Mortgage Modifications & other Myths...

I have known that a credit score is important for a variety of reasons. I have been diligent over the years to keep it clean and in good standing. Here's the interesting thing about lenders. They have some really weird guidelines. They refuse to let anyone apply for a mortgage modification until they are NINETY days late on their mortgage. Now what kind of sense does that make? They won't even consider a modification if I'm in good standing? So, in order to play the game it requires the players to make a decision about ruining their credit. Seems crazy doesn't it?

And the modification process takes a long time. I've been in the process for nearly a year and I still don't know if I will get it. I'm in a different situation than most as I have had virtually no income for a few years. I could completely understand if I did not qualify. However, there are thousands of people who SHOULD qualify because they have an income but the banks are just toying with them.

Wouldn't it be in the banks best interest to work with individuals who have a proven history of making payments? Communicating with each and every lender ( I have dealings with 7 different lenders) is a difficult and arduous process. The worst is when I cannot understand the person on the other line due to a heavy accent. YIKES! Isn't this America? And they continue to read the script to me on every single call. No one is taking notes on my files it seems  and according to them, it is virtually impossible to call the same representative to talk about my case. Why is it so difficult?

I have relatively thick skin and I understand more than most how the lending process works. Lenders were so quick to issue loans and one would think they would be just as quick to NOT foreclose on people. I certainly don't want to lose my house however I completely understand if it happens. I have been late on my mortgage. Here's where it gets complicated. There is a process that lenders need to follow when foreclosing on a home and my guess is that they have taken a God like stand to behave however they choose.

Because of the fact the most individuals do not understand their rights and don't have the time or energy it takes to be in communication with their lender they just give up and let the house go back. Obviously the past several years have been financially challenging for the majority of people in America. Part of the problem was easy credit which the banks were eager to participate in. Now that money is tight they have virtually turned their backs on working out ways for people to stay in their homes.

I have a friend who moved out of her house because the bank was going to foreclose. This was AFTER she had applied for a modification. They kept losing her paper work and denied her a modification initially. She moved into an apartment with her two big dogs and the lender KEPT CALLING! When they realized she was no longer living in the house, according to their guidelines, they would not even consider a modification. So, she moved back into the house which would give her a greater chance of a modification. To top it off she has had a steady stream of income which was the reason she initially fell behind. Seriously? Imagine moving out and then moving back with all the labor of the actual moving, changing  utilities, packing & unpacking etc. Why are the banks allowed to get away with this?

Ideally I would like to band together and help people who don't understand the process. Ultimately I want the banks to operate in a humane & legal manner. Perhaps a class action law suit would force them to behave appropriately. I know it has been done in other states. Is it worth the fight? That's the question...

moving on..

It's strange that often it takes some of us longer to realize what exactly we need to do. As it "feels" like my life has been crumbling down around me I have unexpectedly found my head in the sand. I understand why this happens to people. Sometimes life just "feels" like too much! Once we move beyond the feelings, the way becomes clearer.

I have been a career girl and have been fortunate to have chosen those careers that feed me.. Being my own boss, helping people, networking with other business professionals, coaching, learning, growing... I am now moving into my THIRD career in just FIFTEEN years! gulp. And of course I choose careers that challenge me!

Why I didn't think of this sooner I have no idea. My husband said I need to learn a few more things so I can be REALLY good. He's probably right. Thankfully life starts at 46 and I am fortunate to have just enough gumption left in me.

I want to help heal the wounds of money. From the poor to the wealthy. Nearly everyone has had money challenges throughout their lives. Some are more painful than others. I am willing to open up my finacial wounds in order to help people. I certainly have a lot of experience in the pain department around money! sigh...

So here I go.. I'm getting 5 different licenses and will become a Financial Advisor and Money Coach. I would like to be completed by the end of the month so I need to stay focused. The great thing is as I'm learning I realize that I really do know a lot about money, finance and wealth building. That is comforting.
And as I sit in this precarious position I realize how vulnerable we are.

Where'd It Start?

It was the year 2000 and I was searching for a divorce attorney. My former husband and I had acquired a lot of debt and no savings. The fortunate thing is we did buy  2 houses so when we divorced we both got a house. The simple words that changed the direction of my financial life were, "you have nothing to show for yourself." It was humiliating to hear those words and yet it was true.  I made a decision at that point to never put myself in that kind of situation again.

I began my study of money. During this time I changed careers from that of a Realtor to a Mortgage Planner. It seemed a better fit for where I was personally going. For the next decade I became a student of money. I read a variety of books on the subject, I took classes, I read on line and I surrounded myself with people who were moving in the same direction. I vowed that I would not beome a divorce statistic.

I made great accomplishments. Starting out with one house, no savings & much debt I had plenty of room for improvement. By 2007, my mortgage career was cooking and I had managed to acquire 10 pieces of real estate. I had purchased my dream house in February of that year. I had a beach house in Manzanita and all the rest were investment houses. My investments had grown to over $117,000 plus I had a cushion of $60,000 in a money market account that I could access.  And I had removed all consumer debt from my picture. Then the real estate fall happened. Because I had all  my eggs in the real estate basket I was financially annihilated.

Unfortunately we can make every great effort to put ourselves in a better place but if we aren't prepared for a variety of tragedies, we could lose everything.  Here it is four year later and I have not made a mortgage payment on my primary residence in over 12 months because I ran out of money. My credit score, which has always been 680 or greater is 520. I'm behind on nearly every single mortgage and I have liquidated everything I could get my hands on during the process. My income went from a decent 6 figure to virtually zero.. I am losing my first home to foreclosure this month. Bankruptcy looms. So what do I do? 

I would not have believed you if you told me I'd be in this situation. When I heard about other people in financial predicaments I couldn't fully understand how it happened. Now I get it. When the real estate crash began I was in a better situation than most people. For the first year I felt relatively insulated from financial devastation. The next thing I know, I'm in the fetal position feeling like the world had ended. My career was gone, my money was gone and my real estate was all upside down!

Since 2009 I have been on this treadmill of redefining myself. It has taken  me down paths of pain, despair and healing. I have a plan to get myself out of this situation and I am going to blog about my journey. Afterall, money matters. If I can help someone out there avoid the mistakes I have made along the way, then this was worth it.  Thanks for joining me on this journey.....