President Obama's plans for the Consumer Financial Protection Agency could mean that debt relief is closer than ever for the downtrodden. (Photo: flickr.com)

The recession has forced America to face some of its most deep-seated systematic financial troubles. One thing that has become clear is that unscrupulous mortgage lenders and credit card agencies have dined for far too long upon consumers who largely didn’t understand that they could hold out for something better. Foreclosure and bankruptcy have amplified the burden on consumers, courts and the economy as a whole tenfold, which makes the question of how debt relief should be handled a more pressing issue that it has been in decades.

Cornell and George Washington Law School Economics lecturer and former professor Dr. Neil Buchanan ponders in a recent FindLaw column entitled “Should Federal Agencies or Courts Protect Consumers in Financial Markets?” which side of the regulatory coin America needs most. Existing regulatory agencies are being given more extensive duties by the Obama administration in order to help make America’s financial markets safe and sound. At the same time, new agencies like the newly minted Consumer Financial Protection Agency appears to be on its way to receiving unprecedented powers. In theory, it will have the power to police how mortgage lenders, banks, credit card companies, payday lenders or any other consumer finance company interacts with consumers. It is Buchanan’s opinion that allowing regulatory agencies to protect consumers is the best route, as relying solely upon the courts wouldn’t be enough of a deterrent to keep suspect lenders from indulging in bad behavior. The ideal system would have both in place as a regulatory enforcement clearing house.

But Isn’t This Big Government Clogging the Market?

Some will surely feel that way. What I have seen from state governments is an overzealousness to regulate payday lending, to the point where it is impossible for such legitimate businesses to operate in some states. Mortgage lenders and credit card company supporters would likely have similar complaints, although the path of destruction their industries have carved is rather hard to ignore. Buchanan begins his argument by considering the “courts only” option. If it were possible t regulating a market in need of deep repair like the mortgage industry through simple enforcement of the law, that would be ideal. However, Buchanan doesn’t see that as being enough. Sometimes the courts might work in favor of the consumer and debt relief, but not often enough. Extreme circumstances would be required to convince most judges to see cause to invalidate a contract. The “non-elite” consumers, as Buchanan calls those most in need of debt relief, would not receive the help they need.

There is precedent here, but it could be a one in a million kind of thing. Buchanan points to a New York Times story where a judge ruled that a homeowner’s mortgage debt could be completely discharged during bankruptcy. This loop in legal convention happened due to a technicality: the mortgage company couldn’t prove it had the legal right to collect payments on the homeowner’s mortgage due to the fact that their mortgage had been repackaged and resold so many times that the paper trail had been lost. The mortgage company claimed this was “standard procedure” now, but the judge wouldn’t accept such shenanigans. Since the judge wasn’t exactly sure who was due the money, he decided he couldn’t compel the consumer to make mortgage payments to any one party.

“Saved by a Technicality” Won’t Work for Everyone

Buchanan rightly points out that not all judges will be as determined to call mortgage lenders’ bluff in such situations. “Standard procedure” should hold in most cases, meaning that homeowners would still be legally obligated to follow the terms of their mortgage contract. And mortgage lenders have certainly learned something from that case and are making sure all paperwork is in order. Once again, the deck will be stacked against consumers.

Don’t Depend Upon Courts for Debt Relief

Courts enforce the law. When a consumer enters into any legal contract with a lender, the terms of that contract are in most case subject to enforcement by law. Buchanan considers the vast majority of consumers to be “grossly mismatched” against mortgage and credit card companies. Mandatory arbitration clauses, hidden interest spike triggers and means of computing interest are always written in the best interests of the creditor. Consumers often agree to such contracts because they feel they don’t have any other choice. New regulatory agencies may be able to curtail abusive practices that are currently considered legal, but until that time officially arrives, there is too little hope that the average consumer will be able to fight back through the court system.

Courts Have Been Friendlier to Finance Companies

Families can go to court to attempt to prove that they shouldn’t have to pay under the terms of less than legal contract. However, Buchanan believes most judges will stick to enforcing contract language. In turn, the lending companies themselves are effectively using the court system to compel consumers to pay, even if it is through wage garnishment.

What about “Equitable Doctrines” for Debt Relief?

Hoping that lenders lose their paperwork isn’t a good strategy. That’s where “equitable doctrines” come into play. These can create situations where courts might be willing to set aside otherwise valid contracts because they feel that it there were unconscionable circumstances that placed the consumer under duress or undue influence to sign. Buchanan draws our attention to the “doctrine of unconscionability” itself, claiming that it works in two ways. First, in terms of procedure, there is the scenario where a contract was formed under suspicious circumstances. Second, there is the scenario where the substance of a contract is deemed grossly unfair. If both conditions are met, a contract like a mortgage, credit card agreement, etc, will not be enforced.

Too Good to Be True?

Perhaps it is. It all looks great on paper, says Buchanan, but debt relief is hard to come by via equitable doctrines. Only the most extreme cases are considered by courts, and for most people, having trouble paying a mortgage or credit card they signed up for won’t be enough to sway a judge. This raises the question in Buchanan’s mind as to whether courts should be compelled by stronger legislation to accept equitable doctrine arguments based on things like unconscionability. But as with any other action fought through courts, the cost would likely be prohibitive. Moreover, lenders would still be favored because “losing a contracts case legally cannot result in a company paying punitive damages,” writes Buchanan. “If you lose a contracts case, you merely pay what you would have paid anyway; and if you win, you are ahead. Thus, from the standpoint of repeat players, there is no reason not to abuse your customers (except to maintain goodwill, which many of the companies at issue here have already forfeited).” Then there are plenty of consumers who simply will not have the stomach to sue or be willing to accept a lesser settlement.

Calling on the Government for Debt Relief

Traditionally, the government has remained behind the scenes while consumers have pursued their right to take debt relief matters before the court system. As Buchanan suggests, however, this route has not often proved itself to be effective for the average consumer. In situations where genuine signs of abusive practices and unconscionable contracts are involved, new government agencies could take up the baton and make financial regulation more consumer-friendly.

“An agency can be empowered by Congress to order changes in behavior, changing business practices broadly and generally in order to level the playing field on which financial institutions and their customers do business,” says Buchanan. There could even be scenarios where lenders themselves could support agency regulation over the courts. “Out of control lawsuits” that financial institutions claim burden them unnecessarily would certainly be something lenders would be willing to leave behind so that a regulating agency can rule on matters. “But that hypothetical,” Buchanan writes, “ignores the financial industry’s real agenda, which is to fight to maintain both weak legal rules (allowing them to win in court) and weak-to-nonexistent agency regulation.”

