Florida Bankruptcy Lawyer Blog

May 2008 Sees Foreclosures Surge 48%

2008-06-17T19:21:02Z

The month of May has changed the way I think about politics. I used to be upset that nothing was being done to help the people living in Southwest Florida, now I am just ticked off. Foreclosure filings were up 48% over May of last year. This statistic proves several things: First nothing is being done on the Federal level to help the people of Southwest Florida keep their homes. Second, nothing is being done on the State level to help residents keep their homes. Third, where are the results that the mortgage companies promised when they argued not to change the bankruptcy laws. Where is Hope Now, President Bush's coalition of mortgage companies dedicated to helping people save their homes.

]]> A recent report predicted that over the next five years, 6.5 million loans will fall into foreclosure, or approximately 8 percent of U.S. households. Even if this statistic is wrong by a million or so, that should be enough to catapult our leaders into action; however, we are hearing nothing from Washington or Tallahassee. Why? Well the President has vowed to veto any bills calling for Reform of the Bankruptcy Code to allow debtors to cram-down the mortgages on their primary residences. It is shocking to me, that debtors can cram-down the mortgages on their second homes, but not on their primary residences. Nothing is being done in Tallahassee to help Florida residents save their homes. Oh wait, I am wrong about that, Florida recently passed a law which stops mortgage rescue scams and also places additional legal hurdles in the way of attorneys trying to help people save their homes.

I will speak more about that new law when I calm down a little. I get so mad each and every time I read the law. In general, I know the purpose of the law was to protect consumers from foreclosure rescue scams. But, the law goes a little further than that, like performing surgery on a skinned knee. I may be exaggerating, but then again, maybe not.

This Post is submitted by Carmen Dellutri, Esq. of The Dellutri Law Group, P.A. Mr. Dellutri is also a Board Certified Consumer Bankruptcy Attorney. He is also one of the founding members of The Bankruptcy Law Network, the Mortgage Law Network, Debt Law Network and Credit Law Network.

Mortgage Modifications Are Still Not Working.

2008-06-16T12:11:03Z

Living in Southwest Florida is never dull. Now, despite having beautiful weather and beaches, we are dealing with real economic issues which will determine the future paths taken by resident and business owners in Southwest Florida. Many business owners are closing their doors because of cash flow. Residents are feeling the pinch at the pump and in the grocery stores. Many people are opting to stay at home for dinner, rather than drive and then pay for that luxury. Of course, it is not that bad yet, but I can see it coming on the horizon. When people cannot afford to fill up their gas tanks, how are they going to go out and eat. Naturally, the next logical question is: How can they pay mortgage payments on a home if they cannot afford to fill up their tanks.

]]> I am in the process of writing a series of articles for the mortgage law network blog. In these articles, I am attempting to point out to the frustrated homeowners why the mortgage companies are reluctant to modify their mortgages. In simple terms: The mortgage companies have their own agendas for modifying mortgages and their agenda may not fit your own. Likewise, there may be other players in the mix that have a separate agenda which needs to be considered before a modification may be recommended. Remember, there are no two mortgage modifications that are alike. Each one will have elements unique to the individual transaction.

In a nutshell, the players in a mortgage modification can be:

1. Borrower/Homeowner
2. Lender - Could be a local bank or a Securitized Trust
3. Mortgage Servicer for a Securitized Trust
4. Mortgage Insurance Company
5. Second Mortgages

After looking at the potential players, ask yourself this question: Do all of these organizations really want me to save this home? If you can come up with reasons for them all putting their heads together to help you save the home, you are on your way to a modification.

Carmen Dellutri, Esq. is a Board Certified Consumer Bankruptcy Attorney, and he is the founder of The Dellutri Law Group, P.A. He is also one of the founding members of the Bankruptcy Law Network, Mortgage Law Network, Debt Law Network, and the Credit Law Network. Mr. Dellutri sits on the Board of Directors of the American Board of Certification for Certified Attorneys.

Creditor Claims Trading: What is next?

