In yesterday's post I mentioned that despite the news from Citigroup and JPMorgan Chase that the first two months of this year were profitable, there were more signs that the credit crisis is deepening. RealtyTrac, a california based service that monitors real estate values in most major markets, today released their Feb. 09 US Foreclosure Report. It showed that foreclosure activity increased by over 30% over the same period in 08. This surprised many analysts because this occurred despite the many programs in place designed to stem the ever increasing flood of defaults.
This is the beginning of what is the second wave of foreclosures - those by credit-worthy households that have seen one or more high-income wage earners recently lose a job due to an epidemic of layoffs.
How does this trend affect you, a Woman of Wealth? Now is the time to find out. Why? because foreclosures affect EVERYONE, even the wealthy. If you don't think so, click here for a realtytrac report on foreclosures in affluent communities. Many of you own a home or vacation property jointly with a spouse or significant other. If you haven't done so already, you need to sit down together and understand the consequences a loss of income will have on your ability to service existing debt. If you get pushback from the other party, let this be a sign to you that there is probably a deeper problem that needs to be addressed - one of TRUST.
I have heard stories recently of spouses who continue to dress up and leave for work even though they recently lost their job. Their partner had no idea that they were in grave financial danger until the foreclosure notice was received, or the Repo man shows up to take away their luxury auto(s).
This behavior is no different than that of a spouse who receives monthly or quarterly statements from Financial Advisors such as Madoff and Stanford, yet never takes the time to understand what they mean.
TRUST BUT VERIFY! I have said this time and time again. As painful as it may be, you need to confront your partner TODAY, in order to protect your financial future TOMORROW! And trust your intuition - it is usually right!
Until next post, continue to believe, achieve, receive. SDG- JBHIV