Appleton Wisconsin Mortgage & Real Estate Resources: November 2008

Did you know that identity theft often occurs when you are obtaining your Government Free Annual Credit Report? Therefore, you must protect yourself before you become another victim of America's fastest rising crime.

 So How Is Identity Stolen With The "Free Credit Report" Scam?

 1.  "Phishing" is the name of one of the primary scams. It has become increasingly popular. It happens when you receive emails requesting your contact and social security number from individuals pretending they are a legitimate company.  For instance, your bank will never request your social security number or private information so that they can verify your account or check your credit.

2.  Another popular way is to go to a website advertising a "Free Credit Report."  It asks you for your name and social security number which you happily provide.  Well guess what..... If it is a fake website, you have just had your identity stolen. 

In either case, you may actually even receive a copy of your credit report, because they forward your information to a real website which in turn sends you a free copy of your report.  In reality, the identity thieves have started your nightmare and you don't even know it.  This is a very good reason of why you should NEVER put your personal information into a form from an email.  If it is a link from an email, don't share your info either.

 Here are some obvious signs of Internet Identity Theft 

• Statements and bills are coming late or not at all to your home
• Collection agencies or creditors will contact you about accounts you do not have or charges you have not made.
• There are transfers or withdrawals that have not been made by you on your financial account statements
• You have been denied credit or are being offered unfavorable credit terms (i.e. a high interest rate with no underlying explanation)
• You are getting letters or calls from businesses or debt collectors about products or services that you did not purchase.

 Identity Theft: How bad is it?

In the past year, 7 million people became identity theft victims.  The average loss to an American is thirty hours of their time and over $500 in financial losses.

In the last year, total personal losses have been over five billion (with a "b") dollars.

On average, one out of every seventy-nine shopping sprees is one involving stolen identity.

 What you should do if you become the victim of Identity Theft:

1. First, alert the fraud department of the three agencies which monitor credit. Tell them you are a victim of identity theft and ask them to put an alert on your credit information. (Unfortunately, you may be required to pay for this service.)
2. In addition, get your credit report from these three large credit bureaus Experian, Equifax and TransUnion and closely scrutinize your credit reports looking for credit cards you did not order, inquiries you did not make and other suspicious activities.
3. Next report your case, including all the details to your local police department.
4. To report identity theft to the central department of the American government for fraud protection, call the toll-free hot-line at 1-877-IDTHEFT.
5. Close all accounts on the credit reports that you believe were opened fraudulently utilizing your name.
6. If your bank or checking accounts, or even your ATM card, have been compromised then shut those accounts down as soon as possible.
7. Your local postal inspector should be alerted, as they undoubtedly have used your personal address info, this address needs to be immediately terminated and you should create a new postal box.
8. Contact the Social Security Administration to make sure that your name and earnings are all correct.  

When trying to get a credit report it is important that you know the possible scams and how to avoid them.  You can receive a free credit report today by emailing me at gtanvas@patriotms.com - I will be happy get you pointed in the right direction and help you avoid an identity theft nightmare.

Gwenn Tanvas of Patriot Mortgage, is a nationally recognized expert specializing in helping release her clients from the "credit prison" that too many people find themselves in.  When you or one of your friends find yourself needing real answers and real solutions to credit issues, you can confidentially contact her at 920-560-5606 or  gtanvas@patriotms.com - You can find more tips and information at http://www.wisconsinloantips.com

When the House Is Not Selling

Remember . . .  "Presentation is Everything!"

As a private seller, you have to make sure that your home is presentable to a potential buyer, and keep in mind that, in a competitive market with more inventory than we've seen in some time, Presentation is Everything!

By eliminating points the potential buyer may find fault with and by bringing out the positive amenities, you are more likely to sell your home and get the price you are asking for. Here are just a few tip to help support your efforts.   

1. Let There Be Light. Buy some 100­watt bulbs to brighten the rooms, and open curtains or blinds to let light in. Unless a window faces a brick wall or some type of eyesore, open the drapes!

