Are you having trouble keeping up with your mortgage payments? Have you received a notice from your lender asking you to contact them?
Whatever you do, Don't Ignore The Letters from your lender Contact your lender immediately !
If you are unable to make your mortgage payment:
1. Don't ignore the problem.
The further behind you become, the harder it will be to reinstate your loan and the more likely that you will lose your house.
2. Contact your lender as soon as you realize that you have a problem.
Lenders do not want your house. They have options to help borrowers through difficult financial times.
3. Open and respond to all mail from your lender.
The first notices you receive will offer good information about foreclosure prevention options that can help you weather financial problems. Later mail may include important notice of pending legal action. Your failure to open the mail will not be an excuse in foreclosure court.
4. Know your mortgage rights.
Find your loan documents and read them so you know what your lender may do if you can't make your payments. Learn about the foreclosure laws and timeframes in your state (as every state is different) by contacting the State Government Housing Office.
5. Understand foreclosure prevention options.
Valuable information about foreclosure prevention (also called loss mitigation) options can be found on the internet. (More details to follow soon!)
6. Contact a HUD-approved housing counselor.
The U.S. Department of Housing and Urban Development (HUD) funds free or very low cost housing counseling nationwide. Housing counselors can help you understand the law and your options, organize your finances and represent you in negotiations with your lender if you need this assistance. Find a HUD-approved housing counselor near you or call (800) 569-4287 or TTY (800) 877-8339 .
7. Prioritize your spending.
After healthcare, keeping your house should be your first priority. Review your finances and see where you can cut spending in order to make your mortgage payment. Look for optional expenses-cable TV, memberships, entertainment-that you can eliminate. Delay payments on credit cards and other "unsecured" debt until you have paid your mortgage.
8. Use your assets.
Do you have assets? - a second car, jewelry, a whole life insurance policy - that you can sell for cash to help reinstate your loan? Can anyone in your household get an extra job to bring in additional income? Even if these efforts don't significantly increase your available cash or your income, they demonstrate to your lender that you are willing to make sacrifices to keep your home.
9. Avoid foreclosure prevention companies.
You don't need to pay fees for foreclosure prevention help! Use that money to pay the mortgage instead. Many for-profit companies will contact you promising to negotiate with your lender. While these may be legitimate businesses, they will charge you a hefty fee (often two or three month's mortgage payment) for information and services your lender or a HUD approved housing counselor will provide free if you contact them.
10. Don't lose your house to foreclosure recovery scams!
If any firm claims they can stop your foreclosure immediately if you sign a document appointing them to act on your behalf, you may well be signing over the title to your property and becoming a renter in your own home! Never sign a legal document without reading and understanding all the terms and getting professional advice from an attorney, a trusted real estate professional, or a HUD approved housing counselor.
Monday, July 28, 2008
Don't Allow Depression In
So, you say. that's all well and good, but where do I start?
My advice is to start with yourself. It's vey easy to become despondent & depressed, when you're in tough financial situations, so first take the time to remind yourself of the positives in your life. Write them on a list & stick them on the inside of your wardrobe door. So every morning, when you open that wardrobe to get dressed, they'll be there to remind you.
You may say that everything's negative at the moment, but that's not true!
What about your partner, who still loves you dearly? And your beautiful children? The fact that you still have food on the table etc. Look hard enough (get your partner involved) and you will find some positives. Then try to focus on them as much as possible.
Get out into the fresh air and bright sunlight as much as possible. Obviously, if it's the middle of Winter when you're reading this, that could be a problem, but in that case, the next best option, is to go to a mall or somewhere with warmth, bright lights and laughing kids. This will definitely help to lift your spirits....even if only for a while.
Whatever you do, try to stay busy - with positive activities. Join a support group or charity. Apart from the friendships you'll form and other positives that come from this, this will also remind you that, no matter how tough you think your situation is, there are others in worse positions.
Don't allow yourself to stay in bed or lounge in front of the TV all day, feeling sorry for yourself. Yes, I know this can be much easier said than done, but believe me it is not only possible, but critical to your emotional well-being.
Get some form of exercise, even if it's just a brisk walk around the block. The endorphins that are released are like a natural drug, that lifts your spirits.
And always try to remember the old adage: "This too, will pass"
As we said before, life does move in cycles after all.
My advice is to start with yourself. It's vey easy to become despondent & depressed, when you're in tough financial situations, so first take the time to remind yourself of the positives in your life. Write them on a list & stick them on the inside of your wardrobe door. So every morning, when you open that wardrobe to get dressed, they'll be there to remind you.
You may say that everything's negative at the moment, but that's not true!
What about your partner, who still loves you dearly? And your beautiful children? The fact that you still have food on the table etc. Look hard enough (get your partner involved) and you will find some positives. Then try to focus on them as much as possible.
Get out into the fresh air and bright sunlight as much as possible. Obviously, if it's the middle of Winter when you're reading this, that could be a problem, but in that case, the next best option, is to go to a mall or somewhere with warmth, bright lights and laughing kids. This will definitely help to lift your spirits....even if only for a while.
Whatever you do, try to stay busy - with positive activities. Join a support group or charity. Apart from the friendships you'll form and other positives that come from this, this will also remind you that, no matter how tough you think your situation is, there are others in worse positions.
Don't allow yourself to stay in bed or lounge in front of the TV all day, feeling sorry for yourself. Yes, I know this can be much easier said than done, but believe me it is not only possible, but critical to your emotional well-being.
