Mortgage Foreclosures are Falling, but Real Estate Sales Have Not Picked Up

Does anyone know? Attorney Melchionne was interviewed by the Republican-American recently with this quandary, but it is what they left out that tells the story. You can see what they printed here.

But what was said was more expansive. The banks are running out of homes to foreclose with more than 5 million families losing their homes since 2007. Those who have not yet been foreclosed are the lucky ones who still have a job and who may not have a mortgage. Fully one-third of American homes have no mortgage. Another third have stable jobs.

Yes, we have reached the bottom, but the question now is how long do we stay here?

The unemployment rate is falling. A good part of that drop is caused by people falling off the rolls because their benefits have run out. Others have gotten jobs, but they are neither stable nor high paying. Another segment of the population has yet to enter the job market because they haven;t been able to find a job since getting out of school. They don’t count as formerly employed since the have NEVER been employed.

The final nail in the coffin is the student loan mess. Since kids coming out of school can;t find good paying jobs, they can’t pay their loans. But worse yet, even if they could find a good paying and stable job in their field of study, they have student loan payments that amount to a mortgage payment in size. So what’s it going to be, a mortgage payment roa student loan payment. You know the answer to that question.

So until student loan problem is resolved and the job market recovers, we are stuck at the bottom. Who knows how long it will be. And here’s to hoping that the ‘bottom’ doesn’t fall out.

How Long Does Bad Credit Stay on My Credit Report?

This is a question that comes up regularly in my office and it recently turned up on If you are bad with paying your debts on time, that history stays on your credit report for a full seven years. So Gerri Detweiler asked me that question.

Why seven years? It turns out that there is no particular reason other than a compromise between the Senate and the House when the Fair Credit Reporting Act was being drafted was back in the late 1960’s. It has nothing to do with the Bible or the Statute of Limitations for collection of a debt. It was just an arbitrary time period picked by elected representatives as a “reasonable” time.

Is it reasonable? The answer is that your history is in the past. If you do things to manage your debt better now and pay everything onetime, most lenders will take that inco consideration. While no one knows exactly what does into your credit score, time has to be a factor.

Can a Debt Collector Grab My Bank Accounts?

Recently, Gene Melchionne was interviewed by writers for on the question of seizure of bank accounts. The interview was later picked up by MSN Money and Yahoo Finance because of the importance of the question.

When collecting delinquent accounts, collectors will many times claim to be able to seize bank accounts for the payment of the debt. It’s not so easy. But it is possible. In most cases, you need to be sued first, unless the bank account is with the same institution where the money owed. Read the article on for more.

Gene Melchionne Interviews Gerri Detweiler on Podcast

IF you aren’t listening to the Money Go Roundtable Podcast, you should. Recently, Gene Melchionne interviewed Gerri Detweiler of Talk Credit Radio and about credit reports. IF you want to know about credit reporting, credit scores and what it all means, take a listen to this podcast episode.

Law School Grads Looking At Bankruptcy

This week, the Connecticut Law Tribune published an article on student loans, law schools and the current economy. It is no mystery that recent graduates from colleges are having a hard time finding a job. Compound that with the expense of attending graduate school for an advanced degree and then pile the time and money spent on something like law school. It is no small wonder that law school graduates are both having a hard time finding a job AND paying their student loans. The result? Yound lawyers looking at filing bankruptcy.

The author of the article turned to well-known
Student Loan Lawyer, Josh Cohen, and Attorney Melchionne for an insight on both the scope of the problem and the remedy. The sad end to this story is the same for most young people struggling with student loans; there is no escape in bankruptcy for any student loan. For more, see the story here.