New York State is far from immune to the problems of bankruptcies and foreclosures. Even the up market areas of Nassau and Suffolk Counties are finding this to be a growing problem.  This is a problem that is hurting mortgage companies and banks, as much as it is hurting the financially distressed home owner. When a foreclosure occurs, no one wins.

That’s why financial institutions are now actively pursuing the option of mortgage modifications as a means to allow people to retain their homes. Mortgage modifications are meant to reduce the financial burden on the homeowner and allow him to continue to remain in possession of his property, while paying off the mortgage at a more convenient rate. Often the total amount of the outstanding balance is also reduced to make the payments more workable. This is not charity on the part of the financial institutions. Mortgage modifications may result in a lowering of their profits, but a reduced profit is better than no profit or the loss you would suffer when a foreclosure takes place.

It is important for homeowners to understand that mortgage modifications are a business practice and not just blindly accept whatever restructuring the financial institutions offer. This misplaced sense of gratitude that homeowners show when offered mortgage modification is something that finance companies use to their advantage.

Always remember the mortgage modifications are being offered because it is in the interest of the finance companies not to foreclose on the property. When a foreclosure happens you both lose. If you are looking for or being offered mortgage modifications, you need to be clear of what it is you are getting and what is expected of you. This is business, so don’t be afraid to negotiate hard.

Mortgage modifications can com with complex issues and many people in the Nassau and Suffolk areas are contacting Long Island foreclosure lawyers for advice on the mortgage modifications being offered to them by the financial institutions. It is not just a case of trying to prevent foreclosure for Long Island residents. The financial institutions want to salvage as much for themselves as they can from the situation and while the mortgage modification terms may be better than what you originally had, they may not be as good as what you can negotiate for.

Consulting a Long Island foreclosure lawyer will enable those involved in the mortgage modification process to make sure that the new deal they are getting is the best one available and that there are no hidden issues that could cause problems later on.

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What caused our present financial crisis? Bad mortgages that turned sour, which were followed by a huge wave of foreclosures.

If you are one of those who have been badly affected by what has happened to our economy, it’s time to take inventory of your financial position. How safe are you and how strong are your long term resources? No one can say with any certainty when things will begin to improve and even when they do, how long it will take for us to get back to the levels of prosperity of years past. Maybe we should not reach those levels – at least not in the same form. Perhaps what we had was built on quicksand. It would be a mistake to repeat the same process all over again. And this does not apply only to banks and Wall Street. It applies to individuals too. It’s time to look at long-term security, no matter what the short term problems may be.

Suffolk County and other prosperous regions in and around New York are seeing a rise in the number of people who are contacting them. These people may not be in any immediate danger of either foreclosure or bankruptcy, but they are engaging in long term planning and are factoring in these possibilities, so that they are prepared for any eventualities.

Being realistic about the problem of foreclosures makes sense. Despite the government’s well-intentioned promises to find ways of protecting the homeowner, the realities are that nothing much is happening or can be expected to in the immediate future. For example –the Bush Administration’s Hope for Homeowners program promised last year to shield 400,000 families from foreclosure. The actual results as of last February were a mere 25.

Understanding bankruptcy and foreclosure process is critical to long term planning. Bankruptcy is not the end of the road – there’s quite a bit of protection for retirement and some other forms of savings. Getting the right advice well in advance and modifying financial plans to take into account various scenarios is the key to long-term financial security.

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Big Oil has always been a popular whipping post for many of the economic ills that have affected this country over the years. But what has happened over the last one year has not been their fault, sure, they made most of the easy money that was available, but then who didn’t? True, the oil companies made huge profits when they could, but this was the American way and while we grumbled at the prices of gas, that was about all we did.

Today, we have the lowest oil prices we have seen for years. And they look like they are going to stay that way for some time. There’s nothing the oil companies can do about it. Put up the prices even by one cent and the demand will drop in a way that will offset any gains they could have made from the increase.

In a way, low oil prices are not good for us. The reason the prices are low is because of a world wide recession, the demand has fallen to level far below the supply. Producers around the world have had to cut back on production to try and keep oil prices at some reasonable level. I guess you could say the current prices of gas are reasonable.

