Atlanta Bankruptcy Attorney Blog

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" »

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" »

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" »

You wouldn't run the Atlanta Marathon without training first, right? Then why would you buy a house - probably the biggest purchase you'll make in your entire life - without getting your finances in shape?

Yet that's what thousands of Americans could be doing as they rush to sign the paperwork on their first home by April 30, the last day to qualify for an $8,000 first-time homebuyer tax credit - or $6,500, if you're an existing homeowner who's lived in your previous residence for at least five years.

But there's no need to feel bad if you didn't make the deadline, say Atlanta bankruptcy attorneys. In fact, taking the time to ensure you're financially prepared will make it easier to buy - and retain - a home than any cushy tax write-off.

Continue reading "Lowering Debt Can Help Atlanta House Shoppers More Than Homebuyer Tax Credit " »

Talk about a Catch 22.

One of the most common reasons folks don't file for bankruptcy is the fear that it will ruin their credit, according to Atlanta bankruptcy attorneys. But in many cases, bankruptcy is the one and only way to save your credit score.

Let's say you've missed mortgage payments and other bills, borrowed from friends and family to make ends meet or garnished part of your paycheck to the bank. The truth is, your credit is already shot. If you've hit rock bottom, you've got nowhere to go but up. And if you give it a chance, bankruptcy can help you climb out of that hole.

Continue reading "Filing for Bankruptcy Can Actually Improve Credit for Atlanta Consumers" »

At first glance, it looks like a good deal: Buy a new house and Uncle Sam gives you $6,500 back. But there's a pretty big catch, according to Atlanta bankruptcy attorneys.

When the federal government agreed to extend a tax credit originally intended for new homebuyers to existing homebuyers, they hoped it would encourage folks to upgrade to bigger houses - and that, in turn, would stimulate the real estate market.

Yet the market has stayed flat. Why? Because although we'd all love to have bigger, better houses, most of us are struggling to hold on to the ones we already have. Forget a new house - what we need is Chapter 13 bankruptcy.

Continue reading "Homebuyer Tax Credit Might Not Be Enough for Chicago Homeowners to Stop Foreclosure" »

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" »

The most popular - yet elusive - Christmas gift this year is too big to wrap. In recent months, potential homebuyers have been scrambling to take advantage of the temporary homebuyer tax credit of up to $8,000 before it expires on Nov. 30.

But you don't have to rush into buying a house before you're ready (if you'll recall, it was too much debt that got us into this mess - and a house is about the biggest, albeit most important, debt you can take on). Nor do you have to feel that you missed the boat if your financial situation won't allow you to plunk down a down payment right now. Here's why.

First, Congress is currently debating whether to extend the credit through March 2010, then phase it out slowly. Second, mortgage rates are at record lows and affordable homes are at record highs. Third - and maybe most important - there's another way to save big bucks on that down payment. And you don't have to wait for government approval to get it.

Continue reading "Temporary Tax Credit Isn't the Only Way to Save on Your Mortgage" »

Too little, too late might be the best way to sum up the $75 billion government initiative to reduce foreclosures by encouraging lenders to modify loans.

Obama's plan certainly meant well - and to be fair, it did help some folks - just not everyone. The plan recently reached its goal of helping 500,000 troubled homeowners by Nov. 1. Sound like a success? Maybe not when you realize Uncle Sam had set out to help 4 million foreclosure-bound homeowners. That adds up to a success rate of just 12 percent. And there are a couple other things to consider. First, there are millions of other homeowners who face foreclosure, but wouldn't have qualified for the plan. And second, even the lucky 12 percent able to modify their mortgages aren't free and clear yet. About half of them will redefault on their loan - even after it's been modified.

See, loan modifications just address the most obvious part of a homeowner's financial problems. You can't afford to pay your mortgage, so your lender makes it a little lower. But that doesn't address the reasons behind your inability to pay the mortgage.

Continue reading "How Bankruptcy Can Stop Foreclosure, No Lender Approval Needed" »