Atlanta Bankruptcy Attorney Blog

It's bad enough that countless people are losing their homes because they can't pay the bills. But imagine the frustration of finding out you're losing a home you've paid off.

As banks rush to push through millions of foreclosures in 2012, errors are increasingly leading to foreclosures, lawsuits, and credit damage for consumers who are current on their loan payments.

With an estimated 12.5 percent of U.S. homes either in foreclosure or delinquent by at least a month, the problem is only expected to get worse.

Regardless of the reason for foreclosure, Chapter 13 bankruptcy may be the best way to legally stop the foreclosure process and allow homeowners to begin rebuilding their credit.

According to a recent Reuters story, a growing number of homeowners are reporting that they are being harassed by banks for mortgages that should have been recorded as paid in full.

In some cases, borrowers refinance a home loan but the original mortgage is never written off. In other cases, homeowners are sued for foreclosure on a house they sold years ago. And in some rare but worrisome cases, consumers are being pinned down for delinquencies when they never even had a mortgage to begin with.

It all comes down to the disorderly state of the lending industry.

During the peak of the housing boom in the mid-2000s, Wall Street encouraged mortgage servicers to quickly process loans so they could be sold around the world to thousands of investors. In the ensuing chaos, important legal procedures were brushed off.

Many times, Atlanta bankruptcy lawyers have seen homeowners have difficulty qualifying for a loan modification because the bank can't locate the owner of the original loan. Now homeowners are being held accountable for home loans that aren't even theirs. Because data has never been collected on wrongful foreclosures, there is no way to estimate the extent of the problem.

In one case, a Utah woman's accountant learned that the woman was being sued for foreclosure because a bank error had showed she was delinquent by a single dollar. As a result, her credit was ruined. In another instance, a Vietnam vet paid off his mortgage in full, only to have his bank continue sending notices in error.

It's an important reminder of how necessary it is to keep an eye on credit so that mistakes can be quickly corrected before they spiral out of control.

In the meantime, Atlanta bankruptcy is a helpful tool to have handy.

Errant fees and legal troubles can add up to cause serious financial hardship, whether deserved or not. And of course, many times foreclosure stems from a true inability to make payments, whether due to job loss, credit card debt, or medical bills.

Continue reading "Atlanta Bankruptcy May Help Consumers Plagued by Wave of Mortgage Errors " »

Typically it's credit card companies that get the bad reputation for hidden fees and making consumers' lives more difficult. And it's for good reason -- they charge ridiculously high interest rates and have hidden fees for things as crazy as customer service. But, in many cases, the banks are not far behind.

Banks may be moving up the rankings to take a solid second place. A recent story by bankrate.com shows that free checking is likely the thing banks will be cutting from their members.

Well, what a shock -- another thing that consumers will be saddled paying for as banks continue to seek profits on the backs of consumers. It's hidden fees like these that squeeze people. Consumer debt -- including real estate debt -- is leaving record numbers to consider bankruptcy in Atlanta.

Atlanta bankruptcy lawyers have seen many consumers overwhelmed by fees and frustrated to the core. For those whose credit score is tanking because they are getting behind on payments and can't keep up, bankruptcy may be a sound option.

This country's bankruptcy laws are designed to protect the consumer. Lawmakers many years ago recognized that consumers may need a way to get out of debt and this set of laws allows them to do just that.

After completing the process, the consumer leaves behind their debt and can start back over, free from the problems that plagued them for years. They then are free to control their finances instead of the financial companies controlling them.

According to the bankrate.com article, the face of checking accounts is changing. A survey of major banks and lending institutions found that the number of free checking accounts continues to drop. Only 45 percent of non-interest checking accounts have no maintenance charges, a 20 percent drop from just last year.

So, now there are more fees for checking accounts, but the fees are higher, too. The average fee jumped from $2.49 to $4.37 in a year, which is $52.44 per year. While that shouldn't break the bank, it's just another fee to punish consumers.

Banks are also considering debit card fees -- which some major banks have already experimented with -- and there are more hurdles to jump in order to avoid fees, such as minimum balance or making sure you sign up for direct deposit.

ATM fees, lower interest rates offered for checking and higher overdraft fees are all making banking less attractive for consumers. Of course, it's making banks plenty of money. But consumers should be sure to check their statements carefully to make sure they're not giving away money to banks.

These fees can pile up and just add another collector to the pile of others for those in heavy debt. While a bank seems like it should be an ally, they can act just like a credit card company looking for money -- with aggression and a no-holds-barred approach.

