New Jobs to Come to the Western Upstate of South Carolina

Western Upstate Area expected to gain jobs by 2014

 According to an article I saw in the Anderson Independent Newspaper on September 22, 2010, the South Carolina Department of Commerce says the Worklink Workforce Area of Anderson, Pickens and Oconee counties is expected to add more than 4,000 jobs by 2016. This will be great for our economy here in the Western Upstate of South Carolina!

According to the Commerce Department, the added jobs will include:
• Accountants and Auditors
• Dental hygienists
• Education administrators, postsecondary
• Educational, vocational and school counselors
• Elementary school teachers (except special education)
• Executive secretaries and administrative assistants
• Industrial engineering technicians
• Industrial engineers
• Kindergarten teachers (except special education)
• Medical and health services managers
• Middle school teachers (except special and vocational education)
• Pharmacists
• Physical therapists
• Police and sheriff’s patrol officers
• Secondary school teachers (except special and vocational education)
• Special education teachers (preschool, kindergarten and elementary school)
• Supervisors/managers of landscaping, lawn service and groundskeeping workers
“All of these occupations meet three specific criteria: a projected growth of more than 3 percent (by 2016), an increase of at least 25 jobs for each field during that period and a current average salary level of at least $33,720,” a survey report said.
Most new jobs will be associated with elementary school teachers, the report said.
The best-paid jobs are for pharmacists with an average current salary of $105,910.
Anderson County is expected to have more than 246 annual openings for pharmacy jobs.
The worst prospects in the area are expected to be in the textile industry and jobs for filing clerks. The South Carolina Employment and Workforce projections show textile knitting and weaving machine operators losing more than 2,300 jobs between 2006 and 2016.
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Market Update & Real Estate

Market Update 

Last week's reports gave us a complete picture of the housing market in August. Housing Starts rose 10.5% month-over-month to a 598,000 annual rate, well ahead of the expected 550,000 number. Building Permits, which reflect builder sentiment in the future, grew a more modest 1.8% month-over-month to a slightly smaller 569,000 annual rate. Thursday, Existing Home Sales came in UP 7.6% over July, at a 4.13 million annual rate. But let's remember, July was a record low, so this gain still left sales down 19% from August a year ago. The median price for Existing Homes, however, ticked up 0.8% year-over-year, as reported by the National Association of Realtors.

Friday saw New Home Sales for August come in unchanged from the previous month, meeting expectations at a 288,000 annual rate. The increases in Existing Home Sales and Housing Starts are welcome, as is the lack of a drop in New Home Sales. But sales are still at fairly weak levels. Observers feel that with the government tax credit, we had an artificial boost in home sales, so what followed was obviously an artificial low and we're now slowly climbing back toward normalcy.

>> Review of Last Week

FOUR IN A ROW... The stock market opened the week strongly, but then lost ground for three days before the bulls were back in control igniting a big rally on Friday, just shy of a 200 point gain for the day. This put stocks UP for the fourth straight week, with the Dow again nearing 11,000 and the broad-based S&P 500 hitting a four-month high.

It was a mixed bag of economic data once again. Housing numbers, covered above, were showing some signs of recovery, but then initial jobless claims grew to 465,000, higher than anticipated and indicating the labor market is still soft. The week ended with Durable Goods Orders down for August.

But the big event was the Federal Reserve meeting Tuesday. They left the fed funds rate unchanged as expected. They also kept policy statement language that says economic conditions are likely to keep the rate at exceptionally low levels for "an extended period." But they have now added that the Fed is prepared to provide additional accommodation if needed. Some think this is what sent stocks up, as investors felt they couldn't lose. If the economy improves, stocks will go up. If the economy stalls, the Fed will step in, so stocks will still go up! We'll see.

For the week, the Dow ended UP 2.4%, to 10860.26; the S&P 500 was UP 2.1%, to 1148.67; and the Nasdaq was UP 2.8%, to 2381.22.

Bonds were on the move up and down all week, and Friday was a down day as investors flocked to those rallying stocks. Yet for the week, the FNMA 30-year 4.0% bond we watch ended UP 8 basis points, closing at $102.17. Freddie Mac's weekly survey of national average mortgage rates reported fixed-rate mortgages not budging from their historically low levels. 

>> This Week’s Forecast

CONSUMERS, Q2 GDP, INFLATION... Economic reports on the consumer's September mindset bookend the week, with Consumer Confidence expected off a tad on Tuesday but Michigan Consumer Sentiment up a fraction come Friday.

