Debt Relief Act 2007: How to Prove Your Insolvency

When doing or considering a Short Sale or if your property was foreclosed upon, you should read this.


The Mortgage Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their principal residence. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualifies for the relief.

This provision applies to debt forgiven in calendar years 2007 through 2012. Up to $2 million of forgiven debt is eligible for this exclusion ($1 million if married filing separately). The exclusion does not apply if the discharge is due to services performed for the lender or any other reason not directly related to a decline in the home value or the taxpayers financial condition.

More information, including detailed examples can be found in Publication 4681, Canceled Debts, Foreclosures, Repossessions, and Abandonments. Also see IRS news release IR-2008-17.

The following are the most commonly asked questions and answers about The Mortgage Forgiveness Debt Relief Act and debt cancellation:

What is Cancellation of Debt?

If you borrow money from a commercial lender and the lender later cancels or forgives the debt, you may have to include the cancelled amount in income for tax purposes, depending on the circumstances. When you borrowed the money you were not required to include the loan proceeds in income because you had an obligation to repay the lender. When that obligation is subsequently forgiven, the amount you received as loan proceeds is normally reportable as income because you no longer have an obligation to repay the lender. The lender is usually required to report the amount of the canceled debt to you and the IRS on a Form 1099-C, Cancellation of Debt.

Here’s a very simplified example. You borrow $400,000 and default on the loan after paying back $200,000. If the lender is unable to collect the remaining debt from you, there is a cancellation of debt of $200,000, which generally is taxable income to you.

Is Cancellation of Debt income always taxable?

Not always. There are some exceptions. The most common situations when cancellation of debt income is not taxable involve:

Qualified principal residence indebtedness: This is the exception created by the Mortgage Debt Relief Act of 2007 and applies to most homeowners.

Bankruptcy: Debts discharged through bankruptcy are not considered taxable income.

Insolvency: If you are insolvent when the debt is cancelled, some or all of the cancelled debt may not be taxable to you. You are insolvent when your total debts are more than the fair market value of your total assets.

When filling a 982 form you want to make sure you talk to your CPA about completing an insolvency chart.  Just in case you get challenged by IRS.

What is the Mortgage Forgiveness Debt Relief Act of 2007?

The Mortgage Forgiveness Debt Relief Act of 2007 was enacted on December 20, 2007 (see News Release IR-2008-17). Generally, the Act allows exclusion of income realized as a result of modification of the terms of the mortgage, or foreclosure on your principal residence.

What does exclusion of income mean?

Normally, debt that is forgiven or cancelled by a lender must be included as income on your tax return and is taxable. But the Mortgage Forgiveness Debt Relief Act allows you to exclude certain cancelled debt on your principal residence from income. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualifies for the relief.

Does the Mortgage Forgiveness Debt Relief Act apply to debt incurred to refinance a home?

Debt used to refinance your home qualifies for this exclusion, but only to the extent that the principal balance of the old mortgage, immediately before the refinancing, would have qualified. For more information, including an example, see Publication 4681.

If the forgiven debt is excluded from income, do I have to report it on my tax return?

Yes. The amount of debt forgiven must be reported on Form 982 and this form must be attached to your tax return.

How do I know or find out how much debt was forgiven?

Your lender should send a Form 1099-C, Cancellation of Debt, by February 2, 2009. The amount of debt forgiven or cancelled will be shown in box 2. If this debt is all qualified principal residence indebtedness, the amount shown in box 2 will generally be the amount that you enter on lines 2 and 10b, if applicable, on Form 982.

I lost money on the foreclosure of my home. Can I claim a loss on my tax return?

No. Losses from the sale or foreclosure of personal property are not deductible.

How do I know if I was insolvent?


You are insolvent when your total debts exceed the total fair market value of all of your assets. Assets include everything you own, e.g., your car, house, condominium, furniture, life insurance policies, stocks, other investments, or your pension and other retirement accounts.

How should I report the information and items needed to prove insolvency?

Use Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment) to exclude canceled debt from income to the extent you were insolvent immediately before the cancellation. You were insolvent to the extent that your liabilities exceeded the fair market value of your assets immediately before the cancellation.

I gathered these information online and would like for you to make sure you check with your CPA about this debt insolvency.  Again, I am not a CPA but just gathered information online that I thought might help you.
Please make sure you are aware of the Debt Relief Act of 2007 expiring by year end and if you are thinking about working on your upside down property this issue is something to be considered.

Good luck and thanks for your inquiries and support.  Please Call Ken Go of 1st Innovative Finance at 562-508-7048 or write to Kennethgo@verizon.net.

New California Home Loan Refinancing Options from 1st Innovative

Refinance now at 3.5% 10YR FIXED No Cost!

Purchase down payments as low as 3% on conventional financing, 3.5% for FHA loans.

No points available for purchase loans, guaranteed rates and fees.

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No Documentation Fees - and No Title Fees. Apply now and refinance with 1ST Innovative Finance Group.

Call for 100% fannie Refi or 105% Freddie Mac refinancing programs.

Non- owner occupied loans with 20% down only.

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Guarantee smooth sailing all the way to closing.

We encourage rate comparison with other major banks and we will guarantee same day pricing that we can either beat or match any lender out there.

We invite all kinds of inquiry, follow ups during the loan is being process and we love to educate our clients to be smarter shoppers.

Guarantee less than 30 days closing.

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Mortgage interest rates for 30 years @ 4.25%

Mortgage rates have been pretty steady the past few months, but recently since the market being so volatile, money was moving from stocks to bonds. The effects of that was the 10 year Treasury bonds dipped below 3% as low as 2.95%. Which has a direct effect on our mortgage rates, now the 30 years mortgage rates dropped to 4.25%, all time low. I have been in the business going on 23 years and i have never seen rates this low. Now, qualifying for these rates is another thing or getting these rates would require for the homeowners to be in a certain credit status and debt to income ratio to qualify.

Here are what is typically a qualified customer for these low rates:
* Property to be owner occupied.
* Loan amount under $417,000.00.
* Credit Score minimum @ 740 unless the loan to value ratio is less than 70%.
* Debt to income ratio needs to be below 45%, meaning all your debts ( Revolving & Installmend + PITI ) added up and if you divide it with your groos income, it should not exceed 45%.
* Employment history has to be in line with Fannie and Freddie guidelines.
* Cash out transactions will depend on the loan to value ratios to qualify for these rates.

