GMAC and JP Morgan Chase Help Bankruptcy Attorney in Indiana Buy Time
When GMAC became an “Ally to stop foreclosure” (I wrote about this in Bankruptcy in Indiana a week or so ago), announcing they would postpone foreclosure proceedings, 
they started something. Since that pronouncement by GMAC, other banks have followed, including Bank of America and J.P. Morgan Chase.
As a debt consolidation lawyer offering Indiana bankruptcy help, I had to ask myself, “Why the change of approach on the part of the banks?” After years of doing my best to help stop foreclosures by negotiating mortgage modifications, I’d become very frustrated with inefficiencies and long delays by the mortgage servicing companies. Equally frustrated have been all the good bankruptcy attorneys in Indiana who work in the Zuckerberg bankruptcy law offices around the state.
In great measure, the “movement” GMAC started brings a welcome rest from the struggle. It also buys me welcome time for my clients to consider whether filing personal bankruptcy in Indiana would be the best method for saving their homes.
As for my question “Why?”, I’ve heard several different explanations:
- One of the Columbus bankruptcy lawyers who work in my office there follows banking news sites. She read in bankinvestmentconsultant.com that many banks and mortgage companies postpone foreclosures in order to make their accounting books seem healthier than they are. In other words, they carry properties on the books at values well above actual market value.
- GMAC and its parent Allied Financial admitted they had not followed proper procedures in sending properties to foreclosure. Neither mortgage modification paperwork nor requests for foreclosure had been properly reviewed. It’s this “sloppy legal work” that has caused major lenders to suspend evictions and foreclosures.
This theory was no news to me, as, in providing Indiana bankruptcy help, this inefficiency is exactly what I encountered!
The foreclosure suspensions involve 23 states, most in which judicial foreclosures are used.
Having provided bankruptcy services in Indiana for more than twenty three years, I know that Indiana is one of those judicial foreclosure states. That means court action is needed to foreclosure on a home.
An important part of the Indiana bankruptcy help I provide is through Chapter 13 bankruptcy law in Indiana. Often clients will turn to me for help after they’ve been trying to negotiate with their lenders for many months, only to be told they were turned down for a mortgage modification. Then they are served with a foreclosure notice!
While filing individual bankruptcy in Indiana is a way to avoid losing your home, it’s always better to have more time to work out a plan. That’s why I would like to say to GMAC and other lenders, “This could be the start of something good” for my Indiana bankruptcy clients!
Similar Posts:
- Infdiana Bankruptcy Lawyer Helps With Foreclosure Prevention and Foreclosure After-the-Fact
- Foreclosure Crisis in America
- Foreclosure – Maybe Not-So-Bad 4 Kids, Says Indiana Lawyer for Bankruptcy
- What is a Motion for Relief from Stay?
- Foreclosures Guide for Dummies
