Molinda Goforth

Helping You Prosper!

Your House Payment Is Late!

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I have been there, felt that pain, wore that tee shirt.  Your house payment is late.

How does this picture go?  Within a day or two you will start getting calls from the lender.  Remember, you are the servant.

Actually though, if you haven’t made the payment within 30 days on the 31st day you become one over 30 on your credit report.  If you had made a partial payment as we noted last time you could make the other half and late fees and start over with the late process.

Continue on, making other bills other than the house payment and one month turns to two then you are in a critical stage because at 30 over 30 days late foreclosure becomes real.

From observation, I have notice the first thing on a troubled home owners mind is to borrow the path out of debt.  Once a house payment is documented as late, it is almost impossible to refinance.

What are some options to do during troubled times to avoid this train wreck?

 

 

Saving Home, An Ounce of Prevention

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When you borrow money to pay for a house, you become a servant to the lender. As a matter of fact, every debt you owe makes you a servant to that lender.  No wonder, we have conflict in our emotions when we owe money.

Setting a priority that the mortgage payment comes before anything is the first step in saving home.

If your mortgage payment is $950.00 and you only have $500.00 to pay on bills, it seems to make sense to use that 500.00 to pay the ones that can be current with that amount.  Wrong Choice!

Pay the $500.00 on your mortgage payment and find a way to EARN the remainder within the 30 day period.

What happens if you don’t?

Saving Home

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It is great to share my little house vision.

Some of my friends are facing foreclosure.  As I listen to them and feel the pain they are in, it has made me stop to reflect.

Perhaps, it is time for me to pause and explore how you save the house you have when faced with foreclosure.

Obviously, when one is in trouble on a mortgage payment, it becomes difficult to think.  So, we will go through the next few post by sharing what others whom I have worked with on a one to one basis have done to change the circumstance.

Since the house payment is usually the highest payment let’s start with a decision there.

Remember the day you signed the papers to own your home?  You were filled with confidence and joy for the decision you made to enjoy the American Dream to own a home.  You “knew” you were able to afford the house because the mortgage company approved you.  Later, I want to address how an individual should decide whats affordable, but for now we will focus on what to do when you are delinquent on home payments.

Went on Vacation!

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I am Back!   Guess I have been lost and went to find me.  I went to sleep early last night and obviously I woke up early.  It is way too early.  However,  in Seaside, Oregon my son seems to be awake too and he had sent me a link to a copy of a newspaper article about Aunt Josie, my great grandmother.   The copy of the article is timely as it reminds me of the reason I started this blog, going back to my roots and continuing the legacy of belonging to this family.  She delivered as a midwife over 5,000 babies.  I want to be instrumental in helping that many people build a little house and to pay for it in 5 years.

In our present economy it is critical for us to remember the honesty, hard work and joy of our ancestors.  Read about Aunt Josie here

Landing Here?

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I made an offer to purchase an acre of land today.  It is in the county has a dip in the middle and is surrounded by trees.

The beauty and complications of this offer is that it is a portion of an existing property that is financed by the bank.  For the seller who is struggling with making the payments on her existing loan, selling a portion would alleviate some of the stress.

The complication includes the offer that wraps around the existing mortgage and will need the banks approval.  Should we receive that I will include the details for you to copy.

It has been an awesome day.   Tomorrow, I will make offers on 2 additional properties.  The reason for the multiple offers is that when you are negotiating to purchase without putting money down, it is a numbers game to receive a good acceptance.  It’s a fun way to go!

Define Plan A, Define Plan B

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Plan A for me was the Dream, of completing a little house from a storage building in three months. Due to several obstacles namely money, money and more money Plan A needs to travel to Plan B.

When working with Clients I would define Plan A as the plan to purchase their Wants.

.Plan B identifies the needs and converts the wants to accessories that can be added in time.  Plan A is like an addiction that calls for all the debt that the mortgage company will approve.  The mortgage is approved and many times income changes in a negative way thus adding to the foreclosure list.

Is there life after foreclosure?  An alternative to foreclosure maybe a short sale.  We will look at these two solutions and life after tomorrow.

In the meantime I am physically continuing my quest for land.  Each night I ask my brain for a solution.  Day after tomorrow I will share a creative thought!

Housing Change on The Horizon

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Control and Delete is the solution for our  preconceived ideas for housing.

Previous trends in Real Estate were:

  1. First Time Buyers find little house and little payment
  2. Second time, move to bigger house, bigger payment
  3. Get way out of control!
  4. The results of this trend equal more and more debt.

Recently, I was a consultant for a young professional couple whose financial statement reflected:

  • House payment $1,400.00
  • Student Loan payment $1,900. (per month)
  • 2 car payments
  • fixed expense and groceries

The house is $7,000 in arrears and with a foreclosure notice.  They each have a masters degree.  How sad is this?

What is the solution?  It is Plan B.  Affordable Shelter/Little House, No payment and mix well with common sense.

Think about it.  We each must have food, clothing and shelter. A big house doesn’t only add a big payment, but higher utility bills, more expensive insurance, higher taxes, and maintenance.

Do you see a little house in your future?

Do You Have A Hidden Little House?

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Is there money hiding in your house?

Do you have a room that would convert to a home for a single person?  How do you determine if it would be profitable for you to rent a room in your home.

Does the room have a private entrance and available bathroom?  Is it furnished?   Do you have an empty room?

Can you answer yes to any of the above questions?  Depending on your location a room could bring a $150.00 per week or $600.00 per month.

Analyze your present utilities.  If your power is 100.00 per month and 3 people now stay in your home, divide that by 3 and that will be $33.33 per person.  Divide by four (for your potential renter) and it will be $25.oo.  Do this for each bill that will benefit your renter.

If your total is $150.00 and you plan to rent it for $600.00 per month your net will be $450.00.  Is it worth it to change your mindset regarding your home and rent a portion of it as a little house for someones?

For more suggestions regarding sharing your space for profit, just drop me a note in the comment space.

 

Starting Over – Plan B

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Plan B is more defined with dates and goals than Plan A.  Since I am following the Four Hour Chef to accelerate my activities, this month includes a weight loss of 1 pound a day.   I started on January 14th and I am down 3 pounds.

Finances, will expose a budget by the middle of February.  At this point I don’t want to make it public until a couple of accounts are negotiated and a defined let’s make it work budget is in place.

The little house will probably evolve as a Lease To Own existing home with the little building conversion coming by fall.

Extra funds will be generated from the workshops for how to build a little house, how to convert an existing structure, homes within a home and general real estate information.

This weeks shopping includes looking for land and also the house for lease with option to purchase.

What Defines A Little House?

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Duh!  While searching for land I opened my eyes and heart and I must share I see little house possibilities everywhere!

Granted, my little storage building conversion home will be a custom fit.  There are zillions of other possibilities.  Some of those possibilities could be a solution for present homeowners to avoid foreclosure.

Evaluate the next post to see if you have a little house in hiding!