But is this low price helping us? Sure, it means that less money is flowing into the gas tank and out the exhaust. And in today’s conditions any savings is welcome. But the savings are not enough to ease the pressure on the average American family who are faced with lowered incomes, lack of job security and a fear of what the future will bring. A saving of even $100 a month on gas expenses will not help in a major way towards paying off a mortgage or averting bankruptcy.  In New York, bankruptcy attorneys in Suffolk County and Nassau County are reporting a noticeable rise in clients requesting financial hardship assistance.

We have a new President and he is urging us to keep the faith and hold on until things start to improve. Absolutely! President Obama, despite his recent slip in the ratings, is still looked upon by most Americans as the man who can lead the country out of the morass we are in.

The President has been as good as his word and has set the ball rolling with a $787 billion stimulus package, a bank rescue plan and a housing program which seems like a great start. But the question that is causing much debate is, whether this is the right way to go about it and if the funds are going to be properly utilized. We are still hearing of executives padding their paychecks with money that is coming not from their profits, but from handouts given by the government, or, in other words, the taxpayers. They are still flying to meetings in their luxurious corporate jets. No one is saying that commercial activity should stop or that American industry should appear before the world dressed in rags. But have the people who caused this problem in the first place learned their lessons?

Even as the measures were announced, more banks appeared to be on the verge of collapse. Federal Reserve Chairman Ben Bernanke recently stated that we probably would not begin to see the first signs of recovery until sometime in 2010.

While no one expects a miracle, the question many working class Americans are asking themselves is how long can they hold on? Economic recovery for the country may take a year or two, but they can’t afford to wait that long for their personal finances to improve. The growing number of people you find in the waiting areas of foreclosure attorneys in Nassau County, and bankruptcy lawyers in Suffolk County and so many other places both in and around New York as well as other places in the country are evidence of this.

But the fact that these folks are facing up to their financial problems and getting legal advice on what actions they can tale to protect themselves and their families when faced with the prospect of financial disaster is a positive sign. Things will improve; there is no doubt about that. But until the tide turns, wise people in the Greater Long Island area will be consulting foreclosure & bankruptcy lawyers.

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The major story coming out of Washington right now is the failed bid to bail out the “Big Three” automakers. There are numerous points of view on the issue, but it seems that much of the debate is being driven by emotion at the expense of reason. This is not surprising- the idea of giving more of their hard earned tax dollars away to failing corporations is extremely repugnant to people barely avoiding foreclosure in Nassau County. What we must do in order to make the best decision for the country at large is to step back and really examine the consequences of letting these companies fail.

Allowing the three largest domestic automakers to close their doors would have an enormous and immediate impact on the national economy. The amount of jobs that would be eliminated overnight could range into the millions. Not only the workers at the plants in Detroit would suddenly find themselves without a source of income, but also all of the workers at the plants that supply parts to the larger factories. These smaller factories are spread throughout the country, and in many cases are the major employers in their immediate area.

As the parts these plants make suddenly become unnecessary, so too does the need to deliver them. Any trucking or shipping company that does business with domestic automakers in any capacity would likely find themselves unable to keep their current workforce. Maintenance of delivery vehicles would also become a less sought- after commodity. Once you begin to extrapolate the immediate impact in this way, it is easy to see how widespread the problem would become if these automakers were to shut down.

The possibility of these newly unemployed people finding other employment would also be extremely slim. The local economies around these auto plants basically depend on the majority of the workforce in that area having enough disposable income to sustain them. If one auto plants lays off 50,000 workers, that is 50,000 less people who will be going out to eat, shopping, going to the movies, employing domestic help, etc. Any industry that depends on well-paid workers patronizing their businesses will suddenly be cutting jobs as well. With 50,000 new workers trying to find work in a town that is shedding jobs, the prospect of success is close to zero.

A drastic and immediate increase in unemployment during a period in which the economy is already shedding jobs is a disaster in the making. If these automakers are forced to close, the people that they employ are likely to soon become the newest beneficiaries of unemployment insurance and other government assistance. State governments where newly defunct plants are located will face major budget shortfalls as their income base dries up. The Federal government will then be increasing assistance to states and individual workers while also facing a vastly decreased influx of tax dollars. Since many of the domestic automakers also supply parts for military vehicles, the Federal government would also likely have to create a new infrastructure to address this shortfall. Increased expenditures for unemployment, welfare, state assistance, and replacement of necessary military supply chains, all while facing a shortfall in tax revenue, could end up costing the government far more than the proposed auto bailout. We need to fully examine all of the facts, and not simply act on anger or disgust when addressing this important issue.