Congress, Act Now

New agencies are about to spring forth from the executive branch to regulate the financial abuse of consumers through deceptive practices. Congress is in a perfect position to arm these agencies with more consumer-friendly laws that will make reasonable debt relief easier to attain. It’s that kind of consumer protection that Neil Buchanan and most concerned consumers are in search of as America looks to emerge from the darkness of the recession into the light of a stronger domestic America.

Today the government announced unemployment figures for June that are much worse than expected. Employers cut 467,000 jobs and the unemployment rate rose to 9.5%, the worst since 1983. Unemployment is a lagging indicator, so even after the economy begins to improve, the jobless rate is likely to rise for some time.

With no end in sight to rising unemployment and with foreclosure rates continuing to accelerate, people are turning in droves to bankruptcy. You may find it humiliating even to consider bankruptcy, let alone join that crowd in the courthouse corridor, waiting for your name to be called. But with an economic tsunami rolling over your home, job, and health insurance, it just may be your best course of action.

The time comes when it makes sense to give up the good fight

Many people — honorable to the bitter end — struggle much longer than they should to rein in unmanageable debt. By the time they give up, they’ve lost valuable assets that would have been protected in bankruptcy, which defeats the “fresh start” purpose of the law. If you are a candidate for bankruptcy, the best time to file may be when you’re on the losing track but still have assets worth protecting.

It’s true that a bankruptcy filing remains on your credit record for up to ten years and makes it difficult to obtain competitive interest rates on loans. Most bankruptcy debtors, however, already have badly damaged credit records by the time they file.  When you are faced with insurmountable debt, a compromised credit rating can be a small price to pay for the fresh start that only bankruptcy can afford.

Before you decide to file, consult an experienced bankruptcy attorney

Bankruptcy is a significant and complicated legal proceeding. There is nothing to prevent you from representing yourself in bankruptcy court, but it is not wise to do so. When you represent yourself, you are held to the same standards of knowledge and practice as a licensed attorney. Knowing exactly how to navigate the intricacies of the Bankruptcy Code and several other bodies of statutory and common law is essential to an effective discharge of debts.

It costs nothing to get an initial consultation with an experienced bankruptcy attorney practicing in your jurisdiction.  It is vital that you receive competent legal advice before deciding whether bankruptcy is the right choice for you.

Looking at the numbers, bankruptcy may not be such a tough choice

An Associated Press analysis for the first quarter of 2009 revealed that U.S. bankruptcy filings were up an astounding 46% from March of 2008 to March of 2009. The jump is an even more dramatic 81% since March of 2007.  Some economists predict that the situation will become even worse.

A little over four years ago Congress enacted the Bankruptcy Abuse Prevention and Consumer Protection Act, also known as the 2005 Bankruptcy Amendment Act. Bankruptcy filings surged in the fall of 2005 to a record-shattering 2 million cases for the year as struggling consumers rushed to beat the implementation of the new law. In 2006, filings plummeted to 600,000. This year, bankruptcy filings are soaring again, and the predicted numbers for 2009 range between 1.5 and 1.6 million.

Elimination of debts in Chapter 7 may be an option even for higher incomes

The majority of bankruptcy debtors file under Chapter 7 which eliminates most (but not all) unsecured debts. When Congress enacted the 2005 Bankruptcy Amendment Act, it sought to restrict Chapter 7 filings by requiring debtors to pass a “means test” designed to weed out those who appear to have the ability to pay all or a portion of their debts under Chapter 13. Despite this hurdle, many people still qualify for Chapter 7 relief. Read Bankruptcy|What Should I Do?

The means test allows debtors to deduct certain expenses from their incomes. The greater the deductions, of course, the easier it is to qualify. Despite the congressional intent, the means test contains several variables that may enable people with higher incomes to qualify for Chapter 7. Debtors who own homes with mortgages may deduct the full amount of the mortgage. Having several children or dependants, multiple cars with loans or leases, high childcare and insurance expenses, and making large religious donations may also facilitate qualifying for Chapter 7.

Lenny Dykstra was one of my favorite baseball players. He combined speed, hustle, plate discipline and a near-fanatical desire to destroy his opponents on the baseball field. They called him “Nails” for a reason.

Like numerous other athletes, however, Dykstra took the unfortunate slide into financial ruin after his days on the field came to a close. For many, this happens because they never learned how to handle their money and their spending habits begin to outpace their income. Lenny Dykstra was successful in business for a time, but similar bad habits and (according to a recent HBO feature) aggressive disregard for reality and financial obligations. Now he’s living in a fantasy world where everyone else is at fault.

Don’t be like Lenny Dykstra, people. Pay your debts. If you need a little help to keep from going into debt due to a small situation that could cause big trouble if left unchecked, consider a cash advance or online payday loan.

(Not) workin’ at the car wash

Mark Kram reports for the Philadelphia Daily News that a new episode of HBO’s “Real Sports with Bryant Gumbel” will feature an update on a story they ran back in March of 2008 on former Philadelphia Phillies star Lenny Dykstra. As correspondent Bernard Goldberg will remind us, the outfielder-turned-businessman has been the target of 20 lawsuits that have come as a direct result of his apparent dirty dealings and deadbeat ways.

Dykstra has lived the high life on the promise that “I will gladly pay you Tuesday for a hamburger today.” Skipping out on checks, not paying for services employed and leading people astray in the stock market have become his pathetic modus operandi. Now the past has caught up with Lenny Dykstra, and he’s broke. To show just what kind of guy the chaw-gnashing, ex-car wash baron is, Goldberg will have a group of people appear during the segment who have been stiffed by Dykstra. According to Kram, one of these is a  flight attendant who claims “Nails” pounded her credit card for $10,700 to reserve a private plane. And that’s just the tip of the iceberg. Things have been on the rocks for Dykstra (perhaps literally, if you listen to him speak), and he has a divorce from his wife of 23 years and upcoming foreclosure on his $18.5 million estate to show for it.

A crazy scene

“Lenny? Anybody home? Hello? Mr. Dykstra?”

Nearly half an hour later, Dykstra comes downstairs. As Goldberg puts it, they launch into “something vaguely resembling a conversation.” Denials stain the walls like tobacco juice, including one that he doesn’t owe a penny of the $280,000 a magazine venture says he does. It goes something like this, writes Kram:

DYKSTRA: Who? Tell me who I owe?

GOLDBERG: Let’s go through a few people. The printers . . .

DYKSTRA: F— the printers. The printers are criminals.

GOLDBERG: The flight attendant?

DYKSTRA: F— the flight attendant . . . They all think they can come here and steal my money.

Not even plausible deniability

Just so you know that Dykstra still thinks he’s flying high (literally?), he flashes a wad of cash, similar to the silly graphics you occasionally find on cash advance and online payday loan Web sites. Not here, mind you.

It turns out to be $75, which Goldberg points out doesn’t make him rich. But Dykstra replies “I never carry less than $1,000. But flying high? Looks like I’m still flying pretty f—— high. And by the way, I’m flying higher.”

