Mortgage Issues In THIS Economy??

There's loads of talk about short sales, foreclosures and bankruptcy being solutions for many...but the fall out is HUGE~hence why I am a proponent of buckling down to PAY debts as best we can: living and loving on less so that IF at ALL possible, mortgages can be taken care of and paid.  These are tenuous times for all of us. . .hardly is there an American who has not felt the economic crunch of job losses and the declining economy.  Even if you haven't experienced an economic shift, none is secure! I really do advocate that everyone attempt to live a life in more simplicity and frugality.  Better to do it long before a disaster when savings can be built and appetites for "things" isn't fed, than when all havock breaks loose and there are so much change that have to be made just to stay afloat! 

Access your mortgage situation.  Find every way possible to pay it if AT ALL possible!
Find new money in the forms of creative jobs and living frugally.  Saving really does equal more disposible cash~less utilities, food costs and all other expenditures will equal a little bit more to place on the mortgage situation. 

I have heard of stories of ugliness from mortgage lenders when folks have tried to "negotiate" differing terms...FIND a WAY~ do what you can do! Work a good solid plan to manage debt.  Consider consumer credit counseling and QUIT spending on anything but essentials! ESSENTIALS...I know I am saying hard and irritating words~but losing a home is so traumatic, and as you will be able to SEE Clark Howard on Shortsales, Foreclosures, and Bankruptcy  the answer will not be in a ONE of those IF AT ALL POSSIBLE!

These are tough times, and the old trite saying still holds TRUE:

When the going gets tough, the TOUGH GET GOING!

Busting Debt,

How Low Can You Go?

Remember the Limbo Game? It's a ton of fun to see who can scoot under the pole and shimmy without touching at the lowest point...Everybody who's playing is usually excited and laughing to see the players contort to get below the mark~to get the lowest to go lower and lower...and lower...

I want to ask you, if you were facing financial ruin or hardship would you make any changes before it hit to prevent or minimize the effects? What strategy would you employ to minimize the situation in your family's livelihood?

We all would do what it would take to keep our families safe and sound. I know that thinking about these economic times with all the fear and uncertainty is not the mindset many of us want to have, nor should we live in fear and anxiety. But we would be better to think in terms of strategy and methods for doing what we can to lower our outgo so that if we should face these kinds of issues we are more prepared. I don't want to be presumed to be negative or a "dooms day" prophet, but I do want to offer a honest evaluation of the economy and situations for many in our communities and even some of us...we are looking for ways to cut expenses, make do, thrive and survive so that we live...and how low we are willing to go can just like the game~and we know life is NO GAME, but like that game...how low we are willing to go can make the difference in our staying in the economic playing field or even winning~staying viable!

I have been practicing methods of thrift for sometime, years actually because of economic conditions long before the recession. I had to ask myself that question too~how low was I personally willing to go? Each person has to do this for themselves, and it's a personal decision for each of us. But I want to encourage everyone to begin making changes small, bigger, huge, whatever changes you can to lower the outgo so you can sustain any changes that are necessary.

Almost anything you can do will help, and I've read so many times that it is the small amounts of money that add up to huge amounts...that sounds silly doesn't it? But it's really true!

If you are in a situation where the mortgage is threatened with foreclosure the situation will demand greater efforts to go forward. Cutting expenses won't have to equal cutting satisfaction and pleasure out of life. Unfortunately our society places great importance in the value of the things here on earth, but remembering that the simplest pleasures offer the greatest fulfillment will make the choices made easier to bare. It's making up one's mind that thrifty living is a priority and that nothing will surpass this effort.

I received a link, THANKS Marla for http://www.truthinforeclosure.com/ to help us who are in the trench over our homes.

What ways are you lowering your outgo each month? Are you practicing thrift to save each Lincoln so you will thrive in this economy? I'd love to hear what you are doing.

Remember we can do this! Simple and FREE is best!

Clunker Cars Could Be Less Costly~

I know it sounds radical to say that the old worn car you are driving is costing less than the much marketed and politically correct greater fuel efficient models out there! But payments are huge~and especially if you have to make them when you didn't have them to begin with. I recognize the benefit of purchasing new cars or newer used cars IF you have the cash to make the deal. Cash or a great amount if it for a lower down payment plus shopping the market can yield the best deal going. Without a great deal, even with the government rebate, the payments will be huge and quite a challenge when one never knows from day to day if we will have jobs...but if we have cash, to trade in that "clunker" then go a head and buy a better fuel economy vehicle if the costs will be less. Buying with cash, AFTER you check out all the pricing by comparing all the features to other prices and features can get you the best value for your hard earned buck. The theory was to stimulate our economy with car sales, save on fuel consumption and get old "clunkers" off the roads, but is it really a DEAL?

