Who are the 99ers? Do they signify the start of a depression?

The 99ers are the people who have been on unemployment for 99 weeks or more.  There are  a total of 1.4 million people who have not worked for two years.  The average unemployed worker in this group has been unemployed for about 8 months.  This is unprecedented in American history except for the great depression and we have never had people on unemployment compensation this long ever before.

They held a rally in New York recently to protest and demand another extension of their unemployment benefits.  Their benefits are now exhausted and many 99ers have exhausted their savings and are living on borrowed money.  Some are becoming homeless.  At their rally near the New York Stock Exchange the 99ers are telling stories of the agony of their ordeal and they are demanding more benefits.

They apparently can’t find a job because their no one is hiring.  We have to ask how long can we sustain this and how long should the unemployment compensation system carry them?  Can the country continue to lose jobs, have perennially high unemployment, and have a larger and larger segment of society live on government benefits?

The 99ers have connected through websites and listservs and they have teamed up with the major labor unions who support their cause.  They are now a political force and democratic Senators Debbie Stabenow and Sherrod Brown have responded and co-sponsored a bill to extend unemployment yet again to 119 weeks.  I guess then we have to call them the 119ers.  Are we ready for a permanently unemployed class of people?

I am a bankruptcy lawyer in San Diego.

Please visit my website at www.farquharlaw.com

Why you should file bankruptcy if you have debts you cannot pay

In celebration of reaching 50 blogs I thought I would update one of my most popular articles to date.  In this article I talk about all of the reasons why you should file bankruptcy.

I find that my clients want to file and they need to file but they are also apprehensive about  filing bankruptcy and they are concerned that bankruptcy is somehow shameful, wrong, or deceitful.  I try to get them to see that it is none of these things and that there are very good reasons to file and great benefits to filing.  I also try to show them that it is a legal, moral, and ethical thing to do that is as old as the bible and that corporations do it whenever they can.

You get a fresh start, you get peace, freedom, anonymity, your credit score will improve, you can keep most of your assets.  I also try to explain that times are tough, you need your money, and that bankruptcy is their bailout and things will probably get worse for them if they don’t file because collectors will not stop trying to collect from them.

I try to get my clients to see all of these things about the benefits to filing.  Often the biggest hurdle is the psychological block that they have to bankruptcy itself.  So please read my article and see if you should also possibly file bankruptcy if you have debts you cannot pay.

 1)  You get a fresh start.  Filing for bankruptcy is powerful and useful tool which allows you to discharge most of your debts and usually keep most of your assets.  You get a “fresh start” with your life and you can begin again financially without the burden of debts you cannot pay.

You can also avoid the permanent debt trap from which it is very hard to escape.  Remember that bankruptcy is nothing new.  It is as old as the Old Testament of the Bible.  It has been around in some form for thousands of years.

The tradition in Old Testament times was to forgive debt regularly every 7 years.  This practice had a tremendously beneficial effect on society and its people as it can on you.  Even back in ancient times people knew that everyone in society is better off if individuals don’t carry around debt long-term.  They knew then that debtors were happier, healthier, and better and more productive citizens when their debt was forgiven.

How badly is the burden of all this debt affecting your everyday life now?  Do you feel the fear, the worry, the anguish we all feel when we are over our head in debt and we don’t know how to get out or what to do.  Bankruptcy is a legal, definitive action you can take that can make the debt all go away and put your life back together to give you a fresh start.

 2) Usually your credit score will improve over and above what your credit score would be if you didn’t discharge these debts.  By the time most people file bankruptcy they are so far behind in their credit card payments that bankruptcy will actually help improve their credit score.  Each month that you don’t pay those monthly credit card bills your credit score remains low.  Since most people are unlikely to pay their debts off this results in a permanently low credit score.

If you are in the same position then bankruptcy will certainly help you.  Your credit score will decrease immediately upon the filing of the case but when your bankruptcy is finished your debts will appear as “discharged in bankruptcy”.  Those debts discharged in bankruptcy will then no longer negatively impact your credit score.

You can now begin to rebuild your credit score with new credit.   You need to have credit in your name and use that credit wisely to increase your score.   If you charge things on your new cards and then pay your payments on time and pay the full balance every month you will slowly and steadily build up your score.  Every month that you pay those payments you should get points added to your score.  These points will add up over time.   You will get credit card solicitations after the bankruptcy discharge so use them wisely to increase your credit score.

