Categories
Budgeting

4 Quick Tips to Stop Overspending

You may have been in a situation where you’ve planned to save some money instead of overspending it. You may have planned to buy only what’s necessary, stop eating out and control the urge to online shopping. Unfortunately, at the end of the month, you’ve ended up spending more than what you’ve thought you’d. Stopping overspending isn’t as easy as it seems to be and if you really want to save money, read on to know four quick and easy tips and tricks.

Why shouldn’t you overspend?

In spite of the fact that overspending is a ‘subjective’ term, most of us tend to spend more than what we should. Though it may not be easy to believe that you’re overspending, the earlier you realize the fact, the easier it gets in controlling your urge to spend more. If you’re one of those who purchase items because they’re passionate about those, ask yourself whether the product is essential for you in the long term. Also, ask yourself what happens if you stop overspending and start saving some money at the end of each month. The more you save, the more you can plan for your retirement, your child’s future and even a home for yourself.

#1 Keep a track of your expenses:

When you’re determined to save money, the smallest amount of expense should be tracked as it can make a huge difference in your monthly saving target. Besides, you may not notice the small amount that you keep spending each day on your roadside tea or bus ride till you realize that you haven’t reached the saving target of the month. Therefore, make sure to follow a daily expense sheet where you input the details of the smallest amount that you’ve spent. If you can cut down on your morning tea that costs 5 Rupees a cup daily, you can save at least 100 Rupees a month.

#2 Keeping a credit isn’t a credit:

You may feel that if you use the credit card to make a purchase in the heat of the moment, you’re doing the biggest mistake that must be stopped to stop overspending. Research says that it’s easy to follow a strict saving regime if you make your purchases using cash. While you’re handing over the cash, you can actually see how much you’re spending and what remains in your monthly fund. On the contrary, handing over the credit card doesn’t make you realize that the money you’re spending is going to add up in the monthly expense.

#3 Gauge your priorities:

Suppose you’re planning to buy a car that costs around 15 lakhs with your monthly saving of 25,000. You’ll pay 5 lakhs from your pocket and for the rest 10 lakhs, you’ll take a car loan. Now, your car loan EMI is around 27,000 a month. With minor modifications in your daily expenses and monthly savings, you can purchase your dream car. However, if you’ve been wise enough to calculate the future investments that include your retirement plan, child’s future, and other expenses, you wouldn’t have made the purchase.

#4 Financial goals:

If you set easy to attain financial goals, you can easily save as much as you’ve aimed at the end of the month. However, the goals should be specific and you must stick to the plan of stopping overspending to achieve the goal. You can stop overspending with time and dedication and change your spending habits to save more for your obligatory future plans.

Categories
Budgeting

Stop Alternating Credit Cards: It Can Ruin You!

Transferring the balance of a credit card to another to take advantage of promotional offers may sound as a good idea but it seldom is. Only those with a lot of discipline could take advantage of such offers and successfully benefit from them. But chances are that those with discipline hardly ever have high unpaid balances on their credit cards.

How Credit Card Debt Accumulates Even With Balance Transfers

Credit card debt will continue accumulating even if you transfer the balance from one card to another to benefit from a 0% APR promotional period. This is due to the fact that credit card companies will try to compensate the deficit by charging fees instead of interests, higher insurance charges, renovation costs, etc. Also, they usually have different rates for different purposes and thus, the 0% APR may be only for the transferred balance and not for new purchases that you make or the other way round.

If you make it a habit to pay only the minimum payment on your credit card, chances are that you’ll never be able to fully pay your credit card balance and your credit card debt will only continue to grow. Though there are solutions to this debt accumulation problem, the first step that you need to take is to acknowledge that unless you modify your behavior, credit card debt won’t be reduced.

Optimize Your Money Management

There are several techniques that you can learn that will help you manage your money more efficiently. These techniques are usually provided as part of the assistance supplied by credit counseling and debt counseling agencies and they include budgeting as the main method of maintaining a low debt exposure and a healthy financial life.

