… Department report, 27 percent of homeowners taking part in mortgage modification trails are delinquent on their mortgage payments.  And while the foreclosure prevention plan was designed to help millions of homeowners facing foreclosure, only about 650,000 borrowers are currently participating in the trail phase of the loan modification program.  A pithy 1,711 homeowners battling to avoid foreclosure have converted their loan modifications to a permanent status, which is a reflection …

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Most credit card companies will send a delinquent credit card account to a collection agency after 180 days of no payment.  These delinquent credit card accounts are usually sold for pennies on the dollar.

Debt collectors who hold your credit card account are regulated by the Fair Debt Collection Practices Act and can be liable for violating the rules of this law.  Calling you before 8am or after 9pm, …

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… than has ever been seen before.  The mounting number of job losses is seen as a major reason why delinquent payments hit an all time high in the first quarter on both credit card payments and home equity loan payments.

The American Bankers Association keeps track of several delinquency statistics, and then combines some of them to come up with an overall delinquency rate.  The rate rose for a fourth straight quarter to 3.23%, which is an all-time high.   For a loan to qualify as late in …

Permalink: /fort_worth_bankruptcy/consumers-are-becoming-delinquent-on-loans-at-a-faster-rate-than-ever-before/

… payments.

The article said:

“Nationwide, a record 9.24 percent of residential loans were delinquent in the quarter. The closely watched measure includes all mortgages that are at least one payment behind… In Texas, the greatest share of loans facing foreclosure are subprime mortgages. In the second quarter, 28.49 percent of subprime adjustable-rate loans in the state were past due. That compares with an 8.18 percent delinquency rate for prime mortgages statewide. About 30 percent …

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According to an article in the Star-Telegram, the number of borrowers who were 60 days or more delinquent on their mortgage payments rose to 5.22 percent for the first three months of 2009. That’s 62 percent higher than last year. This is a smaller percentage than reported by the Mortgage Bankers Association; but still alarmingly high. Most homeowners who have become delinquent on their mortgage payments find it difficult to catch-up and avoid foreclosure.  After 60 days of missed …

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… owing several back months of rent; plus other unsecured debt. When handling the repayment of delinquent rent during bankruptcy the debtor should work with their bankruptcy attorney to create a written agreement with the landlord to repay the rent over the first few months of the bankruptcy.  Be forewarned that bankruptcy trustees might object if you simply repay the back rent post-bankruptcy because it will appear that you are giving preference to one creditor over another.  Of …

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… five copies of the Notice of Right to Cancel. The debtor made three payments and then became delinquent. After discus­sions with the lender, the parties agreed to forbearance. The lender said it sent the debtor a forbearance agreement, which included a release. The debtor said all she received was a signature page, which she signed and faxed back.

It’s important to point out that this debtor made what turned out to be a huge mistake.  Never sign off on documents you have not …

Tags: Delinquent Mortgage Truth in Lending Act

… heavy losses due to a high rate of foreclosures. More than 18 percent of FHA loans are at least delinquent by 30 days.  That’s more than the national average of 14 percent. The foreclosure crisis has even caused the FHA’s reserve to fall below the limits required by Congress. To combat the ill effects of the foreclosure crisis, the FHA is planning to implement new rules.

Under the changes, homebuyers will:

-Pay an upfront mortgage insurance premium of 2.25 percent of the total …

Tags: Delinquent Down Payment FHA Foreclosures New Home Loan

… 50 percent of homeowners who received mortgage modifications were at least two mortgage payments delinquent within a year, making them vulnerable to foreclosure.  The report also revealed that homeowners who received mortgage modifications that reduced their monthly payments were less likely to become vulnerable to foreclosure again.

The article said:

“About one in three borrowers whose monthly payments were reduced by 20 percent or more had fallen behind again within a year. That …

Tags: Borrower Delinquent foreclosure Mortgage Mortgage modification

After filing for Chapter 13 bankruptcy remaining current with your mortgage payment is a requirement of your Chapter 13 confirmation order.  But as we all know, so much can happen over the 3 – 5 years of Chapter 13 bankruptcy . What if your income decreases drastically? What if you lose your job or become critically ill? And the big question, what if you fall behind on your mortgage …

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… types of creditors.

Student loan lenders have incredible powers when it comes to collecting on delinquent debt.  If, after a debtor emerges from bankruptcy, they fail to repay their student loan, they could face wage garnishments and other asset seizures by their student loan lender.  Debtors filing bankruptcy who have student loans must make sure they have a solid plan for repaying their student loans if they want to avoid new credit problems after bankruptcy.

… are paying down credit cards to the detriment of their mortgage loan. The number of consumers delinquent on their mortgages but current on their credit cards rose to 6.6% in the third quarter of 2009 from 4.3% in the first quarter of 2008, according to a TransUnion study of 27 million anonymous consumer records pulled randomly from its database. Meanwhile, the portion of those who fell behind on credit-card payments but paid their mortgage dropped to 3.6% from 4.1%.

Many debtors have …