Finance Articles
Develop Your Domain Names
Mortgage Crisis Leads to a 350% Jump in Instances of Lenders Pursuing Deficiency Judgments; Forces Homeowners to Protect Assets from Lenders
Los Angeles, CA (PRWEB) April 4, 2008 -- Law firm Klueger & Stein, LLP notes a 350% increase in instances of lenders seeking deficiency judgments or pursuing aggresive collection tactics against defaulting borrowers for the period of September 2007 to March 2008. The increasing rate of mortgage foreclosures and aggresive collection tactics by the lenders is forcing homeowners and real estate investors to seek ways to protect their assets.
As the political fallout of the mortgage meltdown plays out in Washington, D.C., banks and mortgage lenders are quietly trying to collect as much as they can from defaulting borrowers.
"Banks used to foreclose on defaulted mortgages and eat their losses. Now, if the foreclosure results in a deficiency, many lenders will pursue the borrower and try to collect on the deficiency," states Jacob Stein (http://en.wikipedia.org/wiki/Jacob_Stein), an asset protection attorney and a partner at the Los Angeles law firm of Klueger & Stein, LLP (http://www.maximumassetprotection.com).
In many states if the foreclosure sale does not result in a full pay off of the amount owed to a lender, the lender can sue the borrower, obtain a judgment and then use that judgment to collect against the borrower's personal assets. All states allow deficiency judgments for investment real estate.
"We are seeing a lot of clients who have bought investment properties and can no longer make mortgage payments. The properties are upside-down, and these borrowers understand that there is a good chance their bank will try to collect the deficiency amount from them, especially when a personal guaranty has been signed. Before that happens, many of them seek to insulate their other assets from lawsuits," continues Stein.
According to Klueger & Stein, LLP, from September 2007 to March 2008 there has been a 350% increase of instances when lenders would seek a deficiency judgment. In Jacob Stein's estimation, "Banks want to look good to their shareholders and make up for the bad loans and bad decisions of the past few years. So they are aggressively pursuing defaulting borrowers."
Asset protection is a field of law that deals with sheltering assets from claims of creditors. Demand for asset protection generally increases during an economic downturn. As businesses and individuals become unable to satisfy their obligations, they turn to asset protection to protect their assets from eventual lawsuits by creditors.
In many instances it is impossible for borrowers to make their assets completely unreachable to a would-be creditor. Especially when the creditor is a bank; banks tend to make for aggressive creditors. But with an asset protection plan in place assets can be made very difficult and very expensive to reach, forcing banks and lenders to agree to much lower payoff amounts.
"When defaulting borrowers structure an asset protection plan, we generally see lenders a lot more receptive to settlements that are favorable to borrowers," states Stein, "frequently, they will even abandon their collection efforts."
The asset protection industry has never experienced such a wide-spread demand for its services as it is experiencing now from the mortgage sector. "We generally see clients from all walks of life and all industry groups. But over the past 8 months we have represented well over a hundred borrowers and real estate investors who are anticipating defaulting on their mortgages in the near future."
Attorney Jacob Stein and the law firm of Klueger & Stein, LLP provide asset protection services to high net-worth clients, nationwide. Klueger & Stein, LLP is the nation's leading asset protection law firm, with over 30 years of experience and successful representation of over 3,000 clients. The firm has set up an educational website about asset protection services and structures. The website can be found at www.maximumassetprotection.com.
###
Other Article Sites
findabook.com moneycd.info a-mortgage.info
about-lemon-laws.info aboutstudentloans.info
all-about-publishing.info auctions-articles.info bestcollege-university.com bestispconnection.com
biblefolder.com blogger-website.com books-used.info brokers-guide.info buywindows.info cable-dsl.info
career-miner.com carpel-tunnel.info cashinaflash.info cashloanreviews.info casinobell.com chat-house.info
clearmycredit.info collegeloantips.info crones.info depression-articles.info
dirnic.net dishguides.info
divers-below.com expodog.info
financewizz.com fire-insurance.info getgood.info handleit.net
it-idea.info
health-supplies.info hosting-right.com insidealert.com insurance-facts.info jobs-employment.info
justgood.info lookgold.net
lowcost-travel.info money-source.info myhostzone.info numisblog.com
peoplesearchfinder.info pr-articles.info realeas.com
refinancing-guides.info spyware-remove.info
telelot.info the-law.info
toppaid.info travel-deals.info travelcorrect.com wedding-guide-site.com
your-blog.info your-credit.info
Searching for Mortgage Rates-How to Utilize the Internet
Anyone who has every had to look for a mortgage will tell you how important it is to check various mortgage rates to ensure that you are getting the best interest rate and the best mortgage for you and your finances. In the past, searching for mortgage rates meant calling lenders and finding out what their rates were, as well as their terms. This was a long process that many people balked at - and many didn't do at all because of the amount of time that it took. However, now you're in luck. Finding mortgage rates for comparison has never been easier thanks to the Internet.
