How to buy a home

Buying a home can be a daunting task and rather overwhelming if you are not too sure what you are getting yourself into. Many first time home buyers run into minor problems when looking to purchase a home as they are just unfamiliar with the process and do not know what to expect. Here are a few tips that you can follow if you are currently looking to buy a home. (more…)

The Ethics Of Loan Modification

I heard a great interview on NPR radio yesterday. It was with another financial blogger with some common sense, Barry Ritholtz. Barry also recently released the book Bailout Nation, where he offers one of the clearest looks at the financial lenders, regulators, and politicians responsible for the financial crisis of 2008. In the interview, Ritholtz talks about the government sponsored loan modification programs, essentially calling them out for doing very little to help the homeowner, and an awful lot to help the banks. (Seems like we’ve heard that somewhere before… hmmmm)

You can read and listen to the full interview here

The main point of the interview, it that by artificially propping up real estate prices, you’re hurting the economy as a whole, and even if by doing so you do help the people who either bought more home than they could afford or the people with equity in their homes who would be hurt by dropping real estate prices, at the end of the day you’re ignoring the real problem – namely that the “equity” that was created during the housing boom was largely fictional anyway. With that in mind, the only way to truly fix this problem is to let housing prices get back normal, and that will only happen through defaults, principal reductions and short sales.

By promoting all these loan modification programs the government is basically allowing the banks to do whatever they want at the homeowner and taxpayer’s expense. Even those who get modifications will many times default anyway, either due to the fact that their homes are still grossly underwater in most cases, or due to the fact that they can’t make the new payment because of a change of financial situation. Whatever the case, we can say for certain that so far any government sponsored loan modification programs have been very expensive and have far undelivered given the results promised. Unfortunately, it seems that since our government refuses to listen to the lessons of the past, we’re going to be doomed to repeat them. As Mr. Ritholtz so plainly put it…

“There are a lot more effective ways to spend $14 billion than essentially rewarding the banks that were just so reckless and irresponsible. It just doesn’t make any sense.”

Amen Barry.

Jon Maddux


Credit repair after bankruptcy

In today’s economic recession it is getting very hard for the average consumer to manage their current obligations. Whether this be a mortgage, credit card, car loan, or any other type of debt, when someone finds it difficult to manage these payments they might find themselves with no other choice but then to file for bankruptcy. (more…)

Buying a Fannie Mae home

If you are looking to buy a home in this down economy, it is very important you take the time to search for the best deal available. With the housing market in such horrible condition it is not going to be that hard at all to find a killer deal on a property. Fannie Mae actually has a list of cheap homes for sale at HomePath that have been previously foreclosed on. HomePath’s main goal is to sell these properties as soon as possible to avoid negative impacts on the surrounding community. (more…)

What Happens If You Do Not Reaffirm Your Mortgage in Bankruptcy?

When you file bankruptcy and do not reaffirm your mortgage, your lender will report to the credit bureaus that it has also been discharged. When it is reported this way, it appears much like a credit card would be on a charged off account. Your lender will no longer be reporting to the credit agencies a negative or positive payment history on your account.  

Most homeowners are unaware of this as they continue making mortgage payments, thinking that they are rebuilding a new credit history after bankruptcy.

When you do not reaffirm your home loan obligation after bankruptcy, this means that you are not personally liable on the promissory note associated with your mortgage. Your home will remain under the original loan agreement as you resume making payments. The title does not change and you still own the home. You are just not personally liable. (more…)

FHA Will Dominate Home Loan Market

FHA stands for Federal Housing Administration and is part of the U.S. Department of Housing and Urban Development. FHA loans came into existence in the 1930’s during the Great Depression in order to allow lower income Americans to borrow money for the purchase of a home. The government program was intended to provide banks with adequate insurance to insure against mortgage defaults that were subsidized by the government. (more…)

Help! I need more ideas on how to sell my home

Many people are finding out that it is becoming more and more difficult to sell a home in this tough real estate market. People are starting to look for new and improved ways that will help them sell their homes quickly. While many of the old, traditional ways of selling a home are still effective, there are still some other ideas that you may might want to try for yourself. (more…)

Refinance a student loan

If you are going to try and get an education by going to college, especially private schools, you know that this process is definitely not cheap and in some cases can leave you in a world filled of debt. In reality, most people around America do not have extra funds to be spending tens of thousands of dollars each year on college tuitions. Therefore, the majority of people that attend college choose to take on a student loan to help them pay their way through the school year. But when it comes time to graduate and pay the loans back, many times students will have no idea where even to begin. (more…)

How can I fix my credit?

If you have recently run into some financial troubles I am sure you have wondered how you can go about fixing your credit.  While the best way to fix your credit is through the passage of time there are a few steps you can take that will put you on the right track to restoring your credit score.  Among these several steps are checking your credit score for accuracy, developing a budget, contacting your creditors and consolidating your debts through a second mortgage. (more…)

Learn to Live Debt Free

Learning to live debt free is easy. All you have to do is put certain measures into action and follow their progress. You cannot simply bury your head in the sand and hope that things get better. Being proactive is the key to success here.

Almost everybody has to live with debt, it just happens on varying levels of existence. Taking charge of your salary and putting it to work for you should be one of the first things you decide to do. Being able to put life into a financial perspective takes some training, but can be done. (more…)

Consolidate Your Debt – Live Smart!

When consolidating your debt, you have to make some decisions. You have to be willing to live smarter after experiencing your financial difficulties and persevere through the rebirth of your financial livelihood. What does this mean exactly? Consolidating debt can end up badly for people who don’t know the proper channels to go through. (more…)

Orlando Loan Modification Company & its Principal Served with Order to Cease and Desist

~OFR order prohibits The Loan Critics, LLC, and its principal
from providing loan modification services in Florida~
( TALLAHASSEE, Fla (March 25, 2010) – The Florida Office of Financial Regulation (OFR) issued and served an Order to Cease and Desist all loan modification services to The Loan Critics, LLC at 1737 Sunset View Circle, Apopka, Florida 32703, and James Palmer. The orders charge that the company is acting in violation of Florida laws (F.S. Chapter 494,) prohibiting unlicensed businesses or individuals from providing loan modification services.  (more…)

Can you repair an error on a credit report in time to save a job?

Your credit report is definitely something that can have an impact on your career, depending on your line of work. This is one reason why it is crucial that all of the information on your report remains as accurate as possible. Since you are entitled to one free copy of this report a year it would be wise to do this to make sure there are no mistakes and creditors are reporting accordingly. (more…)