Saving Yourself From Sub-Prime Mortgage Foreclosure

Homeowners are now losing their homes to foreclosure at an alarming rate never before seen. The cause of this is due in large part to the banking industry themselves by offering "too good to be true" adjustable rate loans to anyone that was able to sign with a pen. These attractive loans were offered to potential borrowers without foresight and these borrowers did not recognize the future challenges with regards to repaying the loans when the rate increased. This coupled with a slew of other economic challenges helped create this current recession that millions of U.S. homeowners are experiencing. The worst manifestation of this recession though is the loss of jobs and homes. There is however a last ditch effort for the homeowner.

Whenever banks or other lenders foreclose on a property they not only lose the revenue from receiving monthly mortgage payments, but also end up paying taxes on the property with very little hope of selling the property at full appraised value. Foreclosing on one or even fifty properties probably would not hurt any bank, but with the amount of foreclosures occurring now banks are creating their own demise. This is what has been happening throughout the country.

This of course is no consolation to those homeowners who are in foreclosure now or have just gone through foreclosure. Not only has the homeowner's credit rating been destroyed, but these individuals are finding it extremely difficult to get financing for another home. Even rental homes can be difficult to find seeing as how more and more landlords are requiring credit checks of prospective tenants.

Some lenders are willing to lower the interest rate and cut the homeowner's monthly payment in hopes that this will enable the individual the ability to make the necessary monthly payments. Some banks will even grant forbearance and allow the homeowner the chance to catch up. There may be other methods that a financial advisor or an attorney knowledgeable in real estate law may be aware of. Never hesitate to consult with these resources. Most of the time these professionals offer free initial consultations.

When all else fails and there is no way to avoid foreclosure there is one last ditch effort. The homeowner can do what is called deed in lieu of foreclosure. The only purpose of this last resort is to avoid having one's credit rating destroyed for years to come. Essentially a deed in lieu of foreclosure is when the homeowner mails the keys and mortgage deed back to the lender via certified mail. Again this is a last resort that should not be taken lightly unless there is no other alternative to foreclosure. Consulting with a real estate attorney will help ensure that this one chance is handled properly.

By salvaging one's credit rating it should be easier in the future to receive financing to purchase another home or even temporarily find a house to rent while the individual focuses on improving their existing credit rating. While no analyst or realtor can accurately predict the duration of the housing market slump, history has shown that the real estate market and lending will come back around. It is just a matter of time in which the individual can improve their credit rating.

For more information and guidance about debt recovery, bankruptcy protection, and avoiding foreclosure, visit http://www.kanzerlaw.com. Kanzer Law specializes in helping people recover from personal financial crisis.

Bankruptcy is an Acceptable Option in Order to Protect Your Way of Life

Metropolitan areas with high costs of living are usually associated with higher incidents of unemployment, mounting personal debt, and foreclosures. It makes sense because populated areas are where industry typically grows, and during times of economic downturn, such areas suffer a higher impact per capita in the course of layoffs, downsizing, and businesses closing their doors altogether. In recent times, we've seen steep rises in crime, unemployment, and poverty level thresholds in such previously prosperous metro areas such as Detroit, Atlanta, Boston, Dallas, and Miami, among others. In some cases, entire regions or states are encumbered by higher costs of living, resulting in widespread impact during a recession.

For example, New York is one of the most expensive locations to live in 2009 in the United States. With the unemployment rate reaching an all time high of 7.2% in the past 16 years, it's no wonder that more and more people are at their wits end and turning toward bankruptcy in the Big Apple. If an individual has been beaten down by constant debt collectors hounding their every step and the stress of watching surmounting bills pile up, consulting an attorney specializing in personal bankruptcy is the wisest course of action.

Unfortunately, private citizens don't have the luxury of a personal government bailout to keep them afloat like major U.S. corporations and banks received under the Bush administration. An attorney is the next best thing to help minimize or even eliminate most of the heavy debt that families or individuals have accrued. There is a lot more to lose though if declaring bankruptcy is not done properly.

It is very possible to keep one's vehicles and home while still eliminating most of the debt that they have ended up owing through bankruptcy. Chapter 7 bankruptcy and chapter 13 bankruptcy are very different in nature. Only an attorney experienced in both will be able to show an individual which type will be best or even possible. Chapter 7 bankruptcy eliminates completely much of the debt incurred by credit cards, utilities, certain loans, foreclosures, and more. Chapter 13 bankruptcy can merely consolidate and reduce the debt down to manageable monthly payments.

The complete advantages to each are not openly apparent and recent bankruptcy laws have changed to prevent abuses. By consulting with an attorney one is assured of having expert guidance to rely upon without blundering into a worse situation. Consultations are usually free so there is no cost to explore one's options. This is the best step to take when mired in the debt and despair that grips much of the country.

For more information and guidance about debt recovery, foreclosure avoidance, and bankruptcy protection, visit http://www.KanzerLaw.com. Among other professionals, Kanzer Law specializes in helping individuals protect their assets from creditors during times of personal economic crisis.

There is Life After Bankruptcy

It may anger and irritate to no end that the "little guy" is near financial ruin while the very same banks, insurance companies, and major corporations that have received billions of government stimulus funds are giving multi-million dollar bonuses to executives. Stimulus funds won't be reaching the everyman any time soon, if at all. In the meantime bankruptcy doesn't need to be ruinous and can be limited or avoided altogether by consulting a qualified attorney.

How is it that top level executives and millionaires have claimed bankruptcy in the past and have not had their fortunes impacted? The answer is by using attorneys that specialize in bankruptcy, taxes, and financial planning. While attorneys do cost money, the expense is easy to understand when the potential benefits are understood.

In the past, individuals that have filed bankruptcy have been assigned the stigma of failure. Again, that was in the past. Now bankruptcy is no longer a four lettered word. Bankruptcy means a new beginning; new potential to prove the American dream. Those people that have filed for bankruptcy recently may not realize that the attorney's usefulness isn't over.

Bankruptcy attorneys should be used as a resource for setting up one's estate in a manner that will isolate and protect them from the financial risks that most taxpayers live with day in and day out due to ignorance. Starting out on the right path will determine how the path will end. Educating one's self is the first step. Ask questions. Ask lots of questions. The attorney isn't a teacher, but can answer most of the questions pertaining to one's specific situation.

After an attorney has helped guide the individual, it is up to the individual to continue learning. If taking an affordable financial planning or investing course or two at a local community college isn't a realistic possibility, there is a plethora of easy to read financial guides available at your local book store.

Venturing out into the investment world or planning by one's self is risky when just relying on book smarts though. Consulting a financial planner is also a viable option, but will be more expensive than a simple book because of their knowledge and experience. Just remember that bankruptcy isn't the end, but only the beginning.

For more information and guidance about bankruptcy and how to protect your assets, visit http://www.kanzerlaw.com. Kanzer Law specializes in helping individuals and companies recover financially.