Fannie Mae Still Asking for Help

The latest request from Fannie Mae is for an additional $15 billion from the government because of losses in the third quarter which it claims is due to homeowners falling behind on their mortgage payments and the ever increasing unemployment rate. The default rate increased to 4.7% and is even higher in Florida and Nevada, with over 11% of the mortgage loans in default.

"There is significant uncertainty regarding the future of our business, including whether we will continue to exist, and we expect this uncertainty to continue," Fannie Mae said.

Fannie Mae and Freddie Mac guarantee approximately 31 million mortgage loans or about half of the mortgages in the U.S.

Fannie Mae lowered the requirements for borrowers prior to the recession by offering high risk loans which are now defaulting including homeowners with good credit.
This is the fourth request by Fannie Mae for government aid which now totals $60 billion in aid so far.

Fannie Mae stated that it would allow some homeowners who are facing foreclosure to rent their homes for a year to help reduce the number of homeowners losing their homes.

This new program is called the "Deed for Lease" program and will allow homeowners to transfer their deed title to Fannie Mae by signing a one-year lease which includes potential month-to-month extensions after the one year period.

5 Social Media Marketing Tips

According to Sharon Harvey Rosenberg, author of Frugal Duchess: How to Live Well and Save Money, “It’s not so much that we waste money. Rather, we spend money and don’t realize where we’re spending it". It will take more effort to gain new readers and buzz about your book due to the recession but done by using low cost promotional efforts such as social media marketing. Here are 5 tips to Maximize Social Media Marketing.

1. Create a Marketing Budget. Identify all your expenses, business needs and wants. Determine what things are needed to keep your business running and things you would like to get for your business but are not necessary to keep it running.

2. Reduce Spending. Participate in low-cost or free promotional services. Use free press release services, participate in free author promotions, discussion forums and message boards, and create a newsletter, blog, a website or page to promote your book.

3. Create a Book Fund. Use the fund to pay for unexpected business expenses which reduces credit card usage, keeps down debt and increases cash flow.

4. Generate Additional Income. Create different products such as teleseminars, downloadable audio files, an ebook, etc. based on your book and use your social media networks to promote them.

5. Treat your book like a business. Create a 30 second elevator speech, hire staff, create a slogan and logo, and identify the benefits of purchasing your book and post on your social media networks.

The current recession has reminded business owners how important it is pay down debt and keep a constant cash flow. Using these tips will help create buzz about your book and generate sales.

8 Tips to Help Authors Survive the Recession

Many small businesses are suffering from the effects of the recession. The book business is suffering along with every other business in this recession. Some small business include authors who are frequently trying to find ways to save money and reduce expenses which can be a difficult task. Here are 8 tips to help authors save money during the recession.

1. Network. Since we are in a recession and many small businesses and authors lack a marketing budget, attend as many free networking functions as you can. Check your local newspaper or local civic organizations for networking events in your area.

2. Create a website. If you don't already have a website, create one. If you can't afford to pay for a website, create a free one on Myspace.com or Authorsden.

3. Sell. Think of creative ways to sell your books. Sell them at barber shops, hair salons, networking events, conferences, grocery stores, libraries, and community events. You can also sell your book on eBay or Amazon.

4. Create a shopping cart. Create a shopping cart on your website or use Google or PayPal. Make it easy for customers to purchase your book and any other products you wish to sell.

5. Learn. Learn everything you can about marketing your book, selling your book, and how to run a business. As an author you are a business and you must promote yourself as a business. Some great books to use as a reference are 1001 Ways to Market Your Book by John Kremer and The Publishing Game by Fern Reiss. Do research on web marketing by visiting websites such as Wilsonweb and Writers Market, and Writers Digest.

6. Barter. Barter services with other authors or small businesses if you cannot afford to pay for them. This will save you money and help out someone else.

7. Create a newsletter. Create a newsletter and provide a sign-up sheet at each event you attend. Use websites like Icontact or Constant Contact to create your newsletter. You can also find free newsletter templates on Microsoft's website. A newsletter is a great way to promote your book without spending a lot of money.

8. Develop a plan. Develop a marketing plan for your book, plan at least 6-12 months in advance of what you hope to accomplish with your book. Set target dates for each goal and document steps taken to accomplish each goal.