Consumers Refinance Mortgages to Avoid Bankruptcy (Dallas, TX)

Consumers caught in the sub-prime, ARM loan fiasco are considering their options, which can include personal bankruptcy , refinance loans, the sale of their home, or debt settlement.

Refinancing Home Mortgages

While this might appear to be the simplest of solutions the problem is that a lot of mortgages were issued under much less stringent credit guidelines than are being used today. Rates are higher than they were when the loans were originally issued so that makes qualification even more difficult although The USA Today reports that, "The company (Countrywide) is taking part in a national program to refinance or freeze interest rates for some borrowers with subprime adjustable-rate loans."   This in an effort to make re-qualification easier if not entirely unnecessary, at least for the present.

Consumers looking for immediate relief from the proposed Bank of America acquisition/merger of Countrywide may be disappointed. "Customers of Countrywide and Bank of America would see few changes before 2009, when the companies begin to combine some of their operations" states Noelle Knox, of USA Today.

Avoid Bankruptcy

Filing bankruptcy is not what it used to be. Bankruptcy law has changed dramatically in a number of states, most notably Texas, and while it may appear to provide immediate relief from creditors it can leave you financially crippled for a very, very long time. The Williams, Birnberg & Anderson website provides a lot of good bankruptcy information on the severity of choosing this option.

Chapter 7 bankruptcy  is the most common form of liquidation bankruptcy. It is a "fresh start" proceeding in which a consumer or business asks the bankruptcy court to wipe out (discharge) the debts owed. Read the rest of WBA's description of Chapter 7 before you jump on this band-wagon.

Chapter 13 bankruptcy  is a repayment plan for individuals with regular income, unsecured debt less than $269,250, and secured debt less than $807,750. If you have the stomach for it, learn more about the Chapter 13 option by clicking here.

The Debt Settlement Option

While debt settlement does not deal directly with the home loan refinance problem it can help you deal with it in an in-direct manner that won't destroy your financial future, provides more immediate relief, and there's no qualification process involved.

By negotiating with creditors to reduce the outstanding debt owed payments to creditors can be reduced, often making sufficient funds available for use elsewhere in the family budget; mortgage payments, for example. Credit card debt settlement is a common example of this type of debt settlement service although it's not limited to credit cards.

Climbing out of the financial quagmire can be an overwhelming task but there are people that can help you. Pick up the phone and contact a counselor right now. The sooner you begin, the sooner your debt will be gone, and the better you'll feel!

America Debt Resolutions
1-877-350-3328
customerservice@americadr.com
13601 Preston Rd., Suite 930E
Dallas, TX 75240