2008-06-14T17:01:39Z

Bankruptcy Courts are seeing many consumer issues along with the increasing bankruptcy dockets. Therefore, Bankruptcy Judges are naturally becoming more sophisticated on the issues surrounding consumers. Recently I argued a case against a debt collector and one of the issues was the creditors purchasing of discharged debts. Why would a creditor purchase debts which are discharged by a Federal Court Discharge Order? Theoretically, these debts are no longer collectible.

]]> Yesterday, I read an article about a company named Trade Receivable Exchange Inc (T-REX). This company built a business on bankruptcy claims trading. In other words, when a person or company files for bankruptcy, it's unsecured creditors must file a proof of claim in order to be considered for payment. (Secured Creditors have different rights which are outside the scope of this blog) So, T-REX create an internet auction house for the selling of claims. Basically, it is a place where distressed debt buyers could go and purchase bankrupt debt. It is important to note here that the debt being purchased has not yet been discharged as I alluded to before.

Recently, T-REX was sold to Restricted Securities Trading Network (RSTN). RSTN is another online trading platform which, in the past, restricted itself to the buying and selling of restricted securities and other illiquid assets. This acquisition did not receive much fanfare or press on Wall Street, but it may have major implications on the bankruptcy world for debt purchasers who appear as creditors in the bankruptcy world.

I will keep you posted.

This post was submitted by Carmen Dellutri, Esq. founder of The Dellutri Law Group, P.A. Carmen Dellutri is a Board Certified Consumer Bankrupty Lawyer and sits on the Board of Directors for the American Board of Certification. Mr. Dellutri is also one of the founding members of the Bankruptcy Law Network, Mortgage Law Network, Credit Law Network and Debt Law Network. Carmen Dellutri routinely reads the abusive debt collection blog published by Steve Otto, Esq.

Airlines Are No Longer Flying High

2008-05-31T13:22:03Z

In April I wrote a blog about the airline industry and asked a question: Is the word airline synonymous with bankruptcy? At the time I intended for it to be a bit of a joke because four (4) different airlines had filed bankruptcy. Now, several months later, it could prove to be almost prophetic. Back then, Skybus, ATA, Aloha and Frontier had filed for bankruptcy protection. Delta recently emerged from bankruptcy protection and announced that it was planning a merger with Northwest, and Alitalia was on the brink of bankruptcy. All in all, things weren't looking so good for the airlines.

]]> Since the writing of that blog, we have experienced a rise in gas prices that is sucking the money right out of our pockets. This rise in gas prices, when combined with the foreclosure crisis, credit crisis and recession has the whole country wondering what is happening to our own individual pocket books, or what I like to call hip pocket national bank. Imagine what happens when you pre-sell thousands of airline tickets on the hope that fuel prices will rise only marginally. I'm sure that many airlines are feeling the heat.

At the beginning or 2008, I wrote two blogs for the Bankruptcy Law Network titled Carmen Dellutri's 2008 Predictions Part I and Part II, and I will be the first to say that I did not see this coming. Now, we are hearing that things are not looking so good for the industry, especially for United Airlines, American Airlines, and U.S. Air.

This is definitely something to keep an eye on.

This post was written by Carmen Dellutri, Esq. of The Dellutri Law Group, P.A. Mr. Dellutri is a Board Certified Consumer Bankruptcy Attorney. Mr. Dellutri is one of the founding members of the Bankruptcy Law Network, Mortgage Law Network, Debt Law Network and Credit Law Network. He is also on the Board of Directors for The American Board of Certification.

Complaints Against Debt Collectors Are Rising

2008-05-24T16:51:21Z

As a Consumer Bankruptcy Attorney, I see people on a daily basis who are considering filing for bankruptcy protection. One of the reasons they are seeking bankruptcy protection is to stop the abusive debt collection practices being employed by the debt collection industry. As this country goes deeper and deeper into a recession, with inflationary prices on gas, food and other commodities, more and more individuals will default on their debts. Recently, I wrote an article for the Credit Law Network about the debt collecter's stock becoming hot on Wall Street. The article made me sick.

]]> Here is my take on the issue, and please feel free to give it as much credibility as you wish.

