Posts Tagged ‘Equity in home’
While foreclosures in the Milwaukee, Waukesha, Racine area are trending down, people in Wisconsin are still very interested in ways to help them manage their mortgages. One bright spot in these difficult economis times has been the low mortgage rates, check them out here.
If you need advice on how to save your home and you are living in Wisconsin, call Miller and Miller today. With offices in Milwaukee, Germantown, and Kenosha we have an office near you.
While the housing in metro Milwaukee is starting to pick up, below is a question that many homeowners are facing. Great stuff from Christopher Farrell of American Public Media.
Question: Three years ago — fresh out of grad school, with new jobs and lots of optimism — my husband and I bought a beautiful house that we love. Trouble is, we spent too much money. Now, our mortgage consumes nearly all of our monthly income, leaving us very little to save for retirement, our kids’ college funds or do the things we love such as traveling. We both work for non-profits and like our jobs, so the prospect of increasing our incomes significantly isn’t really there. We’re quite frugal, so there aren’t too many places to cut back. The good news is: We’re not underwater (according to our tax assessment) and we can make our mortgage payments and pay our bills. That said, if we had an emergency, lost a job or had a big home repair, we’d be in trouble.
The question, then, is: Should we cut our losses, try to sell and buy something cheaper? In our accounting, after the realtor fees, etc., we’d probably end up netting about what we owe and lose the about 10 percent equity we have. Is that crazy? Over the long-term, we think about all we could do with the difference between our current mortgage payment and what we’d pay on a house that was, say, $100,000 cheaper, and it seems to make sense. We’d love to hear your advice. Thank you! Julia, St. Paul, MN
Answer: In reading your email, I think you’ve already answered your question: You’re going to move into a cheaper place. It isn’t a crazy move at all. It’s a smart long-term move. House-poor is no way to live. A lesson of the turbulent economy of the past several years is everyone needs to create a margin of financial safety for their household. I applaud what you’re doing, and if I were in your circumstances, I’d be thinking along the same lines.
When it comes to homes, small(er) is financially beautiful. The mortgage is less. So are insurance, taxes, heating, cooling bills and other costs of ownership. These cost savings compound over time.
To me, the real issue you face is timing. When do you make your move?
What I would do to concretely grapple with that question is to start a serious look for the kind of home you’d like in your new price range and in neighborhoods you want to live in. Go to open houses. Hire a real estate agent. Visit homes for sale. You want to see what you can really get in the current market for the amount of money you’re thinking of investing. I would also see what you need to do to get your place ready for sale. What are homes like yours going for in the market?
You can then run actual numbers to see how you’ll stack up financially moving from where you are and into a cheaper place. You can see whether you might lose your down payment. You can weigh short-term costs vs. the long-term gains. And so on.
At the end of this research and number-crunching exercise, you might decide to wait another year. Then again, you might find the right place at a great price and the trade-offs to get there are worth it. With research, you’ll make an informed decision about the timing.
If you live in Southeastern Wisconsin, feel free to visit us for a free consultation at one of our offices in Milwaukee, Kenosha, or Germantown. We can help you to understand your options if you are looking for ways to save your home in Wisconsin. Call us today at 414-277-7742!
All too often, clients come into our office, review their credit report, and are shocked to see what is listed. Sometimes this is because there are old items that have been forgotten, but another culprit is identity theft.
As the web has evolved, so have criminals and their tactics. With websites that look similar to name brand sites, con artists can pluck information as consumers enter what they believe is a legitimate site. Once someone has stolen your identity and injured your credit score, it can be challenging to repair the damage.
“Everything is done online these days,” says Identity Theft Resource Center Social Media Coordinator Nicki Junker. “Most of the time the victims of cyber-savvy criminals won’t be able to trace where the identity theft — a crime that has seen double-digit increases in the last five years — happened.”
Identity theft often goes unnoticed until it’s too late and the damage has already been done. In 2010, around 8.6 million households had at least one person who was a victim of identity theft, up from 6.4 million households in 2005, according to a recent study by the U.S. Bureau of Justice Statistics. Identity theft cost U.S. households about $13.3 billion in 2010, with the average loss being about $2,200.