Thursday features the third estimate of Q2 GDP numbers, but no change is expected from the prior reading, which showed a slower 1.6% growth rate. Friday's Personal Spending and Core PCE Prices for August should reveal inflation still well under control.

http://www.callnancylamar/ for all your real estate needs in the Upstate of South Carolina!

Market Update for Week of September 20th - Financially Speaking

Fannie Mae released a survey showing 70% of those polled in June and July feel now is a good time to buy a home. This is up from a 64% reading in January. At the same time, 83% of those surveyed think it's a bad time to sell, which isn't such a bad thing, since there's still plenty of inventory for buyers to choose from.

Another group of industry observers concluded that sales of existing homes hit bottom in July and will rebound in the fall. They based this on recent reports for purchase mortgage applications and pending home sales, which track signed purchase contracts for existing homes.

The fact remains, homes are now more affordable for more people than they've been in years. And today's historically low mortgage rates make monthly payments much easier to work into the family budget. Prices may have bottomed out indeed. The S&P/Case-Shiller Home Price Indexes show that nationally, home prices are 3.6% above levels a year ago. For buyers who expect to live in their home a while, many observers feel this is clearly a very smart time to purchase.

>> Review of Last Week

UP YET AGAIN... For investors on Wall Street, positive feelings continue to prevail over negative vibes and uncertainties, as stocks closed higher for the third week in a row. All the major market indexes were up, with the extra strength of the tech sector pushing the Nasdaq up well over 3%. In addition, all three indexes are now UP for the year.

Worrying investors, and everyone, were things like Thursday's report that the U.S. poverty rate was at a 16-year high. Other data showed that real median household income last year was basically unchanged over 2008. No surprise then that Friday's University of Michigan Consumer Sentiment Index came in at its lowest level since August a year ago. The day before, the Producer Price Index reported wholesale inflation a bit higher than anticipated, which got some analysts concerned that consumers might see price hikes next.

Those fears were quelled Friday with Consumer Price Index (CPI) readings that had inflation well under control at the retail level. And the 1.1% year-over-year gain in the CPI showed that those who feared deflation have nothing to worry about for now. Other encouraging signs included a rise in Industrial Production for August that met expectations and August Retail Sales that beat forecasts, evidence that consumers may be worried, but they're still spending!

For the week, the Dow ended UP 1.4%, to 10607.85; the S&P 500 was UP 1.4%, to 1125.59; and the Nasdaq was UP 3.3%, to 2315.61.

It was another mixed week in the bond market, but prices held up enough. The FNMA 30-year 4.0% bond we watch ended a mere 5 basis points ahead for the week, closing at $102.09. National average mortgage rates continue at historically low levels, though some observers do expect them to move up a little by the end of the year. 

>> This Week’s Forecast

WOO-HOO, HOUSING AND THE FED!... This week features our two favorite topics. The Fed's an easy forecast, as virtually no one breathing thinks they'll hike the Funds Rate at their meeting on Tuesday. As usual, however, their policy statement will bear scrutiny, as analysts look for signals that the rate could rise any time soon.

Tuesday's August Housing Starts should finally show a slight uptick in activity. August Building Permits are also expected to be up a little, even though home builders remain cautious. Some experts feel we're starting to turn the corner in housing, as a bit of growth is predicted in Thursday's August Existing Home Sales and Friday's August New Home Sales. 

>> The Week’s Economic Indicator Calendar

Weaker than expected economic data tends to send bond prices up and interest rates down, while positive data points to lower bond prices and rising loan rates. 

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BMW Hiring Could Lower Jobless Rate

