Few words sting like the ones that inform you that you’re being laid off — especially today, with jobs so hard to come by. If you’re a homeowner, the blow of a job loss can be even worse. In households with more than one wage earner, halving the monthly income can severely stretch a budget. And in households where there’s one breadwinner, having zero income can be devastating. A rainy day fund helps, but it’s important to craft a plan early about how you’re going to get through the rough patch. More people are facing this nightmare today: While the volume of subprime mortgages headed to foreclosure is falling, the volume of prime, fixed-rate mortgages defaulting is on the rise, according to statistics from the Mortgage Bankers Association. The MBA’s chief economist said that’s a result of rising unemployment.

“If you don’t have the prescribed three to six months income in the bank (now eight to 12 months due to how long it takes to replace that job), you’re really in deep trouble with some troubling decisions to make,” said Gail Cunningham, vice president of public relations for the National Foundation for Credit Counseling, in an e-mail. The NFCC is a national, nonprofit credit-counseling network. “We always advise people to pay their living expenses in full (this includes the house payment), followed by any secured debt (usually the car payment), and then the creditors. This will keep a roof over your head, food on the table, utilities paid, medicine in the cabinet, the kids at day care, etc. Once the money runs out, no one beneath that line gets paid. However, this assumes that there’s either some savings to fall back on or another income source,” she said.

Between programs offered by the government and loan servicers, there are additional options available for today’s homeowners before they slip into foreclosure — if they speak up and ask for help. Or maybe the best answer is to start over again by cutting your losses and selling your home or pursuing a short sale if you owe more on your mortgage than your home is worth, those in the industry say.

Whichever road you choose, it’s important to make contact with the lender or servicer as early as you know you could have a problem on your hands — and before you get behind on your payments. The MBA has a listing of contact information for lenders and servicers, including links to Web sites that give consumers a glimpse of some of the help that is offered.

“A lot of customers call us very late in the process, and it becomes extremely difficult for us to explain everything in one shot and to resolve everything to their satisfaction,” said Sanjiv Das, CEO of CitiMortgage.

Early communication is also stressed at Chase, said Christine Holevas, a bank spokeswoman. Remember also to be open and honest about your financial situation. You may think you’re bettering your chances for help by fudging on income information, for example, but it will in fact slow the process down; when income is verified and is found to be false, you’ll have to start over again, she said.

For help, there are counselors who will sit down with you and sort through options and paperwork. Chase, for example, has counselors at 27 homeownership centers throughout the country to assist its borrowers, Holevas said. The U.S. Department of Housing and Urban Development has a list of approved housing counselors, or homeowners can connect with a counselor through the NFCC site.

The solution that has gotten some of the most press this year has been the government’s Home Affordable Modification Program, which lowers monthly payments for borrowers based on debt-to-income ratios. Borrowers have to successfully complete a three-month trial period before the modification is finalized. Some homeowners are still confused about who is eligible, said Greg Hebner, president of MOS Group, a loss-mitigation service provider that works with lenders and servicers. For one, the program “requires a hardship, but does not require you to be delinquent,” Hebner said. “That is an important consumer misconception—if I’m still making my payments there is no help for me.”

But what the government does require is some amount of monthly income within the household, said Drew Kessler, director of sales for Rand Mortgage, in New City, N.Y. In a dual-income household, for example, if one person loses his or her job, a modification is a possibility. With one breadwinner, it probably isn’t. “There has to be some viable source of income,” Kessler said. “If they lost wages, or found a new job, the banks will work with them.” Kessler’s advice: It might be best to accept a job that pays less instead of holding out for one that is best suited to your salary history in order to qualify for the adjustment.

A borrower also has to be in danger of imminent default to be eligible, Holevas said. “They’re going to take a look at what your liquid assets are,” she said. If a borrower has more than seven months worth of payments in savings, he or she is not yet in imminent danger of falling behind and likely won’t be able to modify, she said. If you do qualify, it’s important to submit complete and accurate information in order for the application to move through the process without hiccups, Holevas added. If you don’t, “the back and forth tends to really slow things down,” she said.

Remember, if you don’t qualify for the government’s program, many mortgage servicers have their own modification plans, Holevas said. All options can be examined if you start early enough. “Contact your lender when you think you’re going to have a problem,” she said, even if you’re a couple of months out from not being able to make your payment.

