Divorce Money Matters

Here is a good synopsis of the new Credit Rules that went into effect this week from the Federal Reserve.  http://tinyurl.com/new-credit-card-rules.  I have been blogging about the need for these reforms for some time now.  They are a step in the right direction, though the credit card companies were given a long head start to give many folks the shaft before the changes came.

Pay particular attention to the example given in the "How Long Will it Take to Pay off Your Balance" section.  Minimum payments will keep you indebted to the credit card companies for much of your life. 

Best bet, use your credit cards wisely… only for emergencies or if you know you can pay off the balance every month.  That way you can avoid the credit card crunch and pay yourself.  Just imagine what those minimum payments could be worth to you in retirement if you were able to invest that money for your future rather then having to pay it towards debt! 

I wrote this email today to a reporter at the NY Times regarding his story that came out today and my experiences with my clients in regards to the govt. assistance programs mentioned in it.  http://www.nytimes.com/2010/02/15/business/15housing.html?th&emc=th  My email to him below.

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Mr. Streitfeld,

I am writing regarding your article today, U.S. Housing Aid Winds Down, and Cities Worry.  I saw that you made reference to the home owner assistance programs through the government.  I wanted to share with you my experience in dealing with these agencies and lenders.

I am a CDFA (Certified Divorce Financial Analyst) and I have been trying to help several clients navigate the murky waters of divorce in a down real estate market.  

When the government announced the home owner assistance programs I was very excited to be able to offer a ray of hope for those buried under the debt of fallen housing values.  What I have found instead is a front and a farce with these programs.

Because the lenders can choose whether or not to participate these measures have no teeth.  I have yet to find one lender who is willing to participate and in my conversations with other professionals that deal with the same matters we are all finding the same thing - little to no participation from the lenders or servicers of the loans.

In essence, it appears that the homeowners have been offered hope, but really there is nothing behind the curtain when it is pulled back. The HUD counselors have no authority to make anything happen either.

I have called my Senators offices, Johnny Isakson and Saxby Chambliss (Ga.) and emailed the White House several times about this to no avail.  Not one of them has returned my phone calls or emails.

No one in the media is talking about this as I don’t believe many are aware.  I am trying to get the conversation going because I truly believe that the institutions that were bailed out when they needed help are now stalling in the hopes that the programs will simply run out of time before anyone realizes what is going on.

Please do a follow-up story on this as families are losing their homes while the stalling game is played.

Thank you for your time and attention.

Lisa C. Decker, CDFA
www.DivorceMoneyMatters.com

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I would love to hear your experiences with any of the government sponsored home owner assistance programs - HAMP,  HARP, H4H and their newest HAFA.  Please leave some comments below.  And be sure to contact your Congressmen, Senators and the White House to keep the pressure on to help the taxpayers who bailed out the big banks when they needed it!

From the Center for media and Democracy weekly ezine 9-23-09

Banks to Bailout Government?
Source: New York Times, September 21, 2009

Steve Labaton of the New York Times reported that senior regulators at the Federal Deposit Insurance Corporation (FDIC) are seriously considering a plan to have the nation’s "healthy banks" loan money to the government to replenish the FDIC insurance fund that protects bank depositors. The fund, which has been tapped to protect deposits in close to 100 failed banks, is rapidly running out of money. Generally federal agencies are wary of using funding mechanisms that might give the appearance that they have been "captured" by the very institutions they are charged with regulating. But apparently FDIC chair Sheila Bair would rather pursue this cockeyed strategy than ask sparring partner — Treasury Secretary Timothy Geithner — for a government check. Not surprisingly, banks welcomed this development with open arms. The Independent Community Bankers of America’s Karen Thomas claimed, "Borrowing from healthy banks instead of the Treasury has the advantage of keeping this in the family. It is much better for perceptions than having the fund borrow from someone else." If the banksters really think we are all one great big family, perhaps they’ll start giving consumers a break on 27% credit card interest rates.

Is this a set up or just a bad movie?  What will they conjure up next!  ~Lisa