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.
_______________________________________________________________________
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
________________________________________________________________________
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!
NFCC CREATES CONSUMER FINANCIAL STRESS TEST
National Financial Literacy Survey Serves as Benchmark for Financial Stability
This is reprinted from the National Foundation for Credit Counseling website.
Take the test and see how you rank.
To help consumers measure their own financial stability, the National Foundation for Credit Counseling (NFCC) created the following Consumer Financial Stress Test based on the findings of the NFCC’s 2009 Consumer Financial Literacy Survey.
See how your finances measure up relative to the rest of Americans.
Q: On a scale of A to F, what grade would you give yourself in terms of your knowledge about personal finance?
Results: It appears that many of us would not be moving to the front of the class, as 41 percent of U.S. adults, or more than 92 million people, gave themselves a grade of C, D or F on their knowledge of personal finance.
Q: Which best describes how you manage your money?
Results: Less than half, 42 percent, keep close track of their spending, with 7 percent, or nearly 16 million, admitting they don’t know how much they spend on food, housing, and entertainment, and do not monitor their overall spending.
Q: What best describes your financial situation?
Results: 26 percent, or more than 58 million adults, admit to not paying all of their bills on time, with 13 million admitting to having debts in collection, or are seriously considering filing for bankruptcy, or have done so in the last three years.
Q: In which ways did the terms of your mortgage turn out to be different than what you initially expected?
Results: 42 percent, or more than 94 million people currently have a mortgage. Of those, 28 percent say that the terms of their mortgage somehow turned out to be different, including either the payment amount or terms of the loan, the interest rate or its duration, or they had no knowledge of the required Private Mortgage Insurance.
Q: What percentage of your household income do you save toward retirement?
Results: More than 74 million people do not put any part of their annual household income toward retirement. This number is up from 28 percent in 2008 to 33 percent in 2009.
Q: Compared to one year ago, how has the current economic climate affected your spending, and if you are spending less now, if your financial situation were to improve, would you be likely to spend more?
Results: Although 57 percent of adults report spending less than they were a year ago, 45 percent of those now spending less admit that if their financial situation were to improve, they would resume their previous spending habits.
Q: Have you ordered a copy of your credit report, and do you know your credit score?
Results: In spite of it being free, nearly two-thirds, or 144 million people, have not ordered a copy of their credit report in the past year. Additionally, more than one-third admit that the do not know their credit score.
"Would your finances be viewed as solvent, or would you be told to raise more capital?" asks
The 2009 Financial Literacy survey was conducted by telephone within the
If you need help raising your grade on the Consumer Financial Stress Test, reach out to an NFCC Member Agency. To reach the agency closest to you, dial
The National Foundation for Credit Counseling (NFCC), founded in 1951, is the nation’s largest and longest serving national nonprofit credit counseling organization. The NFCC’s mission is to promote the national agenda for financially responsible behavior and build capacity for its members to deliver the highest quality financial education and counseling services. NFCC Members annually help more than three million consumers through close to 850 community-based offices nationwide. For free and affordable confidential advice through a reputable NFCC Member, call
I am very excited about the addition of video to my repetoire of ways to reach out and connect with others.
Recently I was interviewed by Bruce Towers of Freedom Builders about my divorce practice and how I help my clients. If you want to know more about different divorce options, more peaceful ways of divorcing, what you need to know about divvying up assets and debts, then check this out. I hope you find this information interesting and helpful!
http://tinyurl.com/Lisa-C-Decker-CDFA
I welcome your comments.
~ Lisa ~
Many thanks to William Mikula, a/k/a Dr. Credit, for the guest blog post today. Credit money matters in Divorce….http://thecreditline.blogspot.com/
He writes a great blog with a lot of helpful information on credit matters. I hope you’ll check it out!
Attention – Those considering or in the process of Divorce
Are You confused and overwhelmed in your
divorce and don’t know where to begin?
Am I really getting my fair share?
Will I be able to afford to stay in the house?
What am I entitled to in retirement?
What steps can I take now to avoid being saddled with my e
How can I protect the payments I am entitled to if something should happen to my e
If you answered yes to any or all of these questions then you don’t want to miss this teleclass:
Divorce Dollars and $ense
Wednesday,
We are offering this free teleclass so that you can be educated and armed with useful tips, tactics and tools to help you manage and survive your divorce!
During this call we’ll be discussing:
· What you MUST know about how to get your best settlement.
· What kind of divorce options are available and who should be on your divorce team.
· How a financial advisor can make a HUGE difference in your settlement - now and in the future.
· What you MUST know about credit issues and bankruptcy to avoid getting burned.
· Understanding spousal and child support issues.
· Ways to protect your income stream or settlement agreements.
· What you NEED to know about divvying up the marital pot.
· What you MUST know about retirement - special issues around pensions, IRA’s, 401K’s and Social Security.
· Why all assets are NOT created equal and how to get YOUR fair share.