For some homeowners, however, it might make more sense to sell their home and start fresh. Home sales are up recently in many markets, and if you’re living in a home that would be attractive to a first-time buyer eligible for the government’s first-time buyer tax credit, you might be able to take advantage and make a sale before the credit expires at the end of November, Kessler said.

“Maybe sell now and get yourself in a smaller property, a less costly property,” he said.

For homeowners who owe more on their mortgages than their homes are currently worth, short sales can be a viable option. In a short sale, the home is sold for less than the mortgage amount — with approval from the lender — and the difference is forgiven. Short sales usually take longer than a traditional sale, so borrowers might want to seek out a real-estate agent who is a certified default property expert in order to expedite the process, said Rich Rollins, president of National Quick Sale, a firm that works with the mortgage industry to get short-sale offers processed. His firm also helps match up investors with distressed properties, working out deals that allow the homeowners to give up ownership but rent their home, with the potential for them to “rent to re-own,” he said.

He warns, however, to be careful of unsolicited offers of help from people claiming they can save your home, he said.

“Be very wary of people who approach you for a profit or fee upfront,” Rollins said. “You’ve got to be diligent because there are people out there trying to steal your money,” he said. “You’re already in a precarious position. Don’t let people take advantage and take the money that you do have.”

(c) 2009, By Amy Hoak, MarketWatch.com Inc.

 The good news is that Americans recognize that good hygiene is an effective line of defense against the H1N1 virus (previously known as Swine Flu). The bad news: the awareness has not driven a change in how frequently people wash their hands or clean surfaces that they touch all the time, which are important, effective behaviors for avoiding the flu.

In a nationwide survey of 888 adults conducted on behalf of The Soap and Detergent Association, respondents were asked about their level of concern about the virus; how that concern has changed their hygiene habits; and whether they believed implementing steps such as good hygiene can help avoid the spread of H1N1.

Among the key survey findings:

-Nearly two-thirds of households surveyed (65%) expressed concern about H1N1 flu (women more than men: 72%, 57%, respectively).

-More than nine out of ten (93%) believe that steps such as good hygiene will help limit its spread.

-Only one-third of respondents said they changed their overall hygiene habits in response to the growing concerns about H1N1.

Health authorities, including the Centers for Disease Control and Prevention (CDC) and the World Health Organization (WHO), say that the 2009 H1N1 influenza virus is the predominant influenza virus in circulation worldwide. Consequently, CDC states that H1N1 poses the potential to cause significant illness with associated hospitalizations and deaths during the U.S. influenza season.

“Simple but effective, everyday practices can help protect public health and guard against colds, flu and the H1N1 virus,” said Nancy Bock, SDA Vice President of Education. “We can combat H1N1 at home, in schools and the workplace if everyone does their part. Preventative health care is literally in our hands. Common sense hand hygiene and surface cleaning and disinfection practices will play an important role this year during the cold and flu season to help keep people healthy.”

SDA recommends taking the following steps at home, work and school:

-Wash your hands with soap for a minimum of 15-20 seconds routinely, particularly after coughing, sneezing, using the restroom and before eating meals.

-Have all family members carry a portable hand sanitizer product when access to soap and water is potentially inaccessible.

-Routinely clean and disinfect home and office surfaces, including countertops, desks, keyboards, telephones and doorknobs and handles.

For more information, visit www.cleaning101.com.

 With fall just around the corner, now is the time to experience Colorado during one of the state’s best kept secrets, autumn. 

Mother Nature has blessed the state with unrivaled beauty, especially during the fall months when the mountains shimmer with golden aspen tree leaves. There’s a variety of fun festivals, harvest celebrations and great vacation packages to be had. Below are a few ideas to inspire ‘leaf peepers’ looking for a picture perfect, affordable Colorado vacation. 

Wine Away the Weekend. Celebrate Colorado wine and food at the annual Colorado Mountain Winefest. Enjoy wine maker’s dinners, wine pairing courses, a variety of seminars and tastings and much more. One of the highlights of the weekend is sure to be the 16th Annual Tour de Vineyards, a scenic bike ride through Colorado’s wine country beginning in Grand Junction, September 19th. www.coloradowinefest.com. 

Your Way or the Byway. Hit the road on one of Colorado’s 25 Scenic and Historic Byways. Try the West Elk Loop, where you can soak in the brilliant foliage over Kebler Pass, enjoy farm fresh cherries and apples in Hotchkiss and explore the quaint Victorian-era mountain town of Crested Butte. Or, cruise along the Collegiate Peaks Byway and check out Colorado’s highest concentration of towering “fourteeners” (14,000-foot peaks). www.coloradobyways.org. 

