San Francisco Bankruptcy Lawyer Blog

John Lauderdale, from Carmel, CA, has credits for being the stage manager for Jeopardy, Wheel of Fortune, and American Gladiators. It is amazing how some shows and people have staying power while celebrities once on top have unexpectedly divorced and left in financial ruin.

Jon Gosselin, former star of "Jon & Kate Plus 8" faced severe financial difficulties with an unsold home and mounting debts in 2009 after earning more than $2 million with Kate from their TV show. With the divorce, Kate still got gigs with her own show and on Dancing with the Stars. According to www.californiafamilylawblog.com, Jon, with $13,000 per month in child support and $90,000 to family law attorneys, was looking at the possibility of a Chapter 13 bankruptcy filing.

Prior to his death, Gary Coleman blamed his financial woes on mismanaged finances and a lifelong medical condition.

Kevin Coster and Cindy Silva's divorce cost an estimated $80 million.

After eight years of dating, Harrison Ford and Calista Flockhart got married in June 2010 in New Mexico, where Ford is filming "Cowboys and Aliens." Harrison Ford's 2004 divorce from Melissa Mathison cost an estimated $85 million.

Marion Jones won five medals at the Olympics in 2000 and signed multimillion-dollar endorsement afterwards, but after allegations of steroid use, she spent a significant amount of money on legal representation to fight the allegations. The legal distractions cost her major international meets. When Jones became deep in debt, and $2.5 million mansion went through mortgage foreclosure.

Mike Tyson filed bankruptcy in 2003 after spending on cars, mansions, and a defense for rape.

Donald Trump filed for Chapter 11 protection in 2004 and 2009 to reorganize debts related to construction.

Olympic Gold Medal ice skater Dorothy Hamill came into difficult times and made a choice to file for bankruptcy in 1996.

Continue reading "Celebrity Bankruptcies" »

USA Today reported on June 16, 2010 that families in homeless shelters increased in 2009. According to the US Department of Housing and Urban Development, the numbers increased 7% to 170,129 from fiscal year 2008 through fiscal year 2009.

In early July 2010, there was a protest in Santa Cruz against a law prohibiting people from sleeping on the streets.

People walking the streets in downtown San Francisco can probably see that the homeless population has increased in the past year with more sleeping bags on the streets. While those with jobs are busy commuting to and from their homes thinking that having a computer server down could be the most tragic thing in the world, the homeless are sleeping in the middle of the day seemingly without any other goals or purpose to live, and lining up for free meals and groceries at churches such as Glide Memorial, All Saints' Episcopal, and Calvary United Methodist

The US Department of Housing and Urban Development annual report counted the homeless through a census where volunteers went out during the last week in January 2010 to count those living on the streets and in shelters. That count came out to 643,000 people. The second count involved a year-long analysis of shelter data in 334 communities. The study showed many people rented or lived with family before going on the streets.

Continue reading "Homeless Shelters - San Francisco" »

In May 2010, the Mortgage Bankers Association released its latest national delinquency survey. According to the survey, the "delinquency rate for mortgage loans on one-to-four-unit residential properties increased to a seasonally adjusted rate of 10.06 percent of all loans outstanding as of the end of the first quarter of 2010, an increase of 59 basis points from the fourth quarter of 2009, and up 94 basis points from one year ago."

At the same time, the survey reported the non-seasonally adjusted delinquency rate decreased from 10.44% in the fourth quarter of 2009 to 9.38% in the first quarter, and the rate of serious delinquencies declined to 9.54% in the first quarter, down 13 basis points from the fourth quarter. Serious delinquencies are loans more than 90 days past due.

The new foreclosures remained flat, at 1.23% of outstanding loans, up 3 basis points from the fourth quarter and down 14 basis points from the 2009 first quarter.

If you have any questions with regard to bankruptcy or foreclosures, please contact our office at 1-800-303-2964. Rinne Legal is located at 1990 North California Blvd., Walnut Creek, California 94596, with additional offices in Fairfield, Oakland, and Sacramento. Rinne Legal offers free initial consultations.

With continued high unemployment, more homeowners are unable to make their monthly mortgage or sell their homes at prices that generate enough to pay off lenders. Many homeowners are forced to consider short sales as an alternative hoping to at least protect their credit. Rather than letting a house go into foreclosure, a short sale is a sale of property for less than the outstanding loans.

