In a recent article in the Boston Globe, it was pointed out that rents in the Boston area hit record highs during the 4th quarter of 2011, which was pushed up by increased demand and declining rental units. More specifically, the average monthly rental price in the greater Boston real estate market jumped to $1,686. This increase was $86 increase over the past two years.

Additionally, adding to the limited supply, the vacancy rate dropped to a nine year low of 4% in the fourth quarter of 2011, according to new data from Reis Inc. Locally, rental prices have been climbing for almost two years, despite an extremely slow housing market. Many consumers have chosen to stay in apartments rather than buy a condo or house during the downturn, while others have been forced to rent because of unemployment or uncertainty about their job status, housing analysts say.

Eric S. Belsky, managing director of Harvard University’s Joint Center for Housing Studies recently was quoted “It shows there is strength in one side of the Boston housing market,’’ when talking about the increased rental fees.

Barry Bluestone, dean of the School of Public Policy and Urban Affairs at Northeastern University, said government officials, universities, and developers need to work together to produce more affordable rental housing. However, for those who are in a position to either rent or buy, it would seem now is the time to take advantage of the rising rental fees, and purchase a home. With the rental market increasing the way it is, it may even be a good idea to look for a duplex or home with an in-law unit and get into the rent game yourself.

There are no shortages of alleged “experts” out there who will tell you how to use coupons. The concept has really hit the main stream. There is the Learning Channel’s Extreme Couponing show. Recently, I was even watching CBS’s “Two Broke Girls” television show and they were making a joke about getting “free money” by using coupons. However, the real trick seems to be not to buy things that you would not normally need or purchase, but to do so, when you have a coupon that makes it less expensive or even at no cost, which your family can actually use.

There are many ways that coupons can save consumers money, locating the highest savings and combining those discounts with in-store promotions. Additionally, consumers who are using credit cards may want to consider limiting the use of certain cards and increasing the use of others with great rewards programs. By combining these various saving strategies, a consumer can drastically reduce their monthly expenses.

The best way to learn to coupon effectively is to start perusing the Sunday news papers advertisement section for coupons, as well as reviewing a few of the many websites out there that allow you to print coupons for free. However, you must go into it with realistic expectations. It is unreasonable to expect to save 95% on your each coupon shopping trip, or even more absurd is expecting to make money while getting your food and other products for free. However, you can get some great buys. For example, let’s say you go to your local food market and they have a deal, buy two boxes of cereal normally $2.50 per box for the price of one. You also have two coupons each for $1 off a can of soup. You now can buy both cans of soup, normally for $5.00, but only spend $0.50 for both. Taking this example even further, if the store has a double coupon policy, that could make your $1 off coupon worth $2. In this rare example, you could actually get your soup, and then have enough money back to eat some cake too.

Finally, in order to save the most money and cut your spending as much as possible, you must be diligent and very detail oriented. What I mean by this is, if a product rings up higher than advertised or the cashier misses one of your coupons, let them know, and make sure you get your deal.
By taking these and other cost cutting steps, it may even be possible to avoid having to file a bankruptcy, or at least put yourself in a better position once you come out of bankruptcy to stretch your income further then before.

The foregoing article was written by Massachusetts Attorney Michael Goldstein.

Stripping off an unwanted junior mortgage or lien

Attorney Jill Phillips of the Consumer Debt Radio Show discusses the highlights of why a consumer would file a Chapter 13 case.

Attorney Michael Goldstein discusses the differences that consumers need to be aware of when determining if it is a better idea to filea Chapter 7 bankruptcy or a Chapter 13 reorganization.

