Millions of American homeowners who bought homes in the last 10 years or so have encountered a rude surprise: after they had paid top dollar when real estate values were at their peak, the real estate market turned down, dramatically, for the first time in many years. Other homeowners have run into financial trouble when life events such as job loss have undermined their ability to meet mortgage payments.
Remember When Residential Real Estate Was an Excellent Investment?
How many times had you heard before the foreclosure crisis, "Your home is your most important investment" or "Real estate is the most predictably profitable investment"? These old adages have not applied to a great many homeowners in recent years. Many have dealt with the threat of foreclosure and/or bankruptcy as a result.
Mortgage Troubles: Personal Crisis or Society-Wide Crisis?
A personal or family crisis has always had the potential to cause trouble for people buying homes through mortgages. However, in recent years, larger forces have been at work, as well — and many, many people who trusted their real estate agents or lending bank to keep them well informed have gotten stuck with mortgages they could not afford. Once scheduled mortgage payments rise to a level out of reach for a homeowner to pay, trouble begins.
What Happens When Rising Mortgage Payments Get Out of Hand?
Most people will postpone other financial obligations in order to meet mortgage payments. They may use credit cards to cover everyday living expenses such as food and gasoline, in order to make their mortgage payments on time. Meanwhile, scheduled mortgage payments continue to rise as taxes and insurance rates go up. In some cases, adjustable rate mortgages (ARMs) act as time bombs, and debtors may reach a point when they cannot meet their obligations.
Talk to an Attorney About Your Home Mortgage Debt and Bankruptcy
If you sense that your out-of-control home loan (secured debt) is leading you toward bankruptcy or that foreclosure is a real possibility, you should talk to an experienced debt relief attorney. Explore bankruptcy alternatives and options as well as foreclosure options. Face the crisis with your eyes wide open and with your mind open to discover the best solutions. Contact Genova & Malin, Attorneys at Law, near Poughkeepsie to discuss avenues of debt relief, including Chapter 7 or Chapter 13 bankruptcy as options, with an experienced New York lawyer.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