Not according to one of the panel of victims Goldberg interviews. A former personal assistant for Lenny Dykstra claims that she was constantly “consoling” cursing people to whom Dykstra owed money. This same assistant wonders why people ever put their faith in her former employer to make stock picks with his “Nails on the Numbers” venture. They “fronted [Dykstra] with the hope that [they] could trust him,” she says

By the way, the assistant won a $7,400 small claims judgment against Dykstra. He hasn’t paid that yet, either.

And he thinks he’s the victim

True, no criminal charges have been filed against Lenny Dykstra as yet. But can that be far behind?

He probably thinks Senator George Mitchell has a vendetta against him, too. You see, the performance enhancing drug report Mitchell compiled for Major League Baseball in 2007 happens to have Lenny’s name in it. Thus, he is marked as a steroid user. But Dykstra will deny he used until his dying day.

Nails swung and missed a lot

Getting back on the horse after a failure is a good thing. But if you swing and miss continually, you should at least take a look at your bat to make sure there are no holes in it. Lenny Dykstra owned three car washes in southern California that he sold for a reported $55 million. Tax evasion charges played a role in that decision. Then came Lenny Dykstra the publisher and Lenny Dykstra the investment expert. In both cases, huckstery and dereliction followed him (remember, he’s the VICTIM, not the perpetrator). All the while, he was investing in private jets, $400,000 German cars and his now threadbare estate.

And if Dykstra’s responses to Goldberg are any indication, he has yet to learn his lesson. At one point, he flashes a picture of a dog he plans to buy for $10,000.

“That’s a world champion, that’s the only dog I’ll buy.”

Know how you get to be a world champion? Through hard word, honesty and sound decision-making. A cash advance or online payday loan won’t make you rich and won’t make you poor, but used properly, they can keep a situation from pounding nails into your financial coffin.

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Fans of late night American television over the years have heard of Ed McMahon. He was the perennial straight man, a foil for the jokes of the all-time king of late night, Johnny Carson. Now like his leader in hilarity, Ed McMahon too has died. He was 86 years old.

If you could go through life with someone announcing your entrance in much the same way that Ed McMahon would joyfully exclaim “Heeeeeere’s… Johnny!”, wouldn’t it be fun? Everybody dreams of being somebody, and having someone like Ed prepping the room for you would be a hoot.

You know what else everyone dreams of being? Financially well off. Ed McMahon did well for himself during his career, but the lavish homes and lifestyle caught up to him in his later years. His mansion was foreclosed and his credit rating took a hit. It seems he even took it upon himself to go to the homes of Publishers’ Clearing House in an attempt to reclaim the giant checks he’d delivered. Sidekick’s gotta have money. I wonder if he ever tried payday loans for fast cash?

“HEY-oooh!”

Mark Silva blogs for Swamp Politics that Ed McMahon was “a sounding board for years of good, clean fun.” In addition, his product hawking was always received with good humor. Without McMahon’s endorsement of Publishers’ Clearing House, that would never have become the national name that it did.

But the Hollywood parties deep-sixed Big Ed’s finances. Instead of living a life of champagne wishes and caviar dreams, Ed McMahon had to rap for FreeCreditReport.com to recoup his losses. Friends don’t let friends rap for money, especially when they’re drunk.

President Barack Obama’s sidekick could take a few lessons in best-supporting actorhood, perhaps. Sen. John McCain, star of countless Saturday Nights Live, could use a straight-man. Alaska Gov. Sarah Palin, enacted so often on SNL, could use one too. House Speaker Nancy Pelosi could definitely use one.

For the president, it seems to be the reverse. He has to keep Joe Biden in line…

“I could give him a little help”

AP television writer Lynn Elber writes in Ed McMahon’s obituary that died at Ronald Reagan UCLA Medical Center after a hospitalization of several weeks. He was in the company of his wife, Pam, and family. Publicist Howard Bragman didn’t identify the exact cause of death, but he did say that Ed McMahon had a “multitude of health problems the last few months.” Apparently, one of the problems was bone cancer. He had also broken his neck in 2007.

This is the house that Ed lost

Illness made work difficult during Ed’s final years, and a lack of work led to financial difficulties.

McMahon and Johnny Carson had worked together on television since about 1958. He was Carson’s faithful straight man until Carson retired in 1992. In an AP interview the following year, Ed McMahon said that he was happy to have “hitched my wagon to a great star.” Graciously, he always kept his supporting role in perspective: “It’s like a pitcher who has a favorite catcher,” he said. “The pitcher gets a little help from the catcher, but the pitcher’s got to throw the ball. Well, Johnny Carson had to throw the ball, but I could give him a little help.”

You gave more than a little help. Rest now, Ed McMahon. Rest where bill collectors can’t find you. Payday loans for fast cash will be an option for those left behind.

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Legal-aid advocates are noting that elder Americans are being left out of the mortgage loan modification program due to their low-income status. An unprecedented number of elder citizens are facing foreclosure because they were sold loans they could never afford. Many times, they were sold these loans fraudulently and with intentional misinformation.

A few years ago, homeowner Carol Couts, a retired 66-year old woman, was cajoled into taking out a mortgage with payments well over her income. Her story began in 2005 when her husband passed away. She decided to take out a reverse-mortgage, in which she sold her home to the bank, and then received monthly living-expense payments. The deal worked well for her, on her $913-a-month social security income. Unfortunately, it was a shifty mortgage broker named Daniel Lewis who told her that banks were “cancelling reverse mortgages because they were unprofitable.” He claimed that her only option was to refinance or lose the home. This was not true but the fear of losing her home made the decision seem like a good one.

The red-flags soon started flashing when Couts reviewed documents she’d already signed. She noted her income was entered as $5,075 monthly. She also noted that all other information that pointed out her income and assets were left blank. Contacting Lewis proved no help, since he told her that there was nothing he could now change. Now, four years later, Couts has no way of making her payments and faces losing her home of 25 years.

Unscrupulous lending

Many elderly homeowners are finding themselves in Couts’ position. Most lived for decades, mortgage free, in their homes and had a good amount of equity invested in the properties. The critical dividing factor was that they had low-incomes, a large sector living on social security payments alone. These borrowers rarely qualify for mortgage loan modification programs because there is no feasible way to get payments low enough for them to afford, said Tara Twomey, an attorney with the National Consumer Law Center.

The only solution to this problem is to allow elder Americans to keep their homes, while lenders agree to abolish the fraudulent loans, or minimize the principal. Unfortunately most lenders are unwilling to do this, seeing the loss as too great in the midst of a recession. The push in legislation for this law has stopped due to its controversial nature.

What is being done?

