Five Priceless Holiday Gifts You Can’t Afford Not to Give This Season

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Well folks, we did it!  We made it through 2011 and we are on our way to bigger, brighter and better things to come, come 2012!  It has been my sincerest of pleasures to have been with you along the way – whether to provide a helping hand in your real estate endeavors, assist you with mortgage and finance planning or just plain be there when you needed me.

To all my friends, colleagues, clients and family – here’s to another wonderful year!

Since the relationships in our lives are among the priceless aspects of our lives – I thought I’d leave you with a list of five priceless holiday gifts this season.  Be generous.  Liberally give of these gifts.  For as they say, what you give will likely come back to you in volumes!

From my family to yours – Wishing You a Very, Merry Christmas and Happy Holiday Season!

The Gift Of Knowledge

There is nothing more precious than providing someone you love or care about with the lifelong ability to get up, stand up and be something.  Education allows us to do anything we can set our minds to do and it is the consistent reasons for many of the world’s great people!

The Gift Of Memories

The hustle and bustle of our lives as they get busier by the minute has slowed down the amount of time we actually spend on the relationships that matter.  Giving the gift of memories is a lasting pleasure that will always be with us and future generations.  Take time to read a book with a child or elderly parent.  Walk through the park, hand in hand, and talk about how things are going.  Share an ice cream cone in the middle of winter.  Anything goes.

The Gift Of Love

We take so much for granted and love is definitely one of those things.  To share and express and declare our love, whether through a simple hug or a monumental form of expression – the gift received of knowing you are loved is absolutely one of the most priceless and timeless gifts ever to be given.

The Gift Of Faith

Sharing your belief in someone, their ability to be who they are and offering the strength of knowing that they are surrounding by support and encouragement is second to none.  Who doesn’t need to know that they are valued and trusted and revered?  And who won’t remember that gift for a lifetime?

The Gift Of Warmth

Unemployment lines, colder winter season, harsher economic times – all are good reasons to be concerned with the warmth of anyone who doesn’t have the peace and comfort of a roof over their head.  How about consider donating to homeless shelters?  Volunteering to assist those who are having a very difficult time keeping warm this season is one of the most selfless and wonderful acts of giving there is.  And you will walk away feeling warm yourself too!

Managing Holiday Finances So Things Stay Within Reason During the Season

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Why is it that ordinary, everyday stuff that we see 11 months of the year and don’t need to have – all of a sudden become THE hot ticket item during the holidays and we now HAVE to have it?  Have you noticed how during the holidays that electronics, new gadgets, fancy toys and big-ticket items just seem to beckon us and persuade us that life can’t go on without them?  You know the items.  Big screen TVs, the latest video game boxes, and smart phones that are smarter than most computers and more.  One of this year’s hot ones is the iPad2 (is it because Steve Jobs passed on and now everyone wants a piece of him? Nope.)  It’s the holidays.

Unfortunately, for many Americans, this impulse can and is very dangerous because they simply cannot afford these items.  Yet they continue to rack up their credit cards, put things on layaway, or spend irresponsibly without considering where the bills will come from the following season.

Here are some tips to help you avoid all that and stay in the black this holiday season.  It’s not as hard as it sounds and can be achieved with some basic acts of self-control.

How To Prevent Going Into the Red In the First Place

The single easiest way to prevent heavy indebtedness at the end of year, is to manage your finances throughout the rest of the year.  Chipping away at a larger expense is far easier if done in installments and before heading toward the next holidays – you need to make sure that the previous holidays (and anything else outstanding) is paid off or begun to be paid off first.

Pay yourself first each month.  After listing all expenses that are unavoidable, including savings, examine if you are left with any room to breathe.  Begin a holiday shopping fund and build it throughout the year, but do not take on any more debt and do not deviate from your plan.

If You Are In the Red, What to Do Next

Don’t overdo the gifts this year.  Bake cookies, wrap them up nicely and write a beautiful hand-written letter telling the person receiving the gift what you appreciate about him or her.  Donate your time to a charity in someone’s honor.  Or give to the poor in their name.  Make a coupon book for each month of the coming year – in which you offer your services and special treats such as “good for one massage” or “get out of cooking dinner today”.

Ways To Get Through the Holidays and Stay in the Red

The big “B” word usually does it for responsible citizens that don’t go underwater during the holiday season.  Budgeting your holiday expenses is a key step in making sure that you don’t overspend.  However, unless you set a specific budget and then stick to it, you may as well forget it.

