Your Questions About Mortgage Rates Forecast

Mary asks…

What are the odds of negotiation my debts – detail included?

Hello,

Without assigning blame for the past, here is where my spouse and I are at, and here is the situation.

Current Credit Score 710 -Trans Union

In December 2006 We enrolled in Credit Card Counseling:
December 2006 Credit Card Debt = $69,257
Current Credit Card Debt = $35,318
PMT = $1530 per month
Average Interest Rate = 9%

Mortgage = $169,483.56
interest= 7.55%
PMT =$1222 without Escrow $1457 with Escrow
Value = Estimated at $130 in this market.

Situation

Contract at work changed = Various decreases over 2009 growing to a negative $1400 per month reduction by year end.

Unplanned third child coming in July = $550 estimated monthly cost increase.

Second Job obtained = $777 per month increase

Total Net income monthly deficit by year end = $1,173.

We have approached both the Credit Card Counseling Company and the Mortgage Company and provided them all of the details, tax returns, w2’s ect. I have provided them documentation of the details of my forecast.

What do you think I might be able to renegotiate with the House and the Credit Card companies. We have never missed either payment. We are alright at the moment, just saving money bracing for the summer and fall. Our goal is to be in a position to remain current, keep the house and pay down the debts.
Judy, you did not answer the question?

admin answers:

I don’t know how much this will help you but you actually have a decent credit rating, have you thought of lowering your house payment by getting a lower interest rate by refinancing your mortgage. It could free up monthly income to reduce credit card debt

Daniel asks…

What are my chances of renegotiating debts?

Hello,

Without assigning blame for the past, here is where my spouse and I are at, and here is the situation.

Current Credit Score 710 -Trans Union

In December 2006 We enrolled in Credit Card Counseling:
December 2006 Credit Card Debt = $69,257
Current Credit Card Debt = $35,318
PMT = $1530 per month
Average Interest Rate = 9%

Mortgage = $169,483.56
interest= 7.55%
PMT =$1222 without Escrow $1457 with Escrow
Value = Estimated at $130 in this market.

Situation

Contract at work changed = Various decreases over 2009 growing to a negative $1400 per month reduction by year end.

Unplanned third child coming in July = $550 estimated monthly cost increase.

Second Job obtained = $777 per month increase

Total Net income monthly deficit by year end = $1,173.

We have approached both the Credit Card Counseling Company and the Mortgage Company and provided them all of the details, tax returns, w2’s ect. I have provided them documentation of the details of my forecast.

What do you think I might be able to renegotiate with the House and the Credit Card companies. We have never missed either payment. We are alright at the moment, just saving money bracing for the summer and fall. Our goal is to be in a position to remain current, keep the house and pay down the debts.

admin answers:

Well, first I can tell you that you are the best person to manage and make desisions on your money and debt, it seems that you are well educated so I will first point out that you should read the book the total money makeover by dave ramsey (you can pick it up at any library). Then, I will suggest you if you can find a lower interest rate for your house to go ahead and refi just to get your payment down.

As far as the credit cards, I myself after reading the book and trying to find ways to cut back I called each credit card company and asked them to give me a locked payment, usually they will give you a lower interest and payment for one year and a little higher interest but low payment for two years the caviat is that your accounts will be closed, but this really doesn’t matter as long as you are making payments. By the way if you have AMEX (you’re screwed) they do not negotiate anything. So if you do, I’d try to pay that one off first.

Then using the snowball method design in the book I mentioned you can start your way into getting debt free, and not paying other people to do the job you can do.

You just have to be very disciplined, and for a little while stop shopping and stop dining out. Sacrifice for at least two years so later you can live like no one else.

Good Luck!!!!

Laura asks…

Should I wait some weeks before illegaly emigrating to USA?

Rigth now I am reading “The Economist” and their forecast is for more plummeting of US currency, my Gold and Euros will buy more of US properties. What do you think ?
“Even cuts in interest rates, which financial markets are pricing in increasingly aggressively, would not necessarily address the underlying problem. Restoring faith in American mortgage markets, and the cornucopia of investments derived from them, is the bigger challenge. To do that, many had hoped this week that Fannie Mae and Freddie Mac, America’s two governement-sponsored mortgage giants, could step in and mop up some of the subprime loans that the private sector is too fearful to buy. But President George Bush appeared to dismiss such a response on August 8th, which may be another reason why the markets so suddenly lost their nerves once again” – The Economist

admin answers:

NEVER enter Illegally!

Paul asks…

Is the US heading for another great depression?

The avalanche of bankruptcies has begun. Six US companies of substance have defaulted on bonds over the past fortnight, against 17 for the whole of last year. Diane Vazza, S&P’s credit chief, says defaults are rising at almost twice the rate of past downturns. Some 174 US companies are trading at “distress levels”.

The California city of Vallejo (117,000 inhabitants) has just made history by opting for Chapter 9 bankruptcy, the result of tax erosion from a 26pc fall in local house prices. Half Moon Bay may be next.

Talk that the worst is already behind America seems to just be wishful thinking. In addition, forecasts indicate that the level of mortgage defaults will increase in 2008/2009 as a new range of non sub-prime mortgages ratchet up their interest rates.

How bad do you think this crisis will get?

admin answers:

I don’t believe the worst is over yet. It may turn around after a new president gets elected and that will take some time.<<<<<<<<<<<Just my opinion!

Sharon asks…

Halal or Islamic Mortgages?

There are quite a few groups/companies on the market who claim to be offering “shariah compliant” or halal mortgage.

The normal mortgage is prohibited in Islam because Islam does not allow usury or riba (higher interest).

The way these halal mortgages work is they basically forecast a market trend. If you want to buy a property. You tell them and they buy it for you and then you pay them back over installments.

For example: They buy a property for 100k. And they sell it to you for 200k. But they agree for you to pay 200k over monthly installments of 25 years. Regardless of whatever happens to the base interest rate of Bank of England or whatever.

They claim, this method doesnt break Shariah law and they claim to have favour of many Islamic scholars.

The above example in simple terms can be explained as: The price of a property is 100k and you’ll pay them 100k over 25 years. As you are not yet the legal owner until the 25th year, you pay the rent of that house for 25 years which accumulates to additional 100k.

Many people accept this and many deny this as compliant with Shariah.

Whats your opinion?

[P.S. Please dont copy and paste things from google search, I can do it myself]

admin answers:

Good information ..this is the way its done as i heard ina lecture….but very few bank follow this very few countries have islamic banking
and about the the money deposited in the bank .bank willl invest depositers money in bank as well as gives loan based on shariath rules …and depositers have to share risk .if the investment in market was loss even depositers shares the loss.this is the way islamic bank runs i guess

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