The undoing of the American dream of homeownership is all too common these days. In 2009, 2.82 million Americans were foreclosed upon—with such high numbers, it’s a fair assumption that many felt their foreclosure notices were a blow out of left field.

In fact, many first-time homeowners are woefully, fatally inattentive to the fact that just three months of missing their mortgage payments puts them on the fast track to foreclosure.  If the homeowner is in constant contact with their mortgage broker the struggling debtor could stretch that timetable to six months.  Homeowners who evade communication with their bank lenders can quickly default, after which the homeowner has only three months until the foreclosure notice comes in the mail—this only leaves you a short window in which to file bankruptcy to prevent a home auction.

Now President Obama aims to give everyone who defaults on their mortgage a fair warning.  Instead of the abrupt default notice followed by a swift foreclosure, the new program would demand that each homeowner is thoroughly considered for the “Home Affordable Modification Program”.  As H.A.M.P. has only been in a trial run since March 2009, homeowners who had submitted their eligibility could still be foreclosed on. 

Detractors call this a “ban on foreclosure” that could potentially devastate banks with massive write-offs, while it bears more similarity to a way for struggling homeowners to delay foreclosure by making monthly payments more affordable.  Some H.A.M.P. critics even blamed the program for a third quarter rise in home loan fraud, even though only 116,000 homeowners have thus far successfully modified their mortgage through it.

Before the H.A.M.P. program was introduced, one resourceful defense homeowners had was to refinance their mortgage.  This tactic worked for the select few who had built up an impeccable credit history over years of on-time mortgage payments.  New first-time homeowners, on the other hand, would need stellar negotiating skills to level with the tough mortgage brokers out there.  The only certain way to stave off foreclosure was the stay of bankruptcy protection.

Everyone deserves a fair warning that they’ve fallen behind on their debts, but H.A.M.P. is yet to be passed—until it does, your only fail-safe strategy to dodge foreclosure is to seek bankruptcy protection.  Our bankruptcy consultants can explain how a filing can help you protect more assets than you thought possible; for a free bankruptcy consultation, please contact Legal Helpers toll-free at 1-800-260-1402.

Additional critical credit information on President Obama’s Credit Card Act of 2009:

· Credit card rates CANNOT be increased during the first year. Low-interest introductory offers must last a minimum of six months. Fixed-rate cards must indicate the duration of the rate guarantee. Late fees CANNOT be charged if payments are received by the due date. Banks CANNOT charge fees for telephone or Internet payments.

· There can be no more “double-cycle billing”, where the issuer would charge interest based on the average balance from the past two months, even when the previous month’s payment was paid. Payments must be applied to the highest interest rate balances first.

· Credit card issuance to students is now limited to people over the age of 21 UNLESS they have proof of independent income or an adult co-signer.

· In addition, gift cards may not expire for five years and any inactivity fees CANNOT be levied unless the card has been unused for at least one year.

(Source: The Miami Herald, Martin E. Segal)

Call Legal Helpers toll-free at 800-260-1402 today for your initial free consultation or log onto www.legalhelpers.com. We can help you get free of your overwhelming credit card debt by filing Chapter 7 or 13 personal bankruptcy. Get the expert legal help that you need and deserved!

The Credit Card Act of 2009 was signed into law by President Barack Obama in May of last year. It was designed to improve customer disclosures and end unfair practices in the credit card industry. Effective dates of this piece of legislation were tiered for implementation between August 2009 and February 2010; this to give adjustment time to credit issuers.

Following is a summary of the law’s new restrictions on credit card issuers:

·       Cardholders must have 45 days advance notice of such important contractual changes as interest rate increases, although rates are NOT capped. Consumers may opt out of the rate increase and pay off any existing balances under the old rates. Under the old law, cardholders had only 15 days notice.

·       Bills must be sent out at least 21 days before payment is due. The old law required only 14 days notice.

·       Interest rates on existing balances CANNOT be raised unless a promotional rate ends or if the cardholder is 60 days late on a payment. If the default rate is implemented, the lower rate MUST be restored if the card-holder pays the past-due amount AND stays current for the ensuing six months of payments.

If you have been contemplating filing for personal bankruptcy protection due to overwhelming credit card debt, please contact the lawyers at Legal Helpers. We are knowledgeable and experienced in the field of Chapter 7 and Chapter 13 personal bankruptcies. We listen to you and suggest the economic plan that will be the best way to get out of your present financial difficulties and help you get a fresh financial start. Call toll-free 800-260-1402 today for your initial free consultation or log onto www.legalhelpers.com.