The American Bankruptcy Institute recently highlighted that average long-term mortgage rates are at their highest levels since mid-March, citing an Associated Press report. According to Freddie Mac, a 30-year fixed-rate mortgage averaged 6.79% as of June 1, 2023, up from 6.57% just a week earlier. A year ago, that number sat at 5.09%. In addition, a 15-year fixed-rate mortgage averaged 6.18% on June 1, up from 5.97% a week earlier and 4.32% at that time a year ago. While added interest makes monthly payments soar for first-time buyers, this also affects existing homeowners with adjustable-rate mortgages set to hit an adjustment period. Refinancing might not be the answer, but loan modifications or bankruptcy could help prevent foreclosure, short sales or other instances of financial distress. In certain cases, a lender may offer the ability to alter the conditions of the original agreement through a loan modification. Alternatively, bankruptcy has multiple… Read More »
Bankruptcy, Foreclosure |
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A federal bankruptcy court recently ruled student loan servicer Navient cannot collect on $182 million worth of loan debt at issue in a long-running litigation matter. The settlement provides relief to about 4,600 student borrowers whose loans exceeded college tuition costs. The plaintiffs in Homaidan v. SLM Corp. alleged Navient violated their legal rights by continuing efforts to collect on debts that were discharged in bankruptcy. In what became a high-profile bankruptcy class action, Navient has also been ordered to pay $16 million to compensate for litigation costs of the people involved in the legal battle and take steps to help remove the debts from borrowers’ credit reports. However, most notably, the company has now publicly backed reform related to how student loans can be handled through bankruptcy. According to the Philadelphia Business Journal, Navient has reached an agreement in principle or concluded litigation in three other matters similar to… Read More »
Bankruptcy, Student Loans |
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In the aftermath of Yellow Corporation filing for bankruptcy, The Kansas City Business Journal recently interviewed Sader Law Firm Managing Member Neil Sader, who gave his perspective on the key elements to consider in the upcoming proceedings. In the article, titled “4 key issues in Yellow bankruptcy that veteran attorney Sader is tracking,” Sader provides insight into the ripple effect that Yellow Corp. closing its doors will create in the coming months. Yellow Corporation closed its doors in early August with 100,000 creditors owed, $2.15 billion in assets and $2.59 billion in debts. Sader spoke to four main categories related to Yellow Corp.’s bankruptcy: cash collateral, the “stalking horse bid,” the court’s actions, and other ongoing legal action. “The court’s perspective is to try and maximize the estate and do it in a fair and equitable way,” Sader said in part. “The court’s first priority will be to ensure that… Read More »
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