Atlanta Bankruptcy Attorney Blog

As if it's not bad enough that we may fall victim to yet another recession, we also have to worry about falling victim to double-dip scams.

With the economy looking poised to take another nosedive, more folks than ever are dealing with recession-related difficulties - things like getting laid off, losing our homes to foreclosure and struggling to pay the bills. And scam artists are taking full advantage, say Atlanta bankruptcy attorneys. Fraudsters know many of us will do anything to earn a steady paycheck or save our home, including giving them our hard-earned dollars.

Fortunately, there's a way to tell the scams from the real deal.

Continue reading "Ways Atlanta Consumers Can Avoid Double-Dip Recession Scams" »

Up until now, banks have been the bad guy in the mortgage crisis. But it seems like America's most hated corporations are finally trying to redeem themselves.

Banks are working to offer better loan modification programs to troubled borrowers, according to a recent article in Newsweek. And the timing couldn't be better, with recent reports that half of homeowners in the government's Making Home Affordable program ended up throwing in the towel. Unfortunately, banks won't be able to help every one of the millions of homeowners at risk of foreclosure.

Continue reading "Bank Programs Offer More Flexible Loan Modifications Than Making Home Affordable" »

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" »

Being optimistic is one thing; being in denial is another. And unfortunately, it seems that millions of American workers are currently in denial about the job market.

It's not that folks are naïve enough to think they won't lose their job. On the contrary, 55 percent of Americans are worried that they could soon be out of work, according to MSNBC.com. And for one in 10 of us, that worry will come true.

The problem is that - even though we know getting laid off is a distinct possibility - we aren't doing anything to prepare for it. But by not preparing for it, we're making the worst case scenario, well, worse.

Continue reading "Building an Emergency Savings Fund Can Help Atlanta Workers Survive Job Loss" »

Sometimes good news can be dangerous - take the most recent foreclosure numbers, for instance.

For the first time in years, the foreclosure rate has steadied, according to the Associated Press. A third fewer homeowners are opening up our mailboxes to find letters warning that, if we don't pay up, we'll lose our home. It seems like things are finally getting better.

But, while encouraging, those numbers don't tell the whole story - especially for those of us dealing with credit card debt and other financial strains.

Continue reading "Foreclosures Level Off, But Remain a Risk for Many Atlanta Homeowners" »

Atlanta homeowners who have been underwater in their mortgage might have just been thrown a lifesaver.

This February, housing prices increased for the first time since the end of 2006 - almost four years ago, according to The Standard & Poor's/Case-Shiller housing price index. With values finally on the rise, homeowners can breathe a sigh of relief knowing that they'll start rebuilding equity. That's the good news. The not-so-good news? No one knows how long prices will rise - or by how much.

But in the end, that doesn't really matter. What matters is that you stay in your house so you can take advantage of future home values. That means that if you're at risk of foreclosure, it's time to take preventative action.

Continue reading "Rising Home Prices Means Good News for Atlanta Homeowners" »

What you see is not always what you get - at least when it comes to mortgage modifications, say Atlanta bankruptcy attorneys.

At first glance, the government's foreclosure relief program looks like it's finally doing some good. Nearly 230,000 mortgages have received modifications through the program so far, according to the New York Times.

But a lower bill doesn't mean homeowners are out of the woods just yet. As it turns out, a growing number of us are still defaulting on our loans - even after receiving modification. The number of modified loans that resulted in defaults almost doubled last month, from 1,500 in February to nearly 3,000 in March.

While a lower house payment might offer relief, it doesn't address the reason why so many Americans are struggling to pay the bills - too much credit card debt.

Continue reading "Atlanta Homeowners Might Find Better Foreclosure Relief with Bankruptcy " »

Spring brings April showers and then May flowers, but it also brings something a lot less pleasant: pain at the pump.

When the temperatures slowly start to go up, so do gas prices. So far this month, the average cost of gas is up 9 cents and is edging ever closer to $3 a gallon - that's 81 cents more than last year, according to AAA.

But there's a silver lining - and it's not just warmer weather. As it turns out, the same economy that is causing Atlanta residents and others to struggle financially is also lowering demand for gas, say Atlanta bankruptcy attorneys.

With unemployment soaring - the Georgia unemployment rate is 10.3 percent as of January - less people are driving a car to work, meaning less people are buying oil. Economists say gas prices might level off at not much over $3 a gallon this summer. But even if they don't, there's more good news. You can minimize the effects of higher gas prices on your own.

Continue reading "Atlanta Drivers Search for Cheap Gas Prices as Oil Costs Increase" »

What if you had two choices: Pay the mortgage each month, or pay your credit card bill?

In the past, choosing was a no-brainer - put the money towards the roof over your head. But increasingly, Americans are starting to prioritize credit cards, meaning the mortgage gets left by the wayside, according to Atlanta bankruptcy attorneys.

So what's changed? To start, the housing market. With one in every four homeowners underwater on their mortgage - and thus having no equity in their home - paying off a home loan can feel like throwing money away. On the other hand, paying the credit card bill allows us to keep using plastic to cover food, gas and clothes even when we aren't bringing home enough bacon to afford them.

