Financial stress is a common problem if you are forced into a frugal lifestyle due to personal crisis such as a death in the family, loss of a job, divorce, mounting credit card bills, etc…If not controlled, this can lead to depression, feelings of fear and anxiety, as well as insecurity.

How you deal with these types of feelings during a crisis can be a critical factor in deciding the outcome. If you recognize any of these feelings in yourself, you need to get help. Talk to a friend, a loved one, a counselor, your doctor, or your pastor….but talk to someone. Often times a listening, unbiased ear will give you insight and solutions.

The first thing you must understand is that there are always solutions. It is just a matter of sitting down, doing proper planning and goal setting as well as getting that much-needed emotional support from friends and family. Bringing this all together will enable you to start anew, build on a new outlook and elevate your self-esteem.

You can negotiate directly with the creditors or you can hire a professional to negotiate for you. It is not uncommon to negotiate down to as much as 60% of what you owe.

Payments can be made or if you have access to some capital, you can make a lump sum payoff. I recommend using the services of a professional negotiator to instigate a debt settlement plan. Be aware that when you settle for less than the amount you owe, it is likely that your credit will get damages. if you are in need of a loan, an auto purchase, or a lease, you should complete those prior to debt settlement. By doing this, you insure that you have the best rates for your loan prior to your credit getting damage.

One thing to realize when it comes to credit and your FICO score. That number is only good when you need it. Credit scores can get repaired. With proper planning, you can avoid having to obtain a loan with damaged credit and insulate yourself from this aspect of debt relief. Once you have your debts cleared, you can begin to repair your credit.

Financial stress and the related problems that accompany it is a common problem, especially in our current economy. Do not be a victim…get help. Empower yourself through these challenges and create a new destiny…create a new you.

Principal reduction is something all of us would like to participate in during this housing crisis.  Do lenders really do this?  Countrywide has been offering principal reductions to borrowers who fit the criteria for this loan modification option.  Here is the deal…eleven states were involved in a class action lawsuit against Countrywide claiming that Countrywide engaged in predatory lending practices.  Countrywide settled claims worth approximately $8.6 billion to homeowners who held risky loans.  Since that time, two additional states were added into the settlement.

If you lived in CA, AZ, CT, FL, IL, IA, MI, NC, OH, TX, WA, TN, MS, and PA.  If you lived in one of these states and originated loan(s) with Countrywide between January 1, 2004 and December 31, 2007, you maybe eligible to participated in the loan modification program that Countrywide is offering.  If you have challenges paying your mortgage, you should still apply to get assistance with lowering your mortgage payments to avoid foreclosure or short sale.

Homeowners who are stuck in those pay option arms are prime candidates for principal reduction loan modification. Most borrowers did not understand the real risks involved when they applied for these types of loans.  They are now faced with few options.  The Federal government is encouraging all borrowers who are in mortgage stress to apply for loan modification.

Each loan modification is reviewed on a case by case basis.  Qualification is based on hardship and the ability to re-pay the loan.  At Credit Capital Solutions, we take a proactive approach in favor of the borrower.  We pre-qualify each borrower to see if they will fall within the guidelines required by lenders, based on the Obama Plan. We do not charge a fee unless a positive loan modification comes back form the lender.  If there is no improvement, there is no fee.  We have set this a precedent since there are so many predatory loan modification companies operating illegally  in a realm set to take advantage of clients who are suffering financial challenges.

At Credit Capital Solutions, we also offer debt reduction programs, as well as credit repair. If we feel we cannot help your situation, we refer to other experts who can solve your problems…this is being Empowered. At  Credit Capital Solutions, we proactively Empower you.  For a discreet and confidential free consultation, contact me directly: info@empower2go.com…

Undergoing the hardships and stress of losing your home can be overwhelming.  There are a number of options to consider no matter which direction you choose…

Some important things you should be prepared to avoid if you find yourself considering foreclosure…beware of foreclosure scams:

*Scam artists often target homeowners who are struggling to meet their mortgage commitment or anxious to sell their homes.  Recognize and avoid these.

*Research HUD…get assistance from a HUD-approved housing counselor is free.

*Beware of anyone who asks you to pay a fee in exchange for a counseling service or modification of a delinquent loan.

*Do not sign over the deed to your property to any organization or individual unless you are working directly with your mortgage company to forgive your debt.

*Never make a mortgage payment to anyone other than your mortgage company without their approval.
Research your options.  Discuss loan modification with a qualified loan modification expert.  Get pre-qualified to see if loan modification is right for you. If you do not meet the lender’s criteria for loan modification, then short sale is probably a good option to consider.  Retain the services of a real estate agent who specializes  in listing short sales.  An experienced agent will take control of the situation and deal with the lender directly, thus removing the stress away from the homeowner.  Selling your house short will do less damage to your credit than letting your house go to foreclosure.  Under Fannie Mae and Freddie Mac guidelines, when you foreclose on a home, you will not be able to qualify for a mortgage for seven years.  If you do a short sale, the time frame decreases to three years.

Before you make a decision that can potentially make a major financial impact on your life, it is important to understand the basic principals of loan modification, short sales, and foreclosure…due your due diligence…do your research…Empower yourself.