Many More Going Bankrupt

Many More Going Bankrupt

www.boston.com

Bankruptcy filings have surged 22 percent in Massachusetts this year, as more people are unable to afford their rising mortgage payments or refinance their homes to pay bills, according to court filings and bankruptcy attorneys.

Massachusetts filings in US Bankruptcy Court increased to 2,493 between Jan. 1 and March 5, from 2,039 during the same period a year ago. Filings were also up sharply for all of 2007 compared with the previous year, despite a 2005 law change that was intended to reduce the number of bankruptcies.

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This is just a harbinger of the coming crisis.

www.boston.com
(visit the link for the full news article)

Well of course the housing market is slumping it has just gone thou a boom and the market is correcting itself . Although housing prices will never be as cheap as they use to be the market was still artificially high. Now is a great time for first time home buyers to enter the market

If you don't follow these guidelines when buying a house chances are you will run into trouble .

1. Bear in mind that interest rates will change and may be higher after your fixed home loan needs to be renewed.
   
2. Read the small print and make you understand what you are signing up for.
   
3. Avoid small private lenders . Mainstream or larger banks are more likely to work with the customer if they encounter unforeseen circumstances . Larger banks are less likely to be effected by economic rough times.
   
4. Can you afford to meet mortgage payments if the unforeseen happens and you get some lee way from the bank ?
   

All of this can be summed by saying don't live beyond your means.
We are in a period of economic slow down and as usual people who live above there means have been caught out this is hardly the end of the world.
If you cant afford a house don't buy one.

[edit on 13-3-2008 by xpert11]

[edit on 13-3-2008 by xpert11]