If you pay your credit card bills before your mortgage, know that you are not alone.  According to a recent study released by TransUnion, consumers are choosing to pay off their credit card debt before their mortgages. 

Sean Reardon, a consultant with TransUnion and the creator of the study says that, “Conventional wisdom has always been that, when faced with a financial crisis, consumers will pay their secured obligations first, specifically their mortgages.” The study revealed that the number of Americans that chose to pay their credit card bills over their mortgages increased by 68% from 2007 to 2009.  Two states that clearly show bill payment hierarchy are Florida and California (Bills.com).

The team at American Economic Solutions feels that while it may seem like paying your credit cards first is a wise option, it can lead to much greater problems in the long run.   Whenever homeowners stop paying their mortgages, mortgage lenders move quickly to issue foreclosure notices.  And, the reality is that dealing with a foreclosure can be far more strenuous than dealing with a credit card collector.  What is more frightening, receiving calls from creditors or losing your home?  Give this some thought before you skip a mortgage payment.

There are certain things in life that must take priority over others.  At AES, we consider housing and transportation to be more important than paying down credit card balances.  If you find that you are in a compromising situation and cannot afford to pay both your mortgage and your card bills, you should always pay your mortgage first.  You should also seek immediate help from our debt management specialists.  Every day, we meet with individuals who are overwhelmed by debt.  Our team works with our clients to come up with feasible solutions that often prevent foreclosure and enable them to regain control finances.  

If you are struggling with debt, don’t hesitate to get the help you need to reclaim control of your life.  Contact us today to speak with a knowledgeable debt management professional!

On February 8, the California section of Real Estate Rama posted an article entitled “New Research Shows Red-lining in Five California Cities”.  According to the article, predatory lending is hitting cities in California that have a high Latino or African American population.  The article, which cites a report by the California Reinvestment Coalition, asserts that many banks have failed to prevent foreclosures and that there is a high denial rate for home loans amongst the Latino and African American populations.

The report produced by the California Reinvestment Coalition examined the practices of banks, including large mortgage financiers, in five California cities over the past three years.  The cities surveyed were:  Los Angeles, Oakland, Sacramento, San Diego and Stockton. 

After the study concluded, the California Reinvestment Coalition discovered that there were a high amount of predatory home loans and defaults, specifically within the Latino and African American communities.  The study also revealed that the amount of loan modifications and new prime loans were very low compared to other ethnicities and neighborhoods.

The report from the California Reinvestment Coalition brings to light four main points.  First, mortgage lenders in California have saturated communities with high-cost predatory loans.  Second, a large number of foreclosures have resulted from predatory lending practices.  Third, the majority of mortgage lenders are not working with families to prevent foreclosures.  Finally, mortgage lenders are denying home loans and loan modifications to a high number of applicants in the Latino and African American communities.

Kevin Stein, associate director of the California Reinvestment Coalition, said, “The data confirm what we have heard from housing counselors and borrowers—that banks aren’t meeting their commitments to help families stay in their homes, and that this is further destabilizing California communities.”

At American Economic Solutions, we feel these are bad banking practices that must be stopped immediately.  With the number of foreclosures already being so high and California’s staggering unemployment rate, we find it disconcerting that banks are choosing to deny select communities credit. For too long, mortgage lenders have been taking advantage of homeowners’ lack of knowledge. A lot of these mortgages were issued while homeowners were under duress and looking for options. 

The reality is, the government has been taking care of the banks, but banks are not taking care of homeowners. Lenders received billions, if not trillions, in assistance from the government.  Historically, lenders have been very conservative, but they very liberally took the government’s money.  Instead of passing the savings and money onto homeowners who need it the most, they pocketed it, leaving countless people homeless and economically devastated.

Read full story from Real Estate Rama – California….

One of the biggest challenges homeowners are facing in today’s economy is paying their mortgages.  Last year, over 2 million individuals in the U.S. went through foreclosure (RealtyTrac) and in 2010, another foreclosure wave is expected to hit consumers.

Due to the overwhelming amount of foreclosures, many homeowners are pursuing alternatives in order to keep their homes.  One of leading alternative is loan modification programs.  While loan modification programs are known for helping consumers lower their interest rates, increase loan lengths, eliminate penalties and make lower monthly mortgage payments, the sad reality is that many loan modification programs are offered by fraudulent companies that make money y taking advantage of homeowners.