Consumers can, however, take precautions to safeguard themselves and their identities while shopping online. Junker offers five ways to protect yourself online:
1. Confirm the site is legit: Before giving any personal information, check the URL to make sure that you’re still on the same site where you plan to make your purchases and that you haven’t been moved over to a fake one. Junker said sometimes consumers are switched over to a “cyber squatter’s” site that looks similar to a retailer’s site. It’s easy to be tricked into giving up credit card and other personal information.
2. Shop securely: When you start to check out and get ready to pay for your purchases, the URL should start with “https,” which means the site is secure. A secure site uses security technology to encrypt the information you send to the site, meaning computer hackers are stopped from collecting the data as it crosses the Web. You can also look for a closed yellow padlock at the bottom of the screen. If you see an open lock, you can assume that the site is not secure.
3. Use credit cards: Federal credit laws limit the amount a con artist can take on a credit card. Debit cards don’t have the same protections. “If they have a debit card, they can clear you out,” Junker explains. “You’re much better protected using a credit card than a debit card.”
4. Google the retailer: Before buying from a website, type in the retailer’s name and the word “scam” or “complaint” into a search engine. It’s a way to check out a retailer to see if the business is legit or not.
5. Explore the site: Can you find where the company’s office is located? Does the site clearly state a refund policy? Does it promise too much? “If it sounds too good to be true, it isn’t,” Junker warns. Take your time and make sure nothing seems out of whack or iffy.
Shopping online is a convenient way to avoid store crowds and traffic. By following these web-savvy tips, your shopping experience can be safe and convenient. If you are living in Milwaukee-Waukesha-Racine area, the attorneys at Miller and Miller can help you to repair and rebuild your credit if you think there are errors. Call us at 414-277-7742 today!
Misconceptions About Bankruptcy Could Be Keeping Away Those Who Need Help
Historically, bankruptcy has been stigmatized. Narrow-minded people saw those filing for bankruptcy as failures, as deadbeats or as being guilty of living far beyond their means. Nowadays, though, we know that the great majority of people filing for bankruptcy protection are victims of circumstance: their debt could easily have been caused by a job loss, divorce or serious illness that racked up a mountain of medical bills.
The bankruptcy laws have undergone significant changes in recent years, and some people think it is now all but impossible to file. If anything, however, the new laws make it easier to use this legal tool for a financial fresh start. Unfortunately, there is a great deal of misinformation — both good and bad — floating around about the purpose of bankruptcy and about the process of seeking bankruptcy protection to deal with personal or business debt. This article will help dispel some of the myths and make it more approachable as a debt management option.
No More Stigma
Most people considering a bankruptcy filing fear that they will be stigmatized by family, friends and coworkers. Luckily, this is not true; unless the filer is a public figure or involved with a large company, 99 percent of the time the public will never know about a bankruptcy filing. Likewise, they may fear that lenders will forever view them as a bad risk and that they will never qualify for financing on auto or home purposes in the future. This, too, is a myth. While a bankruptcy filing does show up on the filer’s credit report, most filers can start building their credit again just a few years afterwards. For some filers, the wait is even less.
Do I Have to Sell Everything?
Some people have this abstract view of bankruptcy as being a court-ordered “rummage sale” of sorts where they will have to liquidate everything from their household furniture to their great-grandmother’s china. Yes, the court may order a filer to sell superfluous and extravagant assets (like a vacation home in Aspen that is used one week a year or an original Shelby mustang that has been under a tarp in the garage for a decade), but the majority of filers get to keep their home, clothing, household belongings, work-related items like tools, furniture and the family vehicle.
You CAN File Again
For some people, a second — or even third — bankruptcy filing is a necessity. While common knowledge may say that bankruptcy is a one-shot deal; you get a single chance to get a financial new beginning through the bankruptcy code. This simply isn’t the case. While there are waiting periods put in place to prevent so-called “serial filers” who might have a pattern of irresponsibly running up massive amounts of debt and then filing for bankruptcy again and again, the law doesn’t bar a subsequent filing if legitimate financial circumstances dictate.
Even though bankruptcy is more accessible than it has been in the past, the process can still seem overwhelming and even scary. With the help of an experienced bankruptcy attorney, though, bankruptcy can be a great way to get out from under a mountain of debt and get a fresh financial start.
