A Must Read For Struggling Home Owners

A July 17, 2009 Update On This Entry!

When we discovered the material in this blog entry we noticed that there is a time limit on applying for this Government Sponsored Loan Modification. We kept this Posted to give Homeowner every chance possible to take advantage of this program at no cost to you the homeowner. Please if you are struggling take advantage of this program by The Friday July 22, 2011 Deadline. Come this Friday we are going to have a new entry and this entry (Below) will remain in the archives. We will advise readers in the future if this program is extended. We will continue this week with Loan Modification Services for those who believe they need help with tne application and processing however, you have to remember these services mentioned in the upcoming entry are paid services and are not free like the loan modification mentioned in this entry.

We will also be discusing another upcoming opportunity that you can start at no cost to you. This opportunity is still in pre-launch and will help you develop as a marketer with free trainings using webinars and webinar archives with more training features and more in your back office. This means no hosting fees, no website construction fees, with no fees of any kind to get started. Please be here Friday for this new informative post.

Posted on July 1, 2011

In this Week’s Blog Entry We were  going to offer some loan modification suggestions to struggling home owners from private companies which we will do next week. These companies are motivated to help you with loan modification however there is a fee involved that is added into the process. These would be your last options. Looking through the Yahoo News Briefs I had found this little Gem with an earlier article to help struggling home owners. It seems that the US Government has fallen way short on their goal of helping struggling home owners with this program. In this holiday weekend if you can take some time to fill out the application on the website associated with these articles and get the help you need, here is your chance to do it directly from the Government. Even if you think you do not qualify give it a chance. We truly believe we can help you change your financial future by reading this blog. This blog is not only about financial education it is also about rebuilding your life by finding that job or establishing a home business. There is so much we can help you with here at Finding Financial Freedom. We consider this a big step in your financial relief to give you this very important information with the link where you can find out more.

The Deadline for applications to this Government Mortgage or Loan Modification Program is July 22, 2011!

Have a Safe and Happy Fourth of July!!!

Blaine

More Money for Struggling Homeowners

by Anna Maria Andriotis
provided by Smart Money from Yahoo June 30, 2011

 A new federal program is offering aid with a sweet kicker: It doesn't need to be repaid.

For the roughly four million homeowners who have fallen behind on their mortgage payments, the federal government is offering yet another remedy: free money to catch up on their loans.

 The effort, called the Emergency Homeowners Loan Program, is the latest in the federal government's efforts to slow down the flood of foreclosures a necessary step to a meaningful recovery in the housing market, says a Department of Housing and Urban Development official. For people who have lost their jobs, the $1 billion program offers loans of up to $50,000 that don't actually need to be repaid, if applicants meet certain requirements.

The goal, says HUD, is to offer short-term aid to people who look like they'll be back on their feet soon. But critics say the loans may leave homeowners worse off in the long run. "This is a short run band-aid, a modest attempt to grapple with the severity of the situation," says Stuart Gabriel, director of the Ziman Center for Real Estate at the University of California, Los Angeles.

Rolled out by HUD and the nonprofit housing advocacy group Neighbor Works America, the program is making loans with far better terms than anything on offer at a local bank. The loans are interest-free. Payments go directly to the lender for a portion of the borrower's monthly mortgage, including missed payments or past due charges. And when the assistance period -- which runs for up to two years -- ends, 20% of the loan is forgiven with each passing year. In other words, for qualified borrowers who stay in their home for at least five years after the assistance period and who don't fall behind on their mortgage again, this money doesn't have to be paid back.

But some critics say that's where help for consumers ends. By taking this loan, borrowers risk falling further into debt. If they sell their home before the entire loan is forgiven, they'll be on the hook for the remaining amount. The same holds true if they fall behind on their mortgage payments again: they'll need to repay the remaining balance of the loan when they sell or refinance their home. Separately, borrowers aren't required to have equity in their home to receive this money, so someone who has to repay this loan risks owing more on the home later than they do now. For homeowners who are significantly underwater now, the loan may only delay foreclosure, says Gabriel. While the limit each person will get is up to $50,000, loans will average about $35,000 per person, according to Neighbor Works America.