Budgeting is probably the first lesson that you will need to learn. You’ll have to train yourself in preparing spreadsheets and tables with your income and expenses as well as learn how to analyze this information. This will make it a lot easier to foresee future cash flow problems, so you won’t have to use your credit cards to solve them.

Conclusion

There are true solutions to credit card debt problems that, without doubt, do not include transferring your balance from one card to another. If you want a definite solution to your debt problems, you should better hire debt consolidation services, credit help or debt counseling so as to reduce your debt and modify your spending habits to avoid falling into the vicious circle of debt once again after obtaining some debt relief.

Categories
Taxes

Want to Stop Paying Income Tax in Canada? Become a Tax Exile

If you’ve been wondering how to stop paying income tax in Canada the easiest way is to become a tax exile by leaving the country. That’s not your only option, though and The Tax Collectors Bible explains what those are.

As for leaving the country, this might seem to be an easy task but unfortunately it’s not the case. The Canada Revenue Agency has a list of conditions (in the NR 73 form) that you must meet before you’re no longer subject to income tax.

This form should be approached with extreme caution. The reason why is this: In the Statement of Residency section is the question: “Are you subject to income tax in your new country of residence on your world income?”

This is where things get murky. Some time ago I was visiting the site of Alex Doulis, author of the runaway Canadian bestseller “Take Your Money and Run,” which tells the reader to get out of the Canadian income tax system.

On his website, Alex relates the story of a client who moved to Dubai, which has no income tax. When the client filled out the NR 73 form he received the following response from the CRA: “Since you’re not subject to income tax in that country, we consider you to be a factual resident while you’re away.”

This is totally insane. The CRA considers this guy to be a resident of Canada for tax purposes and they expect him to pay taxes in Canada even though he severed all his ties. Not only that, he’s not eligible to receive any Canadian services.

I immediately called Alex and asked: “Alex, this is entrapment, isn’t it?” “Yes,” he replied.

If you go to Alex’s web site you can read the whole sordid tale for yourself. The bottom-line is simple, don’t fill out the form. And if the CRA sends you the form, don’t fill it out. Never put anything in writing; it will only come back to haunt you with the CRA.

As it is, if you spend more than 182 in two years outside of the country you’re deemed to be a non-resident and you no longer have to pay income tax.

If your stay outside the country isn’t permanent. You could run into all sorts of trouble when you return and file your first income tax return.

Before you go on the road, check with an accounting professional. Beyond that, read The Taxpayers Bible. Without a doubt it’s the most complete source on Canada’s income tax system that I’ve ever seen. At 463 pages, it’s a storehouse of incredibly valuable information. I highly recommend it.

I also recommend two other books, both by Alex Doulis. The first is called: “Tacking the Tax Man” and it shows you how to protect yourself from audits and investigations. If you’ve ever been audited you’ll know it’s an unpleasant experience. This book informs you of your rights and how to conduct yourself around the CRA. The second book is: “My Blue Haven,” which is about the offshore and protecting your assets from the CRA.

Disclaimer: I’m not an income tax professional. If you have any doubts about what your read here, consult with a professional.

Categories
Taxes

New Bankruptcy Law Makes it Harder to Stop Foreclosure

On October 17, 2005 President Bush's sweeping bankruptcy reform law goes into effect forever changing the rules of debt collection in this natiion. Consumer advocates and the public appear to be completely unaware of the total and complete victory of the creditors under the new legislation. This article opens the door to the Trogan Horse so that consumers can prepare themselves for the worse.

The most important aspect of the bankruptcy code was the "automatic stay" provision. This allowed consumers to file for bankruptcy at anytime during the creditor's collection process putting an immediate stop to all contact and collection activities from the creditor. The new law requires that a debtor receive credit counseling from an approved non-profit credit counseling agency for 180 days prior to filing Chapter 7 or Chapter 13 bankruptcy.

