Published Tuesday, October 4, 2011 @ 1:50 pm

The nation’s income dropped in August 2011, for the first time in nearly two years, according to a government report released last week. The drop was precipitated by a weak labor market and falling consumer confidence.

According to Reuters, “Weak incomes as employment growth ground to a halt and earnings fell hurt spending in August.…

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Published Tuesday, August 30, 2011 @ 6:43 pm

Historically low interest rates haven’t really reaped the kind of benefits they normally would in a post-recessionary period. In reality, economic growth has stagnated, the real estate market remains in the gutter, and consumer confidence has yet to recover to pre-recessionary levels.

But bargain-basement interest is also having unintended effects, including what the Associated Press called “killing savers”—like retirees and others who depend on interest income.…

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Published Tuesday, July 26, 2011 @ 3:12 pm

Few average Americans are likely celebrating the recent two-year anniversary of the period when economists and other experts say the Great Recession ended. This is especially true given that the subsequent recovery has been called “the weakest and most lopsided of any since the 1930s.”

But what’s the real reason so many are feeling less-than-jovial about the couple of years since the end of the downturn?…

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Published Monday, June 20, 2011 @ 1:06 pm

Beginning in 2011, more than 10,000 baby boomers are turning 65 every day in a cycle that will continue for the next 19 years. And with these staggering figures, many experts are calling this boomer “coming of age” a troubling pattern amid tough economic times as most mature Americans have not saved effectively for retirement and/or are still retiring too soon to catch up.…

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Published Saturday, June 18, 2011 @ 8:21 am

It’s no secret that a big reason for our country’s lingering financial malaise is the real estate market’s seemingly unending mortgage crisis—forcing many Americans out of house and home while also contributing to a bleak economic environment for home purchases, investment and spending.

But along with the knowledge that the mortgage servicing industry foreclosed on more than one million homes last year and is on track to do better in 2011, comes more bad news for the beleaguered economy: high unemployment is now further dragging down the housing market and subsequent prospects for our country’s economic recovery.…

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Published Tuesday, May 3, 2011 @ 4:23 am

Just as Baby Boomers shaped the counter culture of the 1960s, this storied generation of robust lifestyles, risk-taking rebellions, and Rock-n-Roll significance is ready to yet again make its mark on America—this time, in their mid 60s. Today, Boomers now represent one-third of the total population of North America, with their highly populated presence standing as a testament to the hard lessons learned from the new economy: poor financial planning converging with uncertain economic circumstances at a vulnerable age in a working life, can have a apocalyptic impact on our nation’s more plentiful citizenry.…

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Published Tuesday, April 5, 2011 @ 8:37 am

With the blooming beautifully manicured landscapes, fresh-cut lawns and new signs of curb appeal, Spring used to be prime time for home buying. But with all of the hoops that potential homebuyers now have to jump through just to begin the process, tis the season of one in three Americans walking away from the actual home buying experience without an actual mortgage.…

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Published Monday, March 28, 2011 @ 6:15 am

We recently shared a sampling of the Federal Trade Commission’s recent tips for saving your home amid the financial fears of foreclosure. Being proactive, applying for a loan modification, and working directly with your mortgage servicer to for a better financial future in your own home sweet home.

But amid this timely advice for those seeking shelter from those who might otherwise take theirs, it’s worth mentioning news that when banks won’t help a beleaguered borrower modify his or her mortgage, scammers are stepping in to take advantage of these households in need.…

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Published Monday, March 14, 2011 @ 9:53 am

To commemorate the Federal Trade Commission’s annual National Consumer Protection Week (March 6 – 12, 2011), the FTC is providing a budget-load of handy-dandy information designed to protect your money, your credit, and your overall post-recessionary financial future. So whether you’re rebuilding your economic life post-bankruptcy, or simply trying to speed up your savings, the NCPW blog can yield a wealth of resources exactly at a time when average Americans need a financial infusion, including information about:

• Avoiding foreclosure rescue and other mortgage-related scams;
• Knowing how to spot employment opportunity scams;
• Making the most of your money in the early stages of your career;
• Building and maintaining a budget to improve financial stability;
• Avoiding time-share and credit-card scams offered via text messages; and
• Learning what steps to take to save your home from foreclosure.