September 5, 2010 BMW hiring could lower jobless rate Ripple effect could also create more jobs at other businesses in area By Jenny Munro Staff writer It's big. That's what economists are saying about BMW's plans to bring on another 500 full-time contract workers on top of the 500 the automaker announced in July. It's so big that Clemson University economist Bruce Yandle predicts the 1,000 new hires, and the so-called multiplier effect with more jobs at businesses that would benefit from the BMW action, would move the unemployment numbers significantly downward in Greenville and Spartanburg counties. This past week, BMW's Greer plant began producing the X3 sports activity vehicle, adding it to the plant's existing lineup of the X5 SAV and the X6 sports activity coupe. Most of the first 500 contract workers have been hired by MAU Inc., BMW's temp agency. The rest will be added shortly, with MAU planning Upstate job fairs this month. “As production of the new X3 gets underway and sales of the BMW X5 and X6 continue to do very well around the world, we see the need to expand our production team again to ensure we are well prepared to meet our forecasted demand,” said Josef Kerscher, BMW Manufacturing president. The company expects the addition of the new jobs to bring the total number of workers at the BMW plant to more than 7,000 on site. The total of the new hires “is large enough to have an effect on unemployment,” Yandle said, estimating that the BMW positions as well as jobs that support them could decrease the unemployment rate in Greenville and Spartanburg County by a little less than 1 point to a little more than 1 point. Studies by the Division of Research at the University of South Carolina's Moore School of Research suggest that over time the employment multiplier effect of BMW jobs is higher than is typical for the state's industries and services. A study by USC economists Douglas Woodward and Paulo Guimaraes in late 2008 found an employment multiplier effect of 4.3. That means that for every direct BMW job, 3.3 other jobs — from those at BMW suppliers to nearby restaurants — are created. According to the study, the 1,000 BMW jobs being created over the next few months would eventually generate 3,300 jobs elsewhere, primarily in the Upstate. That's the equivalent of a plant nearly the size of Boeing, although the jobs are dispersed and not all would have the same level of compensation. Woodward and Guimaraes said the multiplier was so large because of BMW's extensive regional supplier network and its relatively large direct payroll, primarily spent at local businesses. “This is great news for the Upstate and all of South Carolina,” said Mark Vitner, senior economist with Wells Fargo Economics Group. “The multiplier is probably variable, but would be close to that for full-time workers. Related businesses will boost hiring as their orders increase and order backlogs begin to increase.” Yandle is a little more conservative with his projections. “That's a pretty healthy multiplier,” he said, adding he is comfortable with a more conservative multiplier of one for one — 1,000 jobs at BMW could create an additional 1,000 jobs in the economy. Sujit M. CanagaRetna, senior fiscal analyst with the Council of State Governments, said it's difficult to come up with a multiplier effect because various economic models can be used and it depends on specific factors affecting each industry. In his opinion, he said, “It would be higher than one to one. According to studies I've seen of similar companies, 2 to 2.5” for every direct job is likely. Yandle said the BMW jobs themselves might bring the unemployment rate down by 0.4 percent. “That's not insignificant,” he said. But the multiplier effect would increase the effect and reach every sector of the economy. CanagaRetna agreed that the cumulative direct, indirect and induced jobs “will have a significant impact” on unemployment and the economy. “It's going to help the counties. As for the state, it probably won't move it much.” To lower statewide unemployment, South Carolina needs not only BMW jobs but new jobs from Boeing and Proterra, other large employers and small businesses that are rapidly growing, he said. BMW's news “is more than one day's good news,” Yandle said. “It's probably the largest single day of good news in the Upstate in years.” And it is great news for those who find jobs at BMW through MAU. Randy Hatcher, MAU president, said that 97 percent of the people the company has recently hired for the BMW jobs — which pay $15 an hour, with a $1 shift differential for night work — live in the Greenville, Spartanburg and Greer area. The companies are particularly interested in people who live in close proximity to the plant to reduce commuting costs and because they want to support the Upstate. He said that “most of them have some type of exposure to a manufacturing environment,” adding that MAU is searching for candidates with a high school diploma or GED and at least a year's experience in manufacturing. Some employees have considerably more experience, up in the 10 to 15-year range, he said. But “these are entry-level positions,” he said. “We are looking for honest, hard-working candidates” with some manufacturing experience, so they understand the job and know they will be on their feet all day. In addition, MAU is hiring more highly skilled forklift operators, who must have at least six months experience with forklifts in the past five years to be considered, he said. “We are able to find those people,” he said, but it's more difficult than finding production workers. “So far, we're really pleased” with the candidates and those hired, Hatcher said. “They're not just highly qualified candidates. They seem to be really great on the job.” Bobby Hitt, BMW Manufacturing spokesman, has said the company is pleased with the quality of MAU employees, who receive about three weeks of training with BMW. “That's the validation,” Hatcher said of Hitt's comments. The effect of BMW's announcement is widespread, economists said. “The ripples that go out touch every sector of the economy. It touches the suppliers, but it also touches the restaurants, the medical doctors and hospitals, the dentists, the florists,” Yandle said. And the hiring is important for another reason, he said. “This doesn't have anything to do with stimulus,” Yandle said. “This is the 90 percent economy, the real economy. We earn our livings in the real economy.” He said he expects this type of “real news” will reduce the pervasive uncertainty that hovers over the economy, not just in the Upstate but in South Carolina and the nation. Fifty to 60 percent of people responding to polls asking if their families are better off than they were a year ago express caution about their circumstances, he said. But “this is the real economy resulting in real jobs,” he said. “It's not a bailout” by the government, but “it may bail all of us out.” “There is a real opportunity for a takeoff of the economy,” CanagaRetna said, citing not only manufacturing growth but South Carolina's place in the emerging hydrogen economy. BMW's interest in hydrogen technology is a plus for that growing economy. The good news from the automotive industry is not confined to South Carolina, he said. Toyota is beginning to hire for its Mississippi plant. Volkswagen is close to hiring in Tennessee. “These are good indications the auto sector in the South is really leading the region's growth,” he said. “It's a real engine” producing “high-tech, high-wage jobs.” Over the years since BMW announced a South Carolina operation in 1992, the company has invested $4.6 billion in the state. Its most recent investment is a $750 million expansion, adding a new assembly plant for X3 production and enlarging the paint shop. This expansion — the largest investment in BMW Manufacturing's history — will add 1.5 million square feet to the site and provide the capacity to produce at least 240,000 vehicles annually by 2012. In 2008 when the USC study was conducted, BMW's construction activity also supported about 5,000 direct and indirect jobs. This occurred at a time when construction employment in South Carolina was plummeting. BMW's importance to the region comes not only from employment and investment. It has partnered with Clemson University at the International Center for Automotive Research, building its Information Technology Research Center there. That partnership, plus its interest in hydrogen technology, is helping move South Carolina toward a more knowledge-based economy. http://www.callnancylamar.com/