Unfortunately due to the recession and other “priority” mortgage packages, elder Americans are finding themselves in difficult situations. When fraud played a part in getting the loan, there is still a very gray area for help. In fact, most defrauded homeowners get no help because many don’t even know they were defrauded. Law enforcement steps in to investigate when lenders are victims of fraud, not borrowers. There are a growing number of legal-aid offices that are taking fraud cases for borrowers, but the cases can be drawn out to well after homeowners pass away.

Hope for the future

Legislators are working hard to clean up the mortgage mess. They are trying to revamp the mortgage loan modifications program to aid as many homeowners as possible. Though the elder American is in a difficult position, there are a growing number of agencies becoming aware of the issue and stepping in to aid.

The falling real estate market would lead one to believe that houses are cheap, but if you‘re trying to sell and you have a mortgage to make, it sure doesn’t seem cheap. A payday loan can be a big relief. The most recent information sent from the National Association of Realtors shows real estate to still be soft – so soft that some homeowners are being forced to sell without a second option. Forced measures include home foreclosures and pre-foreclosures. And to avoid that pitfall, many homeowners are considering payday loans as a way out.

Picking a bargain house

This soft market makes it difficult for homeowners who want to sell their homes. It is likely that competition from home sellers forced into foreclosure will open a new door to getting homes sold. Just by pricing below their average selling price you could win. Numbers from the National Association of Realtors conclude that a total of 360,000 second-hand home sales were made last month. These numbers are drastic considering 375,000 homes were sold one year ago. These numbers account for nearly 53% nationwide of homes sold on foreclosures and pre-foreclosures. This includes all homes being sold nationwide. March ended up with over 190,000 forced sales. About 18% of 375,000 transactions only a year ago were distressed sales totaling 68,000 sales.

Distressed sales equals low-stress buyers’ market

Distressed sales are evidence that leveraged sellers are running the business at three times more sales this past year. Good news couldn’t come any sooner. That is what the economy needs to move the homes. The Association says distressed sales are showing a 20% drop in prices below normal sales. Despite the proven distressed market sales, there are still home owners who are stable that are selling their homes at normal market prices. This is what the housing market is supposed to consist of. But somehow foreclosures have changed the way people buy and sell. And the threat of foreclosure has given homeowners a new reason to consider bridging the gap between paychecks with a payday loan.

How long will homes hold their value?

With this tough market and economy, housing prices are still showing little decrease in prices. Some upper class neighborhoods are actually showing an increase in sales. Normal sales volumes are reaching low numbers day by day. 47% of normal sales consist of 360,000 second-hand home sales totaling 169,000 purchases. Is that a small amount? Well, last year accounted for nearly 87% of non distressed sales of 375,000 second-hand homes nationwide. This concludes with 308,000 purchases.

Luxury homes and neighborhoods are being labeled as quality homes that never fail. Even the most hopeful in the neighborhood is at risk for becoming part of the legacy of fallen real estate value.

Some homeowners can afford foreclosure

Many homeowners are choosing to save themselves and not wait on a government bail-out or a rebound in the real estate market. These customers are riding out the tempest of the economy by keeping their mortgages current through the discretionary use of payday loans – loans that can make the difference between foreclosure and financial independence. When the house payment is due and money is short, payday loans offer a fast, easy solution to a difficult problem.

We’re calling all bed-wetters and ambulance chasers.
Poor pick-pockets, bring ‘em in.
Come join the Youth and Beauty Brigade.

- From “Youth and Beauty Brigade” by The Decemberists

We’re all ambulance chasers, aren’t we? When the train wrecks, we can’t help but look. And when we do, we can’t look away. We also love the high and mighty in America; they are our royalty. But we love it even more when they fall from grace, when the train wrecks, when they plant face down on the steaming blacktop. If they need quick payday loans like we do to stagger to their feet, oh how juicy it is.

Mafia Princess Victoria Gotti is the latest member of the royal family to face hard times. Her Long Island mansion is facing foreclosure.

Even “stars” pay the piper

Lisa Colangelo and John Marzulli report for the New York Daily News that Victoria Gotti’s Old Westbury, Long Island mansion – the same one that was featured on the A&E reality TV series “Growing Up Gotti” – has barred the castle gates to its former princess. The late Gambino crime boss John Gotti’s daughter won’t get a mortgage loan modification from JPMorgan Chase. Victoria Gotti is behind $650,000 and hasn’t made a payment in two years, according to court documents.

JPMorgan Chase has been granted a summary judgment on the foreclosure. Currently, it is under consideration whether the six-acre property will be sold as one unit. The six-bedroom, seven-bath mansion is listed at $3 million. That’s after a $1 million markdown. Curse this stagnant home buying market…

“A booby prize”

Victoria Gotti blamed the troubles on ex-husband Carmine Agnello, whom she claims surreptitiously took a $856,000 loan against the castle. She became the sole owner in 2004; Agnello plead guilty to racketeering that same year. In the meantime, they defaulted on the mortgage during divorce proceedings.

“I won a house that was a booby prize riddled with debt,” Victoria Gotti said.

Make your payments

Agnello has since been released from prison, but Gotti says he still hasn’t paid alimony or child support. This is despite the fact that he is living well with a new wife.

“He still owes the federal government nearly $10 million and yet they still allow him to live this way?” Victoria Gotti said.

The yearly tax bill for the castle, which includes a stable and pond, is $92,000. Gotti says she managed to avoid foreclosure in 2005 when she paid $50,000 up front and agreed to continue paying $25,000 per month. Yet the payments stopped after a few months, which caused the banks mouth to water once more.

A new line of work

Victoria Gotti’s brother John Jr., who faces murder and racketeering charges, is also hurting for money. Thankfully a judge denied his bid for taxpayer funds to help his legal defense. Royals can only be given so much leeway. Then it’s time to get nasty.

Jessica Pressler blogs for New York Magazine that this may just be the perfect thing for Victoria Gotti. It’s all in how you work it, sister. Farsi bella; il mondo è in attesa per la sua principessa:

We know it feels like a booby prize now, but in reality this is probably a good thing for Victoria Gotti, who is, with her taut, fake-tanned skin, surgically enhanced features, and freakishly flaxen hair, the perfect spokeswoman for the overindulgence and overextension of the Boom. Really, just add some lowlights and contrition, hook her up with Countrywide CEO Angelo Mozilo for a couple of public service announcements (on mortgage loan modification), and it could revitalize her whole career. There really are opportunities in this market.

You had this ambulance chaser at booby prize…

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You may be facing insurmountable debt, the danger of losing your home or car, and continual harassment from debt collectors. Your struggles may be compounded by divorce, the loss of a job, uninsured medical expenses, or a combination of unexpected events. If you are in extreme financial distress, a quick payday loan clearly is not going to go the distance. But you know you need to do something.

Is bankruptcy the answer?

