All this uncertainty is rattling some homeowners, and leading them to draw false conclusions which will dramatically impact their lifestyle and long term finances. Read on to discover what these misconceptions are, why they are wrong, and what you should be doing instead.
Refinancing Indecision
Many people who purchased or refinanced in the past few years thought they were getting a great deal. But many are seeing the attractive low introductory rate they received expire and their mortgages reset to a higher monthly payment. In some cases these payments are beyond the means of the homeowner. In such situations the obvious solution is to refinance into a more stable and still affordable mortgage.
Fears that their new lender will close their doors, or that their mortgage application will get caught in limbo, have gripped many people who would otherwise have refinanced. Even though they are struggling to make their payments and starring foreclosure in the eye, these homeowners are leery of refinancing and rocking the boat.
But that homeownership boat is already being tossed around on a sea of uncertainty, and maintaining the status quo will not improve anything. The solution is to do thorough research and find a reputable and stable lender. Check how long the lender has been in business; find out how many branch offices and employees they have; determine who their underlying investors are; and analyze whether they have independent sources of income, like consumer banking.
Another good idea is to work with a reputable mortgage broker to find you a new mortgage. They often have extensive contacts among the various mortgage lenders, know who the stable lenders are, and in the unlikely event that your first choice can't close your loan they can quickly rematch you with an alternative one. Plus, brokers can find you competitive deals and save you some time and effort.
Failure to Pay
Another common mistake homeowners are making today is not paying their monthly payments if they hear their mortgage lender or servicing company has closed their doors. This is a massive mistake, because your mortgage contract does not expire just because your lender goes into bankruptcy. If they do cease operations one of their investors will simply resell your mortgage as a security to a competitor. Should this happen, there might be some short term confusion over where you send your payments, so be proactive: call up your mortgage lender and check your mail for a letter which will provide you with the answer.
The same principle applies if your lender files for bankruptcy protection, a term which consumers often confuse with straight bankruptcy. In this case you are also still required to make your payments on time. Make these payments out to the same company, and mail them to the same company address unless you hear otherwise.
Failure to keep current with your mortgage payments will push you towards foreclosure, regardless of who ends up servicing your home loan. And arguing that you didn't know you were still expected to pay won't get you any sympathy with your lender or mortgage servicer. So be alert, and don't run the risk of loosing your home.
Conclusion
Don't allow the current turmoil to jeopardize your homeownership status. Arm yourself with the knowledge you need to protect your home and lifestyle. If you need to refinance do it as soon as possible. And keep current on your mortgage payments, even if your lender appears to be struggling.
We change our clocks during the summer months to move an hour of daylight from the morning to the evening. This change will allow us to still have daylight until closer to 6:00 pm, but it will be dark in the mornings until closer to 7:00 am, almost 8:00 am depending on the weather forecast.
There is always an adjustment period when this happens even though I've been doing it most of my life. Just like when the economy shifts up or down, we ride the wave. We have all benefited from economic upswings and of course, since the opposite of good is bad, there will always be some of those negative experiences as well.
For instance I shared in my recent telecourse that I had a great time riding the wave of the dot com boom (as did hundreds of thousands of other Silicon Valley residents, business owners, and even folks around the world).
Of course, when the dot coms "busted", we also experienced some turmoil with losing some of the luxuries we all had become accustomed to - big paychecks, rising stock prices, millionaires on paper, etc.
Another area that we are all familiar with is the Real Estate boom. I didn't hear anyone complaining when their house values were climbing through the roof and people were knocking on doors offering sometimes well into the six figures above the asking price for their homes.
Now that the tables have turned and the market values have tanked, everyone's forgotten how good it was and how they probably refinanced their homes and took equity out to enjoy luxuries that they wouldn't have been able to otherwise.
It is important for each of us, especially as entrepreneurs, to not get caught up in all the negative talk and be grateful for what we have and what's actually happening in OUR own worlds, NOT THE world.
A few months ago, I decided to unplug from what's going on in the world, by choice. I think it was a very smart choice and one that you all may want to adopt. I made a conscious choice not to listen to the news, read the papers or listen to talk radio.
I'm not an ultra-sensitive person, but I don't like what all the negative talk does to my mindset. Sometimes we get caught in a pattern of negative thinking and when we focus on the bad news, it affects everything else in our lives.
Instead take an inventory of what's actually going on in YOUR world. Are you blessed with a house to live in? A car to drive (maybe even a choice of two or three cars)?
Do you still go out to eat occasionally? Go out shopping on the weekends or at home online? If you can answer "yes" to most of these questions, you are in a very fortunate position.
Keep that in mind and be grateful for those things because that IS your reality.
Here are just a few tips to help you THRIVE during these turbulent times:
1. Take a deep breath. And then another.
2. Stop watching the news, stop reading the papers.
Change the conversation when your friends and neighbors begin talking about things having to do with lack. Instead, opt for CDs or MP3 recordings of mentors that inspire you or audio books and programs.
3. Spend time with positive people---the ones that are optimistic, make you smile, who turn your day around and make you feel better being around them.
Stay away from the ones who just want to tell you about how much they have lost in their 401K this week.
4. Have gratitude for what you DO have - i.e. your kids, your family, your health, your business, and CHOICES.
5. Acknowledge your successes - if you just started your business, celebrate that you had eight jobs this year.
If you've been in business for several years, be proud of your accomplishments and know that 2009 is going to be even better.
Here are some great quotes that help to drive the point of today's article.
"Tough times never last, but tough people do." - Robert H. Schuller
"If you want your life to be more rewarding, you have to change the way you think." - Oprah Winfrey
"Living in the moment brings you a sense of reverence for all of life's blessings." - Oprah Winfrey
Implementing just one of these methods will put you back on track to connecting with who you are, what your purpose is and those deserving of and able to invest in your talents, services, and expertise.
For every person you encounter that blames outside forces for their failure, there is someone else that is taking responsibility for and initiating the necessary action steps for their success.
Which type of person are you? Success is a choice, will you choose it?
Both Andrew Carey & Alice Chan are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Andrew Carey has sinced written about articles on various topics from Finances, Finances. Andrew Carey works at America's Lending Partners, a leading online mortgage business that has been providing homeowners and home buyers with a variety of resources and mortgage services since 1999. For more information please visit:. Andrew Carey's top article generates over 1900 views. to your Favourites.
Alice Chan has sinced written about articles on various topics from Business Loans, Finances and Home Security. Alice T. Chan is the Staging Designers' Success Coach and founder of . Our tools/programs help Staging Designers catapult their success by t. Alice Chan's top article generates over 9900 views. to your Favourites.