 Others say the program doesn't go far enough. The loans will be made available to around 30,000 applicants -- "a drop in the bucket," says Stu Feldstein, president at SMR Research, a housing and mortgage research firm. It's helpful, he says, but it won't be enough to seriously boost the ailing housing market. Roughly 4 to 4.5 million borrowers are behind on their mortgages by at least 90 days or are in foreclosure, accounting for roughly 8% of all mortgages. Housing analysts say the loss of income is the primary reason why borrowers are in danger of losing their homes. Those behind the program counter that the help will be significant for some. "If you are one of those 30,000 people, I think you should be very excited to get this help," says a Neighbor Works America spokesman.

 The program started last week and will take applications through July 22. Many experts say it's still too early to say it will be successful, and so far federal assistance programs haven't impacted a significant number of borrowers. The government's Home Affordable Modification Program, which started in 2009 and was projected to help up to 4 million homeowners lower their mortgage payments has so far only permanently helped around 700,000 homeowners. To be eligible, homeowners must have lost income and be at risk of foreclosure due to involuntary job loss, underemployment or a medical or other economic condition; details on the application process are available online through Neighbor Works America.

For More Information and to Apply Click On http://ehlp.nw.org!

 SMARTMONEY MARCH 30, 2011, 11:27 A.M. ET.

New Options for Underwater Homeowners

By ANNAMARIA ANDRIOTIS

Until recently, it took a rare combination of extreme bad luck and poor judgment for a homeowner to end up under water on his mortgage that is, owing more than the house is worth. Today, nearly one out of four homeowners is facing exactly that situation. In response, banks and the government are rolling out new programs they say will help that is, for homeowners who qualify.

After banks' initial resistance to loan modification programs and refinancing designed to help struggling borrowers, many are now embracing programs for homeowners in trouble. Both GMAC Mortgage and Wells Fargo have started either reducing some mortgage balances, deferring payments or offering subsidized refinancing. Chase says it will open another 30 dedicated "help centers" this year where homeowners can apply for loan modifications. This month, the government also stepped in, extending the period for underwater borrowers to refinance their mortgages at lower rates, which was not possible through standard refinance programs. "All of a sudden, everyone is aware of this growing problem," says Stu Feldstein, president at SMR Research, which tracks the mortgage market.

About a year ago, it seemed the number of underwater homeowners was declining as home prices were rising. But housing analysts say that trend is now reversing. Approximately 23% of homeowners with a mortgage are underwater -- near an all-time high -- according to fourth quarter 2010 data from CoreLogic, a mortgage-data firm. That figure rose for the first time in a year, and it's up from 22.5% in the previous quarter. Meanwhile, another 2.4 million homeowners are teetering on the brink, with less than 5% equity in their home. If home prices drop another 10% -- which is likely over the next year many of those owners could end up with negative equity, says Cameron Findlay, chief economist at LendingTree.com.

 While this has been an obvious problem since 2008, "large banks have been extraordinarily slow to move to adopt these programs," says Paul Leonard, a director at the Center for Responsible Lending. But now lenders are increasingly stepping in, eager to avoid foreclosures, which can cost the bank far more than a reduced payment plan or loan modification ever would. Lenders are also hoping to keep discouraged homeowners from intentionally walking away from their home: Half of homeowners who owe 50% or more on their home than it's worth and who default do so strictly because of negative equity, according to a 2010 Federal Reserve Board study.

But the banks' programs aren't designed simply for people disappointed by falling prices. To qualify, in most cases, borrowers have to prove they're having trouble making their payments and for a good reason. They'll often have to provide documentation for a job loss, a pay cut, large medical expenses or other unanticipated losses. If approved, they could be offered a lower interest rate by up to 2% when a bank is participating in the government's Home Affordable Modification Program. Or they may also receive a longer repayment period extending a mortgage up to 40 years from the date of origination -- which makes monthly payments smaller, says Leonard.

 With some lenders, borrowers who are past due and whose home values have suffered large losses (and appear unlikely to recover in the near term) could qualify for a principal deferment, where a chunk of the mortgage is set aside to be paid later, or out-and-out forgiveness of part of the loan. In general, borrowers will have to meet some income limitations. Modifications typically occur when a borrower's monthly mortgage payment is more than 31% of their monthly household pre-tax income and when the principal balance is no more than $729,750 on a single-family home. The amount forgiven is often small in the grand scheme of things, and it varies depending on the lender and the borrower's circumstances. Wells Fargo, for example, says it eliminated $51,000 in principal, on average, for more than 73,000 borrowers from 2009 through 2010.

