Valparaiso Bankruptcy Law Blog

Economically, Indiana like the rest of the country is still battling back from some pretty hard times. The latest economic problems that a lot of people faced had to do with foreclosures. During this time, families were displaced from their homes at an alarming rate. This displacement occurred primarily due to unemployment issues. When someone is unemployed, it is very difficult for that person to pay the bills. A huge bill for many is the house note. Paying the mortgage on time allows people to stay in their homes. When the mortgage is not paid, families may have to deal with foreclosure.

In Jefferson County, which is in Louisville, Kentucky, foreclosure rates are dropping which is good news for homebuyers and homeowners. This trend leads people in the housing market, both realtors and buyers alike, to believe that the economic tide is finally changing with respect to the threat of foreclosure. In addition to the number of foreclosure being less, the mortgage delinquency rate in this particular county has also dropped. It is expected that this positive trend will extend through the region to reach Indiana residents.

Sometimes, due to unexpected life events, such as unemployment or expensive medical procedures, it can seem almost impossible to find a way out of debt and avoid the harassing phone calls from creditors. However, it is important to note that there are options out there. Readers in Valparaiso, Indiana, who are struggling with debt, may be interested to know about one man who is fighting back against creditor harassment by suing his creditors for illegal debt collection. For those who may not have the option of taking legal action, a Chapter 13 bankruptcy may be the solution to finally stopping creditor harassment.

The man who is fighting back is doing so by bringing legal action against two different banks. In both his lawsuits against the banks, the man claims that he was unfairly induced into two mortgages on his home because an appraisal that was performed misrepresented the actual value of his home. Now, as a result, he is stuck with two mortgages, which total more than the actual value of his home.

In today's society, a reality that people often have to deal with is credit card debt. Credit card debt, if not taken care of appropriately, can lead to bad credit and those two words together are dangerous. Delinquent payments are often the culprit for bad credit. No one wants to deal with the realities associated with bad credit because it can lead to a slew of other problems. Having credit card debt that results in bad credit can have a devastating impact on people's lives, but it is important to address these problems appropriately and not avoid them.

Most people have credit cards, and they use those credit cards for whatever they deem appropriate. Some use them for extravagant reasons and others use them for the day-to-day activities in life. Either way, using a credit card leads to a credit card debt which can lead to serious trouble if left unattended. Bad credit is the result of not paying the credit card bill on time. Delinquent payments and non-payments all contribute to the debt. Once a bill goes unpaid, the bad debt is reported to the credit bureau and this negative information is placed on your credit report. Bad credit information stays on a credit report for at least seven years.

Foreclosure is a legal process whereby a bank reclaims a property. When most Indiana residents purchase homes, they need to get a loan from a bank to begin with, since most don't have hundreds of thousands of dollars at hand. Therefore, a bank lends money to a buyer and this creates a borrower-lender situation. The money that is loaned out by the bank creates a mortgage that the lender needs to pay each month. A foreclosure occurs when payments are not made and the bank starts the process of taking the property back.

In normal foreclosures, the bank repossesses the home, title and all, and then puts the home on the auction block. Once this is done, the homeowner is no longer the owner of the home and foreclosure is complete. However, there is a new trend called zombie foreclosures, whereby the traditional procedure is not followed. With a zombie foreclosure, the homeowner vacates the home but the bank does not come in and repossess it. When this happens, the owners of the home find themselves responsible for the outstanding fees and property taxes associated with that property.