2. Garage, Not Garbage. Have a garage sale to clean out the clutter and make the garage more spacious. You will be moving and will need to start organizing anyway! So why wait until the last miinute? Clean up oil spots in the garage or carport with a good cleanser to remove that lived-in appearance. The home may not be brand new, but it is new to the potential buyer.

3.Make Scents. Get a nice potpourri air freshener, or keep some refrigerated cookie dough on hand to throw in the oven when a prospect is coming over. Make the house smell like a home.

4.Paint­relief. Consider re­painting any areas that need to be touched up, especially the front door and entryway, and any appliances that are showing their age.
5.Power Plants. Trim down any jungles outside, especially if they cover the house. Get rid of any half­dead houseplants. Water the lawns briefly before any visit, and keep lawns mowed and edged. We are getting into winter here in Wisconsin, so be sure to deadhead plants and prepare a nice winter scape in the yard. Also, bird feeders stratigically place in yard bring a warm welcome to visitors.

6.The Price is Right. Price may be a sensitive issue, but with increased inventories and declining home values in many neighborhoods, keep in mind that every shopper in a buyers market is determoned to get the best deal possible. This is a great time to compare your house with others on the market in the same area. The price is and presentation of your home are the two things that will sell your home faster than anything else.

7.The World is Your Stage. Professional staging can help to showcase the best side of a home, create more interest, and get you top dollar. With increased inventories, staging could provide the competitive edge you need. If you interested in a free local "Home Staging" workshop, please shoot us an email. We are in the process of setting several dates. email: gwennt@century.net and we will put you on our notification list for upcoming workshops.

These tips were taken from our Consumer Guide entitled: 33 Ways to Sell Your Home Fast!, a special guide we have available for FREE on our website - To obtain a copy of this Guide, please follow this link and request a copy today! Give Me The Free Guide

On Tuesday, November 11, we will observe Veterans Day. But did you know that the whole week has been designated National Veterans Awareness Week? What a wonderful opportunity to honor America's veterans for their patriotism, love of the country, and commitment to serve and sacrifice for the common good of the USA.

We at Patriot Mortgage have put toghther a special project in Honor of the Men and Woman serving our great country. Patriot Mortgage, together with Camera Corner and Evans Title of Green Bay are setting up video studios in each Patriot Mortgage Office (Appleton, Green Bay & Oshkosh), to allow family and friends to record a free video postcard to be sent to their loved on serving our country. For more information, please visit my website http://www.wisconsinloantips.com/vetday08.htm

Veterans Day dates back to November 11, 1918 when the Germans signed the Armistice, an order to cease fire, and World War I ended. Originally Veterans Day was known as "Armistice Day", but in 1953, the name was changed to Veterans Day, so that the many other military veterans could be honored and acknowledged as well.

One of the most recognized Veterans Day ceremonies is held at Arlington National Cemetery, which draws hundreds, if not thousands of visitors. Most visitors to the cemetery make a point to stop and visit the "Tomb of the Unknown Soldier." This shrine is in honor of the many thousands of veterans who gave their lives in defense of our nation.

The Tomb of the Unknown Soldier is one of the most visited sites by Americans, prominent dignitaries, and individuals visiting from foreign lands. The site is guarded 24 hours a day, 365 days a year by Tomb Guard Sentinels. All Sentinels are volunteers and are considered to be the best of the 3rd US Infantry - the "Old Guard". And becoming a Sentinel is not just about volunteering time. Each soldier has to meet very specific qualifications. The soldier must be in superb physical condition, possess an exemplary military record, and meet certain height, weight, and build requirements. The soldier must also commit to giving up drinking and swearing...for life!

Once the basic requirements have been met, the training is broken down into three stages; temporary duty, low-visibility walks, and high-visibility walks. To earn a "walk" the guards must memorize a seven-page document about the history of Arlington National Cemetery, and be able to recite the document verbatim. A "walk" occurs between guard changes.