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Month after month of non-stop battering, each time some optimistic spark deep within produces a faint glow of hope that it can’t get any worse, something new goes wrong.  This month consumer confidence was like a sky diver with a defective parachute. The reason? More bad news of increased job cuts, and decreased retirement accounts.

In fact, there was no good news of any kind for the short term. The best news, if you can call it that, was from the Fed which said that the economy is undergoing a “severe contraction” that would last for the first half of this year.

All the major retailers reported bad fourth quarter results, and home prices recorded the sharpest drop ever. Search where you will, there was no good economic news anywhere. The best news available was actually the absence of bad news – gas prices did not show any indication of going up in the near future.

In New York, the Conference Board advised that its Consumer Confidence Index which showed only a small drop in the December - January period (perhaps because of the holiday mood) experienced a sharp drop of 12 points this month to currently rest at 25, far below the projected level of 35 that experts had predicted. Nassau County foreclosure lawyers say they may be able to help stop or prevent foreclosures, or relieve financial burdens if they are called in to help early enough. It’s very important not to delay asking for help from a bankruptcy or foreclosure lawyer.

Foreclosing on a mortgage is a major step for any family and the fact that foreclosure attorneys are being consulted in this volume only substantiates the fact that many families have reached the brink with literally nowhere to turn.

Most analysts say that looking ahead, at least in the short to medium term, increasing worries about business conditions, corporate earnings and employment security are creating a vicious cycle of steadily reducing consumer spending which is exactly the opposite of what is required to kick start the economy.

Consumers are also scared by the free fall in home prices which have plunged by over 18%, the largest fall in 21 years. Today’s property prices are what they were in 2003.

While consumer confidence will naturally be affected by what has happened since last September, what is worrying is that even optimism for the future was absent until Obama took office. It surged then, but has already started to drop because illogical miracle solutions that people hoped would keep them away from bankruptcy law firms in Suffolk County and other parts of New York, did not materialize.

There may be hope for those who are able to hold on for a few more months may not see a return to prosperity, but at least a light at the end of the tunnel.

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Experiencing a financial crisis can be embarrassing. Often we might try to hide it or otherwise compensate for it in some way: some people will do just about anything to avoid defaulting on their obligations. The fact of the matter, however, is that more and more people are failing to maintain their financial status; the global market downturn is having a monumental impact on us all. Indeed, America is encountering an unprecedented wave of credit defaults, foreclosures, and bankruptcies. For some, it might help to know that you are not alone- even the most financially thrifty and responsible persons can be deeply affected by the turmoil in this unheard-of worldwide economical sandstorm.

The year ending 2008 is expected to see as many as 2.2 million home foreclosures, which was the same amount for 2007 when foreclosures were up by an extraordinary 75%. That is an enormous percentage of the total homeowners in the country. In fact, during a particular 6 month period in 2007, foreclosures numbered 200,000 or more every month. Because there was a record period of growth, there will now be a record period of decline that will impact people from all walks of life. So many homeowners are struggling that the government has passed legislation that will prevent people from losing their properties in the light of this worldwide crisis.

Bankruptcy filings are up as well- by more than an astonishing 30%. By the end of 2008, it has been projected that 1.2 million bankruptcies will have been filed for the year. This is occurring even with the new bankruptcy laws enacted in 2005 that were designed to make it harder to file bankruptcy. In fact, there are so many new bankruptcies being filed that it has created a nearly overwhelming strain for bankruptcy lawyers and clerks- perhaps some of the only people in the world to be benefitting financially from this economic meltdown. Their newfound business will be bitter-sweet, but the fact remains that their services are needed now more than ever. As if to illustrate this point, bankruptcy filings are especially high in the areas hit hardest by the housing slump- California, Florida, and Michigan all report filings up 30% from this time two years ago, and those numbers are expected to increase for some time. Fortunately, many bankruptcy proceedings are allowing consumers to keep their homes, thus alleviating the number of foreclosures the country is currently experiencing.