Any other payments you make on time for financed items will help drive up your credit score.  Some of my clients reaffirm their cars in bankruptcy so they will get the benefit to their score when they make payments.  Others will finance a new car after bankruptcy for the same purpose.

 3) You get freedom– Shakespeare said “never a borrower or lender be” because as a borrower you become a slave to the lender.  If you owe credit card debt then you are a slave to those big banks to whom you owe money.  You pay huge amounts of interests to these big banks every month to service your debt.  These interest payments only serve to enrich very large corporations at your expense.

Filing bankruptcy can serve to free you permanently from both the worry and the financial strain of continual and unrelenting debt and the stress of the collection actions.  Your discharge is your key that unlocks the debt prison doors.

 4) You can keep most of your assets.  Most people can retain most of their assets in a bankruptcy.  That includes your house and your cars.  Many people think they will lose everything.  We have very generous exemptions in California that allow most people to keep everything they own.  If your house and cars don’t have any equity then you can certainly keep them.  If they do have equity then usually we can find a way to exempt them.

Your house is probably secured.  If there is equity in the home then there is a homestead exemption we can use to allow you to keep it.  Your car may be secured and if there is equity in that we can use the car exemption and the “wildcard exemption” together to keep your car (if we don’t have to use the homestead exemption on your house”).

Cars usually have no equity if financed and these days with housing prices low, many houses also have no equity.  Your personal furniture and clothes you can keep under a separate exemption and jewelry and “tools of the trade” also have their own exemptions.  Even your retirement fund, if it’s an IRA or 401k, is protected by federal bankruptcy law up to $1,000,000.

 5) You will get peace back in your life.  When you file bankruptcy your creditors must stop calling you on the phone.  Most of my clients have not answered their phone for some time before they actually consider bankruptcy.  Filing a bankruptcy case will stop all of these collection efforts with the miracle of the “stay” that is created once you file bankruptcy. This stay stops all creditors from contacting you in any way once they get notice from the Bankruptcy Court of the filing.

So remember that as far as you debts go, peace and tranquility are waiting to return to you if you file bankruptcy.

6) No one needs to know.  Many people are afraid of bankruptcy because they think that their landlord or their employer will find out about their bankruptcy and they believe they can be evicted or lose their job.  This is not true and you will still have anonymity if you file.  You don’t have to tell anyone that you filed bankruptcy and probably no one will know unless they do a public record search.  It is unlikely that this will happen though so your secret should remain safe.

Your landlord will probably not be notified especially if you are on a month to month lease.  Your employer need not know unless you already have a wage garnishment that needs to be stopped.  You cannot be fired from your job or thrown out of your apartment or home because you filed bankruptcy if your employer or lenders or landlord do find out.  Discrimination of this sort based upon a bankruptcy filing is illegal.

7)  You have other things to do with your money–   If you are like most people then you need the money you earn from working to pay for your own personal bills and pay for your family and their needs.  You don’t need to give this money to these large banks.  You don’t need to spend this money to enrich large banks for money you borrowed from them a long time ago.

If you earn less than is allowed in the means test then you can probably file bankruptcy and discharge your debts.  You can then use your money for other purposes than paying off old dischargeable debt.

 8) You have already paid the credit card companies back–  If you are like most of my clients then the debts that you owe are probably very old.  You have probably been making payments on these debts for years.  If that is true then you have already reimbursed the creditors for them.  By the time most people file a bankruptcy they have already paid back all of the money they borrowed plus some interest. This is because of the very high interest rates that credit card companies charge.

Remember that the banks borrow money at a very low-interest and then lend it to you at very high interest.  They keep the rest.  It is a most profitable business and the make lots of money doing it.  The banks want to keep you paying them this exorbitant interest indefinitely.  Some of you are paying as much as 30% interest on the money you borrowed.

Don’t make the mistake of feeling that you need to keep paying these companies.  You have already paid them enough so file a bankruptcy, discharge the debts and move on.

 9) Times are very tough and many people need to file more now than ever.  There is a recession on now and you need relief from your debt maybe more now than ever before.  Many people are unemployed and those who are employed don’t know if they may lose their job in the near future.  Even if your job is secure and you expect no pay cut, you still probably need your funds for your ongoing bills.  Why pay for old debts incurred long ago when the money you borrowed back then often went to pay for other bills?

Times are very tough in this recession so explore the possibilities that bankruptcy opens up today.