Last Week at a Glance - Financially Speaking

"ACTIONS SPEAK LOUDER THAN WORDS." Despite the markets being closed last Monday for Labor Day, there was plenty of market action... and plenty of words from the Fed. So what happened, and what was said? Read on for details.
After the recent 4-month rally in the Bond markets, which has led to some of the best home loan rates in history, money has started shifting over to the Stock market. Why has this happened? Some economic reports have been better than expected in the past few weeks... such as the Jobs Report for August and Consumer Confidence. While that’s great news, it’s important to remember that good economic news - or better than expected news - often causes investors to move their money out of the safe haven of Bonds to Stocks in the hopes of taking advantage of any gains.

So why does this behavior impact home loan rates? When the economy appears strong or starts to improve, and investors move their money from the safe haven of Bonds to Stocks, a decreased demand for Bonds means that Bond prices move lower. And when Bond prices move lower, it means that Bond yields - and consequently home loan rates - move higher.
In fact, given the recent better than expected economic news, St. Louis Federal Reserve Bank President James Bullard last week shifted away from previous comments he had made about deflation and said that while he sees a slowdown in the economy for the second half of this year, he predicts a pick up in 2011. He also said that the Unemployment Rate will likely fall next year, and business spending should start to rebound.

While continued improvements to our economy are good news, one big impact is that home loan rates will start to increase. And when home loan rates start to increase, they tend to increase quickly. That being said, while home loan rates ended the week about .125-.25 percent worse than where they began, they are still near some of the best levels we have ever seen!

If you or anyone you know would like to learn more about taking advantage of historically low home loan rates while they remain so, please don’t hesitate to call or email me as soon as possible.

One of the most important actions we can take this time of year is to remember all those who were injured, lost their lives, or lost loved ones on September 11, 2001. May we never forget those we lost, and may we thank those who work everyday to keep our families safe and protected.
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Review of Last Week - Financially Speaking

Review of Last Week


POSITIVE WITH NEGATIVES... The U.S. economy keeps delivering mixed signals, but this week investors on Wall Street let a positive vibe drive the proceedings. Stocks went up four days in a row, which ended with a big rally Friday driven by an August Employment report that was by no means great, but better than the downbeat readings that were expected. All three major stock indexes ended up for the week with the Dow now up for the year.
There were notable negatives that continue to show the pace of recovery has slowed. The ISM Services Index came in below estimates indicating modest growth in the non-manufacturing sector. Consumer inflation was UP 0.2% in July and UP 1.5% over a year ago. This is still within the Fed's acceptable range, although some economists think inflation should start rising noticeably next year. Personal income was up 0.2% for July, but this was below what the consensus expected. Finally, final Q2 Productivity dropped to a 1.8% annual rate, a bigger dip than previously estimated.

