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Struggling with your mortgage payment? Get help now

June 24, 2009

I’ve said it before, and I’ll say it again: If you are struggling to pay your mortgage, get help immediately!

The longer you delay getting professional help, the more difficult it will be to get the best solution possible for your situation.

An article in the Washington Post this morning gave some statistics that back up that thought.

According to housing experts cited in the article, 27 percent of homeowners who go to a housing counselor after missing three or four monthly payments end up in foreclosure. That number jumps up to 60 percent for homeowners who have missed more than four payments before getting help.

It is very important to understand that you do not have to be delinquent on your mortgage to schedule a foreclosure prevention counseling session. You can schedule a session if you are facing any kind of financial difficulty and think you might not be able to make your mortgage payments.

Advantage CCS has knowledgeable housing counselors who can help you. There is no cost for a foreclosure prevention counseling session. Our counselors are certified by the U.S. Department of Housing and Urban Development (www.hud.gov). 

There is no cost for the counseling session.

You can learn more about Advantage’s housing counseling services by clicking here. Or, call (888) 511-2227 to schedule a session.

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Pay homeowner association fees to avoid foreclosure

June 22, 2009

Right now many homeowners are concerned about keeping up with their mortgage payments so they don’t risk losing their home to foreclosure.

While it is critical to pay your mortgage, some homeowner’s have another payment to make that is just as important when it comes to avoiding foreclosure: Homeowner association fees.

Homeowner associations often collect a monthly fee from residents in developments. The fee is used for the maintenance of grounds in the development. This may include lawn service, pool upkeep and maintenance as well as any other upkeep costs for amenities such as tennis courts, gyms and recreational or gathering rooms.

According to the Community Associations Institute, there are 59 million Americans who are living in neighborhoods governed by homeowner associations. Some of these associations have begun to foreclose on properties to collect delinquent association fees.

If you live in a development that is governed by a homeowner association and you are having trouble paying your fees, talk to the property manager, explain your situation and see if something can be worked out. Don’t assume that those fees are something that can be ignored when you’re financially stressed. Failure to pay those fees can be just as disastrous as falling behind on your mortgage.

And remember, if you are struggling to pay your mortgage, there is free foreclosure prevention counseling available with Advantage CCS. Our counselors are certified through the U.S. Department of Housing and Urban Development. They can help you explore government programs to help you stay in your home. They can also work directly with your lender.

Call (888) 511-2227 to schedule an appointment.

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Don’t buy a home just for the tax credit

April 23, 2009

I was trolling the MSN Money Message Boards when I came upon a thread started by a couple that is considering purchasing their first home.

The biggest reason that I could glean from the post that they wanted to buy right now was to get the first-time homebuyer’s tax credit. Let’s face is $8,000 is an enticing sum of money.

However, it didn’t seem to me that the poster was being realistic about their situation.

The main problem was that both the husband and wife had very low credit scores, all three scores for both of them are below 600. Every situation is different, but the likelihood that a lender will give them a home loan isn’t very good right now. And if they do find a willing lender, the interest rate is going to be sky high.

Some posters suggested they look for an FHA (Federal Housing Administration) loan. While it is true that the FHA lending standards are different from going through a bank, even the FHA is going to take a hard look at their credit scores and financial situation. If you are applying for a government-backed home loan and your credit score is 660 or below, the government requires that you go through a housing counseling session with a HUD-approved (U.S. Department of Housing and Urban Development) counseling agency.

Advantage CCS is HUD-approved and offers these counseling sessions, known as “pre-closing counseling.”

I am worried that the new tax credit is causing people to lose perspective. It is a wonderful incentive for people who have strong credit scores and a decent down payment. It was meant to spur people to buy who are in the financial position to buy. It is not a good idea for someone who is not in the right financial position to buy a house just to get the tax credit.

If you get a home loan with a very high interest rate, there’s a good chance you will spend far more in interest payments than you would gain through the tax credit. And you can’t count on being able to refinance quickly. You could be stuck with that high interest for a long time.

If you are considering buying a home for the first time, call Advantage CCS to set up a counseling session to discuss your financial situation. A certified counselor will be able to help you determine if you are in a good position to buy a home. If you’re not financially ready to buy, the counselor can help you create a plan so that you will be able to buy a home in the future.

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Beware of foreclosure rescue scams

March 18, 2009

Any time the economy is bad, it opens the door even wider for shady businesses, scams and fraud.

Unfortunately, it’s no different during the current housing crisis. With the news of government help for homeowners, there are plenty of people who are ready and willing to take advantage of people who are in a vulnerable position.

Here are a few things that should raise a red flag when dealing with a company that is promising to help you with your mortgage:

·        The company solicits your business. Be wary of any company that initiates contact with you if you haven’t already contacted the company first.

·        The company offers to find out who your mortgage loan holder is … for a fee. You can find out who holds your loan for free. Fannie May and Freddie Mac have web sites to help you obtain this information. (www.fanniemae.com/homeaffordable) (www.freddiemac.com/avoidforeclosure)

·        The company is charging upfront fees and/or high fees. Reputable housing counseling agencies offer their services at no charge or for a minimal charge.

The Federal Reserve has also published a list of tips to help you avoid a foreclosure scam. You can find the list here.

The best place to go for help is to a non-profit credit counseling agency that is also approved by the U.S. Department of Housing and Urban Development to offer housing counseling.  Advantage Credit Counseling Service is a HUD-approved housing counseling agency that can work with consumers in Pennsylvania, California, Florida, New York and

Ohio.

If you do not live in one of those states, you can find an approved agency in your area at www.hud.gov.

These agencies offer housing counseling at no cost and can direct you to other reputable services in your area.

Also, before you do business with any company check their rating with the Better Business Bureau (www.bbb.org). And read all paperwork before you sign anything. Do not give out any personal information – like your Social Security number or bank account information – unless you are absolutely certain of who you are dealing with.

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Would you walk away from your home?

January 21, 2009

I’ve been reading a lot lately about people who are walking away from their homes, not because they can’t afford the payments, but because they don’t feel their homes are worth enough.

On the MSN Money Community message boards, it’s not uncommon to see the discussion pop up. The topic is usually brought up by a homeowner who is considering walking away. Sometimes the topic is broached by people who are outright frustrated watching people walk away from their homes.

Inevitably the debate boils down to: Is it wrong to walk away from your home?

NPR did a piece about this very thing nearly a year ago when the reality of sinking home values and foreclosures was really sinking in.

On MSN, Liz Pulliam Weston wrote an informative story about when to walk away from your home.

What are your thoughts on the topic?

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