As more people go into debt, the debt collection industry will become more competitive and more unscrupulous. Think about it for a minute. As any industry grows, there will be more competition and higher prices being paid for the portfolios of debt available for collection. Sure there will be more portfolios available as more people default on their debts, but there will be even more debt collectors vying for that slice of pie, thereby raising demand, and accordingly, the prices of the available portfolios. This will have a direct impact on the collection practices being employed by the employees because now the debt collectors are further vested in these portfolios, and therefore, have to make even more money to not only break even, but make a profit. The government has yet to say that we are in a recession, but it doesn't take a genius to see what is going on in the United States. Consumer complaint are rising against the debt collectors already. The statistics being reported by the Federal Trade Commission (www.ftc.gov)

This will lead to even more violations of the Federal Fair Debt Collection Practices Act (FDCPA) by debt collectors and the State Florida Consumer Collections Practices Act (FCCPA). It is important to note that the FDCPA only applies to debt collectors and not an organization that is collecting its own debts. The FCCPA has no such limitation.

If you believe that you have been a victim of debt collection abuse, please feel free to contact the Federal Trade Commission at www.ftc.gov and click on consumer protection and then click on file a complaint.

This post was submitted by Carmen Dellutri, Esq., founder of The Dellutri Law Group, P.A. Mr. Dellutri is a Board Certified Consumer Bankruptcy Specialist, Certified by the American Board of Certification. Mr. Dellutri now sits on the Board of Directors of the American Board of Certification. Mr. Dellutri is also one of the Founding Members of the Bankruptcy Law Network, Credit Law Network, Debt Law Network, and the Mortgage Law Network.

How Many Bankruptcies Will Be Filed In 2008?

2008-05-07T08:59:43Z

Will bankruptcy filings exceed 1 million this year? A look at the current data and the historical data make the case for bankruptcy filings to exceed 1 million. But wait a minute, I thought Congress changed the bankruptcy laws in October 2005 to curtail consumer filings and prevent abuses in the system. I though Congress had fixed the problem. As usual, Congress fixed a problem that didn't need fixing and created several other bigger problems. Our fearless leaders have created an economic nightmare in this country that needs to be fixed, and they are doing nothing to improve the problems. I'm willing to bet that if their homes were going into foreclosure something would be getting done to stem the wave of foreclosures in this country.

]]> Ok, I will get off the soapbox, and look at the data. As you may recall if you stay current with this blog or one of the others, BLN, DLN, CLN or MLN, that I write for, I wrote several articles dealing with the bankruptcy numbers. I predicted that the number of bankruptcy filings would continue to increase because of poor economic conditions and basically because of what my clients were telling me about what was going on in the real world.

Now, we see that across the United States in April 2008, there were 93,096 bankruptcy cases filed. So, every business day in April, 4,232 bankruptcy cases were filed. Although this number may seem huge, there were actually 4,301 bankruptcy cases filed each day in March 2008. So, there was actually a slight decrease in the number of filings per business day between the two months. However, if we compare April 2008 to April 2007, we see a substantial increase in the number of filings, approximately 37%.

Over the last few years, April bankruptcy filings were about the same as March and are a good indicator as to where they will remain for the next couple of months. Usually, you will see a spike in the numbers for October and November. If the current numbers and historical analysis holds true, bankruptcy filings will exceed 1 million cases this year.

The big question is whether this is good for the consumers? the economy? the country? the credit card companies? the secured creditors? These and other questions will be answered in future blogs.

This post is submitted by Carmen Dellutri, Esq of The Dellutri Law Group, P.A. Mr. Dellutri is one of the founding members of the Bankruptcy Law Network, Credit Law Network, Debt Law Network, and Mortgage Law Network. Additionally, Mr. Dellutri is on the Board of Directors of the American Board of Certification, and he is a Board Certified Consumer Bankruptcy Attorney.

