On September 20, 2011 I was a speaker for Law Review CLE on the topic of Foreclosure Defense in Orange, California and again on November 10, 2011 in Riverside. My perspective is always from the bankruptcy side where we will file under Chapter 13 of the Bankruptcy Code to initially stop the foreclosure sale. The benefit to this strategy is, the moment the bankruptcy case is filed, the Debtor’s mortgage becomes current and the Debtor will make up the mortgage arrears through trustee payments in their Chapter 13 Plan.
Many practitioners in attendance practice in state court’s, and it was depressing to hear their state court hurdles of having to file bonds with the court that are prohibitive to the homeowners and the level of difficulty in moving their cases to the discovery phase. Ironically, our bankruptcy judges continue to tell bankruptcy counsel that the foreclosure defense issues like, “who owns the note” argument needs to be addressed in state court. It’s as if the two benches are pointing fingers and neither wants to take the time to learn about the mortgage securitization issues because their calendars are packed.
Never fear that I shared my Max Gardner Bootcamp wisdom, some of my most recent moving papers, and cutting edge legal arguments we are making that we hope will persuade the bench that mortgage creditors are committing fraud upon our courts, every time. There is hope through the bankruptcy process and it’s important to hire competent counsel to assist you when facing these complex issues.