Breakin' Out of Your Financial Funk!
appeared in the November 2008 issue of
Essence Magazine.
Go to page 88 and
read the review under the banner of Money Tools.
Are you threatened with a home foreclosure?
Is your home already in foreclosure?
Suffering from your own personal economic depression?
Nervous after receiving a layoff notice?
Are you struggling to pay off debts with no peace of mind?
Considering debt consolidation ?
Called credit counseling agencies?
Scheduled an appointment to enter into bankruptcy protection?
Will you have to work another job/career if you retired?
Under stress to make a decision about an early retirement buyout?
You are in a financial funk
whether you know it or not!!!!!
Give yourself a mental break.
Read
Breakin' Out of Your Financial Funk!
It is a financial psychologist in a book guaranteed to move you to
dream, plan and execute the goals
sure to break you out of your financial funk.
You will learn strategies to:
- Deal with the emotions of financial funk.
- Establish confidence to implement crazy but lucrative ideas.
- Reinvigorate your dreams.
- Review current career choices/ lifestyle options.
- Review potential career choices/ lifestyle options.
- Transition to a new job or career.
- How to attract money.
- How to set revolutionary goals.
Purchase the Book Below
Both the electronic and paperback versions are available.
Don't leave yet!!!
You can pretend with everyone else your life is okay,
but you know you are in a funk.
Solid Retirement Portfolio Lost Two-thirds Value.
You built a solid retirement portfolio in the high flying 90's by guessing on the performance of a stock or mutual fund. Everything seemed to expand profitably through the roof. The Dow Jones Industrial Average crossed the 10,000 mark. You doubled, tripled or even quadrupled your portfolio only to lost two-thirds of your retirement portfolio in 2001 due to the Enron malaise and the World Trade Center bombing.
Five Years of Toiling then Bottom Falls Out.
After 5 years of toiling to get control of your life, the bottom falls out again. You thought you could recoup your investment loss with rising home equity. You were lured by low mortgage payments into buying a palatial mansion, only to be stuck with a big house and earth shattering mortgage payments? You are not alone. Many well-educated individuals are in the same position.
Good Credit Borrowers In Foreclosure
The subprime mortgage crisis and its foreclosure cousin has affected more than the less than perfect credit borrowers the media has presented. Subprime lenders expanded their market base by offering products exclusively for borrowers with good to perfect credit. These mortgages - option arm, no money down, and 125% home equity were offered to improve families home ownership opportunities. They did. Homeownership peaked at an all time high of 69.2% in 2004 from 64%.
Losing Dream Home
The subprime crisis has become national as it affecting 60% of the American population. People are losing their dream homes and their sanity. They are stressed, attempting to cover mortgage payments that are increasing wildly, they cannot afford. Property values nationally are dropping sharply trapping people into a negative situation. Their American dream of owning a home, a major investment in America, is being crushed. People are stressed, depressed, and frustrated. People are in a financial funk.
Americans Baited Into Creative Mortgages
Property values increased double and triple fold. Americans were baited into the false sense this boom would continue forever. People secured adjustable rate option arm, no money down and 125% home equity mortgages, not realizing greedy mortgage companies would increase their rates astronomically even when interest rates remained low.
Astronomical Interest Rates Deadly
Affluent well-educated people have been bamboozled by the trusted financial industry. Affluent well-educated people were baited into low mortgage payments with option arm mortgages. Option arm mortgages is the street term for the negative amortization loan which promised start interest rates as low as 1.25% to 4% compared to 5.25% to 8%. See the difference in the table below.
$500,000 Loan Amount
Rate Payment
1.25% $1666.26 5.25% $2761.02
2.25% $1911.23 6.25% $3078.59
3.25% $2176.03 7.25% $3410.88
4.00 % $2387.08 8.00% $3668.82
People trusted mortgage companies when they should not have been trusted. Adjustable rate mortgages once adjusted annually. Along the way, mortgage companies slipped in semiannual interest rate adjustment. Instead of a maximum rate increase of 2% annually, people are realizing a 4% rate increase annually. If your rate began at 3.25% and every year the interest rate is increased 4% a year, in three years, a person will reach the maximum legally allowable interest rate of 13.99 %. For a $500,000 mortgage, the payment in three years would jump to $5920.40 almost triple the original payment of $2176.03. Most people cannot handle an adjustment of that magnitude especially not over 3 years. The interest rate cap was once 9% but the mortgage companies lobbied Congress to increase it to make more money.
Option Arm Mortgages Designed For Super Wealthy
Option arm mortgages were designed for the super wealthy, who understood there would be a balance of interest left over from paying only 5 percent of the interest due. The super wealthy gambled that their property value would increase faster than this interest balance increase and they would generate a sizable profit from this real estate transaction. The common individual would not be so lucky. Property values nationally have rapidly declined. People can not even refinance themselves out of this situation as their mortgage balance is higher than the worth of their house. Hence, they are stuck with a big house, a declining investment, earth shattering payment and an increasing mortgage balance.
Mortgage Companies Could Have Saved Americans
Even when the foreclosures began to mount, mortgage companies could have renegotiated mortgages to readjust the rate annually rather than semiannually, they were not going to cut into their profits to save Americans.
You are suffering in silence to embarrased to discuss your plight. You now seek remedies such as filing bankruptcy protection, credit counseling, debt consolidation loans, but you are afraid these remedies will make your personal economic depression get even worse as you really need to make more income. You rack your brain and health performing a full time and part time job hoping they will improve your life. However, you are struggling to stay focused to become productive. Before you add to your woes and commit to a long term solution that is disastrous, purchase Breakin' Out of Your Financial Funk! book.
Don't think you are in a financial funk even if life has changed slightly.
Take the Breakin' Out of Your Financial Funk! Quiz here. You will learn a a little more about yourself.
Join us at our Book signing and A Champagne Toast
Give yourself a mental break from your financial dilemmas. Visit our Book signing and A Champagne Toast to celebrate your emancipation from financial slavery, whether that slavery is shackles of debt, lack of income or just plain worry. Let us help you to recreate your environment, discover new opportunities and fulfill unbelievable dreams.
A Champagne Toast event should leave you energized to move beyond your financial funk into a dream life full of happiness and passion.
Next event
Thursday, November 6, 2008
Java Exchange Techtown
Detroit Michigan
6pm -8pm
Books will be on hand for autographing or they can be
purchased in advance here, Amazon, Borders, Barnes & Noble and Target.
A Champagne Toast has not arrived in your city?
We can be reached at BreakinOut@upliftinc.org
Don't need a pick me up?
Make a donation to assist others .
2007 Uplift, Inc. All Rights Reserved.
|