Last quarter, 1% of all credit card accounts were considered seriously delinquent- 90 days or more past due. When you consider that the total credit card debt in this country is currently 15.4 billion dollars, that represents a huge portion of balances that are technically doomed to default. Last month alone, credit card debt rose by 11.3% - an unexpected increase, but one that has been trending with similar increases for several months now. This means that consumers are using their revolving accounts more to maintain their basic expenses, especially now that funds from refinancing mortgages have virtually evaporated. This is dangerous territory from a credit standpoint, as the situation will almost surely result in more people filing for bankruptcy protection.

The point is that many people are struggling. Even responsible people who have always been very careful about their finances are being included in the ever-increasing surge of foreclosure notices, collection activities, and bankruptcy filings. But you should know that you have options. There are ways to get help, and there are things that you can do to pull yourself up from the drudgeries caused by the global financial catastrophe that we are all experiencing. Bookmark this blog, as we will discuss in clear terms how to manage, utilize, or avoid any of these predicaments.

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It’s not just a problem here in Nassau and Suffolk counties on Long Island, NY. All across the country, Americans are feeling the strain of an economy that is attacking their finances from all angles. Our system is not diseased by defaults, bankruptcies, and foreclosures- those are merely the symptoms of the illness. The real disease is the growing and malignant cancers of excess debt, and increasing expenses. While everyone might build their debt in their own way, we all typically suffer in the same ways when expenses increase. It’s one thing if one or two expenses go on the rise, but when all of the major items that we need to survive in this economy increase dramatically and simultaneously, it means trouble. For these reasons, is it any wonder that we are experiencing this dismal spate of foreclosures, defaults, and bankruptcies? What has happened? Let’s take a look:

The most significant expense-related problem to occur for most Americans was the dramatic increase in gasoline prices. This was caused by an increase in demand, coupled with the decline of the dollar. Very recently, we have witnessed the highest per-barrel cost and the largest percent of cost increases in history. This unprecedented occurrence nearly doubled the cost of vital items and services. As most Americans travel more than twenty minutes to get to work, our cost to actually go to work increased substantially. We went from unrestrained travelers, to citizens who count every mile, and every dollar.

Groceries and pet food have also experienced huge price increases. This has been caused in large part by the excessive cost of transportation. Most of the trucking industry, which is essential for consumables to get where they need to go, runs on diesel fuel, which has seen monstrous price hikes. In addition, the surplus demand and correlating price increases have cause corn and wheat to exponentially increase in price in a very short period of time. The fluctuation of these two items alone has served to severely skew the national average retail food costs.

Heating costs have gone up in direct correlation to the price of oil. Home heating costs were already at record levels when the economy began its more pronounced nose-dive, and now many Americans are wondering how they will afford to keep their homes warm throughout the long winter that lies ahead. To exacerbate this problem, the high cost of delivering energy sources has also risen.

The increased cost of doing business has hit harder than anyone might have imagined it would. The frozen credit market, and the housing crisis has served to make loans nearly impossible to obtain, and when extended have abnormally high interest rates. The types of loans that provide the capital for day-to-day business operations in America are a critical part of our economy. For this reason, we are feeling the effects of the increase of this particular expense rather sharply.

While we obviously feel the pain when the cost of large items rises even further, we pay special attention to the cost of small things- the little everyday things whose costs we don’t normally take into consideration. The cost of coffee and doughnuts in the morning, an espresso in the evening, renting movies or eating out, buying a pack of gum or a newspaper, internet and utilities- nearly everything has increased. In reality, it is through the small things that we truly can define how deep this problem actually lies.

These monumental price hikes are causing many to go down the roads of foreclosure, bankruptcy, and default. While it may seem overwhelming at times, we can adjust and pull ourselves out of this mess, though it may require some time. Bookmark this blog, and in the next installment, we’ll discuss ways Americans are decreasing or even eliminating the above listed expenses.

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Okay, we all know we do it: as Americans, we get pretty set in our ways.  We are accustomed to our particular ways of life, and we notice and raise heck immediately when a change is made.  While at first this might seem like a detrimental factor, it is probably something that keeps our country mostly honest and successful.  We all want the good life, and we’ll work very hard to achieve it; whatever that means for each of us as individuals. With that said, it is surprising that more Americans are not aware of the sneaky little marketing and packaging ploys that are being enacted all across the country.  Since our economy began its slide down this long economic hill, some practices have been established that are shady to say the least.  With all this talk about bear markets and bull markets, elephant parties and donkey parties, we’re missing what the wolves are doing. 

