Economy Archives - Page 5 of 40

Another Loan Modification Tale

Actively seeking some success stories about the loan modification, they are few and far between. Instead we read about how one part of a mortgage company is uninformed about what the other is doing. Take for example the Franklin family of Airville, Pennsylvania. They applied for and faithfully adhered to the loan modification program guidelines. However, the day after Christmas they received a letter stating that foreclosure proceedings had begun. This after their credit was ruined and they ended up owing more than their original amount after months of paperwork and red tape.

The Red Tape Chronicles of MSNBC reveals that the company said a mistake had been made, but the Franklin family does not believe it,

On a single day in early January, she [Debbie Franklin] says, one Chase representative told her that the loan modification plan had been denied, another said it was approved and a third told her the foreclosure had been “suspended.”

“I check my county auctions every Monday to make sure my house isn’t on there,” she said. “I don’t believe anything they say anymore.”

My advice to the Obama Administration is to focus on real mortgage relief rather than just rescuing the housing market. There are people able to pay for mortgages but unable to refinance because homes are not worth as much as their mortgages. With a simple loan modification like reducing the interest rate, that $200 or $300 could be the difference between someone keeping or losing their home.

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Have We Hit Bottom Yet?

by Kathy T. Leave a Comment

Through the last two years, market leaders have said “This is it! We’ve reached bottom!” but they always leave the caveat on the table that “we just don’t know how long the bottom will last – is it V shaped or more like a U?”

The latest report that foreclosure filings have slowed brings new cries of “This is it!” except now we hear the cries as whispers,

But nationwide April foreclosure filings — notice of default, scheduled auction and bank repossession — fell 9 percent from March and 2 percent from a year ago.

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This was the first year-over-year drop since RealtyTrac started tracking annual foreclosure rates in January 2006.

I’ve also heard that a new round of foreclosures are coming, but the newest round is not because of predatory loans, but because of the economy. Where people lost jobs and consumer confidence dropped, people got in trouble. In the longer view, with economic indications showing some strengthening (the unemployment rate dropped) so the housing recovery should follow.

What doesn’t kill us only makes us stronger!

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Debt in Greece is Problem Everywhere

by Kathy T. 1 Comment

Say your parents have a lot of money. They hire housekeepers, gardeners, even a pool boy. But suddenly they can’t pay the salaries, they can’t pay their bills, they can’t pay for your new clothes – all because they are living on credit and this credit can’t be paid back.

It’s kind of the same thing happening in Greece. The dominoes are falling and they’re taking a lot of others down with them. From Longing for Home, John Vaala helps explain it,

The European Union on Monday made public its $1 trillion bailout of Greece and other potential defaults in nations such as Portugal, Spain, and Ireland saving, for now, the value of the Euro from deflating and igniting yet another worldwide monetary crisis.

What’s better is his link to this youtube video.

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Foreclosure May Not be Your Only Choice

by Kathy T. 1 Comment

I rarely cross-reference articles that I write for different sites, but felt this information about alternatives to foreclosure would be helpful to all readers. From banks.com, here’s just one option that is a possibility before a foreclosure becomes necessary.

Sell and Bring Cash to Closing – Sell the house, but take out another loan so you can bring cash to the closing. You may then just have to repay the smaller amount that you borrowed rather than taking a huge hit on your credit score.

Perhaps it’s not a great choice for a lot of people, but it would save your credit score. Read the entire article here.

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Wordless Wednesday: What Home Can You Afford?

by Kathy T. Leave a Comment

Can you afford the little dog house or the big one?

Photo by cogdogblog via flickr creative commons.

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It’s Difficult to Share Family Time with Strangers!

by mandianderson Leave a Comment

Just over two years ago, when my husband was presenting all the “perks” of owning his own business, the idea of having more time as a family really appealed to me. It was probably the biggest selling point my husband could present. I don’t believe that either of us were prepared, however, for sharing our family time!

Yes, I admit, we do spend more time together as a family. But very rarely do we do anything or go anywhere without my husband’s phone ringing. Nine times out of ten, it’s a business call that he “has to take”. At restaurants, movies, the park, family gatherings…EVERY CALL COUNTS.

One evening had been particularly rough, and the two of us were just sitting down to watch some of the many shows we’d recorded on DVR. About 15 minutes into our first show, at around 11:30pm, his phone rang. To say I was irritated is putting it mildly. He answered to find a very intoxicated man requesting a quote for a windshield replacement. Being the good businessman that he is, he looked up the part and price, and gave the man a quote. The man scheduled the job for the next day. My husband called me after doing the job to inform me that he had met his first customer who actually jumped up and down with excitement about having his windshield replaced! Yes…he was still drunk. But he was a happy customer, and we made money we wouldn’t have made if Patrick hadn’t answered that call. EVERY CALL COUNTS!

I am constantly reminding myself that the decision “we” made (in quotes because I only take responsibility for it when it’s good!) to become business owners requires us to be on call all the time. If we miss a call, the next glass company may get that job. And in this economy, we can’t afford that!