· And much, much, more….
I hope you’ll join us on this FREE call to learn more about how you can take control of your financial destiny and make your dollars go further with:
Divorce Dollars and $ense
Sign Up here - Divorce Dollars and $ense
Here’s a great article with information on bankruptcy and it’s effects on divorce. For more information on bankruptcy and divorce issues, don’t miss my next teleseminar this month, “Bankruptcy Basics and How to Avoid Being Burned in Divorce" with Christine Stadler, divorce and bankruptcy attorney. February 25, 2009 7:00 pm. Details for sign-up to be posted soon.
Bankruptcy During Divorce (posted at Lawyers.com)
by Sherrie Bennett
If you think you’re headed for divorce and have a lot of debt between the two of you, it might make sense to file for bankruptcy before starting a legal divorce proceeding. Filing bankruptcy first can simplify the divorce by clearing out some of your debt. This can make it easier to negotiate how the remaining debts should be divided, and protect you from your soon-to-be-ex’s bankruptcy filing down the road. Also, you and your spouse might want to consider filing a joint bankruptcy before the divorce. Not only will this make the final division of any remaining debts even easier, but filing a joint bankruptcy is cheaper than filing two separate ones. In either event, bankruptcies and divorces have serious impacts on each other, especially with respect to your property and personal finances.
Effect of Bankruptcy on Divorce
When one or both spouses file bankruptcy, all the community property, that is, property that was bought or acquired during the course of the marriage, becomes a part of the bankruptcy estate and is available to pay debts. The bankruptcy estate is simply all of your property that you own at the time the bankruptcy is filed.
When you or your spouse file a bankruptcy, an automatic stay immediately prevents creditors from collecting on most debts. But the automatic stay doesn’t prevent you from asking a divorce court to order your spouse to pay child support or alimony. Once a bankruptcy court decides property is "exempt," that is, it is not part of the bankruptcy estate and so it is not available to be sold to pay debts, a divorce court can then divide that property. Property exemptions are defined not only by federal law (the "Bankruptcy Code"), but also by the laws of the state in which the bankruptcy is filed.
Some examples of federal exemptions include:
* A specified dollar amount for real property that is for his or her residence, and
* A specified dollar amount for one motor vehicle, such as your primary car.
Property Settlements and Bankruptcy
Negotiating a property settlement in the midst of bankruptcy is complicated. Debts related to a property settlement are presumed to be "nondischargeable" in bankruptcy, meaning that the person who files bankruptcy can’t have those debts wiped out and must still be responsible for them.
But the bankruptcy court will wipe out those debts if the person filing for bankruptcy can show:
* That he or she can’t pay the debt and still take care of him or herself and any dependents, or
* That wiping out the debt would result in a benefit to the person filing the bankruptcy that outweighs any harm done to his or her former spouse or child by nonpayment.
So if you think your spouse is contemplating bankruptcy after your divorce is final, you’ll want to word your property settlement in such a way that your soon-to-be-ex’s obligation looks and acts as much as possible like a support obligation instead of a property settlement. That is so simply because support obligations are more difficult to have discharged.
How do bankruptcy courts decide what’s support and what’s property settlement? It varies greatly by state, but courts have based their decisions on such questions as:
* Does the obligation terminate or reduce with the occurrence of certain events, like remarriage or a child turning 18?
* Is the obligation in installments or a lump sum?
* Are there minor children? * What is the relative health and education of the parties?
* Was there a need for support at the time of the divorce?
If your bankruptcy hasn’t been filed yet, these distinctions and problems probably won’t effect you. For many bankruptcies filed on or after October 17, 2005, any obligation between former spouses can’t be dischargedin bankruptcy. So, a spouse with an alimony and/or child support obligation can’t have that obligation discharged in bankruptcy if the bankruptcy petition was filed on or after October 17, 2005.
Property Liens
One way to protect yourself in a divorce negotiation if you think your spouse may be contemplating bankruptcy in the future is to take a security lien as a backup to debts your spouse is to pay you after the divorce. The lien should be on property your spouse is to be awarded in the divorce, preferably property that means a lot to your spouse. That way, if your spouse later asks the bankruptcy court to discharge the debt he or she is supposed to pay, you can seize the property to pay the debt.
Indemnity Clauses
Another precaution in the face of a soon-to-be-ex-spouse talking about bankruptcy is to have a "hold harmless" or "indemnity" clause written into the divorce decree, requiring your spouse to pay certain debts or repay you if a creditor makes you pay the debt. If your ex-spouse later files bankruptcy, you can go to bankruptcy court and ask the judge to enforce the indemnity agreement. While an indemnity agreement won’t guarantee you’ll get paid, it’s one more factor for the bankruptcy judge to consider.
As you can see, the issues of going through divorce and bankruptcy at the same time are confusing at best, and highly damaging at worst. If you find yourself in this position, it makes sense to find a bankruptcy lawyer who can help you with all the issues.
