Now that you have reached retirement age, it is important to maximize all those assets that you have worked all of your life to accumulate.  You want to be wise with your post-retirement spending and earning, so as not to find yourself in any sort of financial difficulty during retirement.

If you own investments such as stocks, bonds, or mutual funds in taxable accounts, they will generate taxable income, interest, and dividends.  These earnings are taxable at your current income tax rate, so it makes sense to draw first upon funds from which you pay taxes.

When drawing from taxable income sources, it is best to progress from the items taking the biggest tax chunk out of you to the more tax efficient assets down the line.

Wealth grows more quickly in accounts where the taxes are deferred for as long as possible.  IRA accounts and 401 K plans can remained deferred until minimal distribution is required by law, at age 70 ½.  Principal and income drawn from these accounts is taxable as ordinary income.  The longer you hang on to these assets the better.  At the time you finally withdraw them, you will likely be in a lower tax bracket than when you began your retirement.  Just be sure to empty these accounts according to the required IRS timeline, or you could face stiff penalties for not doing so.

Roth IRAs should be the last accounts from which you withdraw funds.  If the funds have been in your account for at least five years and you are age 59 ½, all of your withdrawals are free from taxation.  Unlike traditional IRAs, Roth IRAs have no required withdrawal age.  You can keep the money in a Roth IRA, generating, wealth, for as long as you like.  You can even pass them on to your heirs and assigns, free of income tax.

All of these scenarios are subject to any multitude of variables that can affect the outcome of your personal post-retirement situation.  If you have chosen good investment plans and tax deferred income, you need to take into account every asset you own, including real property when determining how to maintain your income, lower your tax liability, and build your wealth during retirement.  This is the time to make all that you earned pay off for you.

It would be advisable to consult a financial advisor and seek his or her input on how to best manage all of your assets at this time of your life.  Having a clear, definitive plan is the best option for enjoying life and your post-retirement assets.



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If you have ever fallen behind on your credit cards you know that dealing with bill collectors can be an extremely frustrating and stressful experience. Government legislation such as the Fair Debt Collection Practices Act has forced the collection industry to clean up its act but many collectors will still say almost anything to get a delinquent account paid. If you are thinking about joining or are already in a Debt Settlement or Debt Reduction program it is important to know how to effectively deal with creditors and collection calls.

The most important thing to understand is that the Debt Collector on the other line is just doing their job. At the end of the day, most collectors are getting paid depending on how much they can bring back in on delinquent accounts. Review the Fair Debt Collection Practices Act (FDCPA) to learn the difference between acceptable means of collection and tactics that are illegal. If you are thinking about joining a Debt Settlement Program it should be comforting to know that there are some effective ways that most companies can help stand between you and the creditors. Although no company can guarantee that you will not receive collection calls, most companies include creditor support as part of the program they offer. Debt Settlement and Debt Reduction companies have two different approaches when it comes to handling creditors, proactive and reactive.

In the world of Debt Negotiation and Creditor communication, proactive means that a Debt Settlement Company won’t wait around and do nothing until their clients start getting creditor calls; they try and address the issue before it even starts. Usually the first communication to the Creditors from the company will be a Cease Communication Letter. These letters are to let the creditor know that the company is now the main contact for the account and has a Limited Power of Attorney to represent the client. Basically from this point forward all communication must first go through the negotiation company. A Cease Communication or Cease and Desist Letter can be an effective means of reducing creditor calls from third party collectors and in some cases original collectors. As a third layer of protection some Debt Settlement Companies can employ the service of a Consumers Union. The Consumer Unions’ sole purpose is to represent and advise clients who are getting an unusually high volume of collection calls. Some companies will also recommend that a client change their address and phone number on file to the Debt Settlement Companies Customer Service Department. This can help with creditor harassment and also keep the company aware of the accounts status.

Whether you choose to utilize Debt Settlement or decide to handle the creditors on your own, remember that it is not easy to reduce or make arrangements on a large unsecured debt amount. The process is not painless; it takes patience, determination, and a lot of hard work to get out of debt. Do the best you can to not take creditor calls personally and remember that they are paid to be persistent.