And when a soldier becomes a Sentinel and earns a "walk" it certainly is not an average walk. Each step, hesitation, and placement of firearm is precisely calculated and has a specific symbolic reference. Each guard takes 21 steps across the Tomb, stops on the 21st step, turns and faces the tomb for 21 seconds, then steps off for another 21-step walk down the mat. Both the 21 steps and the 21-second hesitation symbolize the "twenty-one gun salute", the highest honor given any military or foreign dignitary. After each about face, the Sentinel changes the placement of the rifle to the shoulder closest to the visitors to signify that the Sentinel stands between the Tomb and any possible threat. The Sentinel then repeats this until the guard changes.

The changing of the guard occurs every hour on the hour from October 1 to March 31 and every half hour from April 1 to September 30. The tomb has been guarded every minute of every day since 1937, even during the storms and hurricanes. Each Sentinel commits two years of his life to guard the tomb, and is given a wreath pin signifying they served as a Sentinel. Presently, there are only 400 wreath pins worn.

In 5th grade my father had meetings in Washington DC and the entire family took a two week trip to the nations capitol. I can remember that trip like it was yesterday! It is quite interesting, as my older siblings do not have the vivid memories that I hold. I suppost it was my age. None the less, seeing the  changing of the guard at age 10 was most impressive and even at the your age of 10, I felt the honor.

As we pause and pay tribute to America's veterans, we must honor them with our gratitude, knowing that they served and sacrificed to protect and preserve the values of this great nation...and continue to do so today.

It is sad to say but our society seems to decide our value by our credit line or credit worthiness. With a good credit report, it is likely you will participate in and enjoy many of the finer things in life. However if your credit report is "challenged", you probably will not.

Few creditors, if any, will extend individuals with bad marks on their credit history loan options.

But what if you had no other option? What if you were forced to choose between buying food, and making the payment on your car? What if you were prevented from making timely payments by a lack of employment, a medical emergency or some other personal crisis? Should just one late payment result in up to ten years of being punished by having to pay higher rates and fees?

One wonders why this system is allowed to operate as it does. In a court of law, judges will give you a chance to defend yourself before deciding your fate - this is one very important difference not to forget. In America, we are guaranteed the right to face our accusers before judgment can be passed. With your credit record, however, this is completely untrue.  The credit bureaus have the final say on your credit report.

Unbeknownst to us, creditors and credit bureaus have been trading information about us for a long time. They trade your personal information (name, address, social security number), they trade your private information (who pulled your credit, what you purchase, and the terms of your loan) and they trade your painful information (late payments, liens, bankruptcies.)  Much of it amounts to hearsay, which can end up bringing you financial hardship.

Under the current credit system, your credit file is stamped with negative and damaging information, whether it is yours or not, before you have the opportunity to defend yourself.  Ironically, YOU are expected to prove whether negative or erroneous information on your report is wrong.  Remember, the credit bureaus will assume that you are guilty unless you can be proven innocent. This is a direct contrast to the common American principle that one is innocent until proven guilty. Why do the credit bureaus not offer us this same courtesy? It doesn't seem fair that we don't have any chance to defend ourselves before negative information is put on our report. The truth is that consumer rights would decrease the credit bureaus profits.

Credit bureaus exist to make a profit and their product is your credit file. Credit bureaus sell your credit information, which their buyer's (credit card companies, etc...) rarely question.   Creditors, in return, give the bureaus whatever data they may have collected about you.  Mistakes, however, are frequent.  It doesn't matter if the credit report is right or not, it will be hard and expensive for you to prove that your information is false.

What can you do about it?

Every person living in a democratic nation is entitled to a defense.  Consumers have the legal right to retain an attorney to defend themselves against unfair accusations. Instead of you being forced to disprove negative items, the credit bureaus should have to provide information verifying the accuracy of their report. The law and Congress are in agreement.   Because of the unfair nature in which your information is collected and distributed, credit repair is both a legal and ethical right of every American.

You will probably need more than just a standard form letter to corroborate your credit worthiness. This is where our preferred attorneys come into the picture.  Just as you may choose not to repair your own vehicle, you do not have to repair your own credit either.  Using an attorney will strengthen your chances of having negative items removed from your credit report.  After all, are you more likely to act if you get a letter from an attorney or a letter from an ordinary person?

