• - Financial hardship – Serious financial circumstances leave you unable to afford your mortgage.
• - Monthly income shortfall –You cannot afford or soon will not be able to afford your mortgage.
• - Insolvency – You do not have the liquid assets that would allow you to pay down your mortgage.

Many people mistakenly believe that once they’ve missed a house payment or two, that their home is bound to be foreclosed upon.

Here are just a few ways homeowners can stop home foreclosures on Long Island properties:

2.  Extra time to make up missed payments:  Some lenders will extend a grace period before taking legal action against you, so it’s a good idea to at least ask for this option.

3.  Loan Modification – Reduced rate:  Lenders are more willing than ever  to consider loan modifications that reduce your interest rate (or convert an adjustable rate into a fixed rate.)

4.  Loan Modification – Extended Amortization Period:  Another option is to ask to extend the life of your loan, often from a 30-year loan to a 40-year loan.

Facing foreclosure can be a terrifyingly confusing time. You are filled with doubts, not the least of which is where you and your family will live, and how you can possibly make it after the process is complete. This is a normal reaction, but not a particularly helpful one. If you are facing foreclosure, the most important thing to do is to step back, take a deep breath, and not panic. Even after the foreclosure process starts you still have multiple options open to you- you can probably still save your house. This, however, will be impossible if you do not know exactly where you stand and what courses of action are still open to you. Making a poor decision based on fear or ignorance can be fatal to your cause, so here are a few basic things to remember if you are in this unfortunate (but not intractable) situation.

The most important thing that you can due to improve your chances is to know exactly what your options are, and what the laws in your state regarding foreclosure allow. There cannot be enough emphasis placed on the importance of hiring an attorney with foreclosure experience in your area to both educate you, as well as advocate for you. Since the laws regarding foreclosure differ from state to state (you have different options in Suffolk County Long Island than you do in Broward County in Florida) it is imperative that your counsel is local. Once you speak with your foreclosure lawyer you will have a real, accurate picture of your situation and hopefully some much needed peace of mind.

Another way to improve your situation is to under no circumstances stop making mortgage payments. You are being foreclosed on because you are behind on your payments and the bank has felt the need to take extraordinary action. It is not the end of the process. Chances are that if you keep yourself in a position to have negotiating power with your creditor, the overall outcome of the process will be much more palatable.

You should also never fail to communicate with your creditor. Unless they are a loan shark, they will not yell at you or threaten you unduly. One of the biggest mistakes that people make is to avoid communication to avoid further pain, or to avoid making the situation worse. The quickest way to deteriorate your standing in the foreclosure process is to try to disappear.

Almost equally important as hiring a qualified foreclosure attorney is to not lose hope. There is almost always another option or opportunity to mitigate your losses and begin improving your life. It is also important to remember that the bank does not want your house- they want to recoup the money that they lent to you. Having to deal with taking your house is something that they will take pains to avoid- it makes the process of recovering the money they are owed much more complicated and uncomfortable. Keeping this fact in mind will help you retain hope and continue to look for solutions.

The foreclosure process can be fraught with peril if you approach it the wrong way. Not only is it scary and confounding, but there are also unscrupulous people and scam artists that will try to take advantage of your uncertainty. If, however, you retain competent and knowledgeable counsel, understand your options, and keep your chin up, you can still help yourself attain a positive outcome.

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Some fears regarding the general welfare of the economy and consumer confidence were somewhat eased by the relatively high shopper turnout on Black Friday. Crowds were so large at a Long Island Wal-Mart that an employee was trampled to death when the thousands of shoppers thronged outside broke the doors and rushed in. While shoppers did not spend as much as they have in past years, retailers were reportedly pleased with what was a solid shopping day, and relieved that the gloomiest forecasts did not come to pass. Strong consumer spending, on the surface, bodes well for the economy as a whole. One question that ought to be asked, however, is what impact this allocation of scarce funds toward holiday shopping will have in the following months.

The preceding months have brought us story after story of middle class Americans struggling to remain economically viable and avoid financial ruin. Money is scarce for families all around the nation and the percentage of households struggling just to make ends meet has skyrocketed. The recent decrease in both gasoline and home heating oil prices has created a very positive economic boost for many. Money that even a month ago had to go straight in to commuters’ gas tanks can now go into cash registers around the country. However, the rapid fluctuations in the price of crude oil that have occurred recently must, if we are to be responsible members of this economic community, give rise to doubts that the price relief will last. If crude oil were again to rise past the $150 dollar mark, the retail spending increase would instantly be null.