The two most common types of bankruptcy for individuals are Chapter 7 (where you can get rid of certain types of debts altogether) and Chapter 13 (where you can pay all or, more frequently, a portion of your debts according to a court-approved payment plan). To file under Chapter 7, your average monthly income for the six months immediately preceding the bankruptcy filing must not exceed the median income in your state. Alternatively, you may file under Chapter 7 if your income is insufficient (after subtracting certain expenses for basic necessities) to repay any part of your debts.

Ask an attorney

Determining whether you are a candidate for bankruptcy and whether filing for bankruptcy would be in your best interest requires in-depth legal analysis. Before you make a decision, be sure to get legal advice from an experienced and reputable bankruptcy attorney.

Chapter 7 debt liquidation

A Chapter 7 bankruptcy allows you to get rid of certain types of unsecured debts while keeping your exempt property. In many cases, you can keep all your property. Among the kinds of unsecured debts you may include are credit card balances, personal loans, debts remaining from repossessed property, utility bills, and medical bills. In some cases, you also may be able to discharge old income and property tax debts. Chapter 7 bankruptcy may be an effective alternative if you own little property and have an unmanageable amount of debt. Unemployment, unexpected medical expenses, and divorce are some of the things that can precipitate a Chapter 7 bankruptcy.

Chapter 13 debt adjustment

If you do not qualify for Chapter 7 and you have a regular income, you may be able to file a Chapter 13 bankruptcy. Chapter 13 involves a three- to five-year court-approved payment plan to pay your debts, or a percentage thereof, in an affordable manner. Chapter 13 may be an option if you are behind on your car or house payments and want to avoid a repossession or foreclosure. Or it may provide a manageable way to pay debts that you cannot get rid of in bankruptcy, such as taxes, child support arrearages, and divorce debts. Chapter 13 may also allow you to keep valuable assets that you would have to surrender under Chapter 7.

Life after bankruptcy

Although bankruptcy is designed to give you a fresh start on  finances, it will have a negative impact on your credit rating and can remain on your credit report for up to ten years. But if you are a candidate for bankruptcy, you are probably deeply in debt and behind on your  payments. As a result, your credit score is probably very low already. Improving your income-to-debt ratio by reducing your debt load can be the first step toward improving your score. Even if you have a perfect payment history, if you have more debts than you can pay using your income, you will have a poor credit rating and bankruptcy may actually be a positive turning point in your credit history.

If bankruptcy isn’t for you, read about other options in What Should I Do | Debt-Relief Options.

Even when a person is face with the loss of his or her home, a payday loan is the last thing they will consider. This is usually because they know it is a short term loan they will need to pay back usually with their next payday. Sometimes you may be granted an extension but it doesn’t change the fact they are still usually due within 120 days. At the same time, when you are facing the loss of your home they can help ease the burden by allowing you to borrow enough money to appease the mortgage company until you can develop a more permanent solution. It’s essential to stall the mortgage company in this initial phase in order to avoid legal costs that will increase the amount of money you will need in order to bring your payments current.

Can a payday loan provide enough cash to save your home?

Since many companies only loan up to $1,500 for these short-term loans, they may not help in every situation. Whether you will be able to borrow enough to appease your mortgage company depends on many factors including your payment history with the mortgage company. Those who have been on time in the past stand a better chance of stalling the foreclosure proceedings with a quick payday loan than someone who has consistently been late. This key factor is the ammunition the mortgage company uses in order to analyze whether it feels you are being honest about your financial hardship or are just looking for another excuse to explain your late payments.

Make a wise decision about borrowing money

No one wants to face the possibility of losing their home but you also must be practical when you are weighing the possibility of borrowing money to avoid foreclosure. If you are behind on your payments because you are out of work, it doesn’t make much sense to think of using a short-term loan to avoid foreclosure. In that instance, you may be better off to look toward something that will provide more relief and will protect you from foreclosure. You have to look toward the future when you make a financial decision and in the current state of the economy, bankruptcy is a more viable option for some.

Will a short term loan provide a temporary solution for everyone?

Foreclosures increased by 24% during the first quarter of this year. For those looking to buy into foreclosure property, that’s a positive thing but for those facing the loss of their homes, it’s stressful and humiliating. Though a payday loan may help those who have a steady income and just need some temporary funds until they can work out a solution; those who don’t have the funds or projected income source to repay the loan should not even consider it.

What happens if you walk away from your mortgage?

Many people are looking to online payday loans and mortgage loan modification to break the frozen finances deadlock. Sometimes it isn’t enough, however. People find they cannot shoulder the burden of tremendous mortgages, particularly for homes that have lost much of their value.

If you walk away from your mortgage, what happens?

That’s what Web sites like You Walk Away are designed to help with. There used to be a time when refinancing was the only option for runaway mortgages, but the board has changed somewhat. Now companies like You Walk Away work to “empower homeowners who purchased their homes at the peak of the Real Estate market to take control of their financial future.” You need to understand your rights in this situation, and You Walk Away can help.

But what if banks walk away, too?

Here’s where it gets interesting. In light of President Obama’s recent recent directive to give defaulted homeowners a break during this difficult recession, many banks have stopped going after homes in foreclosure. Edward Harrison blogs on Credit Writedowns that people are unexpectedly being left holding the bag. A recent New York Times story tells the tale:

Mercy James thought she had lost her rental property here to foreclosure. A date for a sheriff’s sale had been set, and notices about the foreclosure process were piling up in her mailbox.

Tenants moved out, and the property fell into disrepair. Vandals had their way with it, too. Ms. James never anticipated what would follow:

The City of South Bend contacted her, demanding that she resume maintenance on the property. The sheriff’s sale had been canceled at the last minute, leaving the property title — and a world of trouble — in her name…

… banks are quietly declining to take possession of properties because the cost exceeds the value of the Real Estate… bank walkaways rarely mean relief for the property owners… often (they) mean additional financial burdens and bureaucratic headaches. Technically, they still owe on the mortgage, but as a practicality, rarely would a mortgage holder receive any more payments on the loan. The way mortgages are bundled and resold, it can be enormously time-consuming just trying to determine what company holds the loan on a property thought to be in foreclosure.

What’s a consumer to do?

A good solution to this conundrum has yet to be found. Consult a mortgage loan professional and see what option is best for you.

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By now, we all know that the housing bubble in America has burst. Refinancing isn’t as valuable a move as it once was, so many families look to payday loans for short-term aid. The housing collapse is catastrophic for all the homeowners who have lost tremendous value, but a boon to home buyers looking for a beautiful home and significantly decreased cost.

Paul Vercammen and Ted Rowlands report for CNN that Lake Elsinore, California is turning out to be a great place to buy.

Large, affordable homes

The reporters give the account of the Lepley family, who just moved into a 3,000-square-foot home in January 2009. They purchased the previously owned home for around $250,000. However, the shock comes when you learn that only two years ago, when California’s housing boom was on, the very same house sold for $550,000.

