.
• Always spend right at the level of your after tax earnings. Having surplus dollars is troublesome for most because it’s difficult to know exactly what to do with them.
• Avoid having 3, 6 or even 12 months of basic living expenses tucked into a liquid account such as a money market or CD.
• Repeatedly purchase, preferably on credit, items that rapidly depreciate such as cars and consumer goods. Why pay all cash for something when you can use other people’s money (OPM)?
• Be sure to maintain at least $7-12,000 of revolving credit card debt and preferably ‘store credit cards’ and be sure not to read the monthly statements.
• In the event that revolving debt gets to be somewhat of a burden, be sure to take out a home equity line of credit (HELOC) to alleviate the monthly payments
• Look for and take advantage of ‘get rich quick’ opportunities that offer simple and easy wealth accumulation plans with little effort. Leave the hard work to all the ‘drubs’ who don’t know any better.
• Spend at least half of your allowable IRA contribution each year on Christmas and holidays (preferably on credit)
• If you have an investment or asset plan, be sure not to review it too often as this can be tedious, boring and rather dull. Once every 6-10 years should be fine
• If possible, avoid the toilsome task of creating asset accumulation strategies in favor of more dinners out with friends and fun vacations. After all, you only go around once
• Be sure to invest in insurance and protect yourself from disability, death, dismemberment, accident, ill health and be sure to insure your pets as well!
• Be sure only to buy new automobiles due their quality and reliability over used vehicles. Used vehicles can cost as much as $150/month in long term average maintenance.
• Avoid regular financial plan setting and goals progress
• If you have a home mortgage, be sure to refinance every couple of years to capitalize on low rates. Ideally you could own your house for 20 years and still have 20-25 years remaining on whatever debt is there at the time
• Avoid having financial coaches and truly objective advisors assisting you with your money plans
By following this plan, you’ll have every opportunity to engage in being the “Ultimate American Consumer” with all of the rank privilege that is conferred by that term. If, on the other hand, you want out of this, call Eric Johnson for guidance at 941.713.9307.
The first step is to stare the problem right in the face. You've got to deal honestly with the questions at hand. For instance:
· Could you afford to stay if the payment was lower?
· Are you expecting that you can catch up on arrears?
· Do have the money to move if evicted or sold as a short sale?
· What would be the effect of a deficiency judgment on your financial condition, both present and future?
Next is to determine the goals of your strategy. Where do want to be when this is over?
· Do you want to stay in the house if the payment can be made affordable?
· Do you owe much more than the house is worth and just want a way out with some damage control?
· Do you need to stay in the house for as long as possible without being able to make any mortgage payments?
Your options will be dictated by how you have addressed the above questions and defined your immediate goals. The most common options include a refinance or modification of the mortgage, a sale of the property, negotiating a deed in lieu of foreclosure or just stalling what may be an inevitable foreclosure. Most important to remember is that a foreclosure is a legal procedure. Richard Weinstein, an attorney in Jupiter, Fl specializes in foreclosure defenses and explains that, "there is much too much at stake for the average individual to try to properly address all the issues of the foreclosure process. The homeowner has rights they must demand and possibly assets they need to protect. Unrepresented borrowers very often find themselves unnecessarily homeless and still hopelessly in debt."
I couldn't agree more! I have seen too many regretful real life experiences with disastrous results that could have been averted if the homeowner in distress had gotten proper advice before it became too late. The sooner the dangers are acknowledged the more options that remain available, both practical and legal.
Some have advised that the first person to talk to is your lender. Here I disagree. Doesn't it make more sense to first speak with someone who is already prepared for your lender's response and knows what information should be shared? If you find yourself in the position that you cannot meet your mortgage obligations I encourage you to speak to a mortgage professional that is well versed in all possible remedies. Elite Lending offers free consultations for homeowner's in need. Please call 516-575-5626 for more information and visit www.EliteLending.biz.
Danny Poulos
516-575-5626
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Mar 2009
How to Be the Ultimate American Consumer
Fortunately, like lemmings to the sea, there are plenty of great examples around us in our friends and neighbors as to how to model the “Ultimate American Consumer.” In case it escapes you, here is a simple ‘How To’ guide that can serve as a great roadmap to this continued process. Enjoy!
by valeria on Tue Mar 24, 2009 2:02 pm
• Always spend right at the level of your after tax earnings. Having surplus dollars is troublesome for most because it’s difficult to know exactly what to do with them.