While this may sound benevolent, a much closer look at the practical effect of this provision reveals the crafty peeling of the debtor's rights. The 180 day requirement is to provide the credit counseling agency the opportunity to work out payment plans with creditors. However, during this same period of time the creditor is not restrained from collection efforts. For example, Margaret is a homeowner in Jacksonville, Florida and is six months behind on her mortgage. As a rule, credit counseling agencies only work with credit card companies and have little or no training with dealing with mortgage companies.

After receiving foreclosure papers, Margaret goes to see her attorney to file for bankruptcy and is told that she must first seek credit counseling before filing for bankruptcy protection. Meanwhile, the foreclosure proceeds on schedule and a sale date is set 120 days later. However, Margaret still has not completed her 180 day requirement. What will happen to Margaret's home? That's right! The home will be sold and she cannot stop the sale by filing bankruptcy.

This is the most sweeping shift in debt collection in the past 50 years. Margaret's only hope will be to work out a repayment plan or a loan restructure with her mortgage company. This is a process called loss mitigation and is explained in great detail to consumers in our new book, How to Save Your Home, ISBN # 09753754-0-7, $ 19.95, SYH University, LLC, 2005 which is sold at Amazon.com.

Loss Mitigation works because lenders lose an average of $ 28,000 to $ 50,000 per foreclosure nationwide. It is a myth that the lender wants your home and makes a profit off of foreclosure. A lender has to pay attorney fees, court and collection costs, maintain fire insurance, hire a real estate professional, repair structural and other damage to the home, and pay property taxes. The homeowner can work out an agreement with the lender in over 90% of cases. Our company has provided housing counseling service to thousands of homeowners and loss mitigation absolutely works.

In conclusion, it is up to the consumer to educate and prepare themselves for worse case scenarios. How to Save Your Home is an excellent training tool and will teach homeowners how to protect themselves under the new bankruptcy law. Most Americans do not have health or disability insurance and are vulnerable to job layoffs because of a stagnant economy. Who amongst us is immune to heart attacks, business failure, strokes, law suits, tax liens or other challenges that life sometimes presents. One pay check is literally what separates many families from home security and despair and the new bankruptcy law will severely punish those who slip behind on their mortgage payments.

Categories
Investing

Budgeting for Your Writing Dreams – Stop Spending and Start Investing

There is no such thing as not having enough money to invest in your career. If you're spending, that means you aren't investing; and if you have goals of being a full-time writer, then you need to invest in your career.

I hear writers complain about not having money to do what it takes to build their writing career. Things such as investing in a writing coach, editor or books that will help them when they reach the point of publishing. Even the spirit that hovers over eBooks is somewhat daunting, leading people to believe that if the price is higher than $ 2.99, the book is too expensive.

Writing is hard, grueling work. Your work should be rewarded. But how can you expect readers or someone else to invest in your writing when you won't do so?

People spend more on coffee at Starbucks in one month than they do on putting gas in their cars. Think about it? A $ 5 coffee everyday for a week is $ 100 / month. You won't ever see that cup of coffee again. Yet you fret about investing in a writing coach who can help you finish a project you've set aside for the last three years?

Look at things that you spend your money on everyday and I guarantee you, you'll find at least $ 200-500 extra dollars a month that you can save. How do I know? Because I did it years ago. Between magazine subscriptions, eating out and just spending money, I was able to account for $ 300 that I could save.

In 2010, I started making no excuses when it came to budgeting for my writing dreams. If there was an $ 85 workshop, I did whatever it took to get the money for that workshop. You know what I realized? I simply cut out things that didn't matter in the first place.

Stop spending and start investing today. Here's some things to look at when it comes to budgeting for your writing dreams:

– How much money do you spend in a day (breakfast, lunch, dinner, snacks at work, etc.)?

– How many magazine subscriptions do you have that you know you can cancel (you probably don't read the magazines)?

– Are you taking time to find coupons for the things you buy every week at the grocery store?

– When you see a sale, do you have to buy that item or are you buying it because it's on sale?

These are just a few things to take inventory of. You don't need a money article to realize that in today's economy, investing is better than spending. Are you looking to be a full-time writer over the next two to five years? Then start budgeting for your writing dream today. It'll pay off.

