Lanigan & Lanigan, P.L.
831 W. Morse Blvd., Winter Park, Florida 32789
407-740-7379
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Mortgage Workout
Mortgage Cramdown a Foreclosure Option on Investment Property Before you decide to let an investment property go or file bankruptcy consider a Mortgage Cramdown. When you receive papers stating that your bank will be filing foreclosure against you on an investment property consult with Eric Lanigan or Roddy Lanigan foreclosure and bankruptcy attorneys in their Winter Park, Florida, office to find out what your options may be. The basic idea of a cramdown is that a judge strips the loan into two parts: a secured loan, with a principal equal to the current value of the asset; and the equity line or the second mortgage usually an unsecured loan, with a principal equal to the rest of the original mortgage. Mortgage Cramdowns for Investment Properties The payments on the secured loan may be decided with a new principal plus an interest rate that offers a reasonable compensation for risk, possibly Prime plus one to three percent. Meanwhile, the unsecured portion is moved down in the payment queue with the other unsecured debt; very little of this is ever paid off. Congress never authorized bankruptcy judges to modify mortgages on primary residences so these cramdowns are only for investment and vacation properties. The amount of the cramdown varies by state, property value and borrower situation but usually includes a reduction in the principal amount of the loan to fair market value. The bankruptcy cramdown was part of the original language of the Helping Families Save Their Homes Act of 2009 and would have amended the federal bankruptcy law governing a Chapter 13 bankruptcy debtor to allow judges to alter the terms of mortgages...
Mortgage Workout
Many scared and overwhelmed homeowners and business owners have properties on the brink of foreclosure do not know the benefits of mortgage workouts. A mortgage workout is a refinancing of a mortgage held by a homeowner who is in foreclosure, will soon be in foreclosure or who is about to be late on a mortgage payment. Floridians facing foreclosure turn to Eric and Roddy Lanigan and Rich Marquez for counseling and see the benefits of Central Florida mortgage workouts. Considering the Benefits of Mortgage Workouts Nobody can guarantee results in your case or any other. Everyone’s financial situation varies, your arrearage varies, your property value varies, your credit history varies. Everyone’s mortgage is different and no one can ever tell you they can promise results. “We certainly do not,” said Eric Lanigan, Winter Park, Florida, bankruptcy and foreclosure lawyer who with Roddy Lanigan try to help keep businesses and homes out of financial disaster. “We have been successful in accomplishing these things for our clients,” said mortgage workout agent with Lanigan and Lanigan, Rich Marquez. Here’s where Lanigan and Lanigan have been able to get for some clients and have been successful in coming to agreements with lenders and receiving: Interest rate reductions as low as 2% Extensions for terms of the loan from 30-year mortgages to 40- and 50-year mortgages Principal Balance reductions Permanent forgiveness Principal balance deferment Principal balance settlements Lanigan and Lanigan Handle Mortgage Workouts “No bank in the country will tell you that they want to go down the foreclosure route,” Marquez said. “They would be open to negotiating with us, their doors will be...
Mortgage Workout
Five banks accused of faulty foreclosures have had their fiscal hands slapped over faulty foreclosure procedures and poor treatment of homeowners. Bank of America, JP Morgan Chase, Ally Financial, Wells Fargo and Citigroup have to pay in excess of $20 billion according to Bloomberg. State and federal funds to resolve claims and provide relief to borrowers will be paid to resolve problems that occurred as banks treated borrowers poorly during a surge in mortgage defaults. This agreement will set standards for servicing loans and processing foreclosures and serve as a template for claims against the rest of the industry. BofA and Chase Banks Accused of Faulty Foreclosures The Treasury Department said that the two largest, Bank of America and JPMorgan Chase & Co. are not doing enough to help Americans avoid foreclosure and have done a poor job helping people permanently lower their mortgage payments as part of the government’s foreclosure prevention program. The lenders have rejected people who were eligible for mortgage modifications the Treasury said. Florida Attorneys Lanigan and Lanigan Lawyers Eric Lanigan and Roddy Lanigan many years practicing business and civil litigation, securities and investment losses, bankruptcy, foreclosure and mortgage workout (renegotiations/refinances) in Metro Orlando. If you have to make a decision and want financial insights and options talk with an attorney. Lanigan and Lanigan. Experienced attorneys, aggressive representation with a personal...
