It’s been almost a decade and it seems like consumers and others have forgotten the substantial financial problems that were created when standards were loosened or ignored in the mortgage finance industry. There are indications that many of the measures put in place to prevent abuse in mortgage lending are going to be rolled back. If you are looking to buy a house, to upgrade your existing home, or to use the equity in your home for any purpose, you want to take a long hard look before you do anything.
Put Together a Budget
Regardless of the reason you’re thinking of getting a mortgage, the first thing you need to do is construct a thorough and honest budget. It doesn’t matter how easy it is to get the money, if you can’t afford to make the payments, you’ll only be digging the hole deeper.
Determine Whether a Bankruptcy Might Make More Sense
Are you afraid of filing for bankruptcy, worried about the stigma it attach to you, that you may not be able to get credit in the future. The reality is that, if you refinance and can’t afford the payments, you won’t have gained anything. Furthermore, filing for bankruptcy protection can often be viewed by potential lenders as a step in the right direction…they see that you are willing to take steps to resolve the problem. A caveat, though…if you do file for bankruptcy protection, you need to abide by the terms of the bankruptcy and you need to take steps not to get yourself back in the same situation again.
Also, consider that it might be better for you to file a bankruptcy petition and discharge credit card debts, instead of refinancing to simply pay off credit card debt. In that instance, you haven’t really reduced your obligations, just shifted them. If you do refinance to pay off debt, you are better served to pay off student loan debt, which generally cannot be discharged in bankruptcy.
Contact Neuner & Ventura, LLP
We understand the stress, anxiety and confusion that can be associated with a potential bankruptcy filing. We offer a free initial consultation to every client. For an appointment, call Neuner & Ventura at 856-596-2828 or send us an e-mail. We do, however, reserve the right to charge a fee to review any work done by another attorney. Evening and weekend appointments are available upon request.
Representing Clients across South Jersey