New Jersey Bankruptcy Blog

In what could quickly become a major national news story, The Press of Atlantic City reports that six mortgage lenders in New Jersey (including some who are the biggest banks in the U.S.) have been ordered by the state’s Supreme Court to appear in court on January 19 to explain why the state shouldn’t suspend their foreclosure practices as a result of the robo-signing that has been rampant the past few months. The lenders are reported to be Ally Financial; BAC Home Loan Servicing, which is a subsidiary of Bank of America; Chase Home Finance, which is a part of JP Morgan Chase; Citi Residential Living, which is a subsidiary of Citibank; OneWest; and Wells Fargo Financial New Jersey. An additional 24 lenders were given 45 days to provide evidence there aren’t irregularities in their foreclosure actions.
New Jersey has been swamped with foreclosures, and within the last few years, the number has skyrocketed. In 2006, there were over 24,000 foreclosure cases in the state. By 2009, that number had risen to over 66,000. By the end of 2010, the courts had handled over 46,000, with thousands more in the pipeline.
Unfortunately, evidence has arisen that has shown the banks have not been honest in their foreclosure practices. The recent robo-signing crisis brought to light the fraudulent practices of the nation’s banks, who hired individuals who have been dubbed “robo-signers” to process hundreds of foreclosure affidavits every day. This does not provide assurance that the banks’ claims against borrowers are documented and accurate, which they are required to prove legally.
The robo-signing predicament is a national problem, and the fraudulent practices of mortgage companies and banks have affected Americans across the country. To learn more about your rights as a homeowner in New Jersey, contact the Law Offices of Robert Manchel. Our New Jersey foreclosure lawyers can help you understand your legal options during this difficult time. Call us today at 866-503-5655.

The Wall Street Journal reports that Bank of America will be restarting over 16,000 foreclosure cases across the United States. However, it could take many weeks before it is known whether or not the new documents the bank has submitted will be approved by local judges. This announcement does not conflict with the bank’s previous declaration to observe its regular holiday foreclosure freezing policy. The freeze does not affect the loans the bank services that are held by investors who have chosen not to participate in the voluntary freeze, or for homes that have already been vacated.
The bank instructed its foreclosure lawyers to ready new affidavits for approximately 7,800 cases where it is required to obtain court approval before foreclosing on a home. Currently the bank has over 102,000 homes that are essentially frozen by the bank because of recent documentation and “robo-signing” concerns. Bank of America lawyers were also asked to lift the hold on over 8,000 foreclosure sales out of 30,000 that have been delayed in states where court approval is not required.
Previously, Bank of America had stated they would resubmit affidavits for foreclosures that were pending starting on October 25 for foreclosure sales to resume in early November. However, their efforts struck several roadblocks, including hiring new law offices to handle foreclosure paperwork. Only a handful of cases were re-filed. A spokesperson for the bank stated they were taking a deliberate approach to the situation.
Other U.S. banks are reviving their foreclosure processes following internal reviews. J.P. Morgan Chase & Co. announced that it has begun re-filing affidavits for foreclosures on a state-by-state basis. A spokesperson for Wells Fargo & Co. stated the bank has readied over 46,000 supplemental affidavits in foreclosure cases where it is required to obtain court approval and 94 percent have been given to outside counsel to be submitted to the courts. Thus far, the bank alleges it hasn’t discovered any cases where a foreclosure should not have occurred.
The 16,000 foreclosure cases that Bank of America is reopening involve properties that are vacant or homes that were rented to other occupants. Both present less of a risk for a legal challenge. The majority of these cases are in California, Florida, Georgia, Michigan, and Texas. A spokesperson for the bank says it will take them approximately six days to review and then approve each newly readied affidavit. However, it may take some courts many weeks for a hearing to be scheduled. Regarding the remaining affidavits that need to be replaced, Bank of America expects to file them early in 2011.
The unethical behavior by banks and mortgage companies have affected all Americans who are struggling financially or who are currently going through foreclosure. If you have questions about the foreclosure process or bankruptcy in New Jersey, contact the Law Offices of Robert Manchel. Our New Jersey foreclosure lawyers can help you determine the best course of legal action for your specific situation. Call us today at 866-503-5655.

