if you see trouble coming – refinance if you can. If you dont know if trouble is coming then find out

I’m seeing a pattern lately of people waiting and waiting and waiting until things get to the point where they are forced into defaulting on their loans and in many cases entering the foreclosure. Come on people, sticking your head in the sand is not going to fix anything for you. I strongly encourage everyone to go back to their loan documents and look at what the terms are. If you have a rate reset coming and you cannot afford the payment when that happens CALL THE LENDER IMMEDIATELY and try to get some assistance. Dont waste time with all the scammer “save your house from foreclosure now!” gimmicks. Its way too hard to know if any of these people have your best interest in mind and in most cases THEY DONT. Just contact your original lender and see what they can do to help. There have been many stories about how people have been able to get the terms of their loans reworked. Lenders would rather see you continue to live in the home and make payments then foreclose on you. NOBODY wins in foreclosure. I am your neighbour so yes I have a vested interest in you keeping your home. We all do as residents. Eastvale is a great community and we all want to see it continue into the future and weather the current storm.

If you don’t understand the terms of your current loan or don’t know what a rate reset will do to your monthly payment or even if you will be subject to one then CALL YOUR LENDER. Ignorance is NEVER an excuse. It is your responsibility to ensure your financial health. Dont wait for congress or the state or whoever you think may want to “help” you to do so. Most of these plans require you to already be in dire straits before doing anything to try to help and often times it will be too late by then. It is up to YOU to help yourself. Your lender might not be any help but this link will give you all the information you need to get started getting help:

Foreclosure help

Now on my soapbox: Please stop spending on things you dont absolutely need! I dont care what you hear on the news or what the government says. Ignore all the “bring your stimulus check here and we’ll add 10% to it” junk. This is free and “found” money and that should never be blown on small luxuries that have no impact on your long-term financial health! Take your stimulus check and any refund you have and use that to get right on your debts whether it be credit cards, a HELOC or your principal mortgage. If you dont have any bad debts then great! Store away that stimulus check/refund in your SAVINGS account. Remember those? When stormy times come, a chunk of cash stocked away in savings can save you.

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~ by razor on May 6, 2008.

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