A short sale requires lender consent. The homeowner conveys title to the lender free of mortgages, but the lender may still keep liens until it is paid in full, or willing to accept less than the loan amount. If the primary lender accepts a short sale, the secondary lender like a line of credit does not necessarily need to agree to wipe out its loan - even when it seems like the same bank that issued the mortgage and the equity line of credit. The two entities are thought of as separate companies, and the entity that gave the line of credit can file a breach of contract claim against the borrower when a short sale does not offer enough payoff money.

A short sale can affect a homeowner with tax liabilities. The homeowner getting a break on not having to payback an entire loan amount can be taxed on the difference because the write off is considered income.

If you have any questions with regard to bankruptcy or foreclosures, please contact our office at 1-800-303-2964. Rinne Legal is located at 1990 North California Blvd., Walnut Creek, California 94596, with additional offices in Fairfield, Oakland, and Sacramento. Rinne Legal offers free initial consultations.

When negotiating a loan modification, resolving a foreclosure issue with a creditor, or dealing with financial conflicts, there may be difficult communications on the concept of reality. Move from reality to interpretation, truth to perception, blame to perspective, and intent to contribution.

Webster's New Collegiate Dictionary defines a fact as:

• Something that has actual existence
• An actual occurrence, existing independent of mind
• A piece of information having objective reality

Then Webster's defines an interpretation as:

• To conceive in the light of individual belief, judgment, or circumstance.

On January 30, 2010 Kimberly Wiefling, Global Business Leadership Consultant, taught in her seminar "Creating a Vision for Your Future" in Redwood City, CA that generous listening is a method to open possibilities from conversation. Phrases for generous listening include:

• Tell me more
• What would that make possible
• Interesting! Say more about that
• Go on...What else
• Help me understand

When negotiating difficult situations, act "as if" to gain confidence in guaranteeing success. Impostersyndrome.com speaks about not getting distracted by daily tasks such as checking emails that takes the eye away from ultimate goals. The future cannot be reached by doing more of the routine.

Understand the problem to begin to partially solve it. Do not ask the other party "why" to challenge the other party and put it on the defense. Do not get stuck on meeting the practical. Create something discontinuous from the past like trying on a coat. Experience something new to have a choice, not necessarily buying it. In negotiations, let the other party speak in order for that party to clarify its ideas. It is not about actually listening or taking notes, but letting the other person have a chance at a prize. Even when the other person gets a prize, there are still plenty of prizes left to go around.

Continue reading "Fact versus Interpretation" »

The following is a fictitious scenario:

Ted announces on LinkedIn that his job is being eliminated. Ted came in as a temp at Formaldehyde 4 years ago. Ted graduated from a nontraditional college. It was after his divorce that he went back to school. He has a 28-year-old daughter, Stacey, who lost her inside sales job in a prior round of layoffs. Ted remarried two years ago to a woman he met on match.com. It must be frustrating for Ted because his wife also lost her job in 7 months ago. She was in business development, and has not landed. One company made her go through 4 rounds of interviews before rejecting her. But, she makes every moment belong. She started making furniture out of wine barrels, developing an unbelievable web site with a shopping cart to market the chairs and tables. They bought a truck to haul the furniture to wineries on weekends to find buyers. His wife also passed a life insurance exam and started selling policies to friends. She's still interviewing for business development positions, but she doesn't give unemployment a value out of proportion to its merit.

Continue reading "Thinking Outside the Box" »

On January 8, 2010, the New York Times reported that Giuseppa Bagnarol, 82, was dying at home in Redwood City when a process server delivered papers that ordered Mrs. Bagnarol and her family to leave. Wells Fargo, formerly Wachovia, formerly World Savings had foreclosed on the property bought in 1994 for $535,000. Wells Fargo had a policy against negative amortization loans, but finds itself dealing with the loans of its predecessors.

A lawsuit has been filed alleging elder abuse from predatory lending. According to the New York Times, the lawsuit argues that Mrs. Bagnarol was pursued to take out new mortgages when Mrs. Bagnarol was in her late 70s, suffering from the onset of dementia. She refinanced the property with a $1.5 million loan in December 2006 with monthly payments rising to $14,541.32 from $5,176.81, skyrocketing to $1,640,000 by December 2008.