Zip the Day Away. Head to Durango in Southwest Colorado and delight in the fall colors while soaring through the forest canopy on a zip line with Soaring Treetop Adventures. Your guided adventure includes first-class train transportation in new private luxury cars aboard the Durango & Silverton Narrow Gauge Railroad, a full day of Soaring , a four-course lunch served on an elevated platform overlooking the surrounding scenery. www.soaringtreetopadventures.com. 

Flaunt Aspen’s Gold. The hip Sky Hotel in Aspen is offering the Aspen Gold foliage package, which includes a 15% discount on accommodations, complimentary valet parking, and a $25 gas card. www.theskyhotel.com. 

Once Upon a Llama. Enjoy majestic Rocky Mountain National Park with llama pack trips with Kirk’s Fly Shop in Estes Park. Check out the foliage and cool Colorado wildlife while taking a guided llama ride. 
http://www.kirksflyshop.com/llama-pack-trips-I-3.html. 

Enjoy the Gold, Save Some Green in Breckenridge. Groups of four can stay in Breckenridge for four nights, enjoy a two-hour ATV tour to view the colors of the Ten Mile Range, ride through the fall foliage during a 1.5 hour horseback ride, or on a bike ride down Vail Pass. www.gobreck.com. 

Haute Air Balloon Ride Over the Rockies. Treat yourself and someone special to a spectacular flight in a hot air balloon, a great way to enjoy the changing of the leaves. The Millennium Harvest House in Boulder’s Hot Air Balloon over the Rockies package includes overnight accommodations for two adults, breakfast for two adults at Thyme on the Creek Restaurant, transportation to and from the launch site and a 1-hour Sunrise Flight with champagne toast. www.millenniumhotels.com/boulder. 

For more information, visit www.hotdealscolorado.com. 

(c) 2009, By Amy Hoak, MarketWatch.com Inc.

September 1, 2009 - Even the most responsible borrowers slip up sometimes. Maybe a utility bill went unpaid after you moved and the missed payment went into collections. Or, perhaps there are unpaid library fines or parking tickets in collections that are hanging onto your credit history and affecting your FICO credit score, which is widely used by lenders to evaluate your ability to repay a debt. With the newest version of the FICO credit-scoring system, however, minor delinquencies are now overlooked in calculating creditworthiness. Under the updated scoring model, called FICO 08, small, missed payments lingering in collections with original amounts of $100 or less will no longer do damage to your credit score. Consumers also are less likely to be penalized for any single delinquency if it occurred two or more years ago—and if their credit history is otherwise unblemished, says FICO, formerly Fair Isaac Corp., which developed the FICO scoring system.

“There’s more flexibility with missing a payment,” said Careen Foster, director of global scoring product management for FICO. “If you have a more habitual pattern of paying accounts late, you’re more likely to get penalized for that.” If a consumer’s credit usage is high, that will be more likely to hurt his or her score with FICO 08. But getting close to your credit-card limits—even if you always pay on time—is penalized in some way in every FICO score, not only the recent edition, Foster said.

The new system has been available at all three credit bureaus—Experian, TransUnion and Equifax—since last month. The changes were made to provide lenders with a better risk assessment of borrowers, said John Ulzheimer, president of consumer education for Credit.com, a consumer education and advocacy site. FICO decided that one small library fine didn’t really predict whether a consumer was likely to default, for example.

With the changes, individuals who pose a low credit risk will probably see their scores rise a bit, and those who are high risk could see their scores drop, he adds.

FICO 08 also addresses “piggybacking,” a practice used by credit-repair companies to help people improve their scores, Ulzheimer said. In piggybacking, an individual pays to become an authorized user on a stranger’s account. The account holder gets paid for allowing the person to be associated with the account, and the new authorized user is able to improve his or her credit score.

“It was a practice to misrepresent what your credit looks like to your bank,” Foster said. FICO 08 aims to single out individuals who are named as authorized sources through deceptive means, Ulzheimer said. Those people won’t see their credit scores rise as a result. But the scores of legitimate authorized users will be treated as they always have been.

