In my business I get a lot of calls from people who just cannot qualify for a home loan. With rising gas prices, consumer prices, utility prices and even rent prices, Now is a great time to address the issue.
First and foremost, do NOT avoid your creditors. They are in the business of making money, so when you have a hardship and cannot pay them, they will listen and work with you. Here is what worked for one of my clients, of course results will vary based on your banking institution.
1. Explain your hardship, tell them you are sorry and that you have every intention to pay them back as much of the balance as possible and then set up a payment plan.
2. Set a budget and delete, eliminate and remove any excess spending from your life until your debts are paid. I know this is easier said than done, but eliminate the fast food, the local watering hole, new clothes, golf (I know that is blasphemy) and the little things that can be missed for a short period of time. Make a list for one month of checks written and cards used and then it will become abundantly clear where the money goes. Do not deny it, face it head on and make it happen.
3. If you get a lump sum commission, bonus, Xmas bonus, etc. make a large payment to the largest balance. Remember, your APR payments (loosely translated) are based on the average balance you carry from month to month, so the higher the balance you carry the higher the payments and interest. When you get yourself in trouble with multiple cards and large balances this is where you lose the ability to repay the debt unless the rich uncle who loved you dies and leaves you a small fortune.
There are millions of American's in the same place you are, so do not worry, do not give up, and most of all do not panic. Set a plan, stick to the plan and believe in yourself that you can do it. If you do succeed at digging yourself from this hole, the sky becomes the limit and then it is time to start thinking about a career move up or a new larger goal and you will live a life where obstacles are merely short term distractions!
Make it happen and have a great day!
Tuesday, September 9, 2008
Thursday, September 4, 2008
Help save my home or modify my loan
I am changing this one up and bringing the subject matter closer to home. For those of you who are facing foreclosure, pre-foreclosure, think your loan is about to adjust or even those who know they are in financial trouble and will not be able to keep paying their mortgage, their utilities and their ever increasing consumer debts, you have options to keep your home!
First and foremost, continue to pay your mortgage on time, missing a payment or paying it late is credit suicide. Beg, borrower, charge it if possible, just make it happen.
Second, get in touch with a local "loan modification" specialist or Real Estate attorney. I have seen a massive explosion of loan modification companies, some good some bad, so the options are endless. The good news for the consumer is that most are offering some sort of money back guarantee or at least they are saying that if they cannot help then you pay nothing. Google "loan modification" in your area, or go to my site and I will email you a place that provides free advice.
Lastly, the Loan Modification options available to those in trouble is a long list, but here is a small list I have gathered from local professionals, etc.
Rate freeze or rate reduction. It is exactly what it sounds like. For those of you stuck in Pay Option Arms or short term interest only ARM's, this is great. You can get your rate lowered and fixed for up to 30 years. This makes your loan secure and more affordable
Balance reduction. For those who purchased a home in 2004-2007 this is for you. You bought at the peak of the market, the market decreased in some areas about 100%, so now you are underwater on your loan. This balance reduction will bring your balance down to an estimated tax assessor level. The local tax assessor is always high in a bad market and higher in a good market, but this will help reduce the balance, the total interest paid to the bank and potentionally allow you to pay the home off sooner depending on your personal situation.
LAST but certainly not least, who qualifies for this? At the time of writing this, I understand it to be limited to only those who have a financial "hardship". I do know that Bush just signed something into law that might allow others to take advantage of this, but beware, Big Gov't and Big Brother Lender are not out to help YOU, they just want to make it seem that way.
Anyway, the list of financial "hardships" is long, but well make it simple. Those with enough money to make one more payment before they are unable to pay anything. Those who have recently lost their jobs and cannot afford their payments anymore. Those who lost a husband or wife, etc.
If you are one pay check away or your loan is about to adjust, you have options! Call or email anytime I will gladly point anyone who needs help in the right direction. My new website is in "demo" mode so I do not have any loan modification links there yet but they will be there on Tuesday the 9th for everyone to see.
First and foremost, continue to pay your mortgage on time, missing a payment or paying it late is credit suicide. Beg, borrower, charge it if possible, just make it happen.
Second, get in touch with a local "loan modification" specialist or Real Estate attorney. I have seen a massive explosion of loan modification companies, some good some bad, so the options are endless. The good news for the consumer is that most are offering some sort of money back guarantee or at least they are saying that if they cannot help then you pay nothing. Google "loan modification" in your area, or go to my site and I will email you a place that provides free advice.
Lastly, the Loan Modification options available to those in trouble is a long list, but here is a small list I have gathered from local professionals, etc.
Rate freeze or rate reduction. It is exactly what it sounds like. For those of you stuck in Pay Option Arms or short term interest only ARM's, this is great. You can get your rate lowered and fixed for up to 30 years. This makes your loan secure and more affordable
Balance reduction. For those who purchased a home in 2004-2007 this is for you. You bought at the peak of the market, the market decreased in some areas about 100%, so now you are underwater on your loan. This balance reduction will bring your balance down to an estimated tax assessor level. The local tax assessor is always high in a bad market and higher in a good market, but this will help reduce the balance, the total interest paid to the bank and potentionally allow you to pay the home off sooner depending on your personal situation.
LAST but certainly not least, who qualifies for this? At the time of writing this, I understand it to be limited to only those who have a financial "hardship". I do know that Bush just signed something into law that might allow others to take advantage of this, but beware, Big Gov't and Big Brother Lender are not out to help YOU, they just want to make it seem that way.
Anyway, the list of financial "hardships" is long, but well make it simple. Those with enough money to make one more payment before they are unable to pay anything. Those who have recently lost their jobs and cannot afford their payments anymore. Those who lost a husband or wife, etc.
If you are one pay check away or your loan is about to adjust, you have options! Call or email anytime I will gladly point anyone who needs help in the right direction. My new website is in "demo" mode so I do not have any loan modification links there yet but they will be there on Tuesday the 9th for everyone to see.
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