Wilshire Credit Corporation * New phone tree option added

Trooper_IHB

Trooper_IHB

New member
<p>I called Wilshire (my 2nd mortgage provider) today because their website was acting up. I was surprised to hear a new option added on their phone tree.....</p>

<p>"If you are currently experiencing active bankruptcy, press 5". WHOA ! </p>

<p>check it out 888-502-0100. </p>
 
Does anyone have a link to the latest bankruptcy data? Bankruptcies ought to follow the pattern of foreclosures with some time lag.
 
<p>IR, if someone declares BK in California, does that save their primary residence ? If so, how does it work.....and why wouldn't everyone do it.</p>

<p>Apparently Wilshire is getting enough calls to put it in their phone tree. Also, the beginning of the recorded message asks, "are you interested in refinancing your loan, just speak to a customer service representative". </p>

<p>Perhaps Wilshire may be experiencing something similar to New Century? I remember you saying they serviced primarily subprime paper. </p>
 
I am not an expert on bankruptcy law, but I know that certain assets which are backed by debt can be kept as long as you continue to make the payments. For example, you can declare bankruptcy and keep your expensive car provided you can make the payments after bankruptcy. I imagine the same rules would apply to a house: if you declare bankruptcy, but you continue to make your house payments, you should be able to keep the house. Unfortunately, it is the house payments which are driving people into bankruptcy, so it won't be of much help to most people. There are probably some people that have too much personal debt to pay the credit cards <em>and </em>their house payment. These people might be able to declare bankruptcy and keep their house. Perhaps if someone with more knowledge about bankruptcy could comment, there are probably special provisions when it comes to your primary residence of which I am unaware.
 
<p>So, the more people that try and save their homes by filing BK, means more credit card companies will be taking it in the shorts. And who said the housing debacle wouldn't affect the entire economy.... </p>
 
<p>Also, it doesn't appear that this post has caused much interest.....as it was just kind of a notification of Wilshire's new "trend". </p>

<p>Yesterday, you wrote:</p>

<em>"Does anyone have a link to the latest bankruptcy data? Bankruptcies ought to follow the pattern of foreclosures with some time lag</em>".



Perhaps you can start a new post on this topic ? Not sure if it merits it or not.... thx.
 
I would imagine that we could find the BK data somewhere. In the 90s BKs were tracked constantly by Lansner. I've emailed him about this since the BK laws have changed. I don't know what all the changes were but IIRC chapter 7 has made it more difficult to keep your home. I should look into it since Lansner isn't a lacky anymore he won't do it.
 
Very generally speaking, a BK would delay a foreclosure, which is one reason Wilshire would likely want to know. No point in paying all the costs associated with a foreclosure only to find out days beforehand that you can't go through with it because the borrower is BK.





I had also heard, but can no longer find the link to the article, that many re-fi lenders were having borrowers waive Calif's deficiency protections. In other words, if you loan was $500K but the house sold at auction for only $400K, then the borrower was still on the hook for the $100K difference. Statutorily, in California, that wasn't the case, but you can waive all kinds of protections in a contract. I suspect many people did not read their paperwork.





With respect to the credit card concern, the new BK laws that went into effect two(?) years ago really changed the playing field. IIRC, it's much more difficult to have debt out and out discharged.
 
<p>EvaL, You say a BK (generally) will DELAY a foreclosure....but it is fairly inevitable that the person filing will eventually lose the house anyways ? If so, what type of time frame are we talking about ? </p>
 
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