Michael Rooney is the San Francisco lawyer representing the family in the lawsuit. The loan terms involved negative amortization and adjustable rate. Negative amortization arises when the payment made by the borrower is less than the interest due and the difference is added to the loan balance. Rooney specializes in contract negotiation and breach, real estate, consumer predatory lending claims, commercial mortgage modification, and makes special appearances on behalf of attorneys of record who cannot appear themselves to court hearings, depositions, arbitrations, and mediations in Marin, Alameda, San Francisco, Contra Costa, and San Mateo counties.

Loans Mrs. Bagnarol received were sold under names like Option/ARM where borrowers made minimum payments that did not cover the entire amount due. The balance was then added back into the loan, increasing the debt.

In 2009, Gov. Arnold Schwarzenegger signed laws making it illegal to write negative amortization loans in California.

Continue reading "Barbary Coast Foreclosure Crisis" »

In a speech at the Economic Club of Washington on December 7, 2009, Federal Reserve Chairman Ben S. Bernanke addressed frequently asked questions on Federal Reserve:

1. What has the Federal Reserve been doing to support the economy and the financial system?
2. Will the Federal Reserve's actions lead to higher inflation?
3. How can we avoid a similar crisis in the future?

Bernanke stated improving conditions in housing, consumer expenditure, business investment and global economic activity, but tight credit conditions and a weak job market remain. The Federal Reserve purchased "unprecedented volumes" of mortgage-related securities and Treasury debt.

After Bernanke's speech, on December 8, 2009, the House Financial Services Committee held a hearing entitled "The Private Sector and Government Response to the Mortgage Foreclosure Crisis" to review the results of the federal government's actions in preventing additional mortgage foreclosures and encouraging existing loan modifications. Chairman Barney Frank (D-MA) opened the hearing with frustration of the Committee and the public with the federal government's failure to prevent mortgage foreclosures. Committee Member Ron Klein (D-FL) said the problem with the Making Home Affordable program was the lack of documentation. JPMorgan Chase offered over 560,000 modifications to struggling homeowners through November 30, 2009, and had approved or completed over 112,000 permanent modifications under the Making Home Affordable program. Bank of America had over 160,000 customers enrolled in a trial modification program and, combined with Bank of America's loan modification programs, over 615,000 homeowners modified their loans.

These loan modification concerns raise the issue whether a lender's failure to offer loan modification is privately actionable. California has a loan modification law under Civil Code 2923.6. A district court in Fresno in Nool v. Homeq Servicing, No. 1:09-CV-0885 OWW (E.D. Cal., Sept. 4, 2009), Judge Wanger held that "the language of section (b) belies the imposition of any duty to engage in loan modification discussions, as the provision merely expresses legislative 'intent' that the mortgagee, beneficiary, or authorized agent offer the borrower a loan modification if doing so is consistent with its authority." Another case agreeing with Judge Wanger is Farner v. Countrywide Home Loans, 2009 WL 189025, at *2 (S.D. Cal. Jan.26, 2009) ("[N]othing in Cal. Civ.Code § 2923.6 imposes a duty on servicers of loans to modify the terms of loans or creates a private right of action for borrowers.").

To listen to a bankruptcy audio on mortgage cram downs and strip downs (Teleconference recorded on Dec 13, 2009 with special guest: Leanne Levett, Esq, a foreclosure specialist in Florida), go to: http://www.713training.com/mortgagecramdown/

Continue reading "Where is the Economy Headed?" »

February 19 promises to be a memorable - even historic - day at British Columbia's Whistler-Blackcomb ski resort. That morning the world's top male alpine ski racers are scheduled to compete at Whistler in the Super-G event of the Winter Olympics. In the late afternoon the medal runs of both the men's and women's Skeleton will take place at Blackcomb's Olympic Sliding Center. Separate from the Olympic hoopla, February 19 is also the day creditors of Whistler-Blackcomb's owner, Intrawest, have set to sell the resort at a foreclosure auction.

Last October Intrawest's owner, a New York-based hedge fund named Fortress Investment Group, missed a $524 million debt payment related to its acquisition of Intrawest in 2006. Last week the creditors, led by Lehman Brothers, announced plans to move forward with the foreclosure sale. Intrawest is a Canadian company, based in Vancouver, but also owns a number of prominent US ski resorts including Winter Park and Steamboat in Colorado, Stratton in Vermont and Snowshoe in West Virginia. Here in California Intrawest runs a large residential resort property at Squaw Valley, though it does not own the ski resort itself.

