More Borrowers Default On Mortgages As Holidays Approach
'Tis the season for giving, but if many of us don't curb our spending habits, the only thing we'll be giving is our home - back to the bank.
Just as the media was reporting in September that an economic recovery was underway, there were still roughly 4 million homeowners either in some stage of foreclosure or at least three months behind on mortgage payment, according to the Mortgage Bankers Association. Even worse, those foreclosures have been pushing down home values in the cities that are already struggling with the highest unemployment rates.
So why are things getting worse when they're supposed to be getting better? Maybe it's because, bad economy or not, consumers are plain out of cash. Many of us have gone without a raise for years - or worse, without a job for months. In the meantime, we're using credit cards to make ends meet, adding to our already bloated debt burdens. And now with the arrival of the holiday season we're struggling to put fancy meals on the table and gifts under the tree, adding even more financial stress. At some point, homeowners are throwing in the towel. But it doesn't have to be that way.
What if I told you it might be possible to keep your house and straighten out your finances? A bankruptcy plan can help you do it. When you file for bankruptcy, an automatic stay legally stops and prevents foreclosure while you work out an affordable system for paying down your debt. Once you start chipping away at that debt burden, you'll owe smaller payments with less interest each month. Not only will you have more money to allocate towards the mortgage and other bills, but you'll have less stress to boot.
If growing debts or other financial troubles are making it impossible to pay the mortgage, a bankruptcy plan might be able to free up enough money to get you back on track. A professional bankruptcy attorney - like our DebtStoppers lawyers in Atlanta - can identify the best plan for you when you try a free one-on-one debt analysis. We'll also answer any questions or discuss any concerns you have about bankruptcy, finances or foreclosure - again, for free. If you're like most Americans, you've been through enough financial worries for one year. Give yourself a rest and get the gift that keeps on giving - financial freedom.