Wednesday, December 29, 2010

Survive Foreclosure

This article is aimed at those whose situation is such that they are eligible for those programs that are available. Obviously if we consider all those with mortgages they can be divided into those who have no problems with meeting their obligations right now, those who are in difficulty and can use any available help, and those whose circumstances are unfortunately beyond the help of the programs. (Even in the last category it is still a good idea to check with the resources given here).

So for those in the category that can still use help this is one time when it is sensible to follow the advice of the government and get help now! The first thing to do is to get Foreclosure Avoidance Counselling. HUD approved counseling agencies are available to provide you with the information and assistance you need to avoid foreclosure. This link has a handy tool to let you find an agency in your state and area. Counseling is provided free of charge by non-profits working with the government. There is no need to pay for these services.

It is very important to act fast to avoid foreclosure when you suspect you are at the slightest risk. Don't allow things to drift until you end up being beyond help. Always contact your lender immediately you suspect you will be in difficulty. Don't assume your problems will automatically correct themselves. This handy guide from HUD gives the information and directions you need including the information you need to have ready when you call your lender.

There may also be programs that are run by your state and you can find out if this is the case for your state here. Just click on your state and you will be taken to the information.

You can also access much of the above information through HOPENOW including a self assessment tool.

Wednesday, December 22, 2010

AMBAC 2010's Bear Stearns?

Media preoccupation with other matters, either the WikiLeaks drama or the Holiday Season, has meant that the bankruptcy of AMBAC, the second largest bond insurer before it suffered huge losses on risky mortgages, has gone relatively unnoticed.

The Global European Anticipation Bulletin issue No. 50 is suggesting that this oversight on behalf of the media isn't a complete accident, noting the hyperactivity of e.g., the Financial Times which has been publishing two or three articles a day on the so-called Euro Crisis, a crisis which the Bulletin dismisses. It points out that no investor has lost money on the recent Greek and Irish crises whereas tens of thousands have lost considerable sums in the recent US muni crash.

According to the GEAB article, the US Muni crash is only a minor harbinger of things to come and it foresees a major crisis in sovereign debt in the coming year at which time the Ambac failure will be likened to the way in which Bear Stearns' failure preceded the earlier crisis by a year.

Anyone with any interest, which is to say everyone, will want to read the article and pay attention to the items referenced in the footnotes.