Turn the Mortgage and Credit Crisis to Your Advantage

We tend to ignore the human side of the mortgage crisis. Interest rate changes will help reduce bank losses. What can it do to a person who is no longer credit worthy? The wealthy can make small talk about losses made by financial institutions. Who will shed tears for victims of foreclosures?

One thing is for sure-you cannot repair your credit rating by wallowing in pity. Do not let despair cloud your vision. You can win back your home. The stock market beckons. Never forget that even pennies can get you stock. You cannot recover from a mortgage tragedy overnight. Patience, hard work, and stock market literacy will get you there, however.

Step one is to rebuild your credit rating. Read our earlier article entitled “Lead Your Bank from Sub-Prime Greed to Meeting All Your Credit Needs”. Stock millionaires of today have recovered from financial losses greater than yours. It is in your hands to raise new incomes and to balance your monthly budgets as well.

Wait a minute though. Have we jumped the gun and assumed that you have a mortgage that you cannot honor? Perhaps pity is all that the ongoing credit mess costs you. A steady and adequate income has special benefits in today’s housing market. Foreclosures mostly result in distress sales. Real estate is not within the domain expertise of any banks. This aspect brings refinancing to mind.

You do not have to live in the sub-prime pit for ever. Negotiate a new loan that matches equated monthly installments with your earnings. Pay off the high interest stuff first. Scrounge on expenses. Show your bank a new plan. They would prefer to back you than to go through foreclosure losses. Shop around to see if you can land a better deal.