“My heart goes out to everybody that lost their home [and] lost their jobs,” says Derrick Lepley. “I’m real sympathetic toward them. But the reality for us was, if this didn’t happen, we wouldn’t be in this situation. We feel fortunate.”

Many others are taking advantage

A recent private report has shown that housing prices in 20 major cities have fallen to record lows, on average 19 percent lower than the previous year. Since the peak period of Q2 2006, prices have plunged 29.1 percent nationally, according to the S&P Case-Shiller Home Price Index.

Lake Elsinore is in Riverside County, California. The county one of the hardest hit in America’s foreclosure debacle. The scenic community is 70 miles southeast of Los Angeles. Currently, nearly 23,000 homes in Riverside County alone are listed as “bank owned.” One in 80 is now in foreclosure, according to the county assessor’s office.

The other side of happiness

Neighbors to the Lepley family are Frank and Leslie Aceves and their two kids. Their situation is the exact opposite, as they’re fighting to “short sell” their home so that they can avoid foreclosure and repossession. They bought their 3,500-square-foot home for $620,000 only a few years previous. A home across the street of similar size just sold for $267,000.

“We just didn’t think it would happen,” Leslie Aceves said. “We just thought it would stop somewhere.”

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Sadly the economy is in a downward swing and more people have to rely on a cash advance loan to keep their homes out of foreclosure. As difficult as it is to think of resorting to borrowing money to cover the mortgage payments, it is far less expensive than the alternative, foreclosure.

Keep in mind that in addition to losing any equity in your home, you will also be faced with foreclosure costs, the expense of finding somewhere else to live, and the loss of your credit rating. For some people, it can be detrimental to their feeling of self-worth thus creating a sense of depression and worthlessness that makes it difficult to regain financial security.

Consider your options

With economics being as they are, many people are in a position at the present time where they lack the funds to meet their mortgage payments. Although it can be a stressful situation, it does not have to be hopeless. It is important to look at all of your options rather than to throw up your hands in despair. You want to sit down and discuss some options and hopefully avoid filing bankruptcy just to save your home.

There are other ways to maintain your financial security for the short term such as discussing the situation with your lender to see what kind of terms you can work out. The economy is not in the best of shape right now with several states reporting double digit unemployment figures so lenders are not likely to want to take your home into foreclosure and face a potential loss. A cash advance loan can help you keep the lender appeased until you can work out more permanent and suitable arrangements.

Making the right choice

Look over your financial situation and your potential for income stability before you make any kind of a decision. With so much unemployment facing the country, you do not want to take advantage of a short term cash advance loan unless you know you are going to be able to repay it.

These short term loans are usually not intended to extend beyond 14-120 days, so you have to keep that in mind when you are searching for a way to find relief from your current financial crisis. There are several things you want to do before making a decision:

• Evaluate your current financial situation
• Analyze your future earning potential
• Review your circumstances over the past to determine why the pattern for financial instability exists
• Develop a plan that will allow you to reconstruct your debt and maintain financial stability

There is no one solution that is going to work for everyone but the one thing that is essential for everyone is the analysis of the situation in order to determine the best way to approch the situation and prevent your home from going into foreclosure. The sooner you can make that determination the sooner you will be able to work out a solution that is more permanent than what a short term loan can offer.

Many of us might have considered taking a personal loan for different occasions. The economic fluctuations are affecting people from all walks of life. All over the country, and all over the world, people are suffering from this huge impact. Some who own businesses have no choice but to close down, while others who work for companies are laid off.

Get a personal loan

It is nobody’s fault. If you check the history of the United States economy, there are always times when funds are low. We are assured that we can move on and start anew, but the question is: when would that be? Right now, we are bombarded with financial difficulties in our household. The home mortgage is on the brink of foreclosure and the household income is not enough to pay all the bills. At a time like this, is there any answer? What is the solution for this situation before it gets any worse? The answer is simple. Get a personal loan.

Online personal loans are quick to obtain

The best thing about getting a personal loan is that it will not take long. Some loans take several weeks or even months to get approved, but personal loans are different. If you apply for a personal loan online, the faster it would be. Money is not the only issue but your time is too; especially if you need to get the money as soon as possible. One of the most reputable online companies through which you can apply for a quick personal loan is personalmoneystore.com.

Benefits of having an online personal loan

Another benefit of a personal loan is that even if you have had some problems with your credit in the past, you can still be considered. This type of loan needs no collateral, like the loans applied for in banks. Personal loans have preset payment amounts and payment dates. It is best to remember to pay correctly so that it would still be easy to apply for another personal loan should the need arises.

What can you use a personal loan for?

What are the uses of a personal loan? You can use it for anything that you see fit. It is for you to decide where you want to use it. Commonly, some who get personal loans use it for paying household and credit card bills.

Also, personal loans are useful for paying medical or hospitalization bills. Since personal loans are faster and easier to acquire online than other types of loans, it is ideal for paying for the hospitalization of a member of the family.

Personal loan for emergency

If there is an emergency and you don’t have the means to get money as soon as possible, getting a personal loan is advised. Since you cannot predict emergency situations, you cannot prepare yourself for such, right? You don’t have to worry looking for someone who you can borrow money from.

Personal loan for wedding and occasions.

On a lighter note, personal loans can also be used for weddings. It is imperative that during your wedding (especially if you are a woman), that you prepare the necessary arrangements. This is most especially if you are planning on having a church wedding or a garden wedding. The wedding gown, the rings, the gifts and the catering are not the only things that you have to worry about. You don’t want to plan and make arrangements only to find out that you have no money left, do you? It is best that you have the right budget in your hands. Having a personal loan can be very helpful if you end up not following that budget.

Personal loan for all your financial needs

There is no limit to how you can use your personal loan. What is important is that you know that you have access to a loan that you can rely on whenever you are financially stuck.

If you believe you might be facing the threat of foreclosure then it’s not too late to save your family’s home. Mortgage holders who are more than 90 days in arrears on the mortgage repayments are able to apply for a loan modification that can help to stop foreclosure proceedings.

This means people suffering under financial hardship who are actively struggling to keep up with repayments may be able to apply for a loan modification that could potentially reduce your monthly payments, extend the term of your loan and even lower your interest rates.

What is Loan Modification?

A loan modification is a permanent change of the terms and conditions on your contractual mortgage agreement between you and your lender. When you originally applied for your mortgage, you agreed to specific terms and conditions that included the repayment amounts, the interest rates and how long the loan would run.

In the interest of helping you catch up your delinquent payments and get you back on track, your lender may be willing to modify your mortgage.

Why Would My Bank Offer Me a Loan Modification?

Regardless of all the negative talk on the news, banks don’t actually like to foreclose on people’s homes. Banks are in business to make a profit on the money they allowed you to borrow. They’re not in business to sell real estate.

