Homeowners facing foreclosure have been honing tactics to delay the inevitable. Some of the tactics include challenging the bank’s actions, waiting to file paperwork right up until the deadline, requesting the lender dig up original paperwork and declaring bankruptcy.

Nationwide, the average time it takes to process a foreclosure — from the first missed payment to the final foreclosure auction — has climbed to 674 days from 253 days just four years ago, according to LPS Applied Analytics.[1]

Banks have given delinquent borrowers some of the ammunition they need to delay the foreclosure process. During the “robo-signing” scandal in 2010, it was revealed that bank employees signed paperwork attesting to facts they had no personal knowledge of. Now, borrowers are routinely challenging that paperwork.

Sometimes just asking the bank to produce the paperwork that shows it is the legal holder of the mortgage note can stall a repossession. Since mortgages are often transferred electronically, the official paperwork often gets misplaced.

In some cases, borrowers will file for bankruptcy in order to block a foreclosure. In these instances, courts order creditors to cease their collection activities immediately. Home auctions can be postponed as the bankruptcy plays out, which can take months.

If you are facing foreclosure or are in default on your mortgage, contact Christopher C. Phillips at Phillips Law for a free consultation. You may have more rights and options than you realize.

The nation’s third largest carrier, American Airlines, filed for bankruptcy protection under Chapter 11 on November 29. Until the filing, American was the last major carrier to avoid bankruptcy and this move was seen by many as expected and necessary because of the competitive disadvantage they have compared to the other carriers that already filed.

Many of American Airlines’ competitors that renegotiated labor contracts and debts in the bankruptcy process have reported strong profit margins in the past few years. But American posted a net loss of $884 million in the nine months that ended Sept. 30, more than double the loss of the prior year’s nine-month period. ^[1]

American is currently assuring passengers that the filing would not affect their travel plans, saying all tickets, reservations and reward points would be honored.

My two cents on the filing:

For business and domestic travel, don’t expect much to change because of the filing. However, keep an eye out for destination travel to be sharply discounted in the coming weeks. American will want to keep those seats filled because non-business travelers may be hesitant to book advance reservations.

Also, American will be a better, more efficient and more competitive airline because of this filing. There may be a rough patch ahead while negotiations ensue between American, its creditors and its employees, but greener pastures are ahead.

^[1] http://latimesblogs.latimes.com/money_co/2011/11/american-airlines-says-business-as-usual-for-passengers-during-bankruptcy.html