Monthly Archives: September 2009
There is something about living in the United States that always makes the worst of times seem like the best of times. For those of you reading this, who are particularly struggling right now, you may be shaking your head and resisting the urge to mark this as spam. Before you do that, though, let me say it this way. In America, even when the economy is only beginning to sputter to a start, there is still opportunity. Even when the Dow wobbles to and fro, there is money in the market. And even when the headlines shout hundreds of “NOs”, there are thousands of “Yeses” all over the place.
Here’s an example: I’m working on my computer this evening and see this crazy news story. An airline that caters only to pets just opened shop. The main cabin of the aircraft is filled with carriers for dogs and cats. Flight attendants check on the animals regularly and perhaps even offer them an in-flight meal service!!! I know, crazy right? Well, while other airlines are struggling to survive, “Pet Airways” is booked solid for the next two months.
Just imagine who came up with this brainchild and then wonder to yourself, like I did to myself, “Why in the world did I not think of it!!!”
For $250 a pop ($100 more than what it costs to fly them in the cargo hold), people are bidding their pets farewell to fly in comfort on an animals-only airline. Just when I think I’ve read everything!
The reason I bring up this story is because although the economy is off to a shaky re-start, there are people who are launching the wackiest businesses and they are actually getting customers!!! So, even though you may be feeling this economy a little bit more than the next guy or gal, just remember that people are willing to pay their money if you’re willing to put a little creativity into your product or services.
This is America, and one of the things that I love about it is its everlasting, always present possibility!
Always look for and enjoy the possibilities!
To Your Success,
President of I’m the Solution
If you’re wondering whether or not you should get in on the short sale and loan modification action, you need look no further then to what the government is strongly suggesting. With the advent of the “Making Home Affordable” enactment, the government is clearly outlining ways that banks and homeowners can stay far away from the grips of foreclosure.
The Short Sale Incentive
Under the new short sale incentive, lenders can receive a $1,000 payment from the U.S. Treasury for allowing the owner to sell the house for less than the amount owed on the mortgage and for accepting the proceeds as full repayment.
Lenders can also receive $1,000 for accepting a deed-in-lieu transaction, in which the deed is simply transferred to the lender instead of going through a costly foreclosure.
Homeowners who agree to short sales or deed-in-lieu deals can receive up to $1,500 in closing costs. To help stop second mortgages from blocking the deal, the Treasury will pay second lien holders up to $1,000 to relinquish their claims in such transactions.
The Loan Mod Incentive
Under Making Home Affordable’s new second-lien program, borrowers whose first mortgages are modified will automatically have payments reduced on their second mortgages as well, provided the first and second-mortgage lender participates in the program.
Twelve mortgage servicers currently do. Among them are large banks including, Bank of America, Wells Fargo, Countrywide, Citibank, Chase and others.
Eligible homeowners looking to modify their first mortgage must be an owner-occupant of the home; have an unpaid principal balance that is no more than $729,750; have a loan that was originated on or before January 1, 2009; have a mortgage payment (including taxes, insurance, and home owners association dues) that is more than 31 percent of their gross monthly income; and have a mortgage payment that is not affordable, perhaps because of a significant change in income or expenses.
Under the new second mortgage program, in addition to lowering the payment, lenders can also opt to erase a borrower’s second mortgage in exchange for a lump-sum payment from the government.
Although banks haven’t been perfectly aligned with the government’s suggestions, they are becoming more so with the passing months. It’s now time to capitalize on these changes.
To Your Success,
President of I’m the Solution
PREVIEW: Look for next week’s Millionaire Tip: 1st of a 3-Part series on The 9 Characteristics that Millionaires Share.