Positive signs included the ISM Manufacturing index, reported up for July instead of down as expected. August Consumer Confidence also beat expectations. But the big news came with Friday's Employment Report. The U.S. economy lost 54,000 nonfarm jobs in August, far less than the 100,000+ job losses expected. The private sector added 67,000 jobs, while upward revisions to the two prior months took the net gain to 133,000 jobs. Average hourly earnings were UP 0.3% for the month and UP 1.9% this year. But unemployment ticked up to 9.6%, due to an increase in the work force. So even though the report played well on Wall Street, it didn't on Main Street.

For the week, the Dow ended UP 2.9%, to 10447.93; the S&P 500 was UP 3.7%, to 1104.51; and the Nasdaq was UP 3.7%, to 2233.75.


Bond prices held up for most of the week, but Friday's jobs report surprise kept things in check. The FNMA 30-year 4.0% bond we watch ended UP 7 basis points for the week, closing at $102.27. Again, Freddie Mac's weekly survey showed national average fixed rates for conforming mortgages at historic low levels making now an excellent time to invest in real estate. Call me with all your real estate needs.

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Things to Consider about Moving Verses Remodeling a Home

Moving can be a big job, but it can provide a number of benefits. Remodeling, on the other hand, can also be challenging but may be all you need to help your current home suit your needs. If you’re on the fence and would like some guidance, then consider the factors provided below. Decide the importance of each one to help determine whether a move is right for you!


1. The size of your family has changed. The most common reason people move is because of the size of their current home. Many young couples have purchased a cozy two- or three-bedroom, 1,000-square foot home that suits their situation perfectly. The home has a master bedroom, a guest bedroom, and possibly a home office. A single living area with couches and an entertainment center provides the couple with ample space for the two of them and their visitors. As they start a family, the first child moves into the guest bedroom, and toys soon take over the living area. The perfect house for two becomes too small for three or more. In our current Buyers Market, you can usually move to a larger home for less than you can add on to your current home.

2. You want better schools. Unless your children attend private school, the location of your home usually dictates which schools your children will attend. This is great when it comes to building a sense of community, as children can walk or bike to school together. Having a school nearby can also cut down on travel time for dropping off and picking up your children.

3. Your commute is a killer. Many people choose to move because they have changed jobs. Be it out of state or in another community, most people will only commute so far. If you want to have a shorter commute, then moving may be your only answer.

4. You don't like remodeling. Remodeling is not for everyone. No matter how it’s accomplished, one thing is unavoidable: the inconvenience. It can be as little as not using your kitchen for a day while it is being painted or as much as moving out for six months while some major work is done. For some, any inconvenience is too much, so a move may be the way to go.



5. You don't like your neighborhood. Each neighborhood has its own characteristics. Some have big yards; some have small. Many have sidewalks and streetlights while others do not. Some neighborhoods have kids playing on the street all day long and friendly neighbors stopping by to chat every day. In other neighborhoods, people keep to themselves and rarely wave as they drive by each other on the way to work. As much as we all would like to change some features of our neighborhood, many are out of our control. If your neighborhood doesn't meet your needs, a move may be the only solution.

6. Your home has a bad floor plan. If you don’t like the layout of your home, then moving could be the right solution. If you’re seeking a kitchen in front and a family room that faces south, but your home has the kitchen in back and the family room facing north, a remodel may be too expensive to be practical. Due to lot size, building codes, or physical barriers, some homes may not lend themselves to remodeling the way you want. Building codes can limit the type and size of additions as well as their appearance.

7. Your yard leaves much to be desired. For many, the yard is an integral part of the house. A yard is land to call your own, whether it’s a place to plant flowers or vegetables, or an expanse of grass that you take pride in keeping green and manicured all summer long. The question is, how big of a yard do you want and is your current one adequate?

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Alternatives to Foreclosure

The foreclosure process takes anywhere from two to 12 months, so if you're in danger of losing your home, you do have time to seek alternatives.







A record high 2.8 million properties were hit with foreclosure notices in 2009. That’s the bad news. The good news is: About two-thirds of notices don’t result in actual foreclosures, says Doug Robinson of NeighborWorks, a nonprofit group that offers foreclosure counseling.



Many homeowners find alternatives to foreclosure by negotiating with lenders, often with the help of foreclosure counselors. If you’re facing foreclosure, call your lender right now to determine your options, which can include loan modification, forbearance, or a short sale.







Foreclosure process takes time

The entire foreclosure process can take anywhere from two to 12 months, depending on how fast your lender acts and where you live. Some states allow a nonjudicial process that’s speedier, while others require time-consuming judicial proceedings.