This is why Patrick carried his phone into the ocean this past June…he was waiting for a call. The call came, but several hours later when the phone was being eaten alive by the salt water after the largest wave EVER struck my husband…and his shirt pocket (where the phone was nice and safely waiting). By the time Patrick could get back in touch with the caller, all eight jobs had been contracted out to another company. EVERY CALL COUNTS!

So, do we enjoy our added family time…YES. Do we like sharing it with strangers? Not really!!! But we have learned rather quickly that owning our own business is not an eight to five gig! It’s all day, every day. The key is learning to appreciate what it means. Our business is growing. We’re making more money. We’re a step closer to reaching our goals. We’re succeeding!

Photo by Mykl Roventine via Flickr Creative Commons.

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Bad Credit History Can Kick You When You’re Down

by Kathy T. Leave a Comment

When people lose their homes, the dark times in their lives can eventually be overcome. By hard work, attention to bills, and saving when possible, a good credit score can be rebuilt. However, what people are only now realizing is a bad credit score doesn’t just prevent you from buying a home. Now low scores can prevent affordable purchases, dictate that you’ll live somewhere bad, and even stop you from getting a job.

Let’s say you need a car to get back and forth to work. A low score doesn’t necessarily mean you CAN’T buy one, it means that you’ll pay out the nose on your higher interest rate.

A low credit score and foreclosure will also be found if you’re renting an apartment or house. Savvy landlords check your payment history because they don’t want to become another statistic on your list of nonpayments.

What’s even worse – in my opinion – is that now employers check those scores, too. MSNBC.com reports that bad credit can become a barrier to finding a job,

There are no hard numbers on how often poor credit reports thwart someone’s effort to find a new job. Many applicants will never know; employers aren’t required to explain why a candidate was turned down for a job.

But a recent survey by the Society of Human Resource Management found that many employers use credit checks to screen job candidates. Of the roughly 350 employers who responded, 60 percent said they checked credit histories for some or all job applicants. That’s up from 43 percent in 2004 and just 25 percent in 1998.

A friend of mine just lost out on a job because of her credit score. She has worked for me in the past so I know from personal experience that she is smart, dedicated, and relentless in getting the job done. I’m sorry she won’t have the chance to prove this to the other would-be employer.

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State of the Union: President Obama Stresses Job Creation

by Miranda Marquit Leave a Comment

: Image by Getty Images via Daylife

Last night, President Barack Obama delivered the first State of the Union Address of his presidency. The centerpiece of the speech was the emphasis on job creation. Acknowledging that the economy still needs help, the President laid out plans designed to help encourage more jobs. In addition to highlighting some of the projects in the pipeline, he also pointed out that he plans to offer tax breaks to companies that hire more workers. Employment is a big deal, since it affects many other aspects of the economy.

Employment wasn’t the only focus of the State of the Union last night; President Obama also accepted responsibility for some of the mistakes he made his first year. He also reminded us that fixing two wars and a financial catastrophe is not something that can be done in only one year.

Other plans Obama offered included thoughts on developing alternative energy technology, education reform, health care reform and financial reform. It’s an ambitious list, but the President is in it for the long haul — however long the American people let him stay in for.

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State of the Union 2010: Job Creation a Key in the Coming Year

by Miranda Marquit Leave a Comment

: Image by Getty Images via Daylife

Last night President Barack Obama offered his first State of the Union Address. One of the main issues addressed in the speech was employment. The jobs situation remains precarious, and the President wants to show that he is listening to the concerns of the people. As a result, it is little surprise that he offered some plans to encourage increased job creation, including a plan for tax breaks for companies willing to hire more workers.

In addition to addressing employment, the President also stressed the need to develop alternative energy technologies. He also talked of education reform, health care reform and financial regulatory reform. He also made sure to take responsibility for his mistakes, as well as point out that some things couldn’t be avoided, and that there is still a ways to go.

In the end, it will be interesting see whether any of his ideas can be put into play. While the President does have some influence over the direction of some policies, the bottom line is that actual legislation is in the hands of others.

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Mortgage Applications Drop

by Miranda Marquit 2 Comments

: Image via Wikipedia

The housing market continues to struggle as home prices fall and mortgage applications drop. The Market Composite Index, which measures the volume of mortgage applications each week, dropped this past week. One of the biggest reasons is the fact that the refinancing portion of the index dropped.

Apparently, even though mortgage rates are low, people are reluctant to refinance their homes. This is causing mortgage applications to drop. Perhaps some are waiting to see if mortgage interest rates will drop back below 5%, since mortgage rates rose last week. Another issue is that home values have not been rising, and do get the 80% loan to value ration that many mortgage lenders are asking for is difficult.

Those with mortgages serviced by Fannie Mae or Freddie Mac, though, can take advantage of a refinance program from the government that allows a 125% LTV.

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