Let’s start with the cost and packaging of food as one example.  The wolves know that Americans notice if the cost of groceries increases even nominally.  We depend upon steady prices in order to maintain our budgets.  So when the cost of transportation and other services went up, grocers knew they had to pass on the increases to consumers.  But they had to do it without anyone noticing, and they knew precisely how to do it.  You know the 24oz box of cereal you buy for around $4?  Well, the packaging looks the same, and the price is the same, however, guess what?  It’s now only 20oz.  There’s no notice of this, of course.  Just a subtle change that causes you to wonder why it seems like the box is empty sooner.  But hey, you’re paying the same amount, so for the most part, you don’t notice.  The problem with this complacency is that the grocers have done this just about all groceries.  The normal content of just about everything has been reduced, while the price stays the same.  So as a whole, you’re taking a pretty big hit when you go to the supermarket, considering that you’ll be there again sooner than expected. 

This is not only occurring in the supermarket.  In the car sales industry, there are similar tactics at work.  Take for example traditional deals like $2000 cash back on the purchase of a new vehicle.  This has been a standard incentive at most car dealerships for quite literally decades.  But suddenly, the deal has changed.  That cash back award has been changed to a $1500 gas card.  The wolves figure that because gas is such a prominent topic today they can appeal to our desire to obtain the most “bang for our buck.”  They count on the fact that we won’t consider that we’re getting $500 less; that if we could still get the previous deal, we could buy $2000 worth of gas.  In this, the wolves are right, because very few people are really noticing.  In fact, gas cards are quite popular incentives with many major and minor purchases now.  So, before you lay your cash down or swipe your card, take a look at the content of what you are purchasing, and look for changes.  It might not make you happy, but at least you will be aware of what’s happening, and be able to account for that in your budget.  This simple step of awareness can be quite beneficial.  Especially for people in high cost of living places like New York, it could go a long way to preventing financial trouble such as a bankruptcy and foreclosure.

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The economic woes of the United States have been at the forefront of the minds of nearly everyone. Magazines feature countless articles about the deteriorating economy, blogs express frustration and opinions on the bad financial decisions made on Wall Street, and the television reminds us daily that things are going to get worse before they get better. Each month, more and more people are seeking the advice of foreclosure attorneys in Nassau County and Suffolk County. Companies are folding, and jobs are being lost. The price of practically everything is steadily increasing. As Americans, most of us are very unaccustomed to a restricted or severely limited budget. For this reason, there tends to be this general feeling that things are very bad right now in our country. However, this is not the case in reality, and with the holidays upon us, we could all use a reminder of what we still have.

In the next few days, families will be gathered all across the country. We’ll have lovely dinners together, gifts and smiles will be exchanged, and there will be plenty of wonderful holiday parties to attend. We’ll do what we do every year: we’ll stuff our faces with turkey and ham, candies and cheeses; we’ll knock back a few glasses of eggnog, and we’ll spend a little bit more than our budget might allow on gifts for those that we love. And even though we know it will hurt the wallet and the credit card later on, we will take great joy in doing it anyway.

While all these joyous and fun activities are occurring, it might be wise for us to step back and examine what we really have. For most of us, we have our families, and we have our health. We still drive our cars, talk on our cell phones, and retire each night to watch cable or satellite television. We still eat well. Even those whose homes are foreclosed upon have somewhere to go- there are family, friends, shelters, and inviting places all over the country that will house and feed those in need. We still eat out, and the drive-thru lines at most fast food restaurants are still crowded most of the time. We take warm showers and baths; we sleep in warm beds and snuggle with our pets and loved ones. We email and chat, we video-share and play games, and we listen to music. We watch movies and cook popcorn with extra butter; we go out every so often and have a beer or a cocktail. When we see the Salvation Army Santa Clause we drop our spare change in his bucket.

The point is that yes, times are tough. But are they really so bad? We still have just about everything we had before. And if we lost something as a result of all of this, then thankfully we live in a place where we can rebuild if we have the ambition and the drive to. Because the truth of the matter is that we’ve still got it pretty good. All over the world, children and even entire families will suffer and starve while we celebrate with those closest to us. The wars that rage across the world do not stop while we enjoy our holiday fun. So perhaps this holiday season we can all give ourselves a gift that will make us feel much better: we can dig a little deeper in our pockets for charities, and we can realize that we’re going to be just fine.

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