MoneyLife – Help, Hope & Insight

Good news on the employment front

It's hard to believe, but there was some good news on the jobs front in a recent MarketWatch article. A new survey shows fewer companies are planning layoffs in the months ahead. Here are the salient points:

1. Only 13% of the 245 companies surveyed said they plan to lay off more workers. That’s down from 26% in October and 23% in December.
2. 52% of the companies reported that they’ve let workers go. While that certainly sounds bad, it could also be a sign that the worst of the layoffs are behind us.
3. Analysts say companies are now looking for other ways to cut costs, such as freezing salaries and 401k contributions. So even though companies are preparing for a long recession, they want to retain the workers they’ll need as the economy improves.

How's your job search going? We'd love to hear your comments!

Foreclosure fears? Run toward creditors

If you’ve fallen a month or two behind on your mortgage payment, we encourage you to contact your lender immediately. That may be the last thing you want to do if you’re embarrassed about your situation or if you believe your lender will immediately drive you out of your home. However, foreclosure is a costly process for lenders, and they have options for dealing with your situation if you call.

These options work best when your loan is only one or two payments behind, according to the U.S. Department of Housing and Urban Development. “The farther behind you are on your payments,” HUD says, “the fewer options are available.” What if you’re behind and you don’t contact your lender? He or she will try to contact you, and you should respond. If you don’t, your lender will have to begin legal action leading to foreclosure, which will substantially raise the cost necessary to make your loan current.

If you find yourself in trouble, our advice is to run toward your creditors, not away from them. One of the most difficult problems counselors face is to try to negotiate with a creditor who’s been ignored for a long time. Don’t let that happen to you. Remember, “A prudent man sees danger and takes refuge, but the simple keep going and suffer for it” (Proverbs 22:3, NIV).

Facing foreclosure? Watch out for schemes

If you enter foreclosure, you may be contacted by a company offering to help. The Federal Trade Commission has issued a warning to consumers about these “rescue professionals,” who find people in trouble by looking through public foreclosure notices in newspapers, on the Internet, or in public files at local government offices.

Then, they send you a personalized letter offering to help. Other rescue professionals advertise on the Internet, on television, in newspapers, and on posters, fliers, and business cards. Linking up with these people can produce severe consequences for you. In one type of scheme, the rescue professional tells you he can strike a deal with your lender to save your house, but you must pay a fee first. When you pay, the individual disappears with your money.

A second type of scheme involves the professional convincing you to sign a document for a new loan, which you will use to make your existing mortgage payment. But the document you sign is not a loan application. Instead, you’re surrendering your home’s title to the professional.

Third, there are rent-to-buy schemes in which a rescue professional convinces you to give up your title as part of a program that lets you stay in your house as a renter. In one of these schemes, the individual continues raising your rent until you can no longer afford to pay and you miss several payments. Then, he evicts you and sells your house.

Fourth, there is a scheme in which a rescue professional promises to negotiate with your lender to get refinancing on your behalf—if you first pay a fee. Then, the individual keeps your money, does not contact your lender or refinance your loan, and files a bankruptcy case in your name—sometimes without your knowledge.

Facing foreclosure is hard enough without the added suffering of falling victim to some type of scheme. Remember Larry Burkett’s advice regarding unbelievable financial offers: “If it sounds too good to be true, it probably is.”