Full Coverage

BK Judge Rules Stated Income HELOC Debt Dischargeable

                   
calculatedrisk.blogspot.com
May 29, 2008
        
Story Timeline:  190 days

This is a big deal, and will no doubt strike real fear in the hearts of stated-income lenders everywhere. According to the court, their combined annual income never exceeded $65,000.In April 2006, the Hills refinanced their existing $100,000 second lien through a mortgage broker with National... [read full story]                    

Add Comment
Latest article on this story:

Bankruptcy Reform Act Finally Blows Sky High

 freerepublic.com May 30, 2008
First article on this story:

HELOC Debt Dischargable Under Chapter 7 Bankruptcy

 lendingleaves.com May 29, 2008
Selected publications with coverage of this story:
freerepublic.com calculatedrisk.blogspot.com 1stmillionat33.com seekingalpha.com theconglomerate.org lendingleaves.com
RELATED
Found 5 documents:
                   

Bankruptcy Reform Act Finally Blows Sky High

freerepublic.com
May 30, 2008
        

The Debt Slave Act, better known as the Bankruptcy Reform Act of 2005 has at long last blown sky high. We will get to "how" in just a moment but first let's review some of the provisions of the bill. Lenders asked for and received...

                   

Liar’s Loans Coming Back to Bite

1stmillionat33.com
May 30, 2008
        

The recent article on calculatedrisk.blogspot.com is going to strike fear into irresponsible lenders’ heart. Stated income HELOC debt is dischargeable in the bankruptcy court. Oops! Where are they going to get their money back? And...

                   

Bankruptcy Reform Act Finally Blows Sky High

seekingalpha.com
May 30, 2008
        

Michael Shedlock submits: The Debt Slave Act, better known as the Bankruptcy Reform Act of 2005 has at long last blown sky high. We will get to "how" in just a moment but first let's review some of the provisions of the bill. Lenders...

                   

Liar Loans and Bankuptcy Discharge

theconglomerate.org
May 29, 2008
        

Judge Leslie Tchaikovsky, a bankruptcy judge in the Northern District of California, has issued a whopper of an opinion holding that a mortgage lender on a stated income loan is not entitled to rely on the "stated" income in the loan application for purposes of bankruptcy discharge. A stated...

                   

HELOC Debt Dischargable Under Chapter 7 Bankruptcy

lendingleaves.com
May 29, 2008
        

One of the problems with stated income mortgage loans -- whether they are first mortgages or HELOCs -- is that the lender relies on the borrower to correctly represent income. And in some cases, the borrower overstates his or her income in order to get the loan.Recently, this happened with...