Get some form of exercise, even if it's just a brisk walk around the block. The endorphins that are released are like a natural drug, that lifts your spirits.
And always try to remember the old adage: "This too, will pass"
As we said before, life does move in cycles after all.
Sunday, July 27, 2008
Get Started. Do it NOW!
It's a fairly natural human response. The knowledge that we're in over our heads and that the Sheriff might come calling soon, often causes a kind of paralysis.
Fear, disbelief, denial and even severe deppression cause many homeowners that are in the position of potentially losing their homes to "freeze up" or at the very least procrastinate. As if, by denying our situation, we can stop the process.
Of course the opposite, is actually true. The longer you wait, the harder it becomes to resolve this issue.
Keep in mind, that the foreclosure procedure has been around and well established for a long time (more on this in a future posting). So, no matter how much you try to bury your head in the sand, the process goes on!
So, it's critically important that you start negotiations with your mortgage provider as soon as possible!
Phone them. Make an appointment to see them & ask them if there's some way you can come to an arrangement with them. Make sure you confirm all conversations in wring afterwards or even beforehand.
Don't wait please!
Do something now. Most Banks & Mortgage Companies have special departments to deal with this issue. Be open & honest with them and show a willingness to do everything in your power to keep your home.
How, you ask?
Show them copies of all the job applications you've done. What about that motorcycle of yours? Yes, we know she's your baby, but she's not very comfortable as a home, is she now? So, sell her and use the proceeds to make a payment/ part-payment on your bond.
Think "outside the box" to find alternate ways to cut costs or earn additional income...
You can do this! But start right now!!
Fear, disbelief, denial and even severe deppression cause many homeowners that are in the position of potentially losing their homes to "freeze up" or at the very least procrastinate. As if, by denying our situation, we can stop the process.
Of course the opposite, is actually true. The longer you wait, the harder it becomes to resolve this issue.
Keep in mind, that the foreclosure procedure has been around and well established for a long time (more on this in a future posting). So, no matter how much you try to bury your head in the sand, the process goes on!
So, it's critically important that you start negotiations with your mortgage provider as soon as possible!
Phone them. Make an appointment to see them & ask them if there's some way you can come to an arrangement with them. Make sure you confirm all conversations in wring afterwards or even beforehand.
Don't wait please!
Do something now. Most Banks & Mortgage Companies have special departments to deal with this issue. Be open & honest with them and show a willingness to do everything in your power to keep your home.
How, you ask?
Show them copies of all the job applications you've done. What about that motorcycle of yours? Yes, we know she's your baby, but she's not very comfortable as a home, is she now? So, sell her and use the proceeds to make a payment/ part-payment on your bond.
Think "outside the box" to find alternate ways to cut costs or earn additional income...
You can do this! But start right now!!
The Dark before the Morn'
There's absolutely no doubt that we're going into a period of what some call "slower growth" & others call a flat-out recession. No matter what you choose to call it, things are definitely not looking good for Americans (and the rest of the world, mind you!) - at least for the immediate future.
And unfortunately, it's highly likely that things will get worse, before they get better.
We all tend to forget that economies move in cycles.
Two or three years ago, not a single economic Guru would have forecast the situation we find ourselves in at the moment. Back then, it was all sunshine & roses. The future looked wonderful!
The ridiculous share prices of the time were justified with all sorts of financial hoo-ha. The very people we believe should know more about all this financial "stuff", were as blind as anyone else to the obvious signs.
Of course, those very same Gurus are now forecasting doom & gloom "for the foreseeable future".
Well, here's the truth:
Through-out the ages, we humans have lived by cycles - whether that be solar or lunar cycles, weather cycles or (as in this case) financial cycles.
Obviously, there are many factors that influence the timing, severity & duration of any financial cycle, but whatever those influences may be, of one thing you can be ABSOLUTELY certain: This cycle will end and a new - upward - financial cycle will start. That is as certain as the next breath you take.
The only question is: When will this happen?
Well, I'm afraid I can't tell you that. But I can tell you, that if you accept the truth of the cyclical nature of things - including this downturn, and if you will learn from your past mistakes, when the next down-cycle comes, you could be the one sitting on your porch with grin on your face, while everyone else is talking about the grim future ahead.
And it starts here....
And unfortunately, it's highly likely that things will get worse, before they get better.
We all tend to forget that economies move in cycles.
Two or three years ago, not a single economic Guru would have forecast the situation we find ourselves in at the moment. Back then, it was all sunshine & roses. The future looked wonderful!
The ridiculous share prices of the time were justified with all sorts of financial hoo-ha. The very people we believe should know more about all this financial "stuff", were as blind as anyone else to the obvious signs.
Of course, those very same Gurus are now forecasting doom & gloom "for the foreseeable future".
Well, here's the truth:
Through-out the ages, we humans have lived by cycles - whether that be solar or lunar cycles, weather cycles or (as in this case) financial cycles.
Obviously, there are many factors that influence the timing, severity & duration of any financial cycle, but whatever those influences may be, of one thing you can be ABSOLUTELY certain: This cycle will end and a new - upward - financial cycle will start. That is as certain as the next breath you take.
The only question is: When will this happen?
Well, I'm afraid I can't tell you that. But I can tell you, that if you accept the truth of the cyclical nature of things - including this downturn, and if you will learn from your past mistakes, when the next down-cycle comes, you could be the one sitting on your porch with grin on your face, while everyone else is talking about the grim future ahead.
And it starts here....
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