Debit Card Do's And Don'ts Part II

2008-05-07T08:56:33Z

The best way to do this is with a Debit Card tied to your bank account. Naturally, this comes with a bit of responsibility. Debit cards allow you to pay for items by automatically taking money out of your account and sending it to the creditor, so you are not incurring debt at all. Likewise, Visa, Mastercard, Discover, and American Express will not have the ability to charge you interest on the outstanding balance at the end of the month. So, that $5 coffee this morning from Starbucks doesn't wind up costing you $35 in an over the limit fee. This is where I ask my clients to analyze the true cost of things.

]]> In other words, if I can't pay for this now, how much is this really going to cost me. Think of a car loan or a mortgage. How much is the interest going to cost me? I will use myself for example. I have purchased cars in the past, many of them. I like to pay cash unless I get a 0% interest deal. If I do, then I set aside the money in a separate money market account where I can earn a higher rate of return and now, I can keep my money in the bank, and give the car lender an automatic debit out of the account. So, I get to keep control of the account, earn interest, and build my credit rating.

If I cannot get a deal like that, I have to make a decision: Do I need the car that much that I am willing to pay cash? Do I want to pay cash? Do I have the cash to purchase the vehicle at this time? If not, how long will it take to accumulate the cash? Or, if I really need the vehicle, how much will it cost me to finance the vehicle? How fast can I pay that loan off? Again, what is this car really going to cost me, and am I willing to pay that amount for the convenience of having it now.

A Debit card really puts this into perspective. If the money is going to come out of your checking account now, then you really have to be careful that you not only have the money for the purchase, but enough to cover all of the other expenses associated with your budget. As Gene states in his article, misuse of the account may be reported to Chex Systems. An abuse of your debit card and checking account may prevent you from being able to open another account in the future.

One last caution, you will definitely want to create a cushion in your account. Hotels and Car Rental companies will put a hold on funds in the account for the estimated amount of the charges that you may incur during your use of their products. Always inquire if this is their company policy so that you will not overdraft.

All in all, Debit Cards serve a very useful purpose and are very convenient. In a perfect world, they would replace credit cards and all debt would be eliminated. However, being that we are not in a perfect world yet, consumers should look at all the benefits of having a debit card and look for more ways to use the debit card to reduce their reliance on credit cards.

Debit Card Do's And Don'ts Part I

2008-05-07T07:53:06Z

As a Consumer Bankruptcy Attorney, it seems as if a couple of questions are on everyone's mind. One of those questions is: After bankruptcy, how will I rent a car or secure a hotel room if I cannot keep any of my credit cards? My reply is simple: Use your debit card. People are often shocked that yes, they can use their debit cards for this purpose. Yesterday, my friend and colleague in Connecticut, Eugene Melchionne, wrote a blog for the Credit Law Network, titled "Using Debit Cards and ATM's Effectively". After reading Gene's article, it made me think of several reasons why people using debit cards need to be careful.

]]> But before we get started, you have to know a little more about me, and my belief system about bankruptcy and what I hope to achieve for my clients. First, I believe that bankruptcy is a financial tool that if used correctly, can provide relief for the honest, but unfortunate debtor. This relief comes in the form of immediate financial relief from creditors obligations, but does not stop there. My goal for each of our clients is to give them the opportunity to live a credit free lifestyle. In other words, to break away from the use of credit in any fashion. Why?

The use of credit implies two things in my mind: Interest that will have to be paid and what the true cost of an item is going to be. Interest is the great equalizer. I don't like paying interest to a bank so I can have something now instead of when I can afford it. Unless you are in that small, exclusive group of individuals that pays off the balance of each and every debt every month and pays no interest to anyone, Banks, Visa, Mastercard, Discover and American Express offer credit to individuals to allow them to spend money now, that they do not have. In other words, you can have things now and pay for them later. The ability to shift the time frame for payment may cost you big time in the form of interest, penalties and other charges. So, our goal is to have our clients break this cycle of debt, "the charge and pay syndrome", and live on a cash basis.

Please continue on to Part II for the remainder of this article.

