by SpringFour | Jan, 3, 2013 | Default
We here at MortgageKeeper are jumping on the resolution train. To have a look at getting our finances in order, we welcome Karen Carlson, Director of Education for one of our newest clients, InCharge Debt Solutions, as our guest blogger.
Top Five Money Resolutions for 2013
By Karen Carlson, Director of Education at InCharge Debt Solutions
Looking to shore up your finances this year? Become in charge of your money with resolutions you can take to the bank.
1. Pay off your credit card debt. If you are among the nearly 40% of Americans who carry credit card debt from month to month, it’s time to kick the habit and pay it off. If your total debt is less than 15% of your annual income, you should be able to pay it off in one year. Divide the amount owed by the number of paychecks you receive in a year. Pay your debt payments first, on payday.
2. Build an opportunity fund. Typically called the emergency fund, we like to cast money stashed away ‘just in case’ in a positive light. What opportunities could you take advantage of in 2013 or 2014 if you had money saved? Where could you go? What experiences could you have? Set up direct deposit from your paycheck to your savings account and put
your money where your dreams are in 2013.
3. Stop living paycheck-to-paycheck. What’s worse than working 40 hours a week for 10 years with nothing to show for it? Working 40 hours a week for 20 years with nothing to show for it. In fact, a large percentage of baby boomers have worked the majority of their adult lives and have accumulated little in the way of assets. Paycheck-to-paycheck living will rob you of the ability to save, invest and retire with dignity. Learn how to live with less. Be creative. Draw a line in the sand and find room in your budget this year.
4. Grow Your Income. As the unemployment rate drops, there will be more opportunities to work longer hours or pick up a second job. But recognize that the US job market is in the middle of a dramatic shift, toward jobs that require higher education and greater technological skill. Get educated. Get certified. Improve your income potential and employability, even if it means a temporary pay cut. Consider creating a job by starting a small business.
5. Reach Out When You Need Help. If you’re struggling financially and you need help, all you have to do is ask. Reputable nonprofit organizations are standing by to help you analyze your financial situation, make a budget and illuminate a path to stability. These include InCharge—who also make referrals using the MortgageKeeper data application to find local agencies that can help.
Making a resolution is the first step, but sticking to it can be difficult. Behavior change research shows that successful resolutions are followed by detailed action plans. This means committing to your resolution to writing, breaking it down into small ‘bite-sized’ goals (weekly milestones, for example), and tracking your progress. It’s okay to have a slip-up, but get back on your plan as soon as possible.
Good luck and Happy New Year.
by SpringFour | Dec, 17, 2012 | Default
Ah yes. There’s no place like home for the holidays. Many of us are cautiously optimistic that more struggling homeowners will be able to stay in their homes in 2013.
Why the glass-half-full thoughts? Foreclosure prevention efforts are making their mark. Reports hint that more jobs are out there. Foreclosure starts are at a 71-month low.
What keeps the glass only half full are some stats that give us pause…including some of our own. MortgageKeeper referrals are up–way up–at the end of this year. This is due to several factors, but also shows us that help is still needed. Stats from RealtyTrac show that bank repossessions are on the rise. So perhaps we’ve just been enjoying a foreclosure “holiday” while changes in servicing and foreclosure policies are implemented. As with all statistical information, time will tell if we are all-knowing or all wet.
From all of us at MortgageKeeper, we wish you the very best of holidays, and hope that 2013 brings more relief and assistance for those struggling to keep their homes.
by SpringFour | Dec, 11, 2012 | Default
Mistakes are the portals of discovery. ~ James Joyce.
Ah yes, mistakes. We all make them. We hate them–especially their inevitability. But even the most negative of folks know that they don’t leave us where they found us.
So it goes with the Housing Crisis. No matter what your politics, if you are servicer or foreclosure counselor, struggling homeowner or landlord, we can agree that the mortgage and housing markets needed to be repaired.
A recent article in The New York Times made us think about housing system flaws that are coming to the forefront. It discusses how a Catch 22 is sending quite a few widows into untimely foreclosure: these women can’t get help lowering their payments until they are named on the mortgage note…but they can’t add their name until they are current on payments.
