Yesterday I mentioned, "I just know don't what to say anymore." What I meant about that is, so many rules are changing in the financial game it's hard to keep up with the changes and give helpful solutions.
I still think the wise old solutions we provide here are still the best and we will tweak them as need be to help in this current economic turmoil.
My frustration lies in the fact that even normal financial assistance is hard to come by. People need help and they need it now.
I have been receiving tons of questions regarding bankruptcy and mortgage loan modifications. I always suggest bankruptcy as a last resort and that consumer credit counseling from NFCC.org should come first. I do feel in a lot of cases simple loan modifications may do the trick for a lot of people. By dropping their mortgage payment (I have seen people who have had their mortgage payments drop in half) it may enable them to catch up not only on their mortgage payments, but their credit card payments as well.
Most of these consumers who ask me these questions are responsible people and are just having a rough patch right now. I have always been an advocate for doing what you have to do make your payments, but these are people who had put a nice comfortable 20 percent down on their homes. Had plenty of reserves in savings and little debt. But now a chain of events has begun to lead them to ruin.
Lois and Clark are one couple who we have talked in the past and things are just not improving for them. They knew trouble was coming 6 months ago and they were going to start falling behind. They were proactive and began calling their banks to try and get help, but were denied because they weren't behind.
So sure enough they started falling behind on their payments and banks raised their interest rates making things worse. Now 6 month later after their once 700 range credit scores have fallen, the banks are offering some help. They could have avoided all this months ago. At least they could have let them miss a payment to give them a break. Now their credit is shot and they have fallen so far behind that what the banks are offering them has come too little, too late. Lois and Clark may be facing bankruptcy.
Another couple had called their mortgage company for a loan modification or actually I should say attempted to talk to someone about a loan modification. After being disconnected, transferred, and put on hold for hours they finally were able to get to who they needed to talk to. Hours? Are you kidding me? The numbers they called were the ones the mortgage company posted on their Website for clients to call for help. Except all those numbers were no good. Only after playing musical calls were they able to get somewhere.
Do the banks think this is a joke? A game? It's time to start helping the same people who gave you the money to save your behinds. The TARP money was almost just handed to you. Did you have to wait on the phone for hours, get passed from one phone operator to another, or given incorrect information? Get your organizations organized and get these folks the help and quality customer service you so often say you you provide. Lets get this show on the road and get this economy turned around. Now!
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