 10) Personal bankruptcy is your bailout – Corporations file bankruptcies all the time including the credit card companies that you owe money to.  They bail out with bankruptcy so why not you?  In addition many banks have received government bailout money to keep them going.  They then turn around and bug you for money.  That is your money they are receiving from the government but they are not giving you any breaks.

So if big companies can file bankruptcy and get your money sent to them so they can collect more money from you then why don’t you get your bailout?  File bankruptcy.

 11) The creditors absolutely will not stop trying to collect from you until you pay or you are dead or you file bankruptcy.  They only know one thing and that is to collect your debt with all of the interest and penalties that they can add.  They will continue to sell the debt to other collectors and these collection agents have a nationwide network.  They buy, sell, and trade these debts but they keep trying to collect.  They are like the Terminator in that movie.  They are like a machine which won’t stop until you are dead.

If you file bankruptcy then they must stop trying to collect the debt. They will then discard your debt because if they try to collect it after the bankruptcy discharge then they would be in violation of federal bankruptcy laws.

 12) Your situation will probably continue to get worse and worse if you don’t file bankruptcy or pay these creditors.  The collection efforts will increase in intensity and eventually the creditors will file suit.  Many people try to put their heads in the sand and hope the debts will disappear.  This is not the case though as the situation will only get worse.  The debts will grow in size as interest and fees grow.  Eventually some creditors will file suit and serve these on you.

If you do not file at this point then you could get a default judgment against you and they will use this judgment to collect money from you.  They can now lien your house and file a lien against you personally.  Some liens cannot be removed in a chapter 7.

In addition creditors with court judgments can garnish your wages so your income could decline.  They can also get access to your bank accounts and remove money from them legally to satisfy your debt.  You may need that money to pay a bill but it could be gone one day.  They can even call you into court for a debtor’s exam to get you to answer questions about your job, your bank account, and your general financial situation and they can get you in there every 6 months.

Not all of these things will happen to all people but these are the tactics creditors can use against you when they have a court judgment.  As you see here your financial situation will continue to get worse over time when you have debts.  It will not get better on its own and the debts won’t go away.  Therefore don’t delay and preserve your rights by exploring your options with bankruptcy.

(See here for my blog about what the bible has to say about bankruptcy.)

Thank you for reading my “12 Reasons to file bankruptcy article” and if I can be of any further help please call for a free consultation.  I am a San Diego bankruptcy attorney.  Please visit my websites at www.freshstartsandiego.com or www.farquharlaw.com.

Douglas G. Farquhar, Esq.

1901 First Ave. Suite 217H

San Diego, CA. 92101

(619) 702-5015  Call now for free credit report and analysis!

E-mail: farquharesq@yahoo.com

Websites: www.farquharlaw.com or www.freshstartsandiego.com.

For a free e-book: “13 THINGS YOU SHOULD DO TO PREPARE FOR YOUR BANKRUPTCY FILING” please send a request by e-mail to: farquharesq@yahoo.com.

Help coming for mortgage payments? FDIC head Sheila Bair recommends at least a 25% reduction in mortgage payments.

According to Fox business and The Street FDIC (Federal Deposit Insurance Corporation) head Sheila Bair is asking for at least a 25% reduction in mortgage payments on properties that are going into foreclosure.  She said this at a symposium on “Mortgages and the future of housing finance”.  She appears to be asking for this mortgage rate reduction because of the robo-signing scandal where bank employees sign foreclosure documents without reading them.

The banks are trying to downplay the robo-signing calling it just a failure to dot some “i”s and cross some”t”s but I think it is much bigger than that.  The banks seem to not care about doing modifications for their borrowers.  They seem to be processing these foreclosures as fast as they can.  The incentives seem be there for them to go through with foreclosures instead of them trying to keep people in their homes.

My clients are having trial modifications declined without notice and for no reason when they are making the payments on time for many months.  Others are being told they cannot afford a lower payment when they are making a higher one.  Each time you call the bank you get a different person who has a different story.  And they continually lose documents that you send them.  That does not sound like an organization that is functioning properly.

Fed chairman Bernake has said that the Fed is working together with the Department of Labor, Treasury, and the FDIC to stem the foreclosure crisis.  Hopefully, with all of these government agencies, something good will come out of this for mortgage holders in default who don’t want to lose their house.  After all they are from the government and they must be here to help.

Bair at the FDIC is asking for a 25% reduction in your mortgage payment or some “safe harbor” for those who can’t make the payment. Will this get done?  Will something else happen?  We don’t know but stay tuned because there is tremendous political pressure out their for some relief.  The sheer volume of distressed homes is overwhelming and I think everyone realizes that here has to be a solution other than mass foreclosures.

