prosperity's Blog

The 10 Most Common Mistakes Made By Homeowners Facing Foreclosure

Author: Dean Williams

As a real estate investor in Central Florida, I've come across many homeowners who are facing foreclosure for the very first time and they all seem to make the same mistakes. When you have fallen on hard times due to a job loss or a mortgage reset, it is easy to feel depressed, helpless, and think "I'll just let them take the house". But you must realize that there are many solutions available to avoid foreclosure and save your home! The following are common mistakes you should avoid in order to prevent foreclosing on your home:
 
1. Paying For Foreclosure Prevention Services
 
Search the Internet for "foreclosure help" and you are bound to encounter countless foreclosure agencies that, for an upfront fee, will stop your foreclosure. Their fees will cost you thousands and many of these agencies just take your money and let your home fall into foreclosure. What these agencies do is contact your lender on your behalf and ask for a lender workout. A lender workout is a relatively simple process that you can do yourself and save thousands in costly fees. If you are interested in learning more about doing a lender workout yourself, complete with letter templates, you should consider this lender workout foreclosure solution.
 
There are numerous foreclosure scams being run through direct mail and the Internet. Before you sign any documents or send a check to anyone, you should look the company up through the Better Business Bureau, Yahoo, and Google for complaints. If you are asked to sign a "Quit Claim Deed" or any other documents that transfers ownership of your home, you are most likely being scammed. Should the company or person ask for a large upfront fee with no guarantee or contract agreement that outlines the details of his or her services that should also signal a red flag. Hang up the phone and walk away. You should always see everything in writing and have written guarantees from anyone claiming to stop a foreclosure for you.
 
2. Ignoring The Lender
 
Believe it or not your lender is your best friend during foreclosure. If you are facing foreclosure, the lender has every right to your home. After all you did grant them a mortgage on your home. The good news is that your lender does not want your home; it simply wants you to make payments on time so they can get their money back. You should maintain contact with your lender and explain to them the reasons why you have missed payments. Your lender may consent to a forbearance agreement, loan modification, or a delayed repayment plan.
 
Your lender will want to work with you because if you do foreclosure it will cost the lender between $30,000 - $40,000, the lender is not in the business of owning real estate, and foreclosures on lenders' books makes it harder for them to obtain low-interest capital for future loan portfolios. Do not stick your head in the sand by ignoring your lender, educate yourself on your options and then contact your lender.
 
3. Feeling Overwhelmed And Not Seeking A Solution
 
More often than not homeowners in foreclosure have pressing day-to-day life issues, and are simply too overwhelmed to adequately find solutions to their foreclosure. Many then succumb to fraudulent foreclosure agencies or unscrupulous real estate investors who cost them their home. If you have no equity, no savings, and are one or multiple payments behind on your mortgage they are simple ways you can stop foreclosure or relieve yourself of that hefty mortgage payment and find something more affordable. You do not necessarily have to sell your home or if you must vacate it, you don't have to go through the trouble of waiting for a buyer and you can still save your credit for a more affordable home purchase in the future.
 
4. Not Taking Advantage of Government Programs And Resources
 
The Federal Housing Administration has designed a program just for homeowners who can no longer afford their mortgage because of an adjustable-rate mortgage reset, or homeowners who are in "interest-only" loans are may now have to begin to make principal payments. You can learn more about the FHASecure Refinancing program at  http://www.fha.gov  or search for FHA-approved lenders at  http://locator.fha.gov . You may also seek the counsel of a HUD-approved counseling agency at 1-800-CALL-FHA.
 
5. Not Having A Home Equity Line of Credit (HELOC)
 
A foreclosure stands a good chance of being prevented or delayed if a HELOC was established before the homeowner ever missed a first payment. Unforeseen events such as job loss or medical problems will make it difficult, if not impossible, to obtain access to low-interest lines of credit , so it is important to have a HELOC ready for emergencies. A HELOC should not be used for frivolous expenses, but for real emergencies such as medical expenses or fees associated with getting yourself out of foreclosure. In the event that you lose your job, you can use the HELOC to pay for necessities until you are back on your feet and can repay the loan. Most HELOCs do not have a monthly fee if you do not access the line, so if you are in a position to set-up a HELOC you should do so as soon as possible.
 