Some government programs offer help, through refinancing, to underwater borrowers who are capable of making payments. But applicants will need to meet a long list of qualifications. For underwater borrowers, these programs are among the very few options available for them to refinance. Homeowners who owe up 125% of their home's current market value should contact their lender or mortgage servicer to find out if they're participating in the government's Home Affordable Refinance Program (HARP), which was just extended through June 2012. Borrowers must have a mortgage that's guaranteed by Fannie Mae or Freddie Mac -- to find out, contact these agencies or your mortgage company -- be current on their payments, and not be more than a month late making a payment over the past year.

There's also an option for borrowers who are even further underwater where participating lenders must agree to write off at least 10% of their unpaid principal balance on their primary mortgage. Since September, the government's Federal Housing Administration has been offering some underwater borrowers in areas with large declines in home values -- like Miami and Las Vegas -- a chance to refinance. But that's assuming that their lender agrees to write off a portion of the unpaid principal and that the borrower doesn't have an FHA mortgage but can now qualify for one. So far, just 24 lenders are participating, and only 99 loans have been approved, according to an FHA spokesman. A GMAC spokeswoman says the company will open up this program to some of its borrowers in the next few weeks.

 In spite of the recent flurry of activity, consumer advocates say homeowners shouldn't expect much at least not yet. As it is, some government programs have already fallen short of expectations. HAMP, for example, has helped around 600,000 people permanently modify their mortgages since 2009 -- so far, a far cry from the up to four million it was projected to help. And banks have been slow to act as well, especially when it comes to borrowers who are currently making payments. Among lenders "there is some concern that by offering [principal reduction] qualified borrowers will storm the gate and demand a reduction," Leonard says. So far, that hasn't been the case. From 2009 through 2010, Chase says it helped around 500,000 borrowers avoid foreclosure. During that period, about two million foreclosures occurred, according to RealtyTrac.com. And critics say even the loan modifications that have been in place haven't helped that much: Many of those borrowers fell behind on payments again afterwards.

Of course, there are other options for desperate homeowners. They can try a short sale, assuming the bank allows them to sell the home for less than what's owed on the mortgage. More lenders are now open to this, says Stuart Gabriel, director at UCLA's Ziman Center for Real Estate, because they're likely to lose less money in a short sale than they would in a foreclosure. Or, if they can make the payments, they can decide to ride it out. Contrary to popular belief, homeowners who have seen their homes lose 25% or more in value but can afford to keep paying the mortgage might be better off staying there and waiting for prices to stabilize, says Findlay. But if a borrower is able to refinance into a lower rate through a government program, that might be the better move, he says.

For More Information and to Apply Click Here! 

Please be advised that we do not endorse any company in this video and that it's educational value in loan modification preparation was the only reason we chose this video.

Get More Information about the Mortgage Crisis by watching this video from 60 Minutes.

Getting a Grip on Your Financial Reality

In the last post we showed you some of the options to get a budget together and get financially organized. Now you have come to some of your options and realities. With some belt tightening, getting rid of club memberships, services and luxuries you know you can do without for the moment you can find a way to be solvent every month. You even may find some money you can start stacking away in a savings account. This is good but if you cannot find a way to at the least break even every month you have some tough decisions to make.

Never get the impression that this blog will be about saving the BMW or Mercedes from repossession because I can tell you to cash out on them now while you can find some money to get adequate transportation. We are talking about owning the transportation you need to get your daily routine taken care of. If you are that caliber of person perhaps you should read The Millionaire Next Door to understand what I am talking about. The Millionaire Next Door gives you an idea of true wealth amongst high income people and that you do not necessarily need a big income to become wealthy. You will find nothing in this blog that will tell you I have any sympathy for those who have the need to keep up with the Joneses. It is a part of American Society that is more of a fable than the American Dream. In fact this is only the dream that advertisers and big banking want you to believe. I am tired of falling for their myths and tricks how about you?