Our attorneys question everything.  If the credit bureaus issue statements that items have been verified, they are not accepted and our preferred attorneys will continue to press for validation of all negative items.

Credit bureaus have been in the driver's seat for too long.  They continue winning unless you take action, so don't put it off.  If you are tired of being in "Credit Prison", contact me now for solutions.

Gwenn Tanvas, Certified Mortgage Planner in Appleton, WI , specializes in helping release her clients from the "credit prison" that too many people find themselves in.  If you, a friend, a family member or a colleague find yourself needing real answers and real solutions to credit issues, you can confidentially contact her at 920-560-5606 or at gwennt@centurytel.net or on the web at http://www.wisconsinloantips.com.

SHOPPING AROUND?

HERE'S THE INSIDE SCOOP ON HOW TO DO IT RIGHT!

First: make sure you are working with an experienced, professional loan officer. The largest financial transaction of your life is far too important to place into the hands of someone who is not capable of advising you properly and troubleshooting the issues that may arise along the way. But how can you tell?

Here are FOUR SIMPLE QUESTIONS YOUR LENDER ABSOLUTELY MUST BE ABLE TO ANSWER CORRECTLY. IF THEY DO NOT KNOW THE ANSWERS...RUN...DON'T WALK... RUN...TO A LENDER THAT DOES!

1) What are mortgage interest rates based on? (The only correct answer is Mortgage Backed Securities or Mortgage Bonds, NOT the 10-year Treasury Note. While the 10-year Treasury Note sometimes trends in the same direction as Mortgage Bonds, it is not unusual to see them move in completely opposite directions. DO NOT work with a lender who has their eyes on the wrong indicators.)

2) What is the next Economic Report or event that could cause interest rate movement? (A professional lender will have this at their fingertips. For an up-to-date calendar of weekly economic reports and events that may cause rates to fluctuate, email gtanvas@patriotms.com and request a copy of our weekly newsletter, let us know if you want to be added to my weekly distribution list)

3) When Bernanke and the Fed "change rates", what does this mean... and what impact does this have on mortgage interest rates? (The answer may surprise you. When the Fed makes a move, they can change a rate called the "Fed Funds Rate" or "Discount Rate". These are both very short- term rates that impact credit cards, Home Equity credit lines, auto loans and the like. On the day of the Fed move, Mortgage rates most often will actually move in the opposite direction as the Fed change. This is due to the dynamics within the financial markets in response to inflation. For more information and explanation, just give us a call).

4) Do you have access to live, real time, mortgage bond quotes? (If a lender cannot explain how Mortgage Bonds and interest rates are moving in real time and warn you in advance of a costly intra-day price change, you are talking with someone who is still reading yesterday's newspaper, and probably not a professional with whom to entrust your home mortgage financing. Would you work with a stockbroker who is only able to grab yesterday's paper to tell you how a stock traded yesterday, but had no idea what the movement looks like at the present time and what market conditions could cause changes in the near future? No way!)

Be smart... Ask questions... Get answers!

More than likely, this is one of the largest and most important financial transactions you will ever make. You might do this only four or five times in your entire life... but we do this every single day. It's your home and your future. It's our profession and our passion. We're ready to work for your best interest.

SHOPPING... PART 2

Once you are satisfied that you are working with a top-quality professional mortgage advisor, here are the rules and secrets you must know to "shop" effectively.

First, IF IT SEEMS TO GOOD TO BE TRUE, IT PROBABLY IS. But you didn't really need us to tell you that, did you? Mortgage money and interest rates all come from the same places, and if something sounds really unbelievable, better ask a few more questions and find the hook. Is there a prepayment penalty? If the rate seems incredible, are there extra fees? What is the length of the lock-in? If fees are discounted, is it built into a higher interest rate?

