Archive for September, 2007

Is now the time to sell your home or refinance??

September 29, 2007

With the housing market slump reaching a possible peak in the next 12 months, you have to consider whether now is the best ime to put your house on the market.

Many people have found themselves in a situation where they cannot sell their homes.

These are 500,000+ houses in the process of foreclosure and a glut of homes for sale currently.

This puts those in the need of selling there homes in a precarious position.

So, do you keep your house on the market and run the risk of losing it due to foreclosure OR do you refinance your mortgage to make the overall payments on your debt more manageable??

Great question BUT not an easy one to answer.

If you are having trouble meeting your mortgage payments and it doesn’t look like your situation is going to change in the near future, maybe it is time to think of changing careers and starting a business to generate new income.

An increase in income is an easier answer than cutting your bills.

There are many legitimate business opportunites today and ways to increase your income without a tremendous amount of upfront money.

Right where you live there are probably a number of ongoing businesses for sale that could help you increase your income OR just do something that you love.

Here is an example of a small retail tax preparation business that is for sale in a small town in Ohio.

Most people need an extra $500-750 per month and this would completely change their financial situation.

You should consider increasing your income first before making major changes by selling your home in a down market and refinancing when this may NOT even be an option due to lack of equity in your home.

Next time I will recommend (2) of the top places to go for credit advice and the best place to go if you are considering a refinance.

Until then.

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How will the Bush plan affect your chances of a Debt Consolidation Loan??

September 8, 2007

Over the past few weeks there has been much talk about a bail-out for mortgage borrowers that are behind on their mortgage payments.

Literally everyone is talking about this topic.

I get at least 2-3 emails a day addressing this issue.

George Bush discussed it and the government is making plans..

Bill Gross (manager of largest bond portfolio with PIMCO) said that borrowers need bailed-out NOT lenders!!!

Jim Cramer from CNBC mad-money had a meltdown the other day concerning Bernanke hestitaing in dropping the discount rate.

SOOOO— The question is: “Does all this really matter to you?” 

AND

“How does it affect your chances of getting a debt consolidation loan?”

Well, that still remains to be seen.

Lender’s have tightened their lending practices over the past few years and made it more difficult to refinance your home mortgage.

Obviously, there are good reasons for this to take place. If these practices would have been in place a few years ago we wouldn’t be talking about a sub-prime mortgage crisis.

The IS the “exact” reason for each of us to stay on top of our credit reports and make sure that we are making our payments on time.

Those with below average credit histories WILL have a tougher time lowering their interest rates and lowering their monthly payments UNLESS– The government has some type of plan to help out with this.. (Don’t hold your breath.)

Even IF they do come up with a plan, I am quite confident that it will NOT benefit most people.

So, what do you do??

It really depends on your individual situation.

IF you are currently able to make your monthly payments on your mortgage your obviously are in a better position than the MILLIONS of American’s that are currently in default. (90 days+ behind on their payments)

I ALWAYS hate to recommend belt-tightening strategies BUT in some cases there is no other alternative.

Sometimes cut your losses (sell the house, etc) is the ONLY option.

No matter what though, a “well thought out”, “clear cut” plan is the ONLY solution.

You must know where you want to be OR what position you want to be in before making ANY decisions.

The first step is:

-Organize eveything and come up with the total amount of debt that you have to be eliminated.

Write it down and post it somewhere just like you would any goal.

I want to know “exactly” what that number is so I know where I stand.

Once you have that number, then, and only then, can you begin orchastrating a plan.

The key is, to put yourself in a position so that it doesn’t matter what the economy does, or what any other outside influence does have an affect on you.

You want to be on the outside of all of this so that a government bail-out, the sub-prime crisis, the stock market dropping, recession ,etc has>>

NO AFFECT ON YOU..

Start today by organizing your finances and coming up the THE number.

Have a great weekend,

William L. Beavers