The North Carolina Bankruptcy Information Blog

As countless bankruptcy clients in this country have made clear, seeking the debt dissolution solutions of a personal bankruptcy can help free up finances that help with home mortgage payments—even amid the real estate reckoning of the recent recession—and, as such, aid many households in avoiding the perils of foreclosure.

But now the proof is in the reporting.

In a report released Tuesday, New York Federal Reserve researchers Donald P. Morgan, Benjamin Iverson and Matthew Botsch determined that there is a direct link between the October 2005 change in bankruptcy laws via bankruptcy abuse reforms (or BAR)—a change that made it more difficult for ordinary Americans to eliminate debts in bankruptcy—and approximately 116,000 additional subprime mortgage foreclosures in 2006.…

Even though the Triangle is one of the better performing real estate markets in the country, even being named by Newsweek as one of the Top 10 Places in America Poised for Recovery, it wasn’t enough to buoy the state’s foreclosure rate, which has surged during 2010.

In October, the foreclosure rate jumped more than 40 percent when compared to the same time last year. This was supposed to be the year of rebuilding, the year the recession slowed. RealtyTrac, a real estate data service, also reported that the number of foreclosures in October was 13 percent higher than September.

Oddly enough and accolades aside, our state is running contrary to the national foreclosure trend, which is down 4 percent from September.…

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.…

Bankruptcy gives you a fresh start; a relief from the stress and uncertainty about your future. Your hope is that things will soon be back to normal. But that hope is often based on the answers to so many questions. For many, one of those questions may be about your ability to buy a home. You may have heard the myth that a bankruptcy is a black mark on your credit, and that you will never be able to buy a home. Don’t believe it for a second! You can buy a home after bankruptcy. With some time and planning, it will be much easier than you think.…