Beginning on June 1, 2010, new HAMP rule changes will now make it possible to seek mortgage modification while in an active bankruptcy case. Under existing U.S. Treasury rules, mortgage lenders are not required to consider modifications under the federal government’s Making Home Affordable Program (HAMP) while a homeowner is in an active bankruptcy case; however, these rules are about to change and they will prevent lenders from saying no to mortgage modification during bankruptcy cases.

This will make it much easier for homeowners to seek modification of their mortgages and save their home while adjusting and discharging other debts in a single proceeding. The rules also allow use of the schedules filed in the bankruptcy case to be used as the modification application and other streamlined procedures that will make it easier to communicate with lenders. It also gives the homeowner the added protection of a Court Order approving loan modifications to prevent future mortgage problems caused by the mortgage company.

In the Orlando Division of the Middle District of Florida, the U.S. Bankruptcy Court has also launched a Mortgage Mediation Program to bring mortgage lenders to the negotiation table and offers sanctions against mortgage lenders who refuse to participate. In most cases, the trial period may be waived by making mortgage payments through a Chapter 13 Trustee.

These new rules make Chapter 13 Bankruptcy a much better option to seek mortgage modification and stay other creditors at the same time. It can also allow for the “stripping off” of second mortgages, lowering car loan payments and minimal if any payment to unsecured credit card debts. A homeowner who files for Chapter 13 Bankruptcy to reorganize may emerge from the case with a modified first mortgage, a second mortgage that is gone forever and be otherwise debt free upon plan completion and discharge.

Finally a rule change to help the American Homeowner save their home. Most homeowners I meet with here in Central Florida need a mortgage modification and bankruptcy relief and now rules will make it easier to get both types of relief at the same time. I believe this will really give homeowners a better chance to save their homes and resolve other debt problems through Chapter 13.

To learn more about how these new HAMP rules and Bankruptcy Court Mediation in the Orlando Bankruptcy Court may help you, contact Mr. Baker.

By: Richard R. Baker, Esquire

Chair of Orange County Bar Association Bankruptcy Committee

Richard R. Baker, Esquire is a Consumer Bankruptcy Attorney in Central Florida licensed since 1993. He is the current Chairman of the Orange County Bar Association Bankruptcy Section and is the Orlando Assistant-Chair of the National Association of Consumer Bankruptcy Attorneys. Mr. Baker received his B.S. in Finance from Florida State University and his J.D. from Cleveland-Marshall College of Law. A frequent lecturer and Author Mr. Baker also trained with O. Max Gardner at his Bankruptcy Litigation Bootcamp in 2006. Mr. Baker practices law and has offices in Winter Park, Florida and is located at 1355 Orange Avenue, Suite 3, Winter Park, FL 32789. Email: RBaker@legalquestion.com Web: http://www.legalquestion.com Tel: 407-647-8833

I’m looking to relocate from NJ to Orlando/Oveido FL but how or where do I begin. What would I do for Work?

My husband and I currently work in NYC but live in NJ. We are renting a home for 2500.00 a month and between commuting cost, gas prices, and everyday living, times are hard and my husband and I are looking for a change. We’ve had a rough year going thru changes with my oldest as well as with our jobs and think relocating would be best for all of us. After a two week vacation in Orlando FL we decided FL would be a good idea. We also have friends in the East Orlando section and thought the Oveido area seems ideal but do not really know much about it.
With two kids in High school and one in middle school, schooling is a big concern. How are the schools there? Although my company has a location in the Orlando area, I think they would give me a hard time about relocating. What would I do for work? Is it really hard to find a job out there? I need all the thoughts and ideas anyone can provide. This is a change we are all anticipating and I would love to find a way to make it work!

I’ve had friends move to Florida and my parents also moved there. You’re going to have to do some serious research, because from what they’ve all told me it’s truly a different way of life and maybe not for everyone. One thing youll want to consider is the weather, from hurricanes to heat waves to droughts. My friends didn’t think much of the public school system, but there will be some info there online. You’re going to probably need to find a job before you can get any decent rental accommodation. The cost of moving is also not cheap and you’ll need to factor that in. One experience all of my friends and family had in common was utter horror at the traffic during tourist season, but from what I understand tourism is the number one industry there, so that shouldn’t be a surprise.

Work From Home Orlando Florida!