If you happen to fall into these qualifications and guidelines, you should get these rates with no hassle. However, being in the loan business this long, every loan is different and there are no two loan that are similar.

Please CAll to see if you qualify for these rates and for free consultation, call anytime : 800-508-7048.

Here are some other great rates i would like to share with you :
15 years fixed rates : 3.75 %

5/1 ARM (Initial rates fixed for 5 years then this will turn into a adjustable) : 3.125%
7/1 ARM : (Same as above adjustments) : 3.5%
10/1 ARM (Same as above adjustments) : 3.77%

LOANS OVER $417,000.00
30 YEARS FIXED RATES : 4.625%
15 YEARS FIXED RATES: 4.125%

7/1 ARM ( Initial rates fixed for the first 7 years then will turn into an adjustable ) : 3.875%
10/1 ARM : 4.25%

These rates are all carrying .75% for conforming loans and .50% for jumbo loans.
Guaranteed fees: $ 695.00 processing and $ 780.00 underwriting ( in writing ).
Appraisal Fees : $ 340 or $ 390 depending on the loan amount. CAll for appraisal specials.

YOU HAVE TO CALL NOW, RATES ARE SUBJECT TO CHANGE WITHOUT NOTICE AND THESE RATES ARE POSTED TODAY 7/1/2010. DRE LICENSE 01021223.

CALL KEN -800-508-7048

WE WILL MATCH ANY LENDERS RATES AND GUARANTEE ALL THE RATES AND FEES IN WRITING.

THANKS.



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Emotional Stress of a Short Sale

What a seller is to expect in a Short sale
I started talking about Short Sales about a year ago. The Short Sale transaction can be frustrating for everyone involved. I think most of the frustration comes from expectations not being met. The short sale is not your every day real estate transaction. This is relatively new territory for most real estate agents and definitely a new venture for the seller. This should be one of your last resorts. Talk to your bank. You might be able to renegotiate your mortgage. Again, back to my point banks don’t want to own real estate, they just don’t realize it yet. They are going to fight you tooth and nail to keep the current condition and hope you find a way to pay. A well trained real estate agent in foreclosures and short sales will be able to assist you in this process.
There are a few things that you should be prepared to do before venturing into a short sale transaction. The bank has to qualify you for a short sale. Remember, they are going to ultimately take a loss on this. Therefore, you have to establish a hardship, if they approve, they will pass this short fall onto you as a 1099 at closing. The IRS sees this as income to you and expect you to pay taxes on it. (Tax laws are changing on this regularly, check with your Tax preparer) You might not have to anymore.
Your agent will be needing a copy of a few things from you to help streamline the whole process.
Authorization to talk to you lender(s)
Most recent mortgage statement.
Most recent tax return.
Two most recent pay stubs.
Bank Account Statement(s)
A Hardship letter written in your own words.
The banks will want to see these items in order to consider your request. If there’s a second mortgage, most likely both will have to agree on a settlement before approving the short sale. Remember you agent will do their best to get the approval, but there’s no guarantees that they will accept it. It is not uncommon for one or the other lender to force it to foreclosure. The loss mitigation department sometimes have a mind of their own. They have secret formulas that they use to determine which route is more beneficial to the bank.
Your sellers agent will submit this again with another pile of documents when an offer comes through. It makes it easier on the Loss Mitigation Officer to see everything at one time (again or maybe for the first time) They have hundreds of these request coming across their desk monthly. The more your agent is organized, the quicker the response time to the sale approval. I say quicker with a little tongue and cheek. The approval process could take anywhere from 30-60 days. You don’t need any more delays than that. Especially if the foreclosure process is closing in on you. Buyers and Buyer’s agent need to be aware of this. We’ll talk about their expectations next week.
This is an emotional process, your agent should be able to help keep things in perspective and work through the hiccups of the transaction. Ultimately, you want to get someone who understand your situation, very patient and has your interest.
Watching out for your deficiency waiver and credit are both very important issues that an agent has to address. I just ran a credit on a short sale that I closed, this client had about a 720 Fico prior to the short sale, once we had closed the short sale. Their credit dropped to around 650, and both 1st and second loan showed “Account Settled”, which is what I negotiated for and got. I am very happy with the turn out of this clients credit. However, any foreclosure or short sale they will have to wait three years to be able to get another home loan.
Please call me for your inquires or concern, Call Ken Go (Short Sale Expert) of 1st Innovative Finance Group at (562) 697-7028 or write to: Kennethgo@verizon.net. Thanks for your inquiries.

Loan Modification Frustrations

Frustrated with all the people I am talking to about “LOAN MODIFICATION”!

Caller: I am trying to find a way to lower my payments, our loan currently is going to adjust by 25% come November 08’. At this point I am already having a hard time paying the mortgage, what should I do. I heard about “Loan Modification” and have been trying to do that for two months but am not getting anywhere? I also talked to someone wanting to charge me $3000.00 for doing this for me.

Ken Go: First of all, I am repeatedly telling everyone that you should not pay anyone to help you deal with your lender or do a “Loan Modification”. There are government agencies and non-profit organizations that will help you do it for FREE. The key question here is whether you are currently late on your mortgage when you are calling your lender for a “Loan Modification”. If you are still paying them, they will more than likely not agree to help you, because currently there are about 7-8 thousand people going into foreclosure everyday nationwide. So, they will prioritize the customers that are already late, but don’t get discourage because you should still try and see if they will agree. Another thing to consider is if you can qualify for your own loan, meaning if you add up all your mortgage payments including taxes and insurance, revolving debts and installment debts, is your family income double that amount? If not, they are again most likely going to decline your request. They will tell you that you cannot qualify for your own loan, if they help you; they are thinking that it will be temporary and you will be back in the same situation 6 months down the line. So, be honest and explain to your lender how you are able to afford the payments, if you have relatives living with you helping pay the mortgage, disclose all your part time jobs. Lastly, remember to try and complete the financial package with a hardship letter explaining all your problems. Remember, these lenders are overloaded with call all day long and try to be nice to get your way. If will get frustrating that is why you have to keep trying. Also, if you put yourself in their position, they can tell you that you have signed a legal and binding contract when you took that loan out, when you cashed out money to buy your new car, when you did your home improvements or paid off your other debts that you agreed to pay them back. So, they really don’t have to help you but might. So, we are at their mercy and have to do things their way and hope for the best.