Ok! You have gone through everything that you owe with the pay-off dates. Then look at your budget and think of what you can do without to pay back your debt and become solvent. Look to see if you own property and if you have some equity you can cash out on. When I say this forget about what your banker told you. Get banks and bankers out of your head. They only tell you what they want you to hear. Get an estimate of what your loan to value is on your property. If you have no property you can still follow this plan so please read on what I am going to tell you may surprise you.

Federal Credit Unions are for the regular everyday person. When the banks tells you they can do nothing for you means they lend to people that can secure their debt (wealthy people). Banks lend to the rich and big business and any unsecured debt is where they make their money by charging more for their services. Big banks are not interested in helping you pay less your debt unless you can secure these loans. Big Banks mean only secure loans with individuals yet they will take chance with big business investments as we saw in 2008.

Enough of that! If you can benefit from a lower payment and you are willing to sacrifice some credit card accounts a Federal Credit Union may be able to help you. If your credit score is at least in the high 600s you may qualify for an unsecured loan through a Federal Credit Union. You do have to prove that you can pay the money back. The criteria for Credit Unions are different from regular banks as far as lending. If you do have some equity in your property and a bank will not let you cash out again the criteria is different with a Credit Union. Credit Unions will go up to 90% loan to value on your property where banks will go only to 80% Loan To Value. Banks charge you processing fees for your financing where Credit Unions do not. This can make a big difference in what you receive in the funding you get in your loan. Not to mention all the loan programs with credit unions are fair with their interest rates and more tailored to the individual.

This again is where My Shopping Genie will help you. Credit Unions are regional and the best way to find one is calling and asking what the membership requirements are for the Credit Unions in your area. My shopping Genie will help you find the Credit Union Suitable for you by using your favorite Search Engine.

Remember the My Shopping Genie is a free to download and My Shopping Genie will help you save time and money on all goods and services you may need in these hard times of recovering financially.

Desperate Times Call For Desperate Measures

Here is where we have exhausted all options. At this point you want to stop the financial bleeding and the constant badgering from banks, creditors and debt collectors. These are the measures you can take to basically tell all those who have badgered you to do something anatomically impossible and start over at the same time.

When all options are exhausted you may want to consider Debt Settlement. Debt Settlement at this point may or may not be better than bankruptcy. What you have to consider with Debt Settlement is the time it takes to get the negative entries off your credit report. Even if the accounts you settle are marked paid and current they will also be marked as settled and prevent your credit score from going up. It will take an additional seven years from the time all your accounts are settled to successfully get them off your credit report.

When accounts get settled through Debt Settlement you also may be liable for the difference between what is settled and what you paid. This will be considered income to the IRS. Please note when you settle debt, the financial Institution may send you a 1099 with the unpaid balance to you as income so they can deduct it as your income from the IRS. This sometimes is overlooked by individuals seeking debt settlement and can further hurt you in your financial recovery process. If you are in debt the last thing you want to do is get into debt with the IRS. The fines and penalties are far worse than dealing with creditors.

View More Consequences of Debt Settlement in the Videos Below This Entry.

The Last Option Is Bankruptcy

The threat can be worse than the solution. There is a lot to consider with bankruptcy however, do not rule it out if you are over your head. With debt settlement depending on how swiftly all the debt is settled it can take nine or ten years to get your credit history or report in good reporting condition. With Bankruptcy it takes ten years. With both you can obtain credit in that time, but at what expense to you as the consumer? The answer to these questions really lay in a lawyers hands. He will actually tell you how you can protect some of your assets where if you waited until forclosure let’s say the result could be completely different. With the help of a lawyer and if bankruptcy is done right it can help you save you from losing your car or transportation if they are paid for in full and you have title to them. Bankruptcy means protection from creditors because of financial hardship. I can write paragraph after paragraph on why or why not to go bankrupt and only you can make that financial decision. Only you can make that decision to stop the constant phone calls and the financial bleeding. If you do not take action the problem will never go away. All you are doing is letting the big financial institutions rob you of your dreams, your peace of mind, your relationships and worse your health and wellbeing. They call it civil law but there is nothing civil on how they treat you when you cannot pay your debts.

We have resources to help you find a lawyer or again My Shopping Genie will help you using search engines.

