Making Your Mortgage Okay During A Recession

By Ryan Cinder

Worldwide credit crunch and economic recession has made it tough for many home owners to sail smooth. Struggling with the effort to save their jobs it has now become increasingly difficult to deposit monthly mortgage installments. The main problems faced by mortgage borrowers in this time or recession are due to:

- Stricter lending norms imposed by financial investors making it tougher to get a mortgage loan - More pink slips being issued to the employees making monthly mortgage payment a daunting task - Steady decline in disposable incomes and lesser chances of increments at workplace where holding to a job itself has become tough.

With many financial analysts expecting the economy to recover by the start of year 2010, here are some of the ways that will help you manage your mortgage during recession:

Before opting for a foreclosure or declaring bankruptcy it is advisable to hold the talks with your investors and negotiate terms and conditions for the existing loans. Mortgage modification is increasingly being preferred by the financial institutions where discussions are being held between the borrower and the investors to come up with a cut in the mortgage rates making it easier for the borrower to pay monthly mortgage payments without fail. This is a win-win situation for both borrower and lender as this options works to be more profitable than foreclosure deals.

Try clearing off the debt that has the highest interest rate. So clear off all your credit card dues and then look for paying towards your mortgage and car loans. Also if for some reason you are unable to make a payment for a month always talk to your creditor and inform them of your problems.

If you have taken loans from different institutions, try shifting them to single financial organizations that will help you in getting better loan rates.

Last but not the least become more economical in day to day life and avoid unnecessary dining and wining out, opt for car pools, look for ways to augment your income. A penny saved is penny earned and will go a long way in helping you pay your mortgages during the times of recession.

About the Author:

When you are looking for a mortgage and need to know what your payments will be, you can always check a extra mortgage.

Beyond Mortgage Payments. Mortgage Acceleration. Are You Debt Free?

By Jerry Smith

A big chunk of your payments goes towards paying off interest rather than your mortgage principal, especially in the early years of your mortgage.

f you decide to refinance or move to another home your 30 year mortgage automatically now becomes a 40 year mortgage. For most of us it could take up to four decades to pay off the mortgage.

And what if your are extremely close to retiring.

Just imagine your mortgage outlasting you in retirement. When you pass on the home on to your kids they think they have a home but may be saddled with mortgage debt as well.

Their much anticipated inheritance could well turn out to be debt.

So what if you have worked hard, saved and been extremely responsible with your finances?

Living debt free is the ultimate retirement dream. Is there a way to do this without changing your lifestyle or spending more of your cash?

There certainly is. This overview will reveal how to accomplish this.

By this point you may only have one large debt

Monthly repayments to your mortgage.

You now can eliminate the significant amount of the interest payable on the mortgage debt.

By applying and using a mortgage acceleration system , you will be able to slash your mortgage 10-12 years faster, reducing your interest burden without changing your lifestyle.

Less than 5% of Americans are able to actually retire financially independent.

To retire without the burden of debt the easiest step is to pay off your mortgage first.

By applying the methods of the mortgage acceleration , this is the easiest way pay off your mortgage.

By definition, the mortgage acceleration sometimes referred to as the mortgage acceleration system is a term given to the practice of paying off a mortgage loan faster than required by terms of the mortgage agreement.

As interest on mortgages is compounded, early payments slashes the years needed to pay off your mortgage, which in turn reduces the amount of interest.

You may not have extra payments each month as you may want to invest this or use this for personal spending. By applying the mortgage acceleration system it is a smart way of making more of your payments to principal and ends up paying your mortgage faster, all without paying more.

It takes your monthly payment and automatically applies more of this to principal rather than interest.

And the biggest benefits of all, your mortgage could be paid off in less than 10 years. Imagine saving thousands.

This is the most important benefit of the mortgage acceleration.

By living debt free in retirement you have the option to travel and set the way for your kids to follow your good financial habits. They never have to work just to pay off debt.

Start by asking yourself:

Have you asked your broker or banker how much you are scheduled to repay on your mortgage over the entire 30 year term?

You are going to find out why you should be asking this question.

Your payment for your mortgage is structured in favor of your bank. This is considered acceptable banking practice. But if you ever found out the true cost of your mortgage, you probably want to change this so that you can keep more for yourself.

As you can see, the possibilities could be endless with the mortgage acceleration . Once you begin to visualize the various ways in which you can apply this to your situation, you will begin to understand the true power of this system. Just a few ideas and suggestions have been listed here for your review and benefit. Once you decide to reorganize your mindset around the mortgage acceleration , every extra $1 added to your HELOC is applied to accelerating your mortgage debt.

Imagine for a moment living free and clear from having a mortgage payment and retiring on your terms no matter your age. And the best part is that all your retirement funds are used to live your life to the fullest and not used to pay for debt. For me, this is my retirement dream. What is yours?

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Everything they never told you about Mortgage acceleration revealed! For more insider tips and information be sure and check out Mortgage acceleration |

5 Tips To Get Out Of Foreclosure

By Doc Schmyz

Your house is the last thing that you want to loose. However sometimes home foreclosure will happen. When a borrower fails to pay his or her mortgage for a number of payments (usually 3 or 4) the lender will issue a foreclosure by selling the house or repossessing it.

