January 26, 2009
Show Me the Money!
When this economy started its nosedive a couple years ago, most of the murmurings were done from a third-party perspective. In other words, conversations revolved around "those poor subprime mortgage company employees" or "those poor homebuilders" who were beginning to see job cuts and company closures.
Fast forward to January 2009, where over 150,000 people so far this month have lost their jobs. Think about that...there's not a football stadium in America that could hold all the people that have lost their jobs this month. And that's just THIS MONTH. Everyone I speak to is scared stiff right now.
While I was getting my hair cut last night, my stylist, who is a single mother of three, expressed her fear of the unknown. "If I lost my job, I don't know how I would support my family, even short-term," she said. Even though she has been at this store longer than most of the other stylists, she has no confidence that seniority, or job performance, or client base will keep her employed.
The saying goes "When your neighbor loses his job, it's a recession. When you lose your job, it's a depression." People are worried about a depression, and so many aren't prepared if it happens.
I bring this up because you as note holders are likely facing the same uncertainties, the same doubts and fears. How would your finances hold up if the paychecks stopped coming?
If you're thinking about cashing out your note, give us a call. If you think you'll have cash needs in the next two years, now is the time to sell your note. There are some troubling indicators in the secondary market right now. Prices continue being pushed downward, which will result in your note generating less cash for you. Additionally, there is talk in Congress of allowing bankruptcy judges to modify the terms of mortgages. How much do you think your note will be worth if an investor knows a judge can forgive some, most, or all of your borrower's debt?
As I write this, the markets are still functioning, and investors still have an appetite for product. The worse things get, the more precarious the markets become. Don't wait too long if you're on the fence. Give us a call at 866-762-1415 or e-mail at firstname.lastname@example.org...we're here to help.
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