If you have to make payments, and the dealerships have either raised the prices or are not lowering with other rebates, then the overall price, while it initially might look like a bargain, may not be, but pricing spread out over time! If you acquire a payment~can you really afford it? THIS IS THE HUGE QUESTION.

So I went looking at fuel efficiency for a cost per year analysis of whether or not trading in the old clunker would benefit over the cost of payments for the new and improved car.

I found a calculator for fuel costs at Walmart.com http://instoresnow.walmart.com/Community.aspx?id=105 to calculate a yearly savings. It showed a vehicle driving 12,000 miles per year at 20 miles per gallon costing $2340.00 year in fuel, while a 30 mile per gallon vehicle would cost $1560.00 per year with an annual saving of $780.00 on gas. NOW I ask you this: CAN you pay car payments that cheaply? Car payments average much higher than $65.00 per month than the costs of the additional fuel costs!! Just a thought and one to consider when thinking of such a purchase~CONSIDER all the factors! The only real cash for clunker stipulation is that it had to be drivable onto the lot. Remember that car maintenance is an issue with ownership not just fuel pricing. The maintenance of a vehicle is costly and older vehicles do require more, but do these costs justify high payments?

A SAVING STRATEGY:

If you do not currently have payments, look for ways to begin tucking back and saving money for the inevitable need to replace your vehicle. Designate funds especially for a "new car fund" so that you can be ready to, if at all possible purchase with cash. Buying with cashing will give you are bargaining chip that is a great asset in negotiating prices and there are no payments. It's a win win for sure! But if your vehicle is not going to last long enough to save up the total amount needed, then save what you can, and begin shopping. . .SHOPPING but NOT BUYING~don't let the salesman talk you into a car...just look and look and look...watch the papers, look everywhere and keep saving. Don't get hooked into being a certain salesman's customer either. In shopping your loyalty is to yourself. I hate to say that, but it's a sales tactic to get us to purchase sooner rather than later~remember salesmen need to make money, and the money they hope to make is ours! So beware and keep looking, but offer no hope of any sale any time soon while you are gathering features and prices. Look online too for prices. I know people who shop all over their state and in other states for best prices. Consider all the options. Credit scores won't apply if you are buying with cash! AND if you still have to borrow, save as much cash as you can, as you shop, THEN purchase!

Just some thoughts on this "cash for clunkers" deal that could really cost people MORE in the long run than any kickback the government is offering!

Still hanging onto my money~taking care so it won't leave me!

Home Buying~Some Frugal Ideas. . .

Chances are IF you are looking to buy a home right now, then you know that this is a buyers market. I've had the pleasure of buying in both buyer and sellers markets, but buying at a time when the power chip is in the hands of the purchaser is definitely a plus! We are selling our pre-1880 Victorian home because of job relocation. This is tough, but if you are looking, deals can be had. Following the economic real estate trends says that home pricing is at a low~good news for those who are shopping. Remember that I encourage shopping, not necessarily buying all the time as we need to know our prices, so if you need is not immediate, shop and be sure you are getting the best deal for your money.
(Check out our home for sale http://www.1909homeforsale.blogspot.com pictured left: 3060sq ft/9 car garage~$65K)

Over the years, we have been blessed to have owned four homes. Not but two at the same time as we are not landlords, but due to relocation twice. Shopping for a home comes with challenges I will address so you can think on these if you would like to look around...NOW is a great time to buy~if you can!

1. Can you buy? Size up your finances and get to your lender (shop rates and programs) to get preapproved. This will make your purchasing go better and faster.

2. Begin on your own to look. I must confess, and all my realtor buds may hate me for this, but they'd do this too ;-)) CHECK out any for sale by owners first. Look at trade papers, newspapers, online ads, FSBO.com, historicproperties.com, zillow.com, Craig'slist.com and any others out there...there are even online free classified, and often from your area. LOOK all over! Ride the neighborhoods you want to live in. . .SEARCH! Of course I am thinking a local purchase, but if you are relocating, I will make other suggestions: Make a trip to the area if possible. Spend as long as you can, if over night is all you can, then do that. Get acquainted, talk to hotel, restaurant, shop owners, anyone you can find who will talk to you about the area you are researching. Look up community statistics such as crime and economics on line~many communities have websites and offer loads of info. Search Realtor.com for out of town listings as well as the other sources...just know that likely if on this one, it's listed by a realtor and the price is generally higher by atleast 4-6% or MORE! There are advantages to have a realtor, and I used some of the very best, so I don't dis them. . . it's just that if money, and it should ALWAYS be, is an issue knowing this upfront is helpful~also that interests are generally served to the seller who will pay all commission. I learned this the hard way on our first home purchase. Different laws affect practices too~there are dual agency agreements where one realtor can legally represent both buyer and seller that is required in some states I have live in, and then again, I am not sure that an actual contract is necessary. Biggest thing to remember is that the realtor wants to sell and make commission based on the highest sales price. OK~now said, buyers must KNOW values and understand how to take care of their own money or others will get more than they should. Using a realtor or not, take along your notebook and camera~you won't be sorry because you can study the picutres long after the visit to get a real feel for the home. Sometimes the camera "remembers" what you can't! Make notes and study them later~make comparrisons-feature for feature!