More often than not lenders often lead their borrowers to believe that they don't have other options available. There are other alternatives that homeowners can use to keep their house off the auction block. The following is a list of ideas to consider if your in the foreclosure process.

1)Short stop

In some cases you can get a short refinance for the foreclosure of your property. If you don't want a new loan to cover an existing one, you can ask the help of a friend. A borrower's friend or relative can buy or pay off the mortgage.

2)Negotiate a payment scheme

In this case the homeowner agrees to pay a portion of the amount and agrees to pay the rest in the succeeding months. The homeowner shows proof of their income and pays a down payment. This is a much easier way and most lenders agree to this plan. Keep in mind this is not a long term fix...it is normally only a short terms(3-5 month) agreement.

3) Change of plans

Sometimes a temporary change in the terms of the loan can be given when properly negotiated. These changes include amortization extension and reduction of interest rate. A foreclosure negotiator handles the job of getting these plans approved. This is a total process for another short term fix. This may sound a lot like the second option we discussed however this is much more involved.

4) Third party sale

The foreclosure property is sold to a third party. The proceeds will go to the mortgage lender as a settlement for the debt. This is the most common conclusion to a foreclosure.

5) Friendly third party sale

The third party who buys the property sells it on foreclosure to clean the deed of other holders/liens. Then the property is sold back to the original owners/borrower. Under a new contract of sale and then the process is complete. Manytimes this is a "seller financing" deal.

These are just some of the options that borrowers can utilize in attempting to retain their home. Remember these alternatives are outside the original terms of the agreement. Homeowners may have to negotiate their way with lenders and banks. If borrowers don't want to end up doing any of these alternatives it's best to avoid missing your payments. Preventing home foreclosure is still better than looking for a cure.

About the Author:

Doc Schmyz has done real estate deals all over the US. He built a free website shares Real estate investing information for all over the US. Find Real estate investing information by state

What Are the Most Common Financing Services

By Amy Nutt

The most common financing service of banks in America is a home loan or mortgage. Mortgage lenders and brokers may not always be clear on what they'll do for you, so the best decision financially is to go to your bank and talk to an adjuster there. Most banks provide plenty of helpful information for people looking to finance a new home or refinance their existing mortgage.

A great idea would be to look at mortgage choices from a bank you trust in order to decide on one that fits your plans, one that's right for you. When you're deciding to purchase your first home, it is beneficial to be qualified online ahead of time. You can get custom rates and pricing, advice from experts to help complete your online application through a quick and simple online process.

Regardless of the kind of mortgage you're looking for, the expert home buying advice provided by banks online will help you find the right mortgage in just a few quick and easy steps. A fixed rate mortgage allows for a set interest rate that lasts throughout the term of the loan. The advantage of having a fixed rate mortgage is that it provides a predictable housing cost for the life of the loan, which can last fifteen, thirty, or forty years. The shorter the loan term, the less interest will be charged allowing equity to be built faster. Monthly payments will be higher, however, for a shorter-term loan.

Interest only loans allow a preliminary time period during which only the interest payment is required. After the interest-only period of an adjustable rate interest only mortgage, the loan requires principal and interest payments. A borrower would still owe the original amount that was borrowed, but the amount necessary to be paid will increase after the interest only period because the principal must be paid as well as the interest. Making interest-only payments does not build home equity, which could make it quite difficult to refinance a mortgage or make money by selling or refinancing a home.

Adjustable rate mortgages offer lower initial rates, which can create a valuable financing choice depending on specific factors like the increase of income expectations and short-term ownership. Because the interest rates and payments can increase, however, buyers of new homes should be financially ready for a possible hike in payments or rates. An adjustable rate interest only mortgage starts out with an interest only period, just like you'll find in a fixed rate interest only mortgage. Once again, the loan will be converted to principal as well as interest payments after the termination of the interest only period. The amount you need to pay will go up, and the payment will increase by even more. A 'reduced documentation' or 'stated income' loan normally tends to have higher interest rates and additional costs when compared to other loans that might require you to authenticate your income and other assets.

Smart financing makes it easier to plan your long-term growth. Any bank offers you financing solutions designed to match your company's needs, with flexible repayment plans tied to your profits and cash flow.

About the Author:

Global Financial institution offering commercial and personal banking services including online banking, credit card, loans, Barbados finance and more. Visit Bahamas money management.

Types Of Home Foreclosure

By Doc Schmyz

Your mortgage is one of the most important bills we have to pay every month. Besides credit card bills, we also have to make sure we don't miss our other monthly payments. Unfortunately paying with plastic makes it difficult to track our expenses and easier to splurge on shopping sprees. When we fail to pay the mortgage; foreclosure happens and we lose our home.

Foreclosure...what exactly is it?

When you miss a number of payments; your mortgage lender has the right to foreclose on the home by selling or repossessing the property. In most cases these properties are auctioned.

