Peace of Mind

Are you experiencing the pressures of a foreclosure, bankruptcy, overwhelming creditors? If so, be sure to bookmark this blog and return often for words of encouragement and helpful tips from someone who has walked in your shoes. Remember.....stay encouraged!

Sometimes individuals come across our paths with life changing messages. While sitting at lunch with a certain deipnosophist, I was enlighten by a certain concept. It's the res nullius of worldly possessions. My friend shared two amazing statements with me.

1. One shouldn't attempt to hold on to anything that tends to cause added stress in one's life.
2. Everything in our seen world, given enough time returns to it's most basic form which is dirt.

Understanding the concept of res nullius affords us with peace of mind. Only God owns everything. Become free from the bondage of worldly possessions. One should invest in areas where moth and rust can't corrupt. By investing in one's spiritual growth and the spiritual growth of loved ones, the door way to eternal possessions can be opened.

So remember two things while enduring the stress and disappointment of losing worldly possessions.

1. This too shall pass
2. What does it profit to gain the whole world and lose one's soul?

Don't Get VamBoozled!

I was talking to a client today who informed me that someone from the city spoke to her and was going to help cure her arrears by adjusting her escrow account. I asked her if her payment included principle, interest, taxes and insurance. She said no. I then informed her that she did not have a escrow account to adjust and to be careful about calls from individuals who claimed to be able to cure her default judgement and stop her foreclosure for a fee.

Here's a few tips and guidelines to remember when facing foreclosure. The most important advice is to talked to an expert that honest and will advise you to your best interest. As long as you own the property, there's options available.

Also remember that your mortgage lien holder may not always choose the best alternative for your financial future. Many lenders are directing borrowers into repayment plans that defer past due amounts payable at the same interest rate but extended terms. The best solution for most borrowers in many cases is a total modification of current loan terms into a lesser principle amount or a lower interest rates.

Stop Foreclosure

"Nearly 1 in 10 U.S. homeowners faced foreclosure or fell behind in their mortgage payments in the first three months of the year, according to a report released Thursday, a figure that offers a look into the toll caused by the collapse of the housing market.
The first quarter marked the worst quarter for American homeowners in nearly a quarter-century, according to a widely watched report put out by the Mortgage Bankers Association, a trade group.
Both the rate of new foreclosures and late payments surged to the highest levels since 1979. The delinquency rate includes Americans who are more than a month past due on their home loans.
A breakdown of the statistics showed problems at nearly every level of the mortgage industry.
Of the 45 million home loans included in the survey, 6.35 percent were at least one payment past due, up from 5.82 percent for the fourth quarter. All figures are adjusted for seasonal factors." Per Chicago Tribune June 6 2008

The current economic shift has hit the subprime borrower the hardest. It could be referred to as a perfect storm. For most subprime borrowers, loan criteria was stretched when the initial loan product was initiated. Often income was either grossed up or not substantiated. Property values were sometimes inflated or since the inception of the loan have deflatuated. Credit scores have shifted from a required 500 mid score for 100% financing to the current 620 mid score for 95% financing with 100% programs joining the ranks of the dinosaur products. There's no more 100% financing programs.

So here's the problem......
Many subprime products were originated as 2 or 3 year fixed notes, set to adjust at the end of the term. Often they were products containing seller financed sub-ordinate liens set to balloon after a five year term. These same borrowers now are trapped in products with no way to refinance them.

Here's the cure.....
Very few individuals are aware of the little know secret of Loss Mitigation. I have personal experience that it does work. Loss Mitigation is a technique that can be used to lower you interest rate, lower your payment, even reduce you principle balance in cases where property values have erroded drastically.

For More info: On Loss Mitigation