Categories
Mortgage

HUD Refinance Programs To Stop Foreclosure

There are a number of programs to assist homeowners who are at risk of foreclosure that the Obama Administration has implemented. Many of these programs are administered through the United States Department of Treasury and HUD. Today I want to talk about what refinance or modifications programs that are available. Below is a brief description of these various programs.

Your first step should be to contact your lending institution directly about what programs are available to you. If you are experiencing a difficult time contacting your financial institution then go to the bottom of this article to get information on companies that can help you get in touch with your mortgage lender.

MHA Program (Making Home Affordable)

This is a crucial part of the Obama Administration’s broad strategy to assist homeowners is preventing foreclosure, while improving the nations housing market and still improve the country’s economy.

Homeowners can decrease there monthly mortgage payments and into a more comfortable loan at today’s historic low interest rates. For the hundreds of thousands of people out there who have an unaffordable mortgage payment, this program can provide an exit with out getting foreclosed on. There is even an option for unemployed homeowners along with homeowners who owe more than what there home is worth. Below is a list of various programs the government has to offer. I suggest you read through all of them and find a program that best fits your situation and needs.

Refinance or Modify Your Existing Loan for Reduced Loan Payment

1. HAMP (Home Affordable Modification Program): HAMP decreases your monthly loan payments to 31% of your stated monthly pre-tax income to make your payments easier to pay. The standard HAMP modification results in over 35% drop in your monthly loan payment. Eighteen percent of HAMP homeowners decreases there payment by $900 or more in some cases.

2. PRA (Principle Reduction Alternative): This program is designed to help homeowners who are more than what the property is currently worth to get the lenders to reduce the principle amount that is owed on the property.

3. 2MP (Second Lien Modification Program): If you are currently under the HAMP program on your first mortgage lien then you may be eligible to qualify for 2MP on your second mortgage lien. If you have a HELOC (home equity line of credit) that is making it difficult for you to make your monthly payment then you may qualify for a 2MP as well.

4. HARP (Home Affordable Refinance Program): This program is designed for homeowners who are current on there mortgage loan but are unable to refinance because the home value has dropped. HARP was created to help these homeowners refinance into a more stable and affordable monthly l oan payment.

If you are experiencing difficulties getting a hold of your mortgage company then click here to get more information on companies that can assist you in getting a hold of them.

Categories
Wealth Building

Building Wealth and Your Personal Values – How to Stop the Money Tug-of-War

Money is a singular thing.

It ranks with love as man’s greatest source of joy.

And with death as his greatest source of anxiety.

~John Kenneth Galbraith

HOW TO STOP THE MONEY TUG-OF-WAR

When your self-concept is at odds with how you feel about wealth, it’s hard to imagine yourself building authentic wealth. It can feel like you can either be true to yourself or become wealthy. No matter what you choose, you lose.

Even when you know in your mind that a person is both able to live her personal values and be wealthy, you may still feel that you don’t or can’t experience wealth. All the affirmations in the world won’t change that.

What does work is to drop the rope.

Do you remember when you used to play tug-of-war? It didn’t take long to discover that dropping your end of the rope caused your opponent to lose footing. The same principle applies when you are stuck in an internal tug-of-war.

HOW TO DROP THE ROPE

Dropping the rope is tricky when you are tugging on both ends. You can’t move toward authentic wealth if you keep holding onto both your current self-concept and your current beliefs about money. Something has to give, but what?

Since you are reading this, I feel pretty confident about your innate decency. I’m guessing that you care a good deal about living from your personal values and that part of what brings you pain around building wealth is that it seems you can’t be wealthy and honor your values.

Let’s assume that your personal values — the things you care about most and that you associate with being a decent human being — are authentic. Human beings are complex critters, capable of behaviors from stellar to, well, let’s just say less than admirable. Unless you consciously identify with your values, you can find yourself identifying with everything your inner and outer critics find wrong with you.

