Additionally, how is this exchange any different than somebody saying, “I’m no lawyer but I think you may want to ….”

We are selling nothing, charging nothing, merely providing a forum to openly and honestly exchange ideas. I don’t see how that can possibly be regulated.

If we were selling something, directing business, or charging fees for advice, obviously that is a horse of a different color.

I look at this as strictly a public service.

Additionally, how is this exchange any different than somebody saying, “I’m no lawyer but I think you may want to ….”

We are selling nothing, charging nothing, merely providing a forum to openly and honestly exchange ideas. I don’t see how that can possibly be regulated.

If we were selling something, directing business, or charging fees for advice, obviously that is a horse of a different color.

I just caught your comment and appreciate your color.

How is it that I or anybody else who may be writing in general terms to an unspecified audience can be subject to industry rules.

Additionally for my own edification, what have I written that is inaccurate.

If you can share this with me and as a result with our entire audience then our mission, that of further educating people about money and finance, will be promoted.

Thanks very much.

This IS my field and just over the last few weeks the new FED and State Rules and Regulations put in place can severely penalize anyone giving advise specifically to a mortgage holder unless you hold a valid Broker’s License or a Mortgage Loan Originator’s License in your state and are registered with the national organization, The NMLS.

Just sayin.. Some of the things you’ve written are inaccurate and could be misleading to someone in trouble. I’m not posting this to upstage you in any way. Just letting you know the change in regulations is law and will hold people responsible for their actions if they are not licensed to do so.

I empathise with your dealings with Wells Fargo but I wonder how they may respond if you broached the topic of “principal reduction” and stated that you are hearing that the FDIC and the Obama administration are discussing that concept. I would not expect that they would give you any immediate satisfaction but it may be worth lobbing it in for discussion purposes.

Another point that was raised by another reader is the idea of finding a person at WF with whom you can develop a rapport or relationship to work on your behalf. In that manner, you are not always dealing with whomever answers the phone and getting the runaround.

I wish you all the best. Thanks for sharing!!

Thanks very much for sharing your experience. You do sound very strong and I hope that that strength continues to lead you and your family in 2009.

I boughta house that was weel within my ability to pay. I had a fixed rate, 20 year mnortgage with 15 years left on it. The bank changed my payment from $769/month to $1225/month due to what they called escrow overages. They refused to discuss this with me and refused to provide an accounting. The bank had set my payment and the bank deducted my payment every month from my checking account. I was never even one day late. Insurance and taxes were included in the payment. So, I cannot understand how I got an overage.

Anyway, just so you know. I lost my home of 15 years, through no fault of my own, and I am better off. I know I could have and probably should have fought to keep it, if I could afford a lawyer. I couldn’t. But I have been increasingly depressed for almost a year fighting with the bank and waiting for some help from Congress. Help didn’t come. I don’t believe Congress is going to do a damned thing to help people who are losing their homes.

And I am just so tired.

I have a daughter in college and a son in high school and I need to spend my life taking care of them. Obsessing over that house was destroying my family. That house is not worth my family. We will be okay. I’ve managed to survive some pretty bad shit in my life and I can handle this. And if I can’t borrow money that’s fine with me. I won’t buy anything I can’t afford. I don’t owe anyone anything at this point. I have a good job and I know how to live within my means.

We live 40 miles closer to work now. We rent a pretty nice house in a nice neighborhood. My son is in a better school and his grandma is right down the road. We’ve never lived in a city before (my son has never lived in any other house)and it is kind of a shock, but tonight for the first time in my life, I was ordered pizza delivered to my house. They do not deliver if you live way out in the country.

I am pretty strong and I do not like giving up, but I do not feel like I made a mistake. I did what I had to do.

Thanks for that color. Much appreciated.

People helping people!!

…some people have taken to “renting rooms” although I know that that can present a whole separate set of issues.

Colleges or universities with international students are a good source if you decide to take in roomers. Many international students want to live with American host families (to practice English, save money, etc.). The school officials usually make good liaisons (regarding costs, house rules, etc.). It might be worth a try to supplement income. Good luck!

Not knowing where you are located I though you may appreciate this article about community banks in tomorrow’s WSJ.

http://online.wsj.com/article/SB123007970447031843.html

Hope you can access it.

Good luck!!

Your idea about paying down principal is a tried and true method of paying down debt, building increased equity, and gaining more financial flexibility.

That said, at this juncture, with a mortgage being the only writeoff that one has nad given where mortgage rates are vs rates for municipal bonds it may actually be worth refinancing one’s mortgage into a 30yr fixed rate at 5-5.25% get the writedown and use the money to invest in a quality municipal bond fund or municipal bond issue. Obviously you need to understand the risks involved in the municipal bonds (interest rate risk, credit risk)/ if you can find a fund or bonds that effectively match your liability (that being your mortgage) vs the asset (that being the municipal bond) then it may very well be worth it to take that approach.

In regard to the currency, we have addressed this point in some previous columns as well as on our radio show this past Sunday. I do believe that our follwoing is growing and not knowing if you are a new reader/follower or not, let me make the following points:

1. Currency valuations are a function of a nation’s interest rate level and interest rate policy along with a nations’s balance of trade. Given that the federal reserve jsut lowered our fed Funds rate to a range of 0 to .25% nad we have a massive trade imbalance, our U.S. dollar is fairly weak, especially vs the Japanese yen. It is close to a 13yr low vs the yen. The dollar vs the Euro was much weaker this Spring/Summer but then strengthened earlier this fall beofre getitng hit hard since the fed cut that funds rate.

The big concern for our dollar revolves aroudn the massive bailouts, the Fed statement that they will leave the fed Funds rate in this range for an extended period and the fact that our trade imbalance is not likely to improve anytime soon.

There was a fabnulous article in last Saturday’s Wall St. Journal Weekend section by a James grant about the perils of a very weak dollar. It is worth getting.

The immediate play vs the weak dolalr has been a strengthening in gold. Some market savants are increasing their stake in gold bullion. I think that may be a little much for avergae investors but buying an ETF that is focused on gold is one to play this theme. While the U.S. dollar is weakening,the yen has strengthened because a lot of investors were short the yen to purchase other foreign denominated assets and now are forced to unwind those trades and buy the yen back.

I think that it is prudent to have a degree (perhaps 5-20%)of foreign exposure in any portfolio.

Additionally if you are concerned about dollar weakness leading to increased inflation, it woudl be prudent to buy TIPS (Treasury Inflation Protected Securities) which pay abase rate and then are indexed to inflation.

lastly buying an ETF that is indexed to commodities (hard assets) can be a play to protect vs a weak dollar.

Hope these insights help.

If you do find a smaller bank that can help you, I would look for more than one relationship.

Thanks for sharing your experience. Best of luck.

Let’s see – we loan the bank the money for them to loan back to us and pay them interest to do it. What kind of moron would offer a deal like that? The same kind that loaned out money to people who couldn’t pay it back. I have lost all faith in banks – and I had precious little to start with.