Archive for September, 2014
Bank of America and Bank of New York Mellon offered loan modification with principal reduction of $35,000 to Texas Homeowners
At Duke Seth, PLLC, clients are not just the file numbers or loan numbers. We care about our clients. Mr. & Mrs. G from Amarillo, Texas engaged Duke Seth, PLLC to stop the threatened foreclosure on their house and to obtain a loan modification. A lawsuit was filed against Bank of America and Bank of New York, challenging their right to foreclose on Mr. & Mrs. G’s property, as a “Lender” by attorney Meenu Seth. Defendants removed the lawsuit from the State District Court to the Federal District Court and filed motion to dismiss, which was denied by U.S. District Court. Defendants then filed the Motion for Summary Judgment, which was also denied by the Court, which forced Bank of America and Bank of New York to consider the loan modification option seriously. Along with the ongoing litigation, attorney Meenu Seth also started the loan modification negotiations with the counsel of Bank of America and Bank of New York. After weeks of intense negotiations, Mr. & Mrs. G were offered a loan modification with a principal reduction of $35,000.00 and an interest rate of 2.5%.
Mr. & Mrs. G are now enjoying their home for three months now. Attorneys at Duke Seth, PLLC work hard for these happy endings.
It’s hard to believe that we’re now six years removed from the onset of the financial crisis. Lehman Brothers filed for Chapter 11 bankruptcy protection on September 15, 2008, in what is the largest bankruptcy filing in U.S. history. Unfortunately, that was just the beginning.
CNBC put out a very interesting piece revisiting the Lehman debacle and looking at the bailout that never materialized for this bank. It takes a look back at some of the decision-making and some of the input that went into those decisions.
The Great Recession is an event that fascinates me both professionally as a lawyer and personally. It still amazes me, 6 years later, at how the U.S. economy, and much of the world’s economy, was almost done in large part by investors betting on bad loans that never should have been made and that were mishandled once they were made.
The economy is much better than it was six years ago in September 2008. Some parts of it are booming now. But many other parts are still feeling the effects of the Great Recession. Unemployment and underemployment rates are still higher than they should be. Lending standards have eased some since the years immediately following the collapse, but they are still hard to come by. And in what scares me the most, real estate prices are skyrocketing again creating a potentially new housing bubble.
On this sixth anniversary at what will probably be the worst economic event of my lifetime, it is interesting to take a look back and wonder “what if.” It’s at least a more productive activity than taking another Facebook quiz to figure out “what soup am I.”