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!

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!

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/