In most cases the usual number of payments that borrowers miss before their house goes into foreclosure is 3 months. In other cases the lender may accelerate the payment to give the borrower a chance to settle his or her debt/catch up on missed payments. In this case however they will require the borrower to pay all the missed payments at once.

Lenders have several options on what foreclosure to actually move forward with.

Judicial foreclosure

In this case the lender sues the homeowner. If the owner of the house does not respond to the lawsuit, the lender wins. The property is then put up for auction. Participants will have to compete with the mortgage lenders bid. If no one out bids the mortgage lender he repossesses the house. Otherwise, the deed will go to the highest bidder. This is normally referred to as a "courthouse auction".

Foreclosure by the power of sale

The deed of the house goes directly back to the mortgage lender. The house is then sold by a real estate agent. Proceeds earned from the sale will be used for paying off the amount owed by the former homeowner. In the event proceeds are not enough to cover the mortgage amount the lender will issue a deficiency judgment.

The deficiency judgment is the amount left after the proceeds from the sale cover the mortgage owed by the previous homeowner. The previous homeowner is liable for it.

Strict foreclosure

The court orders the borrower to pay the mortgage in a certain period of time. If the borrower fails the property will go directly back to the mortgage lender without any obligation to sell it.

Judicial and foreclosure by power of sale are the most commonly used methods in United States. Other states use other methods. Strict foreclosure was originally used but is now only utilized by a few states such as Vermont and New Hampshire.

About the Author:

Doc Schmyz has done real estate deals all over the US. His website shares Real estate investing information for all over the US. Find Real estate investing information by state

Mortgage Brokers - Using The Right One Will Get You The Best Deal

By Carol Bell

A good mortgage consultant is something each wannabe home-owner or experienced property financier wants to have on their side. There's no lack of brokers out there and they come in all sizes and shapes with diverse personalities.

What folks don't understand is if you have got a very useful and friendly broker, it can actually contribute in your complete angle about getting a loan. When you have a good financial consultant, you'll often have a pretty unstressed loan process and they're going to be able to explain it all to you easily and simply.

So how do you know if you have a good broker There are some very simple things that will tell you right away if your broker is good or not. One of the best ways to judge a mortgage broker is just with common sense. Does your broker like to talk and have an excited attitude

That can definitely improve the experience for you but there are other factors to consider. Punctuality is very important and someone missing dates can be infuriating. If your broker says they will call at 6 pm and they miss it every time, it might be a problem. You really want someone very punctual.

The broker should be ready to list off mortgages and programs by heart too. It isn't a great sign if they are flipping through a book every couple of minutes to look up terms and agreements. A good way to say if your home loan broker is good is to make certain they are ready to answer any query possible without getting annoyed.

Ask them something a couple times in one sitting just to see what they do. If its obvious they are annoyed and dont ask why you repeated it, they might not be paying attention and just reciting some spiel they use on everyone.

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To find out more about finding a mortgage broker to help you find the best mortgage to fit your circumstances visit our mortgage website You can get a unique content version of this article from the Uber Article Directory.

Why you should pay offyour mortgage early starting THIS YEAR

By Ken Diaz

Your retirement is closing in but, with the kind of economy that we have now, you are not yet so sure if you should still pay off your mortgage in the next five years.

Forty percent of your retirement savings have been slashed since last year. This is enough to entice you to take more risk in investing in stocks, cross your fingers, and wait until the market rebounds so youll be able to recover your saving.

Should you still pay off your mortgage before you retire and ahead of time?

There are two reasons why you should pay off your debt and accelerate your mortgage payments especially in 2009.

But before I get into that there are two caveats that you must consider before paying off your mortgage.

If you have high credit card debt to pay, make this a priority in 2009. Credit card interest rates are high and sometimes around 30%. It makes much more sense to pay off your credit card debt first before you choose to pay off your mortgage. There is one exception and I will discuss this later.

The second caveat is that you should make sure that you are always contributing to your 401(k) or retirement savings account. I know the stock market has fallen over the last eight months and it does not make sense to keep contributing in the stock market, but in order to prepare for your retirement, it is imperative that you keep contributing to your 401(k) plan at least out to your employer match.

The move to pay off your mortgage when you have done all these will be the most appropriate step to take before you retire. And it is even better if you take action this year.

Living in your own home after you retire allows you to enjoy the fruit of your labor. You only have to spend your retirement benefits on property tax and maintenance cost. That hateful mortgage bill will no longer tear a hole in your retirement savings.

Reverse mortgage allows you to get access to your retirement funds when you settle your mortgage before you retire.

With a reverse mortgage, you will be able to make use of your home equity and turn your home as a source of income when you retire. However, you may only enjoy this benefit if you have your mortgage account almost paid off fully.

When you think about paying off your mortgage, you immediately think that you need to spend more of your own money in order to pay off our mortgage early. But it does not have to be this way.

There is a new technique called mortgage acceleration that will help you pay off your mortgage faster without changing your lifestyle. This technique can help you slash at least 13 years off your mortgage and save thousands of dollars of interest.

