A new excited home buyer!

I met with a client in late February related to the IDA Saver program. The IDA Saver is a program of United Way of Central Alabama(UWCA) that provides matching down payment assistance (or funds for a business, or funds for education to qualified, income eligible persons and families). Client is a single mother of three. In late February, client's credit score was in the high 400’s. Client did a great job following guidance, and came back in today December). Her credit score increased to 613. She and I were both thrilled with these results. She will move forward with the purchase of a home with UWCA’s help. It is an honor to be able to serve individuals and families in this manner. 

Another housing retention success storty

I celebrate every success story when clients receive a loan modification that enables them to retain their home. This week was another celebration week. A client experienced a loss in their family resulting in less retirement income (when we lose a spouse our social security income will decline, the living spouse will receive the greater of funds his or her partner received  rather than 2 checks). With reduced income my client became eligible for a HAMP modification. She received a reduction in payment this week of more than $200 per month. This reduction will enable this client to retain their home and live in greater financial serenity.  

Housing counselors can and do help

If you are having difficulty making your mortgage payment, do contact a non-profit housing counselor. You can locate such counselors on HUD's web site by following the attached link: http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm
I share the following story from my work as a housing counselor. I received a call  from a client who had been ill for the past 2 years and during this time, her homeowners insurance (HOI) lapsed due to her failure to pay her insurer a required $30 membership fee (most insurers do not have this requirement). The client's lender, when they became aware of issue, force placed insurance. This means they purchased a HOI policy to protect their interest in the home. Her home payment went from $487 to $854 monthly! The force placed insurance only protects the lender, not the client (this is always true as many learned when tornadoes struck Alabama in April). My client had tried with no success to obtain help from her lender. We called the client's lender via conference call and were able to cure this problem. Her reduced payment was restored within 5 business days as soon as her insurer called the insurance department of the lender affirming that coverage was restored. If you feel wronged by your mortgage servicer seek professional help.    

Recent college grad job search challenges

Here is a link to a NY Times article written by Robert Goldfarb, a management consultant, comments on recent college grad job search and criteria essential to companies seeking new employees. Worth reading: http://www.nytimes.com/2011/12/11/jobs/helping-graduates-find-their-footing-in-the-workplace.html?_r=1&ref=business

Student Loan Debt caution!

I am watching the Suze Orman Show and a call comes in from a NYU dental student approaching graduation. She shares that she has $450,000 in student loan debt and asks Suze how she will pay this debt back. Nearly everyday in my work I see people as a financial coach who have too much student loan debt, are often taking on more debt, and are having trouble meeting their financial obligations including student loan debt. I offer the following observations and cautions:

1. Approach educational opportunities and the financing of same carefully.
2. Understand what the financial outcomes of students in the program you are entering have been. What do people earn, how long before they are able to get desired job, etc. Be a smart school and school financing shopper.
3. Consider if the program of study is within your means and are likely to produce good outcomes for you.
4. Be particularly careful about private for profit education institutions including online institutions. The cost of these programs tends to be high, the student loan default is much higher than non-profit or public schools.
5. Understand that it is very difficult to ever place federal or private student loan debt in bankruptcy.
6. Treat the decision to attend a particular school and program, and in considering student loans, as carefully as weighing a choice of spending limited money in your bank account or wallet. For many, the use of other people's money (OPM) can be much easier to spend than your own. This is a major mistake.
7. Note, I believe in the power of education. I believe well chosen career paths, well chosen schools, well chosen education funding options are in your best interests. Any shortcoming in these choices can be and will be dangerous to your financial and emotional well-being long-term. Life is always about making good choices. Making the right choices for you and your life circumstance.
8. Remember some professions including teaching, social work, and others offer the potential to have student loan debt forgiven after working in a field for ten or more years and paying on your student loan debt during this period.
9. Look into consolidating federal student loan debt, and exploring Income - Based  Repayment Plans if applicable.

Worth reading money and stress

I came upon the following article discussing money and stress. The article closes with a reference to the value of helping others as a great way to help ourselves! Worth keeping in mind anytime of the year. Wishing each of you Happy Holidays and a Happy New Year!
http://www.dailyfinance.com/2011/12/07/travis-stork-of-the-doctors-on-how-money-stress-can-make-you-s/

The Wallet Useful Resource and Article Regarding Money & Stress

Worth reading and periodically visiting this site: http://blogs.wsj.com/wallet/2008/12/10/more-ways-to-handle-money-stress/

HARP (not only a musical instrument)

If you or individuals you know meet the following criteria, they need to get to know HARP (Home Affordable Refinance Program):

1. They own their home.
2. Their loan is owned by FNMA or FHLMC (they own 80% of all conventional mortgages).
3. Their home is worth less than what they owe on their home.
4. Their mortgage rate is above current market rates.

Contact a HUD-approved housing counselor to explore HARP. Follow this link to locate a counselor: 

http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfmhttp://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm

Reverse mortgages (for you or your folks?)

If you or your folks have considered a reverse mortgage, I offer the following insights:

1. Home owners must be 62 years of age or older (the older the better).
2. Must have at least 50% equity in their home.
3. Home must be in fairly good condition.
4. Home owners need funds to supplement their income, to rebuild an emergency reserve fund, or to complete desired home improvements.
5. The following link will help you locate reverse mortgage lenders, click on HECM check box: http://www.nls.gov/ll/code/llslcrit.cfm
6. The following link will help you locate HUD-approved reverse mortgage housing counselors (I am certified to do this counseling): https://entp.hud.gov/idapp/html/hecm_agency_look.cfm

Economic insecurity

CNN Money posted the following article today based on Yale professor Jacob Hacker's work on economic insecurity. See new question posted on feelings of insecurity: http://money.cnn.com/2011/11/28/news/economy/americans_insecurity/index.htm?iid=HP_LN. 