Caller: I can’t refinance my house and my loan payments are going up to a point that I cannot afford it anymore. What should I do?

Ken Go: This is a growing epidemic that is out of proportion and I get calls like this all day long. My suggestion: get your finances together be honest with yourself and see what your actual monthly expenses are, include everything even your snacks, your small vices everything. Then put down how much you are netting from your pay stubs and you will be surprise to know that you are just living on the edge every month with your paycheck. If you cannot afford the house, then you have to really decide on other options to keep yourself afloat. See yourself six month to one year from now, even if you have a fixed rate loan, can you really afford the payments? If not, then be honest and sort out options. Treat this home buying experience as a business, its not personal definitely not sentimental.
Caller: Mr. Ken Go, you are claiming that you don’t charge anything for the advice and the appointment. Right there I might have to be cautious because you said yourself nothing is free in this world?

Ken Go: Great question! I spend about 15-30 minutes explaining to a customer all these things about loan modification. I have been in the business for over 20 years and fortunately have many loyal customers that continue to refer me with clients who might want to buy,sell or refinance a house. If you are following my articles, about two years ago, I have been writing articles about “NO DOWN PAYMENT LOANS’ that the borrowers should not do that because its too risky, I have telling my callers not to buy homes since close to two years ago. Why do I do that, because I honestly find satisfaction and a sense of pride doing that? I feel that I want to do that to sort of give back to the world the blessings I get. Do I need to make money, of course I do. Let me ask you something, if I give you a good advice and honest one, later if you need some financial or real estate services who would you think about calling? Hopefully Ken Go, right? That is pretty much what I asked for are referrals on people you know that might need my services. I think that is more than fair, my business is a referral business. I do get a lot of thanks and promises of referral from my callers and basically being in this business this long; I can wait and will continue to give free and honest advises to whoever might seek for it.

IMPORTANT NOTE: Countrywide and Bank of America is current workingout a Rescue plan for their customers only. This program will allow them to lower the balance and payments, if you qualify. Currently I am studying this program and will inform you of the details as soon as I gather them. It wont be in effect till December 08.

Thanks so much for your inquiry, again this is my way of helping my kababayan’s. Call Ken Go of 1st Innovative Finance if you have any questions; remember no such thing as a stupid question. (562)697-7028 or write to kennethgo@verizon.net

Short Sale Deficiency Judgements

Will I be liable for the deficiency balance on my defaulted mortgage balance?

Caller: My property was foreclosed 6 months ago and I am still getting a bill for the mortgage balance of my property. What can I do about the debt? The bank already sold the house to another buyer.

Ken Go: That is what happens if you let your property go to foreclosure, you did not request for debt forgiveness and the lender is after you for the deficiency judgment. Meaning, if you owe $500K on your property and the lender after paying all the fees, interest, legal and agent fees net about $400K only, you will owe them $100K. I am advising my readers to consider a short sale after failing to modify their loans and rates, and letting the property go into foreclosure as a last resort. Think about it, if you let go of the property just like that, the bank will have to wait for the legal process to kick in before taking over the property, that means you would have incurred legal fees, let alone the wait time that is wasted due to the process of bank take over. Then, the bank will also hire an agent and pay their commission to sell the house, all those cost of the bank selling will also go on your bill. So, you basically just increased your debt balance and hopefully your property is not damaged or vandalized where there will be again incurred cost, because again you will have to pick up those cost. Therefore, do I make sense when I say lets short sell it and ask the bank to accept a smaller payoff? What to do then, maybe talk to the lender to discount the balance if you have money to settle, or talk to a lawyer as far as how to avoid the debt.

Caller: I wrote about this caller a few weeks ago, who wanted me to help her request for a loan modification, she is $18K behind and have no way to pay the debt off to be current. I assisted in calling and providing the lender with the necessary documents to have her loan modified. Just recently the lender approved her modification package. What they did was they put the loan balance of 18K on top of her loan and kept her rate and increased her payments by about $100.00. I her case, she wanted to keep the house and has the ability to pay her mortgage but not to bring the loan current, so this will work out for her and now she wont have to worry about the 18K debt.
She got an advice from someone saying that don’t pay your mortgage for 2 months before calling the lender and asking for a loan modification. Problem is the 2 months quickly became 6 months and now she can’t keep up. So, before you get an advice make sure that person is qualified to make comments.

Caller: I was defrauded by a countryman, I was behind on my home that I owned for 18 years and was lead to believe that this person was going to use a straw buyer (fake buyer) to buy that property back for the caller. The Agent requested for $10K as an escrow deposit for the supposedly straw buyer. After a few months of communication with the agent, he suddenly stops calling. When chased after, the office has no record of the escrow ever being opened. What should I do? My home was foreclosed because I have a notice to move already and the bank won’t talk to me any more.

Ken Go: At this point, you have to report that agent to Federal Trade Commission, www.ftc.gov or call 1-877-ftc-help. I can’t even tell you if you will ever get your money back. I would report them to the local authorities too. Unfortunately, as far as your house, since the Trustee sale occurred you are out of options. Best is to report this person to avoid other people to fall for their scams. This is by the way a Federal offense for those who are getting ideas about scamming other homeowners.

Caller: I was approach by a lawyer’s office to who wanted to help me do a loan modification with my houses that I have. I own a vacation that is still ok but due to my interest rates being high, I might not be able to afford it anymore. I refinanced my home to be able to buy the vacation home and my current residence also has a high interest rate that I am paying.

Ken Go: Before paying someone $2-4K to help you do loan modification, take note of these things. There are non profit agencies out there that will help you negotiate with your lender for free. You can also do that yourself, of course when you have to do it yourself you have to be patient and much disciplined to follow up on those calls and documents the lender might require. But for you that could save you $5K, don’t you think it’s worth it, having a Law Office behind you doesn’t always mean success? My suggestion is for you to try to sell the home and at the same time request for a loan modification, vacation home you can’t afford is not a vacation home. If you sell see how much money you will have saved not having to pay the mortgage on that property, truthfully how often to visit your vacation home? Be frugal, now is not the time to spend carelessly. There was an article about a Law firm that targeted Filipino homeowners in distress and they were soliciting for Loan Modifications. I believe they are knee deep in trouble with the Law and I am curious to see how they get out of this mess.

If you have a Freddie Mac or Fannie Mae loan there is a Making Home Affordable program that you might qualify for, please inquire with us. I have seen rates as low as 2% approved for 5 years from this program.