Authentic wealth begins with discriminating between competing self-concepts and choosing to identify with the one that is most life-affirming. Sure, you’ll still be subject to the indignities of human imperfection, but you will always have a home base to return to when you feel confused or at odds.

This is important because when you drop the rope I want you to be left standing. Right now you are caught between your idea of what it is to be happy and good and your beliefs about creating wealth. If you try to drop your beliefs about money by using affirmations and positive thinking or replacing your beliefs with someone else’s, your self-concept will absorb the recoil. Ouch!

And it doesn’t make any sense to just drop your self-concept, willy-nilly. As Byron Katie says, it just doesn’t work to try to live from someplace you’re not. As long as you need an identity, dropping it is a bad idea.

The solution? Drop both ends at once. When you shift your identity to your personal values, when you make a conscious decision to “come from” your best self, you can afford to question your beliefs about money and building wealth with an open mind and heart.

Opening your mind and heart allows you to drop your attachment to who you think you are around money. And questioning your beliefs from this place of openness allows the other end of the rope to drop at the same time.

You may be thinking that this is one to those solutions that is simple, but not easy. I disagree. The actions that result in letting go of both ends of the rope at once are available to you right where you are.

The key is to forget about the rope. Once you have decided to drop it, the rope is of no further use. Every time you look to see whether you are tugging on it or not, you’re picking it up again. For a method that works, read Keys to Dropping the Rope and Keeping It Dropped.

KEYS TO DROPPING THE ROPE AND KEEPING IT DROPPED

You need to drop the rope. You want to drop the rope. And then I tell you to forget about the rope. What’s up with that?

It’s not as crazy as it sounds. Dropping the rope is as simple as making a decision. I strongly recommend that you work on your self-concept and personal values, aligning it with your best self, before you make that decision so that you’ll have a firm basis for moving forward. Besides, it’s almost impossible to question your beliefs about money and creating wealth with an open mind and heart if you are mired in self-criticism.

The first key, then, is self-acceptance. Participants in the Authentic Wealth program learn a variety of tools for developing deep self-acceptance. One of them is a simple mantra: “When I experience and express myself just the way I am, then I change.”

The second key is to replace the rope. Nature abhors a vacuum, and so does your mind. If you want the rope to stay dropped, you’ll need to give your mind something else to do. Every module of the tele-retreat (see below) includes an extensive workbook plum full of new ideas, challenges, and exercises for your mind.

One of them is a daily practice I call Open, Accept, Wonder. Do it before you get out of bed in the morning.

Open. Start by bringing awareness to your body, just letting yourself be present to how it is right now. Open yourself to the intention with which you started this retreat.

Accept. Notice how it is with you and money right now, today. See if you can observe and accept your relationship exactly the way it is.

Wonder. Allow yourself to wonder in what ways this relationship will grow, deepen, or heal today.

This practice prepares your brain to notice and learn in ways that support a healthy relationship.

The third key is to shift focus. Before you dropped the rope, you were focused on the conflict between how you felt about yourself and how you felt about money and building wealth. When you drop the rope, shift your focus from conflict to relating.

Participants in the tele-retreat shift focus by keeping a diary of their relationship with wealth. This is not journaling! This is pouring your heart out on paper without reservation, as if you were a teenager in love. Give it a try and let me know what you experience.

The fourth key is repetition. You probably didn’t start tugging on the rope yesterday, and it’s going to take some time to get used to having dropped it. By repeating various exercises and practices and engaging in an ongoing conversation about the new relationship with money you are building, you move more and more firmly into the new way of being.

The fifth key is community. Most of us learned the money tug-of-war at an early age, absorbing it from our parents, friends, and the community. So much of the conflict is embedded in these relationships, that individual efforts to let go of the rope can be sabotaged. The support and feedback of others on the same path can make the difference between success and failure.

Prepare to be disoriented. If you’ve had an unhappy relationship with money, your beliefs about creating wealth are so familiar that it’s going to feel strange to drop them. When you feel shaky or confused, go to that place inside where you are whole, where you are nurtured by your deepest connections. Whether you find this place in nature, in spiritual practice, or some other way, going there is absolute best way to deal with disorientation.