No doubt surviving spouses have been battling this issue for years. However, it took the Housing Crisis, the focus on foreclosure, and the sheer number of victims to cause consumer advocacy groups and even some heavy hitters in the mortgage servicing industry to take notice. And change, while perhaps slow to come, is coming. Crisis always leads to opportunity.
by SpringFour | Dec, 3, 2012 | Default
After last week’s Thanksgiving feasting, we read a thoughtful article in the New York Times about hunger. It mentioned that 1 in every 8 Americans is hungry.
(This humble blogger once worked for an organization in Ohio that focused on feeding hungry children. There the stat for hungry children was 1 in 4.)
It seems inconceivable. With the focus on obesity and keeping weight down, it’s hard to fathom that others–likely people we see in line at the store, walk past on the street, or even work with–might be going without the food they need.
Here at MortgageKeeper, our experience supports these troubling numbers. Our application’s “food assistance” category is consistently one of our top 5 most utilized. Specifically:
* Referrals for food assistance have reached nearly 100,000 in 2012–an average of more than 300 every day.
* 14% of households who worked with a nonprofit financial counselor needed help to afford food.
* A straw poll of counselors who use our product validates a point made in the New York Times article: that many people–especially families with young children and seniors–don’t know that they qualify for food assistance.
This holiday season, instead of worrying about how to keep those extra pounds off, we do better by donating to our local food banks. Or, better yet, volunteering. We encourage you to find your local food bank and see how you can help.
by SpringFour | Nov, 7, 2012 | Default
This week, we present an interview one of our clients, Rick Harper. Rick is Senior Vice President of Program Services with Consumer Credit Counseling Service of SanFrancisco. He’s worked for CCCS since 1994, and holds his J.D. and real estate brokerage license from the California Department of Real Estate. We consider him a housing expert, and someone who understands first hand the impact of the housing crisis on struggling homeowners. We hope you enjoy his insights.
Some studies are showing the housing crisis is nearing an end, while others say it is still going strong. What’s your take on things?
Definitely we have seen less demand for foreclosure and loss mitigation counseling this year than in the previous four years. With that said, we anticipate 2013 to be another difficult year for over a million families who are still trying to recover from this great recession and who run the risk of losing their homes to foreclosure.
What’s the best and most rewarding part of the counseling process for you?
Recognizing and appreciating the successes that my staff has each day working with families who are struggling to save their homes. Our foreclosure prevention counselors have the hardest job within our agency. Every day they must face family after family in crisis. They are the real heroes and I take a great deal of pride in observing their genuine kindness towards the families who come to them for assistance.
What advice would you give someone who is struggling to pay their mortgage loans?
Seek help as early as you can in the process and don’t be dismayed if your initial attempts are unsuccessful. Contact yourlocal HUD approved housing counseling agency and/or call the 888 995HOPE hot line. The process itself eliminates many families that might otherwise qualify for assistance. It is heavily “paper laden” and as unreasonable as it might seem to a family in crisis, the collection and submission of this paperwork is absolutely essential. Without a complete package of documentation, no decision for help will be made. Every document requested, no matter how superfluous, must be provided. Families should seek out HUD approved counseling agencies for assistance with the documentation and the process in general.
How do you think local resources help struggling borrowers? Do you have any anecdotes?
Families in crisis often turn to those they know and trust as a first response. Local community resources can assist clients in crisis by ensuring that there is a safety net available. Some organizations can help transitioning families find suitable and safe rental housing, while other resources that help reduce the cost of things like utilities, prescription drugs, and good are great and have tangible value for many homeowners.
With changes made during the housing crisis, do you think struggling borrowers have more options available to them than before? Or is the climate for a struggling borrower unchanged?
There have been across-the-board improvements over the initial government programs designed to assist these families. The HAMP and HARP programs have been modified to allow a greater number of families to participate. Enhanced financial incentives to servicers with such incentives tied to specific timelines and outcomes, have also given rise to greater retention and non-retention options for homeowners. There has been an attempt at the standardization of the loan modification and short sale processes and this also has had a very positive impact. In summary,
there are more options today for the foreclosure counselor and his or her clients, than there were four years ago.
Who is your favorite James Bond?
This is a no brainer – Sean Connery – the original
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