#Foreclosure

Jan 22, 2014
4 min

How the 2014 Changes to Regulation Z (TILA) and Regulation X (RESPA) Impact Homeowners...

How the 2014 Changes to Regulation Z (TILA) and Regulation X (RESPA) Impact Homeowners who are in Default on their Mortgage or in Bankruptcy The Consumer Financial Protection Bureau (CFPB) is the federal agency that oversees and sets the standards and regulations for how home mortgages are serviced by lenders, particularly in the wake the post-2010 mortgage crisis. Amongst its many duties, the CFPB is tasked with creating and enforcing regulations on how home mortgages are se

Lynn Wartchow

Oct 31, 2013
2 min

Foreclosure

How to Postpone the Sheriff’s Sale: Minnesota Statutory Postponement of Foreclosure Sale

In Minnesota, homeowners can apply for a postponement of the sheriff’s sale scheduled in a foreclosure process. So long as the foreclosure process is the standard “foreclosure by advertisement” (i.e., the most common Minnesota foreclosure process for residential homestead property), the sheriff’s sale is at least several weeks away, and the documents are properly completed and recorded in the correct offices, a sheriff’s sale will be automatically postponed by five months. Th

Lynn Wartchow

Aug 27, 2013
2 min

Homeowners/Condo Associations

Condo, Townhome and HOA Association Liens in Minnesota

In Minnesota, if you have unpaid condominium or townhome association assessments—which are often called “HOAs”—these unpaid amounts operate automatically as a lien on the property under Minnesota Statute § 515B.3-116(a), which is part of the Minnesota Common Interest Ownership Act. What a condo or townhome association lien typically means for the homeowner is that you cannot get out of paying past due HOA assessments while you own the property. Further, it means that the prop

Lynn Wartchow

Nov 30, 2012
3 min

Chapter 13

Homeowners Associations and Bankruptcy: How Does Bankruptcy Affect My Condo or Townhome and My Assoc

The prevalence of condo and townhome development in the mid-2000s throughout Minneapolis and the suburbs was hit especially hard by the decline in the real estate market, with prices sinking disproportionately on these urban homes that were often originally overpriced and over-marketed to younger consumers. Owners of condos or townhomes who file bankruptcy should be aware of the Minnesota laws that govern the association’s rights as well as be properly advised of what bankrup

Lynn Wartchow

Jul 24, 2012
3 min

Chapter 13

Foreclosure in Minnesota: Know the Process, Timeline and How Bankruptcy Can Help

Home foreclosures in Minnesota are common and arguably are even on the rise despite an improving real estate market. In April 2012, the Star Tribune reported that while foreclosures were slightly down during the first quarter of 2012, signs still point to an 11 percent increase in Minnesotans facing foreclosure, adding that one in 312 Minnesota homeowners have received some sort of notice of foreclosure. Home foreclosure in Minnesota happens via one of two legal proceedings:

Lynn Wartchow

Apr 10, 2012
2 min

Foreclosure

When Will I Owe a “Deficiency” after Foreclosure in Minnesota? It Depends.

Under some circumstances after foreclosure, a deficiency may still be owed on a foreclosed property. A deficiency or “deficiency judgment” is obtained by some lenders (a.k.a. “mortgagees”) after a foreclosure on real estate where the sales price of the property does not cover the balance due on the mortgage plus related any fees and costs. The amount of the deficiency is usually the difference between the total amount due on the note including expenses and costs and the amoun

Lynn Wartchow

Mar 9, 2012
3 min

Debt Collection

Received a Form 1099-C on Foreclosed Home? You May Qualify for the Mortgage Forgiveness Exclusion to

If you receive a Form 1099-C reporting ‘debt cancellation’ income after a home foreclosure, you may qualify for the Mortgage Forgiveness exclusion. As if the distress of home foreclosure isn’t enough, homeowners may receive a Form 1099-C from their former mortgage lender reporting the deficiency owed as income to the homeowner. The income reported on the Form 1099-C is what’s referred to as “Cancellation of Debt Income” or “Discharge of Indebtedness Income”, both of which gen

Lynn Wartchow

Sep 23, 2011
2 min

Chapter 13

Bankruptcy May Increase Your Options in Foreclosure

Foreclosure is a common predicament faced by many people filing bankruptcy, and is an issue that affects homeowners at every income level. If you are behind or “in arrears” on your mortgage payments for more than a couple months, chances are your primary mortgage lender will send you a pre-foreclosure notice demanding that you make payment otherwise they will take legal action. Eventually if the mortgage is not brought current, a mortgage lender will initiate a foreclosure pr