Categories
Wealth Building

Wealth Creation, Becoming Rich and the Purpose of Life: Stop What You're Doing and Consider This

This sounds like a peculiar title for an article. What has Wealth Creation got to do with the purpose of life you might ask? I'm gonna argue that it has a lot to do with it. Wealth Creation at its core signifies the creation of something of extended value. It's amazing how much mediocrity we put up with. We don't really want to live humdrum lives. We put up with the humdrum just so we can enjoy exciting, meaningful and adventurous episodes in our life.

I like the broader, far-reaching concept of wealth creation much more so than narrow, limited notion of just making money. There is nothing noble in being superior or wealthier than someone else. But there is great nobility and purpose in being superior to your former self.

Simple, seemingly trivial acts like falling in love, dancing, listening to music and so on, I believe, have shared motives with earning more money, building a career, creating wealth ie the pursuit and expression of more life. The purpose of life is essentially to create and experience more life – to enable the true expression of life. Wealth creation in its fullest, broadest meaning fosters this expression.

The Purpose of Life

The meaning of life is that which you give it; but the purpose of life, it could be argued, is something altogether more certain. Your own individual purpose may take time to figure out as you journey through life but in general terms I think it's fair to say, your purpose is, to transform yourself from who and how you are now, to your next highest ideal of who and how you want to be.

Every parent wants to give their child more and better than they themselves had. This is a natural biological and sociological imperative. Every individual wants to give and have more life than they currently have. The attainment of riches and wealth is simply part of this expression.

Whilst transformation isn't exclusively the domain of wealth creation … if you are creating more life, creating more value than you will automatically become wealthier. So, in a sense, wealth is a measure of the increased value you create during your life, the depth and fullness of expression in your life and the fostering / creation of more life.

A Broader Definition of Wealth

Whilst wealth is most often associated with money and the accumulation of assets; I see wealth (and its opposite, destitution) as pervasive in everything in life; in people 's mindsets, in the way people behave, in the forces and laws of nature, and in every human interaction. For the purpose of this article, we are largely focused on the definition of wealth creation as associated with money and assets. However, it is worth bearing in mind that wealth is not merely about the accumulation of money and assets but also perhaps a reflection of something deeper, some inner drive and pursuit far nobler than we might think.

So, we don't have to limit the definition of wealth creation to pure economics. For the purposes of this article, we can say that wealth comes in many different forms. Life is not just about what you have or achieve; it's also firmly about who and what you become. Perhaps even more importantly who and what other people become as a result of your being.

In a sense, wealth creation is a measure of the length and distance you've come in life in all aspects …. personal growth and development, spiritual growth and development etc. Wealth doesn't just reside in your bank account; it's in your spirit, your mindset, your behavior and your actions.

The True Purpose of Getting Rich

The reasons for getting rich and wealth creation are much more than the simple attainment of money and wealth. Getting rich enables us to increase life and live more. I believe that one's desire for wealth and riches is rarely, if ever, specifically about the money, but rather it is a measurable way of expressing our desire for a fuller, better, more meaningful life ie the increasing of life.

Personally, I have no interest in money as a means of possession. My wealth creation pursuits are driven by a need to discover more life. Assuming, that your basic Maslow hierarchy of needs are satisfied (food, shelter, sex, love etc) … then the pursuit of money is matched by a pursuit of self-actualization. Continuous advancement and increase in life is what all men and women are seeking. People are attracted to those who can give them more of the means of life and this attraction will result in the creation of wealth and you becoming rich.

Concerning yourself with the attraction of money and wealth as a means to the experiencing and contribution to the extension of life is far more worthy pursuit than the love of money as a possession. What you want for you, you must want for everybody.

Creation Not Competition

It's called Wealth Creation and not Wealth Competition. We must create rather than compete for what is already created. If you look around you, you will notice that the most successful businesses in the world create value that is hard to compete with. People have a need to be creative and spiritual, rather than destructive and unspiritual. People are therefore attracted to creation. If your business is creative rather than merely competitive it stands a greater chance of success. The people who make the most money in the world are state changers; they create changed states, new experience, increased experience of life. They essentially give and promote more life. They create more value in life. Wealth creation in its fullest meaning not only creates wealth but also contributes to creation of more life.