What Is A Business Bankruptcy? Part II

2008-04-30T10:14:01Z

This is part two of the story:

Recession is not part of the business plan and there are not enough cash reserves to cover the lines of credit and make all of the lease payments, so the business owner thinks about bankruptcy for the business. In reality, there is no reason to file a bankruptcy for the business because the business doesn't own anything. The business has the right to use the leased equipment but it does not own the equipment or the premises. The business has an obligation to pay for the equipment and the premise, but if the business closes down and there is no money left in the bank account, how is that going to happen? Usually, when this happens, and it happens quite often, the creditors will begin to look for the individual who personally guaranteed the loan.

]]> So, the question is who is really going to have to pay the piper? Is it the corporation that has no assets or the individual who reaped the benefits of the corporation in the good days? Usually, it is the owner of the small business that will be filing a personal bankruptcy to discharge the personal guarantees.

This brings us to a very important point. Businesses do not receive a discharge of debts in Chapter 7. Unlike individuals, where the goal of the bankruptcy is to receive a discharge, businesses do not need a bankruptcy discharge because the Chapter 7 kills the corporation. So, usually, there is no need to file a small business bankruptcy. Now, of course, there are exceptions to this story and the general rule of not doing a corporate chapter 7. But, those cases in my opinion are few and far between.

This post is submitted by Carmen Dellutri, Esq. Mr. Dellutri is a Board Certified Consumer Bankruptcy Specialist, practicing in all of Southwest Florida, with offices in Port Charlotte, Fort Myers, Naples and LaBelle. He is the founder of the Dellutri Law Group, P.A., and he is one of the founding members of the Bankruptcy Law Network, Debt Law Network, Credit Law Network and Mortgage Law Network. Mr. Dellutri also sits on the Board of Directors for the American Board of Certification, which certifies attorneys as specialists.

What Is A Business Bankruptcy? Part I

2008-04-30T09:46:32Z

As a Board Certified Consumer Bankruptcy Attorney, I see people on a daily basis who are facing financial problems. Bankruptcy has taken on a whole new life recently as were are in the midst of a serious recession that is only getting worse. Bankruptcy is now on the minds of people who never thought they would find themselves in financial difficulty. More and more small business owners are finding it hard to make ends meet. Many of these small businesses relied on one industry or another that has dried up in Southwest Florida. These business owners believe that the solution to their financial problems is to bankrupt the business and put it behind them. However, many do not know that filing bankruptcy for a small business may not be a very good idea at all.

]]> While filing bankruptcy for a business may seem like a very tidy way of cleaning up the financial mess, there are many considerations that must be analyzed prior to taking this leap of faith. First, many business owners think their d/b/a is a corporation. The structure of the business is really important. A person who is working and "doing business as" is not acting under the framework of a legal corporation. Therefore, there can be no business bankruptcy. That person can file a personal bankruptcy and include all of their debts and the alleged business debts. I say alleged because that is what the debtors commonly refer to them as.

If a corporation truly exists, then the debtor corporation will have to decide which type of bankruptcy will suit the business. A corporation can file a Chapter 7 liquidation bankruptcy or a Chapter 11 reorganization. A chapter 11 reorganization is beyond the scope of this blog, but suffice to say, it is an option. Usually, chapter 11 is not a very viable option for a small business owner. If a corporation is seeking to file Chapter 7, an attorney really needs to analyze the debts involved and the reasons of the owner.

In a large percentage of cases, the assets of the small business are leased or financed in some fashion and the owner has signed a personal guarantee. For example, let's say the corporation is a Travel Agency. The corporation leased an office, leased a computer system, phone system and a copier, all with personal guarantees. The owner purchased the office furniture and they opened up for business and things were going smoothly. Then the credit card applications started coming in, and the owner thought things were good enough to open up a few lines of credit, you know, to build the credit rating of the business and take advantage of all the write-offs that are available. The owner even thinks of expansion and branching into new areas. So, he uses the available credit to reach his potential, and all the plans look good on paper.

Please continue reading Part II of this post.

