Distressed Transactions – Page 2 – Querin Law, LLC | Phil Querin

As noted in my post immediately preceding this one [Querin Law: Short Sale FAQs (2013)], the FAQ Section on the Q-Law homepage has been changed. The FAQs on short sales that resided there for several months has been move to the Q-Law Real Estate Articles Section on the homepage [here], and I have substituted foreclosure Q&As in the FAQs Section. Parts One and Two are below, and also located here in the FAQs Section of the homepage. There will be a total of three parts, with 30+ FAQs on foreclosures, current as of 3Q 2013. ~PCQ

1. What is a “judicial foreclosure”? This is a foreclosure the lender, bank or servicer[1] files against the borrower using the court system. The “plaintiff” is the bank, and the “defendant” is the borrower. From start to finish, the process is directed by the court. The date of the foreclosure auction is set at the end of the process.

2. How does it differ from a “non-judicial foreclosure”? A “non-judicial” foreclosure is conducted outside of the court system. It consists primarily of the recording of a Notice of Default (“NOD”) in the county records, and mailing and service of a Notice of Sale (“NOS”) to the borrower, advising him/her that a foreclosure of the property has been commenced. The NOD and NOS identify the date of the auction. Continue reading “Querin Law: Foreclosure FAQs (2013) – Parts One & Two”

These FAQs were previously located on the FAQ Section of the Q-Law homepage. They have been replaced by another set of frequently asked questions on foreclosures [which will consist of at least three parts and 30+ FAQs]. However, since short sales have not completely disappeared, and aren’t likely to do so for at least another year, I decided to add the short sale FAQs to the Q-Law Real Estate Articles Section of the homepage. The direct link is here. That way, even though short sales are gradually receding in the rearview mirror of memory, folks still in the throws of having to make a distressed housing decision will have another resource. ~PCQ

If anyone says foreclosures are tapering down, ask them for proof. If they give you “proof” ask them what they’ve been smoking. ~ PCQ

Third Quarter 2013 Statistics. Here is the link to the Q-Law third quarter foreclosure charts based upon numbers provided weekly from First American Title Company. For comparison, attached here are the first quarter charts and here are the second quarter charts. Continue reading “Third Quarter Foreclosure Stats For The Portland-Metro Area: What Are They Telling Us?”

Introduction. On September 2, 2013 the online Wall Street Journal carried an article that should be of interest to thousands of folks who have weathered the last five years of unpleasantness, but in the process suffered a short sale, foreclosure or perhaps a deed-in-lieu-of-foreclosure. The full article can be found here. Continue reading “New FHA Underwriting Guidelines – Good News For Former Distressed Homeowners Re-Entering The Marketplace”

OK, we’ve made it through the first half of 2013. We now have six months’ of foreclosure statistics. I posted the first quarter stats for the year here. Now, armed with the second quarter, I’m prepared to prognosticate – for what it’s worth. [Actually, Q3 and Q4 will be the most interesting, as we move forward into a post-Niday foreclosure world, and SB 558, the mandatory resolution law, goes into effect. I predicted here, that the Niday and Brandrup decisions would have little impact on the Big Bank judicial foreclosures; the stats going into the end of 2013 will give us a peek of things to come.] Here is the link to the 2Q stats. What follows is a “back of the napkin” analysis – i.e. scribbled notes and scrambled thoughts. I could be all wrong. Time will tell. Continue reading “Q2 Portland-Metro Foreclosure Stats – What Are They Telling Us?”

In a recent article in Mortgage Servicing News here, we learn that apparently 49 state attorneys general were unable to draft the terms of the $25 billion National Mortgage Settlement in a way the Big Banks couldn’t slip through them like the eels they are. It seems that notwithstanding the AGs’ collective belief the banks would stop dual-tracking -that insidious practice of putting someone into a loan mod program while foreclosing them at the same time – it still continues. Continue reading “Ever Wonder Why the Big Banks Lose Your Loan Mod Paperwork? Wonder No More!”

Ever been curious which areas are hardest hit by foreclosures in the Portland-Metro counties? Wondering how many judicial vs. non-judicial foreclosures are filed? Are the foreclosure mills going to be hiring or firing personnel over the coming months?

Well, thanks to the raw data ably compiled in First American Title Company of Oregon’s Foreclosure Report, and a skilled Notre Dame law grad, Danica Skeoch, who did the wonderful graphics, the information for the first quarter of 2013 is depicted on the following ten pages here. I have some thoughts on what they mean, and hope to post them soon. Enjoy! ~PCQ

Introduction. After a false start in 2012, the 2013 Oregon Legislature has just passed its “new, improved” version of what was generally known as the Mandatory Mediation Law. Besides tweaking various provisions in the prior law, SB 558 closed a loophole big enough that the Big Banks were able to drive their Foreclosure Bus through it. Until July, 2012, virtually all lenders, except Wells Fargo, were conducting their foreclosures non-judicially, i.e. outside the court room. With limited exceptions, the process, which is found in ORS 86.705 – 86.795, had been the sole method used for residential foreclosures in Oregon for the past fifty years. While lenders have always had the option to judicially foreclose Oregon homeowners who defaulted on their loans, it was rarely used. In fact, in 1959, when the trust deed law was enacted, it was the lenders that lobbied long and hard for it; they knew it was far faster and cheaper than going to court to foreclose. Continue reading “QUERIN LAW: SB 558 – Oregon’s New Mandatory Resolution Conference Law for Borrowers Facing Foreclosure (2013)”

(Disclaimer – The following post is for informational purposes only. I am not a tax lawyer or CPA. In all cases of debt cancellation, readers are strongly encouraged to seek competent advice from a tax professional familiar with their specific situation. The material below is a summary only. For specifics consult your tax advisor.)

One of the basic rules of tax law is that cancellation of debt is a taxable event. For the lay person, cancellation of debt is the same as forgiveness of debt. It makes no difference how the cancellation occurred. It could be voluntary – through a short sale or deed in lieu of foreclosure, or certain loan modifications – or involuntary – through a foreclosure. In the tax lawyer’s lexicon, “cancellation of debt” is referred to as “COD” – like the fish – just harder to swallow.

However, with the housing and credit crisis forcing many people into foreclosure and pre-foreclosure events that resulted in significant debt cancellation, the Mortgage Debt Relief Act of 2007 was enacted. Subject to certain exceptions, this law permits taxpayers to exclude taxable income arising from the discharge of debt on their principal residence. It also applies to certain loan modification events where the debt is either forgiven, or restructured in a significant manner, such that it triggers a taxable event. For many taxpayers, this new federal law was a “codsend,” if you will.

Here are some of its main features: Continue reading “QUERIN LAW: Tax on Cancellation of Debt in Distressed Housing (2013)”

An unfortunate fact of life is that housing and financial problems can metastasize, destroying marriages and families. When this happens, despite the cloud of unhappiness that hovers over a couple’s life during these times, differences should be set aside when it comes to how to dispose of the family home. Continue reading “QUERIN LAW: Distressed Property, Distressed Marriage (2013)”