Don't Fall Victim to a Mortgage Scam

As you spend your life planning, working, and doing the things you love – you are also building a home. Not just a house or a place to hang your hat. Life is pretty great right? You have a good job, you have a home, and things are sunny. Until disaster strikes. No one wants to think about it, but it can happen to anyone. Yes, I am talking about the nauseating word, foreclosure. Although, you thought you had it all together, and you probably did, anything can happen. Job layoffs, illness, injury. So many variables. If this has happened to you or someone you love, you are probably feeling like you do not know where to turn and feeling utterly alone. But that simply should not be the case at all. There is help out there. June is National Home Ownership Month, but many Americans are still struggling to make their mortgage payments. About 1 in 17 homeowners nationwide have fallen behind on their mortgage payments, putting them at a higher risk of foreclosure. Unfortunately, foreclosure rescue and mortgage modification scams are a growing problem. Scammers will make promises that they can't keep, such as guaranteeing to "save" your home or lower your mortgage payments, usually for a fee, and sometimes even claiming that they have direct contact with your mortgage company. These scams could cost homeowners thousands of dollars – or even their homes.

• Through the federal Making Home Affordable program, many homeowners have received much-needed help to reduce their monthly payments, get mortgage relief, and avoid foreclosure.Homeowners who are struggling to make mortgage payments can call 888-995-HOPE™ (4673) or visit MakingHomeAffordable.gov for free resources and information to help them deal with their mortgage problems and avoid foreclosure.

 

• Telephone scammers often request payment by wire transfer services similar to MoneyGram, or completion of paperwork containing your Social Security Number. Do not make any mortgage payments by wire transfer, or provide any personal information, in response to these calls. If you receive unsolicited calls, always check with your mortgage company using the phone number on your mortgage statement, or call 888-995-HOPE^™ (4673) to check its legitimacy.
• Beware of telephone calls urging you to take advantage of the Making Home Affordable Program. Beware of anyone seeking to charge you in advance for mortgage modification services. In most cases, charging fees in advance of a mortgage modification is illegal.

• Paying a third party to assist with your application may not improve your likelihood of receiving a mortgage modification. Beware of individuals or companies that ask you for payment, tout their success rate, or claim to be Making Home Affordable (MHA) or Home Affordable Modification (HAMP) experts.

• The Making Home Affordable (MHA) housing counseling experts at 888-995-HOPE™ (4673) are available around-the-clock (24 hours a day, 7 days a week), in over 170 languages, and at no cost. They will help homeowners understand their options and design a plan to suit their individual situation.

 


 Going through the stress of potentially losing your home is hard enough as it is. No one should EVER be faced with going through that alone, but many do feel alone in what they are experiencing. That is why the Making Home Affordable (MHA) program provides free resources and assistance for distressed homeowners who are working hard at juggling expenses to makes ends meet. There are more options available for struggling homeowners today than ever before, and MHA works to provide them with the mortgage solution that is right for them. Visit MakingHomeAffordable.gov to read about available programs to help with mortgage payments. If you or someone you know is struggling, there is help.

Guest Post & Book Giveaway: 10 Mistakes to Avoid When Saving for Retirement

Many of us made New Year's resolutions to lose weight or exercise more. It turns out that the dedication to our health can also apply to financial success. We've put together a suggested post with ten mistakes to avoid for your financial fitness. As an additional resource we can do a book giveaway with you of the book “Lean Body/Fat Wallet.” The advice in this book can help you turn new behaviors into successful habits for long term fitness and financial security.

10 Mistakes for Moms to Avoid When Saving for Retirement

 

Whether you’re a working mom or stay-at-home with the kids, saving for retirement can often be put on the back burner. Between staying on budget and wanting to build college funds, finding a little extra to invest in your retirement can be a daunting task. Moms are usually the driving force in the household when things need to get done. Here are some tips for mom's to avoid these common retirement planning mistakes when they’re considering their financial future.

 

Biggest mistakes when saving for retirement:

 

1.       Waiting to save.

Start saving early so your money has time to grow. If you’re worried about sticking to your budget, start small. Even $20 a week can go a long way over time, and when your budget allows, contribute more.

2.       Failing to plan.

It is important to understand expenses for the type of lifestyle you want, so you can save enough money. Figure out what your retirement goals are, and start planning your retirement finances now. There are helpful interactive calculators that can help you determine how much you will need in retirement.

3.       Saving for college before retirement.

Moms want the best for their children, but there are many factors when deciding which savings take priority. Consider this: Your kids have access to loans and scholarships to help pay for college, but if you don’t save enough money for retirement, you may not be able to afford your expenses.^* You could also have separate savings for college and retirement, and contribute to both. Even if you’re contributing less to each than you would like, the longer the money is in the account, the more the interest will accumulate.

