Rhode Island Foreclosure And Loan Modifications In Bankruptcy Court
Rhode Island Loan Modification And Foreclosure Attorney
If you are facing foreclosure, there are certain rights and obligations you need to be aware of in order to protect yourself. As an experienced creditor/debtor attorney with over 30 years of experience in dealing with distressed properties and businesses, Douglas H. Smith can assist you in navigating the often complex Rhode Island foreclosure procedures and receivership statutory scheme. There are specific procedures lenders must follow when notifying you of foreclosure, which involve seeking alternatives to foreclosure. If foreclosure is the only option available, certain timelines and timeframes must be adhered to regarding receiving a Notice of Default and a Notice of Sale. Additionally, even though a home is foreclosed upon, the new owner or lender cannot simply change the locks and throw someone out on the street. An eviction process must be followed as well.
In a recent foreclosure workout where we represented the secured creditor, we were able to secure additional collateral for the defaulted loan through the use of registered securities and real estate holdings in a foreign jurisdiction.
Regardless of whether you’re a homeowner or a bank, we understand how to protect and leverage your rights in foreclosure proceedings. To schedule an appointment and discuss your case, contact foreclosure lawyer Douglas H. Smith today.
Bankruptcy And Loan Modifications
If you have a second mortgage on your home, you may be able to discharge it when you file for bankruptcy through a “cram down” or “strip down.” Under Section 506 of the bankruptcy code, a lien can be considered a secured claim only if it is attached to an asset that has value. If your home is now worth less than the original mortgage on it, you can qualify for lien stripping under the bankruptcy code if your second mortgage is secured by collateral that is part of a Chapter 11 or Chapter 13 bankruptcy filing. In essence, the bankruptcy judge will treat your second mortgage as unsecured debt, completely discharging it if you successfully complete the terms of your bankruptcy plan.
Lien stripping, however, can be complicated since there are a number of additional requirements involved. In general, if you qualify for lien stripping, the following must also be provided by you:
- Recent home appraisal
- Current mortgage statement
- Title Abstract
- Other documentation as needed
Loan Modifications And Lien Stripping
Whether we represent the debtor or creditor in a bankruptcy proceeding, close attention must be paid to how an existing loan can be modified through the use of a cram down or Chapter 11 or Chapter 13 reorganization.
We have successfully represented both debtors who have substantially reduced the principal and interest of their commercial loans, and commercial banks that have prevailed on their objections to debtors’ plans to strip loans through bankruptcy.
Contact Foreclosure And Loan Modification Attorney Douglas H. Smith Today
We have the experience and knowledge needed to help homeowners and businesses facing tough financial decisions in these difficult economic times. If you’re interested in either a loan modification or cram down, or if you have questions regarding foreclosure, contact foreclosure attorney Douglas H. Smith today to schedule an appointment and discuss your case.