The Shocking Truth About Your Mortgage!
What your banker won't tell you?
This summer could be a foul season for many consumers followed by tumultuous times for the remaining years. The quadruple jinx of rising interest rates, higher credit card minimum payments, erratic fuel costs, and depressed home values could be the calamity for many families already living on the threshold of bankruptcy.
Americans who recently broke into overvalued home equity, at historically low interest rates, are now seeing a sign of things to come. In some cases, consumers may find themselves upside down, owing more than their home is worth. In other cases, low interest rate credit cards now mandate APRs at least four percentage points higher than two years ago. Plus, issuers have been forced by regulators to double minimum payments on some cardholders who are paying high interest rates.
But the real blistering is fuel prices which could now soar any day to any price. Paying $4 per gallon for gas, higher utilities, a 30%+ APR for credit cards, and clinging to a 100%+ home equity line of credit may push more Americans into foreclosure and ultimately bankruptcy.
Don't kid yourself on your current home situation. If you are upside down in your home, there is a clause in your contract with the lending institution that states that they can ?call' the loan in at anytime. That means quite simply that they can force you to pay enough to settle yourself into an equity position or foreclose on the home. Why would the banks do that?
Look at it this way.
Banks are in the business to make money, it's as simple as that. In addition, while you are mailing off your mortgage payment to Chase Manhattan, it may actually be forwarded to The Bank Of Beijing! That's correct. China now holds over 40% of American home mortgages.
There is a concrete reason that credit card minimums have doubled. The credit card industry will attempt to fill your head with propaganda such as: ?they are attempting to help consumers get out of debt quicker'. What they are really pulling off is this: when you can't make the minimum payment and contact them, they are now trained to look at your credit file and determine how much (if any) equity you might have in your home.
They then offer you a consolidation loan with their bank. Should you decide to take them up on their generous offer of a consolidation loan, they then own you. Should you default on your credit card, they can take the house! Beware of wolfs in sheeps clothing.
Another clandestine offer is consumer credit counseling. Every ad and commercial you will see for this service pitches themselves as a non-profit organization that was established naturally to help you get out of debt quicker, thus avoiding bankruptcy. What you don't know is that the non-profit consumer credit counseling industry if fueled and funded by the credit card industry.
They report to the credit card industry! They also will not make your monthly payments on time, thus ruining your credit history anyway. I have seen this time and time again, over and over.
This brings me to ARM's. In short, they are adjustable rate mortgages. Never in American history have we seen so many people with no credit files approved for home loans. Many of these people were innocently following the American dream and quite naturally, the American dream is to purchase as much house as you can afford for the longest amount of time.
Based on this fact, many people that could not afford that dream house under conventional financing were able to afford it by incorporating an ARM loan.
In the long run, this will come back to bite them hard. When they signed an ARM, they were betting that the interest rates would not rise during the next 30 years! When the rate does rise and their mortgage rises accordingly, we will start seeing the effects of this in the way of mass foreclosures. As of this writing, we are already at an all-time high for foreclosures starting with Indianapolis in first place, Atlanta in second place and Dallas-Ft. Worth in third place.
As rates continue to rise and jobs continue to be outsourced, we will see a plague of foreclosures that I predict will surpass the 1980's.
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Debt consolidation ? Options for Reducing Your Debt
Studies show that Americans are now saving less than ever before. Along with that, Americans are carrying a heavier debt load than ever. It's easy for a home loan, a car loan and a few credit card bills to get out of hand, and many people are struggling with more debt than they can easily pay. To make matters worse, new bankruptcy legislation will make it harder than ever to file bankruptcy for those who simply cannot pay their bills. There are a number of solutions available that allow most people to reduce their interest rate on their debt, reduce their total monthly payment, or both:
If you have been making payments regularly, and you haven't had a history of late payment, you may be able to lower your interest rate on your credit cards simply by calling your credit card company and asking them! It doesn't always work, but the market for credit cards is pretty competitive these days, and many lenders would rather lower your interest...
Bankruptcy > Debt consolidation ? Options for Reducing Your Debt
Katrina Casualties Could Speed Bankruptcy Of Social Security Benefits To 2008
Columbia, MD (ContentDesk)
October 20, 2005 -- At the rate of $3 million per month for every 498 individuals, as is being paid to survivors of 9/11, the Administration is on the hook for $4.4 billion per month - $52.8 billion per year- in disability benefits.The Administration now sends $100 billion a year to 10 million people.
Add to this the 15 million (20%)
out of 76 million baby boomers who will become disabled over the next 10 years, the inescapable conclusion is that the Administration will run out of enough workers to pay for the disabled and retiring 5 years sooner than the 2014 year previously forecast by the Government Accounting Office (GAO).
In a statement released in 2003, the Social Security Administration said that as of August of that year, monthly benefits are being paid to 498 individuals disabled by the terrorist attacks of 9/11, and 81 of their dependent spouses or children for a total of $3 million per month.
The Administration...
Bankruptcy > Katrina Casualties Could Speed Bankruptcy Of Social Security Benefits To 2008
Stop Foreclosure
For Immediate Release Contact:
Comprehensive Financial Planner
770-210-8797STOP FORECLOSUREHow Homeowner Can Save Their Home From ForeclosureDrive around and see how many signs you see that says House for Sale. How many lease purchases do you see? How many abandon houses are on your street? Our country is up against the wall with delinquence mortgages. FHA mortgage lenders are filing claims in the millions from HUD. How do I know? I counsel homeowners every month concerning their mortgage and what they need to do to protect their property and communicate with their mortgage lender. What is the cause of all these delinquence? There could be several reasons: Lost of a job, health issues, divorce, business failure & income reducing.
Before the homeowner even tries to save his/her home, they move out or better yet file bankruptcy. If they only knew what options were available to them, they stood a better chance of saving their homes.Some homeowners try to make an...
Stop Foreclosure
Bankruptcy > Stop Foreclosure
Bankruptcy Reform Takes Effect Next Week – What’s Left for Consumers?
(ContentDesk) October 12, 2005 -- Next week, on Oct. 17, new bankruptcy reform laws will go into effect, and many Americans who are reeling from financial turmoil face another shock: They will no longer qualify for elimination of debt through Chapter 7 bankruptcy protection. However, Bradford Stroh, founder and co-CEO of Freedom Financial Network, LLC, reminds consumers that choices do exist to eradicate debt. Weve heard reports of consumers rushing to file bankruptcy, only to be faced with lengthy waits, high legal fees and some firms taking advantage of their desperation, says Stroh. Bankruptcy isnt right for everyone, especially with the new means test for Chapter 7 protection. Fortunately, other options are available to help consumers get their financial health and well-being back on track. 1.
Chapter 13 bankruptcy Even with bankruptcy reform in place, Chapter 13 filings which require consumers to repay debt on a repayment plan will still be available to those whom...
Bankruptcy Reform Takes Effect Next Week – What’s Left for Consumers?
Bankruptcy > Bankruptcy Reform Takes Effect Next Week – What’s Left for Consumers?
Bankruptcy
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