Atlanta Homeowners Might Find Better Foreclosure Relief with Bankruptcy
What you see is not always what you get - at least when it comes to mortgage modifications, say Atlanta bankruptcy attorneys.
At first glance, the government's foreclosure relief program looks like it's finally doing some good. Nearly 230,000 mortgages have received modifications through the program so far, according to the New York Times.
But a lower bill doesn't mean homeowners are out of the woods just yet. As it turns out, a growing number of us are still defaulting on our loans - even after receiving modification. The number of modified loans that resulted in defaults almost doubled last month, from 1,500 in February to nearly 3,000 in March.
While a lower house payment might offer relief, it doesn't address the reason why so many Americans are struggling to pay the bills - too much credit card debt.
When the economy took a nosedive, our credit cards came out to play. Not just to make frivolous purchases, but to fill in real gaps in our income by paying for everything from gas to student loans - even the mortgage.
But the problem with credit is the more you use it, the more you have to keep using it. Before long you're spending so much on your credit card bill that you can't afford to pay your other bills - including the mortgage. As if that isn't enough trouble, banks are tightening up credit and piling on new fees. It's a dangerous combination that's putting millions of homeowners on the fast track to foreclosure.
Fortunately, that's where bankruptcy comes in. By helping homeowners relieve their biggest money drain - debt - bankruptcy can automatically make mortgages more affordable, no bank approval required. That's because lower debt means lower credit card payments - not to mention less interest and less stress. Chapter 13 bankruptcy also has the power to stop foreclosure for those homeowners who have already fallen behind on the mortgage.
Wondering if bankruptcy can help you pay the bills? It's free to find out more when you sign up for a free personal debt analysis. Our Atlanta bankruptcy attorneys can identify a bankruptcy plan that's right for your financial situation - and answer any of your questions or concerns along the way. Why jump through hoops for a mortgage modification that might not last? Bankruptcy can make your home loan and your credit card bills more affordable - permanently.