Cape Coral Florida's Real Estate Guide

If you can say that you aren't in trouble with your mortgage, then consider yourself one of the lucky ones. Making responsible choices has paid off and so far you haven't had to face the threat of foreclosure on your home. Unfortunately, in today's economy, it is tough to be sure that it will remain that way. Unemployment rates are through the roof and unexpected events such as serious illness are enough to take down even the most consciencious homeowners. Here are some things you can do to recession-proof yourself and make sure that your home doesn't become a foreclosure statistic.

Most importantly, you must save, save, SAVE! Make sure that you have a minimum of three months worth of mortgage payments saved in case of emergency. To get there, make a household budget and stick to it. Chances are that if you sat down and reviewed your current spending habits you will see ways you can cut back. Here are a few ideas that can help you build up your financial safety net:

• Cut out the coffee (not completely, of course)-Are you addicted to stopping at Starbucks? Gotta have your Dunkin Donuts? Coffee at places like these can be $2-4 per cup. Break out your coffee maker and brew your own to save some cash.
• Bag your own lunch-Going out to lunch is great but it takes its toll on your pocketbook and waistline. Spare both and bring your lunch from home. You'll end up with extra money and extra room in your jeans!
• Make it a movie night-Do you love the nightlife? Drinks out these days go for up to $10 a piece. Save your cash and spend the night in with a good movie and a bottle of wine. Your wallet will be glad you did!

Keep yourself honest in your efforts by writing down your purchases each day. Review them objectively at the end of the day and if you stumble, make it a point to do better the next day. By keeping your eyes on the prize and building your financial security, you can ensure your future no matter what the economy throws your way.

President Obama has a plan to help 7-9 million families to refinance or restructure their loans called the Homeowner Stability Initiative. President Obama wants to make a point that this plan is to help responsible families, not those who have made poor judgements and investments. This plan is not for investors; it is only for those who live in their homes and are worried about keeping their home.

Even if you are not behind on your mortgage yet, help is available to you through this plan. If you have been affected by declining home values to where your house is now worth less than the remainder owed on your mortgage, refinancing is now available. Its aim is to restore the balance between the homes value and the amount owed on the mortgage so that keeping your home is affordable to you.

If you are behind on your mortgage due to circumstances like job loss, illness in your family, or a dramatic increase in your payments due to rising interest rates, there is now a $75 billion dollar plan in place to make reduce your mortgage payments to 31% of your annual income. The lenders will need to restructure loans for these homeowners and it will be up to them to decide who will receive aid. Why? It is not in the lender's best interests to restructure a loan for someone who will likely default in the future. They will need to determine whether this is a person who simply bought more house than they could afford or someone who made responsible decisions but has been suffering financially nonetheless. It may end up that it is in the lender's best interest to foreclose on the home while the home's value is higher and that is what will end up happening under those circumstances.

Homeowners are expected to feel relief from this plan almost immediately after it goes into full effect on March 4th. If you are having trouble paying your mortgage, contact your lender now and see what can be done to help you save your credit and your home.

preparing to buy a house or cleaning up your credit after a foreclosure, you should check your credit report today. Why? There may be inaccuracies on your credit report that are lowering your credit score unnecessarily. By simply reviewing your credit report and disputing any inaccuracies with the credit reporting agencies, you can raise your FICO score and increase your chances of obtaining credit without spending any money to do so.

Every person is entitled to a free copy of their credit report from each of the nationwide credit reporting agencies, Equifax, Experian, and TransUnion, each year. To get your free credit reports, visit annualcreditreport.com or call 1-877-322-8228. Review these reports and identify any inaccuracies. Then follow the steps below to dispute these inaccuracies with the credit reporting agency.

The following has been excerpted from the Federal Trade Commission website. View this article, Credit Repair: How To Help Yourself, in its entirety by clicking here.