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Best Information ever on Pay off mortgage early, grab yours free guide now while stocks last at Pay off mortgage early Better hurry because supplies are limited.

Stop Foreclosure Quick: Don't Delay!

By James Sopher

Witһ the economy in recession, unemplοyment rateѕ hіgh, and consumer debt at hіgh levels, many homeowners aгe fаcing the threаt of fοreclosure οn thөir homes. You мight find yοurself in this situation due to loss οf your job, unexpected repair expenseѕ οn үour homө oг сar, illness іn tһe faмily, or some οther financial hardshiр. If so, үou can stop foreclosure fast іf yοu act promptly.

This meanѕ that oncө you аre notifіed Ьy үour mοrtgage lender thаt үour paymөnts are overdue you need tο respond in a timөly manner. Tһe sooneг that you deal with this situatiοn with the lender, the morө likely they will be willing tο woгk with you.

There are different waүs to help stop foreclosure quick . One is а forbearance agreement, а short- tөrm repayment plan with the һomeowner аgreeing to pay part οf thө аrrears immediately and then pаying the rest over a peгiod of sөveral months. This іs а difficult aгrangement for мost pөople, as thө make-up payments aгe іn аddition to the гegular mortgage payment eаch month.

Other options include tаking out a short refinаnce lοan, selling your home with a sһort sale, exeсuting a deed in lieu of foreclosure, οr getting a lοan modification of the eхisting mortgage.

Homeowners whο wish to stay іn tһeir home uѕually find thаt a loan modification is their best option. This iѕ а permanent change in tһe terms of yοur lοan wһereby thө lendeг may өither reduce the interest rate on the loan, or they мay extend the amortization perіod so thаt the monthly рayments are rөduced tο a more affordable level.


Loan modifications havө become a very popular mөthod tο stop foreclosure quick. Unfortunately, many lenders arө backlogged ωith delіnquent accounts, and thus thөy arө especially slow to deal with. Far too many homeowners havө been frustrated in theiг efforts to woгk οut а loan modification agreement with their lenders. They often get the runaround, bounced from one low-level clөrk to another. Thөse рeople are trained to tell you to send money right awaү, bυt they typically don't һave the authorіty to change any οf the terms of your loan. At best, іt сan be а veгy tiмe consuming prοcess of submitting documentation, reviewing and signing nөw loаn documents, and nursing the whole tгansaction through escrow.


Tһe abοve points are all sound reasons whү yοu prοbably should consider using the serνices of a professional loаn mοdification expert. Exрerienced professionals have the expertise to negotiate with the lender on your behalf аnd can sаve үou thousands of dollars over tһe life of the loan, not tο mention the peace of mіnd you'll enjoy bү һaving all the detаils attended to.

Bad loan Refi

By Jamie Anderson

Mortgage refi is the transaction where you refinance your mortgage. You get rid of an old loan and replace it with a new one. You can save money in the process but there are some risks involved as well. In short, people refi their mortgage to get a better deal. You can get a lower interest rate or a safer long term loan.

The first step to refi your mortgage is to compare your current loan with the new one. Refis cost money. You might get a good deal on paper but be sure to ask for the other charges that go with the refinancing. There is no such thing as a no cost mortgage refinance. Read the fine prints on your current mortgage and see if there are penalties for opting out of the loan early.

If you are planning on doing a refi, make sure you are going to spend the extra money on important things, and not on materialistic items. It is not safe to spend money on things that you don't necessarily need like a new ride or clothes. Think twice before engaging in this activity.

There are tons of available options for refi in the market. It is wise to shop around. Try to conduct a cost assessment to help identify key benefits of your refi. A financial professional can help guide you in the right direction.

Read the entire contract, all of the fine prints, and make sure you are fully aware of what you are getting yourself into. You do not want another bad loan looming. There should never be pressure to sign any deals that you are not comfortable. Getting a refi is something you should understand before signing the deal.

Most refi will result in lower monthly payment. Don't blow that money on unneeded items. Save on things like college, future retirements and so on. Don't think about short term goals like vacation or a new car. Material things are not important when it comes to saving money.

A bad loan refi will help save you money. By reading and understanding these steps, you'll land the best deal on a refi.

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Refi or refinance helps you save money. Find lots on our refi hub site.

How To Deal With Bad Credit Reports As A Real Estate Investor

By Doc Schmyz

Creditors and bankers approve or disapprove loans based on your credit worthiness. In some cases it also will determine your credibility to certain employers or landlords.

A good credit rating allows you to be able to apply for loans and/or credit cards easily. It will also mean that you will have more chances of getting certain jobs that may require a background check. You will be able to pay your bills on time.

Having bad credit reduces the opportunities of these things. You may get approved for a loan or for a credit card but with a higher interest rate. You are considered a "at risk" customer because the creditors are not sure if you will pay your bills on time. If you are trying to apply for an apartment complex the landlords may take a look at your credit score to determine if you will be able to pay your rent and utilities.

These are just some of the reasons as to why having a good credit score is important in today's world. However, what do you do if you happen to have a bad credit score? If you have bad credit it is important to fix the problem as soon as you can.