Second, YOU GET WHAT YOU PAY FOR. If you are looking for the cheapest deal out there, understand that you are placing a hugely important process into the hands of the lowest bidder. Best case, expect very little advice, experience and personal service. Worst case, expect that you may not close at all. All too often, you don't know until it's too late that cheapest isn't BEST. But if you want the cheapest quote - head on out to the Internet, and we wish you good luck. Just remember that if you've heard any horror stories from family members, friends or coworkers about missed closing dates, or big surprise changes at the last minute on interest rate or costs...these are often due to working with discount or internet lenders who may have a serious lack of experience. Most importantly, remember that the cheapest rate on the wrong strategy can cost you thousands more in the long run. This is the largest financial transaction most people will make in their lifetime. That being said - we are not the cheapest. Of course our rates and costs are very competitive, but we have also invested in the systems and team we need to ensure the top quality experience that you deserve.

Third, MAKE CORRECT COMPARISONS. When looking at estimates, don't simply look at the bottom line. You absolutely must compare lender fees to lender fees, as these are the only ones that the lender controls. And make sure lender fees are not "hidden" down amongst the title or state fees. A lender is responsible for quoting other fees involved with a mortgage loan, but since they are third party fees - they are often under-quoted up front by a lender to make their bottom line appear lower, since they know that many consumers are not educated to NOT simply look at the bottom line! APR? Easily manipulated as well, and worthless as a tool of comparison.

Fourth, UNDERSTAND THAT INTEREST RATES AND CLOSING COSTS GO HAND IN HAND. This means that you can have any interest rate that you want - but you may pay more in costs if the rate is lower than the norm. On the other hand, you can pay discounted fees, reduced fees, or even no fees at all - but understand that this comes at the expense of a higher interest rate. Either of these balances might be right for you, or perhaps somewhere in between. It all depends on what your financial goals are. A professional lender will be able to offer the best advice and options in terms of the balance between interest rate and closing costs that correctly fits your personal goals.

Fifth, UNDERSTAND THAT INTEREST RATES CAN CHANGE DAILY, EVEN HOURLY. This means that if you are comparing lender rates and fees - this is a moving target on an hourly basis. For example, if you have two lenders that you just can't decide between and want a quote from each - you must get this quote at the exact same time on the exact same day with the exact same terms or it will not be an accurate comparison. You also must know the length of the lock you are looking for, since longer rate locks typically have slightly higher rates.

Again, our advice to you is to be smart. Ask questions. Get answers.

I hope you have found this information helpful - I wish you much success - If you have any questions, I would be more than happy to help!

Gwenn Tanvas
Certified Mortgage Planning Specialists

Finally, a local professional FSBO service available to home sellers and in the Appleton, Oshkosh and Green Bay areas backed by professionals. FSBOAvenue.com was launched as service of NEW Lifesytle Lending to support the comminities we have served over the years.

We understand the importance of service. We have teamed up with professionals throughout the Greater Fox Valley to provide the tools needed for a successful sale.  

FSBO Avenue provides sellers with the following:

• Professional large yard sign with FSBO Avenue logo and web address, rider with your contact number, rider with #800 "talking house" number, and lender rider. Free local delivery and installation/removal of sign. 
  
• Investor Special - List all properties - No Extra Charge!
  
• 24-hour #800 "talking house" number for added lead generation. All calls will be followed up on a daily basis.
  
• 24 hour online access to your listing. You can edit your information any time you would like - day or night.
  
• Specification sheets, lending options flyer and guest sign-in sheet for open houses.
  
• Access to professionals for related services in the home buying/selling process. Including: Real estate agents, Lenders, Title companies, Appraisers, Home inspectors, Stagers, Financial planners, Lawyers.
  
• Each and every listing will be uploaded to www.byownermls.com www.oodle.com and www.vast.com
  

THIS SERVICE IS FREE - GO ONLINE TODAY http://www.fsboavenue.com

Ask for Gwenn Tanvas - She will setup a special program to suit your needs.

If there was any doubt left that the troubled US financial and credit markets are in full crisis mode, the historic events of the past few months easily erased it. You've seen the headlines. You've heard the stories, but what does it all mean to you and your mortgage? Let us take a closer look at a September to remember and what it means to you - no jargon, no politics, just the facts.