• Avoid having 3, 6 or even 12 months of basic living expenses tucked into a liquid account such as a money market or CD.
• Repeatedly purchase, preferably on credit, items that rapidly depreciate such as cars and consumer goods. Why pay all cash for something when you can use other people’s money (OPM)?
• Be sure to maintain at least $7-12,000 of revolving credit card debt and preferably ‘store credit cards’ and be sure not to read the monthly statements.
• In the event that revolving debt gets to be somewhat of a burden, be sure to take out a home equity line of credit (HELOC) to alleviate the monthly payments
• Look for and take advantage of ‘get rich quick’ opportunities that offer simple and easy wealth accumulation plans with little effort. Leave the hard work to all the ‘drubs’ who don’t know any better.
• Spend at least half of your allowable IRA contribution each year on Christmas and holidays (preferably on credit)
• If you have an investment or asset plan, be sure not to review it too often as this can be tedious, boring and rather dull. Once every 6-10 years should be fine
• If possible, avoid the toilsome task of creating asset accumulation strategies in favor of more dinners out with friends and fun vacations. After all, you only go around once
• Be sure to invest in insurance and protect yourself from disability, death, dismemberment, accident, ill health and be sure to insure your pets as well!
• Be sure only to buy new automobiles due their quality and reliability over used vehicles. Used vehicles can cost as much as $150/month in long term average maintenance.
• Avoid regular financial plan setting and goals progress
• If you have a home mortgage, be sure to refinance every couple of years to capitalize on low rates. Ideally you could own your house for 20 years and still have 20-25 years remaining on whatever debt is there at the time
• Avoid having financial coaches and truly objective advisors assisting you with your money plans
By following this plan, you’ll have every opportunity to engage in being the “Ultimate American Consumer” with all of the rank privilege that is conferred by that term. If, on the other hand, you want out of this, call Eric Johnson for guidance at 941.713.9307.
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"Head in the Sand" Poor Strategy When Facing Forec
In some markets more than 1 out of 10 homeowners are dealing with a pending foreclosure. The most common initial reaction is to avoid the lender and bury one's head like an ostrich hoping to avoid danger. It is impossible to hide from mortgage obligations without dire consequences but a proactive strategy can produce positive results.
by valeria on Mon Mar 30, 2009 9:19 pm
The first step is to stare the problem right in the face. You've got to deal honestly with the questions at hand. For instance:
· Could you afford to stay if the payment was lower?
· Are you expecting that you can catch up on arrears?
· Do have the money to move if evicted or sold as a short sale?
· What would be the effect of a deficiency judgment on your financial condition, both present and future?
Next is to determine the goals of your strategy. Where do want to be when this is over?
· Do you want to stay in the house if the payment can be made affordable?
· Do you owe much more than the house is worth and just want a way out with some damage control?
· Do you need to stay in the house for as long as possible without being able to make any mortgage payments?
Your options will be dictated by how you have addressed the above questions and defined your immediate goals. The most common options include a refinance or modification of the mortgage, a sale of the property, negotiating a deed in lieu of foreclosure or just stalling what may be an inevitable foreclosure. Most important to remember is that a foreclosure is a legal procedure. Richard Weinstein, an attorney in Jupiter, Fl specializes in foreclosure defenses and explains that, "there is much too much at stake for the average individual to try to properly address all the issues of the foreclosure process. The homeowner has rights they must demand and possibly assets they need to protect. Unrepresented borrowers very often find themselves unnecessarily homeless and still hopelessly in debt."
I couldn't agree more! I have seen too many regretful real life experiences with disastrous results that could have been averted if the homeowner in distress had gotten proper advice before it became too late. The sooner the dangers are acknowledged the more options that remain available, both practical and legal.
Some have advised that the first person to talk to is your lender. Here I disagree. Doesn't it make more sense to first speak with someone who is already prepared for your lender's response and knows what information should be shared? If you find yourself in the position that you cannot meet your mortgage obligations I encourage you to speak to a mortgage professional that is well versed in all possible remedies. Elite Lending offers free consultations for homeowner's in need. Please call 516-575-5626 for more information and visit www.EliteLending.biz.
Danny Poulos
516-575-5626