First, you must stop missing payments and make payments on time to avoid making things worse. So how do you do this? You pay your previous overdue debts as soon as possible. This cuts off the bad credit reports from creditors. It will not improve the actual credit score but it will put you on the right track to repairing your credit history.

Next, you can raise your credit score by opening a new savings or checking account. You should also apply for a secured credit card. This secured card will have a lower limit and a higher interest rate however,by paying the monthly credit card bills on time you will be able to see a significant rise in your credit history report.

Follow these steps you will eventually start to see a good credit rating. However, your past credit history will remain on the "books". This does not expire for 5 to 7 years. You must remember that it does take time to raise your credit rating. You must be patient and diligent to see a change.

That is why it is very important to make positive reports for your creditors. They then will pass those on to credit reporting agencies. Remember to pay your loans and credit cards on time in order to get a good credit rating. By doing so you will eventually end up with a good credit score and history. Never miss out on a future financial opportunity when they come your way.

About the Author:

Doc Schmyz has done real estate deals all over the US. He built a free free website shares Real estate investing information for all over the US. Find Real estate investing information by state

Ac Credit Card Warning

By Bob Jones

Just ask yourself: is the credit card working for you or are you working for your credit card? Most people's response to this question will depend on how they treat their "plastic pal" as credit cards are often known. As many people with burned fingers will tell you, they didn't realize that things had got so bad until too late, because most credit card companies try so hard to make themselves sound like a charity. Well, take it from me, they aren't.

But this is not an anti credit card campaign. They have their benefits - in the USA, for example, if you want to rent a vehicle, you have got to have a (major) credit card. But, consider this scenario:

You get an offer in the mail that sounds good, perhaps it's a new TV or fridge. But it costs $2,000. You have a credit card with a $5,000 limit, so you go out and buy the product right away. Often, this is how your repayment schedule will work out. Most credit cards charge a minimum percentage of the total balance (typically 2 percent) per month. Assuming the interest rate is 18 percent and you choose to repay the minimum amount of $40, $30 of that will go towards interest and only $10 will come off the $2,000!

Does it sound worrying? Well, it doesn't need to be. The moral of the tale is to use the credit card very, very carefully.

Credit Cards Dos and Don'ts

There is a great deal of truth in the advice that credit cards are not a substitute for not having money. Every time you use a credit card this should be the theme song playing in your mind. Furthermore, you would do good to remember the following too:

Dos.

1] Always plan for the purchases that you need and those that you only want. You need the essentials, but you just want everything else. The ability to differentiate might help you plan wisely.

2] If caught up in financial difficulties, it's always good to talk to the credit card issuer who might re-schedule your payments. If you just default, that only helps to build up an unfavourable credit history and you might find yourself being denied credit next time.

3] Unless it is an emergency, remaining within your credit limits will assist you a lot. If you must spend over the credit card limit, keep within manageable levels, say within 30 percent.

4] If your mailbox is full of information on credit cards with more favourable deals than you currently are enjoying, you may approach your issuer for a better deal. They want to keep you as their customer, so they will listen.

Dont's

1] Do not use your credit card to make household purchases. It's very expensive in the long run.

2] Do not just pay the minimum amount. You will end up paying exorbitant amounts of interest. The quicker you are able to clear the debt the better.

3] Never use the credit card to purchase things you can't afford.

About the Author:

If you are considering swapping or getting a Credit Card, have a look at the free advice on our web site about using Credit Cards wisely. Get a totally unique version of this article from our article submission service

What is Chapter 13 Bankruptcy?

By Alan Alder

The chapter of the Bankruptcy Code providing for adjustment of debts of an individual with regular income is known as Chapter 13 bankruptcy. Chapter 13 allows a debtor to keep property and pay debts over time, usually three to five years.

A chapter 13 bankruptcy is also called a wage earner's plan. It enables individuals with regular income to develop a plan to repay all or part of their debts.

Under a Chapter 13 bankruptcy, the debtor proposes a repayment plan that calls for installment payments to creditors over three to five years. If the debtor's current monthly income averaged over the last 6 months is less than the applicable state median, the Chapter 13 plan will be for three years unless the court approves a plan lasting longer.

A Chapter 13 Plan often must last for the full 5 years if the debtor's current monthly income averaged over the last 6 months is greater than the state median. In no case can a Chapter 13 Plan be proposed that lasts longer than 5 years. Creditors are prohibited by law from starting or continuing collection activity during the time the Chapter 13 bankruptcy is active.

There are many advantages a Chapter 13 has over a Chapter 7 liquidation bankruptcy. One big advantage is that a Chapter 13 allows individuals a chance to save and keep their homes when facing a foreclosure.

Individuals can stop foreclosure proceedings by filing a Chapter 13, and they then can cure any amount owed in arrears over the life of the plan. Nonetheless, filers of Chapter 13 must make all continuing mortgage payments during the life of the bankruptcy.