This means that they actually make more money by charging you interest for as long as possible rather than paying for the associated legal costs of trying to foreclose on a house that they’ll then need to sell at a loss in order to get a portion of their own money back.

Obviously it’s in their own interests to try and help you to get yourself back on your feet financially so you can continue to keep making your mortgage repayments so they can keep making a profit.

How Can I Apply For A Loan Modification?

Your lender will want to review your application for a loan modification in writing. The bank’s loss mitigator doesn’t want to hear how bad your situation was. All they want to know is that you’re working to improve it and what they can do to help you get back on your feet financially.

It’s important you write down an accurate list of the repayments you’re expected to pay on your mortgage, personal loans, credit cards and any other outstanding bills you may have. Then you’ll need to add up your total household income and add this to your application.

If your income has been significantly reduced recently due to being laid off from work or from an illness, then do make sure you mention this fact in your loan modification application as it is an important aspect of why your repayments are delinquent.

Point out to your bank that if they approve your request to have your loan modified and reduce your monthly repayments then you’ll have a much better chance of keeping up with the lower payments they expect.

How Does a Loan Modification Stop Foreclosure?

When your bank agrees to modify your loan, they have entered into an agreement with you to help you re-establish your financial situation. This means that even though your mortgage may still be delinquent they won’t foreclose on it while you remain diligent within the terms of your new agreement.

Unfortunately if you leave your application for a loan modification too late, you could find that foreclosure proceedings may have already begun. If you know you’re already behind on your payments and you’re struggling to catch up, you should consider the option of loan modification before foreclosure proceedings begin. If you need to stall one more month, a good option might be unsecured personal loans, to keep you in your home and out of foreclosure.

Hundreds of thousands of families across the country are facing foreclosure. Many have already been put out of their homes. How does this happen in America? How is subprime lending (thanks to ACORN, the Community Reinvestment Act and Self-Help, Inc.) allowed to go on for so long before a president (Barack Obama) takes action? The president’s subprime recovery program is a step in the right direction.

But ACORN wants to play the villain in hero’s clothing. According to Rasmussen Reports, they are “encouraging people in foreclosure to resist the law and refuse to leave their homes.” Twenty-one percent (21%) of Americans support the idea. That’s better than one in every five of us, people. That’ll make up for that mess you made earlier, ACORN! I’m even going to take you out for Chicken McNuggets and Slushees later!

Luckily, 54 of Americans are smart

That percentage of people polled via phone oppose ACORN’s “passive resistance” tactic. So at least half of us understand what kind of damage a little ACORN can do. An even higher percentage of homeowners (60 percent) take the nay train.

Along political lines,  76 percent of Republicans oppose ACORN’s smoke screen. Democrats are divided, with 31 percent in favor and 35 percent opposed.

Halting foreclosures? People can get behind THAT

Fifty-six percent of Americans polled by Rasmussen Reports are favorable to the government forcing banks to stop all mortgage foreclosures for the next six months. President Obama’s $275-billion housing program is designed to help those most in danger. It will include that tact of subsidizing mortgage payments, however. A majority (45 percent; not counting undecided) claim this rewards those who bit off more home than they could chew in the first place. Similarly, 53 percent are against having the government help pay down the principal for troubled borrowers.

According to news reports, ACORN, officially known as the Association of Community Organizations for Reform Now, has plans to expand its so-called “Home Savers” campaign to more than 20 cities, including New York, Baltimore, Boston, Denver, Detroit, Pittsburgh, Cleveland and Dallas.

A bad nut in the bunch

ACORN, according to Rasmussen, “describes itself as “the nation’s largest grassroots community organization of low- and moderate-income people.” The majority of upper-income people polled oppose ACORN’s programs. Fifty-eight percent of Caucasians polled oppose ACORN’s “Home Savers” idea, while 41 percent of African-Americans are against the program. In both cases, there are significant “undecided” groups. Thankfully, no self-respecting, free-thinking citizens were harmed during polls.

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Wait. CLICK HERE to check out part one of this article – before you get wet. Then see how Martin Eakes wields the obvious:

Previous actions to bail out banks have been necessary to keep the economy afloat, but essentially amounted to bailing out the water in a leaky ship. By addressing the foreclosure crisis directly, the Administration’s housing plan finally begins to plug the holes that cause the problem.

“Bailing the water from a leaky ship” is actually the best thing Eakes has to say in this entire press release. The banking, automobile and Real Estate industries do not deserve bailout money if the same people are allowed to control the organizations. Their hands are dirty; they are complicit in the financial homicide. Repeat offense is what they know, and America can’t afford such a body count any longer.

Turn the tide now

It’s time to change the entire system, says Eakes:

With this plan in place, there will be more options and incentives for servicers and investors to avoid foreclosures that don’t need to happen. That will help families at risk, and it also will help the entire economy by stabilizing the housing market and preventing billions of dollars in spillover effects that occur when the market is weak.

OK, I agree with this as well. The tide of foreclosures must be turned back. Lenders must escape lunar gravity and the laws of mortgage lending physics must change if this country is to survive. This may mean that less people qualify for home loans, but that will open up a need for more low-cost housing that President Obama’s “New Deal” organizational ideas will have to address. But first, please do address the conclusion of this article; CLICK HERE.

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A scuffle between House Democrats has brought legislation to help debt-strapped homeowners to a halt. The bill would let bankruptcy judges reduce the principal and interest rate on mortgages.

The main point of contention centers on this question: Is it fair to help only those who are facing bankruptcy and not others struggling to make mortgage payments on homes that are now devalued?

Democrat vs. Democrat

Debaters seem to fall into two camps: traditional Democrats and moderate Democrats, including members of the business-minded New Democrat Coalition.

Coalition head Rep. Ellen Tauscher points out that the measure only helps homeowners facing bankruptcy and other extreme circumstances. The coalition says there are people out there who can make their payments, but still deserve help.

“There’s an equity question here,” said Rep. Ed Perlmutter, another member of the coalition. “The discussion has got to be, what’s the benefit to the guy next door who is struggling to pay the bills, is paying the bills and isn’t filing for bankruptcy?”

Third party problems

While the New Democrat Coalition is seeking more help for struggling homeowners, banks are lobbying for less. Last year, a banking industry lobbying effort managed to kill a similar bill.

They are still advocating that protection and aid only be extended to homeowners with subprime or other “exotic” loans.

Compromise

The mortgage industry argues that the costs the could incur from reducing existing mortgages will only cause them to have to raise interest rates for future borrowers.

Bank lobbyist have gotten House Democrats to agree to limit the measure to loans that have already been made. Also, borrowers must show they tried other ways of modifying their loans.

What now?

The House vote on the bill, which was originally scheduled for today, has been pushed to Tuesday. The Senate is expected to vote on the measure in about two weeks.

