Mortgage rates have hit historic lows. According to the Tennessean, the average rate for a 30-year fixed mortgage is now a shocking 3.91%.
It's a great way to ring in the New Year for folks who can afford to purchase a home or refinance their current property. Unfortunately, taking advantage of these rates just isn't an option for many consumers.
A large number of Tennessee homeowners have either already refinanced or are unable to get approval for a refinance or modification because of underemployment or a bad credit score. As for Uncle Sam's effort to help underwater homeowners, the Housing Affordable Refinancing Program (HARP) is still on hold while an expanded program is developed.
As Tennessee bankruptcy lawyers have discussed here before, one of the biggest problems with HARP is that it requires the participation of lenders. That means that if your lender isn't involved with the program, you can't qualify - whether or not you have appropriate income or credit.
Filing for Chapter 13 bankruptcy is a solution that works for almost everyone, regardless of your lender, your earnings, or the condition of your credit.
Thousands of Tennessee residents owe more on their mortgage than the current value of their home. Unemployment, medical bills, and credit card debt coupled with higher costs of living can eat into money needed for mortgage payments.
When you're on the verge of losing your house, you don't have time to wait for lenders to put you through a lengthy application process, only to tell you that a modification or refinance isn't possible - especially now that banks are getting more aggressive and taking swifter action to deal with homeowners who have fallen behind on payments.
A Tennessee bankruptcy filing has results immediately. From the day you file for Chapter 13, foreclosure is prevented or stopped - whether you missed your first house payment or were hours away from having your home sold on the auction block. Without having to worry about losing the roof over their head, many Tennessee bankruptcy lawyer clients find themselves better able to focus on regaining control of their finances.
For most of us, the mortgage isn't the problem - instead, it's other types of debt, such as credit card debt and hospital bills, that overwhelm our budget. A Chapter 13 bankruptcy filing allows debtors to work out an affordable payment plan so that much of the debt can be paid back over a manageable period of time. Whatever is left over when you've completed your plan is discharged free and clear.
If you're tired of being teased by low rates that are out of your reach, filing for bankruptcy in Tennessee can provide a tangible solution and much-needed legal protection - fast.
More Blog Entries:
Tips for Refreshing Finances in 2012 with Tennessee Bankruptcy: January 1, 2012
Mortgage Rates Fall to Historic Lows Again, by Derek Kravitz, Associated Press