1 Look Into Legal Match by Clicking Here!
2 Look Into Rocket Lawer by Clicking Here!

This Weeks Rant

After reading book after book and article after article on banking and consumer rights concerning debt I can’t help but to be angered. The reason we all take on debt is to get the things we want faster instead of saving for the things we want. Since I was young how the flow of credit has infiltrated the poor and middle class with people being victims of credit misuse. Do not kid yourself big financial instutions do not want to see you succeed they just want your money when you fall behind. They rock you and sock you with late charges topped with default rates that make you fail instead of helping you find an equitable solution. These financial institutions have lawyers on their side. If you are bleeding financially seek help. Go back and read the past entries and stop the bleeding now! Or, find a good bankruptcy lawyer and get your life back. There is plenty of help out there and there is plenty of help in this blog with more to come so get going and help yourself today to start living a happier more prosperous life.
 

Getting Set With A Budget

Getting set with a budget is more a matter of discipline than knowhow. There are many Self Help books you can use or courses you can take to help you learn to set up a budget some you may find online. With one search I found spreadsheets 1 2 3 free budgeting worksheets with My Shopping Genie.

For Free Budgeting Spread Sheet From Spread Sheets 1 2 3 Click Here!

The deciding factor on this is do you want to self-educate yourself, do you want to seek some education or have someone professional get you started. With this entry we are going to offer some suggestions on what to follow. What you need to remember it is up to you and to what standard and time frame you set your goals. Remember with last week’s entry we just wanted you to get a general Idea of what you would like to accomplish financially. We were not trying to suggest you be too harsh on yourself and be realistic on the goals you set for yourself. Try to take the blame away from yourself. It may not be your fault. Look at your total picture before becoming too hard on yourself. You want concentrate on what you are going to do to change your financial future. In the coming months your outlook can change to the positive when you actually see your future improving as the debt goes away.







If it is as simple as just organizing your finances you can start with this e-book. Click Here!



If your finances seem more complex and you want to learn to get and stay out of debt these Ideas may help.




I am in the process of personally using the debt to wealth system. John Cummuta has some great ideas using leverage in teaching this system. With this system you learn to pay off debt by making each account at a time eliminating one account at a time and then using the funds from the paid off account to pay off the next. This is a great concept however, when you do your debt analysis you still have to be able to live after you set up your payoff budget. That means you still have to have the money to leverage and be able to pay your living expenses without taking on more debt.

What John does do is give you a strong education in setting up and maintaining a strong financial ethic that will help future financial decisions and difficulties. All this is done through video seminars, work books and work sheets. If you are going to build a strong financial foundation this course is one of the best out there. I am sure you have heard the ads over the television and radio.

The Initial package is all most people need to help them determine there daily finances. When you fill out the auto responder you will be offered an advanced course which you pay extra for. The advanced course is a course and an MLM program. I am an advocate of MLMs however; I do not know much about this program and find that getting into a MLM is a personal decision. It would be in my opinion if you are in financial distress this will be a hard program to start knowing you are in financial distress and will require some real salesmanship. If you feel you can achieve with this MLM try it. If it is going to sit in a closet you own an overpriced financial management program so do not get involved and opt out of the e-mails and the calls after you are secure with the original downloads. There is a money back guarantee on the original downloads.

Just to remind you that the initial seminars and workbooks you can use over and over again will help you keep focused in your debt goals. Remember being debt or financial free is the first step toward true wealth. As you get there will be opportunities out there with easier and more inexpensive MLMs or other programs to start. You will find out by continuing to read this blog in future entries.











Debt Goal is an online service I have given special attention to. To use Debt Goal runs along the same lines as the Debt to Wealth system but you set up an account online to pay your debt back. Debt Goal is easy to use and easy to set up. You just have to have a true goal in mind when you set your account up.
Debt Goal unlike the Debt to Wealth System uses the leverage of all your accounts to pay them off. This is a real simple method. Say you have three credit cards and a personal loan to pay off. You start off with the three credit cards with the minimum payment on each. As you pay down the credit cards that same payment stays the same using the extra money you have by not paying a minimum every month to leverage and pay down your debt faster. As with a personal loan you may want to pay it off in three years instead of four years, your payment get figured out on an accelerated scale leveraging the payment against the interest. Debt Goal thoroughly describes its program on its website.
-

To Look Into Debt Goal Click Here!

