Getting a co-signor off a loan

Not the easiest thing to do. Generally, you would have three options:

1. Refinance the property;
2. Payoff;
3. Novation;

Novation meaning a new loan, as in someone assuming your mortgage. You need to check the loan documents to see what is allowed or not, but I would not think a novation likely with the current real estate/mortage market.

Increase in Federal Minimum Wage Goes to $6.55

Thanks to Labor Law Center Blog's Federal Minimum Wage Goes to $6.55 because I forgot there would be an increase this year.

"On July 24 2008, the federal minimum wage will increase by 70 cents from $5.85 per hour to $6.55 per hour. The federal wage affects every employer with annual revenue over $500,000 per year, and those who engage in interstate commerce."

This applies also to collections - the minimum wage for a garnishment becomes now $196.50.

Collections: Indiana Court of Appeals and Bank Garnishments

Time being short, I am relying on The Indiana Lawyer's Bank not required to restrict withdrawals for now:

"In JPMorgan Chase Bank, N.A. v. Laura and Dennis Brown, c/o Green, Richard & Trent and Rebecca Recht, , No. 02A03-0801-CV-2, the appellate court had to interpret I.C. Section 28-9-4-2 to determine whether a depository financial institution that has received notice of garnishment proceedings is required to restrict the withdrawal of money that is subsequently deposited into the account."

The case looks like one of those that turns on a very technical point but one that is of importance to many debtors and may affect how collections counsel approach garnishing bank accounts.

I promise a follow up over the weekend.

Sheriff's Sales

Indiana Commercial Foreclosure Law posted Indiana Sheriff's Sales - Local Rules, Customs and Practices Control which provides some good information about sheriff's sales and links to online sources:

Although the Indiana Code covers the fundamentals of the sheriff's sale process, the specific rules and procedures vary by county. I presented at a foreclosure-related seminar last month, and one of my co-presenters accurately stated, in essence, that there are 92 counties in Indiana and therefore 92 different sets of rules applicable to sheriff's sales. My advice is to call or visit the local civil sheriff's office to confirm the hoops through which you must jump, and when, to start and finish a successful sheriff's sale

With Indiana foreclosures still continuing at a good pace, I suspect this area is one that we all need more about.

Mr Waller did not mention Madison County but you can find some useful information about us in my post Foreclosure sales - Madison County, Indiana.