Archive for the ‘Bankruptcy Help Articles’ Category
California Foreclsoure Evictions and You
For those of you that are not sure what a California foreclosure is, it is when a homeowner is not able to make principle and interest payments on their monthly mortgage. As a result, the mortgage company will take the property and sell it, which will be stated in the mortgage contract when the homeowner first signs it. This type of foreclosure varies among lenders; it all depends on each individual situation.
As a homeowner, it is totally up to you if you would like to sell or keep your home during the California foreclosure process. If you prefer not to keep your home, it will actually be sold before it reaches the foreclosure process. The big advantage you will get from the home being sold before it reaches foreclosure is not receiving a foreclosure judgment on your credit rating. This works well for both parties because the lender is able to sell the home and the borrower can receive future financing without any negative ratings on their credit. This type of foreclosure is normally available to homeowners who have a great deal of equity available in their home.
Mortgage Scammers on the Loose
Despite the best efforts of groups like the Better Business Bureau and the Federal Trade Commission, scammers manage to find new ways to take money from unsuspecting consumers on a regular basis. Here’s a look at one of the latest warnings that’s been posted by consumer advocates.
A New Mortgage Scam Afoot
The latest in a long line of mortgage and foreclosure “rescue” scams seems to be one that involves attempting to trick homeowners into thinking they qualify for money from a lawsuit against their lenders. According to the BBB, the scam works like this:
- An official-looking letter arrives: Victims have reportedly noted that they received a letter indicating that they were eligible to join a “joinder action suit” against certain mortgage lenders and banks. The letters
Firefly’s Fails – Files for Bankruptcy
After a successful ten-year run, the Massachusetts chain of BBQ restaurants, Firefly’s Bodacious Bar-B-Que & Beyond, has filed for Chapter 7 Bankruptcy. Owner Steve Uliss told Sean McFadden of The Boston Business Journal (www.bizjournals.com), in 2009 that “the recession was making things tough in the business.”The restaurant, which had three locations – Marlborough, Framingham and Quincy – focused on foods with a southern flair, barbecue ribs, fried chicken and red velvet cake, paired with a casual and affordable dining atmosphere. Uliss reported revenue of $6.8 million in 2007 and $7.7 million in 2008 with goals to hit $8 million in 2009. Despite Uliss’s efforts to reduce overhead and increase special promotions and restaurant-related businesses, the recent economic downturn squashed Firefly’s as it has so many other dining and retail establishments. According to the Journal’s Eric Convey, the restaurant currently lists its assets in the amount of $100,000-$500,000 and its liabilities from $500,000-$1 million.For information on the mechanisms of filing Chapter 7 or Chapter 13 personal bankruptcy, log onto www.legalhelpers.com and call 800-260-1402 to arrange your initial free consultation with an experienced and knowledgeable bankruptcy attorney from Legal Helpers. Attorneys from Leg Read more…
Besides a lot of things wrong the banks are doing very little to help homeowners avoid California foreclosure.
They were given millions or even billions of dollars to help stem the tide of foreclosures that were recognized from the very beginning. Money they used to pay their executives extravagant bonuses.
They were given directives from the US Government to modify loans to help people save their homes. While they did make a half-hearted effort their programs were never really set up of for success. They never bothered to staff up enough to handle the sheer volume of requests. This is cause for endless delays and lost documentation which pushes most homes to mature into the final phases foreclosure before the homeowner is given a final answer.
What happens next, the homeowner is denied a loan mod–which in many cases they never qualified for in the first place but the bank failed to inform them of this in a timely manner–and now they are left with little or no time to pursue another option.
Homeowners facing California foreclosure who are thinking about or in the midst of a loan modification should research bankruptcy as a back up plan. Sh
Financial Literacy Survey Shows Our Weaknesses
The National Foundation for Credit Counseling reported results from its annual survey of consumer financial literacy recently, and the findings suggest that, as a nation, we’re still not as well equipped to deal with financial stumbling blocks as we need to be.
