Black and Buono Blog

...by Anthony Buono

As we head toward another recession, (many homeowners in Massachusetts will say we never left the last one), there are some disturbing credit facts out there I’d like to bring to your attention:

• According to Equifax, nearly 15 million new credit cards were issued in the first five months of 2011, a three-year high.
• Banks gave 4.4 million cards to consumers with poor credit histories, a 65% increase during that same time period last year.

By Anthony Buono

Many people come to me when, financially, it is already too late. They have been receiving the notice of foreclosure letters for 120 days, and all of a sudden they need to be out of their house tomorrow and they want us to help them. Understand, we would love to help, but we needed to begin our dialogue several months or at least several weeks ago. If you have over $15k in Credit card debt and you make less than $100k a year, you need to talk to someone. You are already in financial trouble. If you are paying the minimums on your credit card, at this rate it will take you 22 years to pay off your credit card debt.

Does that sound familiar? If you are living week to week, then your financial situation is not stable. You should talk to a professional credit or bankruptcy attorney. There are warning signs of financial troubles, but unfortunately, human nature is to stick our head in the sand.

This is not the answer to consolidating your debt, avoiding bankruptcy, or staying out of bad financial straits. Plan ahead if you are having financial troubles. How do you know you are having financial trouble? With a little introspection, you will realize that you already know if you are. However, here are some questions you should ask yourself: Are you paying for essentials with a credit card? Are you paying only the minimums on your credit cards? Do you owe more than 15k in credit card debt and making less than $100k per year? Have you skipped a mortgage payment? Or two? Are you living week to week? Have you already received a notice of foreclosure on your home? If any of these questions ring true, please call us at 877-619-5089 while there is time for us to help you. If all of these ring true, please call us today. And, while it is human nature to choose to ignore these problems, think of how much better you will sleep at night once you start getting answers to your questions, start putting together a solution, and start understanding the process. Call us at 877-619-5089 for yourself and for your family.

...By Anthony Buono

One of the most common New Year’s Resolutions, other than health and fitness, is financial. It is the New Year, and one of your resolutions may be to get out of debt or at least decrease your debt. Many Americans overspent during the holidays,  as this is a holiday tradition in many American households. In fact, Finance or budget is the topic of a goal most people make. Some want to reach a certain target like making their first million; others make the resolution to get out of the debt trap, or others want to make a sound financial plan so that their earning matches the spending.

But it can be really difficult to stick to a budget, or a resolution. Try hard to stick to your New Year’s Resolution in 2011. Do something different this year so you will follow through on your resolutions.  Resolve to write down your resolutions, resolve to review them to see how you are doing, and resolve to not spend money at the next store sale. Do not make excuses to spend money unnecessarily, and always put your budget in a place where you will see it often. Perhaps give yourself a weekly allowance, and do not exceed that amount.

Keep in mind, "A fool and his money are easily parted." --Proverb

...By Anthony Buono

The large majority of bankruptcy filings from senior citizens stem from credit card debt.

Only 7 percent of all bankruptcy cases filed in the U.S. between 1991 and 2007 were entered by people aged 65 and older, however, the demographic was the fastest-growing age group observed in a new study from the University of Michigan Law School. About two-thirds of these elderly consumers were forced to file for protection because their credit card debt was unmanageable; their debt was roughly 50 percent higher than it was for bankrupted consumers in other age groups.

There were a number of causes for these filings, the most common being senior citizens' reliance on credit cards to pay for medical expenses as their incomes decreased and became fixed, the report said. In addition, others had to deal with the death of a spouse who provided a secondary income.

In recent months, fewer Americans filed for bankruptcy as a result of insurmountable credit card debt. Fewer filings may signal improvement in the economy and rising consumer confidence.

...By Anthony Bruno

The holiday season is here, Christmas is a week away. Everyone is celebrating and many are over indulging. It seems like the office parties, Yankee swaps, and holiday shopping are never ending. Be careful not to let your expenses get out of hand and land you in holiday debt.

Once January arrives, many discover they have thousands of dollars in credit card debt and no way to pay it off. One of the best ways to erase debt at the holidays is by paying cash for all of your holiday purchases. Every year at the holidays, Americans over-spend on credit cards.

We buy gifts for family, friends and co-workers. In addition to all these gifts, parties also cause holiday debt. In this last week before Christmas, when many do all their shopping and party preparations, make a commitment to not use credit cards. If it is too late, now that Christmas is a week away, plan on committing to all cash next year. Plan to use cash for everything holiday, not just the gifts.

Many fool themselves into thinking that the only thing that gets them into trouble is buying gifts, but the following list can all lead to holiday debt.

• Presents
• Christmas tree
• Holiday lights and decorations for the house
• New holiday outfits.
• Food for the holiday meal and for the potluck parties you attend

Please give yourself a gift this holiday season, make a New Year resolution to eliminate credit card debt. Use cash and not your credit cards.

... by Kiley Black

In today’s economic climate, we have heard quite a bit about short sales of homes. There are many questions concerning Massachusetts short sales, namely what are they, and how do you qualify. The banks approve short sales for two reasons. The seller must face a hardship, such as loss of job, divorce or death and the bank must agree to accept less than they are owed for the loan.