Once you miss at least one mortgage payment, the steps leading up to an actual foreclosure sale can include demand letters, notices of default, a recorded notice of foreclosure, publication of the debt, and the scheduling of a foreclosure auction. Even when an auction is scheduled, however, it may never occur, or it may occur but a qualified buyer doesn’t materialize.



Bottom line: Foreclosure can be a long slog, which gives you enough time to come up with an alternative. Meantime, if your goal is to salvage your home, think about keeping up with payments for homeowners insurance and property taxes. Otherwise, you could compound your problems by getting hit with an uncovered casualty loss or liability suit, or tax liens.



Read the fine print

Start by reviewing all correspondence you’ve received from your lender. The letters and phone calls you got probably began once you were 30 days past due. Also review your mortgage documents, which should outline what steps your lender can take. For instance, is there a “power of sale” clause that authorizes the sale of your home to pay off a mortgage after you miss payments?



Determine the specific foreclosure laws for your state. What’s the timeline? Do you have “right of redemption,” essentially a grace period in which you can reverse a foreclosure? Are deficiency judgments that hold you responsible for the difference between what your home sells for and your loan’s outstanding balance allowed? Get answers.



Pick up the phone

Don’t give up because you missed a mortgage payment or two and received a notice of default. Foreclosure isn’t a foregone conclusion, but it’s heading in that direction if you don’t call your lender. Dial the number on your mortgage statement, and ask for the Loss Mitigation Department. You might stay on hold for a while, but don’t hang up. Once you do get someone on the line, take notes and record names.



The next call should be to a foreclosure avoidance counselor approved by the U.S. Department of Housing and Urban Development. One of these counselors can, free of charge, explain your state’s foreclosure laws, discuss alternatives to foreclosure, help you organize financial documents, and even represent you in negotiations with your lender. Be wary of unsolicited offers of help, since foreclosure rescue scams are common.



Be sure to let your lender know that you’re working with a counselor. Not only does it demonstrate your resolve, but according to NeighborWorks, homeowners who receive foreclosure counseling are 1.6 times more likely to avoid losing their homes than those who don’t. Homeowners who receive loan modifications with the help of a counselor also reduce monthly mortgage payments by $454 more than homeowners who receive a modification without the aid of a counselor.



Lender alternatives to foreclosure

Hope Now, an alliance of mortgage companies and housing counselors, can aid homeowners facing foreclosure. A self-assessment tool will give you an idea whether you might be eligible for help from your lender, and there are direct links to HUD-approved counseling agencies and lenders’ foreclosure-prevention programs.



There are alternatives to foreclosure that your lender might accept. The most attractive option that’ll allow you to keep your home is a loan modification that reduces your monthly payment. A modification can entail lowering the interest rate, changing a loan from an adjustable rate to a fixed rate, extending the term of a loan, or eliminating past-due balances. Another option, forbearance, can temporarily suspend payments, though the amount will likely be tacked on to the end of the loan.



If you’re unable to make even reduced payments, and assuming a conventional sale isn’t possible, then it may be best to turn your home over to your lender before a foreclosure is completed. A completed foreclosure can decimate a credit score, which will make it hard not only to purchase another home someday, but also to rent a home in the immediate future.



Your lender can approve a short sale, in which the proceeds are less than what’s still owed on your mortgage. A deed-in-lieu of foreclosure, which amounts to handing over your keys to your lender, is another possibility. The earlier you begin talks with your lender, the more likelihood of success.



Explore government programs

The federal government’s Making Home Affordable program offers two options: loan modification and refinancing. A self-assessment will indicate which option might be right for you, but you need to apply for the program through your lender. A Making Home Affordable loan modification requires a three-month trial period before it can become permanent.



Fannie Mae and Freddie Mac have their own foreclosure-prevention programs as well. Check to determine if either Fannie or Freddie owns your mortgage. Present this information to your lender and your counselor. Fannie and Freddie also have rental programs under which former owners can remain in recently foreclosed homes on a month-to-month basis.



The federal Home Affordable Foreclosure Alternatives program, which takes full effect in April 2010, offers lenders financial incentives to approve short sales and deeds-in-lieu of foreclosure. It also provides $3,000 in relocation assistance to borrowers. Again, talk to your lender and counselor.



Jerry DeMuth has written about mortgages and other financial issues for more than two decades for trade publications, major newspapers, and consumer magazines. His writing has received four awards and has been included in eight non-fiction books.

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