Specifically, the survey revealed the following about American consumers:
- 26 percent of survey respondents reported spending more than they did last year, a percentage higher than it has been for two years. While this could be good for the nation’s economic recovery, it’s only one part of the puzzle.
- More than 40 percent of respondents graded themselves as earning a C or lower in their personal finance know-how. This is alarming but not surprising: in more official tests of financial literacy (often given to high school students), it’s often common for the majority of students to fail.
- While more than two-thirds of Americans reported paying for most purchases with cash or debit cards, 40 percent still reportedly carry revolving debt on their credit cards from month to month. This so
In the current economic environment you will find that California was hit extra hard by the home foreclosure crisis. Many people are suffering and have lost their homes because of it. Some reasons California was hit so hard could have very well been avoided.
1. Banks were lending to unqualified borrowers 2. Too many builders were over building and dumping properties onto investors 3. Real estate agents were artificially inflating home prices in new subdivision through phase releases 4. Home owners had no financial reserve for a rainy day 5. Homeowners borrowed money on variable rate loans
Had homeowners, banks, builders and real estate agents avoided these five mistakes California’s home foreclosure crises probably would have been simply a hick-up instead of a crisis. Citizens should have been looking out for each other and not relying on the government for over site. Knowing the banks, builders and real estate agents are in it for the money, we as consumers need to pay close attention to what they are telling us and insure we are not falling into a trap.
New Solutions for Those with Mortgage Woes?
These days, many Americans are desperate to stay on top of mortgage payments, and are considering unorthodox ways to pay the bills. apparently, when a company called Adzookie offered to pay people’s mortgages for up to a year if those people would display large advertisements on their homes, applications flooded in by the thousands, as a recent report from Credit.com details.
The deal reportedly works like this: if you apply and are accepted into the program, Adzookie will paint advertisements on your home and pay your mortgage for three months (with a chance to renew for another nine if the ads remain in place).
While that may sound like heaven to some struggling homeowners, only a handful of people will be selected for this deal. So what can the rest of us do?
Finding Affordable Housing
Because of the tight standards of many refinancing programs, few homeowners are able to qualify. So that might mean a few things, one of which could be giving up a mortgage (whether with the help of personal bankruptcy or not) and renting for a while.
So how can you find affordable rent? B
Trucking Company Owner Files Chapter 7
One of the nation’s largest cattle brokerages, Eastern Livestock of New Albany, Indiana, abruptly collapsed in November 2010 and has filed for Chapter 11 bankruptcy protection; company principal owner Thomas P. Gibson has also filed for Chapter 7 personal bankruptcy. Affiliate company East-West Trucking has also filed a Chapter 7 bankruptcy petition. Gibson lists interests in some 17 companies in his bankruptcy filing.According to Clarissa Kell-Holland in an article on www.landline.mag.com (The Business Magazine for Professional Truckers), Eastern Livestock and East-West Trucking allegedly sent more than $130 million in worthless checks to over 740 cattle sellers and truckers who haul the bovines. In the article, Eastern Livestock bankruptcy trustee James Knauer states that investigators had traced “phony sales which were used to prop up the cash flow” back to 2008, although not on the “same scale as in later years.” In 2010, the company reported inflated sales of $3.9 billion, triple the number it listed in sales in 2009. According to court documents, Eastern Livestock’s bank, the Fifth Third Bank of Cincinnati, averred that the cattle brokerage’s finances started unraveling on November 1, 2010. During the same Read more…
Student Loan Debt
Student Loan Debt
What You Don’t Know Can Hurt You
Learn interesting student loan debt facts that aren’t as apparent as a student would hope. Did you know the difference in private versus public education for college equals $15,000 per year on average. For students, that’s a lot of cash that could be spent on other essentials (like food). Don’t wait until you are filing bankruptcy to find out the facts. Find out more trivia to share with your friends between classes in the infographic below.