Home-Buddies

Great Post by Susan Kishner

I came across a great post by Susan Kishner over at PersonalFinanceBlogArticles.com. It talks about something I come across all the time when helping people with their mortgage foreclosure. Her article talks about one example of how you can end up in foreclosure when you think you are timely making your mortgage payments.

“…Do you know where your payments are going? Do you send in extra principle payments without verifying how they are applied? How many foreclosures could have been averted had borrowers been aware their mortgage was oversubscribed or their payments were not recorded accurately. Do you know if your assign report is untidy with errors? Remember, reports indicate that 79% are….”

One point is especially true. I like to encourage people to make extra principle payments to their mortgage (if possible), but it is extremely important to make sure it is immediately applied to your principle balance. In fact, many times if you do not attach a letter stating you want it applied immediately, they will hold it and apply it at the end of the year. And no, you will not earn interest on that money either.

Cliff Pape
Home-Buddies
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