At Miller & Miller we are here to help you file in Milwaukee, Kenosha, Racine, West Bend or wherever you may live. We have convenient offices in Kenosha and Germantown if getting to our downtown office is a problem.
The Basics of Chapter 13 Bankruptcy
Chapter 13 is very effective at helping filers get a fresh financial start while being able to keep valuable assets like homes and cars Federal bankruptcy laws exist to give debtors an escape from overwhelming debt when they find themselves in an unworkable financial situation. The protections offered by a bankruptcy filing have only rarely been more important than they are in our country’s current economic situation. Stock market woes, the burst housing bubble and chronically high unemployment rates have left record numbers of Americans in financial trouble and looking for more information about debt relief options like credit counseling, loan modification, debt consolidation and bankruptcy.
Types of Bankruptcy
There are several different types of bankruptcy filings that a debtor might consider. Eligibility for these programs are based upon an analysis of the debtor’s unique financial condition and whether the filer is an individual, a business entity, a farming enterprise, a fishery, a railroad or a municipality.
- Businesses — depending upon the industry — might be able to file under Chapters 11, 12 or 15 of the U.S. Bankruptcy Code.
- Municipalities like cities, towns, villages and school districts can seek the protections offered by Chapter 9.
- Individual debtors, however, have two choices: Chapter 7 or Chapter 13.
What Is Chapter 7?
Consumer bankruptcy is the blanket legal term for a bankruptcy filed by a single individual (or by a married couple) instead of a by a business or other entity. Consumer bankruptcies are covered by Chapters 7 and 13 of the Bankruptcy Code.
Chapter 7 is better known as “liquidation bankruptcy.” It involves the literal liquidation (selling) of the debtor’s assets in order to raise money that will be used to pay debts. Secured creditors — those whose debts involve a tangible collateral like a house, car or appliance — are given priority, so they are paid first. Any debts not payable through the proceeds of a liquidation are discharged at the end of the proceeding, except for certain debts (student loans, taxes, child support and alimony) that are non-dischargeable. Chapter 7 does include myriad exemptions that will protect various types of property from being liquidated, however, so filers do get to keep the majority of their essential assets.
Because it is more inclusive and involves the discharge of all or most debts, it is more difficult to qualify for Chapter 7 bankruptcy protection than it is for Chapter 13. Potential filers must undergo what is known as a “means test” to determine eligibility. Most people who do not qualify to file under Chapter 7 are able to bring a Chapter 13 filing instead.
What is Chapter 13?
Chapter 13 bankruptcy involves the reorganization / consolidation of all the filers debts into one amount that is repaid over a period of three to five years. People filing under Chapter 13 do not have to pass a means test, but they do have to prove to the bankruptcy court that they have an income with which to make regular payments on their debt. Some debts — the like student loans, taxes, child support and alimony mentioned above — cannot be included in the repayment plan and are not subject to discharge.
Chapter 13 is very effective at helping filers get a fresh financial start while being able to keep valuable assets like homes and cars without seeking exemptions. There is not the immediate discharge of debt like there is in Chapter 7 bankruptcy, but if the debtor fulfills the obligations of the repayment plan, remaining debt is discharged at the end of the agreed-upon time.
Why File a Chapter 13 Bankruptcy?
Most people choose Chapter 13 bankruptcy filings to protect themselves from foreclosure, repossession or wage garnishment. Filing for bankruptcy protection activates something called an “automatic stay.” That means that while the filing is pending, creditors cannot pursue lawsuits, garnishments, repossessions or foreclosures. In fact, they cannot even contact the debtor while the automatic stay is in place — all harassing phone calls and threatening letters must stop once the filing process has begun. Past due amounts on mortgage or car payments can be rolled into the consolidated debt and paid back over the life of the repayment plan, so as long as the debtor remains current.
In addition to the protections offered by the automatic stay, Chapter 13 is also a relatively inexpensive way to get a fresh financial start. Yes, filers have to commit to making payments on their debts for a period of time, and the bankruptcy will have a long-lasting impact on their credit rating, but they can also start to rebuild credit not long after filing. Furthermore, the negative impact of a bankruptcy filing is still less significant than that resulting from a foreclosure, repossession or garnishment.
If you want to learn more about filing for Chapter 13 consumer bankruptcy, contact an experienced bankruptcy attorney in your area.
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