Owning and managing rental properties in Pennsylvania is a massive responsibility, as you provide housing to tenants who need it. If you are at risk of mortgage foreclosure on a rental property, what happens to your tenants, and how can you protect them? Tenants who live in recently foreclosed-upon properties can typically stay there until their leases are over in Pennsylvania. If the new owner has standing to evict residents after a sheriff’s sale, they must give residents a 90-day notice to vacate. Property owners can prevent foreclosures from affecting their tenants and themselves by letting our lawyers negotiate new mortgage agreements with lenders that could potentially cure outstanding payments. If negotiations are unsuccessful, we can help property owners fight their cases in court or help them file for bankruptcy, as doing so can prevent mortgage foreclosures and sheriff’s sales. Call Young, Marr, Mallis & Associates for a free case assessment from our Pennsylvania mortgage foreclosure defense lawyers at (215) 701-6519. What Happens to Tenants Living in Foreclosed Properties in Pennsylvania? Tenants cannot control whether their landlords meet monthly mortgage payments and thus have no control over whether a property gets foreclosed. If this happens to tenants in Pennsylvania, they may be able to stay in their rental units until their current leasing agreement ends. Suppose you live in an apartment building or single-family home that has been foreclosed upon and auctioned off at a sheriff’s sale in Pennsylvania. In that case, you may be protected under the Protecting Tenants at Foreclosure Act (PTFA). Under the PTFA, tenants can stay in foreclosed properties for the remainder of their lease period, provided the new owner does not intend to utilize the property as their primary residence, in which case they must give tenants a 90-day notice to vacate. Month-to-month tenants also typically have 90 days to vacate foreclosed properties if the new owner does not wish to renew a lease. These protections only apply to bona fide tenants, which, under the PTFA, exclude any tenants who are a mortgagor’s spouse, children, parents, or tenants who pay substantially less than fair market value for rent. If the new owner does not have reason to evict tenants following a sheriff’s sale, tenants can likely stay in their units or homes until their current leasing agreement periods are over, provided they signed their current leasing agreements with the previous owner before foreclosure began. Whether or not tenants can renew their leasing agreements with the new owner after the lease ends is a different matter. If tenants meet the general qualifications property managers look for, they can often renew leases after rental properties change hands in Pennsylvania. So, more often than not, foreclosure has a greater impact on property owners than tenants, as their living situations might not change much. Preventing Mortgage Foreclosures from Affecting Tenants in Pennsylvania Property owners and managers in Pennsylvania provide housing to their tenants. Should their properties go into foreclosure, those same tenants risk losing their housing, and property owners risk losing an important income stream. Our attorneys can help property owners continue in their real estate endeavors and let them continue offering safe housing to tenants. Cure the Mortgage or Negotiate a New Plan Property owners are at risk of foreclosure after missing just a few months of payments. If your missed payment amounts are relatively low, you may be able to avoid foreclosure by curing the mortgage altogether. This will require you to pay all outstanding amounts fully. If you cannot cure your mortgage entirely, our lawyers can start negotiating with your lender to rework the existing mortgage agreement. When property owners successfully renegotiate agreements, they may be able to avoid foreclosure and a possible sheriff’s sale in Pennsylvania. Our attorneys can propose a new payment schedule and payment amounts that suit both the lender and the property owner. File for Bankruptcy If you need some relief to settle outstanding payments on a rental property mortgage in Pennsylvania, filing for bankruptcy can provide that. During a bankruptcy case, tenants can stay in their homes without fear of eviction or foreclosure, provided the debtor sees the case through. Even if foreclosure or a sheriff’s sale is imminent, filing Chapter 7 or 13 bankruptcy will stop those processes from continuing. Based on your income and the size of your debt, our Pennsylvania mortgage foreclosure defense lawyers will determine which bankruptcy chapter suits your case and start preparing your petition. If your primary creditor is your mortgage lender, we can devise a repayment plan that lets you settle your debts within three to five years. Because mortgage debts are not dischargeable, you must repay them during bankruptcy. If you file Chapter 7, the property you filed bankruptcy to keep could get liquidated, especially since Pennsylvania does not have a homestead exemption or exemptions for rental properties. If you file Chapter 7 and do not properly protect your assets, you could lose the property to repay the lender, and your tenants could be without a place to live once their lease terms are up or sooner if the new owner has reason to evict. Fight Foreclosure in Court Property owners can defend foreclosure cases in court in Pennsylvania. Lenders that fail to follow the necessary steps in mortgage foreclosure proceedings might see their claims dismissed. Banks that violate state and federal lending laws might not be able to foreclose on properties, even if owners miss several payments. If there is evidence of predatory lending practices or other egregious behavior, you may be able to win your foreclosure case, letting you keep your rental property in Pennsylvania. To prepare your defense against foreclosure, our lawyers will need all documents related to your current mortgage agreement, records of past payments, and copies of any correspondence with your lender. Call Our Lawyers in Pennsylvania Today Call Young, Marr, Mallis & Associates’ Pennsylvania mortgage foreclosure defense lawyers for a free case review at (215) 701-6519.

