Bankruptcy carries with it a stigma of financial irresponsibility and mismanagement. However, that stigma is undeserved. The majority of bankruptcies are caused by unforeseen expenses such as medical bills or unpredictable events such as the breadwinner getting laid off. The truth is that bankruptcy is a very powerful tool that, when used correctly and strategically, can grant a financial fresh start to deal with these unfortunate events. This article will provide a basic overview of consumer bankruptcy.
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People always ask me: Is there any way to lower the principal on my mortgage? The answer is yes and no. Confused? That’s ok – you are just one of millions of homeowners who aren’t clear on what their rights are as homeowners. While the best way to deal with falling behind on your monthly mortgage payments is to modify your mortgage loan, there are other ways to save on your monthly payments.
During the course of the recent housing bubble, lending institutions bundled thousands of consumer mortgages into complicated securities that were sold many times. The transfer records of each mortgage in the bundled securities became increasingly byzantine. When the mortgage market fell apart in the current recession, some of the investors left holding the mortgage-backed securities discovered that there were unable to prove that they owned the right to collect on the mortgages.