Being in debt has a bigger impact on your financial future than you might realize. Bad debts can continue to haunt you and your credit report for years, especially if you don't deal with it now. Here are some practical tips on how to get out of debt and stay out of debt.
The government shutdown has affected many "normal" parts of American life, not to mention the lives of hundreds of thousands of furloughed federal employees. Although the most important question about the shutdown is "When and how will it end?" many Americans who are experiencing foreclosure or are at risk for foreclosure would like to know how their homes might be affected. After all, even without knowing how long the government shutdown will last, it could be argued that mortgage fraud and the ensuing financial crisis crisis debilitated Americans more than the government gridlock can or will.
Disclaimer: These results should not be taken as a guarantee, as each case is unique. We have helped over 5,000 homeowners, here is one of their stories.
One recurring trend today is that many people who received loan modifications in the early stages of the Great Recession are attempting to get new loan modifications now. Oftentimes, these people received loan modifications before they experienced their worst hardship, and had no safety net when their hardship hit.
This happened to a homeowner who was faced with a dire situation. He was one of the first people to receive a loan modification from the HAMP program. Shortly after receiving his modification, harder times hit. The homeowner lost his job, and the family was only depending on his wife's salary for support. By the time the homeowner connected with us, he was several months past due on his $1,730 FHA mortgage payment, and had just been served foreclosure.
We've heard all types of questions from our clients, but one question that we're hearing often is this: "can my mortgage be canceled if I don't make my mortgage payments for 5 years?" Some foreclosure defense lawyers and "foreclosure rescue" companies have been advertising that Florida homeowners can get out of foreclosure by not paying on their home for 5 years, and homeowners aren't sure whether to believe these claims or not.
In fact, Florida law does state that there's a 5 year statute of limitations on foreclosures (technically on promissory notes). Although this may seem straightforward enough, it gets a bit complicated when you delve into the specifics of the law.
Freddie Mac is helping consumers separate foreclosure fact from fiction in a new video series recently launched on its YouTube Channel (http://www.youtube.com/FreddieMac). Each video dispels one of five common myths that could prevent people from keeping their homes if they face foreclosure. It is based on content from the Freddie Mac Get the Facts on Homeownership education and outreach materials. Here are five common myths that consumers should be aware of when it comes to dealing with foreclosures.
For any homeowner, the prospect of losing their home because they can’t make the mortgage payments can be a frightening experience. Since the Great Recession began, many borrowers have experienced problems making ends meet because of losing a job, divorce, medical issues and other situations.
In addition, during the real estate boom, it was common for borrowers to get duped into take on risky adjustable-rate mortgages (ARMs) to get into homes they could not otherwise afford. ARMs have low “teaser rates” for at least the first year. This feature helps borrowers qualify bigger mortgages.
After the introductory rate expires, the lender can adjust the interest rate on the loan at predetermined intervals, which can send monthly payments skyrocketing.
Disclaimer: These results should not be taken as a guarantee, as each case is unique. We have helped over 5,000 homeowners, here is one of their stories.
Many of the worst stories that have come from the mortgage crisis involve the casual ineptitude of large banks when it comes to loan modification. Thousands and thousands of foreclosures have resulted from this indiligence, and hundreds of thousands of people have had their lives negatively impacted as a result.
A New York woman approached us about her similar mortgage issues; she had been attempting to get a loan modification from Bank of America, but couldn't get any headway after trying for nearly two years. This homeowner was a single mother who had emerged from bankruptcy just a few years earlier; the last thing she needed was the dark cloud of foreclosure hanging over her head. However, her home could've been foreclosed on at any time; she was over 5 years and $162,000 behind on paying her $2,680 mortgage payment.
According to reports from the United States Department of the Treasury, about 63,000 homeowners received loan modifications during July 2013 (which is the last month statistics are available). This brings the total for 2013 to 519,000 loan modifications, a number which dwarfs the number of foreclosure sales (378,000) that were reported up to the same point. All in all, this totals 6.6 million permanent loan modifications since 2008. According to analysis from financial firm Keefe, Bruyette, and Woods, loan modifications are playing a large part in strengthening today's housing market.
It's clear that loan modifications have done plenty to improve housing statistics, but these numbers conceal serious issues that are often glossed over by pundits and the national media.
On the morning of this client's Summary Judgment Hearing early in 2013, our client and his son followed the wrong signs in the courthouse and sat outside the court room for 2 hours before someone told them that the cases had been moved to a different location. By this time they figured out what was wrong, it was two hours later and the Judge had already granted Wells Fargo a Summary Judgment and allowed them to schedule a foreclosure sale date. Here is what happened after they found Amerihope Alliance Legal Services.
On August 14, 2013, our firm was retained by a family who was deep in the foreclosure process. As a matter of fact, Wells Fargo had already scheduled a foreclosure sale date of September 24, 2013 on their home. Despite the fact that there were only a few weeks before the house was to be sold via foreclosure auction, our foreclosure defense attorney reviewed and accepted their case, and were ready to defend our client against Wells Fargo's foreclosure action in court.
By Barbara Pronin
Everyone knows that having a good credit score marks you as a credit-worthy individual with increased buying power. But, said consumer finance consultant Jill Krasny, many people have critical misconceptions about what makes for a good credit score.
Krasny offers five common credit misconceptions:
Amerihope Alliance Legal Services is a leading loan modification and foreclosure defense law firm with attorneys licensed in 5 states. We have helped over 7,000 homeowners fight back and keep their homes.
Our goal is to provide valuable information to help homeowners who are trying to obtain a loan modification or to stop foreclosure. You may schedule a free consultation at any time.