TIB Financial Corp Showing Losses

2008-04-28T12:59:15Z

As a consumer bankruptcy attorney in Southwest Florida, I hear about financial news as it happens. This is particularly true when it comes to creditors hitting hard times. Many of my clients keep me updated with creditor information like TIB Financial Corp. TIB bank and its affiliates finance cars and real estate. Their 2008 first quarter loss was $1.44 million dollars. This information alone is not so bad; however, when you combine it with the losses from the fourth quarter of 2007 of $6.49 million, then you start to see a problem. In the last 6 months, TIB Financial Corp. has lost almost $8 million.

]]> I hate to hit a good company when it is down, but TIB's non-performing loans have climbed to $26.8 million from $3 million a year ago. Why? Because the consumer is the one being hit the hardest by the economic woes of the United States, and when the consumer is hit the hardest: Where is the money going to come from? Well, a look at the 10K filing of TIB Bank will demonstrate that the largest increase of their loan portfolio between 2006 and 2007 was in home equity loans and other consumer loans. In other words, TIB Bank bought into the consumer craze of 2006 and 2007 and now they are paying the price.

So, if you are an investor in this bank, be careful and watch the non-performing consumer loans, this could get ugly.

This post was submitted by Carmen Dellutri, Esq., founder of The Dellutri Law Group, P.A. Mr. Dellutri is one of the founding members of the Bankruptcy Law Network, Debt Law Network, Credit Law Network, and Mortgage Law Network. Mr. Dellutri is a Board Certified Consumer Bankruptcy Attorney, Certified by the American Board of Certification. Mr. Dellutri now sits on the Board of Directors for the American Board of Certification.

Is Airline Synonymous With Bankruptcy?

2008-04-24T12:13:39Z

The topic of bankruptcy is usually not discussed by office workers around the water cooler. Nor is bankruptcy discussed at cocktail parties. I can honestly state that no-one has ever said to me, "I have the best bankruptcy attorney in the world", or, "Have you considered speaking with a bankruptcy attorney about that financial decision". Quite frankly, bankruptcy has always been that other b-word, unless you are an airline. We all know that four major airlines have filed for bankruptcy protection over the last few weeks: Skybus ATA, Aloha, and Frontier. Additionally, we all know that Delta recently emerged from bankruptcy protection, and that they lost $6.39 billion in the first quarter of 2008 (accounting write off) or $274 million, whichever you prefer. So, the question is: Is Airline synonymous with Bankruptcy? At this point the jury is still out.

This post was written by Carmen Dellutri, Esq. of The Dellutri Law Group, P.A. Mr. Dellutri is a Board Certified Consumer Bankruptcy Attorney, and he is also one of the founding members of the Bankruptcy Law Network, Mortgage Law Network, Debt Law Network and Credit Law Network.

Are Bees Capitalizing On The Foreclosure Market?

2008-04-22T11:52:45Z

Recently, an article was published by John Leland in the New York Times, American Album series about a local gentleman named B. Keith Councell, a fourth generation bee keeper. I applaud the writer, Mr. Leland, who submitted an excellent article on Mr. Councell, and his calling as the Southwest Florida Bee-man; however, there is also a subliminal message that is very troubling for those of us who live in Southwest Florida. The subliminal message is very simple, foreclosures are a huge problem for our community and that problem has to be dealt with now.

]]> Foreclosed homes are a problem for everyone, and the local governments can no longer turn a blind eye, especially when our local problem is making national news. As you read the article, it becomes obvious that the writer is attempting to bring this problem to light without making a political statement. Additionally, Mr. Leland is not using the article to propose any changes in legislation. However, he does a wonderful job of getting the message across.

The article is laced with phrases that really hit home with me. Mr. Leland states: "Foreclosed houses around the country have been colonized by squatters, collegiate revelers, methamphetamine cooks, stray dogs, rats and other uninvited guests." Although Mr. Leland puts this statement in the context of the bee-keeper, his subliminal message is that foreclosed homes in Cape Coral are a nuisance, plain and simple.

I suggest that everyone read this article for two reasons: First, Mr. Councell is truly a remarkable person that I have never heard about or met, but now hope to someday. Second, the article provides an outsiders view of the foreclosure problem in Southwest Florida. This outsider or third party view was published for the nation to read. Do you think after reading the article, that you would want to visit Southwest Florida?