At American Economic Solutions, we know that loan modifications are a viable option for homeowners, but we also know that if homeowners work with the wrong company or fall prey to predatory mortgage lenders, agents or attorneys, they may wind up in worse predicaments.

Therefore, it is important that homeowners work with a loan modification company that:

• Does not charge upfront fees.  At AES, we charge zero advance fees for loan modifications.
• Is legally compliant.  American Economic Solutions is not only legally compliant, but also SB94 compliant.
• Has years of experience.  The AES team has over 20 years of finance, mortgage and real estate experience.  Some of our team member have Department of Real Estate licenses in multiple states and are Certified Mortgage Planning Specialists.
• Has great standing with the Better Business Bureau.  AES has an upstanding history with the BBB.

These are all qualities that American Economic Solutions has.  At AES, we aim to keep our clients in their homes by offering dependable loan modification programs that are effective and ethical.  Contact us today to learn how our loan modification programs can help you save your home.

For more tips on finding the right loan modification company, check our recent article on eHow.

In today’s market, many homeowners are finding it difficult to make their mortgage payments on time.  For this reason, our team has compiled a list of frequently asked questions and answers which may be helpful for people who are behind on their mortgages.

I am behind on my mortgage.  What are my options?
Your options will depend upon your financial situation, length of delinquency and age.   For example, if you are struggling to pay your mortgage because of accumulated late fees and penalties or have a high interest rate, one of our loan modification programs may be ideal for you.  Or, if you are over the age of 62, you may qualify for a reverse mortgage.  Depending on your circumstances, other options may include short sales, bankruptcy or loss mitigation.

I know other people who have filed for bankruptcy.  Is that the best option for me?
Again, in order to determine which option will work best for you, we would have to consider your individual circumstances.  It is true that many people choose to file for Chapter 7 or Chapter 13 bankruptcy when they are behind on their mortgage payments.  While there are several bankruptcy benefits, like having your debts discharged or being able to repay your debts over the course of 3 – 5 years, it is important that you speak with one of our mortgage specialists before you commit to filing for consumer bankruptcy.  Simply put, there may be better options for your situation.

I just received a notice of foreclosure.  What should I do?
Immediately after you have received a notice of foreclosure, you need to take quick action.  The best thing you can do is contact American Economic Solutions and speak with one of our mortgage specialists.  We may be able to prevent your foreclosure and will do everything we can to help you remain in possession of your home.   Our team will review your current situation and provide effective solutions that will enable you to stop foreclosure.  Remember, the sooner you get our team involved, the better your outcome will be.

What should I do if I want to modify my home loan but don’t know where to start?
You can start the loan modification process easily by speaking with a specialist from American Economic Solutions (AES).  We are a trusted company that has completed hundreds of loan modifications.  With our help, you will avoid scams, pay zero advance fees and have the comfort of a 100% money back guarantee.  We will work closely with your lender to come up with the best mortgage terms possible.

What if I believe I was a victim of a loan modification scam?
If you have been a victim a loan modification scam, you should report the company you worked with to the Better Business Bureau.  You can also file a complaint with your state’s Attorney General’s Office.

For further assistance, contact our team today!

On December 4, 2009, Time featured an article entitled “Why the Loan-Modification Program Isn’t Working” by Barbara Kiviat.  In the article, Kiviat’s stance is simple – the loan modification program is faulty because it does not address the core issue homeowners are facing in this weak economy – lacking paychecks.

In numerous states, the unemployment rate is over 10%, which means that more Americans are without jobs than ever.  Without jobs, people do not have the financial resources to pay their mortgages, even with President Obama’s new loan modification program. 

According to Kiviat, at the close of November 2009, the departments of U.S. Treasury and Housing and Urban Development (http://www.hud.gov) announced, “they would no longer take kindly to mortgage firms that don’t make modifications lasting.”

Historically, mortgage firms were offering short-term or trial loan modifications to homeowners.  In order to qualify for permanent loan modifications, homeowners had to make it through a three month probationary period.  Kiviat writes, “More than 650,000 borrowers have been placed in trial modifications, but as of September, fewer than 2,000 had become permanent.”  With the new loan modification program, the government has one objective – to make loan modifications long-term. 

