Foreclosure Crisis

The recession is taking its toll. It is affecting people from all walks of life and it doesn't discriminate. This is evident in the foreclosure crisis being experienced in the real estate industry. Lenders and borrowers alike are being hit in every direction by the impact of the crisis. The recession makes it tougher for people to pay their mortgages, and the continuous drop of home prices have left many borrowers 'underwater', putting them in the position of owing more than the value of their properties, unable to sell or refinance their way out of trouble.

A lot of homeowners with mortgages are now behind in mortgage payments, even some are facing foreclosure. The government under President Obama is doing its part to curb the crisis with the $75 Billion “Foreclosure Bailout Plan” which aims to help millions of homeowners who are about to lose their homes refinance their mortgages. The mortgage bailout plan will allow 4 to 5 million homeowners refinance their homes. The $75 billion the President allocated will fund the reduction of monthly payments of home owners.

It is estimated that 2.2 million homes will be foreclosed this 2009 alone and not all of which will qualify for the plan because in order to qualify for Obama’s new refinance plan, your loan to value (LTV), cannot be any higher than 105%. So, if the value of your home is $500,000, your loan cannot be any higher than $525,000 (5% higher than the current market value). So that eliminates pretty much everyone who bought a home in 2004 – 2008.

For those who will not qualify for the plan, the options would either be to short sell, foreclose, or apply for a modification with their lenders. If you chose to short sell or foreclose, either way you would incur losses. The best way is to get a modification on your loan so that you may be able to save your house, update your mortgage payments, regain financial stability, and most of all get relief from the impact of the crisis the recession is causing.

Apply for a loan modification with the help of professionals who knows more about the system and can negotiate effectively with lenders on your behalf. Remember, it’s better to get rid of the problem before it’s too late.

Standard of Living Bubble

A standard of living is generally measured by standards such as real income per person and poverty rate. In most cases, people tend to forget that they need to spend based on what they earn. What normally happens is that consumers are living beyond their means for an extended period of time. This created the concept of the Standard of Living Bubble.

Standard of Living Bubble is the concept of consumers living beyond what they can actually afford. They are relying on credit to feel rich, instead of relying on increased real wages. People are spending more than they earned, more and more people are being sucked in a vortex of credit spending until such time that they become 'underwater in debt' and couldn't get out of it. Debts become unmanageable at the point that most of these consumers are now in a state of financial hardship.

Finding financial relief in this troublesome times is what most people are looking for right now in order to avoid bankruptcy. It would also be a relief to all consumers knowing that there is a way to make all their debts become manageable.

There is a solution to all this. A debt relief program designed to help consumers suffering from financial hardship. The program's goal is to reduce the overall amount of the debt, by negotiating payoff amounts with creditors. In exchange for an agreed-upon one-time payment -- for instance, half of what owed -- the creditor forgives the rest of the debt. It thus help consumers free up more cash instead of spending them on monthly payments.

Call us and see how you can get out from the effect of the standard of living bubble.

“Downturn in the Market”

There is currently a crisis in Real Estate right now being experienced in the United States called “Downturn in the Market”. It is a period of reduced activity wherein sales, development, or construction of houses are at such a low that there is an overwhelming fear among homeowners. The situation is an effect of the recession being experienced by the whole nation. Every homeowner, especially those who are in the brink of a foreclosure, is facing the dilemma of being in a position of owning an “upside down” property.

This greatly affects the value of an existing property wherein a homeowner who is behind on mortgages and facing foreclosure, would really be at a predicament to choose whether to risk foreclosure or sell the house which is on an “upside down” status or at a negative equity.

If this is the case, this homeowner might think that all hope is lost. Surrendering to the grave circumstance would be the only way. The truth is… all is not lost.

If you’re one of those who might think that there is no hope in this pitiful situation, you better think twice because there is still a chance for you to keep that priced possession of yours. If you’re:

* well-behind on mortgage payments
* facing foreclosure
* thinking of “selling short”
* having a financial hardship

We assure you that there is a better way out of this situation.

Call us and let us help you ease your mind on the current dilemma that you are facing.