Bank Of America Halts All Foreclosures – Breaking News

**BREAKING NEWS** Today, Bank of America announced that it is temporarily suspending all residential foreclosures in all 50 states to allow then to further investigate reports of widespread fraud in the mortgage loan servicing industry’s handling of foreclosures. This represents a giant leap forward for consumers who have for years complained that mortgage loan servicing companies have ignored all laws related to mortgage underwriting, servicing and foreclosure. In recent days, several mortgage giants – GMAC, its parent Ally Bank, Chase and PNC have all voluntarily suspended foreclosures, but only in states where judicial foreclosure is required. Bank of America appears to be the only bank who has ceased all foreclosure activity pending its own investigation [more . . .]

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As The Economy Grinds, Bankruptcy Just Got Harder . . .

Under the BAPCPA (the 2005 Amendments to the Bankruptcy Code), to file Chapter 7 bankruptcy, a debtor must pass a test. The test is in some respects very simple, and in others very complex. The very first step (which can be relatively easy) is to compare a debtor’s income to the median income for the State in which they live. These “median income numbers” are published by the Federal Government, and are adjusted annually. Come November 1, 2009, for the first time since the law was implemented, the median income for most states is going down [more . . .]

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