That part of us that's always trying to articulate itself and connect back up with and join with some greater expression of life is a deeply spiritual force of nature that simply must express itself. To deny it, would be denying yourself of who you really are.

Financial Freedom – An Alternative Perspective

We often associate the expression "financial freedom" with some notion of limitless wealth and money. However, an alternative perspective on financial freedom is whereby your fullest expression of life is not limited by your financial circumstances. I would argue that, if your present financial circumstances somehow prevent you from allowing the fullest expression of yourself, then you will be driven by the pursuit of financial freedom and the creation of wealth to enable this. You obtain absolute financial freedom when you are certain that you can do virtually whatever you want, whenever you want, with whomever you want, in a way that empowers both you and everyone else.

In Summary

Whether you're herding goats in the Himalayas, working in a sweet shop on some street corner or trading stocks on Wall Street there's no getting away from the subject. Wealth creation is everywhere. People may have different ways of describing it (eg paying the bills, saving for a rainy day, building wealth, building a future, getting rich, making money, making ends meet, building a nest egg etc), however, essentially they are different ways of describing the same thing in accordance with your current circumstances. Why not give some thought to why you do what it is you do, what is the connection between your daily money-making pursuits and your deeper life purpose? Wealth creation is at the heart of the very purpose of life …. the true purpose of life is to create yourself as you want to be. The true purpose of wealth creation is to enable this for yourself … and for everyone else!

Categories
Mortgage

What Can Stop Foreclosure Cold That Banks Cannot Produce?

Get as much knowledge as you can as quick as you can if you are about to be involved in a home foreclosure process. If you are facing foreclosure, you need to take massive action and you need to do it now.

It is spooky and embarrassing to get a home foreclosure notice in the mail. This kind of fear can stop you from taking any kind of action when action is most needed. Massive and decisive action is needed now. Hoping for a miracle will not prevent the impending foreclosure auction. The homeowners “doing” is the miracle. Now is the time to mount a massive offensive action against the bank to stop foreclosure.

There are many ways of stopping the foreclosure process. Nearly any home foreclosure can be stopped with this one bit of information if the bank does not have it.

The keystone to all of this is the original contract. The mortgage is not a stand alone document. The original contract and mortgage together give standing in home foreclosures. Without the original contract, the mortgage is worthless.

If you use this key it could save your home from foreclosure auction on the courthouse steps. This key is an item that is often overlooked, however, it is the key to any mortgage and to every right of foreclosure initiated by the lender. The bank must have the contract for standing to process the foreclosure.

It is a powerful point to challenge home foreclosures because, most bank foreclosures go uncontested.

Often the contract has been lost or destroyed. Therefore, it cannot be be produced upon demand. This is very significant and important to your case. The difference between keeping the home or not could hang on this one little point.

The lender must produce the note/contract or offer an explanation why it cannot be produced. Usually something along the lines of a fire or flood destroyed it. Preserving it digitally then misplacing or destroying the original is normally insufficient excuse for non-production.

There are many successful challenges made every day and hundreds have already challenged the banks right to foreclose and have won. If you take action today, you may also be counted amongst the successful in beating home foreclosure.

Please note, an attorney did not write this. This are only an opinion and everyone has one. Prove all things for yourself. Do your research, then take action. These people expect most borrowers to roll over and play dead when it comes to home foreclosures.

If your idea of fun is to watch human cockroaches run for cover, just start asking bankers where your original contract is. But get some knowledge under your belt first.

Categories
Mortgage

Home Loan Modifications Glossary and Definition of Terms – Help to Stop Foreclosure

Our partnership group is in the business of helping troubled homeowners to stop foreclosure sale dates and help these homeowners to apply for Home Loan Modifications which lower interest rates and payments. We find that the terms we use to discuss this process for saving homes and getting homeowners back current on their loans are unfamiliar to most people. This is because they deal with the process of buying a home only very rarely in their lifetime.