 Based on the expiration of a law, there are now two separate debt limits for Chapter 13 cases. To file a Chapter 13 bankruptcy case, a debtor must have no more than $465,275 in unsecured debt and no more than $1,395,875 in secured debt (only noncontingent, liquidated debt is included in each instance). For those clients interested in filing for chapter 13 or chapter 7 personal Bankruptcy please contact Jim Shenwick, Esq Jim Shenwick, Esq  917 363 3391  jshenwick@gmail.com Please click the link to schedule a telephone call with me.https://calendly.com/james-shenwick/15minWe held individuals & businesses with too much debt!

Virginia Mortgage Relief HAF Program Runs Out of Money Virginia Mortgage Relief HAF Program was financed by the American Rescue Plan My friend Carrie stopped the foreclosure scheduled for today, June 26, 2024, with a grant from the Virginia Mortgage Relief, Homeowner Assistance Fund. She will be one of the last people helped; the program stopped taking Applications as of May 3, 2024, and will be completely out of money in the next few days. Altogether, I know about a dozen Virginia who were helped by the HAF program.  The Biden administration sent $258 million to Virginia to help people who fell behind on their house payments due to COVID-19 HAF was funded by the American Rescue Plan Act, signed by President Joe Biden in March 11, 2021, passed in Congress over the unanimous opposition of Republicans.   .           The post Virginia Mortgage Relief Helped Prevent Foreclosures appeared first on Robert Weed Bankruptcy Attorney.

Virginia Mortgage Relief HAF Program Runs Out of Money Virginia Mortgage Relief HAF Program was financed by the American Rescue Plan My friend Carrie stopped the foreclosure scheduled for today, June 26, 2024, with a grant from the Virginia Mortgage Relief, Homeowner Assistance Fund. She will be one of the last people helped; the program stopped taking Applications as of May 3, 2024, and will be completely out of money in the next few days. Altogether, I know about a dozen Virginia who were helped by the HAF program.  The Biden administration sent $258 million to Virginia to help people who fell behind on their house payments due to COVID-19 HAF was funded by the American Rescue Plan Act, signed by President Joe Biden in March 11, 2021, passed in Congress over the unanimous opposition of Republicans.   .           The post Virginia Mortgage Relief Helped Prevent Foreclosures appeared first on Robert Weed Bankruptcy Attorney.

