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Is mortgage deferment different from forbearance?

Missing a few mortgage payments does not mean you will automatically lose your home, but you should consider steps to get back on track with your mortgage. Fortunately, many lenders understand their clients sometimes run into financial problems and offer forbearance programs to help them out. You may have heard of mortgage deferment. Sometimes people use this term and forbearance interchangeably, but deferment is actually distinguishable from forbearance. How forbearance and deferment contrast Forbearance allows homeowners to temporarily pause or reduce their monthly mortgage payments.

April 9, 2024 No Comments

Is Chapter 13 a good option when you have a steady job?

When facing financial difficulties, it is important to explore all available options to regain control of your finances. Chapter 13 bankruptcy is one alternative that individuals with a steady job may consider. Understanding the benefits of Chapter 13 can help you decide if it is the right choice in your situation. Maintaining a steady income Chapter 13 bankruptcy is often suitable for individuals with predictable income. This type of bankruptcy allows you to create a repayment plan to gradually pay off your debts over a

March 20, 2024 No Comments

Mortgage modification is not the same as refinancing

If you are having trouble making your mortgage payments, you may consider options to lower your monthly due amounts. Otherwise, you could risk foreclosure. You may have heard of home loan modification and wonder if it entails refinancing your mortgage. While it is true that refinancing and modifying your mortgage could potentially lower your payments, these two concepts are not the same. How mortgage refinancing works When you refinance your home loan, you take out an entirely new loan to pay off your existing mortgage.

March 5, 2024 No Comments

Mistakes to avoid when going through Chapter 7 bankruptcy

Many individuals find themselves in financial binds at some point in their lives. These people may consider filing for bankruptcy to relieve their financial burdens and get a fresh start. However, navigating Chapter 7 bankruptcy can be a challenging process and can become fraught with mistakes. Ignoring financial responsibilities In 2023, 434,064 individuals filed for bankruptcy, but not all these people saw the successful completion of the process. One common mistake is neglecting financial responsibilities leading up to bankruptcy. Those seeking Chapter 7 bankruptcy should

March 5, 2024 No Comments

When do I have too many credit cards?

It is common and often even necessary for people to have more than one credit card. Multiple cards allow you to take advantage of rewards programs and provide a safety net in case of emergencies. However, possessing an excessive number of credit cards may lead to burdensome debt if you are not careful. Generally, financial trouble happens because of particular issues stemming from having too many cards. Trouble keeping up with payments Juggling due dates across numerous credit cards inevitably leads some borrowers to forget

February 20, 2024 No Comments

Signs of a foreclosure rescue scam

Recognizing the signs of a foreclosure scam helps homeowners facing financial difficulties and potential foreclosure proceedings. Scammers often prey on vulnerable individuals. They may do so by offering false promises of foreclosure prevention or relief in exchange for upfront fees or personal information. By understanding the common tactics used in foreclosure scams, homeowners can protect themselves from fraudulent schemes. Pressure to act A common sign of a foreclosure scam is pressure tactics. Scammers may use high-pressure sales tactics to save the home from foreclosure. For

February 6, 2024 No Comments

5 reasons to consider filing for Chapter 13 bankruptcy

According to USA Today, American household owe a combined total of $17 trillion in debt. Facing financial challenges can be overwhelming, and for some individuals, filing for Chapter 13 bankruptcy may provide a viable solution. This legal process, governed by the United States Bankruptcy Code, allows individuals with a regular income to develop a manageable plan to repay their debts. There are several reasons to consider filing for Chapter 13 bankruptcy. 1. Repayment plan tailored to your income Chapter 13 bankruptcy offers a structured repayment

January 23, 2024 No Comments

Why are U.S. consumer bankruptcy filings rising?

As economic landscapes evolve, the United States is seeing a surge in consumer bankruptcy filings. Several factors contribute to this upward trend, impacting individuals and families across the nation. Understanding the elements behind the increase in consumer bankruptcy filings sheds light on the challenges faced by Americans in managing their financial stability. Economic uncertainties and job losses Ongoing economic uncertainties contribute to the rise in consumer bankruptcy filings. Widespread job losses and financial instability have left many people grappling with the sudden and unexpected loss

January 9, 2024 No Comments

4 common truths about chapter 7 bankruptcy

One misconception surrounding chapter 7 liquidation bankruptcy is that it equals complete financial downfall. On the contrary, the primary purpose of chapter 7 is to provide a fresh start for individuals or businesses struggling with debt. It allows for the discharge of certain debts, offering the opportunity for a clean slate and a chance to rebuild. Knowing some truths about chapter 7 can be helpful. 1. Can keep some assets One common misconception is that filing for chapter 7 means losing everything. In Maryland, however,

January 5, 2024 No Comments

Options when you need help making your home loan payment

Sometimes, you need help keeping up with your home loan payments. The good news is that you have available legal options to find a solution that fits your financial situation. Loan modification Renegotiating our existing home loan can make it more manageable. This process could include reducing the interest rate and extending the loan term or principal forbearance. To pursue a loan modification, contact your loan servicer when you foresee difficulties meeting your payment obligations. Be prepared to provide detailed information about your financial situation

December 29, 2023 No Comments