What a Difference a Month Makes
September was a historic month in the financial markets. What started a year earlier as the subprime mortgage collapse had morphed into the perfect financial storm that wiped out some of the biggest financial firms on Wall Street. There was a general and genuine concern that the financial system was coming apart and could virtually shut down.

First, the Feds took over Fannie Mae and Freddie Mac, two government-sponsored mortgage giants that own or guarantee about five trillion dollars in home loans, or nearly half of the total US mortgage market.

Then Lehman Brothers, a prominent securities firm founded in 1850, filed for bankruptcy.

Bank of America, which earlier this year acquired Countrywide, acquired Merrill Lynch, another prominent financial firm.

The Feds were then forced to bail out insurance giant American International Group (AIG), the largest insurance company in America, which needed some $70 billion just to stay afloat.

By the end of the month, JP Morgan Chase, which bought out Bears Sterns in June, would also acquire Washington Mutual and, in a similar move, Citigroup would acquire Wachovia.

In the end, amidst the worst September in the financial markets since 2001, each of these prominent companies had failed to secure investor confidence as liquidity concerns forced their stock prices to levels that ultimately led to their demise, despite a major effort by the government and other central banks around the world to offer unprecedented financial support.

Throughout the month of September, the Federal Reserve not only injected billions into the financial market, the US Treasury was forced to guarantee nearly $2 trillion in money market mutual fund assets. The European Central Bank, Swiss National Bank, and Bank of England also pitched in a combined $90 billion in cash infusions.

Banks and Wall Street firms had essentially stopped loaning money to one another in recent weeks. That choked off the money being made available on Main Street in the form of mortgage loans, business loans, and other consumer borrowing.

To avoid further downward pressure on stock prices, the Securities and Exchange Commission banned naked short-selling and temporarily banned short-selling 799 financial companies for 10 days. Fannie Mae and Freddie Mac increased their purchases of illiquid assets, including mortgage-backed securities, that have been clogging up our financial system and further tightening the availability of credit.

Finally, to avoid an all-out credit freeze, a plan to create legislation for an unprecedented bailout of our financial system was put in place by representatives from the Federal Reserve, the US Treasury, the Bush Administration, Congress, and even the Presidential candidates - a controversial $700 billion plan that, had it passed, would have cost tax-payers for years to come.

The plan, however, came up 13 votes short of the 218 votes necessary for passage. The House vote shocked financial markets, which expected the house to approve the plan - a decision that sent the Dow Jones industrial average down more than 700 points, the largest intra-day drop in history.

At the time of the writing of this article, a new plan has already been announced in the Senate.

Create Your Own Plan
As promised, we will not delve into the politics of any of these decisions by the government to bailout said corporations or the financial and credit markets - or the merits of any new plan that might be put in place. What's done is done. We won't discuss who's to blame or what should or shouldn't be done about it. Whether it's right or wrong, moral or immoral, these actions or their implications are beyond the scope of this article.

Instead, we suggest that you put together your own financial plan to address your future. Just like your fingerprint, your financial situation, needs, and goals are unique and cannot be addressed or even encompassed by a single, one-size-fits-all solution. Whether you're looking to buy, sell, or refinance your home, you need to meet with a mortgage professional you trust right away to create a plan that best fits your individual needs as it relates to the opportunities available in today's turbulent market. What follows are merely suggested discussion topics you might want to consider depending on your individual needs.

Buying or Selling a Home
If you're looking to take advantage of lower home prices and historically low interest rates, credit is still widely available for borrowers who qualify. Qualifying for mortgages today simply means being prepared to provide documentation that supports your application. If you do have credit issues, you might want to consider government loans offered by the FHA, USDA, and VA.

If you're a first-time home buyer (someone who hasn't owned a home in the last 3 years), ask your mortgage professional about the new $7,500 tax credit. This incentive could be a valuable tool in helping you reach your homeownership dreams in today's buyer's market. There is one catch, however. This incentive is temporary, and expires in 2009, so don't wait.