Please call me for your inquiries; I am waiting to write more success stories than distressed once. So, if you are able to do a work out plan with your lender thru an agent, office or lawyer that you are happy about, send me a message this way we can refer them more people in need of good citizens. Call me at (562) 697-7028 or write to kennethgo@verizon.net

Loan Mod Scams and New Incentives for Short Sale

Another falls for A Loan Modification scam and see how the Obama Administration is trying to keep defaulting owners in their homes.

Caller: Dear Ken, I just recently read your article about loans being in a Negative Amortization Adjustable Mortgage. I am so depress and don’t know what to do, my husband passed on and I am handling our finances by myself with two children in college. I went to a Loan Mod Company and paid them $ 3000.00 to modify my loan. I was told specifically to stop my mortgage payments and now I am 6 months behind my payments. I then was told to Short Sale my property thru the same company, because they claim that I don’t qualify for the Loan Mod. I cant sleep at night and I really am very depress and don’t know what to do.

Ken Go: For my readers, this is the first time I have had a caller sound like this, from the time I heard her voice I knew she was completely devastated. I was having diner and immediately move to another room to speak with her. This is her situation, she has a “Pick-A-Payment” Loan with a minimum payment of about $800.00 a month payment, her property is not upside down but has very little equity. She lives in a descent area that I am sure will recover faster than other cities. She is currently still working but has concerns about her mortgage recasting (adjusting) to a higher payment next year. She is also worried about her job security now. I told her that if she would have called me last year, I would have told her to keep her money and keep paying the $ 800.00 a month for now. Per advise of the Loan Modification Company, they wanted her to list the property for sale with them ( to line up more money in their own pocket if you ask me ) and if she listened to the Loan Mod company and short sales her property, she still has to pay around 1200-1400 for a two bedroom apartment. So, why sell right? My take on this is that the Loan Modification Company wants to short sale to make another commission. Not caring about what happens to the homeowners. I told her not to talk to the Loan Mod Company and gave her the name, number and address to :

Call State consumer protection agency 800-952-5225 –
You have to call FTC – to complain by phone or internet and then call Ca. State consumer protection to take action.

File a complain in writing detailing your situation with all name and company names to :

Office of the attorney general – public inquiry unit
PO Box 944255
Sacramento CA 94244 –

Shortcut to: https://www.ftccomplaintassistant.gov/

To file a complain and I gave her the number to her lenders Presidents Office to complain and ask for help.

Her two children will be graduating this year and I told her to sit them down and tell her about the financial trouble she is in. I told her to continue to payments and make arrangement with her lender to continue the loan. Because she has till next year before the loan will actually recast or adjust, for now that payment is affordable. By next year her children are both graduating and hopefully will be able to help make the mortgage payments.

Even if the adjusted Mortgage payments will be around $ 1600 a month, that should be affordable for a three income family. With the market condition now a days, she will have a nice size equity in 5-7 years and then hopefully can sell and retire.

This is a case of real abuse where as the Loan Mod company saw an opportunity to take money from this person who might not be too sophisticated or familiar with their own financial situation. Mainly due to her husband passing who was the main financial person of the household.

The crooks in this situation probably wants the property for themselves and will have no mercy or conscience in kicking these hardworking family from their home for many years, which is not underwater and has a minimum payment of $ 800.00.

Lesson learned, don’t stop paying your mortgage unless you are certain that by doing that it actually helps and not puts you in a worse situation

The Obama Administration in an effort to end the foreclosure crisis has a new approach: “Paying some of the them to leave”. This is latest program, which will allow owners to sells for less than what they owe and will them a little incentive to speed up the process. Now, there are more than five Million households behind on their mortgages and risk foreclosure. Come this April 15th, a program could encourage hundreds of thousands of delinquent borrowers who have not been rescued by the loan modification program to sell their houses through a process called Short Sale. Lenders will be compelled to accept the arrangement, forgiving the difference between market price and amount owed. “We want to streamline and standardize the short sale process to make it much easier on the borrower and much easier on the lender,” said Seth Wheeler, a Treasury Senior Advisor.

This process will allow the borrowers to suffer less damaging credit remarks and ratings. And as part of the transaction, they will get the lender’s assurance that they will not later be sued for the unpaid mortgage balance.

I will look into this new program and will be discussing about Mortgage Deficiency next week. Seems like there is a new fear amongs homeowners being foreclosed on. Which is will the lenders have the right to go after the deficiency balance even after Foreclosures? Some experts says yes and I will discuss that next week.

Thanks so much for your support, please call Ken Go of 1st Innovative Finance for your loan questions or modification or short Sale inquiries. Call Ken at 562-697-7028 or write to: kennethgo@verizon.net.

How to pick your Mortgage Broker.

Banks might be taking too long or not returning your calls, right?

If you are looking for a mortgage, you may have been advised that it’s better to go through a mortgage broker.Now a days if you are still in the business, you must have done something right, because the downfall of the SubPrime Loans has weeded out a lot of the bad brokers in our business. This seems to make sense because most major lenders (ALL THREE OF THEM) will take an average 45 days to close a loan, forget about getting pre-approved or a return call, they are so busy that they cannot handle the work loan. Brokers are experts, aren’t they? This is generally true. But it doesn’t mean that you have to accept everything the broker says, or be completely uncritical. There are some things you need to look out for.

At one time just about anyone could set up as a mortgage broker.


All brokers are supposed to offer advice and a recommendation. Beware of a mortgage broker who claims only to offer information. This may be to forestall potential complaints.

Be extremely wary of a broker who encourages you to bend the truth in order to get the mortgage you want. It’s part of the mortgage broker’s job to make sure you get a mortgage which you can afford and which is right for your circumstances.

Some mortgage brokers will tell you that they are “whole of market” when they only in fact have access to a representative panel. This may not necessarily be a bad thing in itself, but you should be careful of a broker who you think is trying to mislead you. Check just how many lenders the broker has access to.

A mortgage broker who works on a commission basis may seem cheaper. But can you really be sure that the broker is recommending the product that is best for you, rather than being swayed by the commission? Of course most brokers are honest and genuine. And they are actually bound by their professional code to give the advice that is in the client’s best interests. But if this is a worry for you, choose one that operates on a fee basis.