Vancouver Olympic organizers are clearly a bit embarrassed by the timing of the foreclosure sale but insist it will have no effect on next month's Winter Games.

The take away from this high-profile foreclosure is the importance of managing the debtor-creditor relationship when financial troubles hit. Regardless of the size of the foreclosure you are facing, a San Francisco foreclosure attorney can be a key ally as you work to smooth your way through difficult financial times. An experienced Bay Area bankruptcy and foreclosure professional can assist in negotiations with creditors as well as prepare court filings and other legal paperwork associated with a Northern California foreclosure.

FirstTracksOnline: Ski resort operator Intrawest downplays foreclosure rumors

Toronto Star: Whistler Olympic ski venue faces foreclosure

The Irvine-based data company RealtyTrac predicts that 2010 foreclosures will touch the 3 million mark, surpassing even 2009's record total of 2.82 million, according to a recent article published by Bloomberg News.

The news service also quotes a Berkeley professor saying "this will be the peak year" for California foreclosures, with the rising numbers spurred by persistent high unemployment and housing prices that have only barely begun to recover from the drop-off of the last two years.

This is, in short, an economy in which a San Francisco foreclosure attorney remains a key resource if you are struggling to make ends meet in a slowly recovering economy. As Bloomberg notes, the Obama administration has targeted 4 million homeowners nationwide for mortgage relief. Lenders, however, have been reluctant to move ahead with administration-supported loan modification programs. As a result only about 31,000 homeowners actually received 2009 mortgage loan modifications designed to help them avoid foreclosure.

The California foreclosure process can be complex and emotionally stressful. Especially in hard-hit portions of the East Bay, an Alameda County or Contra Costa County foreclosure lawyer can be a key ally, helping you navigate the process and making difficult legalisms understandable.

Bloomberg: U.S. foreclosures may rise to 3 million this year

A recent ABC News profile highlights the fact that Stockton, California was, for much of last year, the single hardest-hit community in the country in terms of America's housing crisis. At one point, 10% of all the city's homes were in California foreclosure. Some homeowners have seen their pre-crash $500,000 homes drop in value to around $200,000 today.

The ongoing distress in Northern California highlights the need for advice from a strong, experienced Bay Area foreclosure lawyer when you are facing this difficult situation. A Stockton or Walnut Creek foreclosure attorney can advise you on the best ways to approach this complex legal process. If you start the process soon enough, he or she may also be able to advise regarding Contra Costa County loan modifications and other ways to avoid foreclosure.

As ABC reports, San Joaquin County, of which Stockton is the county seat, was the fourth-most distressed county in the country with a population greater than 25,000. As a result, "whole neighborhoods have been decimated by the mortgage disaster."

The trying economic times we are all experiencing show no sign of easing in the immediate future. This is a moment when a San Francisco foreclosure lawyer can be an important ally as you fight to overcome bad economic times and emerge stronger for the future.

ABC News: In Foreclosureville, USA, So Much Change

Perhaps unsurprisingly, end-of-year data compiled by the Associated Press indicates that 2009 was a big year for bankruptcies. According to ABC News, the wire service calculates that 1.4 million homeowners filed bankruptcy petitions last year, with California among the worst-hit states. Bankruptcies in California jumped 58 percent compared to 2008, placing the Golden State fourth nationally in terms its percentage increase in bankruptcies, behind Nevada, Wyoming and national leader Arizona.

Nationally, bankruptcy filings increased 32 percent compared with 2008. For December alone the year-to-year increase was 22 percent.

If you are facing the prospect of a Northern California bankruptcy filing it is especially important to contact a San Francisco bankruptcy attorney as early as possible. The earlier consultations begin the easier it may be to make your way through the complex and emotionally-draining process of filing a California bankruptcy petition.

The AP story notes that, nationwide, bankruptcies have been "coming in waves", a fact that indicates December's lower filing numbers may represent only a temporary lull. As the recession continues and more people lose their jobs people who thought they were secure in their ability to meet mortgage payments and other bills find themselves moving closer and closer to bankruptcy court.