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There are times when a property owner is unable to pay the obligation in property tax. When this happen, a property owner becomes a delinquent taxpayer and a governing authority is in charge of collecting the taxes. However, if the authority is not able to collect the required property taxes, they will opt to take the final step to collect the taxes. The public tax lien auction is the final step that will take the delinquent properties to be sold. Tax lien auction is an auction ordered by the court depending on the nature of sales in the form of tax lien certificates or tax deed sales.  Tax lien auction in the form of tax lien certificate entails selling of certificates to assert the total sum of taxes as well as the administrative interests and charges.

The required property tax will be achieved through a tax lien auction and the delinquent properties are offered in the amount due for the taxes, interests and fees. Tax lien auction is an open sale that is why participants may tender their bids over and under the amount required for the tax of delinquent properties. The drawback is that the buyer will not be able to recover or refund the overbid.

Purchasing a tax lien certificate during a tax lien auction will require the buyer to pay against the required property taxes incurred by the delinquent taxpayer. However, the delinquent taxpayer along with the interest charges will pay the amount back to you that are about 16-18%.  This kind of auction allows the buyer the possibility to acquire the property in case of fail to repay by the delinquent taxpayer. In addition, the buyer can also obtain higher percentage of interest when repayment is made.

A referee appointed by the court conducts the tax lien auction. As the tax lien auction starts the referee announces the terms of sale and the required amount of bidder’s deposit. Just like any procurement bidding process, the prospective buyer or bidder is required to pay 10 percent of the bid amount in form of certified check payable to the referee.  The delinquent properties sold in a tax lien auction are sold where is and as is. This means that a bidder has no right to investigate the property prior to the auction schedule as well as inspect the interior of the property. Although the property is deemed tax lien foreclosure, it is not allowed to enter the property and do some inspection. This may seem that your bid is in uncertainty because whatever the condition of the property you are not allowed to investigate and inspect.

There are many tax lien listings offered by different websites that allows the prohibition of keying the data for the buyer or bidder. This will also let the buyer to choose the right lists that qualifies to the criteria.







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Can Making Home Affordable help me if my loan is not owned or securitized by Fannie Mae or Freddie Mac?

 

Yes. Making Home Affordable offers help to borrowers who are already behind on their mortgage payments or who are struggling to keep their loans current. By providing mortgage servicers with financial incentives to modify existing first mortgages, the Treasury hopes to help as many as 3 to 4 million homeowners avoid foreclosure regardless of who owns or services the mortgage.

 

How do I know if I qualify for a Home Affordable Modification?

 

To apply for a Home Affordable Modification, you must:

 

Be an owner-occupant in a one to four unit property, and have an unpaid principal balance that is equal to or less than $729,750 (for one unit properties and higher for two to four unit properties (consult your servicer),

 

Have a loan that was originated before January 1, 2009.

 

Have a mortgage payment (including taxes, insurance, and home owners association dues) that is more than 31% of your gross (pre-tax) monthly income, and have a mortgage payment that is no longer affordable, perhaps because of a significant change in income or expenses.

 

If you answered YES to all of these questions, you are eligible to apply for a Home Affordable Modification. Only your servicer will be able to tell you if you qualify.

 

What if I don’t qualify or my lender is not participating in the Home Affordable Modification Program?

 

While 3-4 Million Homeowners are expected to qualify and most major lenders are expected to participate, in the event you cannot participate in this program, we are an ethical, full service Loss Mitigation firm dedicated to helping homeowners retain their homes. Contact us today at 1-877-467-3588.

 

Do I need to be behind on my mortgage payments to be eligible for a Home Affordable Modification?

 

No. Responsible borrowers who are struggling to remain current on their mortgage payments are eligible if they are at risk of imminent default, for example, because they have had or will soon have a significant increase in their mortgage payment that they cannot afford. If you have had or anticipate a significant increase in your mortgage payment or have had a significant reduction in income, contact your servicer. If you meet the minimum eligibility criteria for a Home Affordable Modification, your servicer is required to evaluate your loan to see if you are at risk of imminent default.

 

I have missed some mortgage payments am I eligible?

 

If you answered yes to the questions above, have missed two or more mortgage payments and your servicer is participating in the Making Home Affordable Program, your servicer must evaluate your loan to determine if you qualify for a modification.