Another advantage of chapter 13 is that it allows individuals to reschedule secured debts (other than a mortgage for their primary residence) and extend them over the life of the chapter 13 plan. Doing this may lower the payments.

Chapter 13 also provides protection for third parties who are liable with the debtor on consumer debts. This means that co-signers on loans made with the debtor can be protected from creditor actions. The Chapter 13 Plan also acts like a consolidation loan where the debtor pays the Chapter 13 trustee who then disburses the money to creditors. Thus, filers of Chapter 13 never have contact with creditors.

About the Author:

Be sure to read Alan Alder's bankruptcy information regarding Chapter 13 in Tennessee. You can learn how to stop foreclosure in Nashville and stop other creditor actions from an experienced attorney.

Don't Get Hosed On Your Next Refinance

By Brian Armstrong

When you consider that most homeowners don't know too much about refinancing, we assume that people learn some of the key phrases that mortgage companies use to advertise their refinance programs. These phrases are things like "no cost", "no points", APR, streamline, closing costs, an many more terms that don't do much more than get people in the door. Once you're in the door, you will then need to determine whether or not you want to work with the loan officer you meet. Hopefully he or she is someone that was recommended to, but even if not, you can use the following tips to help you determine if the individual you're working with is good.

The first tip that I have for you is to do your due diligence by shopping around. Don't automatically go sign up with the first office you visit unless you've at least talked with a couple of other loan officers and know that the first one you visit is the best. Several mortgage companies now have a lot of valuable information on the internet and finding their websites can be relatively easy to do. This will help you do some priliminary research before you decide to go with one company over another. Getting several quotes will at least give you a better idea of what a good rate is. Be cautious of the traditional bait and switch where a company will get you in the door with a low rate only to have a lot of additional fees and "points". Make sure you're comparing apples to apples and get the entire cost, not just the APR.

The second tip is to check to make sure your existing mortgage does not have a pre-payment penalty which will penalize you if you refinance. Most lenders have a 120 day prepayment penalty which means that you wouldn't be able to refinance within that 120 days without paying the pre-payment penalty. This also means that you wouldn't be refinancing more than 3 times per year usually. Some lenders do have a 90 day prepayment penalty, but most are 120 days. You can usually find this out in the original documentation on your loan or by contacting the lender or group that services your loan.

This third tip may be the one that saves you the most money in the long run. The base rate that a lender charges is called the par rate. The rate that you pay is based on this rate. If you are paying upfront costs including loan origination fees and other fees such as appraisals, etc, then you should be able to get very close to this par rate. If your lender is doing a no-cost refi, this usually means he or she is making money of selling the loan at a higher rate which will typically cost you much more in the long run. If you are in a home where you plan to live for the remainder of the time left on the loan, such as a 15 year or 30 year mortgage, your most cost effective solution is to get that rate as low as possible which may also include "buying down" the rate. Keep in mind that this strategy works the best if you are refinancing because the rate is very low. If you're refinancing becaue of a cash out or some other reason and the rate is only so-so, you may decide to not focus as much on the rate because you'll most likely refinance again in the future.

Also, if you are in only a temporary situation or know that you will only be in your home for a shorter amount of time, instead of buying down the rate, your best option may be to lower your monthly costs as much as possible instead of coming up with more cash at closing. It may be that if the cost to buy down the rate is $2,000 which may save you $20,000 over the 30 years you'll have this mortgage, of course it's worth it. But you may also need to decide on the value of that same $2,000 if invested in another medium. For instance, how much would that same $2,000 be worth if invested in something like t-bonds or another sort of mutual fund, etc. Often, the interest rate on a mortgage is low enough that buying down the rate to get slightly lower may not be worth it. Run the numbers with a competent loan officer and you'll have a good idea of what may best help you.

The fourth tip is to reserve the credit check for the loan officer and broker you decide to go with. This shouldn't matter too much as the credit bureaus made some changes with how multiple inquiries within the same period of time affects overall credit score. The answer is that the credit adjusts as if it were only one inquiry. Also, to keep an eye on your own credit, you have the option to get a free credit report from each agency once per year. What this means is that if you request your credit report every 4 months, you'll have a good chance of seeing not only what is on it, but your score as well. The three agencies are Experian, TransUnion, and Equifax.

The fifth tip is to work with a loan officer that isn't going to "rip you off" when it comes to the backend payouts that the loan officer receives from the bank. This payout is called Yield Spread Premium (YSP). As an example, if the loan officer sells the rate for 1% higher than the par rate or the rate the lender is offering, then there may be a payout of a certain percentage of the loan amount paid to the loan officer broker. The loan officer or mortgage office will use this YSP to cover things like the loan origination fees, the appraisal, and any other misc. fees that are typically associated with a refinance. This is not a bad thing especially if you know about it. What happens too often is that the loan officer knows that you the borrower don't know anything about this YSP and so will increase the rate by more than is really ethical or moral. Don't be afraid to ask your loan officer what they are making on the loan. This is the same as asking what a loan origination fee should be. You may get a feel with this one question how honest and trustworthy your loan officer is. Also, the fact that present your awareness of the YSP to the loan officer will usually be an indication that you know enough about loans that you aren't a customer to be taken advantage of. This often may be enough and alone this tip may save you thousands over the life of the loan.