Still, even with permanent loan modifications, Americans will struggle to pay their mortgages if they do not have jobs or the financial means to keep their homes.  Kiviat says, “While an out-of-work person can, theoretically, get a loan modification under HAMP by proving eligibility for at least nine months of unemployment benefits, the program isn’t set up to handle someone without a regular stream of income.”  Therefore, the overall effectiveness of the newly launched initiatives are questionable and remain to be seen.

At AES (American Economic Solutions), we believe that homeowners can get affordable and lasting terms for their loan modifications when they work with mortgage professionals that understand their financial situations.  Contact us to discuss our no advance fee loan modification programs!

Read full story from Time…

Most homeowners assume that once foreclosures are completed, they are “free and clear” and may begin to rebuild their lives without receiving collection notices from their mortgage lenders.  Yet, there is a term that is spreading like wildfire in the mortgage industry and that term is “deficiency judgment”. 

A deficiency judgment is a lien that is filed against a homeowner whose foreclosure sale did not generate sufficient funds to repay the amount the homeowner owed on his or her mortgage.  Mortgage lenders file liens against homeowners to collect remaining balances well after foreclosure sales are completed.

According to a recent article written by Les Christie for CNNMoney.com, “Former homeowners may still be on the hook if there’s a difference between what they owed on their mortgage and what the bank could sell it for at auction.”  Christie also says that, “”deficiency judgments” are ticking time bombs that can explode years after borrowers lose their homes.”

In 30 U.S. states, mortgage lenders are allowed to file deficiency judgments, making foreclosure a never-ending nightmare for some unfortunate homeowners.  Even homeowners who are responsible are not immune from these judgments.  Christie writes, “ Because of falling home prices, borrowers who always paid their mortgage but who have run into unforeseen circumstances — like unemployment or a job transfer — can no longer sell their homes for what they owe.”  Christie goes on to say, “As a result, they are being forced to short sell or foreclose and are getting caught up in deficiency judgments.” 

Mortgage lenders will consider numerous factors before they decide to pursue deficiency judgment, like where the homeowners live and if the homeowners have second mortgages.  In the event of a short sale, a homeowner may ask the mortgage lender for a formal release form financial obligations, but many homeowners are unaware that they must request releases.  This lack of knowledge can cost homeowners down the road.   

At American Economic Solutions (AES), we know that lack of knowledge can come back to haunt homeowners with foreclosed properties, especially when deficiency judgments are involved.  We strongly encourage homeowners to obtain professional help from our mortgage specialists when they are dealing with foreclosure so they can avoid liens, like deficiency judgments, in the future.

Read full story from CNN Money…

This week, Freddie Mac’s CEO, David M. Moffett, told news sources that he is expecting a “potential large wave of foreclosures.”  In a country that was plagued with 2.8 million foreclosures in 2009 (RealtyTrac), this recent news is more than disconcerting. 

Freddie Mac is one of the largest mortgage lenders in the United States.  According to Mr. Moffett, 4 percent of the company’s borrowers are at least three months behind on their loans and may be facing foreclosure in 2010.

Mortgage financier, Freddie Mac, is not the only source predicting that a wave of foreclosures will hit the country in 2010.  Recently, USA Today reported that, “A second wave of foreclosures is poised to hit the market, potentially undermining housing recovery efforts as more homes add to the glut of inventory and drive down prices.”  Moody’s Corporation, a respected company that performs financial analysis and research on government and commercial entities, predicts that there will be at least 2.4 million foreclosures in the year 2010. 

With the expected surge in foreclosures, homeowners who are behind with their mortgage payments need to be prepared or else they could lose their homes, damage their credit and be confronted with tough economical challenges.

Our mortgage professionals know that in this economy, homeowners are at a disadvantage because they are without jobs and cannot afford to pay their home loans.  Each day, we receive calls from people who are on the verge of foreclosure and do not know what to do next.  Our team takes these calls very seriously and works tirelessly to come up with solutions to stop foreclosures. 

When clients are looking for an alternative to foreclosure, we introduce them to our no advance fee loan modification programs.  Our loan modification programs are unique in that we offer a 100% money back guarantee.  Anytime people are dealing with foreclosure, they have little to lose by working with American Economic Solutions.  We are committed to providing reliable services that produce results.