Mortgage Payment Cover Still Facing Problems
Mortgage payment cover is still facing many problems and faith badly needs restoring. Mortgage protection is one of a family of protection policies that can be taken out to safeguard against you becoming out of work. If you are incapacitated to the point where you cannot attend work after suffering from an accident or an illness, or if you should become unemployed such as through redundancy, a policy could help.
What Is A Reverse Mortgage And What Are Its Benefits?
When it comes time to think about the future because you are getting older and closer to retirement, you may want to consider getting a reverse mortgage for your home. This is a rather new thing among mortgages, but it can provide you with a stable income until you no longer have need of the house. Here are some things you should know about a reverse mortgage.
School's In: Home Loan U Educates Consumers Before Shopping for a Mortgage
With all the turmoil in the mortgage market, it is more important than ever that consumers be informed and educated about the entire lending process and are diligent in selecting a reputable lender. To help with this, Quicken Loans, one of the nation's largest mortgage lenders, has recently created Home Loan U, a series of personal finance education guides that are available as free downloads at http://www.HomeLoanU.com
Share Trading, Derivative Trading and Investment in IPO with Kotak Securities - Online Trading India
With the derivatives trading and derivatives strategy that is offered from Kotak you are sure to make a mark in already big derivatives market. The managers offering new new derivatives strategies to help you in derivatives trading and making immense profit out of this ever-growing market. Constant fluctuations in the market and the changing trend of the market have made many investors grow beyond their imagination. Why not take part in the growing market with our expertise.
How Can You Finance A Mortgage?
Most homeowners purchase their houses through mortgage finance or a loan. There have been many changes in home mortgage financing and loans in the past ten years, bringing many benefits to homebuyers. These changes also bring some significant tradeoffs. The greatest benefit a homeowner received from the changes in mortgage finance is that there are more choices. More choice means a homebuyer can effectively shop around for the best mortgage finance deals and make better decisions.
Buyers Searching for Their Next Home or Investment Property in Florida Has Just Gotten Easier
Buyers can find their next home or investment property in the Northeast Florida real estate area without giving out their personal information, no hassles and using the latest Google mapping and search criteria technology.
Telecomworx Announced a New Partnership with First Guardian Mortgage Corporation and Dexter Manley
Telecomworx a telecommunications interconnect services firm offering traditional and IP-PBX systems and network services since 1979, announced a new partnership with First Guardian Mortgage Corporation and Dexter Manley.
Libya Plans Ambitious Tourism Makeover -- Predicts Free Zones Will Spur Investment, According to Phoenicia Group
Libya gets serious about upgrading tourism infrastructure.
How to Avoid Paying Mortgage Insurance
In today's world, a borrower should not be paying mortgage insurance (PMI) on their home mortgage with a few exceptions such as an FHA loan. Mortgage Insurance is a thing of the past.
Thought You Can Go All Alone In Mortgages! Mortgage Advice Beneficial In All Important Decisions
Mortgages are easy as long as you understand them well. But how many borrowers can be confident of their knowledge of mortgages.
Website Globalization Investment Strategies Should Favor Fewer Countries and Languages; Findings Detailed in New Research by Common Sense Advisory
Report unveils concept of internet-accessible wealth ("e-GDP"); outlining the nations and languages with the most return on website globalization investment
Key Points About Reducing Your Mortgage Bill
A standard variable rate mortgage (SVR for short) is the standard lending rate offered by loan providers. It will generally follow the Bank of England Base Rate, going higher and lower inline with it. Lenders will most frequently charge you 1% or 2% higher than the Base Rate as their SVR. The implication is that in the event the Base rate starts to go up so will your mortgage, and so you have the term 'variable' since your repayments might vary.
Debit Finance In China
Registered Capital vs. Total Investment
Investment Property Specialist Makes 3 New Money-Making Investment Properties Available to Real Estate Investors
Investment property specialist Alex Anderson presents 3 new real estate investment-opportunities for beginning to intermediate investors who are seeking to purchase high-quality and money-making investment properties.