The main points to take away from this article are that you can save a lot of money if you're aware of the numbers involved and have a basic understanding of how mortgages work. If nothing else, you can use this information to help you identify a good mortgage broker or loan officer from a loan officer that does not have your best interests in mind. Refinancing doesn't have to be difficult, but expect to put some work in to this as your home is typically your most expensive purchase and is worth a little caution when dealing with the financial side of home ownership.

About the Author:

Brian Armstrong is a loan officer specializing in home loans in Salt Lake City. His focus has always been customer related as the value of word of mouth referrals is paramount to success in the mortage industry. You can also find Brian's videos about mortgages in Salt Lake City on his Youtube.com Channel.

A Modification Of Mortgage Can Stop Loan Foreclosure

By James Sopher

Have you fallen behind on your mortgage payments? Is your lender calling you and threatening to foreclose? If you want to keep your home, the best way to stop loan foreclosure is to negotiate a modification of mortgage agreement with your lender.

There are several different loan modification programs that are available to struggling homeowners. Some involve a mortgage rate modification. Others restructure the repayment period of the loan to extend the payoff term in order to lower the monthly payments. You may have wondered if you would qualify for a modification of mortgage. Well, thousands, if not millions, of homeowners have discovered that a modification of mortgage is the best possible means to stop loan foreclosure when their mortgage is in default. So, what conditions create a favorable scenario for you to pursue a loan modification agreement?

You tried to refinance but you couldn't.

Huge numbers of homeowners with adjustable rate mortgages have attempted to refinance. Unfortunately, most of these applicants were turned down. Ever since the housing market went over a cliff and lenders started collapsing, it seems to be almost impossible to get approved for a new home loan. The good news, however, is that many of those same homeowners were able to reach a workout agreement with their lenders, and get their existing loans modified in a way that they can now afford the payments.

You were laid off from your job or suffered some other financial hardship.

Hey, life happens, right? Some things are just beyond your control. Perhaps you got laid off from work. Or maybe you had an illness in your family that required financial support, or too much of your time that kept you from working. Auto accidents. Injuries. Unexpected events. The market affected your income. These are all legitimate reasons for getting behind on a mortgage that you were otherwise able to afford. Hardships like these are very often accepted by lenders to justify entering into a modification of mortgage agreement.

The value of your home has dropped substantially.

The real estate market has been in a steep decline and home values are falling all over the country. It is an unfortunate fact that in many cases, loan modification may not be an option once you get upside down on your home loan. People in this situation are sometimes better off doing a short sale. In any event, it is certainly worth your time to explore your options with a loss mitigation specialist. At the very least, they can help you to get approval from your lender for a short sale.

You simply can't keep up with the mortgage payments.

In this tough market, many homeowners, through no fault of their own, have seen their income drop substantially and can no longer afford the home they once were able to make payments on. You may be able to get a mortgage rate modification that makes your home more affordable. If not, a short sale could be an option.


Do you need help to stop loan foreclosure and save your home? If you want to stay in your home, a modification of mortgage agreement offers a much better alternative. Contact a reputable loan modification service that can negotiate on your behalf and save you $1,000's over the life of your loan. Most of them even offer a free consultation to help you determine what will work best in your situation. Explore your options, then don't waste any time getting help.

Short Sales Aren't So Tough - 5 Ways To Be Confident That You Will Get Your Short Sale Approved

By Brandon Fletcher

It seems that everyone knows someone who is facing losing their home to foreclosure. It can also be said that if you know a homeowner in foreclosure, the chances are their lender has told them that a short sale is the strategy to avoid losing the home to foreclosure.

While short sales can help homeowners avoid losing their home to foreclosure, it is a very complicated process and one that should not be attempted by the inexperienced.

If you are a homeowner who is facing foreclosure, a short sale might be for you. However you will need to be open, honest, diligent, cooperative, and you must comprehend that the following 5 tips are vital to your short sale being approved by the bank:

1. While you may be able in some instances to persuade a mortgage company to work with you, the intelligent homeowner knows that they may not be well versed in short sales and should let those who are trained in the market handle the short sale. Whether an experienced real estate agent, title processor or attorney, make sure the person managing your short sale really is knowledgeable in regards to the short sale process.

2. Make sure you stay actively involved and you cooperate fully with the timely submission of forms and other paperwork as may be needed by the lender. This includes that you, not your agent or advisor, but YOU write a clear and compelling Hardship Letter. Having someone else write your hardship letter may be the reason that your short sale request will be turned down.

3. Make sure you know what is expected of you. The bank is going to want a comprehensive short sale package and that more than likely includes a full financial forensic picture complete with bank accounts, tax returns and more. Your failure to give the bank this information may get your short sale request rejected.

4. The bank lent you money and they have every reason to collect. You have the obligation to reveal your assets and to liquidate them to reduce what you owe them. You cant ask them to take less while you are cruising around town in your Porsche. It just does not work that way. You must be ready to show a reason you are unable to pay them back (i.e. show a hardship.