American Economic Solutions (AES) is fortunate to have a team that is comprised of experienced, knowledgeable and committed foreclosure prevention specialists.  One of our top agents is Ryan O’Keefe.   As one of our leading agents, Ryan works closely with our clients to make sure that they are able to remain in possession of their homes.  He knows that dealing with foreclosure or receiving a notice of foreclosure can be daunting for homeowners.  His primary aim is to provide AES clients with reliable solutions that will reduce their monthly expenses.  Ultimately, this can help them stop foreclosure and stay in their homes. 

Ryan O’Keefe works diligently to keep AES’ clients informed, engaged and moving toward feasible resolutions.  With his expert advice and guidance, clients are given the effective choices they need to stop foreclosure in minimal time.  He also focuses on establishing strong relationships with area mortgage lenders, which enables our company to negotiate better loan terms on behalf of our clients.  With Ryan’s help, many of our clients have been able to fight foreclosure and regain their financial stability.

Check Out Ryan’s Official Blog for an Expert’s Point of View
At American Economic Solutions, one of our main goals is to provide our clients with the information they need to remain informed on the topics of debt settlement, debt management and foreclosure prevention.   Ryan O’Keefe’s blog (www.amecsolutions.blogspot.com/) is a great resource that offers expert insight on these specific financial matters.  We hope that you will continue to visit Ryan’s blog as he continues to post updates regularly.

If you would like to speak with one of our debt and foreclosure specialists, do not hesitate to contact us American Economic Solutions today!

In a recent article in the November 25th New York Post entitled “Judge Blasts Bad Bank, Erases 525G Debt”, the author details how Suffolk Judge Jeffrey Spinner wiped out more than $525k in mortgage payments to the California bank formerly known as IndyMac Bank, now known as OneWest. At American Economic Solutions (AES), we have run into several issues with this bank and the way they handle – or better yet mishandle – the clients that we represent.

AES has continually found OneWest’s loan modification practices to be disconcerting. The New York Post seems to be in agreement with our company’s viewpoint, “Spinner pulled no punches as he smacked down the bankers at OneWest — who took an $814.2 million federal bailout but have a record of coldbloodedly foreclosing on any homeowner owing money.” AES’s stance is this – if the banks received a bailout from the TARP (Troubled Asset Relief Program) – so should their clients!

Now, in the case of OneWest (IndyMac), at least they are getting exposed for the lack of service they have provided their clients who had qualified for loan modifications. It’s just a shame that it took this long for something to happen. We hope to see more people take action against these types of unethical business practices. Thank you Judge Jeffrey Spinner.

To read more from the New York Post’s Article visit: http://www.nypost.com/p/news/local/judge_kos_mortgage_to_slap_bank_28ZS1oW8Y58z6gu1AQbWMI#ixzz0YMzCXGKQ

This article written by Justin McHood, entitled “Loan Modification: What to Expect if You are not Currently Late” addresses questions that the Foreclosure Prevention Consultants at American Economic Solutions encounter every day.

In the section entitled “When Loan Modifications Make More Sense than Refinancing”, McHood discusses the topic of when to refinance versus a loan modification. He makes a great argument for homeowners who owe more than their house is worth. He suggests that it makes more sense to work with the homeowner’s lender to get the home loan modified, which may leave the homeowner in a better financial situation.

Another question our Foreclosure Prevention Consultants are faced with every day is, “If the client is not late on the mortgage can American Economic Solutions help the homeowner?”

McHood addresses this obstacle in the next portion of his article in the section entitled, “Loan Modifications: What To Expect If You Are Not Currently Late.” The best recommendation our Foreclosure Prevention Consultants can give is to let the homeowner know that the loan modification varies from lender to lender. While the loan modification process varies by lender, it also varies by each individual borrower’s situation. This is why at American Economic Solutions, we feel it pays to have an authorized company represent the client. We know how to work with various lenders and maximize homeowner/borrower benefits, not the banks’ benefits.
To read the full article referenced above, please visit the following site:
http://www.zillow.com/blog/mortgage/2009/01/28/loan-modification-what-to-expect-if-you-are-not-currently-late/