6. Spending What Money You Have On Other Bills
 
Though it may seem easier to pay your utility, credit card, and cell phone bills before you make payments towards your mortgage the reality couldn't be further from this notion. After 3 or 4 missed payments the lender has the right to "accelerate" or "call" your home loan and insist on getting all back payments at once. If you plan to keep your home you should cut all of you unnecessary expenses such as cable and cell phones so that you can devote what little money you have to pay for your house. There are many methods to prevent foreclosure, and will you need to have cash available to cover expenses. Keep in mind that in order to get the mortgage company's consent to a forbearance agreement or delayed repayment plan you need to prove to that you made every reasonable attempt to make mortgage payments.
 
7. Missing Bankruptcy Filing Deadlines
 
A Chapter 13 bankruptcy filing will stop foreclosure dead in its tracks. However, you should explore all other foreclosure solutions and consider bankruptcy a last resort. If you decide that Chapter 13 is the right answer to your situation, then you should be sure to meet all filing deadlines and make all payments outlined under the plan or may end up losing your home.
 
8. Not Moving Quickly Enough
 
Time is of the essence when you are facing foreclosure. Once you begin to miss payments the bank can accelerate or call the loan, and you will then have to come up with all of the back payments at once. Or, if you are in states such as Texas, it can be only a matter of three weeks before you are forced out of your home. You should be diligently seeking solutions for your foreclosure
 
9. Not Being Persistent
 
If you decide to do a lender workout you will have to put a considerable amount of effort into gathering your financial information, writing letters of hardship, finding the right numbers to dial, and having the patience to sit on hold for HOURS while you await your chance to speak with a representative from the mortgage company. This will be a very trying experience and there is no guarantee that the lender will consent to anything you may suggest. Before contacting your lender you should have everything you need in order, including the numbers to dial, to ease the stress of this entire process and you must be persistent with the representative you are assigned (if you even are assigned one).
 
10. Not thinking creatively
 
Many homeowners assume that if they cannot make payments on their home their only options are to foreclosure or file bankruptcy. And even still, many individuals are not even sure how to go about those options. Before you jump the gun and quickly go down the wrong path be sure you have explore all avenues to get yourself out of your situation. Have you considered renting? Selling a fraction of your home for the amount in arrears? Have you spoken with a reputable real estate investor who may be willing to negotiate a deal so you may keep your house?

Article Source: http://www.articlesbase.com/finance-articles/the-10-most-common-mistakes-made-by-homeowners-facing-foreclosure-427263.html

Author: Andre Miller

Previous Session Round-up

 In the US, looking forward after the financial turmoil, the Federal Reserve Bank of Chicago head said Tuesday, Nov. 27, that business investments may decline, while consumer purchases (including those by creditworthy consumers) of durables and housing units will also go down, leading to sluggish US economic growth.

The US Consumer Confidence Index plunged nearly 8 points from Oct 95.2 to Nov 87.3. This marked the fourth consecutive month that consumer confidence decreased. The Nov figure is much lower than the expected 91 and is the lowest level reached since October 2005. 

The credit crunch, continued weakness in the housing sector, and soaring oil prices continue to weigh heavily on consumer’s minds.

The S&P/CS housing price index again fell by 4.9% Y/Y in September in a continuing slide from -4.3% Y/Y in August. The labour market situation is currently mixed and uncertain, but forward outlook is not good.

Citigroup, America’s largest bank, which was badly hit by the mortgage crisis, revealed Tuesday it was set to receive 7.5 billion dollars in investments from the Abu Dhabi Investment Authority to shore up the bank’s capital.