Disability benefits may be available for those with a qualifying disability and sufficient work history. If you recently had surgery and cannot return to work for a while, you might qualify for SSDI benefits if your condition meets the government’s definition of a disability. For many, the recovery time after surgery does not meet the criteria of a disability for SSDI. However, checking with an attorney before ruling out any legal options is a good idea. We should speak with your doctors after your surgery to determine your prognosis. If you experience complications or your condition is not expected to improve, you might qualify for SSDI benefits. If that is the case, your attorney can help you apply for benefits online or arrange an appointment in person or on the phone with an agent from the SSA. When we apply, we will need thorough documentation of your condition, including details about the surgery. Get a free assessment of your potential claims from our Pennsylvania disability lawyers when you call Young, Marr, Mallis & Associates at (215) 515-2954. Are You Eligible for SSDI Benefits After Surgery in Pennsylvania? Perhaps the first thing to consider is whether your condition after surgery constitutes a disability for SSDI purposes. There are specific criteria for what constitutes a disability. According to 20 C.F.R. § 404.1505(a), a disability must stop you from performing “substantial gainful activity” and be expected to persist for no less than 12 months or end in death. Does your condition meet the criteria of a compensable disability? While you might be unable to work for a while after a major surgery, you might not necessarily be considered disabled for purposes of applying for SSDI benefits. People who undergo surgery, even very intensive surgery, usually do not spend a full year recovering. However, if your surgery has left you unable to work for at least a year, or maybe ever again, tell our Pottstown, PA disability lawyers immediately. Another possibility is that the surgery did not go according to plan. You might have experienced complications, or perhaps the surgery was performed incorrectly, leaving you disabled. If the complications are permanent or long-term, you might qualify for SSDI benefits and can apply. You should also discuss your underlying medical conditions for which you had the surgery in the first place. If this condition is contained in the SSA’s listing of impairments, you might qualify for SSDI. Starting the SSDI Application Process After Surgery in Pennsylvania To begin the application process for SSDI benefits after surgery, we need to gather extensive information and paperwork about you, your medical condition, your work history, and your current ability to work. The application is not a simple one, and we must make sure your information is complete, thorough, and accurate. First, we need medical information about your underlying condition and the surgery. This should include information from your medical records about your diagnoses, treatments, doctors, medications, and any other medical information we believe is important or relevant. If the surgery is a key factor in your inability to work, we must make sure your medical records accurately convey this information. Perhaps you did not have a serious condition that would constitute a disability before the surgery. Maybe the surgery went wrong and caused you to become disabled. If that is the case, we need extensive details about the surgery and how it went wrong. We also should have information from your doctor about how the surgery has left you disabled. Documents and Information Needed to Apply for SSDI Benefits After Surgery in Pennsylvania Simply explaining your condition might not be enough. The SSA likely wants to see official records and documentation about your disability after the surgery. This means we might have to spend time gathering official documents from hospitals, former employers, and more. First, we need to gather identification information and documents. Things like government-issued I Ds, Social Security information, and your contact information are important. Next, we need thorough and accurate medical records. If you have seen numerous doctors before and after your surgery, gathering all your medical records might be a daunting task. Our team can help you contact your doctors and the hospital where you were treated so we have official documentation of your complete medical history. We also need information about your work history. People are eligible for SSDI based in part on their work history. You must have a sufficient history of working and paying into Social Security to apply for SSDI benefits. We also need information about the income you were earning before the surgery or before you became disabled. This may form the basis of your benefits and determine how much they are worth. How to Submit an Application for SSDI Benefits After Surgery in Pennsylvania Discuss how to submit your application with your lawyer, as there are several options. Perhaps the easiest option is to complete the application and submit it online. There is an online portal through the SSA’s website where you may submit your application. Rather than filling it out alone, have your lawyer with you so everything is filled out completely and accurately. It is also possible to make an appointment to meet with an agent in person or over the phone to assist with the application process. If you would rather speak with an SSA agent, you should also have a lawyer help you. If you have already prepared an application or are working on one now, be sure to have a lawyer review it before you submit it. Remember, you might be denied benefits if your information is lacking, vague, or insufficient. While an attorney can help you submit an appeal, you might end up waiting longer before getting the benefits you need. Contact Our Pennsylvania Disability Attorneys About Your SSDI Application Get a free assessment of your potential claims from our Philadelphia disability lawyers when you call Young, Marr, Mallis & Associates at (215) 515-2954.

Reuters reports that the debt limit for Subchapter V Bankruptcy for small businesses, initially set at $2.7 million, was temporarily raised to $7.5 million by the Coronavirus Aid, Relief, and Economic Security Act passed in 2020. However, this limit has now reverted to $2.7 million following the expiration of the Coronavirus Aid law on Friday, June 21, 2024..  The story can be found at https://www.reuters.com/legal/government/small-business-bankruptcy-rules-get-tighter-after-us-law-expiration-2024-06-21/The reduced debt limit will reduce the number of small business that can file for SubV Bankruptcy. Hopefully lawmakers will increase the debt limit in the future. People or businesses with questionings about Subchapter V should contact Jim Shenwick, Esq.Jim Shenwick, Esq  917 363 3391  jshenwick@gmail.com Please click the link to schedule a telephone call with me.https://calendly.com/james-shenwick/15minWe held individuals & businesses with too much debt!