Remember that the ultimate meaning of your gift(s) is not the material itself but rather the thoughtfulness.  Grandma was right – it’s the thought that counts, not the number of dollar bills you shelled out at the register.

Using creativity to make gifts that involve your own personal touch is far more endearing than any store-bought item.  A handmade item that your loved one will keep close to heart for years will likely cost less money but also shows that your time spent on the gift means you were generous of your own time in the process, something more and more rare these days.

Center the holidays on family, traditions and activities that bring the two together.  Your loved ones should be able to remember the gift you gave them and if you bring out a homemade board game that has personalized touches involving the whole family – then they will surely remember that for years.
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Many Americans tell themselves they won’t overspend past a certain amount, but then when it comes down to the big Black Friday sale or the sales leading up to Christmas or Hanukkah, they break down.  With just a bit of careful planning and a lot of self-control – you can and will get through the holidays without swimming in a sea of debt by the time the New Year rolls around.

New Changes to the HARP Loan Program Means More People Getting Much-Needed Help

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The announcement made recently by the Federal Housing Finance Agency about proposed changes to the Home Affordable Refinance Program (HARP) could mean that many more homeowners will get much-needed assistance during this difficult economic time.  Homeowners that are underwater have traditionally turned to HARP loans to help them refinance their homes, being able to keep them rather than losing them to foreclosure.  Here are the main differences between the old and the new programs and how they will potentially affect homeowners going through times of strife.

No More Glass Ceiling for HARP

With the old program there was a limit to how much borrowers could borrow with respect to the home’s loan to value.  This posed a problem for many people that owed far more on the home than it was valued – given the steep decline in housing values during the past two or more years.

New changes to the program will allow homeowners to refinance no matter how foregone the situation is with respect to more money owed on a property than its market value.  The elimination of the 125 LTV ceiling for fixed-rate Fannie Mae or Freddie Mac backed mortgages is by far the most impactful proposed change to the program.  This change will quite possibly help millions of people avoid undergoing foreclosure.

Fewer Fees or Better Yet, No Fees For Some

As per the current HARP loan process, risk-based fees are assessed and applied to loans to protect the lender.  Considering borrowers’ credit profile, the lower the credit scores, the higher loan to value and that translates to greater risk to the lender.  Fees that are traditionally associated with this risk are a huge burden for buyers.

With the expected new HARP guidelines there will be no more risk-based fees for homeowners that refinance their home into short-term mortgages and fewer fees for others.


No Longer A Need For a Property Appraisal

The cost of getting an appraisal done on a home can get quite expensive and adds up when you factor in all the other costs of getting into a new home.  Most home purchases entail having an appraisal done on the home – at the buyer’s expense.

The changes that are looking to be implemented soon for people seeking assistance through HARP will include eliminating the requirement of a new property appraisal.  The only thing that buyers need to be wary of is that there must be a reputable AVM estimate in lieu of the appraisal.

The Absence of Warranties That Put Lenders In a Stronghold
Lenders are at a huge risk when borrowers default on their loans and as a protective measure Fannie Mae and Freddie Mac guarantee those loans but not without a long list of warranties that protect the creditor.  At present, refinance loans that have these warranties or stipulations on them cause lenders to comb through each application very carefully before considering an approval.

With the proposed changes taking place, the warranties will be waived, reducing secondary exposure to lenders of buying back the loan in case of default or even indication of default.  The change will make it far easier for homeowners to obtain the refinance loan they seek to help get them out from underwater.

More Time For Homeowners to Get Afloat

The HARP loan program began in April of 2009 and after an extension in March of this year (2011) the deadline was extended to June 30, 2012.

According to the list of projected enhancements to the program, the program’s deadline will be extended to December 31, 2013 – giving more homeowners more time to avail this opportunity.

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There are a few important things to mention regarding the upcoming announcement expected on Tuesday November 15th.  First, not only does the HARP loan apply only to homeowners that have a mortgage owned by Freddie Mac or Fannie Mae, the mortgage being refinanced must have been obtained on or before May 31, 2009.  Second, this applies only to homeowners who have not previously refinanced their home.

It is also important to note that these are projected changes – and they can change at any time contingent upon policy at Fannie Mae and Freddie Mac.