3. What is your style? Home styles vary as much as do conditions and prices. Over these years, I have discovered a few things that are essential in a home for me. I want a bathroom nearby at all times so if our home is two story, it must have one up and down! I want my laundry near the bedrooms and bath upstairs so I am not toting it up and down! With this said, many homes that I happen to like do not have this feature; generally the laundry is in the basement! So is there room to add laundry to the area I want it in? Sit down and write down what you want, what you can't live without and where you would like it all to go or become. Prioritize these features. Houses will all vary, so having a strong sense before you get into looking is a great idea!

4. Research not just the area you want to live in by online resources and riding through, do something you may not have thought of...ride at night~all hours if you can! If you are an out of towner, make SURE you do this! There's a lot of information about a neighborhood to be gained from a nightly ride. . .who's out? WHAT are they doing? What businesses are open? Does the whole town roll up the sidewalks at 9:00PM? You MAY want to know this if you like late night shopping! OR is this a tiny burg of a bigger town that has one redlight and one gas station that is just a bedroom community that rests quietly without stresses? YOU need to know this! AND when you find that home you are interested in, go see the neighbors. Size 'em up for whatever makes you comfortable. I personally don't appreciate loudness or rude behaviors. So when I'm shopping, I am looking for people who are asleep in their beds at a reasonable hour and NOT walking the streets! The night is a great time to check out the potential neighborhood. Quiet is best for me. . .

5. Take your time, if you have time...sometimes purchasing can be more economical if you wait, but remember if your heart is set on a home, it could sell right out from under you. I've had this happen too! But I will say that I have also waited and saved tens of thousands. One good point though, and I've not discussed offers yet, but if you offend a seller with too low an offer, it's not likely they will work with you. . .but then again~this IS a buyers market! So always be mindful that both parties are looking to make a deal~to benefit both! Time is money a good deal of the time. Just remember it comes with risks~risk of losing the home (IF you have to have it~or it's really a great value!) As a seller right now, I could have sold our home (OK~given it away!) about 5 or 6 times to date, and not being rude now, but by the end of this week, I expect to have at least ONE more person to approach me with an offer I AM going to refuse! Sellers must take care of their financial needs too. . .another blog entry ;-)) But it's wise to understand it all ;-))

6. Don't get too caught up in colors and decor as you look. NOW the type or style of home is as important as age and condition, but whether or not it has purple paint in the livingroom is not a total concern to me~it's NICE if the colors are ones I love, but if THE PRICE IS RIGHT none of this sort of thing matters. . . but consider too if anyone in your family is handy or if you have the funds to "fix" what you hate. The home we are in now while the price was very good, needed a HUGE extensive renovation...ceilings were down, all floors had to be ripped, plumbing had to be redone...kitchen..Oh my! But so you know that some issues are non issues where value is concerned. Some I have known, and truly only ONE person refused to consider older homes because they didn't want "issues." OK..so they paid the "sticker price" and then got issues! ;-)) ALL homes have issues~but how smart are you at finding them?

8. IF you know your game on homes, then you can reasonibly forgo the home inspection for it's costs. I have had several~but there were things they didn't catch~even the best of the best will miss stuff that as a home buyer you may, may meaning it may NOT be a deal breaker, want to know! Home inspectors are a good idea if you don't know and aren't too handy. Just to get the pro's ideas is good thinking! I am married to Mr. Fixit, the real mccoy! So we are pretty safe on most things~we do look at age of mechanicals~their continue life expectancy, roof, insulation, heating and air, foundation...Just because it's a pretty home, that pulls my eye does NOT always get the sale. When looking and finding THIS house, there was an earlier home I just knew was THE ONE! Well, it took hubby going to a showing, and hearing the train in the BACKYARD screatching by every 8-12 minutes for ME to know it was a deal breaker! I could never have lived in a home that close to the train THAT busy, but three times now, I have lived close enough to hear it, but never so close I could count every spoke in the wheels! If you can, see the home as many times as possible~under all conditions possible~rain, shine, sleet or hale~~ok, just kidding about ALL of those conditions, but go see it and look, smell, touch and feel...measure...