If you do use a mortgage broker who operates on a fee basis, avoid one who expects you to pay the bill before completion of the transaction. This can cause problems if things change or break down later on. Check at the beginning when the broker expects the fee to be paid.Always remember you are the customer. Don’t let yourself be over-awed by the broker’s expertise. A good mortgage broker will always be happy for you to check everything and ensure that everything is being done in your best interests.

Most important advise for you to follow, get all the fee and rate quotes in writing and make them guarantee it. WE CAN! WE CAN CLOSE IN ABOUT 15 WORKING DAYS TOO!

For more help or inquiries, call Ken Go at (562) 697-7028 or write to kennethgo@verizon.net.

What can tenants do when the owners are no longer paying the mortgage?

What can tenants do when the owners are no longer paying the mortgage?

I hope this would be the last stages of the foreclosures that are occurring in our state. I had predicted that the past 3-6 months might have reduce the homeowners with Sub-Prime loans that are going into foreclosures. But we have a new problem here in our state, which is “Unemployment” and that has been the leading factor for this new trend of homeowners not able to pay their mortgages.

For homes that are tenant occupied, here are some Recent Laws:

Helping Families Save Their Homes Act of 2009 ----
1) Federal Law took effect May 20, 2009.
2) Law requires that for any residential real estate foreclosure, the immediate successor in interest to the property (i.e. foreclosing lender or third party purchaser) to send a Notice to Vacate effective at least 90 days after the date of the Notice to the “bona fide” tenant.
3) To be a “bona fide” tenant All of the following must be met:
a. The tenant is not the borrower, former owner or their immediate family member.
b. The lease or tenancy was an arms-length transaction, and
c. The lease or tenancy requires that rent that is not substantially less than fair market rent, unless subject to federal, state or local rent controls.
4) Additionally, the Notice must advise any tenant that entered into a “bona fide” lease of the tenant’s right to occupy the property through the end of the lease term, unless the successor in interest intends to use the property as a principal residence in which case the 90 day Notice would still be in effect.
5) Notice must still be given, but Successor in interest is not required to abide by the terms of the lease if it was oral: month to month; set to expire within 90 days after the foreclosure sale; entered into subsequent to receiving the first foreclosure notice.

California Foreclosure Prevention Act --- effective June 15, 2009
1) The lender must wait an additional 90 after the expiration of the three-month waiting period before a Notice of Sale can be filed if ALL the following conditions are met:
a. The loan was recorded from January 1, 2003 to January 1, 2008;
b. The loan is secured by a first deed of trust; and
c. The borrower occupied the property as the borrower’s principal residence at the time the loan became delinquent
2) It is possible for a lender to receive an exemption from the new law by implementing a comprehensive loan modification program that is approved by either the Department of Corporations, the Department of Real Estate or the Department of Financial Institiutions.
3) This law is set to remain in effect from June 15, 2009 to January 1, 2011.

So, far Loan Modifications for homeowners in need of such assistance has proven to be unsuccessful, lenders are prolonging the foreclosure process, which in tern could either help the homeowners find other sources of income to come up with the mortgage payments or for them to wait for better modification solutions in place compared to what is available.

I believe and repeatedly explain to my callers that in order to understand how a Bank/Lender can help you, you should see the big picture and not get emotional or personal about this. Banks will always put themselves ahead of you, remember that. Therefore when you are calling a bank to ask for help, remember here are the reasons why they should or can help you:
1) Your loan is a “Negative Amortization Loan”, these loans are called the “Teaser Loans” the banks are trying to get rid of these types of loans as fast as they can.
2) You have a predatory loan ( loans rates that are either short term adjustables or high interest yielding fixed rates ).
3) You qualify for hardship for hardship due to some of these major factors:
a. Death in the family.
b. Lost of employment or reduction of employments hours.
4) The key factor why a bank would want to help you is that they have to see that you can make your payments once they have decided to modify your loan. They need to see the “Ability to Repay” the debt. They will calculate your possible lower rates including the taxes and insurance to assure these obligations paid consistently every month. Otherwise, once after the trial period you might fall back into the same scenario and not able to pay again.

By understanding how the lenders sees you as a borrower that will eliminate a lot of confusion about why lenders would rather foreclose rather than modify. Another major factor is that your lenders ( BOA, Chase or Wells Fargo ) to name a few might not be the actual “INVESTOR” of your loan, they might just be servicing the loan. That means any type of modification to the original note has to be approved by them.

Please call for to discuss your situation and hopefully I have the answer you are looking for. Please call Ken Go of 1st Innovative Finance Group at (562) 697-7028 or write to kennethgo@verizon.net.

lease option to buy

How a lease option could benefit both buyers and sellers.
Ken Go (888) 822-5363

It would appear the market is changing, these changes will require both seller and buyer to adapt. The seller must realize that there will be more competition in the marketplace as more homes hit gets listed “For Sale”. Price will start to play a bigger role than the condition and location. Expect to see more listing prices being reduced and expired. Buyers have to realize they are not going to “steal” any homes as far as pricing goes. At least not yet, because now the buyers are still out there looking but taking their time and they have more choices.

The idea came to me when I have a caller who asks for my advice to see if I could lower his payments by refinancing his property. Here is their situation, they purchase a property less than a year ago with no money down, and got a two (2) years fixed rate mortgage that they could not afford from the start. Their loan agent promised them that they could refinance and get their payments down within a year. Two things happened here when that loan agent said that statements, one is either that person is so smart that he or she could predict what will happen to interest rates and home values within a year or that person is flat out just saying that to close this loan. You figure it out, on top of all this the loan carries a prepayment penalty for both loan.

Anyways, I calculated his options and checked the property value. I am hitting a brick wall, cant do any better on his payments due to interest rate now are higher. The property value has not risen enough to make a 90% combined loan to value due to the prepayment penalty to be added to the loan balance.

I then remembered that I have a client who is currently working on getting their credit cleaned up and in the process of saving up money for closing cost. T hey makes over $9000.00 a month and can afford$3000.00 payments. I heard a light bulb lit up in my mind and thought that maybe somehow I could put both of them together and make it work for both.

I am suggesting to the owner of the property to sell because even if I can help him with refinancing, in six months time he would be back in my office asking me to do the same for him and now he would live mortgage to mortgage sacrificing just to be above water. I then called the callers who are currently trying to save money and work on improving their credit and see if they might be interested in a lease option to buy. How this works is, they would take over the existing payments of the seller without going thru an escrow; a lease contract is signed thru an agent for a minimal fee paid by either the buyers or sellers. Without having to apply for a new loan, once agreed the buyers can move in and continue making payments for the sellers until a given time on the contract. Then should the buyers apply for a new loan to release the sellers from the mortgage responsibility.