We live in a free world, with a lot of choices we can make, whether it is a matter of food choice or what company to go to for your mortgage loan. Especially in the current market situation, you have loads of options if you are not happy with your financial position. I am talking specifically about home loans.

A home loan is very often the single largest financial commitment you take in your lifetime. Actually, it pretty much affects your entire life, as your entire earning span of say about 30 or 35 years is controlled by the monthly payment schedule.

In a recessionary market situation, like the one we are going through now, there are bound to be a few challenges in paying your mortgage payments. An industry statistic shows that there are hundreds of foreclosure notices being served on customers each day. That is a sad state to be in, in a country which is known over the world as the center of free enterprise. No more are lives free when we are controlled by a little piece of paper that comes home in the mail.

Take Quick Action!!

You do not need to be served with a notice before you take action. In fact, if you are facing difficulties in paying your monthly mortgage payment, even if you are still on schedule, you should take action. The most obvious thing you should consider is a mortgage modification. Like they say, “In every adversity, there lies a seed of equal or greater opportunity.” That holds true even in the current economic downturn. This market situation has given us access to some absolutely unbelievable deals, which would not have come our way otherwise. The best of them are the mortgage modification deals. Here is a basic premise of what they look like.

•    Before we speak about the options available in mortgage modification, check with your current lending organization to see if they can help you change the terms. If your track record is good, and if your credit rating is strong, usually even banks will assist you in changing your terms to a lower monthly rate, or one of a longer tenure (sometimes at a higher interest rate), so that you can stick to your current mortgage vendor and keep your home.

•    If that does not work, consider a buy-out option from another mortgage dealer. Find one who understands your current situation and listens to you well. If you are having a problem paying the amounts right now (like in a temporary lay-off situation, or a salary cut for the time being at your work place), you might need to look for a mortgage that accepts a lower payment right now, in lieu of a balloon payment a few months or a couple of years later.

•    A lot of financial organizations allow you to change your mortgage provider and get a better interest rate. The lending organization will pay off the entire outstanding balance to your bank, and you can make payments to the new organization from the next month.
•    Getting a professional mortgage negotiator to negotiate on your behalf will usually give you a better deal with the finance company, as they have better clout with them. If you are unable to get a deal on your own with finance companies, try taking the help of a pro and you should notice a significant difference.

•    You can also look for a specialty mortgage lending company to take over your loan. For a lot of financial organizations and banks, mortgages are just one channel. However, dealing with a specialty mortgage company will give you access to some pretty amazing deals or plans that normally banks never offer their customers.

The basic idea of all of these plans is to let you keep your home. Most of the time, you will be able to get a deal that suits your current situation. After all, this downturn is temporary and things will get back to normal pretty soon.

You may already be safe from foreclosure!

President Obama’s plan to revamp the mortgage industry and save families – including the octuplet mom and her kids – from foreclosure is now in full gear, like a fast cash advance for the afflicted. As part of the package, mortgage lenders like Citigroup and JP Morgan Chase have gone into a temporary moratorium phase for new foreclosures. Mr. Obama’s housing plan, which launches March 4, will distribute a sum total of $75 billion.

But how can those in need take advantage? Thanks to The Street, there is a formula threatened homeowners can follow. If you need help, try some of the good ideas they have compiled for your benefit.

Obama’s plan will advance cash fast

The Homeowner Affordability and Stability Plan is the key to disadvantaged homeowners. Essentially, it will allow people to restructure their mortgages so that they can avoid foreclosure. If you owe more than 80 percent of your home’s value, more refinancing options to advance cash fast will be available.

Up until March 4, here’s what The Street suggests homeowners do to put them in the best possible position to benefit:

1. Continue to make your mortgage payments: “Homeowners that are current [on payments] but eligible for the new plan should continue to make their mortgage payments in a timely manner,” says Gail Cunningham of the National Foundation for Credit Counseling. “Doing otherwise could compromise their credit report and score.”
2. Know what’s on your credit report: If there are errors on your credit report – and this does happen – you want to report it and have the error removed. The easiest way to get a hold of your credit report is entirely free; download it from annualcreditreport.com. Making sure that all information is accurate will speed up the process through which your home loan is modified.
3. Consider the refinance option: For those of you who still owe more than 80 percent of your home’s value, you may be able to refinance if your original loan was guaranteed by either Freddie Mac or Fannie Mae. If you need more information on how low mortgage rates are in the area in which you live, Web sites like BankingMyWay.com can help.

President Obama envisions his plan keeping as many as nine million homes out of foreclosure. “The plan I’m announcing focuses on rescuing families who have played by the rules and acted responsibly,” he said. “It will not rescue the unscrupulous or irresponsible by throwing good taxpayer money after bad loans.” May this fast cash advance keep more families safe and warm.

Related articles

• What’s In This New Obama Foreclosure Plan? [Foreclosure] (consumerist.com)
• Wither Phoenix? (andrewsullivan.theatlantic.com)
• Foreclosure Freeze Continues (azmortgageguru.com)

Are you facing foreclosure?

Payday loans may be your best bet to keep you at home. Those who are behind on their mortgage on their homes should act fast to find solutions. It is said that bad mortgages have sparked the present economic crisis. Millions of home owners have fallen into the foreclosure trap and as many are trying to evade it. The government says it is trying to help. The question is, will it be best for the lenders to foreclose or incur some losses and let the borrower make payments that they can afford? How do we save the economy and our homes?

Take drastic measures

If the lenders are willing to settle with payments and not foreclosure, then payday loans will have a major role to play. To save their home, most people will do anything. If the help is very simple, like payday loans, what is going to hold them back? The banks, the lenders nor the government has come forth to face the real problem, put in their share of goodwill and settle this issue.

Something drastic must be done, or else the foreclosure crisis along with the financial and economic crisis will get completely out of control. This foreclosure crisis should have been dealt with right from the beginning. Let’s hope it is not too late. It is almost like people are not being given a second chance to save their homes. Payday loans can give them that second chance.

Solve it yourself

There is no point in everyone blaming each other for the present economic and financial crisis. The government blames the financial institutions; they in turn blame the government. While they blame each other, who is helping the people facing foreclosure and all sorts of financial problems. Not the government. It is not the government’s home that is facing foreclosure; it is yours. So it’s time for you to act.

If it means getting payday loans, it is not actually a big deal. You simply have to apply for them online or over the phone for the amount you are short of, up to a maximum of $1,500. If approved, you will get the loan transferred to your bank account, usually within 24 hours. Personal Money Store will help you find your payday loan at nominal rates with no hidden charges. This loan can even come to your rescue, even if it is the last day before your mortgage payment is due.

Don’t wait

If you are facing foreclosure, don’t wait for miracles or for the government to save you but act within your resources to save your home, especially if it means just taking out payday loans. The government will take its time and if you wait, you stand to lose your home.