CNN.com recently reported that several big mortgage companies and banks have stated they won’t evict borrowers who have defaulted on their payments during the weeks that surround Christmas, essentially initiating a freeze on foreclosures during the holiday season. Both Freddie Mac and Fannie Mae announced they will freeze all foreclosure evictions on mortgage loans they currently back or own from December 20 through January 3. The two companies are controlled by the government.
One of the executive vice presidents at Freddie Mac, Anthony Renzi, stated, “If the property is occupied, our foreclosure attorneys will suspend the eviction to provide a greater measure of certainty to families during the holidays.”
In foreclosure, eviction marks the completion of the process. After a house is sold at a foreclosure auction, or if the bank takes possession of the house, the owners are required to vacate the property or they will face eviction notices.
Many large banks are also in a unique position this holiday season as investigations regarding robo-signers are underway. Typically banks also observe a freeze during the holidays, but this year there is already a freeze in place because of the scandal. The freeze was instigated to allow the banks time to scrutinize whether any legal procedures were violated in their foreclosure processing, as well as to allow time to re-file any questionable documents that were discovered.
Bank of America said it will still observe its regular holiday policy, which is to hold off on foreclosure evictions or sales from late December through New Years’. However, it will continue the process of foreclosure for loans it services that are held by investors who have opted not to participate in the freeze, and for houses that are already vacant.
Wells Fargo’s holiday freeze will run the same time period as Freddie Mac’s and Fannie Mae’s. Like Bank of America, their freeze will not affect other loans it services that they do not hold in its portfolio, and will follow investors’ guidelines from the states where the properties are located.
Chase Mortgage, a division of J.P. Morgan Chase has stated that suspension connected with the robo-signing scandal essentially makes a holiday freeze a moot point. The company will not be able to evict borrowers for several weeks regardless of whether they instated a freeze.
There are about 100,000 bank repossessions in the United States each month. The temporary amnesty the mortgage companies and banks will initiate will affect tens of thousands of defaulted borrowers, allowing them to have a peaceful holiday season.
If you have questions about filing for bankruptcy or mortgage foreclosures in New Jersey, please don’t hesitate to contact experienced and highly skilled New Jersey mortgage foreclosure lawyer Robert Manchel. He can examine the circumstances surrounding your situation and can help you make the best possible decision for your financial future. Call Mr. Manchel today at 866-503-5655.

A recent article on CNN.com discussed guidelines that many states in the U.S. issued shortly before this past election, regarding the complex subject of voting while someone’s home is in the foreclosure process. Normally, people register to vote in whatever county they reside, but residency can be difficult in the midst of foreclosure. Often, individuals going through foreclosure drift from rental house to rental house or often live with friends or family.
While each state in the U.S. has its own laws regarding this topic, typically, if an individual owns a home that is in foreclosure, it doesn’t affect their right to vote, but it could affect where they vote. In a recent report, over 3 million homes in the U.S. are going through the process of foreclosure, and that’s a lot of potential votes that could sway an election.
The U.S. Election Assistance Commission issued guidelines on how to register to vote for individuals who are going through foreclosure:

• If you have recently moved, you will have to re-register, if you’ve moved out of county or state. If you have moved within your county, you will need to update your address.
• In most states in the U.S., you can change your address until Election Day, or you can vote with a provisional ballot, if your name isn’t on the voter rolls.
• If the foreclosure process commenced against your home, but you haven’t moved, you are still registered to vote within that precinct.
• If the foreclosure process is finished, you will need to update your voter registration with your new address.
• If you don’t have a permanent address, most states permit you to use the address of the foreclosed property.

Going through foreclosure can affect a person’s life in many ways, besides just dictating where someone votes. It can impact an individual’s health, as the complex process brings added stress into their lives. Foreclosure can also affect a person’s personal life and strain their relationships with family and friends. With the holidays approaching, foreclosure can also determine whether a family is able to travel due to tightened finances.
Foreclosure is a decision that must be made carefully. It could be a wise decision to talk with a New Jersey attorney to learn how filing for bankruptcy can affect all aspects of your life. For more information, contact the Law Offices of Robert Manchel, and our lawyers can help you decide the best course of action during these hard times. Call us today at 866-503-5655.