Facts about lease options for sellers:
1. The seller might be able to avoid paying a prepayment penalty if the contract due to be exercised after the prepayment period.
2. The seller depending on the contract might walk away with some money.
3. The seller needs to monitor the payment of the buyers because the loan is still under the sellers name until the buyer refinances the loan.
4. The seller minimizes commission and closing cost paid to agents and escrow companies.

Facts about lease options for buyers:
1. The buyers will be able to avoid having to qualify for a loan regardless of credit situation, because they might just need to take over the existing loan of the seller.
2. The buyers will be able to avoid paying high fees for closing cost.
3. The buyers must be able to afford the payments of the mortgage, tax and insurance to be proven to the seller to avoid delayed payment on the mortgage loan.
4. If the buyers have poor credit but can afford the mortgage payments, they would have the time to re-establish their credit prior to applying for a loan in the future to fully own the house outright.


As easy as it sounds, this might be a harder task than meets the eye. The match has to be perfectly beneficial for both parties. A lot of communication would have to be going on even after the contract has been exercised.

Warning: Be careful with applicants just wanting to take over your payments and move in. They could move in sign a contract with you, but never pay the lender and you will be responsible as far as the lender is concerned because they never took out a loan under their name. If they did, it would not be called a lease but a regular conventional transaction.

Advise: Employ a professional to handle and negotiate the transactions and ask for some kind of good faith deposit to show interest from the buyers. Remember, they should be releasing the sellers from the payments only but not the responsibility.

Please contact me for your inquiries, I will be more than happy to assist you in anyway I can. Call me at (888) 822-5363 or write to Kennethgo@verizon.net. Sincerely.

Mortgage rates going higher

Control your interest rates from rising.
Ken Go (888)822-5363

Consumer credit rates
Extra costs due to your interest rates rising will stretch consumers and those with bad credit will suffer the most! We all have benefited from a booming economy with low interest rates and rising property values, but this could bring a rude awakening for the unprepared.The combination of high gas prices, higher energy costs, interest rates on the upswing and troubling levels of debt and credit use could spell catastrophe for many. If you have debts, you need to get them under control right away. Credit spending has become a bad habit for everyone. It’s easy to fall behind on payments and get into big trouble especially when you mix in unexpected personal problems. If you have credit card debt or significant balances on your lines of credits then I urge you to consolidate them immediately. Don’t procrastinate combine your mortgages if you can, consolidate these bills now into a second mortgage and improve your cash flow instantly!Today on CNN, they are talking about credit card companies seriously considering raising minimum credit card payments from 3% of the outstanding balance. What is going to happen to your budget if they do increase your minimum monthly payments on your credit cards to 4% or maybe even 5%?Can you afford paying $200, $300, $500 or maybe even 1,000 more each month?Hopefully they will not go through with it and things will remain as usual, but what if they go ahead with it. How are you going to survive? My suggestion to you is, pay off these credit cards today! Consider consolidating them into a second mortgage.

Home Mortgage rates
If you have a home mortgage that is adjustable or will adjust in the next couple of years. You should seriously consider converting your loan to a fixed rate mortgage. Here are some changes in the index market just within the last six months. 11th District COFI indexes went from 2.972 to 3.604 (21% increase), LIBOR went from 4.0882-4.8260 (18%), One Year Treasury from 3.77-4.91 (30%). If you don’t know what these indexes are, you are to get yourself educated. These indexes are the vehicle wherein your adjustable rate mortgage programs are tied to. Even if you loan is fixed for two years, they have indexes that will come to place once your second year anniversary comes to the picture. “After the limited initial periods end, the monthly payment for the holder of this nontraditional mortgage must increase-even if interest stays flat-and the size of that increase can be very substantial,” Comptroller of the Currency John C. Dugan said. Make your move to try to weight your option to convert your adjustable rate to a fixed rate mortgage.

If you have a line of credit on your home, that rate has gone up one full percent just six months ago, should you be worried. Yes, of course, try to either combine that into one loan or refinance your line of credit to a fixed rate second mortgage. I am terrified when I have talk to several readers not realizing that they could have gotten fixed second mortgages when they were applying for a loan. Your best options for second mortgages are if your credit is up to the lenders par and you have some equity in the property.




There are many variables that can influence the rates on long-term debt instruments, but an understanding of key economic indicators can provide clues to the future direction of interest rates.
Gross Domestic Product (GDP) – the output of goods and services produced by labor and property located in the US – and is the most important indicator.
Consumer Price Index (CPI) – is a measure of the average change over time in prices paid by urban consumers of a fixed market basket of consumer goods and services. Tied to inflationary concerns.
Producer Price Index (PPI) –is a family of indexes that measures the average change over time in the selling prices received by domestic producers of goods and services.
Payroll Employment – The government's employment report provides employment, hours and earnings estimates based on payroll records of business establishments. The payroll employment is the most significant indicator of current economic trends each month
Unemployment Rate - The government's employment report provides information on the unemployment rate and the number of unemployed persons by occupation, industry, duration of unemployment, and reason for unemployment.
Consumer Credit - Consumer credit data tracks debt levels for auto financing and commercial banking credit and are considered a fairly good indicator of consumer spending. Consumer credit report is generally considered to have little impact on interest rates.
Housing Starts - Housing starts is one of the leading economic indicators. A higher-than-expected increase in housing starts triggers economic growth and is considered inflationary, causing bond prices to fall and yields and interest rates to rise. Likewise, decline or declining trend in housing activity slows the economy and can push it into a recession, causing yields and interest rates to fall.
Getting yourself informed at all times is a great way to determine your next move, timing is key to anybodies success in this ever changing world we live in. Good luck, thanks again for all your inquiries, for further assistance please call me at (888)822-5363 or write to kennethgo@verizon.net.

Too late the hero

Regrets of not checking with different lenders prior to signing Loan Documents.
Ken Go (888) 822-5363

JR – I was referred to by a previous client of yours, here is my current scenario. I have been trying to get a second mortgage to finish my home improvement project that I started about 3-4 months ago. I finally got a lender from a flyer that gave me these pricing quotes: 11.99% second mortgage with a 617 credit score, a combined Loan to Value of 90% and a total loan cost of $7,000.00 with no prepayment penalty. I have just signed but have three days right of recession to cancel this loan. I had a time share that went into foreclosure about two years ago but just got report less than 6 months ago on my credit. Am I getting a descent loan?