Stay tuned for the next shoe to drop.  I have a feeling its coming soon…..

I am a bankruptcy lawyer practicing bankruptcy law in San Diego.

Please visit my website and blog at:  www.farquharlaw.com

Why are all those baby boomers filing bankruptcy? Isn’t it just for the very young and old?

According to the American Bankruptcy Institute (ABI) 42% of bankruptcy filers were between the ages of 45 and 64 in 2007.  Apparently the baby boomers are filing faster than any other age group and the number of  boomer filers rose 65% from 2002 to 2007.

If you thought that bankruptcy was just for the irresponsible young or for older people who are retired and without an income then you would be wrong.  In fact bankruptcies for younger filers has dropped by 60%.

Many different types of people of all ages are filing for bankruptcy.  Many of my clients are in the baby boomer age group as I am.  Often they have been living off of credit for a long time and they may have suffered a job loss or they may have started a business that has failed.  Many people start these businesses on credit and when the business fails there is nowhere to go but into bankruptcy.

Also baby boomers are likely to have a house and children both of which can cost a lot of money (don’t I know it).  The housing prices have collapsed so there is no more equity to borrow out and many cannot afford the house payment they currently have along with the other credit payments.  Many have unpaid student loans and some have aging parents who need care and money too.  Often boomers’ aging parents have issues related to their health that they can’t handle alone.

In other words baby boomers are like everyone else only more so.  More likely to have kids, a job loss, a house, dependant parents and of course more debt.  It is not surprising to me then that they have to go bankrupt in large numbers.

So it’s not just the young and old that file anymore.  It’s the boomers who have been hit by recession, housing crisis, and unemployment and its the boomers that are shouldering the burden of their kids and their parents.  Its their turn but they sometimes can’t do it all without help.

Any questions about bankruptcy please visit my website at:


I am a bankruptcy lawyer practicing bankruptcy law in San Diego.

California “real” unemployment rate is 22%- the worst since the great depression!

(See here for my blog on how actual unemployment is up because people are leaving the workforce).

60 Minutes did an expose on unemployment in the US with a special eye on California.  I revealed some shocking and astounding stats showing an unemployment reality that is far worse than what we imagined.

The 60 Minutes piece revealed that:

22% unemployment in Californiathe worst since the great depression!  (The national figure was 17.5%).  If you include the under-employed (people working part-time that want to work full-time), and the people who have given up looking for a job the real unemployment rate in California is 22%.  The regular unemployment for California stands at 9.7%.

– Congress has responded by extended unemployment benefits to 99 weeks which will cost more than 100 billion dollars.  The people collecting unemployment compensation for 99 weeks (or 2 years) are now called “99ers”.

– More than one in 5 people is unemployed or under-employed.  That has a devastating effect on the state.  These people cannot pay taxes.  They cannot pay their bills.  They will lose homes, cars and some will become homeless.

– One woman talks of applying for a clerk position where 4 jobs were sought after by 2000 applicants.  Another man has looked for a job for 2 years and he finally got one at Target for $9 an hour.  Whole buildings are vacant in San Jose (silicon valley) where 75,000 jobs have been lost.

– Many of the unemployed are well-educated.  20% have college degrees.  One third of the unemployed have been out of work for more than a year which has not happened since the great depression.

Where are we going with all of this?  Bread lines? Soup kitchens?  How about world war III to get us all out of it in the end (deja vu all over again)?   Anyone else think we need new economic policies to restart this economy? I don’t believe that the country or the state can sustain this forever.

Bankruptcies are up yes but will there be anyone left to go bankrupt?  What if we have 30% or 40% unemployment in the future?  My advice to my clients is to file for bankruptcy now to get out of debt and if we are lucky this will blow over in 2 years and then you can get credit again if you need to.

As far as California goes I am losing hope.  The same lawmakers are being returned to office again and again and they continue to spend and raise taxes and fees which will drive away more businesses and jobs.  The state and local governments are bankrupt and their unfunded pension liabilities are mounting.