Happiness

From Matthieu Rucard's Happiness: "the joy of moving forward toward inner freedom and the loving kindness that radiates toward others."

Holiday Gift Giving

At this time of the year, remember to give within your means. These gifts will be the most cherished by recipients, and are gifts that you can live with.

Useful Guided Meditations from UC San Diego Health System

MBSR Guided Audio Exercises | UC San Diego Health System

The link above offers a series of guided meditations of varied length. Meditation can be a useful practice to quiet a busy mind, and help rediscover peace one moment at a time in our day.MBSR Guided Audio Exercises | UC San Diego Health System

Financial Planner Who Lost Home - worth reading

Follow this link to NY Times article online, published today. http://bucks.blogs.nytimes.com/2011/11/22/more-from-the-financial-pro-who-lost-his-home/?ref=business.

Domestic Violence Victim

Client shows her timidity in approaching me a male and being alone in my office. She has been beaten more than once by her husband. She had the strength to leave him, though he knows where she lives. She continues to live in fear. Her medical bills scream out their cause. I first probed her awareness of DMV resources and provided guidance on emergency contacts, shelters, and therapists. We then turned to her financial situation. If I can build adequate trust with client, I can be of help to her. I hope she affords me the opportunity.

Financial & emotional challenges

Too often, clients that I see are burdened by financial challenges complicated by challenges related to depression or anxiety.  To any of you who feel such strains, do your best to stay focused on the present, do not allow yourself to "write" a forbidding future and simply live on this fear. Do seek professional help to address both your financial and emotional stresses. This is a story in process with an excellent beginning. I was referred a client from another social service agency. Our initial meeting was about establishing rapport and trust and beginning to understand the clients' situation and goals. Our second meeting built on this baseline and began to develop strategies to address their situation. These clients are at risk of losing their home. Medical expenses and reduced iincome due to disability have contributed to financial challenges. All have substantive medical expenses. I referred the senior mother to Jefferson County's Office of Senior Citizen Services' SHIP program. THis program provides free help in reviewing the best fit medicare supplement policies and Part D prescription drug plans. Clients had listed their home for sale months ago with no success. The home was priced to break even in paying off their mortgage debt and cover selling expense with no regard to market forces. I helped clients understand the market must dictate price, and we explored short sale approval. We got an OK from their lender to proceed with a short sale listing. Potential prospects began visiting their home, and they have a contract acceptable to them and being submitted for approval to their lender! Their is still more work to do on other debts, but we are off to a great start. Keep the faith. Seek professional help as needed. Live in financial serenity.

“What would my daddy say?"

My work as a financial coach takes me deeply into the lives of my clients, financially, and through money more broadly. I will periodically post anonymous & confidential snippets of stories telling of my coaching experiences in hope that they prove of some value to you as reader, provide insights that enable you to become more financially serene.

A teary-eyed, embarrassed 56-year old client early in our meeting said, “what would my daddy say” about my predicament. This client is suffering from an as yet not fully diagnosed illness that caused her to leave her work and accept early retirement. She and her husband have been forced to move in with their daughter and share household expenses. Their trailer that they used to enjoy traveling in sits in her yard awaiting a person willing to buy it for what is still owed. Her modest expenses exceed their combined income by @ $1K per month.

As we spent time together this morning, I was able to share that her daddy would be proud that she found her way to our office to seek help. People have trouble talking about money difficulties. Her daddy would be proud that she raised a daughter in a way that allowed her daughter to welcome her into her home, and that they can co-exist comfortably in a shared household.

I see many clients every weekday. When they enter my office, they almost always arrive due to one of three challenges:

1.       They are earning less income than they have earned in the past due to downsizing, needing to take a lower-paying job, or being out of work,

2.       Due to illness and medical bills beyond their insurance and repayment capability,

3.       Due to being too generous a spirit in caring for family and others, and now finding themselves needing help.

Each of us can take care of our bodies to enhance the likelihood that we will live with good health. None of us can control our destiny and our health. My client’s daddy would suffer from her illness, and wish her a speedy, comfortable recovery. He would never blame her for becoming ill, and for facing financial trouble related to this difficulty.

My client left my office a few minutes ago. She had tears of joy for the time that we spent together this morning. She left with a plan and a vision of how to proceed. She knows how to reach me when it is time to speak again. She exits my office with hope that her next breath, her next steps will be lighter in this world.

She leaves my office with my spirits lifted, knowing how blessed I am to be here doing the work that I do.

An invitation

I welcome your questions, comments, feedback on any matters financial. I will respond to the best of my ability and welcome comments and input from others to enhance our collective wisdom. As is always true in matters financial, this is an interactive tool based on less than complete information about your specific circumstances, do use this blog to supplement your understanding of your financial situation, and do consult with appropriate financial and legal experts as appropriate.

A beginning

I am excited to launch this new blog, Financial Serenity Today. I work as a Financial Coach in the in the nonprofit sector. I bring the unique experience of 30-years in the field of finance with an MSW (Masters of Social Work). The goal in my work, the goal of this blog, is to help people become more at peace in their relationship to money, and thereby find greater peace, hope, well-being in their lives. This blog is not about how to build a road to riches, for wealth is not best measured in terms of net worth or income. Wealth is most truly achieved in living a life that is true to your spirit and within which you can achieve financial serenity. My hope is that this blog contributes in some small way to you on your journey. Stu