Atty. Raymond Bulaon

Are debt problems making your life too complicated?

Tuesday, 21 July 2009 21:22 Atty. Raymond Bulaon

DO YOU want to simplify your life, reduce stress and regain control over your financial future? If you are one of the millions of people in this country who are drowning in debt, maybe you are feeling a sense of urgency and desperation about your situation but don’t know what to do.

Someone said that we are living in a society afflicted with "affluenza"- defined as a "painful, contagious, socially transmitted condition of overload, debt, anxiety and waste resulting from the relentless pursuit for more". Perhaps you recognize the symptoms. Today, our worth is defined by the financial success we achieve and the material possessions we accumulate. Our pursuit of the "American Dream" has caused an epidemic of stress, overwork and excessive indebtedness, in my opinion. We want big houses, expensive cars, big screen TV’s and all the latest toys and gadgets, hoping that having all these things will make us happier. The media, of course, constantly bombards us 24/7 with advertising messages reinforcing this idea.

Face the reality of your debt now

Wednesday, 15 July 2009 00:01 Atty. Raymond Bulaon

A CLIENT of mine said he never saw it coming. Everything he ever wanted in life, he always purchased on credit. The "pre-approved" credit cards just kept coming in the mail and he never said NO to any of them. Buy now and pay later, why not? As long as they allow you to pay in installments, just charge it. When the time came he was able to save a little bit of money for a down payment on a house, he purchased the biggest house he could buy because the bank gave him an "interest only" loan for 5 years. Of course, he also had to buy a nice car to go with the house- it looked great in his driveway. He thought he was living the "American Dream".

Everything seemed OK until one day, my client lost his job of 15 years. He thought he "owned" everything he had until he found himself scrambling just to keep from losing it all. That’s when reality hit him like a ton of bricks- He realized that he actually owned nothing and that the banks actually owned everything. The moment he could no longer pay, they took everything away.

Bankruptcy or debt settlement?

Wednesday, 08 July 2009 00:14 Atty. Raymond Bulaon

MOST people are unaware that credit card companies will negotiate with you if they believe that it is in their best interests to do so. Many times you can negotiate a reduction of your interest rate and elimination of late charges and annual membership fees. When you are several months behind in payments, they may even agree to take less than what you owe them. The fact that the account is already in collections and/or a lawsuit has been filed doesn’t even matter.

Debt settlement may be a good idea if bankruptcy is not a good option in your situation. Certainly there are situations where bankruptcy may be avoided and debts can be settled using the least amount of money possible. It is a known fact in the collection business that as time goes on, the ability to collect on a debt diminishes. Thus, the longer your accounts have been in collections, the better your chance of settling your debts for a significantly reduced amount. For example, it is my experience that creditors will settle for about 40-60 cents on the dollar.

Can the Obama housing plan help you keep your home?

Tuesday, 30 June 2009 21:08 Atty. Raymond Bulaon

YOU’VE probably heard about President Obama’s housing plan to help the housing market back on track. The goal of the program is to help up to 9 million families facing foreclosure to either refinance or modify their mortgages. The Treasury Department has provided the details about how the plan works. You can go to www.makinghomeaffordable.gov for more information.

The program is in 2 parts. One part of the program is designed to help homeowners whose mortgage is owned or backed by Fannie Mae or Freddie Mac to refinance into a fixed rate. If you owe more than the value of your house, you may still qualify but your new mortgage cannot exceed more than 105% of your property’s current market value. Here in California where real estate values have plunged to as low as 50% of the current mortgage amount in certain areas, it would be difficult to qualify for refinancing under this program. This article ONLY discusses the Loan Modification part of the program as this is what most people are interested in.

Is bankruptcy the right choice for you?

Tuesday, 23 June 2009 22:53 Atty. Raymond Bulaon

ARE you currently overwhelmed with debt problems that you can no longer handle on your own? Thinking about filing for bankruptcy but are afraid to make a decision? Do you feel stuck and paralyzed in your situation, unable to take any action? Maybe just thinking about your situation gives you this sick feeling in your stomach that won’t go away. Is there a way out of your seemingly hopeless situation?

A famous author said: "It is in those moments of decision that our destiny is shaped". I think what this means is that the decisions we make in life are so powerful and regardless of whether you realize it or not, you are constantly creating results in your life, good or bad, at every single moment. You are the creator of your destiny.

When your home is ‘upside down’ do you keep it or walk away?

Tuesday, 16 June 2009 22:04 Atty. Raymond Bulaon

QUESTION: "My husband and I purchased a home several years ago but now, the value has dropped significantly and we owe a lot more than our home is worth. We also have an OPTION ARM and the payments have increased drastically, making it difficult for us to make the monthly payments. Of course, this is our home and we would like to keep it as much as possible but does it even make sense to keep it at this point? Or should we just walk away?"
I get asked the above question daily. In the wake of the current mortgage crisis, a lot of people are finding themselves running out of options besides foreclosure. In cases where there is a possible foreclosure deficiency (usually a 2nd mortgage), a lot of people also find it necessary to file bankruptcy. Is there a universal answer to the above question?

Read more...

Too much debt making loan modification difficult or impossible?

Tuesday, 09 June 2009 23:15 Atty. Raymond Bulaon

AS the mortgage crisis continues unabated, more and more people facing foreclosure are also being forced in to bankruptcy. It appears that a lot of homeowners who couldn’t make their mortgage payments have been tapping into their credit cards and other personal lines of credit to get the cash that they need. Once the credit cards and the credit lines are maxed out, of course, these people find themselves in an even bigger financial mess. According to a recent survey, credit card debts are at an all-time high and if this trend continues, I predict that bankruptcy filings will continue to rise as they have over the last 3 years since the new bankruptcy laws were passed.
Read more...

Bankruptcy: Emergency help for the financially sick

Tuesday, 02 June 2009 23:24 Atty. Raymond Bulaon

MOST debt problems don’t go away. They are there when you go to bed at night and they’re still there when you get up in the morning. They can cause a lot of ulcers, sleepless nights, stress and even physical sickness. As a bankruptcy attorney for the last 10 years now, I’ve seen the devastating effects of serious debt problems on people’s personal lives, their businesses, their families and their marriages.
Facing serious debt problems causes severe anxiety and fear about the future. What will happen to me and my family if I get sued by creditors and get my wages garnished? Will I have enough to buy food, pay my rent or mortgage and continue to support loved ones? You may experience feelings of guilt, anger, loneliness and depression.
Read more...

Should I save my property or let it go into foreclosure?

Tuesday, 26 May 2009 20:31 Atty. Raymond Bulaon

1917

1

2

3

4

5

(1 vote, average: 5.00 out of 5)

A LOT of homeowners who are behind on their mortgage payments are asking me: Is it better to lose your house to foreclosure or file for bankruptcy protection and try to save it? What are the effects of both on my credit? Will I be able to buy another home again with a foreclosure or bankruptcy on my credit record? Of course, these are important questions to ask yourself if you are in this situation. But I think that the more important question to ask is: What is the most realistic option I have under the circumstances and do I have any contingency or back-up plans if things don’t work out as expected? In other words, hope for the best but prepare for the worst. As everything in life, there are no guarantees.
Read more...