Tuesday, October 28, 2008 at 9:51 a.m.
Read more: Local, Economy, Mortgage, Subprime, Refinance, Loans, Housing, Harlingen, Cameron County, Rio Grande Valley, Texas
Foreclosure signs are beginning to litter lawns across the Rio Grande Valley
Minerva Simpson with First Advantage Mortgage told Action 4 News that most people lose their homes because they didn't do their research.
"A simple homestead exception, a disability exemption, over 65 exeption can save people a lot of money," she said.
Simpson said a homestead exception is a declaration to your local appraisal district that your home is your primary residence. That's a savings of up to 15 percent.
She added that big mortgage companies are now offering people with subprime mortgages or adjustable-rates a temporary interest rate as low as 2.5 percent or a montly payment of 34% of your monthly income.
The Consumer Counseling Credit Service in McAllen gave Action 4 News the following tips to stave off foreclosure:
Create a Personal Budget
- Write down all your monthly expenses and be sure to include rent/mortgage, groceries, utilities, credit cards, gas and eating out.
- Commit to keeping track of all your daily expenses for a month and include small purchases such as vending machine snacks.
- Make a list of three areas to spend less money and include how much you plan to save from cutting back.
- Set realistic goals and reduce your cash flow by $25, $50 or $100 a month. Once, you’ve reached this initial goal concentrate on continuing to cut your spending.
Preventing Foreclosure
- Don't ignore the problem. The further behind you become, the harder it will be to reinstate your loan and the more likely that you will lose your house.
- Contact your lender as soon as you realize that you have a problem. Lenders do not want your house. They have options to help borrowers through difficult financial times.
- Open and respond to all mail from your lender. The first notices you receive will offer good information about foreclosure prevention options that can help you weather financial problems. Later mail may include important notice of pending legal action. Your failure to open the mail will not be an excuse in foreclosure court.
- Contact a HUD-approved housing counselor. Housing counselors can help you understand the law and your options, organize your finances and represent you in negotiations with your lender if you need this assistance.
Get a free copy of your Credit Report
The Fair Credit Reporting Act (FCRA) requires each of the nationwide consumer reporting companies — Equifax, Experian, and TransUnion — to provide you with a free copy of your credit report, at your request, once every 12 months.
You can receive a free copy of your credit report at www.annualcreditreport.com or by phone or via mail.
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
877-322-8228
A credit report includes information on where you live, how you pay your bills, and whether you've been sued, arrested, or filed for bankruptcy.
Nationwide consumer reporting companies sell the information in your report to creditors, insurers, employers, and other businesses that use it to evaluate your applications for credit, insurance, employment, or renting a home.
Click here to track forceclosures in your neighborhood.
