How to fix credit after a financial tragedy throws people into two groups: those who make a plan quickly following disaster and those who stick their heads in the sand…for years.
Karen Myers of Port St. Lucie, FL, has more than suffered her unfair share of “loss”
She’s lost her job of 9 years.
She’s lost her savings while trying to find a job.
She’s lost her car to the repo man.
As if Karen hasn’t suffered enough, she’s losing her home of 7 years to foreclosure.
Karen should be emotionally and physically devastated…this kind of loss typically rocks most people to their very core…for years.
Not Karen. She remains upbeat, relying on her faith to provide her every need as she takes part-time work to pay the bills.
For now, this is what Karen has to do. To give her some breathing room, she’s filing for bankruptcy protection so she can remain in her home and save some money.
Karen knows she’s not alone…hundreds of thousands of others are suffering right along with her. The difference is that Karen has a plan, though she knows not what tomorrow holds.
Daily, this is the kind of story I hear…the tragic stories of people just like Karen and MD (below) who yesterday were enjoying their “normal” lives only to have the rug pulled out from under them today.
Foreclosures. Bankruptcies. LOSS…LOSS…& more LOSS. Where (and when) will this end?
In my credit forums at Repair Credit Fast, a person named “MD” indicated she/he is going through divorce, soon to be followed by a foreclosure. More loss…more confusion.
With all that’s going on, MD needs help making difficult financial decisions guaranteed to have long-lasting effects.
Click the “Read More” link below to get my response to MD’s questions about
PLAN TO FAIL OR FAIL TO PLAN?
Which is it for you? Will you fail to plan or plan to fail when unexpected tragedy hits you? Unless you are one of the FAT CATS on Wall Street, in the car industry or banks, you will not get bailed out.
Karen, MD, you and I are on our own…to face-on our own-whatever smacks us in the face…today…and tomorrow.
MD needs to make quick decisions. With a 750+ score, MD wants to know about using a co-signer for a new car or a new home.
On a mortgage application (and quite possibly a loan app for a new car), the potential creditor will ask if you are or if you foresee a financial setback. Don’t lie on this application. It will come back to bite you in the butt.
Lenders are freaked out by the number of people walking away from their homes in which they’re underwater, only to try to buy the same type of home $50,000 less.
As you can see, I don’t know if MD really wants (and can afford) to keep his/her house. If so, I strongly recommend a LOAN MODIFICATION.
In some cases, lenders are cutting principal while lowering your monthly payment. By cutting principal, I mean lenders are confirming today’s value of your home. Let’s say your home is worth $200,000 and you owe $300,000. Lenders are coming to their senses and “writing down” (fancy word for cutting off) $100,000 and amortizing (refiguring) your monthly payment based on the $200,000.
In MD’s case, I asked for more information before I can try to give specific recommendations.
Here’s what I do know: Do NOT take a foreclosure without a fight! A foreclosure is really bad…for many years to come.
If you want to stay in the house, get a loan modification. Call or email me now if you want the name of the best loan modification company I’ve found and tested. Lots of imitators…only one I’ll recommend.
If you cannot afford the house, get a realtor who really understands how to do a short sale. Call or email me to ask how to find such a realtor in your area. If you’re fortunate enough to be in the Sarasota-Bradenton-Tampa-Orlando (FL) areas, I personally will help you.
How are your family & friends surviving today? Have you, your family or even your friends lost a job, a home or a car? How are they coping with loss? Are they proactively working to break free or are they angry and in denial.
How to fix credit AND how to “preserve” credit are questions before AND after a financial tragedy. During a tragedy, please get help quickly. Please don’t be embarrassed to let friends, family, (former) colleagues know what’s happening to you. Call or email me if you or someone you know is behind in house payments or about to get behind in your house payment. I will help you: mike[at]fixmyugylcredit[dot]com
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