But bankruptcy clears away debt so that you can better manage your money in the future. This includes being picky about your bank or credit union as to avoid unnecessary fees that make your life more difficult.

Continue reading "Bank Fees & Consumer Debt in Atlanta Bankruptcy Cases" »

Have adjustable-rate mortgages gotten a makeover? Lenders say the ARMs that once contributed to the housing market crash may now be an affordable option for Atlanta home buyers.

Back in the 90s, adjustable-rate mortgages made up the large majority of home loans. The problem was, many of these loans came with risky perks intended to lure borrowers - whether or not borrowers could afford them.

Some ARMs allowed for homeowners to defer making their full interest payments, leaving them with an unmanageable balance later on. Others adjusted to new, usually higher, rates every six months. Understandably, many people ended up defaulting on loans, kicking off a wave of foreclosures. By 2009, adjustable rates made up just 2 percent of all home loans. Now, they're on the rise again.

Continue reading "Atlanta Borrowers Taking Out Adjustable Rate Mortgages Again" »

First food prices, then gas - now it looks like ATM fees are on the rise. But the good news is, you can choose not pay the higher price, say Atlanta bankruptcy attorneys.

Currently, using another bank's ATM means about a $2.50 charge from the competitor bank - and a fee of $1-$1.50 from your own bank. But Chase recently shared its plan to hike ATM fees for non-customers in Illinois to an unheard-of $5 per transaction. Rates in Texas, another state involved in the trial, will increase to $4. That means that, for a simple $20 withdrawal, you would be paying 20-25% interest - or 30% interest when you include the charge by your own bank.

Financial wisdom has long held that you can get more with cash than with credit, because you don't have to pay a premium - i.e. credit card interest - to use paper money. But if customers simply roll over and pay these crazy new rates, we could lose the freedom to save money with cash.

Continue reading "Big Bank Raises ATM Fees for Struggling Consumers in Some States" »

For many underwater homeowners, getting a foreclosure notice in the mail might seem like the end of a long fight. But it's not over until the fat lady sings - or in this case, the judge.

Bankruptcy provides homeowners with a last chance to avoid foreclosure by getting non-mortgage debts under control. As soon as you file your paperwork, bankruptcy stops the foreclosure process while your Atlanta bankruptcy attorney and your bankruptcy judge work out an agreement with your lenders. Most at-risk homeowners ignore bankruptcy because they fear it won't work - or that it will hurt their credit. But according to a recent article on MSNBC.com, it can actually be a blessing in disguise.

Continue reading "For Atlanta Homeowners, Bankruptcy Can Be Last Chance to Stop Foreclosure" »

Many parents are shocked to find credit card offers addressed to their children in the mail - yet they don't think twice about signing their kids up for prepaid debit cards.

Credit card companies are smartly marketing prepaid cards as an easy way for parents to teach teens about money. We load a certain amount of money onto the cards, and our kids have to figure out how to budget it. But here's what they don't tell us. Prepaid cards come with as many - or more - fees as regular credit cards, say Atlanta bankruptcy attorneys.

By signing your children up for plastic at a young age, you may be putting them on a path to future credit card debt. While their name contains the word "debit," prepaid debit cards are not the same as the debit cards tied to your bank account. Creditor-issued cards come with a slew of start-up and use costs, like activation fees, maintenance fees, fees for purchases and reloading -even dormancy fees. From the start, you're showing your kids that they need to pay to, well, pay.

Continue reading "Teaching Kids Money Basics Can Prevent Chronic Credit Card Use" »

It's been two years since the Credit CARD Act was passed and it seems that credit card interest rates have gone nowhere but up.

Despite the common belief, the legislation didn't put a limit on rates - only the way in which credit card companies could charge them, explain Atlanta bankruptcy attorneys. Today, creditors are not allowed to retroactively hike rates whenever they please. Instead, they must state the rate upfront - only raising interest when a customer makes a late payment. In response, banks are offering cards with much higher upfront rates - like the 59.9% APR offered First Premier. And if you think consumers won't go for it, think again. First Premier has issued 700,000 of its high-rate cards - and counting.

Continue reading "High Interest Credit Cards Lure Atlanta Consumers Struggling With Debt" »

How about a bank account with that new pair of socks and order of McNuggets? It's possible at Wal-Mart.