A full-service Oakland, Fairfield and Walnut Creek bankruptcy law firm can help you tackle this difficult situation, offering advice on loan modifications and other ways to avoid California bankruptcy while preparing for an orderly filing if bankruptcy becomes inevitable.

ABC News: AP: 2009 Bankruptcies Total 1.4 million, up 32 pct

The economy still looks dismal and Northern California's housing foreclosure and bankruptcy crisis continues, but consumers can take heart that new laws coming into force offer them some help.

As TV station KCRA reports, Gov. Arnold Schwarzenegger signed a total of 724 bills into law during 2009 and a number of these are designed to help homeowners struggling to make their mortgage payments or seeking California home loan modifications. The best known of these is the state's new law banning the charging of advance fees for loan modification services. This law was declared an "emergency" measure and took effect in October. Other notable bills came into force on the first of the year.

The most notable of these bills, SB 239, makes it a crime to commit mortgage fraud. Until now California mortgage fraud had been prosecuted under the state's existing fraud statutes. Other measures regulate the ways in which purchasers of foreclosed properties can resell those properties and require mortgage loan originators to pass an exam and register with a national database of mortgage professionals.

How all of this affects individuals will vary widely from person to person. That, in turn, makes it more important than ever to have a trusted and experienced Northern California loan modification and foreclosure attorney in your corner. Understanding legal changes can be difficult. A qualified San Francisco bankruptcy lawyer can, however, help you sort through the new laws. The legislature and governor have given consumers new protections and new tools to help them cope with these trying times. Experienced legal help is your path to deriving the full benefits envisioned by these new laws.

KCRA.com: New Laws protect home, car buyers

The final round of housing and foreclosure data for 2009 was released as the year drew to a close. The numbers cover October, and contain some surprisingly good news regarding California foreclosures.

According to a brief analysis published earlier this week in the New York Times, seasonally-adjusted "price recovery in California seems to be strong." This is in contrast to Florida and Nevada - both, along with California, among the worst hit parts of the country in the housing and foreclosure crisis - where housing prices fell again in October. This, the paper reported, "could mean foreclosure sales are once again dragging prices down." The newspaper was looking at data from S&P Case-Schiller.

In San Francisco and throughout Northern California, Bay Area foreclosure prevention efforts consumed much of 2009. In addition to helping families keep their homes, Contra Costa and Alameda County foreclosure prevention also helps stem the broader slide in the region's housing prices.

When tackling this complex area of financial and real estate law it is especially important to seek the advice and assistance of an experienced San Francisco foreclosure attorney. Loan modification, foreclosure and bankruptcy prevention are all areas in which a Bay Area bankruptcy lawyer can offer help. The fact that we wrapped up 2009 with a smattering of good news does not change the fact that 2010 promises to be another challenging year both for the country's economy as a whole and for the Walnut Creek and broader San Francisco and Oakland housing markets in particular.

New York Times: Bubbles keep bursting

Though there have been some hints of good economic news, as a wrenching 2009 draws to a close, California foreclosures remain among the highest in the nation. For many Northern California residents the housing and mortgage crises are still very real. The longer-term picture is equally mixed. Nationally, many trends look good. As the links below outline, however, new potential problems also loom.

The latest California real estate complication concerns what are known as 'shadow foreclosures' or, alternately, 'shadow inventory.' These are homes that have already been foreclosed on by banks (by some measures it also includes homes on the brink of foreclosure). Because banks own these home outright they are not, technically, part of the housing stock available for sale. Banks, however, do intend to sell them, hence the term 'shadow': these units are not, formally, available but can be expected to flood into the market soon, likely depressing home prices when they do. A new round of depressed home prices could, in turn, drive more homeowners who are currently 'one the bubble' into foreclosure.

As this short summary indicates, the complications associated with Bay Area foreclosures and loan modifications are many. Whether you are trying to hold onto your property or are considering the purchase of a foreclosed, or soon-to-be-foreclosed, home consulting with a San Francisco bankruptcy and foreclosure attorney is a prudent course of action. A full-service San Francisco, Alameda County and Contra Costa County bankruptcy and loan modification law firm can help you deal with lenders, and navigate the complex and confusing foreclosure process.

KCBS: Shadow foreclosures could weigh down 2010 housing market

Bloomberg: 'Shadow' inventory of U.S. homes climbs, report says