.....This Mortgage... Cont'd

I’m Ready to Rent.......

If you can’t afford to keep your home, the next logical thing is to sell it. In light of the economy this may take a while, but here are some other options to ask your mortgage company about as well:


Short Sale: This option is available if you can’t sell the home for the amount you owe on it. Your mortgage company may accept less than the amount owed. Financial help may also be available to pay other lien holders and/or help towards some moving costs. You may qualify if:

1. The loan is at least 2 months delinquent
2. You (or your real estate professional) can sell the house within 3 to 5 months
3. A new appraisal (obtained by your lender) shows that the value of your home meets HUD program guidelines

Assumption: A qualified buyer may be allowed to take over your mortgage, even if your original loan documents state that it is non-assumable.

Deed-in-lieu of Foreclosure: As a last resort, you "give back" your property and the debt is forgiven. This will not save your house, but it is less damaging to your credit rating. This option might sound like the easiest way out, but it has limitations:

*You usually have to try to sell the home for its fair market value for at least 90 days before the lender will consider this option

*This option may not be available if you have other liens, such as other creditor judgments, second mortgages, and IRS or state tax liens

ARGHHH!! This Mortgage is Killing Me!!!

No need for a long outline of what is happening in the housing market of America, it is all over the news. If you are having trouble paying your mortgage, facing foreclosure or can just no longer keep your home, read on….

I Want to Keep My House:

First, make sure you can afford to make payments. I know it may be difficult to face the music, but you can’t let emotional ties, sentiment or image stop you from letting it go.

Ask yourself a few questions: Can I continue to maintain this house? After a restructure agreement is made, is the payment over 25% - 28% of my monthly take home? If the answer is yes and no respectively keep reading.

As soon as you are unable to pay your mortgage call your mortgage company. They will work with you. Your options to keep your home are most effective when you are only one or two payments behind. But if you are further along, there’s not time like the present to make the call.

Ask about these options:

Forbearance an agreement to let you pay less than the full amount of your mortgage payment during your forbearance period. Mortgage companies may consider forbearance when you can show funds will let you bring your mortgage current at a specific time in the future.

Reinstatement occurs when you pay your mortgage company the total amount you are behind, in a lump sum, by a specific date.

Repayment Plan is an agreement that gives you a fixed amount of time to repay the amount you are behind by combining a portion of what is due with your regular payment.

Loan Modification is a written agreement between you and your mortgage company that permanently changes one or more of the original terms of your note.


Resources:

www.fanniemae.com

www.hud.gov or 800-569-4287

Contact to find a Non-Profit Housing agency in your state. They can assist you by analyzing your financial situation or by helping you organize a budget to pay your mortgage and other monthly expenses.

In Michigan: www.michigan.gov/mshda - Save the Dream Program Counselors and resources, such as lower interest rates, to help residents save their homes.

Smilin' For the Camera

Tired of Living Check to Check?

We’ve all heard it - spend less than you earn, live debt free. But, how?

Years ago this question always befuddled me. As I was barraged with financial experts who had great ideas that mostly involved some form of credit, or investing money I didn’t have to spare. Saving money was a short mention and why worry when you can borrow your way out of any situation or into the latest greatest vacation, home, car, or whatever else you fancy?

Well here’s some practical advice for those of us who are tired of living check to check and in debt:

#1 Make a Decision

Decide to change the way you handle your money. Get rid of your credit cards, do not obtain any new debt and put your spending on paper - thus…..

#2 Budget - Yes - Just Do It!!

Develop a realistic budget – Each pay write down every single cent you plan to spend - from your weekly hair cut to your monthly bills. This is where the rubber meets the road. Don’t get discouraged by what you see, if you keep at it the outlook will get better.

#3 Save for Emergencies

It is important to begin to save at least $1,000 for the unexpected. Start slow; add all the extra that you can to this fund.

#4 Get Out of Debt

Once you have your initial emergency fund, begin to pay extra on your debts to eliminate them. List them smallest to largest and knock them out one by one. Give yourself a small reward after each one.. key word..'small'..think movies..not macy's.

Remember it’s not the amount of money you have, but the way you manage it!

-Dorethia

...livin' life on purpose