Saturday July 17, 2010 – Alternatives to loan modifications

Saturday July 3, 2010 – Liability from 4th of July Parites

Saturday June 12, 2010 – Identify Theft

Saturday May 29, 2010 – Why Loan Modifications are failing

Saturday May 22, 2010 – How to handle Medical Bills

Saturday May 1, 2010 – Truth about the Obama Refi Program

Saturday April 24, 2010 – Fraudulent and deceptive lending practices

Saturday March 27, 2010 – How to fix your credit report

Saturday March 20, 2010 – Non discharable debts

Saturday March 13, 2010 – Income tax issues

Saturday Janaury 2, 2010 – Bankruptcy Myths and facts

Saturday January 16, 2010 – Social Security Protection

Saturday January 23, 2010 – issues small business owners face

Saturday February 6, 2010 – Issues facing the unemployed

Saturday February 13, 2010 – Protecting your job and employment status

Saturday February 20, 2010 – The History of Fico Score

Saturday February 27, 2010 – Debt settlement vs. Bankrutpcy

In many situations there is no choice, due to the fact that a cap has been hit on an asset, such as a bank account, lost wages in a law suit or equity in a car. However, one such asset that is typically very difficult to exempt, unless a Debtor uses the Federal exemptions and has a wild card available is an anticipated or even realized tax refund. Under 11 U.S.C. § 542(a), any property that the Debtor held prior to filing his or her bankruptcy becomes property of the estate and is subject to turnover to the Trustee upon request.

In the past, if a Debtor has money owed to him from the Internal Revenue Service, such an asset must be listed on Schedule B of the bankruptcy petition and generally, the Trustee will look to take those funds as part of the liquidated bankruptcy estate, or demand that the unsecured Creditors be paid at least that amount in a Chapter 13 plan based upon the B22 analysis. This was true until very recently when an ingenious Debtor, James Winslow Graves and his bankruptcy attorney beat the system. You see, a Trustee is only entitled to demand an asset which the Debtor has a right to. This is no different then the legal theory “you can only give title to what you own”.

What this Debtor did was simply allow the IRS to take his tax refund and hold it in their possession until such time as he may need to pay taxes in the future. Now this may sound almost like a fraudulent transfer, but the IRS code is very clear on the matter. Under the tax code, once a tax payer elects to leave those funds on deposit with the United States and apply the overpayment to his or her future tax liability, that decision is irrevocable, or as my six year old child would say, “no take backs”! More specifically, the tax code states, “no claim for credit or refund of such overpayment shall be allowed for the taxable year in which the overpayment arises.” 26 U.S.C. § 6513(d).

The Trustee in this case argued the position that the refund amount was property of the estate under 11 U.S.C. § 541(a)(1), and that, since Debtors were receiving the benefit of the application of the refund, the funds should be treated as an account receivable of the Debtors, and Debtors should therefore be required to turn over an equivalent amount to the estate. However, both the Bankruptcy Court and the 10th Circuit Federal Court held that the tax code is clear and specific in its language and intent. The courts held the Debtor once he filed his taxes, had no rights to the tax refund and as a result could not “take it back”. If you find yourself in a similar position, The Florida case of In Re Graves, Docket Number. 08-1462 and In re Graves, 396 B.R. at 73 is the case to cite. The Creditors and the Trustee may think it unfair and even borderline deceptive, but the courts have spoken with its full opinon..

According to an article by Moe Bedard, on September 29, 2010, “a recent VantageScore Solutions survey using more than 400,000 active, anonymous consumer credit files shows that loan modification options have very little effect on [credit] scores.”

In order to forecast a consumer’s projected credit score, it has been suggested that a crystal ball and tarot cards may be in order.  This suggestion though is a bit far fetched, even for the ever difficult, but not completely unpredictable FICO score rating.  With respect to the contention that one’s credit score will decrease with a loan modification, which is a very dangerous statement to make.  Not only is it likely that credit scores may not be impacted in a significant way by loan modification, but they may save a homeowner’s house.  The reason credit scores are not affected much may in fact be rather simple.  Approximately 35% of your credit score is based upon the amount of debt.  If you enter into a loan modification, the amount of debt is not generally altered in any way and in some cases, under the HAMP program, very small amounts of principal may even be set aside, up to $83 per month.  Another approximately 35% of the FICO score is based upon your payment history.  If a homeowner was behind on making payments and enters into a loan modification, and their new payment history is reported, then a credit score can only improve.  Now, it is true that some mortgage servicers do not report during a loan modification or even report a late payment if the payment is not set up properly, however, for the most part, homeowners’ credit should not be affected in a manor that should come into play when considering a loan modification.

I want to add a note of caution though to anyone trying to workout a deal with their bank.  As we have seen all too often, many investors are offering temporary or even full blown modifications only to withdraw their offer down the road.  With that said, in many situations, a bankruptcy, may be a better option to allow a consumer to catch up on their arrears.  As with any complex legal situation, it is advisable to consult with a bankruptcy lawyer in your area.