9. When making an offer, here's a huge tip. Always do some research. Look at as many homes as you can find that are comparative in features and location to come up with what is a reasonable offer, but always less than asking. I mentioned this earlier, but if you make a seller upset, they can refuse to work with you. The other thing is to consider what the home is genuinely worth. I really believe in thrift, but I don't believe in stealing though. Fair is fair, but I will wait until the price is what I can afford or it comes down. This was the case in our current home~the price lowered which brought us BACK to it, but since it had been on the market for some time and the condition, we offered WHAT we believed would be immediately rejected. To our surprise, they accepted. Now this was also unusual in that it was a forclosed property, so there were no sellers involved who had feelings to consider. There are just other challenges to purchasing forclosed or distressed properties~beware! But with caution, they can make very nice homes! Comparing homes of similar features and conditions~an appraiser once told me that location, and major things like h/a, square footage, and other spaces like garages make property values~not decor or clean and neat issues...now number of bedrooms/baths will matter. . .lot size...but if you have 1985 lights or the latest most expensive crystal chandeliers~MATTERS NOT! Remember this if you plan to sell too~another post-another post!! ;-))

10. Consider the needs of yourself and your family. How many kids, pets? HOW MUCH STUFF? Are you downsizing or upsizing? Large yard? NO yard? GARAGE? Carport? How many baths? Do you want to be the 11 person family with one bath and three bedrooms??? HOW do you live~in the den, greatroom or livingroom or kitchen/den combo or WHAT? Features will matter when it comes to your family. . .My husband had grown quite accustomed to the NINE CAR~yeah, you read that right, 1500 sqare feet garage we moved from. When shopping, there were a couple of homes that were right for me without much less more than a one car bay situation. WE HAD to consider~where was the air compressor and wood shop and, and, and. . .GOING! We really needed and became blessed with a 3 car garage! Oh, it's smaller for sure, but think of HOW bad it would have been and the adjustment to no garage! Now you may want to make such changes...changing states and all that goes with THAT were enough for this family! Pets need space as do kids! But I hate yard work, not because I dislike gorgeous yards, but because of the work they take to maintain them. We are busy~I guess doing other things and since the yard is not my priority, I prefer very very small and what I do have, often I will make as much of a rock garden as possible! Laugh if you want to! But somebody had to cut all that grass~and with little time for THAT, it is't pretty~so we make a choice about yard size...We also came from tornado country without a basement, and having lived through the F5 of my life, I will if possible always have a basement. I've got one now! Praise God!

I hope I've given you some things to consider when looking to purchase a new home. This is an incredible time, especially if you are credit worthy and a first time home buyer. With the 8K stimulus, WOW~that makes DEALS EVEN BETTER!

Taking care of my money, so it stays!
SisterTipster<3

Financial FREEDOM~Let It Ring!

My story is like others who have found themselves up to their eye balls in debt and nearly drowning, but in this reality we carefully crafted and practiced a plan that thus far has taken us from owing tens of thousands to much much less in debt~

Financial freedom should be the goal of every Christian. God really convicted us of debt about three years ago when we realized our declining financial situation and potential economic disaster. This was WAY before the economic downturn of this present economy even, and I praise God that He worked within my heart early on to convince and convict me of the need for changes in our lives.

WHAT WE DID~

1. We took a serious inventory of our liabilities and assets. Just how much do we have and who do we owe and for WHAT.

2. We asked our selves a series of questions like: What can we do? Are there steps we can take that will make a difference? What are our priorities with our finances? Where do we want to be KNOWING where we are right now? When do we want to be there?

3. After serious analysis, we crafted the plan and began systematically implementing it.
1. We looked into options concerning our debt (credit cards, medical bills and mortgage with a variable rate) and mounting costs and spending habits.
2. After analysis we found several options for dealing with these areas. I will go into detail with these in the next post.
3. We developed a debt management plan that included bills and outgo~that nasty word: budget. This was based on hard choices AND priorities for our family and economic future.
4. We sold our home with the variable rate mortgage as we were paying no interest at the time, but as time has shown it was wise to sell, purchase a less costly home and lock in for a fixed rate as today the variable rates mortgages are eating folks alive! Praise God for His wisdom!
5. We read and studied several debt and financial programs (freely) so we would educate ourselves on many options and ideas. I want to encourage you to utilize the public library or other free resource such as your local consumer credit counseling agency usually through your community's United Way program to access free help. Paying for advice is sometimes necessary, but remember free is better, AND you can always pay if the freebie isn't helpful. Keep your money in your pocket~stop the MONEY LEAK any way you can!

I don't want to give you the impression this has been fun and easy! There have been some hard HARD decisions made in our lifestyle, homes, and in so many areas. We had to make some tough choices that today are paying off in satisfaction and lowered debt load~plus there is LIGHT at the end of our tunnel, and it isn't a train coming out of the tunnel about to wreck us financially and all the other way money impacts families!

I promised to share about options for dealing with debt and mounting bills with the inability to pay them and unbridled spending habits.

Stay with me~Financial Freedom is on it's WAY~ LET Freedom Ring! in your life.
blessings
SisterTipster<3