-





Here is where you can get free budgeting help. But when I say free budgeting help that means Consumer Credit Counseling will sit you down and help you with a budget and give you a financial analysis and proceed to give you advice. This is where you need to be careful. I am not saying that their advice will be wrong. That is quite the contrary. The advice they give you can be very beneficial. What I am saying is make sure their program is for you.

If you have more than $10,000 in unsecured debt and you are pay the default rate on that debt. This means you were a day late on your credit card payment more than twice I a calendar year you most likely are paying the default rate at around 30% annually. This means you are paying about $270 on that $10,000 each month in interest before even paying on any of the principal. This is why you feel like you are not getting anywhere in paying down the debt.

Here is what is special about Consumer Credit Counseling. With most of your unsecured debt they will work out for you a payment plan that reduces and / or eliminates the interest on that debt which helps you pay down the principal on all that debt for a lower payment to Consumer Credit Counseling. They take care of every creditor you listed with them for you monthly.

Here are some of the drawbacks; you have to prove you can pay the monthly payment. If you are late you can be removed from the program and be responsible for all unpaid interest because you did not follow the terms of the contract Consumer Credit Counseling agreed to on your behalf. Another drawback is you credit score will remain in the low 600’s during the time you are paying back the debts. You have to pay a $35.00 a month service fee to distribute your funds to Consumer Credit Counseling. And lastly you cannot apply for or obtain any unsecured credit from any sources or you will also be removed from the program, and you again will be responsible for any unpaid interest by defaulting on the promises made on your behalf by Consumer Credit Counseling.

If you are carrying debt you can afford you are most likely better off using Debt Goal or The Debt to Wealth System. If you feel you can live in the guidelines of Consumer Credit Counseling that is a good Choice also. I am a graduate of Consumer Credit Counseling of Delaware Valley and I have no regrets. Being a graduate proved to me with some discipline you can achieve financial freedom. However, If Consumer Credit Counseling is suggesting bankruptcy we will be discussing that and other alternatives in the next post.

Consumer Credit Counselling Main Site Click Here!
Consumer Credit Counselling Of Delaware Valley Click Here!

Do not forget to get you My Shopping Genie to help you with your search for credit counselors. My Shopping Genie lists all the Best Credit Counseling Locally in your search making your search faster and easier using your favorite search Engine. The best part about My Shopping Genie it is a Free Download with no strings attached.

This Week’s Rant

Filling out but being careful with using Auto Responders Part 3

If you do not like phone calls try not to fill out auto responders that ask for phone numbers. Try only to do the auto responders that only add your e-mail address (remember the Commercial e-mail account Idea from last week’s entry). Just remember if that auto responder has something that you are interested in and you do not want to give up your phone number you could be missing out on an opportunity. What you want to do is only try to fill out auto responders that truly have something to offer you. If this is a product or service you commonly use and you benefit by saving money, it helps you with your employment or helps you with your conquest to become financially free I can only encourage you to use that auto responder. If it is something you are just curious about and it has no real purpose in your life you are best not filling the auto responder out.

The one thing you have to remember. If because of auto responders you are getting bombarded with unwanted calls. Stay on the phone. At the point where the person who is calling takes a breath you be prepared with.

Here is your script:

I am sorry but I am not interested in your (product or service). I do not know how you got my phone number and I do not care. I am taking your number off my caller ID and if you call me again I will call the do not call list and seek to have action taken against you. Please take me off your list. Thank you!!!

That is your Verbal Opt Out and It Works!!!
If you keep on ignoring the calls they will not go away. Memorize that script and be firm with these sales associates. If they do not comply with your wish call the do not call list and report them. It is your right use it!
In coming entries we will give you some ideas on how you can do the something to deal with Debt Collectors. Below we do have a video that can help you in the meantime. We also have an E-book that may help you.

Beat The Debt Collectors Ez Forms Click Here!


View Some Helpful Video Below This Entry!

If You Are New To This Blog Go Back And Read These Posts:

Getting It All Back Together Again Click Here!

Let's Talk About Jobs Click Here!

Better Financial Planning Means Setting Goals And Better Time Management Click Here!