Borrowers shouldn’t expect their credit to be graded by this new scale on every loan they now apply for. Not all lenders have adopted the new model, though more than 400 lenders are using or testing FICO 08, the company said. In a statement, Equifax said, “Currently, many lenders and businesses are validating the new score within their systems, and adoption will vary by financial institution based on business requirements and market need.”

Many credit-card companies, auto lenders, regional banks and credit unions may have already adopted FICO 08, Ulzheimer said. But for mortgages, lenders doing traditional conforming loans backed by Freddie Mac and Fannie Mae likely haven’t made the move yet, he said. That’s because they’re waiting for Freddie and Fannie to approve its use. Freddie Mac and Fannie Mae “are essentially the lender, they’re the ones that set the underwriting criteria,” he said. Ulzheimer said he expects Freddie and Fannie to adopt FICO 08 by the end of the year. Fannie declined to comment on FICO 08; Freddie wasn’t able to provide a comment prior to publication.

While FICO 08 will help consumers’ credit scores in some cases, people still should take steps to improve their credit. Granted, it’s impossible for consumers to calculate their FICO scores themselves, said Rodney Anderson, of Rodney Anderson Lending Services in Plano, Texas. “It’s almost like the Coca-Cola formula. No one has access to the Coca-Cola formula, no one has access to the FICO formula,” he said. But by being proactive, you can start to work toward a higher score, something that will serve you well every time you apply for a loan.

Some suggestions for improving your credit score:

-Monitor your credit reports and correct errors. Look not only for negative events on your record, but also examine the credit limits to make sure they’re accurate. If the credit limits appear lower on the report than they actually are, that has the potential to hurt your score.

-Pay bills on time and keep card balances low. Your payment history, and the amount you owe on your accounts as a ratio of the amount of credit you have access to, are important components of your score. FICO 08 is more sensitive to high credit usage, and consumers may see a lower score if their reported balance on one or more cards is near the account’s limit.

-Take on new credit only when you need it. Some credit cards come with great offers, including a percentage off your bill if you sign up for one at the cash register. If you accept, make sure you’re getting a big enough benefit to make it worthwhile—taking on additional credit could end up dinging your score.

Freddie Mac released the results of its Primary Mortgage Market Survey® (PMMS®) in which the 30-year fixed-rate mortgage (FRM) averaged 5.12% with an average 0.7 point for the week ending August 20, 2009, down from last week when it averaged 5.29%. Last year at this time, the 30-year FRM averaged 6.47%.

The 15-year FRM this week averaged 4.56% with an average 0.7 point, down from last week when it averaged 4.68%. A year ago at this time, the 15-year FRM averaged 6.00%.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 4.57% this week, with an average 0.6 point, down from last week when it averaged 4.75%. A year ago, the 5-year ARM averaged 5.99%.

One-year Treasury-indexed ARMs averaged 4.69% this week with an average 0.5 point, down from last week when it averaged 4.72%. At this time last year, the 1-year ARM averaged 5.29%.

“U.S. Treasury bond yields fell nearly a quarter of a percentage point over the week, and other long-term yields followed suit,” said Frank Nothaft, Freddie Mac vice president and chief economist. “Interest rates on 30-year and 15-year fixed-rate mortgages fell to the lowest level since the end of May 2009, while initial rates on 5/1 hybrid ARMs declined to levels not seen since January 2005.

“Low mortgage rates are helping to reinforce the housing market. New construction on one-family homes rose for the fifth consecutive month in July 2009 to an annualized pace of almost 500,000 homes, the most since October 2008. In addition, homebuilder views of housing market conditions for the remainder of the year rose for the second month in a row in August to the most positive reading since June 2008, according to the National Association of Home Builders.”

For more information, visit www.freddiemac.com.

You know you shouldn’t do it. You tell yourself it will never happen again. You’ve learned your lesson. Next time will be different.

And then? Those good intentions fizzle, and you’re back at it: Hauling heavy luggage that turns you from a happy traveler into a beast burdened by your possessions. You’ve packed loads of clothes you don’t need, and you’re stuck waiting for your luggage, hauling heavy bags all over the place or rooting around in your carry-on for the one thing that you cannot find.

“Most people do overpack,” said Stephanie Solomon, Bloomingdale’s fashion director. But Solomon has a system (as do other successful travel packers), whether she is packing for a weekend getaway in the car or the trip of a lifetime overseas. With just a few basic guidelines, you can eliminate the hassle of overpacking.

