Atlanta Bankruptcy Attorney Blog

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" »

When you're looking for a way to save money, canceling your insurance policy can sound pretty tempting - especially when rates keep rising.

Rates for auto, health, life and homeowners insurance policies have been on the upswing as insurance companies struggle with rising expenses, an unstable economy and the costs of the many large-scale disasters in recent decades - including 9/11 and Hurricane Katrina. Those costs get passed on to us, the consumer. And when we're already faced with immediate bills - like the car payment, mortgage or multiple credit card bills - paying for insurance might seem like a hassle, even a waste.

But it's just the opposite, say Atlanta bankruptcy attorneys. Your insurance bill could be the most financially rewarding payment you make.

Continue reading "Insurance Can Be the Difference between Debt and Survival for Atlanta Policy Holders" »

Are you struggling to pay the rent? Or hoping for a better place to live - but afraid you can't afford to move? You might be able to set your own rental price.

You've heard of a buyer's market, but what about a renter's market? It's what we're experiencing right now, say Atlanta bankruptcy attorneys. Rent prices dropped nearly 6 percent last year, according to real estate investment company Marcus & Millichap. Rental units have become more available as kids moved back in with Mom and Dad to save money and people added roommates to lower their rent.

While a growing number of renters could eventually create a shortage - making it a landlord's market - you might still be able to score a lower rent if you act soon.

Continue reading "Use the Economy to Lower Your Rent So You Can Start Saving" »

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 " »

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 " »

If you're looking for ways to save money, your house may hold the solution.

No, I'm not talking about refinancing or selling - I'm simply talking about property taxes. Roughly 60 percent of homeowners are paying property taxes that are based on home values from several years ago, according to the National Retail Federation. That means many of us are paying thousands more dollars than we need to, since housing prices dropped dramatically after 2007.

Property taxes are supposed to be reassessed every 3 to 5 years, but counties aren't in a rush - they'd rather take the extra money. Luckily you don't have to wait for them. You can request a reassessment - and possibly lower your tax bill - yourself by filing an appeal with your county assessor's office.

Continue reading "Assessment Appeals Can Lower Property Taxes for Atlanta Homeowners" »

Not worrying about your mortgage payment might sound like a dream come true - and with the low mortgage rates we're seeing today, now might seem like the time to pay down that home loan.

But, for most Chicago residents, paying off the mortgage early might come at a price they can't afford, particularly if they're dealing with large credit card debts and little savings.

As it turns out, a low interest rate is actually a good time to hold on to your home loan.

Continue reading "Atlanta Residents Debate Whether to Pay Down Mortgage or Choose Bankruptcy for the Biggest Savings" »

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" »

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 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" »