It is a last resort for some of our clients, but I pride myself on saying that my clients don’t go to bankruptcy unless I tell them this is their only option.
Life and Finances can take tricky turns that most don’t understand the absolute mess they can end up in.
This particular case had our client, and soon to be Ex-Wife, moving from California to Texas during the recent mortgage melt-down. The home in California had a First and a Home Equity Line of Credit (HELOC). An attempt was made to Short Sale the property without success and went to Foreclosure. The Foreclosure did not heal the HELOC of $105,000 keeping this liability alive. Before the Foreclosure completed, this couple managed to purchase a home in Texas. This was financed with a First and a Second Mortgage; he was making good money! The recession took out his good paying job, and soon after, the marriage. The Ex-Wife got the house, etc. She almost lost the house, and because his name was still on the notes, his credit was hit too!
Between the two properties, and a few other liabilities (debts) reporting on his credit, he was responsible for over $450,000, most of which he had no (zero) control over. This client had no idea how deep in financial trouble he was, and his annual salary had dropped to only $35,000 when he came to see me.
I am very pleased at the outcome for this client, and he is so grateful that he posted the following review:
Thanks to Steve, I was able to get my life back!!!! After going through a divorce and the loss of income due to the recession, my credit was in bad shape. I was referred to Austin Credit Group to see what could be done to get it back where it once was. After reviewing my credit reports (thought I knew how and what I was reading) he gave me some news that completely shocked me. There was a huge amount (I thought was resolved in the divorce) that was in collections and about to ruin my finances and credit for good. After getting my stomach back to where it belonged, Steve explained what my only option was, Bankruptcy! I never had even considered that to be an option. After explaining what would happen and that I was only the second or third person that he had ever had to go this route with, he referred me to an attorney. When the bankruptcy was finalized, I returned to see Steve. He mapped out a course of action to get my credit back on track. I have since raised my scores considerably! If it wasn’t for Steve, I would have been in a financial disaster for the rest of my life. Due to my experience, I highly recommend going to see Steve at Austin Credit Group! I am very grateful for what he has done to help me. If you have credit problems or even any doubts / questions, GO SEE STEVE!
I do not believe my competitors would have recognized this problem for what it was. Approaching this case as a credit repair would have only made matters much worse, and even more difficult to clear up. My engineering background gives me a completely different perspective on credit and finance than any of my competitors.
Austin Credit Group’s Profile Review Program is reasonable, discounted if you or your spouse is a Veteran or active duty (see the coupon at this link). Our review and counseling will assist you in raising credit scores as quickly as possible. But you can start here with our “Most Under-Appreciated Credit Score Killers!”