A foreclosure is a legal process through which a lender takes control of a property and evicts the homeowner, who is unable to pay the lender back. The property/ home is sold to recover the losses caused by the homeowner as per the stipulations in the mortgage contract. The process begins when a homeowner does not make a mortgage payment. Under normal circumstances, one can miss four mortgage payments before the foreclosure process begins, but this also depends on a number of other factors, such as the lender’s particular policies and the housing market. The defaulting homeowner is first notified by the lender. Depending on which state one is in, the homeowner may get a grace period of three to six months to resolve the payment issue. In case the homeowner is unable to start the payments, the lender can begin to foreclose on the house. In situations such as these, the homeowner has a few options to save their property from foreclosure, using a ‘Foreclosure Defense’. This can help to stall or stop this process altogether. Without a doubt, the best way to go about Foreclosure Defense is by seeking the help of a good foreclosure defense lawyer in Florida, or whichever state you are in. Before we begin to understand the foreclosure defense options, it’s very important to understand what the foreclosure process looks like, and that’s what we’ll discuss further in this article.
When you think about bankruptcy, you may think of it as an option. In most cases, people make the decision to pursue financial relief by hiring an attorney and filing in court. You may be surprised to know that you can actually be forced to file bankruptcy. When we say “forced” we do not mean by circumstance, we mean “forced” by creditors or a governing body. In many of our articles, we explain that bankruptcy is a legal tool intended to protect individuals and businesses from perpetual financial distress. On the other side of that coin, bankruptcy is intended to protect creditors from perpetual mounting debt.
You went through the entire bankruptcy process. You’re on the road to fixing your financial situation and you are informed that your bankruptcy filing has been revoked and the resulting terms nullified. This can happen. The debt that is discharged (unsecured debt) can be reinstated and you can be back at “square one”. This is one of the major reasons you should use a lawyer and make sure all of the information used in the case is accurate. How can this happen?
Many think that bankruptcy is the final station on the train to financial ruin, but statutes under Title 11 of United States Code sets forth provisions that can help one maintain hope and bounce back. An individual struggling under the duress of debt can typically file for bankruptcy either under Chapter 7 or Chapter 13. Under Chapter 13 bankruptcy, an individual has the opportunity to reorganize their finances and avoid losing their assets. It enables someone with a regular source of income to propose a plan to repay their creditors over a three- to five-year period, and the courts have the power to approve the plan without the approval of the lenders as long as it meets certain requirements. This is in contrast to Chapter 7, which provides for discharge of certain debts and liquidation of non-exempt assets without giving any rights towards coming up with a plan of reorganization.
There are a total of six types of bankruptcies defined under Title 11 of the United States Code. While some of them deal with corporates, municipalities, international debtors and farmers or fishermen, the most common types of bankruptcy filed by individuals and small businesses fall under Chapter 7 and Chapter 13. Chapter 7 involves discharge of certain debts without repayment, whereas Chapter 13 contains provisions which allow individuals with regular wages to develop a plan to repay all or part of their debts over a number of years. Whether an individual qualifies for Chapter 7 or Chapter 13 is partly determined by their income. Chapter 7 is the most common form of bankruptcy in the US with ~65% of consumer bankruptcy filings being Chapter 7 cases.
Credit card companies make it very easy for borrowers to replace the cash in their wallet for the plastic card. Credit card companies spend billions of dollars on marketing cards to borrowers and making them appealing with cashback or airline miles. If you choose to use a credit card to build your credit score, be cautious of these common credit card mistakes.
Recent college graduates receive heavy social pressures from friends or family about when their timeframe for purchasing their first home. However, they might discover that those same student loans that allowed them to finish their studies are now holding them back from purchasing their own home. The National Association of Realtors recently published that 83 percent of the non-homeowners state that student loan debt prevents them from buying a home.
Most of us understand that financial literacy is the key to becoming a successful adult. As adults, sometimes we wish that we learned financial literacy more in high school or younger. Now that some children are getting their education at home or through virtual sources, it could be the time to teach your children about those financial topics you wished you learned earlier in life. Wonderful lessons for children are to teach them how to earn money, spend it, and save for future purchases.
During the COVID-19 pandemic, the United States Congress approved the Coronavirus Aid, Relief, and Economic Security (CARES) Act that allows affected homeowners to skip or delay their payments up to a year. In a recent Census Bureau Household Pulse Survey, 1.3 million homeowners stated that “it is somewhat likely” they will have to leave their current living arrangement in the next two months. The survey ended on August 31. There is a big gap in what the CARES Act promises versus what home lenders provide to their borrowers. Borrowers might have a right to worry if their lenders expect payment as soon as the CARES Act is expired.
Do you have a Federal Student Loan balance? You could benefit by restructuring the terms of your loan! Now is the time to review and change your loan agreement by taking advantage of the interest free and payment deferral period.