…

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Published Friday, March 4, 2011 @ 12:42 pm

It’s no fun getting older: you suffer aches, pains, and maybe even the slow decline in vision, hearing and memory. But one thing that’s important to remember is that while these infirmities are natural to the process, what can be even more painful is growing poorer as you mature—a reality that’s becoming even more real for a growing portion of older Americans.…

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Published Monday, February 28, 2011 @ 8:29 am

One of the most widespread effects of the current housing market malaise is the “curse” of negative equity. This now ubiquitous occurrence of the real estate reckoning is a product of an underwater universe wherein a good number of houses all across the country are valued as less than what homeowners originally paid for them.…

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Published Monday, February 21, 2011 @ 7:39 am

New data shows that 2010 was marked by more personal bankruptcies than any other year since stricter federal bankruptcy laws were enacted in 2005. Roughly 1.53 million consumer bankruptcy petitions were filed in 2010, up 9 percent from 1.41 million in 2009, according to the American Bankruptcy Institute, citing data from the National Bankruptcy Research Center.…

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Published Tuesday, January 25, 2011 @ 8:22 am

Amid a 2010 marred by some of the highest foreclosure rates ever recorded, came the news that many of the nation’s largest mortgage lenders had been forced to suspend foreclosure proceedings following charges that these same “mega mortgage-holders” rushed the recordation process by forcing thousands of borrowers from their “home sweet homes” without the appropriate documentation to do so.…

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Published Saturday, January 22, 2011 @ 7:24 am

In 2010, the Obama administration reworked its $75 billion Home Affordable Modification Program (AKA “HAMP”) in an attempt to better help those hardest hit by the housing crisis: homeowners who were unemployed or underwater in their mortgages (i.e., owing more on their loans than their homes are worth). Within these changes, (1) the unemployed could qualify for up to a six month stay on their mortgage payments;  (2) in turn, participating banks would receive financial incentives to reduce mortgage balances for underwater homeowners; and (3) lenders could refinance mortgage loans secured by the Federal Housing Administration.…

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Published Thursday, January 13, 2011 @ 3:56 pm

Business insiders and industry experts are all aflutter after last week’s US Bancorp v. Ibanez decision in which Massachusetts’ highest court found that Wells Fargo and US Bancorp had no right to seize the homes of two delinquent borrowers since neither financial institution could prove they legally owned the mortgages at the time they foreclosed.…

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Published Wednesday, January 5, 2011 @ 9:56 am

Just as many people head back to work after an extended holiday, and many more continue to look for work in the New Year, new data this week shows that the old year (2010) was marked by more consumer bankruptcies that any other since stricter federal bankruptcy laws were enacted in 2005.…

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Published Monday, January 3, 2011 @ 8:51 am

Despite an apparent uptick in consumer confidence this during the latter part of 2010, no one is buying the idea that the housing market—a major cause for this decade’s economic meltdown—is getting better anytime soon. In fact, according to U.S. Bank regulators, the country’s home foreclosures actually spiked in the third quarter as banks and other mortgage lenders became less inclined to help Americans stay in their homes as the housing market continues to struggle.…

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Published Wednesday, December 29, 2010 @ 7:29 am

Just as Baby Boomers shaped the culture of the 1960s, this generation of active lifestyles, risk-taking rebellions, and musical significance is set to yet again make a mark on America—this time, in their 60s.  With Boomers now representing one-third of the population of North America, their presence and age alone stands as one of the three “Bs” of the new economy (including “bad timing” and “bad planning”), with the combination having a severe financial impact not only on the needs of our nation’s more mature citizenry but also our overall economy as these millions of men and women prepare to retire in 2011.…

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Published Friday, November 12, 2010 @ 10:36 am

As has been well reported, mortgage modifications in the current housing market remain hard to come by. But what is less well known is that even for many lucky enough to modify their current house payments, the financial future is far from safely sheltered.  According to a recent report, more than 50 percent of homeowners who received mortgage modifications were at least two mortgage payments behind within a single year’s time, yet again making them vulnerable to perils of foreclosure.  The report also showed that approximately one-third of homeowners who received mortgage modifications that reduced their monthly payments by 20 percent or more had fallen behind again within a year compared to 60 percent for borrowers whose loan payments were left unchanged or increased.…

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Published Sunday, October 31, 2010 @ 5:41 pm