 

I have a second mortgage. Am I still eligible?

 

Yes, but only the first mortgage is eligible for a modification under Making Home Affordable Loan Modification Program.  Any negotiations on the second mortgage would be between you and your lender and does not affect the federal guidelines.

                                              

How do I know if my servicer is participating? Are all servicers required to participate?

 

Servicer participation in the program is voluntary. However, the government is offering substantial incentives to servicers and investors, and it is expected that most major servicers will participate. Participating servicers will sign a contract with Treasury’s financial agent, through which they agree to review every potentially eligible borrower who calls or writes asking to be considered for the program. As contracts are signed, a list of participating servicers will be available on the Internet at www.FinancialStability.gov. Participation will be mandatory for any servicer that accepts future funding from the Treasury’s Financial Stability Program.

 

 

What will my servicer do to determine if I qualify?

 

Your servicer will:

 

Determine that your loan meets the minimum eligibility criteria (owner occupied, originated before January 1, 2009, UPB equal to or less than $729,750). If yes:

 

Obtain sufficient income information to determine if your monthly mortgage payment is more than 31% (approximately 1/3) of your gross or pre-tax monthly income. (Your servicer may initially accept verbal information about your income, but eventually you will need to provide proof of income in the form of tax returns and pay stubs). If yes:

 

Add past due charges (interest, taxes, insurance and costs that your lender paid to other parties on your behalf – but not late fees, those must be waived) to the loan balance.

 

Determine how much of an interest rate reduction will be required to get your mortgage payment down to a point where it is about 31% of your gross monthly income.

 

Apply a test to determine if the cost of the modification (including the government’s incentive payments) is less costly for the investor than a foreclosure. If yes:

 

Put you on a trial modification for three months at the new interest rate and payment.

 

If you successfully make the payments and are current at the end of the trial period, your servicer will execute a permanent modification agreement that will lower your interest rate to a fixed rate for five years.

 

The modification payment will also include a monthly amount to be set aside (escrowed) to pay taxes and insurance when they become due. This escrow is required even if your prior loan was not escrowed.

 

What happens after five years?

 

If the modified interest rate is below the market rate, the modified rate will be fixed for a minimum of five years as specified in your modification agreement. Beginning in year six, the rate may increase no more than one percentage point per year until it reaches the rate cap indicated in your modification agreement. The cap is equal to the prevailing market interest rate on the date the modification is finalized as published by Freddie Mac based on a survey of its customers. This cap means that your rate can never be higher than the market rate on the day your loan was modified. If the modified rate is at or above the prevailing market rate, the modified rate will be fixed for the life of the loan.

 

How low can my interest rate go?

 

Treasury is providing incentives to your investor to write the interest down as low as 2%, if necessary to get to a payment that you can afford based on your income.

 

What happens if that is not enough to get to an affordable payment?

 

If a 2% interest rate is does not result in a payment that is affordable (31% of your gross monthly income), your servicer will:

 

First try to extend your payment term. At the servicer’s option your payments could be extended out to 40 years.

 

If that is still not sufficient your servicer will defer repayment on a portion of the amount you owe until a later time. This is called a principal forbearance.

 

A portion of the debt could be also be forgiven. This is optional on the part of the investor. There is no requirement for principal forgiveness.

 

Could I end up with a balloon payment?

 

Yes. If your servicer determines that a principal forbearance is required to get your monthly payment to an affordable level, the amount of the forbearance. Say for example this was $20,000, would be subtracted from the amount used to calculate your monthly mortgage payment, but you would still owe the money. You would have a $20,000 balloon payment that had no interest and was not due until you paid off your loan, refinanced or sold your house.

 

Is housing counseling required under this program?

 

Borrowers, especially delinquent borrowers are strongly encouraged to contact a HUD-approved housing counselor to help them understand all of their financial options and to create a workable budget plan. These services are free. However, housing counseling is only required for borrowers whose total monthly debts are very high in relation their incomes, and it is voluntary for others.

 

When you apply for a Home Affordable Modification, your servicer will analyze your monthly debts, including the amount you will owe on the new mortgage payment after it is modified, as well as payments on a second mortgage, car loans, credit cards or child support. If the sum of all of these recurring monthly expenses is equal to or more than 55% of your gross monthly income, you must agree to participate in housing counseling provided by a HUD-approved housing counselor as a condition of getting the modification.

