Today, an overwhelming stream of consciousness in America focuses on how to get out of debt. Not surprising, too. With the recent collapse of financial institutions due to the subprime fiasco, people everywhere are affected as the strings of the portfolio tighten from the top of the corporate ladder and filter down to the pocket of the average American.
The number of layoffs in America has nearly reached the astronomical heights we saw only during the Great Depression. Middle-class families living the American dream suddenly find themselves with plummeting property values and severe loss of income or worse, unemployment.
First, let me start by saying that I am too opportunistic to let this get in the way. What a lot of people don’t realize is that when the door slams shut in one area, there’s another door slamming open somewhere else.
It’s a proven fact that people who decide to stop advertising their business during a recession miss out on future recovery. It may seem off topic, but my point is that your efforts to get noticed and take action now will pay off later. You will be seen as a business that can also survive in difficult times. The same goes for your attitude. Stop looking for all the reasons why you can’t and find the reason why you can.
Loan modification is a very important topic in today’s economy. People are defaulting on their loan. Interest charges are piling up and the number of homes in foreclosure are also at rates not seen since the Great Depression. It’s hard to see where you’ll be able to get out of debt with a mortgage that’s in default.
Do not lose hope. A huge effort by the government and financial institutions has made it lucrative for everyone involved to lower rates on subprime mortgages that were in ARMs or balloons. The loan modification works like a mortgage refinance but in reverse. This could be the best thing to get on your feet and get out of debt.
Is that how it works. You should keep in touch with your lender even if you are falling behind. If something like a change in income, unemployment, medical bills, divorce, or loss of income has happened, you can renegotiate the terms of your loan.
In many cases, people are switching to low fixed rates. Your mortgage payments will go down and you can focus less on how to get out of debt and more on how to live your life achieving your goals and finding your love.
Now, I’m not a loan modification expert, but I know it’s worth taking the time to purchase some educational materials to help you get through the process and get back on your feet. Make sure you follow the process meticulously if you want to get out of debt. One wrong step and you’ll find your application on the desk of an overworked loss mitigation specialist.