As a homeowner, foreclosure is likely high on your list of things to avoid. Unfortunately, many homeowners fall behind on mortgage payments and must face the prospect of foreclosure. Rest assured, creditors cannot foreclose if specific legal criteria are not satisfied. Creditors may not initiate foreclosure unless certain criteria are met, including the number of months you are behind on your mortgage. Under federal law, creditors cannot foreclose until you are at least 120 days behind. Even then, foreclosure is not guaranteed, and creditors might be willing to work with you. How quickly creditors decide to start the foreclosure and what we can do about it may vary based on your unique situation. Foreclosure usually begins with a formal notice from the bank. If notice is not provided, the bank should not be able to move forward with the foreclosure. If you have received such notice or believe notice is forthcoming, talk to our team immediately. Contact our Pennsylvania mortgage foreclosure defense attorneys for a free, confidential case evaluation by calling Young, Marr, Mallis & Associates at (215) 701-6519. How Far Behind on Mortgage Payments You Must Be Before Foreclosure in Pennsylvania Missing a single mortgage payment is not enough for the bank to suddenly foreclose on your home. Missing even two or three payments likely is not enough. According to federal law 12 C.F.R. § 1024.41(f)(1), a creditor may not initiate foreclosure proceedings until you are at least 120 days delinquent, or about 4 months. Talk to our Philadelphia mortgage foreclosure defense attorneys if you are behind on payments but not far enough behind to trigger foreclosure proceedings. If the bank tries to foreclose when it should not, we can help you fight the foreclosure and hopefully keep your home. We can also help you check the terms of your mortgage. Other terms, conditions, or restrictions might play into the foreclosure process. Remember, not all mortgages are exactly the same, and your legal options might depend on the terms of your mortgage. How Quickly May Creditors Foreclose in Pennsylvania? Just how fast a creditor may foreclose on your home depends on a wide variety of circumstances and factors. While they are legally permitted to initiate foreclosure proceedings after 4 months of delinquency, they do not have to. You might be surprised to learn that many creditors are willing to work with delinquent borrowers to avoid foreclosure. They would much rather help you get back on track so you can continue making payments. Remember, creditors only want to be paid. Is there a way to convince the bank to hold off on foreclosure? How far behind are you? If you are delinquent on your mortgage payments for at least 4 months but the delinquency is not a lot of money, the bank might be more willing to work with you. For example, if you only need a few thousand dollars to catch up on delinquent payments, you might be able to get a loan from friends or family members so you can keep your home. Alternatively, the bank might agree to adjust your monthly payments so you can catch up. If the delinquency represents a much larger sum of money, the bank might be far less willing to reach an agreement or compromise. Even so, we might convince them to adjust the terms of your mortgage. For example, if you can pay a larger sum up front to partially catch up on missed payments, the bank might agree to lower your monthly payments to something you can afford. How Does Foreclosure Start in Pennsylvania? A foreclosure must begin with a formal notice from the creditor. This notice is not just a courtesy from the bank informing you of its plan to foreclose. It is legally required and must contain specific information about the foreclosure and your options going forward. If you have received a notice like this recently, call our team for help immediately. The notice may give you some time, usually about 30 days, to remedy the delinquency. If you cannot catch up during that time, the bank may proceed with the foreclosure. Since Pennsylvania is a judicial foreclosure state, the bank would have to sue you in court to foreclose. Because judicial foreclosure requires court approval at every step of the way, it often takes longer than in non-judicial foreclosure states. As such, you might have extra time to get your finances in order. You might also have more opportunities to fight the foreclosure in front of a judge. How to Fight Foreclosure if You Default on Your Mortgage in Pennsylvania If you are in foreclosure or falling behind on your mortgage and believe foreclosure is in your future, talk to our team about how you can fight the foreclosure and hopefully keep your house. One method is to negotiate with the bank. Remember, the bank wants to get paid at the end of the day. Creditors would often much rather help you get back onto a payment schedule than foreclose. We might convince the bank to adjust the terms of your mortgage so that you can make more affordable payments while also catching up on the payments you missed. Depending on the situation, we might be able to challenge the foreclosure in court. If the bank tries to foreclose too soon or refuses to allow you to cure the default, we can raise the issue in court. You have a right to cure the default under 41 Pa. Sta. § 404(a). Curing the default means paying enough money to catch up on all your missed payments and various legal fees and late penalties. While it is tough to accomplish, you have a right to cure the default if you have the money, and the bank cannot stop you from doing so. Contact Our Pennsylvania Mortgage Foreclosure Defense Lawyers for Support Contact our Upper Darby, PA mortgage foreclosure defense attorneys for a free, confidential case evaluation by calling Young, Marr, Mallis & Associates at (215) 701-6519.