Poor California will probably not fall into the ocean but it sure is falling into a deep dark financial abyss.  Maybe the whole state will be forced to declare bankruptcy……

For more info, blogs and bankruptcy information please go to my websites at www.farquharlaw.com or www.freshstartsandiego.com.  Or call for a free consult about any bankruptcy or debt related issue at (619) 702-5015.  For a free e-book: “13 THINGS YOU SHOULD DO TO PREPARE FOR YOUR BANKRUPTCY FILING” please send a request by e-mail to: farquharesq@yahoo.com    I am an San Diego bankruptcy attorney.


Happy Halloween! Watch out for “Zombie” debt collectors! File bankruptcy.

Zombie debt is debt which you once owed but now it is actually beyond the statute of limitations for collection.  It dies a natural death after the statute runs.  It is therefore uncollectable legally but it is brought back from the dead like a zombie by debt collectors who buy it up for pennies and then try to collect it from you.  It can be a real problem for people as these zombie debt collectors attack unsuspecting people just like in a zombie movie.

What is worse is that the creditors can report the zombie debt to your credit bureau which can lower your credit score.  Some people will pay the debt  just to save their credit from ruination.  If you happen to convince one of these collectors that you don’t owe the debt then they can just sell it to someone else who will try to collect it from you.

The problem is how can you prove that it is zombie debt?  The debt collectors will just tell you to pay it even though it is beyond the statute of limitations.

It is true that you can usually win a lawsuit over zombie debt because the creditor will have a hard time proving that the debt is live and even that it is yours and that they own it.  But most people don’t respond to these lawsuits and the creditors get default judgments and they go right to collection with them.  That leaves you with a creditor with a judgment against you who can seize assets and garnish wages.

The good news is that bankruptcy solves the problem of zombie debt altogether.  You don’t need to argue about it or fight about it in court.  Bankruptcy will cause the zombie debt to be discharged regardless of whether you owe it or not.  You can even list the debt in your bankruptcy as “disputed” which means that you do not admit that you owe it.

Once you get your bankruptcy discharge then zombie debt is gone.   If the collectors try to collect it after a discharge then they are in violation of federal law.  Bankruptcy is how we have learned to shoot the zombies in the head so they do finally stay down.

Check out my website at www.farquharlaw.com.

I am a bankruptcy lawyer practicing bankruptcy law in San Diego.

Happy Halloween!

Do you want government health care? Think again- your medical bills may become non-dischargeable in bankruptcy.

Will your bankruptcy “out” for medical debts be gone if the government takes over health care?

We know that the government generally exempts itself from bankruptcy discharges.  Debts owed to the government generally pass through a bankruptcy unaffected meaning that you still owe them after it’s all over.  It’s not fair but its the way it is.  Most taxes and government fines, fees, and penalties are all not dischargeable in a bankruptcy.

The question becomes what happens if the government takes over health care?  If you are in some government collective that provides health care and you owe them money for medical services and you cannot pay then what happens?

Currently with our private system all of those medical debts are dischargeable because they are owed to some private hospital or doctor.  If you owe the money to the government collective then I predict that these debts will not be dischargeable like all the other government debts.  You will have therefore lost the benefit of bankruptcy that you had before when health care was private.

These government collectives, pools, or exchanges will be a reality and they will be run by the government.  Since government is supposedly for the benefit of the people, the money you owe them will not be dischargeable in bankruptcy and you will be stuck owing them regardless of what you do.

If they say “it’s affordable health care” and you still can’t afford it then what will you do?  When you owe money to the IRS they can lien and take any property they want from you including your wages.

Keep this in mind with government health care.

I am a San Diego bankruptcy attorney.  For further information please visit my websites at www.farquharlaw.com or www.freshstartsandiego.com.  Or call my office for a free consultation at (619) 702-5015.

For a free e-book: “13 THINGS YOU SHOULD DO TO PREPARE FOR YOUR BANKRUPTCY FILING” please send a request by e-mail to: farquharesq@yahoo.com.

What debts are non-dischargeable and what debts are dischargeable in a chapter 7 bankruptcy?

Non-dischargeable debts

1) Student loans- Sorry!  Totally non-dischargeable unless you can prove undue hardship which is very hard to prove.   Any loan for any educational purpose is probably not dischargeable in bankruptcy.

2) Government fines, fees, and penalties- Generally not dischargeable in a bankruptcy.  Any ticket or fine from a government agency is non-dischargeable.  The exception to this rule is the three-year old income tax debt.  Generally the government exempts its debts from the bankruptcy system.

3) Spousal and child support obligations- All non-dischargeable and in fact the trustees often ask if these obligations are being paid whether the debtor is the party that owes the support or the party that is owed the support.