It's important to note that Congress recently passed other legislation banning certain down-payment assistance programs (DAPs), so ask your mortgage professional about VA and USDA loans that, insured by the government, allow for 100% financing to qualified borrowers. There's currently a bill in the House to overturn the ban on DAPs, but congress is pretty busy right now and may not get to it before the end of the year. Some argue, this bill may never pass, so again, don't count on the government's help when you're planning your future.

For sellers it's important to understand these options as well. There are a lot of potential buyers looking to buy a home who may need creative financing options to get the deal closed. Make sure you're working with an experienced real estate agent and a mortgage professional who know how to market your property and make it stand out from the pack. In many instances, you won't have to lower your home price again to create an attractive package for home buyers.

Refinancing
September was one of the most volatile months in the financial markets in years. In one session, the Dow lost 504 points, which was the worst single-day drop since 2001. The Dow then had a two-day session advance of 779 points, the biggest since March 2000. Then, when the government's initial rescue plan was voted down, the Dow lost more than 700 points, the largest single-day decrease in history!

Mortgage interest rates, which are based on the performance of mortgage-back securities (see YOU Magazine April 2008), were so volatile in September that the market experienced price movements within days that used to take weeks or months to occur. In fact, mortgage rates reached six-month lows in September, bounced back in following weeks, only to fall again immediately after the government's rescue plan was voted down.

This volatility is a great advantage for many homeowners looking to refinance, as rates are still near historic lows. If you're connected with a mortgage professional who has access to and understands how changes in MBS pricing can affect mortgage rates on a daily basis, you may be able to secure a lower long-term rate as these short-term movements occur, depending on your situation. (See YOU Magazine July 2008 for an explanation of why bad news for stocks can be good news for mortgage rates).

Loan Modifications
Last month, YOU Magazine discussed loan modifications for homeowners struggling to make payments and/or avoid foreclosure. Print out that article and take it to your mortgage professional to discuss what options are best for your individual needs. If you've fallen behind with your payments or are currently in foreclosure, you may be able to benefit from an increased willingness of banks and lenders to work with you and help you keep your home.

ARMS
If you have an Adjustable Rate Mortgage (ARM) that is due to reset in the next 3 to 12 months, you need to know how any adjustments will affect your monthly mortgage payment. (See YOU Magazine August 2007 to learn how to understand the terms of your ARM.)

Remember, the Federal Reserve has held the line on rates for the last two meetings of the Federal Open Market Committee (FOMC), after 7 straight cuts to the Fed Funds rate in previous months' meetings. And while the Fed has no direct affect on long-term mortgage rates, their actions can directly affect rates for ARMs and certain credit cards and home equity lines of credit (HELOCs) that are tied to the prime rate - especially if the Fed begins a new financial policy of rate increases to address the growing concerns of our struggling economy. (See YOU Magazine April 2008 for more info on how the Fed affects mortgage rates).

In September, the volatility in the financial markets was not limited to the US. We live in a global economic environment, and financial markets throughout the world are more connected than ever.

Last month, we saw evidence of this in the London Interbank Offered Rate (LIBOR). Set by the British banks, this rate is considered one of the most important rates globally - especially in the US, where about 6 million ARMs, including almost all subprime ARMs and 41% of prime ARMS, are linked to the LIBOR. This rate, which experienced the largest one-day increase in 7 years last month, is beyond the reach of the Federal Reserve and its financial policies. If rates stay elevated, gains may follow in the 3- to 12-month Libor indexes, which are used to calculate US mortgage resets. This volatility was seen again as the initial Rescue Bill failed in the House.

In other words, create your own plan of success. Don't wait to be bailed out or rescued by the government or anyone else. If you have an ARM, take 10 minutes to discuss your options with a mortgage professional you trust. Changes in your credit in the last few years could help you secure a fixed-rate mortgage and avoid the volatility that surely awaits us as we face what could be one of the toughest financial meltdowns that most Americans have ever seen.

Gwenn Tanvas is a Appleton, WI-based consumer advocate and Certified Mortgage Planning Specialists with Patriot Mortgage Services, Inc. Email Gwenn - gtanvas@patriotms.com with any questions or if you would like to discuss your personal mortgage plan.