A short sale in real estate is not always a relaxing or timely transaction.

There are many ways to lose a home but signing away your ownership in a way that ruins your credit and embarrasses you and your family is one of the hardest. For owners who can no longer afford to make their mortgage payments, there are alternatives to bankruptcy or foreclosure. One of those options is called a "short sale."
However, many home buyers do not understand the short sale process, so they are impatient waiting for short sale approval. Confused buyers are looking for direction, and not all buyers’ agents are well versed in the short sale process. It is important to understand the process if you intend to buy or sell a home through a short sale. But it is equally important to surround yourself with people who know the process as well.

When banks agree to do a short sale, it means the bank is accepting less than the total amount due. Not all banks or mortgage brokers will accept short sales, especially if it would make more financial sense to foreclose; additionally, not all sellers and properties qualify for short sales.

If you are considering buying a short sale, there could be drawbacks. For your protection, we suggest that all borrowers:

• Obtain legal advice from a knowledgeable real estate lawyer
• Call an accountant to discuss the tax ramifications of a short sale
• Check for liens on the property to ensure you are not responsible for any outstanding debts once you close on the property.

By Kiley Black

There is no doubt that in our community, many people are suffering from the problems of debt. Many homeowners are experiencing a cash crisis. With credit cards up to their limits and income not meeting the needs of home expenses, many are wondering how to survive the holidays. Credit counseling services may be what is needed to get a handle on your future. Believe it or not, a lawyer who specializes in debt management credit counseling may be able to help you. This is done through direct negotiations with creditors; assisting small businesses with commercial debt restructuring, and assisting individuals with credit card debt.

In today's economic climate, a growing number of us are suffering from negative ratings in our credit file such as delinquent payments, judgments, collections, foreclosures, and bankruptcies. Obviously this prevents us from obtaining new credit when we need it most. Black and Buono works hard to assist individuals and small businesses in avoiding filing for bankruptcy relief whenever circumstances permit. Our firm strives to assist the over-extended individual with compassion, professionalism and experience. Financial strain truly adds stress to your life and your marriage and family. Find assistance before too much of a toll is taken on your health, your life and your family.

...by Kiley Black

Bankruptcy is an option when you owe a lot of money, but how do you know when to file? Have you been asking yourself questions such as: Am I qualified? Do I owe enough money? Does it make the most sense for my situation? Is there another option?

For individuals, there are two main types of bankruptcy, Chapter 7 and Chapter 13, and both require credit counseling. Chapter 7 is straight liquidation. This involves selling the debtor's nonexempt property to pay off the debt and it is more difficult to file. Chapter 13 is a repayment plan with a debt limit. It is best for those with a regular income with which to pay off their debts.
It is important to consult a bankruptcy expert before filing. Many believe that alimony, support, student loans, drunken driving judgments or debts from fraud are erased with bankruptcy filing, but this is not the case.

The best answer for “when should I file for bankruptcy?” is to file when you have exhausted all other options or if you simply owe too much to pay back. If you are in the situation where you owe an insurmountable amount of money which outpaces your income and you have consolidated your loans and spoken to credit agencies; or perhaps you are borrowing money from retirement plans. Also, if your wages are being garnished, bankruptcy may be what you need to address your current situation. Perhaps you have a large medical bill which continues to grow, or would take a very long time to pay off, this type of bill is dischargeable with bankruptcy.  Bankruptcy can remain on your credit report for up to ten years, so this does take some thought, do not just file for bankruptcy when you owe money. If you find yourself meeting some of the above criteria, get in touch with a bankruptcy professional who can help you explore whether bankruptcy is the right option for you.

... by Kiley Black

Mortgage rates are at an all time low making this a perfect time to refinance your home. Many home owners feel that they cannot refinance because of their credit score or because there is a lack of equity in their home. Many also believe that it is not worth it to refinance their home. This is not always the case.

Mortgage refinance may be the fastest way to repair your bad credit. Lenders may be harder on you because of bad credit, but refinancing is still very possible and may be the fastest route to credit repair. Most likely you will have to use a subprime lender, and subprime loans are only a temporary fix. A real estate attorney can help you find a reputable subprime lender. You need to be diligent with your mortgage payments to fix your credit record. Realize that if you have poor credit, it is very possible to re-establish good credit with the right bad credit repair. Essentially, you need to learn from your mistakes and punctually pay every bill.

Often, home owners adopt the route of refinancing their home mortgage, by consolidating all of their debt. In particular, if they are holding credit card debts whose interest rates tend to be costlier than home mortgage rates, they might look to consolidate credit card debt with their mortgage.  There is an advantage to this; the overall payout rate tends to be lower than if these debts were to be repaid individually. However, this does draw out the payout duration. For many, this is still a better scenario making the payments more manageable and bringing those payments more in line with current earnings.

A lawyer who does credit counseling can refer you to many people within their network who can help you through the refinancing process and can offer advice to you when considering what would work best for you and your credit score.