Ken Go - Immediately, I got all the information needed to see if my sources would be able to offer a better deal for JR. I have only three days to guarantee an approval and a rate. After my interview with JR, I know I have some qualifying issues; I then turned to my underwriter for a full loan approval. This loan was submitted the second day, I got the escrow and title insurance open within a day and I used his old appraisal from another lender to complete my file. Unfortunately, it was the end of the month and underwriters are always trying close existing loans, my file was delayed on the approval. Spoke with JR, he needed to close because his project was held up long enough, apparently he has been delayed by about three weeks already. Due to his situation I am not allowed to guarantee my rates and fees to him.

The fourth day, my full approval came in with rates of 8.50% and a total cost of $2,400.00 and no prepayment penalties. He could have saved at least $5K just on the cost of the loan, not including the rate difference. So I called JR, but it was too late. He realized that he made a mistake and told me that he will definitely learn from this and make better choices next time. BTW, he also just told me that after reviewing the signed documents, his loan had a prepayment penalty which was contradictory to what was sold to him.

RP – This caller is a previous client who specifically requested for me to write about her experience. I would like to cash out some money from my equity; you give me a very good rate of 5.5% on my first mortgage. But I needed to pay for my children’s education and needed to pull money out again. However, someone referred me to call another lender who said they could refinance my entire loan to a 5.625% first mortgage with the same amount of cash out I needed.

Ken Go – my suggestion for her is not to touch the first mortgage due to the existing low mortgage rate they currently have, the rates where about .50% higher to refinance to a new first. I told her to go ahead with the lender referral but be careful and not to pay anything upfront until she got a full loan commitment in writing. I said if they are that low, call me back for me to refer them to my callers. She then insisted that this person can really give her those rates and that this person promised her.



She called me back after one week and told me that the loan commitment came at 6.5% and the cash out amount was 25% less than what she needed. She told me to go ahead with the process and now we are signing loan documents.

JC - I closed escrow on a house last October and am currently having problems with my payments. Everything went so fast at closing my agent/lender (one person) kind of talked me into closing and promised that homes would go up and I would refinance this loan to a lower payment. Our combined income is about $7K but this loan payment is almost $4K fixed for one year then turns into an adjustable. I have other expenses and bills that I needed to pay too. I called the agent to see if he could refinance my loan, but he told me to wait till next year because of my prepayment penalty on this loan.

Ken Go – Refinancing should not be your option, lets do the math together you have a 650K loan amount, you are only paying interest only now at 6.5% on your first and a fully amortized loan on the second. You are already having difficulties paying that loan balance, if you were to refinance you would have to add the cost of the loan and the prepayment. Even if you would reduce the rates by .50% (which you can’t) your payments will actually go higher. Here are your options: cut your expenses, reduce your cost of your utilities, and re-amortize your auto and credit card payments to a longer term. If you do that, you have just increase your interest payments by another 10-20% and you would really just worked for your mortgage. The smarter way is to sell; you have a little bit of equity that will cover the cost of the prepayment penalties and an agent. Re-organize yourselves and buy at a later time and make sure you get a fixed term payment that you can afford.

Lenders are feeling the pinch now a day and are starting to tighten their screws in this loan business. Don’t get me wrong, they still want to do loan but they will be pickier and will start to ask for more loan conditions. Open your ears and keep your eyes open, my advice to everyone about 6 months ago is that this market will cool down and we have to be very careful with our investments. Buy what you can afford, be realistic and forecast yourself three to five years from today and know where you want to be. Listen to the old timer sitting next to you telling you that back in their days, everything is on a cash basis. What you can’t buy with cash you won’t own. Don’t get carried away with credit cards, 0 down loans or 1% percent loans, they are illusions of money that you don’t have. This I can advise from the heart because I was once a victim of huge credit card debts and got beyond myself with them.

Please advise if you have questions, hopefully I will be able to help you in your next lending requirements. Call me at (888) 822-5363 or write to kennethgo@verizon.net.
Thanks for your calls, letters and emails.

What can I afford?

Can I Afford to Buy a House?Be Sure to Include in All the Costs
Ken Go (888)822-5363
Potential buyers sometimes forget to factor in the property taxes, homeowners insurance and the possibility of depreciation, as well as the costs associated with closing the transaction, moving, purchasing major appliances, and home, landscape and pool maintenance, not to mention furnishings and design accessories once you move in.
The days of calling up the landlord to fix your problems come to an abrupt halt when you're a homeowner. You'll be responsible for everything from malfunctioning appliances to leaky faucets to broken heating and air conditioning units and everything in between. And if you buy an older home, you'll probably eventually encounter costly repairs, such as replacing the roof or windows.
To determine whether you can afford to buy a home, you should do the following:
1. Determine the property value of homes that interest you. The property value is determined by comparing the prices of homes recently sold of similar size in the same neighborhood. Your real estate agent will be able to provide this information to you.
2. Review different mortgage loan types and compare their required down payment amounts to the money you have available. Make sure you will have a payment that is affordable for a duration of three to five years, include that taxes and insurance. Don’t cheat yourself with the low rates or the negative amortization loans that is available.
3. Get a letter to guaranteed your closing costs, including points , taxes, recording, inspections, prepaid loan interest, title insurance and financing costs from your mortgage lender or a real estate professional. These will generally add up to between 2 and 3 percent of the property value. You'll receive an estimate of these costs from your lender after you apply for a mortgage but request for a guaranteed rate and fees.
4. Add the down payment requirements and the closing costs together to determine the amount of money you'll need right off the bat. But you're not done yet.
5. Think about the actual move. Will you hire a moving company or rent a truck? Either way will cost you. The more stuff you have, the more it will cost.
6. Property taxes. Many lenders will require an impound account in which monthly payments for property tax (and often insurance) are paid together with the monthly mortgage payment. You can figure your average annual tax rate will be about 1.25 percent of the purchase price of your home. For new homes, ask about Mello Roos ( Its an act that allows county, city or special district to finance public facilities and services thru homeowners).




