Bad Credit Foreclosure Loan Mortgage

Not paying mortgage will result in kind of attention you don’t ...

Q: Ive had a home-equity loan for eight years. Six months ago, I called the mortgageservicing company to ask for the payoff. The toll-free number on my bill wasnt working, so I decided to stop paying on the loan to force them to contact me. Still, no one has called. What should I do? A: When you stop paying a mortgage, several bad things happen fairly quickly: You trash your credit history and credit score, late penalties and fees are tacked on, and you can trigger "universal default" on your credit cards. If youre carrying creditcard debt, your interest rate could skyrocket. No one is going to call you back from this mortgage-servicing company until its too late. The next call you get will be from the foreclosure department, telling you that it is starting foreclosure proceedings. Or you might not even get this call.

Fed pauses, consumers exhale

The Federal Reserve's decision not to raise rates for the first time in two years should give both consumers and businesses some breathing room.

If you have a home equity line of credit, what the Fed didn't do Tuesday is really good news.

"That's the most positive news. Everybody with a home equity line of credit right now is cheering because their rate did not increase," said Cory Reid, president of Emeryville-based Fountainhead Mortgage and an officer with

the California Association of Mortgage Brokers.

"The most immediate impact will be felt by people who have a home equity line of credit. The reason for that is that every time the Fed moves the rate, it immediately impacts the prime rate upon which their home equity lines are based," he said.

The prime rate has more than doubled from 4 percent in June 2004 to 8.25 percent in July.

Campbell and Tanner on the week that was

MAXINE McKEW: Now to a review of national politics and it was a bit of liquorice all-sorts week. The Prime Minister's 67th birthday produced a man with a screwdriver, a goat from Kevin Rudd, and some really crook inflation figures - an annual rate of 4 per cent. It was also the week for yellowcake and the orange-bellied parrot - the latter gets to fly another day thanks to Environment Minister Ian Campbell, who defied his own department's advice and vetoed a $200 million wind farm development in Victoria. Then there was Kim Beazley's change of heart on uranium mining. It's causing plenty of heartburn in his own party, but with the Reserve Bank Board meeting next week, it's the economic outlook which is set to be centre stage when the federal parliament resumes in a week's time. To get their views on what's ahead, I've been joined tonight by Environment Minister Senator Ian Campbell.

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