In the EU, there was slight improvement in overall business confidence this month in Germany and France. The German IFO rose to Nov 104.2 versus Oct 103.9 which the IFO interprets as an indication of gradual cooling of the still-strong current economy. In France, business confidence also gained ground from Oct 108 to Nov 110. But in Italy, a slight deterioration in business confidence, from Oct 92.8 to Nov 92.2, led to the lowest confidence level reached since December 2005.

Germany’s preliminary inflation data for November increased more than originally thought at 0.5% M/M and 3.3% Y/Y, with the main drivers being higher prices for energy and food. The higher inflation in Germany puts more pressure on the ECB, caught between a slowing economy and a growing inflation.

But the better than expected business confidence levels in Germany, the volatility in the stock market, and the rising inflation buoyed the euro as it tested the 1.49 level. Towards the end of the session, the euro settled in the 1.4820 band, although US data remained weak. 

Brief notes on trades:

• EUR/USD at 23:10 GMT rose to 1.4832 dollars, up from 1.4826 dollars in late trading New York. 

• GBP/USD at 23:10 GMT was 2.0671 dollars, down from 2.0690 dollars, after a BoE member noted the inflation risk carried by higher oil and commodities prices. The speech dampened market expectations of the BoE cutting interest rates, pushing GBP lower. The weakness in the UK housing sector and uncertainty of BoE interest rate cuts may increase the chances of more GBP losses, going forward.

• USD/CHF traded at 1.1051 francs after the rallying US stock market triggered more volume in carry trade activity, weakening the CHF.

• USD/JPY was trading at 108.84 yen improving from 108.88 yen in late New York trade. Japanese retail sales enjoyed its third consecutive month of increases, rising 0.8% Y/Y in October. Overall retail sales had also risen at 0.5% each during August and September. However, large-scale retailers reported a slight 1.8% Y/Y decrease, after adjustment.

• A degree of bullishness buoyed up the AUD after Construction sector grew 2.8% in Q3 and the US equity markets rebounded. The Australian dollar reached a slightly higher level of 0.8768 US dollars from 0.8767 US dollars overnight..

• USD/CAD traded at 0.9961 as the slowing US economy fuelled concerns that the Canadian economy would be sluggish as well. Selling pressures on the CAD also came from retreating gold and crude oil prices.

Market Outlook

The EU economic calendar will release M3 money supply data today. No activity is scheduled in the UK economic calendar today. Yesterday, a BoE member highlighted two shocks that hit the UK economy: sharp increases in oil and certain commodity prices, and financial market crisis, both of which increase worries of inflation.

Close attention is invited on the US housing data and durable orders. Later in the session, comments from two Fed speakers and information from the Fed Beige Book (a preliminary document in preparation for the December FOMC meeting) should provide significant information. Durable goods are still expected to decline, perhaps by -0.1% M/M. Existing Home Sales for October are expected (5M units, -0.8% M/M) to confirm the softness in the housing market.

The Fed Beige Book may provide information about the stuttering economic growth, which may leave the door open to some easing in policy.

Article Source: http://www.articlesbase.com/finance-articles/forex-managed-account-nov-28-market-analysis-272358.html

About the Author:
At Fx Forextrading you find daily news about the forex industry! We also offer to possibility to  forex profiting  with  managed forex accounts

By Cameron Daniel

Don't get caught in the vicious circle of debt! The following advice will help you to GET out of debt and, more importantly, STAY out of debt.

The Background

Many families & individuals have a high level of debt, and for some repaying those debts can be a real struggle. It may be for a few months the debts are juggled around, cutbacks are made elsewhere & budgets are stretched in order to keep on top of repayments, but there will come a time when this leads to late or even missed payments, which in turn lead to further charges and a poor credit rating.

Consolidation Offers Hope

By consolidating your debts you can reduce the total amount you pay each month, the hassle involved in dealing with multiple creditors & even the interest rate.

