obtain a perfected security interest in the manufactured home until it "was converted to an improvement to real estate, thereby bringing the home within the boundaries of the mortgage contract," and thus, "while a transfer in real property did occur through the mortgage contract, the mortgage was not the triggering transfer."

Rather, the Court ruled, the "conversion of [the borrower's] manufactured home to an improvement to real property was involuntary because it was accomplished by operation of law without consent." Countrywide did not dispute that the borrower met requirements 2 through 4 of Section 522(h), and therefore, the Court ruled, the borrower "possesses direct standing"

to avoid Countrywide's lien pursuant to Section 522(h).

Finally, the Court also considered whether the lien was properly avoided pursuant to Section 547, which as you may recall allows for the avoidance transfers within the 90 days period before the filing of a bankruptcy petition. The Court first examined a prior decision holding that under Section 547, "a transfer is deemed to have been made at the time the transfer is perfected, if perfection takes place more than 30 days after its creation."

However, the Court ruled, "the creation and perfection of Countrywide's interest in the manufactured home occurred at the time of the state-court judgment. [which was] well-within the 90-day preference period" and therefore, the Court ruled "Countrywide's lien on the manufactured home was properly avoided pursuant to Section 547.5."