4) Debts involving criminality and fraud-Not dischargeable and drunk driving is specifically mentioned in the bankruptcy code under debts that are non-dischargeable.

Dischargeable debts

1) Credit cards and personal loans- Generally all dischargeable.  The exception is when the creditor can prove that you had no intention to pay back the debts when you incurred them.  They do this by looking at when you charged something and what you charged.  Generally old charges are safe as are all charges for necessities.  But recent large charges on credit cards for luxuries might be challenged by a creditor at an adversary hearing in bankruptcy court.

2) Medical debts- Usually dischargeable without a problem unless you got some purely cosmetic surgery recently that you had no intention to pay for when you underwent the surgery.

3) Deficiency balances-Deficiency balances on autos, jewelry, furniture, and even second and third loans on homes are all dischargeable in a bankruptcy without a problem if the creditor has already repossessed the original property.  If the creditor has not then all he can do is recover the property.  He must leave you alone.

4) Debts not listed in the bankruptcy- There is case-law that states that if there is an unintentional failure to list a debt in the bankruptcy then it is dischargeable if there was no fraud, and there were no assets that were distributed by the trustee, and you received your discharge.  These are 9th circuit rulings and there are two cases that support this principle so don’t worry about this one.

E-mail me today at farquharesq@yahoo.com if you have a particular debt that you have questions about.

I am a bankruptcy lawyer practicing bankruptcy law in San Diego.

Should I use chapter 7 bankruptcy to stall a foreclosure?

You should probably not file a chapter 7 bankruptcy if your sole purpose is to stall a foreclosure on your home.

Bankruptcies can be used to stall, put off, or temporarily prevent an immediate foreclosure but I usually recommend to my clients that they have some other debt that they can include in the bankruptcy before they file.  Bankruptcy is especially good for eliminating credit card and personal loan debt, auto deficiency balances, and medical debts.  All of those debts can be easily discharged in a bankruptcy.

If you do a bankruptcy and you are going to have to live with the bankruptcy on your credit report I advise that you have some of these debts to discharge in the bankruptcy before you make the commitment to file one.  I don’t recommend that you file a bankruptcy if your only reason is to stall a foreclosure.  It is usually too heavy of a hammer to use to only accomplish this.

For one thing the creditor can file a motion for relief from stay immediately after you file and the creditor can get this granted in 30 days.  Once the stay is lifted then the creditor can proceed with the foreclosure anyway.  Now you have a bankruptcy on your record and you only got a 30 to 60 day stall in your foreclosure.  If you have no other benefit to receive from the bankruptcy then I believe that it is not worth it to file just to get a 30 to 60 day stall.  It’s good to have another reason to file.

So use bankruptcy for foreclosure stall if you receive another debt relief benefit from it.  Don’t just use it just to get a small amount of time when you will be right back where you started from in 30 to 60 days but now with a bankruptcy on your credit report that will show up for years.

E-mail me at farquharlaw@yahoo.com right away if you have a sale date scheduled on your home and you are considering bankruptcy as an option.

GMAC and Bank of America lift foreclosure freeze? I guess all of the problems are solved then.

Boy that was a quick freeze!  It was over almost before it started!  Is it a good idea to let these banks police themselves or should someone from the outside look at what they are doing?

Have they not heard about robo-signing?  How about the allegations from Congressman Alan Grayson’s allegations of fraud and law-firm mills which process foreclosures fraudulently in bulk?  How about the allegation that the banks don’t have the legal right to do a foreclosure because they no longer own the note?

I guess none of this matters.  Bank of America and GMAC both announced that they will lift the foreclosure freeze and begin again to process these foreclosures, at least partially.  This is bad news for those consumers who are currently facing foreclosure.  These people have no way of telling if their foreclosure is being processed correctly and legally.  They also may lose their home to a foreclosure that could be illegal.  How will they tell?

Many of my clients don’t have the money to hire an attorney to sue the bank to stop their foreclosure and I believe the banks know that.  Chase has set aside $1.3 billion for litigation for those that do but they will count on most people just walking away from their home and allowing the bank to foreclose.

It seems that the only people who can stop these banks and their foreclosures now are the lawyers.  Lawyers can possibly stop these people by filing lawsuits against the banks.  For now though there are federal and state investigators in Florida looking the foreclosures there.  Florida is a state which can compete with California in foreclosures.  Lets hope that the investigators can make their way west to our state.  Maybe they can stop this tidal wave of foreclosures.