Wal-Mart has always been known for being a one-stop shop, but now the retailer - along with a number of other big-box stores - is taking the designation literally by offering financial services from prepaid cards to check cashing, say Atlanta bankruptcy attorneys. Retailers hope to lure the millions of shoppers who either don't have a banking account or are fed up with the customer service at a big bank. And with Wal-Mart's Money Centers generating between 3 million and 5 million transactions per week, according to MSN Money, it seems to be working. But is it a good change for consumers?

Continue reading "Retailers Begin Offering Banking Services to Atlanta Customers" »

Why should homeowners in Atlanta care about a foreclosure in Massachusetts?

Because a recent court ruling there could have a drastic impact on foreclosures in the future, affecting the entire U.S. banking industry - and millions of Americans currently at risk of losing their homes, say Atlanta bankruptcy attorneys. Last week the highest court in Massachusetts reversed foreclosures on two residences because the banks could not prove they held the mortgages at the time they seized the homes. Experts say the decision could set a precedence for increased consumer protection.

But that doesn't necessarily spell good news for homeowners facing foreclosure.

Continue reading "Court Ruling Could Affect Foreclosure Process for Atlanta Homeowners" »

Freddie Mac is feeling more Santa than Scrooge this season - if for only a brief period of time.

For the third year in a row, the government-backed mortgage giant plans to stop foreclosure evictions between Dec. 20 and Jan. 4. It's good news for seriously delinquent homeowners who might have otherwise lost the roof over their head during the holiday. Unfortunately, say Atlanta bankruptcy attorneys, it won't do anything to stop folks from losing their homes after the start of the New Year.

Continue reading "Foreclosures Stop Temporarily for Atlanta Homeowners " »

By now, we all know that the Fed is buying $600 billion in Treasury bonds in hopes of boosting the economy. What we don't know is if it will work, say Atlanta bankruptcy attorneys.

In short, the idea behind the stimulus is to pump money into banks, reducing rates and thereby increasing borrowing. But while low interest rates are good news for consumers who want to borrow to buy a house, start a business or otherwise make an investment, they're not so good for those of us who plan to save rather than spend - like the many Americans struggling to make the mortgage payment on the house we already own or to restore the retirement funds we've already lost.

Continue reading "Fed's $600 Billion Plan to Lower Rates Could Help and Hurt Atlanta Consumers" »

It seems nothing has been able to slow the tidal wave of recession-related foreclosures - that is, until now.

State officials across the U.S. are joining forces to investigate illegal activities that could have led to thousands of unfair foreclosures over the past few years, according to the AP Press. Allegedly, lenders have been allowing foreclosure documents to be signed without required witnesses, without proper analysis and - in some cases - without even being read. It's a victory for millions of consumers who may be struggling to pay the bills - but are still following the rules, say Atlanta bankruptcy attorneys.

Continue reading "Foreclosure Process Comes Under Fire in All 50 States" »

It's a sad day when even interest rates on online savings accounts - once the cream of the crop - are hovering below 2%. But just because today's rates aren't good for growing your nest egg doesn't mean they can't help you save money.

It's only a matter of time before rates go up again. In the meantime, there's no better time to pay down debt, say Atlanta bankruptcy attorneys.

Continue reading "Are you Better Off Paying Down Debt or Investing Your Savings?" »

Look at it as flowers rising from the ashes: despite two-plus years of tough economic times, Americans have managed to significantly lower credit card debt.

The credit card debt of an average family is less than $5,000 - the lowest level in eight years and more than 13 percent less than just last summer, according to the Associated Press. To top it off, more credit cardholders are paying their bills before the due date. It looks like all that coupon clipping and budgeting is slowly paying off - at least for most people. However, some of us are making a dangerous trade-off, say Atlanta bankruptcy attorneys.

Continue reading "Some Atlanta Homeowners Swapping Mortgage Payments for Credit Card Bills" »

The number of underwater mortgages is finally going down - but those of us facing foreclosure aren't out of the woods yet.

In a rare bit of good housing news, Zillow.com recently announced that the amount of homeowners with underwater mortgages - in other words, those of us with a home worth less than what we owe on our mortgage - decreased from 23 percent to 21 percent in the last quarter. Fewer homeowners with negative equity means we might finally start seeing less foreclosures in coming months, according to Atlanta bankruptcy attorneys.

On the other hand, that doesn't do much to help folks currently - or soon to be - at risk of foreclosure.

Continue reading "Filing for Chapter 13 Bankruptcy Can Stop or Prevent Foreclosure for Atlanta Homeowners" »