Are you having difficulty making your mortgage payment on time?
Have your mortgage payments increased due to an interest rate adjustment?
Do you think you were a victim of a predatory loan?
Have you made a late mortgage payment within the past six months?
If your answer is "yes" to any of these questions then HomeFree-USA can help you to identify financial options, lender services and solutions for you.
For help now, take one of the following actions.
Take action now! Don’t delay. There is help for you.
Would you like to learn some simple techniques that could put thousands of dollars in your pocket over your lifetime?
· Are credit worries keeping you awake at night?
· Would you like to improve your credit rating, but don’t know how?
· Do you believe you are powerless to keep more money in your pocket when it comes to your mortgage, credit cards, and insurance?
If you answered yes to any or all of these questions then you don’t want to miss this FREE teleconference:
CREDIT 911!
Wednesday, January 28th, 2009
7:00pm EST (
Go to my events page - Credit 911! to sign up now
Kelly Lise Murray, a Harvard-trained lawyer and Nashville real estate agent has some interesting ideas and insight when it comes to divorce and the family home. We spoke recently and look forward to do some complimentary work to help clients, and their attorneys, understand all why the family home can continue to be a money pit even after the divorce is over. Another reason to make sure you understand all the issues regarding the financial aspects of your divorce!
Keeping the house makes for a messy divorce
That bit of advice goes against the almost universal desire to hang on to the family home, especially by the spouse who ends up with custody of the children.
People tend to underestimate the true cost of homeownership, drastically overstating the remaining spouse’s ability to afford the place, Murray says.
Even in a friendly divorce, certain key expenses are overlooked. Lawn care, homeowners association fees, even the basic costs of maintenance are among the costs that are rarely considered, either by the courts or the splitting spouses.
And then there’s the even bigger issue of hidden debt. Ideally, there will have been no secrets between the husband and wife. But money is a major cause of divorce, and in many cases, one spouse has no clue that the other has run up big bills that have become undisclosed liens against the property.
"I see it a lot," says Murray, whose goal is to reform divorce law as it pertains to real estate, one state at a time. "It’s frequent. And what you don’t know during your divorce can hurt you long after the marriage is over."
Fortunately, a major real estate mistake is preventable — but only during your divorce, not afterward. So Murray recommends doing due diligence and gathering information from more financial and real estate experts early in the divorce process. That way, you can make a more informed decision about whether you really want to keep the place or not.
In most divorces, the spouses determine what the house is worth, and the one who gives up the place is usually given a credit of some sort for his or her half of the equity the couple have in the place. Typically, the parties split the equity based on an appraisal. So if an appraiser says the house is worth, say, $300,000 and they owe $200,000, the "out spouse" gives up his or her claim to a $50,000 equity stake for, perhaps, $50,000 in stocks and bonds.
But along with that appraisal, Murray says, the "house spouse" should obtain an independent, third-party inspection of the property to determine whether there are any latent defects that could change its value.
"You wouldn’t buy a house without an inspection, so why would you accept one in a divorce without an inspection?" Murray asks. "What if something’s wrong or about to go wrong? You can use the inspector’s report as a punch list and either use the marital assets to make the necessary repairs or reduce the value of the property accordingly."
Make sure to ask your inspector to estimate the remaining life of the property’s major appliances and systems. If something is on its last legs, you’ll want to know in advance so you can adjust for that as well. And while you’re at it, order a termite inspection — the damage those little bugs cause is often significant.
The real estate divorce specialist, whose self-published book "Divorce This House: When Keeping Your House Equals Losing Your Divorce" will be out this month, wants spouses to have two title searches, one as soon as possible after the divorce process begins and the other shortly before the divorce is finalized.
The first will uncover any unknown liens, encumbrances or clouds on the title that may have been placed by one spouse without the other’s knowledge. The second will uncover anything placed on the title during the proceedings, such as a lien filed by the out spouse’s attorney to cover his fees.
The more people follow these guidelines, divorce realty specialist Murray believes, the more likely they will end up selling the home and moving on. Disposing of the house during the divorce is far less risky than afterward, she says, and helps protect each spouse from the other’s financial problems.
"It’s the only way to be truly divorced," she says. "Your spouse’s post-divorce debts become your debts if his name is still on the title. If the creditor files a lien, you will be unable to sell or refinance until the debt is paid."
Don’t be fooled, either, into thinking that signing a quitclaim deed will get you out of harm’s way. A quitclaim will get your spouse off the title but not off the mortgage.
To truly divorce your house, Murray says there are only two ways to go: Sell the place or refinance it. "Financial exposure is extinguished when the house is sold or individually refinanced pursuant to divorce," she says. "Otherwise, either spouse or both remain legally and financially at risk, often for years after they split."
All of these issues and others are preventable during the divorce, but they’re not easily fixed afterward.
Distributed by United Feature Syndicate Inc.