Choose one basic color
“Pick a palette. A basic, like black. Add two colors and stick to it,” said Solomon, for instance, “black, white and red. Period.” Gregg Andrews, a Nordstrom national fashion director, agreed: “You need to think about looks that are strongly color coordinated. What is your neutral? Is it black? Is it brown? Is it navy? Then play off it. Pop it with other bright colors, so it all makes sense.”

Pack a few versatile basics
“If you can only wear something one way, one time, don’t pack it,” Andrews said. “It’s about how many outfits you can make with a few pieces, that’s the key to great packing.” Solomon’s musts are a basic black dress, one pair of black trousers “that fit you sensationally” and a black cocktail dress. If it’s coat weather, a classic trench in black or tan can work in any setting, “including evening,” she said. These few pieces with some tops, accessories and shoes - a max of one dressy pair, sneakers, flats and flip-flops - “will take you through a month, and you’ll always look very cool and chic,” Solomon said.

Let accessories change the look
“Costume jewelry is very important. Shoes are very important- the ultimate touch,” said Nicole Fischelis, Macy’s fashion director. She also suggests a standout belt or a “bold” jewelry statement, either a single piece or an armload of bangle bracelets. Solomon said a cardigan or jacket in the accent color is one way to ensure “you’re not dull.” Solomon recommends leaving expensive jewelry at home, but if you do take it, wear it continuously, never pack it, and don’t leave it unattended.

Avoid wrinkles
Skillful packers of both genders choose jersey and knits that can be rolled up rather than folded. Or put clothes in dry-cleaner bags before layering flat in luggage.

Smart moves
Flip-flops are a must to use as bedroom slippers, beach sandals and shower shoes. And, pashminas can do multiple duties as a plane blanket, beach coverup, evening wrap or colorful scarf accent.

Size matters, and so does weight
“Only pack what you can carry. If you cannot lift your bag yourself, you have too much stuff,” Finney said. Even if your suitcase rolls, you will need to hoist it up steps, onto buses or into the trunk of your car. If you’re buying new luggage, consider the weight when empty. It’s not a bargain if it’s already heavy before you put anything in it. Make sure wheels and pull devices operate smoothly. Check airlines for maximum carry-on dimensions, generally 45 to 52 inches (height plus weight plus length). Similarly, check for weight restrictions and charges for checked bags.

(c) 2009, Ellen Warren, Chicago Tribune.

Senate Majority Whip Dick Durbin (D-Ill.) said on Monday of last week that if the financial industry is not able to complete 500,000 mortgage modifications by November he would pursue legislation ratcheting up the pressure on the industry.

Durbin is the main backer of legislation that failed to pass the Senate earlier this year that would have empowered bankruptcy judges to modify primary home mortgages. On Monday, he said he would consider resurrecting that bill, but is also interested in a range of alternatives that may find broader support.”

Durbin’s bankruptcy legislation, derided as “cramdown” in the financial industry, fell 15 votes shy of passing the Senate and for years has been vigorously opposed by the industry.

“Americans don’t have time for any more voluntary half-measures that fail to significantly reduce avoidable foreclosures,” Durbin said at the Center for American Progress, a liberal-leaning think tank.

The Obama administration met with the financial industry last week and worked out a goal of 500,000 completed mortgage modifications by November.

On Tuesday, the Treasury Department will release the first monthly progress report on the administration’s efforts to encourage mortgage modifications. Durbin said that he is also sending letters to the 34 banks and mortgage servicer companies that are participating in the administration’s loan modification plan, asking them to detail their efforts so far.

Durbin said he is still strongly in support of bankruptcy legislation as a way to force the industry’s hand.

“There is growing consensus that principal reductions are the key to sustainable modifications that won’t redefault, since a homeowner who has equity will fight harder to make the mortgage work,” Durbin said.

The financial industry has shown no signs of easing its opposition to the measure. The industry engaged in one of its heaviest lobbying battles this year to beat back the policy.

Among other options, Durbin said he is considering policies that would mandate arbitration between borrowers and servicers prior to foreclosure. Arbitration would allow homeowners and lenders to renegotiate the terms of the mortgage and avoid foreclosure. Congress could also help finance arbitration programs in cities and states.

Durbin also suggested that legislation could allow homeowners to stay in their homes for some time while they pay fair-market rent.

Additionally, lawmakers could pursue financial penalties against firms that fail to meet the administration’s foreclosure-reduction standards, he said.

Courtesy of Katelyn Ferral, The Hill