Local Governments Take Action Against Bankruptcy
The Beatles insisted that they didn't "care too much for money," because money couldn't buy them love. That's all well and good for rock superstars with millions in the bank, but for the rest of us, it's a different story. And when potential bankruptcy enters the picture, money starts to look better and better.
With the rising costs of adjustable rate mortgages and the resulting difficulties in paying the various bills each month, many American families are becoming familiar with matters of bankruptcy and foreclosure. Unfortunately, what Americans aren't familiar with is which kind of bankruptcy (chapter 7 bankruptcy or chapter 13 bankruptcy) would best suit them, how to prevent foreclosure, or how to save their homes.
Connecticut's Eyewitness News has published estimates that as many as 140 subprime lenders have gone out of business, had serious layoffs, or declared bankruptcy in the past year, leaving many families unsure what to do and uncertain if they'll be able to save their finances or their homes.
Fortunately, one Arizona town has decided to take action. Surprise, Arizona is reportedly offering a course to educate its residents about how to handle the rising costs of home ownership and how such costs will impact their financial situation.
The course is one in a series of "financial fitness" classes offered by the Surprise Community Initiatives Department each year, reports azcentral.com. In particular, the class will help students understand the implications of changes in the lending industry and offer advice about managing increasing mortgage rates to avoid foreclosure and filing bankruptcy.
According to the article, Surprise residents stand to gain from the educational endeavor because of the traditionally low housing costs there. Many homeowners bought in Surprise originally because it was one of the only affordable locations they could find.
Connecticut, too, has taken steps to aid its struggling citizens. That's good news, since foreclosures have reportedly increased 100% in the past year in Connecticut.
The state's governor has apparently put together a task force to find solutions to the financial and housing-related problems. Among other things, the state has created a hotline for potential victims of foreclosure. For those grappling with bankruptcy issues, the governor has recommended consulting with credit counselors.
But what does this mean for those who are facing foreclosure far away from Arizona or Connecticut? In general, the raised level of awareness is good news-with a little research, you may be able to find a program in your area similar to those discussed in this article.
In addition, President Bush has reportedly announced plans to change Federal Housing Authority regulations, basically to allow for the guarantee of some loans.
So, while facing bankruptcy or foreclosure may seem like a bleak reality, help is on the way.