Bankruptcies Surge in Massachusetts as Families Try to Save Their Homes
There has been a surge in bankruptcies in Massachusetts as families try to save their homes from foreclosure. The attorneys involved in the bankruptcy process say most of those coming in are families with adjustable loans who are now unable to make their mortgage payments and pay their other bills. In an effort to save their homes they are filing bankruptcy to negate the rest of their debts.
Local bankruptcy attorneys said the reason for the bankruptcy surge is simple: Homeowners are struggling with high subprime and adjustable-rate mortgages, as the housing market tanks in some parts of the state.
“It’s almost all (related to) mortgages,” said William McLeod, a Boston bankruptcy attorney who says his practice is now going stronger than before the 2005 changes to the nation’s bankruptcy laws. Those changes were supposed to reduce the number of people seeking bankruptcy protection. via BostonHerald.com.
I wrote back in November, 2005 that Massachusetts was especially vulnerable to a downturn as many of the residents were using the gains in housing as a bank account. Cash out equity was 14 percent of the disposable income in the state for 2004. Now we are paying the piper.
Great points Tom - the flavor of the day solution is only adding to the instability and volatility.
When Washington ...
I see it all too often where owners decide to be investors without understanding that tenants have rights. Its ...
cont from above post.....
please contact me via e-mail if interested in the home listed
above.
jonieckstrom@yahoo.com 
This is a topic currently being debated in our local Real Estate Board here in Toronto Canada. Online, we ...
A property management company should realize that most potential tenants now will have a foreclosure or bankruptcy on their credit....as ...
my boyfriend and i just fell for the scam ourselves, it's sad what they are able to do. I am ...
Now is an excellent time for business people to buy if they have decent credit (I did not say excellent ...
I just finished emailing some guy from "West Africa" who gave me the same exact bs. He even went so ...
Comment by John S on 3 August 2007:
I wish that more information was available to people that are in trouble. There is no reason to go to foreclosure or bankruptcy. Many are unaware that if you are really in trouble you can often short sell. It hurts the credit, but not like a foreclosure or bankruptcy. I was able to get out of my house without bankruptcy that way. You just have to be careful of scams.
http://www.shortsellhouse.com
Comment by Max Netten on 27 March 2009:
It is sad that people will always live on the edge. Never a spare penny put away, always consuming all the value from their houses so if times get a little tight they have to scramble into bankruptcy.
Another failure of our educational system to teach the basics of life. Personal finance and sex education.