Consolidating your debts simply means replacing multiple debts to multiple creditors with one new loan. This means you only have to deal with one creditor. It also means you only have one payment to make each month. Consolidation makes it a lot easier to keep on top of your debts.

Another key reason why consolidating your debts will help you get back in control is that many consolidation loans can be repaid over a longer period of time. This means that your monthly payments will also be lower. Bear in mind though, that repaying your debts over a longer period will mean you pay more in interest in the long run. This is why you should only consider consolidating if you really cannot afford to pay your debts. If you would just like some extra cash every month then going down this route will only lead to further problems as you get caught in the debt trap!

When you consolidate, you may also be able to take advantage of a better interest rate - instead of the high credit and store cards.

Consolidating - For Good!

So, now you can afford to keep on top of your debts, do not fall into the same trap as many others before you. The temptation is to think you now have more money to spend, forget about the old debt - which still exists of course, and start racking up new debt. Once you get caught in the trap of consolidating every time your debt builds up you will either end up bankrupt or at the very least be paying off these debts late into your retirement. Don't do it! Consolidate your debt and then stick to a budget while you pay off that debt. Only then can you consider yourself debt free!

If you would like more information on [http://www.freedebtconsolidationhelp.co.uk]debt consolidation click here. You can also benefit from general [http://www.debtadvice4free.co.uk]debt advice and guides on [http://www.diydebthelp.co.uk]DIY debt help using these resources.

Article Source: http://EzineArticles.com/?expert=Cameron_Daniel http://EzineArticles.com/?Consolidating-Your-Debts---For-Good&id=842077

Forex Brokers - The Perfect Service for Novice Traders

By Kelly Price

If you are considering trading with a forex broker, here is news of a service that is great for seeing if you have what it takes and is much more realistic than a demo account. If you are interested in trading and worried about the risk, then these accounts look a great way to get started.

A protected account introduces potential traders to the lucrative world of currency trading - but unlike a demo account, allows them to feel what trading is really like with limited risk.

For a set period they get to trade as much as they like with a set leverage and can even trade with a negative balance at the end of the set period - any profits the trader keeps any losses the broker covers.

Low Initial Deposit

These accounts can be traded with a small amount and the only risk is the initial deposit and unlike a real trading account, if you go debit you still can trade for the period the account is set up for.

Leverage and Low Risk

At any point during the two-week period, a trader may control up to 100 times his initial deposit, regardless of the actual balance in the Protected Account. The trader may make as many trades as desired, 24 hours a day, using any currency pair.

At The End of The Period - clients Takes Any Profits Broker Covers Any Losses.

Positions are closed automatically at the end of a set period normally after two weeks.

If there is a positive balance, it will be transferred to the forex trader's regular account. If there is a negative balance, the broker covers it.

Getting the Feel Of Trading With Limited Risk

A regular demo account, though a very useful tool, for learning a trading platform or the basics of trading does not simulate the feeling of trading real money.

A Protected Account acts as a step up between a demo account and a real one, providing an authentic trading experience, with managed risk which many traders want, so they can test their skills before opening a full trading account.

Any trader will tell you that trading with money on the line is totally different to trading a demo account, as your emotions are involved, discipline needs to be kept and this is why 90% of traders who win with a demo account lose real time. A protected account lets traders feel what its like to trade for real, with a small risk, unlimited trades and limited risk in the period which is a great way to see if currency trading is for you.

MORE ON PROTECTED ACCOUNTS AND BEST BROKER SERVICES
+ FREE ESSENTIAL TRADING GUIDES

For more on [http://www.learncurrencytradingonline.com/Best-Forex-Broker.html]Protected Limited Risk Forex Accounts and some essential trading guides visit our website at: http://www.learncurrencytradingonline.com/index.html

Article Source: http://EzineArticles.com/?expert=Kelly_Price http://EzineArticles.com/?Forex-Brokers---The-Perfect-Service-for-Novice-Traders&id=842405