This week you may have seen many ghouls and goblins trolling around your neighborhoods, asking for tricks or treats. But, the scariest thing currently happening in your community is an array of potentially unlawful home repossessions from mortgage companies expediting the foreclosure process or refusing mortgage modifications in bad faith. In turn, a whole host of homeowner lawsuits have erupted on the scene, with the vast majority of them revolving around the idea that mortgage companies are deliberately misleading and manipulating homeowners just like you for their own financial benefit.…

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Published Thursday, August 26, 2010 @ 11:41 am

Just a few years ago, home ownership was something available to just about anyone—an economic reality that to an extent, contributed to where we are today. Nevertheless, the mortgage boom helped a lot of people realize that benefits of home ownership. It’s simply too bad that it came with so many hidden financial pitfalls, many of which have subjected sub-prime borrowers (and also those with standard mortgages) to serious, long-term hardships.…

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Published Thursday, August 26, 2010 @ 9:27 am

Debtors attempting to avoid bankruptcy by waiting for housing prices (and equity) to increase may be waiting a long time. In fact, according to The New York Times, wealth-building via housing booms may have also gone the way of guaranteed pensions, free healthcare, and secure employment.

Per the NYT, “many real estate experts now believe that home ownership will never again yield rewards like those enjoyed in the second half of the 20th century, when houses not only provided shelter but also a plump nest egg.…

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Published Tuesday, May 18, 2010 @ 10:17 am

Just two months ago, the Obama administration reworked its troubled $75 billion foreclosure prevention plan. The revamped Home Affordable Modification Program (or HAMP), put into play an attempt to help those hardest hit by the housing crisis, targeting homeowners who were unemployed or underwater in their mortgages (owing more on their loans than their homes are worth).…

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Published Friday, May 14, 2010 @ 8:20 am

Don’t call him a repo man. But if you are behind on the house payments, he’s coming for your keys.

In what can only be considered a sure sign that the current housing crisis is unlike any other, banks are now deploying professional “mediators,” to visit struggling homeowners to negotiate a settlement, which usually ends up with the homeowner accepting a check and the bank changing the locks.…

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Published Friday, February 5, 2010 @ 12:07 pm

Foreclosures have become a plague across the country, sickening the economies of small towns, the general contractor industry and even the commercial real estate industry. No facet of the real estate world has gone unaffected.

Whether your home was foreclosed upon or your mortgage lender granted you a short sale (negotiated permission to sell your home for less than what is owed), it was probably considered a tremendous relief to drop the proverbial financial anchor tied around your neck.…

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Published Monday, February 1, 2010 @ 10:23 am

If A Wealthy Developer Can Walk Away From The Mother Of All Underwater Mortgages, Why Can’t You?

Rachel Beck, national business columnist for The Associated Press, asked this very question in a recent article upon finding that heavily capitalized developer Tishman Speyer Properties was able to simply “walk away” from 11,232 Manhattan apartments because it couldn’t pay its mortgage, under the guise of “good business,” while at the same time, in the same country, Rick Gilson, a college custodial supervisor in South Dakota, resists walking away from the mortgage on his mobile home, fearing he’ll be considered “a deadbeat.”

As Beck found, “Those two borrowers face the same financial dilemma: Their mortgages far exceed the values of their properties.…

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Published Monday, January 18, 2010 @ 6:48 pm

In 2005, Congressional changes to the Bankruptcy Code made bankruptcy filing more cumbersome by requiring quite a bit more red tape, leading to a significant drop in filings the following year (2006). But, as a result of the economic downturn, during the past three years, bankruptcy filings have risen back to the levels seen before Congress’ 2005 bankruptcy overhaul.…

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Published Monday, July 6, 2009 @ 8:04 am

As you might imagine, one of the major casualties of the housing bust has been the collapse of home construction suppliers all around the country. The livelihood of these companies depends upon a thriving housing market in which homebuilders are buying windows, paneling, roofing, and other construction materials. But that’s not happening.…

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Published Sunday, June 7, 2009 @ 12:37 pm

Despite being marked as the peak of the recent “boom years”, 2005 is on record as the year in which the most bankruptcies were recorded. Despite heavy job growth and a supposedly great economy, two million Americans sought financial relief from the court system. This year, it looks as if about 1.5 million people will file bankruptcy.…

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