Debt Consolidation/Relief Part 2 of 2

In the first part of this series, we covered the misleading things that businesses advertise on television, radio and elsewhere for “debt consolidation” or “debt settlement” services.
If you decide to enter into an agreement with a creditor, or want to fix a bad credit score keep these five things in mind.

How to proceed with the [...]

Debt Consolidation/Relief Part 1 of 2

Hardly a day goes by without seeing on television, or hearing on the radio, a commercial for “debt consolidation” or “debt settlement” services. Often, the ad includes a statement to the effect that if you owe more than $10,000.00 in credit card debt, you have the “legal right” to settle for less. Further, [...]

Credit Report Disputes

People often call our offices for help cleaning up their credit reports.  We suggest they use this letter, provided courtesy of the Consumer Credit Counseling Service of Orange County.
We advise sending the letter to all three bureaus (Equifax, TransUnion, and Experian), by certified mail, return receipt requested, and including their SSN and full legal name [...]

Mortgage Modification Mixups

My law partner, Rick Mitchell, and I are disgusted by the false promises and abysmal performance of the nation’s mortgage lenders who claim to be participating in the “Making Homes Affordable” program.  Homeowners were lured into this program with the expectation that they would get an answer within the “modification period” (usually 3-6 months) and [...]

Foreclose or Declare Bankruptcy?

Clients in financial difficulty often ask whether they are better served allowing their home to go into foreclosure or whether bankruptcy might be a better option for them.
Not since the Great Depression have so many people had to learn so much about credit law. Five years ago most of the clients we now see in [...]

Who Defaults, and Why?

This month we’ve run a series for distressed homeowners and published NC foreclosure data. To round out our coverage on the topic I want to discuss a paper written by James E. Rogers of the University of Arizona’s College of Law because it runs counter to what people generally believe is happening with people “walking [...]

Primer for Distressed Homeowners: Part 3 of 3

In our first post of this series we covered the foreclosure process and defined some basic real estate terms related to distressed sales.
In the second post, we answered questions on preventing foreclosure, negotiating with a mortgage company, and what to do about an adjustable rate mortgage that will soon reset.
This post addresses questions on short [...]

Surviving USAirways Layoffs & Furloughs

Charlotte has fared better than other cities at the hands of USAirways, but it hasn’t been easy for those who’ve been laid off, furloughed or left doing the work of their former coworkers.
CEO Doug Parker says analysts predict the airline will lose $600 million this year and obviously such losses are untenable. Management will continue [...]

Loan Modification News

USAToday reported on the impact of loan modifications on credit scores this week. Selected paragraphs:
A growing number of cash-strapped consumers are working with lenders to modify their mortgages so they can stay in their homes. But these modifications could wreck consumers’ credit.
A modification is typically a change in loan terms. Usually, the interest rate is [...]

Credit Score News

This week’s USAToday ran a helpful story analyzing changes in credit scoring in the face of developments in this Great Recession. Highlights:

Lenders are closing credit card accounts and lowering credit limits for millions of consumers and business owners who have never paid late. Some lenders are reporting mortgage modifications in a way that dings consumers’ [...]

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