Law Review: Joseph Peter Gomez, Note, A Bona Fide Dispute: Can Bankrupt Debtors Sell Assets Free and Clear of Federal Civil Forfeiture Claims?, 29 Fordham J. Corp. & Fin. L. 587 (2024). Ed Boltz Fri, 06/21/2024 - 21:14 Available at:  https://ir.lawnet.fordham.edu/jcfl/vol29/iss2/4/ Abstract: Auctions are wheeling-dealing extravaganzas in which frenzies of bidders fight over shiny objects. What would happen if the government busted down the doors of the auction house, took the shiny objects, and sold them online? An asset sale through section 363(b) of the Bankruptcy Code provides a court-supervised opportunity to maximize economic value for the bankruptcy estate. To sell estate assets, the debtor must either (1) pay off each creditor holding an interest in the assets or (2) strip the creditor’s interest and attach it to the proceeds of the sale. When the government asserts a civil forfeiture claim against the asset being sold, it argues that its claim has superpriority over every other interest. If the debtor chooses option one, the government might demand the debtor pay up, or else it will seize the assets, leaving the debtor and its creditors with nothing. A debtor, naturally, might wish to choose option two: strip the government’s forfeiture interest from the asset and attach it to the sale proceeds. This Note examines the unique aspects of civil forfeiture claims and how those aspects conflict with asset sales through section 363(b). It identifies case law across jurisdictions to assist courts asked to determine whether to strip a civil forfeiture claim from assets sold through section 363(b). It proposes a three-step framework for courts to apply in analyzing this issue. Finally, this Note argues that bankruptcy courts should allow sales of assets free and clear of a federal civil-forfeiture interest if the interest is in bona fide dispute and the government’s interest can be adequately protected by attaching it to the sale proceeds. Commentary: 363 sales are certainly much more rare in consumer cases,  particularly  for Chapter 13  debtors- largely because unlike with commercial loans might  have an interest in helping the corporate debtor retain assets against other creditors,  where consumer lenders basically will cut off their own nose to spite the consumer debtor's  face-       This article could,  however,  offer a possible solution for debtors  facing the loss of assets resulting  from  drug asset forfeiture from co-owners (or even just adult children that reside in a home). With proper attribution,  please share this post.   To read a copy of the transcript, please see: Blog comments Attachment Document a_bona_fide_dispute_can_bankrupt_debtors_sell_assets_free_and_cl_compressed.pdf (495.46 KB) Category Law Reviews & Studies

People often spend years paying off mortgages, and their financial situation might change quite a bit during this time. If you find yourself unable to keep up with payments, talk to a lawyer about how to avoid foreclosure. One way of preventing foreclosure is to file for bankruptcy. While bankruptcy is not exactly an ideal solution, it might be a solution, nonetheless. Through bankruptcy, you might liquidate other assets to cure the default on your mortgage. You might instead devise a payment plan to help you catch up on numerous debts, including your mortgage. There might be alternative ways to prevent home foreclosure. You might sell the house and use the proceeds to repay the mortgage. You might instead work out an agreement with the bank or other creditors to buy extra time to get your finances in order. Perhaps the best thing you can do is to speak to a lawyer about your options. Your attorney might even help you challenge the foreclosure in court, as New Jersey is a judicial foreclosure state. Please ask our New Jersey mortgage foreclosure defense lawyers for a free review of your case by calling Young, Marr, Mallis & Associates at (609) 755-3115. Filing for Bankruptcy to Avoid a Home Foreclosure in New Jersey While most homeowners want to avoid foreclosure, they might think of bankruptcy as their way out. Most people consider bankruptcy to be the option of last resort. While it certainly comes with some drawbacks, bankruptcy might be the solution you are looking for. In some cases, it can help people avoid foreclosure. Chapter 7 Bankruptcy One option is to file for bankruptcy under Chapter 7, a common option for individuals with fewer assets. Under Chapter 7, a bankruptcy trustee may liquidate your assets to pay off your debts. In some cases, this might mean losing your home. However, the liquidation of your home avoids the foreclosure process. Depending on how things go, the money you get from your home might cover your mortgage and various other debts, allowing you to start over with a clean financial slate. If you have other assets you want to liquidate first in the hopes of keeping