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Today I’m going to comment on an article that I just read over at; starexponent.com

The title is “Foreclosures up 355%”

Now, that sort of news is gathering everyones attention and frankly scaring the hell out of everyone.

Should you be scared too?

Honestly - only the Stupid Home Owner would be scared of this sort of hype.

I’m going to go ahead and comment on just a few paragraphs from the article that I think will help you learn the most, and you can go read the article yourself by visiting their website and searching for the article title I mentioned above.

Here’s the first point I want to comment on;

The article said…

“With the frenzy came adjustable rate mortgages and interest-only loans that at the time probably seemed too good to be true.”

The frenzy they spoke of was when home values were skyrocketing by 28% per year and it was like the California gold rush - get in now while it’s hot was the mantra.

First off, I’m sure everyone has heard the “too good to be true” concept. Hell everyone has been preaching that for years. If something sounds too good to be true - IT IS…HELLO?

The too good to be true they heard was — “sure you can buy this $400,000 home and only pay $1200 per month. Yes your friends are paying three times that but we’re gonna give you a deal. Sign here.” The article goes on to talk about a Mr. Garcia and states;

“In 2005, Garcia said, he purchased his three-bedroom house on a cul-de-sac for $389,000. He secured financing through two national lenders - one in Colorado and the other in Texas - that were attached to the national builder and took out two adjustable rate mortgages.”

My comment: He took out “TWO” (2) - Did I say 2? Yes 2! Adjustable Rate Mortgages.

They went on further to say…

“The 30-year-old meat cutter started out paying $2,700 a month and said he did not fully understand the implications of an adjustable rate. Two years later, Garcia says he’s facing a 30 percent increase over the next few months to his mortgage payment - to $3,500.

“Garcia said he’s trying to sell his home before foreclosure happens, but that he’s having a hard time doing so even at a reduced price of $330,000 or less.”

AND HERE WAS THE BEST PART OF THE WHOLE ARTICLE >>>

He blames his current situation on the builder for hooking him up with faraway bankers who don’t care about the local homeowner.

“It’s because of bad people like that,” said Garcia, who was born in El Salvador. “He just wanted to put money in his pocket.”

I literally fell off my plush office chair, smashed a bag of Doritos and spilled my Mountain Dew all over the place when I read that bunk!

He blames the builder huh!!

For “hooking him up” with faraway bankers who don’t care about the local homeowner.

Believe me, they care about him - hell they cared enough to send him a payment booklet and let him have the home in the first place didn’t they??? You think those faraway bankers want to lose tens of thousands of dollars on Mr. Garcia’s financial oversight.

Any Stupid Home Owner can stop by the local book store or even the library and read any mortgage book available and find out about what happens with adjustable rate mortgages once they begin adjusting.

Mr. Garcia goes on to say “It’s because of bad people like that,”…

What he really meant to say is; “those bad banking people gave me a really nice home and now that I’ve made a bad mortgage loan decision they want to take it back because I have stupid home owner syndrome.”

It’s everyone else’s fault isn’t it.

Mr. Garcia (and everyone like him) - YOU GAMBLED, YOU LOST! You gambled on the fact that home values would continue to skyrocket. How many people lose in Vegas and blame the slots or the dealer? Lots of them.

Listen, it’s a shame that someone could lose their home - but there IS a way out for some of them.

One solution is to get a free consultation from my friends at Home Assure where they have more than a dozen ways to save your home. They use techniques such as;

-Reinstatement Plan
-Loan Refinance
-Pre-Foreclosure Sale
-Deed-in-Lieu of Foreclosure

…and many more!

If nothing else, they have an excellent “Frequently Asked Questions” page that should prove to be more than helpful.

Also, if you’ve been unable to avoid foreclosure, you DO have the Fair Credit Reporting Act on your side in the sense that you can dispute negative items on your credit report and if they can’t be verified they must be removed.

I don’t suggest getting involved in sending your own form letters like most of the so called internet credit repair hacks would have you do but I do recommend hiring the best online legal firm that can handle the Credit Repair for you. I’ve use them personally and know they can remove just about anything.

If all else fails - at least learn more about adjustable rate mortgages and start your mortgage process by buying a home you can afford at a stable 30 year fixed rate, maybe even with an interest only option (which is unlike the adjustable rate, it’s typically 10 years of interest only).

Home values will rise again - guaranteed and when they do you can upgrade using the new found value of your affordable home to afford even more. Live within your means and avoid the Stupid Home Owner syndrome by educating yourself on the mortgage process. It’s really not that hard.

Additional Resources;
Stop Foreclosure Today
Legal Credit Repair
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