Below are some of the most common terms for dealing with Foreclosures and Home Loan Modifcations

Foreclosure: This is a process by which your Lender repossesses your home when you default on the terms of the money that your Lender loaned to you to pay for your home when you purchased it.

Loan Officer: The Licensed Professional who helped you to arrange your loan and the terms of that loan.

Mortgage Loan Broker: This term applies to the company that the Loan Officer works for, and which arranged for a Lender to loan you the money to fund for your home purchase. This can be the same company as the Lender. You may have used a Mortgage Loan Broker to help you obtain a loan, or you may have used a Loan Officer who works directly with the Lender. Either way the money was funded by the Lender.

Principal Balance: This is always the amount of money that you still owe on your home after each payment. The Principal Balance is reduced with each payment by the amount of the payment which goes toward Principal Balance. Monthly interest is always charged on the Remaining Principal Balance and not on the original loan amount.

Promissory Note: The document that a Borrower signs, which is exactly as it sounds. It is your promise to pay the Lender back the money, that was loaned to purchase the house described and the terms of that loan. These terms would include items such as: interest rate; length of the loan; Principal (borrowed amount); Monthly Payments etc. Promissory Notes can be used for many other types of loans that homes and real estate. But Promissory Notes are always used for home purchases.

Interest Rate: This is the percentage rate that you are paying the Lender for using and keeping the money that was loaned to you. This interest usually charged as an annual rate, but paid monthly. The monthly payment that you pay includes both the payment towards the interest owed (this is the Lender’s profit) and payment toward the Principal Balance which remains to be paid.

Fixed Rate Loan: This is a loan that always maintains the same interest rate on the Principal Balance for the life of the loan. Most home loans are 15 year loans or 30 year loans. There are 180 equal monthly payments in a 15 year loan. There are 360 equal monthly payments in a 30 year loan.

Adjustable Rate Loan (ARM): Adjustable Interest Rate Loans (Adjustable Rate Mortgage) are known by their acronym

ARM. ARM loans adjust up or down according to the terms of loan. If the interest rate of an ARM loan adjusts upward to a higher interest rate, then your monthly payment will increase. If the interest rate adjusts downward to a lower interest rate, then your monthly payment will go down. Most ARM Loans are tied to other forms of interest, so they rise when interest rates rise and fall as interests rates fall. During the last 10 years, many ARM Loans were tied to time periods and would rise just because a certain time period had passed. These loans only go up and do not rise and fall with the economy.

Mortgage: Sometimes used to mean the same thing as the word “loan”, although this not correct. This is the document that you signed which created the loan and loan terms. This is recorded at your Courthouse and which the Lender uses to show why they are legally the Entity that loaned you the money for your house. This also is the document which contains the terms that allow the Lender to repossess your home if you do not pay for it. This document is usually used in States that use Judicial or “lawsuit” foreclosure. It typically takes longer to foreclose in these states, but can have greater negative effect on the foreclosed Borrower.

Deed of Trust: This item is a document similar to “Mortgage” above. It is used in Non-Judicial Foreclosure States. The Deed of Trust is a recorded document signed by you and the Lender which describes your Loan (Promissory Note) and gives the Lender the right to sell your home at auction if you default on your loan. In these States the Lender does not have to take you to court. A typical default would be a failure to make your payments on time to the Lender.

Home Loan Modification Process: The idea of Loan Modification is not new, but the use of it certainly was very rare historically compared to the wide spread use of the process today. Due to the very large number of badly written loans over the last 10 years and the very high current foreclosure rate, Lenders are seeing the need to try to get homeowners into monthly payments that are affordable. Each foreclosure costs a Lender a lot of money and hurts the value of homes everywhere. It generally believed today that changing some of the terms of a home loan to reduce the payment is preferable to foreclosure. A Home Loan Modification does exactly this, it changes the interest and monthly payment to keep the owner in an affordable situation.