This post was submitted by Carmen Dellutri, Esq. of The Dellutri Law Group, P.A.. Mr. Dellutri is a Board Certified Consumer Bankruptcy Attorney and is on the Board of Directors of the American Board of Certification. He is also a founding member of the Bankruptcy Law Network, Debt Law Network, Credit Law Network, and Mortgage Law Network.

What is Jingle Mail?

2008-04-21T12:34:33Z

As a Board Certified Consumer Bankruptcy Attorney, I am seeing bankruptcy clients each and every day who are surrendering their homes in the bankruptcy process. Some individuals are choosing not to file bankruptcy and are deciding to leave their homes. Right now, Southwest Florida is experiencing one of the highest foreclosure rates in the country. People are literally walking away from their homes each and every day. Port Charlotte, Cape Coral and Lehigh are experiencing higher rates of foreclosure than other areas of Florida. Each day I speak with the people who are suffering through this problem, and they all tell me the same thing. I am going to mail the keys to my mortgage company or servicer.

]]> Jingle mail is a new term used to describe the process utilized by a distressed homeowner to return the keys to the mortgage company or its representative. Many secured creditors in bankruptcy want their collateral back. Usually, a debtor can drop off the merchandise or have it picked up. Unlike a car that can be returned to the dealership or furniture that can be returned to the distributor, a house cannot be returned to the owner. Theoretically, the home is being returned but, ownership will not pass until the title passes. Jingle mail gives a clear intention to the mortgage company of what the distressed homeowners intentions are.

If you have specific questions about bankruptcy please visit our website at: http://www.dellutrilawgroup.com/bank/faq.htm

This post was written by Carmen Dellutri, Esq. of The Dellutri Law Group, P.A. Mr. Dellutri is the founder of The Dellutri Law Group, P.A., and he is also one of the founding members of the Bankruptcy Law Network, Debt Law Network, Credit Law Network, and the Mortgage Law Network.

Foreclosures In Southwest Florida: It's A Community Problem

2008-04-16T10:30:35Z

It seems that you cannot go anywhere today without hearing someone speaking about what is going on with the foreclosures in Southwest Florida. It's in the newspapers and on the minds of many people living in Southwest Florida. Most people in Southwest Florida will fall into one of three categories: First, there are the rich that will never have to worry about the foreclosure crisis, so we will leave them out of this. We will talk about them later when the stock market takes a dive, and then we can say, we told you so, but you were too busy attending wine auctions that you missed all of the economic indicators predicting a recession. Second, you have the middle class, which is our largest group. Many of these individuals are homeowners with mortgages on their primary residences, and they are feeling the pinch of the recession as their home values plummet. These are the people who have either lost their homes already, live in fear of losing their homes, or are renting somewhere else in an attempt to save their homes.

]]> Third, we have everyone else. For the purposes of this blog, these are the individuals who were smart enough to sell their homes when the market was high, or are renting right now and taking advantage of the rental market. I am leaving out a substantial part of the population who are not being directly affected by the foreclosure market. However, even if your home is not in foreclosure, we are all directly impacted by the foreclosure market. For example, I spoke with a young woman the other day who came to see me for advice. She just turned thirty, has a good job, is financially sound , has investments, retirement plan, etc. He only problem was the dream home that she purchased two years ago. She is not in foreclosure, but she is about $80,000.00 upside down in negative equity. She received a magnificent job offer in another state that would increase her salary. Her dream home is now an anchor that is dragging her down.

What did she do wrong? Nothing. As a matter of fact, she did everything right. She put herself through school, worked hard, saved her money, purchased a beautiful home that she could afford, and now, when an opportunity presents itself, she is directly affected by a market condition that she has no part of. My point is that this market will impact each and every one of our lives, and we should stop pointing the fingers and placing blame. We need solutions that will keep people in their homes. We need more aggressive legislation, and we need the President to stop playing politics and allow the bankruptcy laws to be amended to help those homeowners who can afford to stay in their homes.