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The nation’s record foreclosure rates had given birth to the new profession of mortgage auditors. As the foreclosure rates increases at a rate of 5 percent per month, homeowners have sought any means available to stay in their homes. At foreclosure proceedings, the lender must show proof of ownership in compliance with the law. The law requires that all documentation from the loan process to the closing documentation must be present and accurate or a foreclosure proceeding may be thrown out. If a foreclosure proceeding is dismissed, the lender is forced to modify the terms of the loan to avoid foreclosure.

One former mortgage originator began reviewing friends and family’s loan documents and later decided to charge a modest fee to help homeowners possibly avoid foreclosure. Proponents of mortgage auditors believe this service is a useful watchdog to insure lenders complied with the law. One in nearly every 700 homeowners receive a mortgage loan default notice each month. Mortgage auditors are finding their service a benefit to homeowners and necessary agent in consumer rights protection.

Bankruptcy courts have approved the sale of Boscov’s Department Store to a private investor firm. Boscov’s, a popular department store chain in the North Mid-Atlantic region of the nation, is being sold for $275 million to a investor group headed by family members of the Boscov’s family. The family is elated to be able to stay in the communities they have served for years. Boscov’s was forced to close 10 of it s 49 stores after it filed a Chapter 11 bankruptcy this past summer. The sale of Boscov’s will aid it over 5000 personnel stay employed.

Fannie Mae and Freddie Mac have suspended all forclosures starting November 24 util January 9. The nation’s two largest owners of residential mortgage are preparing to review files for mortgages in need of modification. FNMA and FHLMC are both offering to modify mortgage loans to homeowners with at least 3 months deliquency. The key qualifier to the loan modiification is teh new loan must not exceed 38% of the household income before taxes and the loan must be owned by Fannie Mae or Freddie Mac.

Vermont’s bankruptcy rates have surpassed the national average. The small northeastern state has experienced a 44 percent increase in bankruptcy filings since this time last year. Of the various forms of bankruptcy, Chapter 7 bankruptcy filings have increased by 66 percent in Vermont over the past 12 months. Chapter 7 bankruptcies provides its petitioner the ability to liquidate non exempt holdings to satisfy any debts and receive a financially “fresh start.”

Chapter 13 bankruptcy allows the filer the ability to maintain property and re-organize debt and allowing many its filers maintian their homes. In Vermont, chapter 13 bankruptcies are not keeping pace with the national average, but have seen a signficant increase. Vermonters worsened and record economic state is seen as a result of the nation’s fallen home prices, flattened incomes and dried lending channels

The Attorney General of Minnesota has created a plan to remedy escalating foreclosures in the state. The proposed plan would require lenders to mediate with homeowners in an attempt to circumvent foreclosure. Minnesota is currently on track to lose an estimated $70 billion dollars in home values in the next 12 months, dramatically reducing property taxes collected and directly negatively affecting state supported programs. Under this foreclosure plan, as much as 90 days would be allowed to mediate new mortgage terms. The new loan terms could include lower interest rates and forgiven principal.

A similar plan was instituted in the mid 1980’s to aid US farmers faced with defaulting farm loans. Over 14, 000 farms were saved under the original plan in the 1980’s. Some bank critics believe Minnesota’s foreclosure process is among the longest in the nation and that states should wait on the entering federal administration’s plans before initiating new foreclosure legislation. The Minnesota attorney general responded that the relief plan addresses the “little guy,” forgetten during the discussions for the $700 billion government bailout.