your home, talk to your attorney. Coordinating with the bankruptcy trustee might be possible so that other assets you do not mind parting with are liquidated instead of your home. This might be feasible if you have valuable assets like a vacation home or vehicles you do not need. You might also claim the federal homestead exemption under 11 U.S.C. § 522(d)(1), which may exempt up to $27,900 in your home’s equity. Chapter 13 Bankruptcy Chapter 13 bankruptcy works much differently than Chapter 7. Instead of liquidating assets and properties and potentially losing your home to bankruptcy rather than foreclosure, you might not have to liquidate anything. Instead, you and our Trenton, NJ mortgage foreclosure defense lawyers must come up with a payment plan to help you get back on the right financial track. Payment plans should be aggressive yet financially feasible. As such, people on Chapter 13 payment plans have very little wiggle room for superfluous or luxury purchases. Also, many people must spend quite some time on their payment plans. Many bankruptcy petitioners spend about 3 to 5 years adhering to their plans before their case is complete. Other Ways to Prevent Home Foreclosure in New Jersey If bankruptcy is not something you are ready to consider, your lawyer can help you explore other legal options for avoiding foreclosure. Some options might involve more formal legal procedures, while others involve informal agreements with creditors and lenders. Our team can help you figure out something that works for you. Selling the House One option is to sell your home and downsize. While you might have had plans to stay in your home for many years to come, it might not be financially possible. Rather than lose your home to foreclosure, you can instead quickly sell your home, use the proceeds to pay off your mortgage and clear your debt, and put any remaining money toward a different, more affordable home. While you cannot keep your home in this scenario, you may avoid foreclosure, which might save your credit so you can buy a more affordable home later. Talk to your attorney. It might be a wiser idea to cut your losses, avoid a massive hit to your credit, and begin planning for a different home in the future. Working Out Agreements with Creditors Talk to your attorney about how much money you owe toward your mortgage and how far behind you are on payments. It might be possible to work out some sort of deal with your creditors to avoid foreclosure. Creditors just want to be paid at the end of the day. If we can pay something now, we might convince creditors to delay foreclosure. Is there a way we can negotiate with creditors to make your payments more affordable? Maybe your creditors will agree to work out a new monthly payment that is more affordable. However, there might be some trade-offs, and you might have higher interest rates. Are you expecting a financial windfall in the near future? If we explain the situation to your creditors, they might hold off on the foreclosure until your money comes in. For example, maybe a family member just passed away, and you are expecting a large inheritance. Explaining this to your creditors might persuade them to hold off on foreclosure until your inheritance comes in. Remember, creditors just want to be paid. Challenging the Foreclosure in the New Jersey Courts Since New Jersey is a judicial foreclosure state, we might be able to challenge the foreclosure in court if there are no other ways of avoiding it. There might be numerous grounds on which to challenge the foreclosure. For example, according to 12 C.F.R. § 1024.41(f)(1), creditors may not foreclose until you are no less than 120 days behind on payments. Tell your attorney if you are not far enough behind for creditors to begin the foreclosure process. It is possible that your creditors made a clerical error and jumped the gun on the foreclosure. It is also possible they are using underhanded tactics to get you out of your house. You also have a right to cure the default, according to N.J.S.A. § 2A:50-57(a). This means that if you can come up with the money to cover your debts and various other costs before the sale of your home, you may keep your house and avoid foreclosure. Speak to Our New Jersey Mortgage Foreclosure Defense Attorneys Today Please ask our Union City, NJ mortgage foreclosure defense lawyers for a free review of your case by calling Young, Marr, Mallis & Associates at (609) 755-3115.

The Business Journals is reporting that SBA Loans have created a wave of bankruptcy filing.  The story can be found at https://www.bizjournals.com/charlotte/bizwomen/news/latest-news/2024/06/sba-covid-eidl-loan-bankruptcy-congress-banks.htmlJim Shenwick, Esq  917 363 3391  jshenwick@gmail.com Please click the link to schedule a telephone call with me.https://calendly.com/james-shenwick/15minWe held individuals & businesses with too much debt!