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24

Mar 2020

Bankruptcy Trustee Hearings Postponed Due to Virus

Posted by / in Blog, Virginia Bankruptcy, Weekly Posts /

The Bankruptcy Court is Alexandria is Postponing the Trustee Hearings.

Because of the corona virus, bankruptcy hearings in Alexandria VA scheduled up through April 10 are postponed. (I’m guessing the rest of April will get postponed, too.)

Postponed Until When?

There’s no news on when they will be reschedule, or how.

Some courts have adopted call-in hearings. No word on that here.

What do I need to do?

The bankruptcy trustees are still nagging us to get the bank statements in on schedule. So if you haven’t sent us your bank statements or your 2019 tax papers, please send those in to your paralegal.  And I’m guessing they will want you to send in a proof of your drivers license and social security card. So take that picture now, so you have it. (Or scan, if you have a scanner.) 

Don’t forget to take the second class.

And if you haven’t yet, don’t forget to take the second class, at Moneysharp.

 

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23

Mar 2020

Many Foreclosures Get a Virus Hold

Posted by / in Blog, Weekly Posts /

The Federal Government is Pausing Foreclosures on Mortgages They Control.

Last week the Federal Housing Finance Agency announced a 60 day pause on foreclosures on mortgage loans the government controls. Those are mortgage loans controlled by Fannie Mae or Freddie Mac.  (Fannie and Freddie were government backed, private businesses. The government bailed them out during the housing crisis in 2008, and they are still pretty much government run.)

Are you wondering if this applies to your mortgage?

Both Freddie and Fannie have websites where you can see if they own your loan.

Here’s the Freddie lookup.

Here’s the lookup for Fannie.  

Foreclosure notice

In March, the government announced a 60 day foreclosure pause, on mortgages the government controls.

Does this apply to any other loans? FHA and VA

The 60 pause also applies to loans backed by the FHA–Federal Housing administration. There doesn’t seem to be any one place you can look up whether your loan is an FHA loan.  I sometimes see it on some credit reports. (Sometime’s isn’t much help.) Your closing papers when you financed the house are supposed to show that somewhere. And I guess you can call your mortgage servicer and ask.

The 60 pause also applies to loans backed by the VA.

 

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15

Mar 2020

Virus update–March trustee hearings cancelled

Posted by / in Blog, Weekly Posts /

Virus update–March trustee hearings cancelled.

No rescheduling plan has been announced yet. (Will there be a call-in plan instead??)

The Judges here in the Alexandria VA bankruptcy court have invited the lawyers to a conference call on Wednesday. We may know more after that.

Bankruptcy trustee hearings are at 1376 Duke Street

This is a picture of 1376 Duke St. Trustee hearings, which are held here, are suspended through March.

This announcement applies only to the trustee hearings.  Those are the ones that take place at 1725 Duke Street.  The court hearings, at 200 S Washington Street–those are still on.

 

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12

Mar 2020

After Bankruptcy, OneMain Offers Car Reaffirmation Negotiation

Posted by / in After Bankruptcy, Blog /

In the last few months, OneMain has been contacting me about reaffirmation negotiation on car loans.

That took me by surprise.

With the exception of Ford Credit, I’ve been strongly opposed to reaffirming cars.  Usually you can keep the car without reaffirming. and then give it back when your credit improves. I explain more about that, here. 

Car reaffirmation take it or leave it

Most car reaffirmations come to me on original terms, full balance, take it or leave it. OneMain is NOT doing that.

OneMain figured out that they don’t want you to give them the car back when your credit improves, so they are offering you a better deal now. Up ’til now, I had never seen a car finance company really offer car reaffirmation negotiation. They wanted people to reaffirm the entire balance at the current interest rate on a take it or leave it basis. 

But OneMain has come through with real balance and interest reductions. Taking a terrible loan and making it pretty good. If that’s on a car that you have been taking good care of–and been lucky to avoid problems with–then that makes sense.

Basically, here’s how this works. Get an accurate value on your car. Kelly Blue Book is one place. (Carmax offers on line, here.) We need to email OneMain, at this email cbp@omf.com, with the Blue Book value and say we’re willing to reaffirm based on that value at 6.0%.  

OneMain then will send back a reaffirmation on that basis. At least a lot of the time. (Sometimes I’ve seen them add a little.)

PS  I need to apologize to one of my clients last year, Kandy. Kandy believed OneMain’s offer when I thought it was just more smoke and mirrors. She was right and I was wrong. OneMain does seem to genuinely be willing to work out a new deal for you to keep the car.  This is my apology, Kandy.

 

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31

Jan 2020

Bankruptcy Solves Rod’s Security Clearance Problem

Posted by / in Blog, Weekly Posts /

Two weeks after filing bankruptcy, Rod got his security clearance.

Rod contacted me from a military base in the Midwest. The military wanted to give him a new assignment, in the DC area, with more responsibility. His wife and children had already rented a place and moved, while he was awaiting orders.

 

At the last minute, he couldn’t go.

 

Rod’s credit had gotten messed up with a repossession and he couldn’t get cleared to take his new assignment. So, he called me.

 

File bankruptcy to clear car repossession and get security clearance.

Rod’s credit had gotten messed up with a car repossession. So he could get his security clearance.

His chain of command told him he needed to file bankruptcy right away.

 

We got the papers signed and sent into the court within a week.

 

Five weeks later we met at his bankruptcy hearing. Rod told me he had been cleared to take the new job three days after his bankruptcy was filed. He was on the job in two weeks. Life was great.

 

Have you heard filing bankruptcy is bad for your security clearance?

 

Many people still believe that filing bankruptcy will damage your security clearance. (I talked to one just last week.)

 

Rod’s experience shows the opposite.

 

Now for sure, the best thing is to never get into financial trouble. But if you do, the military wants you to clear it up. NOT cover it up.

 

The chain of command really wanted Rod in that job. But they couldn’t get him cleared until he cleaned up his credit. Bankruptcy cleaned up his credit.

 

(Careful readers may have three questions. First, was Rod eligible to file in Virginia? Rod had signed a lease three months before, and had moved his family. I said Rod became a resident when he signed the lease. And nobody had any reason to question it. Second, did I have Rod sign the papers without ever meeting him in person? Yes I did. That’s strongly discouraged, but since he was away on military assignment, I decided in this case it would be OK. And I was careful to get enough ID I was sure I knew who I was talking to. Third, is this typical? No. I’ve NEVER heard of a security clearance problem being fixed in three days. Obviously the chain of command really wanted Rod available for this job.)

 

 

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