Obama Expands Mortgage Modification Program/ New Bankrutpcy Filing Fees as of 11/1/11

Gauss Law Firm Brief: 303.670.4242
Below you will find a brief update on and expanded mortgage modification program being adopted by the Obama Administration. It is also getting more expensive to go broke, and I’m providing a new schedule of bankruptcy related filing fees.

Obama Administration Expands Program For Mortgage Modifications
The Obama administration announced today that it would be expanding it’s mortgage modification program for Freddie and Fannie Mae backed mortgages. The expanded program, like the old one, only applies to persons who are upside down and current on their mortgages.

It is estimated that the relaxed rules will make another one million homeowners eligible for refinancing. The program has also been expanded for another 18 months.

My view is that while attempting to help is laudable, this expanded program will make little difference to the crises. 3.5 million homeowners are in foreclosure and /or more than 4 months behind in the United States. Fundamentally, I view this as yet another attempt to slap a little lipstick on this sweaty, hairy pig. This is a disaster and the problem with these voluntary modification programs is that it gives many false hope.

Spending two years trying in vain to get a modification does not help the financially stressed homeowner. Bankruptcy helps the distressed homeowner. The problem has always been that the big banks get paid on the mortgage insurance when homeowners default. While taking the bailout money these banks have done little to really rewrite mortgages and instead are sitting on those funds while collecting mortgage insurance. Jaded? Yep. But that is what I see.

Also the OCC (comptroller) is initiating a forclosure review process for about 4.5 million homeowners.  Some homeowners who have been forclosed upon, will be receiving a letter in the mail letting them know that their forclosure is reviewable by the agency.

If you are considering bankruptcy or a home mortgage modification stop by and I would be happy to help analyze your situation. For a few, the home mortgage modification may be a solid alternative.

I hope everyone had a great summer and will have a happy and healthy holiday season!

**New Filing Fee Schedule:

PETITION FEES   As of Nov 1, 2011
Chapter 7   $306
Chapter 9   $1,046
Chapter 11   $1,046
Chapter 12   $246
Chapter 13   $281
Chapter 15   $1,046
CONVERSION FEES    
Chapter 7 to a Chapter 11   $755
Chapter 7 to a Chapter 12   $0
Chapter 7 to a Chapter 13   $0
Chapter 9 to a Chapter 7   $15
Chapter 11 to a Chapter 9, 12, 13, or 15   $0
Chapter 11 to a Chapter 7   $15
Chapter 12 to a Chapter 7   $60
Chapter 12 to a Chapter 11   $800
 
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