Step 1: Tell the consumer reporting company, in writing, what information you think is inaccurate. Include copies (NOT originals) of any documents that support your position. In addition to providing your complete name and address, your letter should identify each item in your report you dispute; state the facts and the reasons you dispute the information, and ask that it be removed or corrected. You may want to enclose a copy of your report, and circle the items in question. Send your letter by certified mail, "return receipt requested," so you can document that the consumer reporting company received it. Keep copies of your dispute letter and enclosures.

Your letter may look something like the one below.

Consumer reporting companies must investigate the items you question within 30 days - unless they consider your dispute frivolous. They also must forward all the relevant data you provide about the inaccuracy to the organization that provided the information. After the information provider receives notice of a dispute from the consumer reporting company, it is required to investigate, review the relevant information, and report the results back to the consumer reporting company. If this investigation reveals that the disputed information is inaccurate, the information provider has to notify the nationwide consumer reporting companies so they can correct it in your file.

When the investigation is complete, the consumer reporting company must give you the results in writing, too, and a free copy of your report if the dispute results in a change. If an item is changed or deleted, the consumer reporting company is not permitted to put the disputed information back in your file unless the information provider verifies that it is accurate and complete. The consumer reporting company also must send you written notice that includes the name, address, and phone number of the information provider. If you ask, the consumer reporting company must send notices of any correction to anyone who received your report in the past six months. You also can ask that a corrected copy of your report be sent to anyone who received a copy during the past two years for employment purposes.

If an investigation doesn't resolve your dispute with the consumer reporting company, you can ask that a statement of the dispute be included in your file and in future reports. You also can ask the consumer reporting company to provide your statement to anyone who received a copy of your report in the recent past. You can expect to pay for this service.

Step 2: Tell the creditor or other information provider, in writing, that you dispute an item. Be sure to include copies (NOT originals) of documents that support your position. Many providers specify an address for disputes. If the provider reports the item to a consumer reporting company, it must include a notice of your dispute. And if you are correct - that is, if the information is found to be inaccurate - the information provider may not report it again.

Mortgage rates have been falling recently. If you, like many homeowners today, are wondering how you can take advantage of these new, low rates pay close attention. Consider refinancing your home to get a lower mortgage rate on your Cape Coral home. Refinancing is like buying your home all over again so many of the requirements you needed to meet in order to purchase your home will need to be met in order to refinance.

First of all, you will need credit. A score of 760 or higher will ensure that you get the best mortgage rate available. You will also need proof of income. If you have become unemployed recently, you will need to establish new employment in order to refinance. Lastly, you will need collateral in the form of equity in your home. If you can meet all of these requirements, then you should take the next step and talk to your mortgage lender about refinancing your home. It could mean a huge savings for you and make your home that much affordable to you.

Congressional democrats are mad and they are letting the U.S. Treasury know it. The $700 billion dollars granted to Congress in an effort to stem a full-fledged economic meltdown has been used in appropriately, claim some members of Congress. They feel money was freely given to banks and other large financial institutions with no substantial aid given to struggling homeowners. House democrats are demanding that the Treasury commit to the rollout of a massive loan modification plan if they want to have access to any more of the bailout money.

With $350 billion dollars hanging in the balance, the Treasury has taken action and begun to work on a loan modification plan. Some democrats want to make the Treasury implement the loan modification plan proposed by FDIC Chairwoman Shelia Bair. Her proposal is to systematically reduce mortgage payments and soften loan terms for homeowners struggling to keep up with their mortgage payments. Those who oppose this plan say this would cost billions and may not really help reduce foreclosure rates. It is a fact that over half of homeowners that receive modifications to their home loans default on the modified mortgage within six months. Plan supporters feel that by not just lowering interest rates, but actually reducing the balance of the loan, a more successful modification can be made that will have lasting results. That, and the fact that a federal guarantee is built into the plan to protect lenders in the event that homeowners redefault on their mortgages, helps to make this plan more attractive to all parties involved.

It is hard to say whether loan modification would be the best way to solve the housing crisis, especially without it ever being done on a large scale as proposed by Congress. What is true, however, is that any help is welcomed by the homeowners who are hurting and it could be one of many tactics used to help stimulate the housing market and the economy overall.