7. Next, budget for maintenance and repairs.
8. If you have other income that will come in to help you pay the mortgages, make sure they are on going to be at least two to three years guaranteed and you should have an alternative plan if that fails.
Once you crunch the numbers and find you come up a bit short, investigate ways to reduce your debts or creatively increase your income—it can come from a variety of sources.
My advise to new homeowners: Make sure you can afford the payments and don’t cheat yourselves with short term loans or negative amortization loans that will get you in trouble.
For existing homeowners that are having problems paying: Don’t refinance only to be able to keep your head above water for a few months, if you cant really pay the mortgage sell your house and repurchase later when you can afford it then.
And of course, you'll want to weigh perhaps the biggest benefit of all—having a place to call your own. Call me anytime for any inquiries: Ken go (888)822-5363 or write: kennethgo@verizon.net

Should I combine my first and second mortgage into one loan?

"I have an 6.75% first mortgage with a balance of $360,000, and a 10% second mortgage with a balance of $90,000. The second mortgage brought our total mortgage debt at the value of the property at that time, which is why the rate is so high. Our house has since appreciated about 10-15% in value, and I’m sure I can profit by refinancing. My question is, should I refinance the second only or should I refinance both, and if I refinance both should I take out two new mortgages or should I consolidate the first and second into a new first? It is all too confusing.”

It is confusing. The best choice depends on a number of factors including:

Rates and points available on new loans. Critically important are the terms of new loans to refinance, relative to the terms on the existing loans. This will depend on what has happened to mortgage interest rates, the value of your property, and your credit rating since you signed for the original loans. When you have two mortgages, you must obtain price quotes on a new first for the amount of the balance on the existing first, and on a new second for the amount of the balance on the existing second. You also need a quote on a new first for the amount of the balance on both existing loans.

How long you expect to be in your house. Refinancing typically involves immediate costs to obtain future benefits -- the longer you have the mortgages, the larger the refinancing benefit.

Current value of your house. Appreciation in the value of your house may make it possible to refinance the first mortgage without purchasing mortgage insurance. If large enough, appreciation could allow you to roll both loans into one without paying mortgage insurance.

Remaining term on existing loans. The shorter the remaining term on your existing loans, the smaller the refinancing benefit. With a shorter remaining term, you pay off the existing loan faster, which reduces the cost of the higher rate on that loan.

Term on new loans. The shorter the term on your new loan(s), the larger the benefit from refinancing. While shorter terms increase the cost of monthly payments, this is more than offset by the more rapid pay down of the loan balance.

Your income tax bracket. The tax savings on interest payments usually reduce the net benefits of refinancing. The higher your tax bracket, the smaller the benefit of an interest rate reduction on a new mortgage. However, if the remaining term on the existing loan is short, expect the reverse -- the refinance benefit can be larger for a high tax bracket borrower. Complexities such as these make refinancing two mortgages perplexing.

If you could consolidate both of the existing loans into a single new first mortgage at 5.875% and one point, the savings over 6 years would be even greater -- $7187. Every case is different but we can help you analyst your situation and determine how much you would save by refinancing or not.

Please feel free to call me at (888) 822-5363 or write to Kennethgo@verizon.net or visit my website: 1stinnovative.com.

Neighborhood Program - No Down Payment or Closing Costs

No money down homebuyers program that might actually work!

I recently attended a Neighbor Assistance Program Seminar and would like to share this information to you. This program offers homebuyer (FIRST TIME OR NOT) and homeowners an opportunity to buy a house with absolutely no down payment and no closing cost. It's also an opportunity for homeowners to refinance their predatory loan to a much a better rate of interest. Not only that, they are offering rates about .50% lower than your conventional financing. Is that true, you will ask me? I was doubtful myself that is why I spent almost an entire Saturday listening to what they have to offer. This is not a government program; this company is a non-profit organization that gets certain grant from this conventional lender in order to offer these types of loans. It is true but it's not that easy, you pay either way: the easy way with your dollars, or this way with your time. I will narrow down what I found out from the seminar, and this is something for you to consider if you qualify for it.

For purchasing a home, here are the requirements:

1. Currently, maximum sales price for
CONDO/SFR: $ 362,790.00
Two unit property: $ 464,449.00
Three unit property: $ 561,411.00
Four unit property: $ 697,696.00

2. Attend and graduate from their workshops

3. Complete evaluation forms and daily expense diaries.

4. Qualify for the house when evaluated, sometimes they will accept unconventional method of qualifying you for your income. For example, if you don’t have pay stubs, they will review your previous year’s bank statements to average out your deposit.

5. Credit is not an issue, but you have to resolve and explain late pays.

6. Pay for taxes, interest and insurance fees at closing.


** This process is not going to be a 30 day process, I think it might take between 3-6 months to be able to qualify and buy, because this program educates you and slowly walks you through a budgeting process to help you manage your money well and avoid foreclosure. But, since prices are currently unstable this might be a good time for someone to start this process and wait out the market. Plus, you are not paying anything for the loan, they have the right to make you wait and properly prepare for this home.

** If you are buying a fixer upper, they will allow you to cash out money to make the house livable, funds will not be use to paint your walls or buy your furniture. But if you are buying a house with roof or plumbing problems that can be assessed into the loan for you to use.

For Refinancing predatory loans, here are the requirements:

1. You have to be paying off a loan rate higher than 10%.

2. You have to fully qualify with terms same as above.

3. You have to be owner occupying the house.

4. Of course, you have to attend all their workshops and be evaluated just like if you were to buy.


Things to remember:

1. You have to be able to qualify for the program and afford what you are buying. No stated income or easy qualifying here.

2. You have to prepare yourself to attend workshops and multiple consultations on how to manage your money, debts, expenses etc…

3. Your credit is not a big factor but will be evaluated and you will have to explain and reassure them that your tardiness will not happen again. Tax liens and judgments will have to be paid.

4. Your income, if not verified by pay stubs or W-2’s, will have to be proven with bank statements showing you are depositing those amounts.

5. You don’t have to be a first time homebuyer and could already own a property to qualify.


This organization is going to lend you the money but will make sure you can really afford the house before signing over the paperwork. They will spend a lot of time with you analyzing you debts and spending habits. This is truly a good program to get into, even if you just go in to be educated and learn how to manage your money properly. I think we all need that once in a while to wake us up and not over spend. We have to learn sometimes to say no to our adult children who still live with us and do try to make it on their own.

I have referred some of my callers already because this is a good program. Call me if you are interested and I will forward you all the necessary information on this loan. Call (888) 822-5363 or send an email to: kennethgo@verizon.net. Visit: www.1stinnovative.com