4.       Retiring with a lot of debt.

Find a way to pay down or pay off consumer, student loan, and mortgage debt before you retire. These recurring payments will be harder to make when you’re on a fixed income.

5.       Relying on Social Security.

Your Social Security benefits are a valuable source of income during retirement, but with an average benefit of just $1,237, ^** it is unlikely that Social Security will be able to cover all your retirement expenses. Before you retire, visit www.socialsecurity.gov to find out what benefits you should plan for.

6.       Failing to research options to increase your savings.

The key to growing your retirement fund is balancing risk and reward. Look into different options and how they could fit your retirement goals. If you want a low-risk option, check out fixed indexed annuities (FIAs) atwww.FIAinsights.org. Market-driven options like mutual funds or securities have higher risk, but also the potential to really increase your savings. You can research a variety of retirement plans here.

7.       Individualizing your accounts.

If financial assets are in one account under one name, it may be hard to access those funds in the event of a family death. Having joint retirement accounts will protect you, your family, and your finances in the event of an unexpected death. ^***

8.       Using your retirement funds before retiring.

Let the money in your retirement fund grow, and if you need money earlier, consider other sources. It is harder to save the closer you get to retirement, and many retirement accounts have steep penalties for withdrawing early.

9.       Failure to plan for taxes.

Keep in mind that you will still have to pay taxes after leaving the workforce. Plan ahead so you’ll have enough money to pay your taxes as well as enjoy your retirement.

10.   Depending on a specific retirement age.

You may plan to work until you’re 65, but sometimes unexpected circumstances alter your retirement plans. That is why it is important to start saving for retirement early, so you won’t be short of your retirement goals if you are unable to work earlier than expected.

 

^*Source: US News & World Report http://money.usnews.com/money/personal-finance/articles/2012/08/08/10-critical-retirement-saving-mistakes

^**Source: Social Security Administration

^***Source: USA Today http://www.usatoday.com/story/money/columnist/brooks/2013/05/20/retirement-mistakes-401k-pension/2193967/

 

The Giveaway

One lucky winner is going to receive a copy of Lean Body: Fat Wallet. To enter, just fill in the Rafflecopter form below.  This giveaway will end on  2/27/14. Open to the US only. The winner will be notified via email and will have 48 hours to reply. Thanks again to Culturelle for offering this fantastic prize

 a Rafflecopter giveaway

 ***Please note I received no form of compensation for this post. This is not a review. Information was provided by the company or their representative. New Age Mama is not responsible for prize delivery***

Teaching Your Child Financial Responsibility With Allowance

It’s never too early to start teaching your children about financial responsibility. After all, it’s a lesson that they’ll be using and perfecting for a majority of their lives, so they might as well start learning between naps and pretend time. There are different methods that can be used for children of different age groups, so chances are good that you’ll be able to find a method that both you and your child will enjoy. 

Allowances

Some parents have no problem giving their child an allowance while others feel that it puts them in a position where their daughter or son might ask for more allowance or an advance in their allowance. You don’t necessarily have to give your child money to teach them about financial responsibility since they might develop the idea that they should be paid whenever they’re responsible. On the other hand, allowance is a good way to show them the rewards of hard work. 

Small Savings

Another lesson that young kids can learn about is how to save their money rather than spending it as soon as they get it. While they might be tempted to run out and use their allowance on candy and small toys, you can teach them the merits of saving up for a big purchase like a new video game or a bicycle with a Spend Smart debit card. It’s reloadable and prepaid giving control to the parents, while allowing some freedom.

Parents can also give their child a piggy bank that they can use to learn about long-term and short-term savings. This will be an invaluable lesson as they start to age and have to set aside money for rent, savings, credit card bills and car payments. 

Adult Play Time

Something else you can do to teach your kids how to be responsible with money is to take them grocery shopping. They’ll undoubtedly want to grab a few items that aren’t on the list, but this presents you with the opportunity to show them the dangers of impulse shopping. Show them that they aren’t the only ones who want to go on a rampage through the store when they can’t by some of the things that they want that aren’t on the list. Make a game of researching toy cars, dollhouses, action figures and other toys to demonstrate how to find the best one, comparison shop, look for deals and how to negotiate. 

All of this might seem a bit too early and a bit too much for young children to learn, but you can make it fun and plant the seeds of financial knowledge and responsibility that they’ll use for the rest of their lives. There’s no need for them to waste money and make bad money decisions on their own.

Responsible Teenagers

Rather than having your kids learn about credit cards when they get to college, start them off while they’re still in high school. Show them how to use a credit card the right way, the dangers of misusing a credit card and the importance of paying off credit cards as much as possible before the end of the month in order to avoid unnecessary interest fees. By starting their credit education early, they’re less likely to make expensive mistakes when they get to college and get a credit card of their own. And chances are good that you’ll be the one who will have to pay for their expensive mistakes.

Start your kids off on the right financial foot not only for themselves, but for yourself as well.