But even though our new priorities make sense under the circumstances, it doesn't mean they're the best - or only - choice.

Continue reading "Atlanta Bankruptcy Attorneys See More Homeowners Default on House Than On Credit Card" »

By now, some of us are getting used to seeing footage of the horrific earthquake in Haiti. But there's more than one reason we shouldn't let ourselves become numb to those haunting images.

Not only do they remind us that there's work to be done to rebuild for millions of Haiti's survivors, but they remind us that it's time to be grateful for what we have. Our struggles with the economy in recent months have been real - but they also could have been a lot worse. Most Americans are in debt and millions are unemployed, in danger of losing their homes to foreclosure or both. That's no picnic, to be sure. But the truth is, most of us will go home to a hot meal and running water tonight. Most of us will have a roof over our head, whether we own or rent. And most of us will go home to our families. Most Haitians can't say the same.

I know getting out of debt is no easy task. If it was, we'd all be rich - or at least financially stable. But unlike the weather or geography, debt is something within our control.

Continue reading "Debt Is Easier To Control Than Many Think, Atlanta Bankruptcy Attorneys Say" »

Contrary to homeowner hopes, Uncle Sam's $75 billion mortgage modification program may be causing more bad than good.

Created early last year, the program was supposed to encourage banks to modify loans of the millions of Americans facing foreclosure. Unfortunately, it's managed to permanently modify just 35,000 - a drop in a rather large bucket, when you consider that 15 million U.S. homeowners are underwater, meaning they owe more on their loan than their house is worth. And of the homeowners that did get help, many went into foreclosure anyway since the program only required banks to lower mortgage payments - not to restore any equity.

But the biggest problem isn't that the program is failing - it's that it's given folks a false sense of security. Many homeowners held out hope that the program would save their home, so they didn't take preventative measures that could have stopped foreclosure, such as Chapter 13 bankruptcy. Fortunately, there may still be time, according to Atlanta bankruptcy attorneys.

Continue reading "Atlanta Bankruptcy Attorneys Warn That Government Mortgage Program Is Increasing Foreclosures" »

Citibank is giving a few thousand Americans the ultimate Christmas gift this year. Problem is, there isn't enough to go around.

The megabank recently announced it would put foreclosures and evictions on hold for some 4,000 homeowners this holiday, according to MSNBC.com. The break applies to homeowners with Citibank-owned loans and lasts through the middle of January.

It's intended to reduce stress during this already crazy time of year, said a company spokesman. And I'm sure it will for those 4,000 people, temporarily anyway. But what about the millions of other Americans that are on the brink of losing their homes?

Continue reading "Bank Lets Some Homeowners Stop Foreclosure This Christmas" »

'Tis the season for Christmas cards and phone calls from family and friends, but some of us are receiving more hostile greetings over the phone and in the mail this season - from bill collectors.

Unlike most folks, bill collectors don't like to give breaks over the holidays. When you're late on your debt payments, it's their job to bully you into coughing up the cash. That means calls at home and work and letters in the mailbox - even after you've explained the circumstances that are currently preventing you from paying.

But though it might feel like they've got you surrounded with no way out, you still have rights. And with help from a professional bankruptcy attorney, you might be able to silence those bill collectors for good.

Continue reading "Put a Stop to Harassing Creditors With Bankruptcy" »

'Tis the season for giving, but if many of us don't curb our spending habits, the only thing we'll be giving is our home - back to the bank.

Just as the media was reporting in September that an economic recovery was underway, there were still roughly 4 million homeowners either in some stage of foreclosure or at least three months behind on mortgage payment, according to the Mortgage Bankers Association. Even worse, those foreclosures have been pushing down home values in the cities that are already struggling with the highest unemployment rates.

So why are things getting worse when they're supposed to be getting better? Maybe it's because, bad economy or not, consumers are plain out of cash. Many of us have gone without a raise for years - or worse, without a job for months. In the meantime, we're using credit cards to make ends meet, adding to our already bloated debt burdens. And now with the arrival of the holiday season we're struggling to put fancy meals on the table and gifts under the tree, adding even more financial stress. At some point, homeowners are throwing in the towel. But it doesn't have to be that way.

Continue reading "More Borrowers Default On Mortgages As Holidays Approach" »

If you're facing foreclosure, you're officially running out of excuses. But that's good, right?

Just this week, Congress decided to extend the tax credit for new homebuyers beyond its original Nov. 30 deadline. That means you could be eligible for $8,000 back on your taxes when you purchase a property. Better yet, the government has taken note of the thousands facing foreclosure by expanding the initiative to include people who have already owned their houses for five years or more - if that's you, there might be a $6,500 tax break in your future.

Along with the tax credits, Uncle Sam also agreed to extend unemployment benefits for 14 weeks (even longer in states where the unemployment rate has reached 8.5% or more). It's not ideal, but it's a start.

Financially, we've come a long way since the so-called "great recession" began -- and Americans might be more aware of opportunities for financial freedom than ever before.

Continue reading "New Credits, Extensions Available for Homebuyers and Unemployed" »