• Don’t ignore the problem. It is easy to keep putting it off and to pretend it does not exist. However, it is best to face your problem. This is the same with any problem you face; first recognize the problem and get help. Yes with foreclosure you got a big problem.
• Contact your lender has soon as you realize you have a problem. Lenders prefer your money verses your home, call them they might just have a work out plan for you to keep your home.
• Open and respond to all mail or correspondent from your lender. The natural tendency is to adopt the attitude “out of sight out of mind”. However, I assure you not reading or responding to your mail is not going let your problem go away. The fact is your problem is your lenders problem.
• Know your mortgage rights. Each state their own foreclosure laws or procedures. Get educated about such laws and understand where you are in the process. Because time is of the utmost importance, be sure not to waste it, use every moment to learn or inform yourself of the options.
• Understand the foreclosure prevention options. The key in surviving a foreclosure process is to understand your options and execute them, never stand still and watch you house be taken away from you.
• Contact HUD -approved housing counselors. These organizations will help you understand your options; organize your financial presentation and help submit your loan modification. Some HUD approved counselors are funded by HUD and will have specific standard they have to meet. Those for profit companies can and will do a good job for you but in most case they charge a fee that can be a problem for most people in foreclosure.
• Prioritize your spending. Cut back where you have to in order to help save your home. Don’t start a new home improvement project which can require money you don’t have. Watch you budget closely reduce services that you can live without.
• Get an extra job. Can you or a member of your household get an extra job? Companies like Mary Kay or Prepaid legal offer part time or full time job presenting new products to your neighbor. These jobs can take 3-4 hours a day but pay very well if you stick with it.
• Sell extra stuff on EBY. Do you have extra stuff you would love to get rid of then why not put them on EBAY for sale? This is not necessary a job but just a way to clear the house of junk and help your get some additional cash in helping you prevent foreclosure.
• Reduce your bills. Start closing accounts such as credit cards, keep only the minimum. Analyze your credit and identify what will increase your scores and what will not. In the event you have to do a short sale, the possibilities of purchasing or renting a home still require a credit.
Friday, March 6, 2009
Thursday, February 26, 2009
Fighting foreclosure with 31% of your income
Written By: George Haughton
Fighting foreclosure just became interesting for many home owners. I have taken one paragraph out of the president Obamba's speech to analyze it some more for my own understanding and to be able to write or blog about it. The flowing is the paragraph regarding how the government will work with the those in foreclosure:
"If lenders and home buyers work together, and the lender agrees to offer rates that the borrower can afford, we'll make up part of the gap between what the old payments were and what the new payments will be. And under this plan, lenders who participate will be required to reduce those payments to no more than 31 percent of a borrower's income. This will enable as many as three to four million homeowners to modify the terms of their mortgages to avoid foreclosure."
After reading the speech I got to wondering if this new payment was based on a new rate and current monthly income with a subsidy from the government for the difference? For example if the home owner makes $1000.00 per month then my monthly payments would be about $310 per month. However, what if my original monthly payment was $2000.00, which included my taxes and my income went from $2800.00 to the current $1000.00 will the government pay the difference? I really doubt this could actually be the case but that is how it sounds to some home owner fighting foreclosure. Other say this $310 is based not a traditional 30 mortgage but more like a 500 year mortgage. Fighting foreclosure just got easier.
This is what one reporter wrote quoting the president: "In prepared remarks today in Phoenix, the president said, “Let’s say you earn about $30,000 per year and you find a house that costs $232,500. 31 percent of your monthly income would be about $775, which puts you in a nice comfortable 443-year mortgage at an interest rate of 4.0%, which is fair for someone like you. You win, the banks win, and most importantly, the economy wins."
Again fighting foreclosure not only just got easier but if you can't stop foreclosure with this plan then you don't need to own a home right now.
How do I know if I qualify for this plan? Check the White House Web Site
Fighting foreclosure just became interesting for many home owners. I have taken one paragraph out of the president Obamba's speech to analyze it some more for my own understanding and to be able to write or blog about it. The flowing is the paragraph regarding how the government will work with the those in foreclosure:
"If lenders and home buyers work together, and the lender agrees to offer rates that the borrower can afford, we'll make up part of the gap between what the old payments were and what the new payments will be. And under this plan, lenders who participate will be required to reduce those payments to no more than 31 percent of a borrower's income. This will enable as many as three to four million homeowners to modify the terms of their mortgages to avoid foreclosure."
After reading the speech I got to wondering if this new payment was based on a new rate and current monthly income with a subsidy from the government for the difference? For example if the home owner makes $1000.00 per month then my monthly payments would be about $310 per month. However, what if my original monthly payment was $2000.00, which included my taxes and my income went from $2800.00 to the current $1000.00 will the government pay the difference? I really doubt this could actually be the case but that is how it sounds to some home owner fighting foreclosure. Other say this $310 is based not a traditional 30 mortgage but more like a 500 year mortgage. Fighting foreclosure just got easier.
This is what one reporter wrote quoting the president: "In prepared remarks today in Phoenix, the president said, “Let’s say you earn about $30,000 per year and you find a house that costs $232,500. 31 percent of your monthly income would be about $775, which puts you in a nice comfortable 443-year mortgage at an interest rate of 4.0%, which is fair for someone like you. You win, the banks win, and most importantly, the economy wins."
Again fighting foreclosure not only just got easier but if you can't stop foreclosure with this plan then you don't need to own a home right now.
How do I know if I qualify for this plan? Check the White House Web Site
Wednesday, February 25, 2009
Free google foreclosure list
By George Haughton:
Looking for a list of home foreclosures without paying for the list then take a look at Google free foreclosure list. This could save you thousand of dollars.
Looking for a list of home foreclosures without paying for the list then take a look at Google free foreclosure list. This could save you thousand of dollars.
Free foreclosure list
Are you looking to purchase a home? Then this is the best opportunity you will have during the last five or six years. What the banks are ready to do or offer you is unbelievably, some banks with a short sale can offer as low as forty percent. The areas hit the hardest have a greater mark down. Since eviction is being a daily reality then it sad to say this create an opportunity for a new family to purchase a home at a great affordable home.
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