Debt settlement: A precious way to financial freedom

Do you think that negotiating away your bills is the best solution? But I think that hiring an expert to help you is sometimes as good as doing it yourself.

If you are thinking to pay your due bills and looking for a great solution, there are so many you have to come across such as some professional offers from debt settlement companies who would offer you debt solutions for a fee. This might be sounding like a scam to you or probably, you would be thinking whether this is the breakthrough you were looking for or not.



To tell you the facts, opting for debt settlement is indeed, a greater option than at least filing a bankruptcy and is very much a legal solution. However, the catch is that debt settlement companies are not trustworthy; besides, their fees are overemphasized, generally. You need be on your guard.

Obama's mortgage plan - A hope for US real estate market

In United States of America, the ratio of owned property has always outweighed rented property. Prior to subprime mortgage crisis, the real estate market in USA favored investments. Therefore, buying a property was a good investment. The prevailing condition in the real estate market depends greatly on housing demand. A mild fluctuation can affect the housing market to a great extent.



Not only did the mortgage defaults attribute to the economic slowdown but credit card defaults added to the credit crunch too. Recent reports suggest that many consumers wanted to refinance their existing mortgage loans as the interest rates were low. The trend however subsided and the number of refinance application greatly reduced.

President Obama recently announced a new mortgage plan which hopefully will help the real estate market in United States of America to recover. Many have pinned their hopes on the new mortgage program. Under the new mortgage plan, it will be possible for homeowners to refinance their existing mortgage loans at a lower rate of interest, one of the key aspects included in the mortgage plan.

Real estate in USA before subprime mortgage crisis

The economy of United States has always been very buoyant due to a very high employment rate and low interest rates. A housing bubble was developing over the years, which ultimately burst giving rise to the subprime mortgage crisis.

Since getting credit and mortgage loan had become easier, the market condition was very ripe for buying a property. There were subprime lenders who gave loan to consumers who did not deserve to get one. Many real estate operators had left no stones unturned to manipulate eligibility documents for a mortgage loan.



People thought that they could refinance their mortgage in the event of default. As long as the interest rates were down, buying a property still seemed feasible. Instances of loan defaults increased and number of foreclosures escalated in an alarming rate.

Many companies had to close down their shutters due to bad lending practices. For e.g, BNC Mortgage LLC, a subprime lending unit of Lehman Brothers had to close down due to the economic slowdown.