On March 8, 2012 the Wall Street Journal reported that consumer borrowing continued to climb in January, driven largely by student loans. Household borrowing including not only student loans, but also car loans, credit card and other debt rose at a seasonally adjusted annual rate of 8.6% in January 2012. The journal reported that after years of trying to reduce debt, Americans are starting to borrow again. Barclays Capital economist Troy Davig was noted in the article as having said that the higher debt levels could make it harder for future first-time home buyers to make purchases.
For more information regarding the mounting student loan debt click on the following link:
Surprising to some, after a relative short period of time a bankruptcy may improve one's chances of obtaining a mortgage. Historically, most mortgage companies will not deny a mortgage application due to a prior bankruptcy, provided that it was filed at least 2 years prior to consideration for a new mortgage. The applicant must still qualify for that mortgage in terms of their level of income and current debt, but the bankruptcy at that point may not interfere with the approval of a loan to buy their own house. Furthermore, most people file bankruptcy because their credit picture is already in bad shape, so by eliminating one's debt through bankruptcy they only improve their credit worthiness and chance of realizing the American dream of home ownership.
For more information regarding the bankruptcy process, feel free to contact me.
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