 

I heard the government was providing a financial incentive to borrowers. Is that true?

 

Yes. Borrowers who make timely payments on their modified loans will receive success incentives. For every month you make a payment on time, Treasury will pay an incentive that reduces the principal balance on your loan. Over five years the total principal reduction could add up to $5,000. This contribution by the Treasury will help you build equity faster.

 

I do not live in the house that secures the mortgage I’d like to modify. Is this mortgage eligible for a Home Affordable Modification?

 

No. For example, if you own a house that you use as a vacation home or that you rent out to tenants, the mortgage on that house is not eligible. If you used to live in the home but you moved out, the mortgage is not eligible. Only the mortgage on your primary residence is eligible. The mortgage servicer will check to see if the dwelling is your primary residence.

 

I have a mortgage on a duplex. I live in one unit and rent the other. Will I still be eligible?

 

Yes. Mortgages on two, three and four unit properties are eligible as long as you live in one unit as your primary residence.

 

I have two mortgages. Will a 2009 Obama Mortgage Relief Plan reduce the payments on both?

 

Only the first mortgage is eligible for a modification.

 

I owe more than my house is worth. Will a Home Affordable Modification reduce what I owe?

 

The primary objective of the Making Home Affordable Program is to help borrowers avoid foreclosure by modifying troubled loans to achieve a payment the borrower can afford. Investors may, but are not required to, offer principal reductions. However, it is more likely that your servicer will use interest rate reductions in order to make your payment affordable.

 

I have an FHA loan. Can it be modified under the making Home Affordable Program? Are all loans eligible?

 

Most conventional loans including prime, subprime, adjustable, loans owned by Fannie Mae, Freddie Mac, private lenders and most loans in mortgage backed securities are eligible for a Home Affordable Modification. The Administration is working with the Congress to enact legislation that will allow FHA, VA and USDA to offer modifications consistent with Making Home Affordable in the near future. Currently loans insured or guaranteed by these agencies are being modified under other programs that also enable borrowers to retain homeownership.

 

What should I do if my servicer tells me that the “investor” is not participating in Making Home Affordable?

 

As contracts with servicers and investors are signed, the list of participants will be posted at www.financialstability.gov. Borrowers should first check there to see if their servicer is listed. If so, you should call your servicer back and ask to speak to a supervisor or you may contact a HUD-approved housing counselor for assistance. If your servicer is not participating in the program, you should ask your servicer or a housing counselor about other workout options that may be available.

 

I’m already working with my servicer or a housing counselor on a loan workout. Can I still be considered for a Home Affordable Modification?

 

Yes. You should ask your servicer or counselor to explain the benefits of all available foreclosure prevention or payment reduction options. A Making Home Affordable Modification is one of many valuable tools available to your servicer. Other options may be more appropriate for your situation.

 

How do I apply for a modification under the Homeowner Affordability and Stability Plan?

 

If you meet the general eligibility criteria for the program, you should gather the financial documentation that your servicer will need to determine if you qualify. Once you have this information, you should call your mortgage servicer and ask to be considered for a Home Affordable Modification. The number is on your monthly mortgage bill or coupon book.

 

If your loan is current, please be patient. Treasury just published detailed program requirements on March 4, 2009 and it will take some time before servicers are fully operational. However, the Treasury has encouraged servicers to immediately begin reviewing the eligibility of delinquent borrowers that are at the greatest risk of foreclosure.

 

If you have already missed one or more mortgage payments and have not yet spoken to your servicer call them immediately.

 

What information and documents will I need?

 

It will help your servicer and speed processing of your application if you gather the some information and documents before you call. You will need:

 

Information about the monthly gross income of your household, including recent pay stubs if you receive them or documentation of income you receive from other sources.

 

Your most recent income tax return.

 

Information about your assets

 

Information about any second mortgage on your house.

 

Account balances and minimum monthly payments due on all of your credit cards.

 

Account balances and monthly payments on all your other debts such as student loans and car loans.

 

A letter describing the circumstances that caused your income to be reduced or expenses to be increased (job loss, divorce, illness, etc.).



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