If you’re struggling to pay your mortgage in Maryland, you may be considering a home loan modification. While this process can lower your payments and allow you to keep your home, you must also be aware of potential scams that will deprive you of your money. The Federal Trade Commission explains some common mortgage relief scam tactics and how to avoid them.
Unsolicited calls and correspondence
People in Rockville may often be shocked to hear the news that a certain person or company has filed for bankruptcy, believing that certain individuals and businesses either are so successful or have such a strong market presence that facing financial struggles might seem an impossibility. Yet such news should serve as a stark reminder that no person or organization is immune from experiencing monetary difficulties. Such difficulties may be due to struggles to adapt to new challenges, or unforeseen circumstances that place people or companies in a disadvantageous position.
In the case of the popular shoe retailer Payless, it appears to have been both. Many well-established retailers have lost huge portions of their customer bases in recent years as online retail continues to grow. While other companies in their space have been able to survive by creating strong online identities themselves, Payless has failed to keep up. That fact, coupled with supply chain issues and massive internal computer network failures in 2017 and 2018 that forced the company to lose millions by selling excess inventory at below-market prices, has left the once-thriving retailer in a near-fatal financial position. That position was detailed in a recent Chapter 11 filing, in which store representatives announced the companies intention to close all of its stores in the U.S. and Canada. The company's international stores will remain open.
People who have filed for bankruptcy are often aware of the impact it can have on their credit report. Once the bankruptcy is discharged, it can be challenging for debtors to find ways to rebuild their credit. Some credit card companies focus their efforts on enrolling people who have filed for bankruptcy, highlighting the benefits that having a credit card can have when rebuilding credit and increasing their credit score. It is important that debtors are aware of the dangers certain credit cards bring, as they may lead them into debt even after they have filed for bankruptcy.
Subprime credit cards allow people with poor credit scores access to a credit card. Due to their low credit score, however, the companies charge inflated fees, high interest rates and other expenses in an attempt to offset the risk of issuing the credit. People may not understand what they are getting into when signing up with these companies. While having a credit card and paying off the balance each month can often help credit scores to climb, it can be difficult to pay off balance when a myriad of fees, including maintenance fees, processing fees, authorized user fees and annual fees, are applied.
When businesses in Rockville are forced into bankruptcy, it is rarely due to one single reason. Rather, a unique (and unanticipated) confluence of factors contributes to it experiencing financial struggles. Oftentimes alternative revenue streams may be available to offset major losses, but when a company specializes in a single service, finding other sources of funds can be difficult. Ultimately, bankruptcy might be the only option if a struggling company wants to stay in business.
One might think that if any company would be immune from an economic downturn, it would be a hospital (after all, no matter the state of the economy, people will continue to get sick or injured). Yet a rural community hospital in Maine recently filed for a Chapter 11 bankruptcy, citing both reduced insurance reimbursement and declining patient volumes as the reasons for its struggles. The hospital noticed a significant decrease in patient admission after the local area's largest employer went out of business. This change happened to coincide with reductions in reimbursement from both Medicare and Medicaid (a trend that healthcare industry experts say is threatening the financial positions of hospitals across the country).
Millions of Americans find themselves overspending each month. If you can count yourself as one of them, you no doubt want to find ways to keep living the lifestyle you’re comfortable with, but keep your checking account out of the red. The truth is, with some minor adjustments you can do both.
In a recent blog we discussed some less-than-great spending habits you should avoid. This time we will be examining what good habits you can pull into your daily life which will help keep your wallet full. Shoving out those bad habits and embracing these good habits can have a major impact on not only your bank account, but also your peace of mind.
The quicker you pay off your mortgage, the less interest you ultimately pay. That’s why many homeowners in Maryland look for methods of paying down their debt faster, which can be a bit difficult for people living on a budget. Taking the right steps can help you get a handle on mortgage debt, as explained by Bankrate.
Increase monthly payments
You worked hard to save enough for a down payment on your Maryland home. However, life happens. Circumstances change, from losing your job to medical issues and more. If you are falling behind on the mortgage payments that used to be affordable, you may wonder if there are alternatives to foreclosure. At the Law Offices of Richard B. Rosenblatt, PC, our experienced team helps clients obtain reasonable modifications that help save their homes.
Nerd Wallet reports that a loan modification differs from refinancing. It changes the terms of the original loan instead of replacing it with a new mortgage. For struggling homeowners, it may result in lower monthly payments. Many lenders prefer this option as foreclosures are costly. Depending on your circumstances, the modification in payment amount may last for a specific amount of time or the entire life of the loan.
If you are a Maryland small business owner struggling to stay afloat, you may be searching for options to keep your company open. Depending on your specific situation, bankruptcy may provide the breathing room you need. At The Law Offices of Richard B. Rosenblatt, PC, we frequently assist clients in finding the best resolution to their debt problems and help them get back on track.
According to Chron, Chapter 11, also known as “reorganization bankruptcy.” While it can be more complicated and expensive than Chapter 7, this option offers protection from creditors and allows your business to continue operating while you get the finances in order. The court requires detailed information regarding your financial situation, the obligation to creditors and assets before debt restructuring can take place.
If you’re experiencing financial issues, you may be thinking about altering your behavior. In some cases, a person’s spending habits have a direct impact on their financial stability, sometimes leading to insolvency. The Balance offers examples of poor spending habits, as well as tips on how to avoid them.
Relying on credit
If you’re a homeowner in Maryland, being faced with a foreclosure is a very upsetting proposition. Having the right information is crucial in this case, both to avoid losing your home as well as to steer clear of any potential foreclosure scams, which could deprive you of even more money. In this case, USA.gov offers the following guidelines.
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The Law Offices of Richard B. Rosenblatt, PC
30 Courthouse Square Suite 302
Rockville,
MD
20850
Toll Free:
866-930-0413
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301-637-0402
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301-838-3498
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