According to a November 19^th press release by the Mortgage Banker Association, almost 10 percent of mortgage-holders were at least one payment past due in the third quarter of the year. And the percentage of loans at least 90 days past due is at an all-time record, as is the percentage of loans in foreclosure.

What’s interesting is that some banks are not foreclosing.  You have heard me correct, they are letting people stay in their home, without payment, and not forcing them out.  Why would this be?  They are saying it’s because they are “overloaded” with delinquencies.  The reality is that in some cases, it is more beneficial for the banks to not collect payments, than take back “another” home.

What’s frustrating is how the media is talking about the real estate market “recovering.”  That’s interesting, how can we possibly be at the bottom of this market when banks are letting people live in their homes with no payments.

Do you know anyone who is currently living in their home without paying?  Tell me the story below!

Good news! Those hard-to-read, legalese, fine-print notices from credit card companies, banks, and other financial institutions might be a thing of the past. Federal agencies are pushing a user-friendly form that uses large print, common language, and a ton of tables and graphs that illustrate cause and effect. Though the forms are not mandatory, banks and other financial institutions might opt to embrace them as a means of polishing their tarnished reputations. One step forward for consumer-activist groups!

Tell me your credit card horror story below. What didn’t you know that you think they “should have” told you or should have been more “clear” about?

As much as I love this for the borrowers who are struggling, this could be a disaster for the real estate market.  What is going to keep someone paying their mortgage if they are “underwater” by $100,000 when they could stay in the same home AND pay less rent?

This is going to hurt the banks more than they will help them… once again, a “good” idea that is going to backfire.

That being said, if you are struggling to meet your mortgage obligations, call your lender.  Most likely, you will need to be late on your payments for you to qualify (like the loan modification programs). 

To qualify for the “Deed for Lease” program, borrowers must show that:

1. They did not qualify for a loan modification.
2. They cannot afford their current mortgage.
3. They can afford rent.

Be sure to ask when the lender will put the home on the market so you can plan accordingly.

Suffering not only from the recession, but also from the new restrictions mandated by Congress, banks are passing the buck—or rather, they are grabbing the bucks wherever they can find them by increasing interest rates to make ends meet.

With the holiday season fast approaching, this is bad news for consumers who turn to credit cards to finance their holiday shopping. To stave off compounding interest charges—and the holiday hangover that corresponds with mounting credit card bills, we suggest leaving the credit cards at home when headed to a mall. Instead, follow this plan:

1. Make a budget for each person on your shopping list.
2. Label envelopes with the names of each person for whom you are buying a present.
3. Place the amount of cash appropriated for each person inside the respective envelope—no more and no less.

When purchasing a present, withdraw cash from the appropriate wallet. This method creates a psychological barrier to impulse shopping. If you are tempted to splurge on a gift—let’s say you are robbing from Peter’s envelope to buy a gift for Paul—you will be dissuaded when you realize you will need to withdraw money from another person’s wallet to cover the extra cost of the gift.

If you want a copy of my book, “Preventing the Credit Holiday Hangover,” submit a comment below with your best money saving technique.  I’ll email the book out to you immediately!

Have you been treated unfairly by your credit card companies or banks?

Are you willing to tell your story?  If so… you can help!

I’m heading back to Washington to lobby our elected leaders and I need as many stories as possible so we can make a difference.

Let’s face it…. The LAWS are not fair, and they need to be changed!

 Tell me your worst story about your bank or your credit card company.

1)   What happened?

2)   What did they tell you?

3)   Why wasn’t it fair?

The more detail the better!

Post your comments below!  Do it now!

In light of the bad press they have suffered in the past year, banks are eager to rebrand themselves as kinder and gentler. A few—including Chase, Bank of America, and Capital One—have capped the maximum number of overdraft fees it will charge any single customer in one day to four. At $35 a pop, this still causes customers in the red $140 a day—a hefty price tag for people who are already suffering financial strain. This is down from 10 in one day; Can you imagine getting charged $350 in one day due to overdraft fees?

How do you avoid this? Here are two ideas:

1. Call your bank and ask that it stop automatically paying transactions that overdraw your account. While they are not currently required to oblige your request (though a federal regulation might make it mandatory in months to come), banks might be eager to please unhappy customers by declining transactions that put your account in the red and saving you the overdraft fee.

2. Give yourself a $100 or $200 cushion—at least on paper. Today, make an adjustment to your bank ledger so that your records show that you have $100 or $200 less than you actually have. This will help protect you from overdrafts caused by charges that might have slipped your mind.

Since when do we expect the UN to actually give a firm demand? They are master hedgers. It reminds me of our credit bureaus. It reminds me of our banks. It reminds me of the credit card companies.

It’s very clear that North Korea acted unfairly by breaking the rules that they agreed to. Isn’t it equally unfair that our credit reporting system impacts 80% of Americans with errors and that those American lives are being impacted because of those errors?The UN will not take action, just like our government has not taken action. The only difference is that the credit reporting system can be fixed via education. North Korea… well, it’s a little more difficult to negotiate with tyranny.