When Is It Time To Seek The Help of A Credit Counselor?

Posted by on May 21, 2016 in Financials | 0 comments

Some people just cannot seem to make ends meet. According to the website of Erin B. Shank, PC, many people find themselves in a financial problem that they end up seeking advice from a credit counselor. For some people who just cannot control their spending habits, counseling is a great way to deal with a financial problem and change your attitude towards money.

According to CreditCards.com, the average American household with at least one credit card owner owes around $15,950 in credit-card debt. So how do you know that you need the help of a credit counselor? There are tell tale signs that you need to be aware of that you need help controlling your finances. Here are some of the red flag that tells you it is time to get help:

  • You are paying your credit card bills with another credit card. You apply for more cards in order to pay for your current ones thus sinking you further into debt. If you are doing that, you are only accumulating more debt as you are also accumulating more interest.
  • You cannot pay for living expenses. You need to remember that you have basic needs that you have to satisfy such as food, housing, utilities, and more. If you are not able to meet these expenses, it is a sign that you need some help from a professional. A credit counselor can help you realign your budget so that you will be able to pay for necessary expenses.
  • You are getting calls from collectors. When your mail starts to get piled up with notices and legal letters. Having creditors knock on your door can be an embarrassing experience and you do not want that to happen. Get help from a credit counselor before it’s too late.

The best thing to do to get yourself out of credit debt is to live within your means. Do not spend on items that you do not really need.

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Common Errors That Lead to Wrongful Foreclosure

Posted by on May 17, 2016 in Financials | 0 comments

“There’s no place like home,” as they say. For most of us, a home gives security. It gives us a place where we can relax, become comfortable, and protection from natural forces. Getting your house foreclosed can be a challenging experience. But a wrongful foreclosure is even more difficult. A Plano wrongful foreclosure attorney will probably guide you to the relevant legal actions available to you for whatever reason your property was wrongfully foreclosed.

Wrongful foreclosures arise from a banks’ lack of due diligence when processing claims. While banks have continuously denied this, foreclosure lawyers are saying that this is not only happening but is widespread. Here are some of the common errors of banks that result to a wrongful foreclosure:

1. The homeowner was not in default but faced foreclosure

Sometimes banks have the tendency to mistakenly foreclose a property even if the owner was not in default. This error is often due to miscommunication between lenders, servicers, title insurers, foreclosure law firms, and other bank contractors.

2. Homeowners were adviced that they were qualified for a loan modification

In a recent survey, 373 homeowners revealed that they were incorrectly adviced to stop making mortgage payments to become eligible for loan modification. In addition, a report by Courthouse News Service revealed that some homeowners have either lost or came close to losing their property because the bank told them to default and then foreclose.

3. Homeowners were behind on their mortgage but could have caught up if not for the additional fees

The mortgage servicing industry has received a lot of criticism for deceiving consumers by charging hidden fees such as late fees, broker-price opinions, inspection fees, and others. The Federal Trade Commission advises consumers to read billing statements first to guarantee the legitimacy of fees.

4. Dual track of foreclosure and loan modification processing

Banks tend to process foreclosures and loan modifications simultaneously resulting to foreclosure of the property. The Federal program requires a mortage broker or servicer to provide borrowers a denial notice before foreclosing their property.

5. Ther bank was not able to provide prrof its standiong to foreclose

Even if the homeowner is clearly in default for reasons outside to servicer action, the servicing company still cannot foreclose the property. It has to be the borrower or his representative.

Losing a home can be an extremely embarrassing experience especially when it was through the negligence or error of another person.

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