Out of bankruptcy, perhaps not. In bankruptcy is a different matter. If the 2nd lienholder fears a depreciating asset, payments or not, he may be inclined to stop the bleeding to protect his asset. Remember, most mortgage payments do not return to principal.
I believe they can. The only case I have seen where this happened, the Bankruptcy Court Judge/Central District, tossed the request out because the 2nd mortgage had not been perfected. (late filing I think). Note that the judge did not choose to take the simpler course which would have been to disallow the petition. I am led to believe the IBP was spot on.
I believe they can. The only case I have seen where this happened, the Bankruptcy Court Judge/Central District, tossed the request out because the 2nd mortgage had not been perfected. (late filing I think). Note that the judge did not choose to take the simpler course which would have been to disallow the petition. I am led to believe the IBP was spot on.
With such a large set of , overvalued real estate, now upside-downed, 1-2 new home mortgage purchases, bankruptcy lawyers, adversarial and defending, should be having several field years, er days, er years.
I'm not going to try and predict where we'll be this time next year, there are too many factors involved including the alt-a's, a new president, congressional involvement, and the possibility of investors moving into real-estate to escape the stock market. But I can say with pretty good confidence that Lis Pendens filings and modifications for all of Walton have peaked for 08.
The important thing to note though if you're in the market - foreclosures take anywhere from 6-12 months on average to complete from the first filing. So while legal activity has peaked, most of these homes won't be landing in the market till next spring. Which leads me to believe prices still have a signifigant downside to them going forward. If you're buying today, you're probably paying too much.
In the specific example of finding two preferred, secured mortgagees/creditors (I believe the creditors must be in the same class) - with the Fed bailing out, er, buying out old debt - we shall see what we shall see.
