Can You Really Prevent Bankruptcy & Stop Foreclosure?

In December of 2008, Credit Suisse forecast that 8.1 million mortgages will be in foreclosure over the next four years, representing 16% of all mortgages. Put simply, the vast majority of house prices were sent in a time when the employment and credit climate was entirely different from what it is now. With unemployment projected to be as high as 11% by the end of the year, and with credit so tight that most people can't get a loan to ride out the rough spots . . . it should come as no suprise that many of us are faced with trying to prevent bankruptcy or stop foreclosure.

By acting quickly, you put yourself and your family in the best position possible to ride out this ugly economic storm. You need to assess your financial situation and your legal options

• Are you finding it impossible to pay your bills every month?
• Are you using your credit cards to pay your mortgage/rent or other household expenses?
• Are you facing medical bills you have no hope of paying.
• Are you unable to pay for health insurance, car insurance, home insurance because your other bills are so high?

Then its probably time to start considering your your options. There are several strategies that can help resolve these matters withou burdening you and your family for decades with an unpayable debt.

• Loan Modification can allow you to renegotiate the terms of your mortgage with your bank. Although many people recommend that you call your bank to ask for a loan modification, the truth is you are better off using a nationwide service to conduct this negotiation. The truth is that banks are not often quick to help you with loan modification or completly honest in giving you the best overview of your options. Some Loan Modifications actually result in people paying more than the did to start. Speak to a select of Loan Modification companies and learn how each can help you.
• Loan Renegotiation may be a good option for some home owners. It turns out that your bank has "truth in lending" obligations that are supposed to be in effect when they write loans. So they must inform you if you have an adjustable rate mortgage, and they must tell you of any fees or charges they plan to apply in advance. They must ensure that the appraisal on your house is rational and that you have adequate income, when all is said and done, to pay the loan. Many mortgage brokers wrote loans that were unsustainable from the start, and both buyers and banks sometimes have to renegotiate a loan that brokers made dishonestly.
• Bankruptcy is a good option for many because it really will prevent foreclosure. Credit Cards are unsecured debt. The interest rate charged by credit card companies is very high specifically because credit card companies are accounting for the risk of underwriting unsecured debt. Bankruptcy usually allows you to keep your home and your car. In most cases Bankruptcy requires Credit Counseling . . .
• Credit Counseling allows an intermediary to help you talk to creditors about your debts. These folks can help you reduce the amount you owe, lower your interest rates, and extend the time you have to pay.

The key thing is to spend some time contacting specialists in these fields before you are in foreclosure. You have more options if you act when you can still pay some or all of your bills than if you delay.