The latest report from RealtyTrac concerning foreclosures says, “The roller coaster pattern of foreclosure activity over the past 12 months demonstrates that while the foreclosure problem is being managed on the surface, a massive number of distressed properties and underwater loans continues to sit just below the surface, threatening the fragile stability of the housing market.”
Based on these numbers, commentators on NPR theorized that it will be the end of 2013 before the foreclosure/REO/inventory problems are worked through, and the housing market can begin to recover.
Bankruptcy counseling/asset planning & protection session for strategies
This means that those in precarious financial health should consider a consultation with a lawyer knowledgeable in bankruptcy law and asset planning and protection. Such a consultation may be helpful for people who intend to file for bankruptcy protection, are considering filing, and for those who want to do everything possible to avoid filing. Here’s why:
- If you intend to sell your home to take the equity and pay off debts or live on it while you wait for the economy to improve
- You’ll be competing for buyers who expect to name their (low) price for your property
- You most probably will not get the price you hoped for
- You’ll most likely have to wait over 100 days to get a “ratified” contract
- You may be paying creditors with money that would otherwise be protected from creditors, known as “the homestead exemption”
- You may be paying creditors that could otherwise collect nothing from you through the legal process
- If you, like many Americans, feel your employment prospects are fragile, but currently have the means to pay your creditors, a bankruptcy attorney can help you develop asset planning and protection strategies to employ until the economy returns to better footing (perhaps in 2013). Asset planning refers to either placing assets beyond the reach of creditors, or making the process of reaching assets so difficult for creditors that it will deter collection efforts, or some combination of the two.
- If you consult with an attorney or planning professional before you have significant debt, or while you’re solvent, assets can be moved without concern.
- Unfortunately, we usually see clients when they have incurred significant debt – usually either from business obligations or questionable investments.
- If you’ve guaranteed business loans or co-signed debts for others, the strength of the overall economy will bear on whether you can renew loans or how quickly loans will be called when payments are missed. An independent professional can help you assess your risks and help you develop strategies.
- The collapse in the real estate market has also created another roadblock to obtaining a small business loan, since many business owners depend on the value of their real estate as collateral for loans.
For more information on bankruptcy counseling, asset planning and protection, or small business loan guarantees search our site.