Even with gas prices at a level that is more comfortable for consumers, families are still making sacrifices. A recent news story described the efforts of some parent’s groups to petition toymakers to cut back on advertising, as many parents cannot afford to keep up with their children’s demands. The parent’s group’s complaints to the toymakers stem from the self described inability of parents to sacrifice their children’s holiday wishes. One parent even went so far as to say that she would commit crimes to give her child a toy that he wanted. With so many parents unwilling or unable to cut back on spending for their children, money must be reallocated within the family budget. Money set aside for mortgage payments will likely find its way into toy store coffers this month, and the result will likely be a spike in home foreclosures in January and February.

The economic stimulus of the Holiday season will, at least in the short term, give a much-needed boost to the economy at large. Retailers will hopefully be able to earn enough to get them through the winter without too many store closures. Where the funds that make this possible come from, however, could make for an even more challenging economic climate in the coming months. Concerns about the source of newfound spending money are valid, and should not be ignored. If these assumptions about where the stampeding Wal-Mart crowd got its money pan out, Nassau County foreclosure attorneys are going to have a busy winter.

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With the holiday season nearly behind us, the news concerning retail sales- considered a health indicator of the economy- is grim. In fact, it could actually be stated that retail sales were predictably stale. Americans have financially battened down the hatches. First, there were the outrageous gas prices that hit hard. We learned quickly to restrict our energy consumption as a result. Gas prices are now exceptionally low, and we are retaining that frugal and conservative state of mind. Grocery prices went up, so we learned how to make food go further. There are plenty more examples demonstrating the ways Americans have changed their views on money. In fact, the most significant adjustment we have made is that we have begun selling ourselves- literally.

With the holiday season nearly behind us, the news concerning retail sales- considered a health indicator of the economy- is grim. In fact, it could actually be stated that retail sales were predictably stale. Americans have financially battened down the hatches. First, there were the outrageous gas prices that hit hard. We learned quickly to restrict our energy consumption as a result. Gas prices are now exceptionally low, and we are retaining that frugal and conservative state of mind. Grocery prices went up, so we learned how to make food go further. There are plenty more examples demonstrating the ways Americans have changed their views on money. In fact, the most significant adjustment we have made is that we have begun selling ourselves- literally.

This trend of selling is blazing a widespread path across the country. Online auction sales are up by record numbers as people race to raise needed cash. Postings for items for sale on sites such as Craigslist have exploded, and even items in states of disrepair are being bought and sold every day. Sites that list items for free have experienced growth in listings and new members that was entirely unplanned for. Companies are selling stock. Luxury items such as paintings and gold are suddenly not as luxurious to Americans as the cash value of those items. Women have flocked to Las Vegas for employment in brothels. Participants in lab or medical experiments are on the rise, as are donors of eggs, plasma, blood, and sperm. Already busy families are starting businesses or finding other means of procuring additional income streams. A story even surfaced recently of an elderly woman selling vegetables from her indoor gardens as a means of preventing foreclosure on a Nassau County home. In summary, we are selling our possessions, our bodies, and our time.

Selling on this level is fairly new for Americans. Categorically, we all possess copious amounts of unneeded, unused, and unnecessary belongings. So why not liquidate them? Those items you’ve had in storage but not touched in years? Sell them. That little-used extra car, boat, or other recreational vehicle? Sell it. An attic or basement full of yard sale worthy items? Liquidate them. It might be difficult at first, but ridding yourself of things that you don’t need or use can be exhilarating. Furthermore, you may be helping someone immensely by offering them your used item at a lesser price than one would have to pay for it new. These lessons are hard ones to learn because we are accustomed to living such decadent lives. However, there is a feeling of empowerment that develops when one conserves, reduces, recycles, reuses, and refuses things that one simply does not need. Being self-sufficient is something to be proud of.

So why not make selling a part of your New Year’s resolution? All those items you have cluttering your house, your garages, barns, and closets, may just bring peace of mind in the form of a cash infusion. To supplement this, you will most likely find that getting organized and cleaning things up will help you to concentrate on what is really important- the health of you and your family. This means your emotional, physical, and your financial health.

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Every January, as we begin a new year, we also begin a new period of change. Many of us firmly set New Year’s resolutions for things like weight loss, smoking cessation, and perhaps to eat a more healthy diet. Sometimes we stick to these resolutions, and sometimes we don’t. In the coming year, however, we have unprecedented challenges ahead of us that will require dedication and a desire for genuine change on the part of everyday working Americans. So while it is important to resolve to better your physical and emotional health, it will also be vital to better your financial health. This is especially crucial for the many people that have sought the help of qualified foreclosure attorneys in Long Island. Often, foreclosure can be prevented, and by making some financial changes in the New Year and sticking to them, you may be able to avoid foreclosure altogether.

Part of your resolution plan should be to create a comprehensive budget. Be sure to include all of your expenses: the cost of entertainment, lunches and eating out, gifts for family and friends, clothing, salon appointments- all of these types of items often are not included in a person’s budget, and can account for a vast amount of money. Therefore, don’t just calculate the large items like mortgage payments and insurance. Sometimes, you might even find that those “little” expenses total up to more than some of the bigger ones.

