Atlanta Bankruptcy Attorney Blog

Lenders can't seem to make up their minds. One day they're handing out subprime mortgages like candy. The next, it seems you need to be a saint to qualify for a loan.

Well, maybe not a saint. But you do need to have a credit score and finances that put you in the top third of borrowers, say Atlanta bankruptcy attorneys. That's right, statistics show that just one out of every three people who apply for a mortgage this season will be approved, according to Wallet Pop. Banks learned the hard way that lending to those of us with not-so-stellar credit can lead to defaults and foreclosures. Today, they're not taking any chances. But there are steps you can take to improve your own chances.

Continue reading "Atlanta Homebuyers Learn Secret to Qualifying For a Mortgage Amid Tightening Credit " »

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" »

The good news is that a new FHA program could help underwater borrowers make their mortgages more affordable. The bad news? For many homeowners, it's too good to be true, say Atlanta bankruptcy attorneys.

Known as the Short Refi initiative, the program allows lenders and investors to agree on writing off a portion of a loan's principal balance - at least 10 percent. Borrowers are able to participate so long as they don't currently hold an FHA loan and are current on their house payments. So what's the problem? Loans held by government-backed Freddie Mac and Fannie Mae - in other words, the majority of mortgages in the U.S. - are ineligible.

Continue reading "Is Loan Modification Or Bankruptcy A Better Choice for Atlanta Homeowners?" »

FHA loans were designed to make housing possible for more Americans. So what happens when they become more expensive?

Borrowers will soon find out, say Atlanta bankruptcy attorneys. The Federal Housing Administration recently announced plans to hike premiums for the government-insured loans by one quarter of a percent. It might not sound like much, but the increase comes just months after FHA raised its down payment requirement from 5 to 10 percent and added a minimum credit score of 500. It all adds up to make an affordable loan just out of reach for some homebuyers.

Continue reading "FHA Loans About to Get More Expensive For Atlanta Borrowers" »

It looks like Uncle Sam might be learning from his mistakes when it comes to helping struggling homeowners, say Atlanta bankruptcy attorneys.

With the Home Affordable Modification Plan enacted during the recession a seemingly multi-billion dollar flop, the federal government may be turning to a method that's actually been proven to work - bankruptcy. In a bill proposed by Sen. Sheldon Whitehouse, bankruptcy is being explored as an alternative for homeowners in need of modified mortgage terms. And with U.S. foreclosures expected to surpass 12 million next year, it couldn't come too soon.

Continue reading "Senator Suggests Bankruptcy As A Better Alternative To Mortgage Modification" »

Most of the time, it's a good idea to listen to age-old advice. When it comes to your finances, though, you might want to think twice, caution Atlanta bankruptcy attorneys.

It's not that there's anything wrong with long-held personal finance beliefs, like the idea that you should pay down debt before saving up. It's just that even the most classic wisdom can backfire in certain circumstances, according to a recent article by TheStreet.

The problem is that everyone's financial situation is different.

Continue reading "Money Myths That Can Make Your Debt Situation Worse" »

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" »

Who wouldn't want a lower mortgage payment, right? Problem is, sometimes a smaller house payment comes at a bigger price.

Today's low interest rates have many homeowners scrambling to refinance their mortgages. But while some people can benefit from a new loan, others might find the process and it's hidden fees more trouble - and money - than it's worth, say Atlanta bankruptcy attorneys. In that case, getting rid of debt might be a better way to free up more money each month.

Continue reading "Costs of Mortgage Refinance Can Increase Debt for Atlanta Homeowners" »

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" »

Too bad they don't teach you about debt in college - maybe more of us would be able to afford our student loans.

Not surprisingly, the economy seems to be having an effect on loan default rates for college students. Forty percent of students at private universities now default on loans, according to a report by The Chronicle of Higher Education. Community college rates aren't much better, with 31 percent of students unable to foot the bills.

Look, it's no cakewalk to get through school, let alone hold down a job and pay for a place to live, a car to drive and food to eat - all while paying down debt. But if you default - rather than get the help you need - you could do serious damage to your future finances.

Continue reading "More Atlanta College Students Are Defaulting on School Loans" »

Folks often feel alone when struggling to overcome a bad credit score. But the truth is, they're not.

More Americans than ever are considered high risk borrowers, according to information recently released by FICO, Inc. More than 25 percent of the country now has a credit score of less than 599 - an increase of 2.4 million since the start of the recession. A poor score translates into trouble qualifying for a mortgage, car loan or new credit card - and those who do qualify will likely face much higher rates, making getting out of debt all the more difficult.

Yet raising your credit score might be easier than you think.

Continue reading "As Atlanta Credit Scores Decrease, Bankruptcy Can Offer a Fresh Start" »

If you're tired of the fees your bank is tacking on to your checking account, how about forgoing the bank altogether?

Don't worry, I'm not advocating that you store your paycheck under the mattress - I'm talking about considering a credit union. As banks make simple checking accounts more expensive with things like account maintenance fees, balance transfer fees, minimum deposits and other annoyances, cash-strapped customers are looking for alternatives, say Atlanta bankruptcy attorneys. And with lower rate credit cards and certain loans, a credit union might be just the solution.

Continue reading "Credit Unions Offer Better Deals Than Banks For Some Atlanta Customers" »

Taking out a loan to pay off debt doesn't really make sense - after all, a loan means more debt.

But that's exactly what millions of Americans do each year when they sign up for debt consolidation loans. From the alluring promises made in debt consolidation ads, it's hard not to be curious. Combine all your debts - mortgage, car loan and credit cards - into one easy low-rate payment, they say. Save thousands a year! Wipe out credit card debts!

It sounds too good to be true - and at DebtStoppers, we know that means it probably is!

Continue reading "Debt Consolidation Loans Can Leave Atlanta Residents With More Debt" »

Did you know your credit score can go up and down each month, even if you're usually a responsible credit user?

Your credit score isn't some static number - it's actually a monthly assessment based on the information your lender provides to credit bureaus, say Atlanta bankruptcy attorneys. It's a snapshot of your credit behavior at one point in time. So if you ring up an unusually high credit card balance one month, all of a sudden you look like a riskier borrower - even if your past history says otherwise.

That's good and bad news. Good, because it means you have more power to change your credit score than you may realize. Bad, because your behavior one month can jeopardize your finances the next.

Continue reading "Why Getting Too Close to Your Credit Limit Can Hurt Your Score" »