3 posts from 2008

Foreclosure Prevention Workshop to be held at Freedom Debt Management, Inc.

Boca Raton, FL 8-06-2008

Freedom Debt Management, Inc. (“FDM”), a 501(c)(3) non-profit provider of financial literacy and budget counseling will host a free “Foreclosure Prevention Workshop” for residents of Palm Beach and Broward Counties on Wednesday, August 20^th, 2008 at 6:30PM. It will be held at FDM’s headquarters located at 941A Clint Moore Rd., Boca Raton, FL 33487

FDM has refocused a substantial part of its counseling resources to the housing crisis as South Florida is one of our Nation’s hardest hit areas. Mr. Darish Still, Director of Education for FDM and author of their financial literacy guide entitled “Your Money” states “The biggest mistake people make is not communicating with their lending institution as soon as they recognize their ability to make the payments is threatened.”

President Bush signed the “Federal Housing Finance Regulatory Reform Act of 2008" on July 30th, making this workshop quite timely. Referenced as the “Hope for Homeowners Act” by many; FDM’s goal is to help people position themselves to take advantage of the program when it takes effect October 1^st, 2008. “It all starts with a budget” Mr. Still continued, “people need to begin tracking their income and expenses closely and if needed, seek help from a financial counselor to develop a workable budget or spending plan.”

Attendees will learn what it takes to qualify for the new aid, along with any other options that currently exist for those struggling with mortgage payments.

For Further Information or to receive a free copy of FDM’s Financial Literacy guide please call:

Darish Still

Director of Education

Freedom Debt Management

561-362-3011

dstill@freedomdm.org

One of the most common reasons for divorce is finances. There comes a time when every couple has to discuss money. These discussions can go relatively well when all is in order and the lines of communication are open. However, if the couple does not openly discuss money and later a spouse discovers that one or both parties have mismanaged the finances, tempers may flare.

In today’s society it is often accepted to enter into relationships with the “you have yours, I have mine, and we have ours” mentality. I’ve personally found this approach to be ineffective because you both are keeping a part of your financial lives separated. It’s like a “secret money life” that often results in hidden spending or even worse, hidden debt. When secrets are kept the end results are usually embarrassment, anger, guilt, and finally resentment. A marriage must be about sharing. Yes, this includes finances.
As a credit counselor, I have helped numerous couples with financial problems. The most common case is when a spouse has secretly opened credit card accounts, maxed them out, and only fesses up about it when the bills are out of control. At this point the other spouse is upset thinking “why didn’t you tell me about this sooner”? To add insult to injury; collectors are calling, letters are in the mail, and both of your credit scores are rapidly decreasing. The accumulation of these events can place a major strain on a marriage.

Don’t wait for a financial emergency to talk to your spouse about money. Through my experiences I’ve learned that there are five financial principles that should be addressed at the very beginning:

1. Commit to share. Marriage is about sharing everything. Even your money! This is the most important principle.

2. Identify and create goals together. Since money will be used to accomplish the goals that you set. It’s important that you both are on the same page with what direction the marriage will be headed. Be sure to discuss and align goals, priorities, and personalities.

3. Determine roles. Assign roles to each other based on each of your personalities. If your spouse is good at paying bills on time, you may want to assign them that role. Some are patient shoppers and are good at finding deals, assign them a buying role.

4. Review spending together. Create a spending plan together and review it regularly. While reviewing it you can both mutually agree on adjustments.

5. Compromise. Nobody can have everything they want all the time. You both must compromise.
These principles are not a cure for all of the problems that a troubled marriage can throw your way. However, you can achieve much more operating together as one unit than struggling to do things individually. What’s important to remember is communication is the key. When you both become great at communicating, the chances are high that yours will be a successful union.

Darish K. Still

Foreclosure has become a serious problem in the US.  Every three months 250,000 new families will enter into foreclosure. –Mortgage Bankers Association.  Much of this crisis is attributed to the influx of predatory lenders into the subprime mortgage market, a predatory lenders playground. A market littered with lenders, appraisers, mortgage brokers, and home improvement contractors; each is out to get their own piece of the pie at the buyer’s expense.  Predatory lenders promote their loans to buyers who would not qualify for a traditional mortgage due to limited or problem credit histories.  Often this market includes those who are not knowledgeable about the home buying process yet are so desperate to buy a home they will sign anything, and fast. 

 

Some of the characteristics of predatory loans are making unaffordable loans based on the assets of the borrower rather than on the borrower’s ability to repay an obligation; inducing a borrower to refinance a loan repeatedly in order to charge high points and fees each time the loan is refinanced (“loan flipping”); or engaging in fraud or deception to conceal the true nature of the loan obligation, or ancillary products, from an unsuspecting or unsophisticated borrower –FDIC. 

 

Above anything else, if the deal sounds too good to be true chances are it is.  Ask questions.  If you feel that you’re being deceived have an attorney review the documents. If you’re an inexperienced borrower, get help from a housing counselor.  Taking a few precautionary steps will ensure that your piece of the American Dream is yours to keep.

 

Darish K. Still