Brokerage

Riding the loan modification merry-go-round

What it takes to climb out of a credit mess

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

According to RealtyTrac's U.S. Home Equity & Underwater Report for the fourth quarter of 2014, over 7 million homeowners (13 percent) still have combined loan amounts exceeding their property’s worth by at least 25 percent. In many cases, their credit cards are maxed out, a missed payment can result in interest rates as high as 28 percent or more, and they can’t obtain a loan modification because their credit scores or the value of their home is too low. What are the realistic options for climbing out of a credit mess? When you or your clients find yourself in a financial mess due to circumstances beyond your control, you have a number of options. Do you walk away from your home when your mortgage exceeds its value? Do you default on your credit cards and/or declare bankruptcy? Alternatively, do you stay the course and do your best to climb out of the mess? When I had six surgeries in a 12-month period coupled with the recession, our 42-year-old business partner dying of ...