Loading ...Get Answers
We’re here to answer your financial questions! It’s easy to participate. Simply submit your question and a financial expert will respond to you, usually within 24-48 hours.
Your question and the financial expert’s response will be posted here so everyone can benefit. Let’s help each other get Arizona moving!
Why aren’t banks and mortgage companies offering homes that are in foreclosure that have affordable payments to people who are being foreclosed on because their payments are high and they have gone from two to one incomes because of a layoff? Many people who have say $2000 a month payments can’t afford them anymore but they could afford $1000 a month? Why don’t the banks let people move from a home they can’t afford to one they can? Especially if they have one they can afford in foreclosure. -Diane S.
During these difficult economic times, lending institutions are overwhelmed with all types of requests for help from people falling into foreclosure. Arizona Central Credit Union is committed to doing what we can to offer assistance to our members when we are able to. We cannot speak on behalf of other financial institutions or how they are handling such situations. Switching homes for a lower payment is not a workout option. However, there are other ways a lender may be able to assist someone facing foreclosure. Homeowners should contact their mortgage servicer directly for assistance. Another good starting point is Making Home Affordable, a government website explaining resources available for homeowners seeking a loan modification or the option to refinance a home that is worth less than the outstanding loan balance.
Where do I go for help if I am unable to pay my bills? -Olivia S.
Check with your creditor(s) to find out if they have any programs in place to help, such as payment plans or special programs to help families in financial need. If you can, try to refinance loan(s) for a lower rate(s).
Ask creditors if they would accept or approve credit counseling, as there are quite a few non-profit credit counseling agencies that could help you. Be sure to use good judgment when researching these agencies, especially online, to avoid Internet fraud. Some good places to start online include:
If you do not have an issue discussing the situation openly, you may also use your close circle of friends and family for emotional and financial support. You may also find additional resources and support at your place of worship.
I want to take advantage of the current housing market. What are some simple ways to monitor/manage my credit score? -Chad L.
Before submitting an application for a mortgage loan, request a free copy of your credit report from www.annualcreditreport.com
. This report will not show your actual score, but it will show details of every credit account you have, according to Experian, TransUnion, and Equifax. When you request your free report, you may be given the opportunity to purchase your score for a small fee. This is a smart investment, especially if you haven’t checked your score in awhile.
As you review your reports, watch your limits on revolving credit (i.e., credit cards). Look at your balance to debt ratio. A key point to remember is that you should not owe more than 30% of the account’s credit limit.
If you have applied for multiple accounts, such as department store credit cards and credit card offers in the mail, the inquiries show up on your credit report, and could impact your score.
Keep your payments current; lenders want to know that you can adhere to making your mortgage payment on-time every month. If your report indicates any late payments/charges, keep in mind these instances could affect the interest rate on your mortgage loan.
If you find anything that may need to be disputed, there are steps to take in order to report this correctly. In addition, some mortgage specialists have the ability to dispute issues, and as soon as they can verify it does not belong on your credit report, they can re-score your credit, and report it to all three credit bureaus.
If you do not have any established credit, that’s okay, but you will probably need a co-signer who agrees to be on the loan for at least six months.
We have a 30 year fix loan at 7% interest rate, my payment is 864.37 per month. I have been on unemployment since the end of January with a weekly payment of 260.00 per week, and my wife is a self employed home cleaner with income of 600.00 per week gross. We are currant on our payments. We are interested in the Obama bail out program . Can you help us with that? -Mike B.
Your best place to start is by going to the website http://www.makinghomeaffordable.gov/. Here you can complete an online questionnaire to see if you might qualify to refinance your existing mortgage or for a loan modification. The refinance plan is for homeowners who would like to take advantage of today’s lower rates but are unable to refinance through traditional avenues because the value of the home has dropped. A loan modification is for people struggling to make their loan payments because of a reduction in income or because their interest rate has increased. Once you complete the questionnaire(s) you will be given instructions on what your next steps should be and who to contact for additional help. Good luck, and let us know if we can be of further assistance.
We have been trying to do a loan modification for our home since March 2009. I cannot seem to get any answers or estimated completion of the modification review. They simply respond that I am in line for review. Should I hire a firm to specifically work on my behalf to expedite and facilitate this process to achieve a successful and timely result? -Scott P.
Your best place to start is by going to the website http://www.makinghomeaffordable.gov/. >Due to the high number of foreclosures and loan modifications many banks are processing, it’s not unusual for this to be a long, tedious process. It’s important to be persistent with both the lender and servicing company. Continue to contact them on a weekly basis to check the status of your modification. Be polite but firm, and ask to speak to a supervisor if the representative is not helpful. Hiring a company can be tricky because there are many businesses out there trying to scam people out of their homes and money; you have to be extremely cautious. Instead, contact one of the many nonprofit agencies out there willing to help people with loan modifications and foreclosure prevention. Here are two resources you may find helpful. They include links to agencies that can provide further direction if you feel you have hit a dead end.
U.S. Dept. of Housing & Urban Development
HUD Certified Housing Counseling Agencies
Gas prices are rising again. Why? -Sandra L.
Due to the economic downturn that has swept the nation, some storage tankers are brimming with unused oil. Unfortunately, traditional laws of supply and demand do not always apply. This increase is an excellent foreshadowing indicator that our economy is improving. As you read this, OPEC (Organization of the Petroleum Exporting Countries) and investors alike are aggressively accumulating supplies, as they expect an economic global recovery later this year. The contents of OPEC are 12 member countries, and they just recently voted an approval to maintain oil output at current levels vs. increasing their supply, which would have brought some relief to us (consumers) in the “gas-guzzling West.” OPEC is not going to ship any extra oil and will stick to their established quota, and as a result, some of OPEC’s country leaders are struggling to keep oil prices stabilized at a level suitable for them to make an economic profit. In short, there is plenty of oil to be transported and used, but demand is weak, thus, prices are climbing when you arrive at the gas pump.
Source: Yahoo! News sources
Source: Yahoo! News sources
Should I buy a new car now? Is it really the best time? -Lance S.
Right now is a “buyer’s market” because slow vehicle sales are obligating many manufacturers and dealerships to offer “too-good-to-be-true” financing and offers, in hopes of increasing business. Many of us have limited our spending on big ticket items as a result of high gas prices and the weak economy, but if you find the cost to repair your car is getting out of control, you may want to weigh the pros and cons of getting a new vehicle. If you are trying to adhere to a strict budget, make sure you factor in routine costs such as how often you will have to gas up, insurance rates, and gas expense(s) per week and/or month.
Source: MSN Money Central
Source: MSN Money Central
Your savings federally insured to at least $250,000 and backed by the full faith and credit of the United States Government. National Credit Union Administration, a U.S. Government Agency.