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" »

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" »

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" »

If proposals in a new finance bill passed by the Senate come true, the finance industry could get a lot easier to navigate for Atlanta consumers.

We're talking free credit scores, a reduction in mortgage penalties and the creation of a new oversight agency to protect consumers. Watch out, lenders - the game might be played differently when consumers actually have a fair shot.

Here's a quick summary of some of the bill's most intriguing possibilities. But first, a disclaimer: this is all still speculation. We don't know when the bill will be finalized, or what will be left in it when it is. If you're looking to lower debt and improve your finances, you can't afford to wait for the government to hold your hand - not when there are effective ways to take matters into your own hands, like bankruptcy.

Continue reading "Proposals in Finance Bill Could Help Atlanta Consumers Save Money and Improve Credit" »

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 " »

A friend in need is a friend indeed, according to the old adage. But sometimes the best way to help your friends is by not helping them at all - at least when it comes to co-signing a loan.

Sure, it can be tempting to help a friend borrow money they need. But what's good for your soul can spell disaster for your bank account, explain Atlanta bankruptcy attorneys.

Continue reading "Co-signing a Loan Can Bankrupt Friendships and Leave You in Debt" »

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" »

Why put off until tomorrow what you can do today - especially when it involves more money in your pockets?

Technically your tax return isn't due until April 15, but you can actually file as early as February so long as you've received all of your necessary documents - like 1099s, W-2s, receipts from charitable donations, etc., according to Atlanta bankruptcy attorneys. Why would you want to torture yourself early, you may ask? Because you have to do your taxes anyway - and the earlier you do them, the earlier you can get your refund (especially helpful for those of us in debt). With the government looking to stimulate the economy, you might be eligible for some new credits and deductions.

Continue reading "Atlanta Bankruptcy Attorneys Say Early Tax Filing Means Early Refund" »

You wouldn't dream of turning in a sloppy resume or loan application full of misspellings and inappropriate answers, right?

But many of us are doing even worse when we apply for that loan, job or credit card - and we don't even realize it, according to Atlanta bankruptcy attorneys. It's all thanks to social networking sites like Facebook, MySpace or even our own personal blogs.

Even though it might not seem fair, employers and lenders are using our online presences to gauge our risk - to legally spy on us, so to speak. You know those crazy, slightly drunken photos you took with pals at a friend's bachelorette party? Or the dirty joke your cousin posted on your profile? Right or wrong, the behavior of you and your friends - rather than your debt - could theoretically affect whether you're able to buy a home.

Continue reading "Atlanta Bankruptcy Attorneys Caution That Social Networking Sites Could Harm Your Finances " »