Once you have accounted for every one of your expenses, the next step is to determine ways to reduce or eliminate those costs. For example, many people spend nearly one thousand dollars a year on their morning coffee. To spend several thousand each year eating out is also terribly common. These are two examples of expenses that can be easily reduced, or even eliminated outright. Another common way to reduce expenses is to refinance loans- especially mortgages, student loans, and auto loans. More favorable terms, decreased payments, and decreased interest rates are all ways to produce more disposable income. Consider contacting your credit card companies and negotiating for better terms and rates with them as well.

When finished, your budget will tell you how much disposable income you have available each month. That income can then be used to pay down high interest rate balances, or to pay off debts entirely. Apart from doing this, one of your primary money resolutions for 2009 should be to save money. Consult with a qualified financial advisor about ways to safely grow your money. The truth is that you work hard for your money, so it makes sense to make your money work for you by earning its own interest. Bonds, savings accounts, and CD’s are all great ways to save money for your future and that of your family.

How Can I Prevent or Stop Foreclosure?

Foreclosure. The word alone conjures up ideations of dread and embarrassment. In this current financial crisis, however, it seems that there are none who are impervious to this unnerving new trend. In New York, for example, there was a reported 27.4% increase in Nassau County foreclosure filings just from the second quarter to the third, according to RealtyTrac, a foreclosed properties marketer. As a result of this, there are now a great many homes on Long Island that lay vacant, slowly slipping into various states of disrepair. Ten years ago the thought of vast numbers of foreclosures in one of America’s most desirable areas would have been considered nonsense. Nevertheless, Nassau County residents are no different in that they are feeling the strain of a national housing market gone haywire.

What is it that is causing all of these foreclosures, anyway? Well, the press has been fairly consistent and accurate in reporting that increases in Adjustable Rate Mortgages (ARM’s) and defaults on subprime home loans (which are already risky anyway) led to the current deluge of foreclosures. But if you dig deeper into the issue, you will see another major problem: homeowners were simply walking away from their property.

The real trouble started when the unprecedented housing boom began to collapse inward. Homes lost value so quickly that thousands of owners were left with a mortgage that was much greater than what the home was actually worth. For many, the solution has been foreclosure. However, there are a number of options available to homeowners who are facing a possible foreclosure. As with any situation of this magnitude, consulting with an expert such as a foreclosure attorney will provide you with valuable professional insight. If you find yourself in danger of foreclosure, consider the following:

In July of this year, President Bush signed into law the Hope for Homeowners Act. Under this act, homeowners can petition the federal government to buy their mortgage from their original lender with far more favorable terms. Likewise, a homeowner can refinance their current mortgage if they have sufficient equity, and possibly obtain a lower rate and payment. Other debts can be paid off when refinancing, so balances at high rates of interest like credit cards can be converted into the low-rate refinance. While either of these options can serve to enable a homeowner to avoid foreclosure, the fact remains that if the homeowner still cannot afford the monthly payment, then they are financially doomed unless they seek assistance and act quickly- there are still options available for even the most difficult financial situations.

In a case where the minimum monthly payment cannot be met, and the mortgage cannot be refinanced, selling the home may be a good option, especially if it can be sold at a profit. However, if a sale is not possible or even likely, a homeowner can offer a Deed in Lieu of Foreclosure. This is where the owner “sells” the home back to the lender. Any difference between what the mortgage is worth and what the home is sold for is forgiven by the lender. As an example, if the mortgage carries a balance of $100,000, but the home is only valued at or sold for $80,000, then the bank will forgive the $20,000 dollar difference. Because there are special rules to a Deed in Lieu of Foreclosure- such as the possibility that the forgiven balance may be considered taxable income- it is crucial to seek the advice of an experienced foreclosure attorney. Lenders agree to Deeds in Lieu of Foreclosure regularly, as this is a way to be rid of particularly risky loans that will cost more to collect on than to simply take as a small loss, comparatively speaking. But again, there are rules that must be adhered to, and you cannot possibly know them all yourself.

One way to buy time against a looming foreclosure is to ask for a forbearance or grace period on payment. When a homeowner is honest with a creditor, and advises them of financial difficulties, the lender is very likely to make concessions. Contrary to popular belief, it is in the best interest of the lender that your home not go into foreclosure. Mortgage companies grant payment “holidays”, forbearances, extended grace periods, and adjustments to existing mortgages to better enable a homeowner to avoid foreclosure. They do this constantly, so use it to your advantage.

Many people do not know that there may be public assistance available. Churches, State and Federal programs, charity organizations, and other forms of public assistance may help with anything from actually paying the mortgage payment to arranging for an attorney.