Industry News

New law’s most damaging parts on homeowners

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

Editor's note: The new bankruptcy law that took effect on Oct. 17, 2005, included many provisions that affect both residential and commercial real estate. But attorneys are still debating whether the real estate market overall will benefit from the changes. In this three-part series, we consulted with bankruptcy and real estate law attorneys on the specifics of how the new law impacts homeowners, renters, landlords and homeowner and condo associations. (See Part 1 and Part 3.) Two lawyers who specialize in bankruptcy law say the most damaging provisions for homeowners behind in their mortgage payments under the new bankruptcy law are those that apply to homeowners who've filed for bankruptcy once or twice within the previous year. And they say repeat filing is fairly common even for people filing in good faith. "One area we're seeing emerging in the case law that really impacts the ability to save a home is in the area of repeat filers," said Duane H. Gillman, an attorney with D...