Bankruptcy Article of the Week
More than a Million Households Slip Through Foreclosure Rescue Crack
The Center for Responsible Lending estimates that 2.2 million subprime loans made in recent years have already failed or will end in foreclosure. With that in mind, HUD's August 31 press release promising relief to approximately 240,000 families looks like far too little, too late.
President Bush announced a plan on Friday to provide some mortgage foreclosure relief by calling for legislation that would loosen Federal Housing Administration (FHA) restrictions, provide temporary tax relief for homeowners whose mortgage debts were canceled in whole or part, and act to prevent future problems by improving disclosure requirements and educating consumers.
Some of these measures may be helpful: homeowners whose payment record was clean until their mortgages adjusted and payments skyrocketed may be able to qualify for FHA refinancing even though their loans are in default. But since the government estimates that the new provisions will touch only about 10% of those impacted by the wave of subprime foreclosures, the overall effect on the economic crisis created by the subprime collapse remains unclear.
HUD Secretary Alphonso Jackson said, "FHASecure will bring stability to the housing market and give eligible families who were in good financial standing before their loans reset a chance to keep their homes." That may be true, at least for a portion of that group, but it ignores the fact that many borrowers fell victim to subprime mortgage lenders and their too-good-to-be-true terms precisely because they were already struggling financially or had problems in their credit histories-and while some will say those borrowers aren't deserving of bailout, that view doesn't address the devastating impact of the national wave of foreclosures on the U.S. economy as a whole.
The FHA provisions won't provide any relief to the most vulnerable homeowners-those who have less than 3% cash or equity in their homes, who began to struggle before their mortgage payments re-set, or who have experienced a disruption in income or employment.
While we can hope that the forward looking provisions to tighten up disclosure requirements, strengthen mortgage lending standards, educate consumers, and crack down on fraud will help prevent further deterioration of the dream of homeownership in the United States, those changes won't help the homeowners who have already been victimized by predatory lending, or who simply had inadequate information to make good decisions at the time of their home purchase or refinancing.
Those protections for the future also won't help to repair the damage to home values, homeownership, and the U.S. economy caused by the wave of mortgage foreclosures already in process.
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What's Been Said about Start Fresh Today
Here's how one attorney has described the value of Start Fresh Today.
"StartFreshToday.com has provided me with a 'one-stop shop' for all of my bankruptcy needs. I can easily access and manage all of the information I need for each client, and the data arrives in the digital format I need for electronic filing. Best of all I get personal service with each client. Every question is answered quickly and efficiently. StartFreshToday.com knows and appreciates the value of my time and has succeeded in helping me achieve efficiency in my bankruptcy practice."
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Law Offices of Ken Baker, Chico, CA
Kevin's Corner
Practice Management Tip of the Week:
"When evaluating the success of your marketing efforts, it's important to look at those efforts as a whole to determine whether or not they are working for you.
"Too often, lawyers spend a lot of money on yellow page ads simply because that's what they've always done, without having any way to quantify the results. As an example, a lawyer might write a check for $5,000 at the end of the month for his telephone book bill without knowing whether this advertising has done much for his bankruptcy practice.
"Don't look at your marketing efforts in terms of cash outlay alone. Rather, ask yourself if those marketing efforts are generating an acceptable return on investment (ROI) and driving a lot of business for you.
"As the range of possible marketing outlets expands to include Internet marketing, television and radio advertising, and more, it's important for attorneys to stay up-to-date on where their prospective clients are looking for attorneys and which outlet will be most productive and cost-effective.
"For example, we know that millions of consumers seek attorneys each month through Internet searches, but most attorneys spend a small portion of their marketing budgets on Internet marketing.
"Educate yourself about your consumers and the best place to reach them, and then track the results of your marketing efforts to make sure you're happy with your ROI."
- Kevin Chern
President, Start Fresh Today
Did You Know...
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That's right. After logging into your Start Fresh Today account, simply click on the 'Clients' button and find the name of the client that you wish to review.
Upon taking this action, click on the 'Document Center' link on the left-hand side of the profile page for the specific client that you are interested in tracking.
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Got questions? Simply call us at (800) 435-9138 for more insight into this beneficial feature in your SFT account.
Once again, we're glad to answer your questions and help out.
The Numbers Game
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