5. Make sure you don't dilly dally until its too late before you request a short sale. Most homeowners don't do anything or simply wait too long to act. No real estate agent or attorney is a magician. They need time to make the short sale work. If you want to save yourself from enduring a foreclosure on your home then you must act in a timely fashion.

Short sales can take as long as 6 months to get accepted. These are just 5 simple strategies you can implement to give your short sale request the best chance for approval. This is not an easy process for lender or homeowner and your ongoing cooperation can mean the difference between a successful short sale or your home being sold at the Courthouse steps.

Whatever you do, take some action. If you want to try to manage a short sale on your own, some lenders are now letting homeowners do just that. If you want to find out more information about how short sales should be properly executed please visit our short sale information resource center for videos and tips as to how to successfully complete a short sale.

By thoroughly comprehending the short sale process you will be better educated to talk about things with your lender and you'll be more aware to spot inadequacies and mistakes in the process with any Realtor that you may choose to hire to represent you.

If you're a Realtor reading this, you too may want to check out our short sale information. It will help you learn how to successfully execute short sales and generate higher commissions.

About the Author:

If you're an agent, make sure that you can properly represent a homeowner in foreclosure. Learn the correct way to perform Short Sales.

Avoid Paying Too Much For Your Home Improvement Loan

By John Thomas Millner

Improving the current home you live in is a great way to increase its value, make it more livable and improve your lifestyle. Improving your home is now a big business that often requires more than just pocket change and some elbow grease. Home remodeling loans are becoming more popular as interest rates on borrowed money remain low.

Today's home improvements are becoming more expensive and many times home owner must take out a loan to cover the project or borrow money from some existing asset. Using borrowed money to remodel a home is a much easier option than buying a new home and moving for most people.

Larger home improvement projects that require financing could including adding an addition to your home, remodeling your home to add more space, upgrading the appointments in a kitchen or bathroom, installing a new furnace or cooling system, replacing a roof or installing siding or simply putting in a new swimming pool.

There are two general types of house improvement loans. There are unsecured home improvement loans and a secured home improvement loans. Within those two types there are many different loan vehicles which can give you extra money, though each has it's own good points and potential drawbacks. The differences among the loan vehicles are many, but let's focus on the two types of home improvement loans that are generally available:

Unsecured house improvement loan: An unsecured loan of any type involves you borrowing money without putting anything up for collateral. That means that if you can't pay the loan then there is technically nothing the bank can immediately take away from you. Unsecured loans are granted based on many factors, but a steady income and good credit score definitely help. Home improvement credit cards are technically unsecured loans that are meant to be used for home improvement projects. Unsecured loans are meant to be paid back over a short period of time and will almost always have a higher interest rate.

Secured house remodeling financing: A secured loan of any type is a loan which involves you offering something to the bank in exchange for the money. If you get a home improvement loan based on the equity in your home, then you are really trading part of the ownership in your house to the lending institution. As you repay the loan you are buying back your house. Secured home improvement loans usually involve larger amounts of money but do have a lower interest rate and offer a longer time to pay it off.

The type of loan you choose should be based on the size of your house improvement project, your credit score, your income and the amount of equity or collateral you have readily available. Remember that there are many different types of loans to choose from. You might also want to see if you are approved for an FHA Title 1 home improvement loan package from a local lending institution. Borrowing money to improve your home will generally raise the value of your home, though the value may not always exceed the amount of money you borrowed initially.

About the Author:

Before starting any important home improvement project you should consider your many different home improvement loan options and carefully pick the one that best fits your needs and financial situation.

Student Loan Consolidation Can Lower Monthly Payments

By Michael Fleischner

For students attending college or graduate school, paying student loans is a key concern. When considering how you are going to pay back your loans, you have many options available. If you are like most students, you have more than one loan. Student loan consolidation is a great way to simplify your repayment process.

Loan consolidation is essentially the process of taking multiple loans from different providers and paying that loan with a single umbrella loan from a single provider. There are significant benefits when you take this approach. The result is a lower payment amount and simple repayment process.

When taking advantage of loan consolidation, you have a single lender and one monthly payment. One of the benefits of a consolidated loan is that you often have a few repayments options to chose from. Make sure you research these options and decide which ones work best given your current ability to pay.

Student loan repayment options include standard repayment. This is where you make a fixed sum payment. Most student loan repayment periods are for ten or fewer years. If the monthly amount is too much for your budget, a second option is to extend your payment for a longer time period of time. The last repayment option is to pay a graduated amount during the repayment process, stepping up about every two years.

With selecting the graduated repayment option, your payments are made over an extended period. Keep in mind however that payments are not the same over the life of the loan. Every couple of years your payment amount increases. This graduated payment schedule is right for individuals who need the lowest payment amount when repaying their loans.

Once a loan is consolidated, your interest rate is fixed. This is true except when using the graduated repayment option. This means you are expected to make your payment each month. This is important when you are repaying a consolidated loan. By not repaying your loan in a timely manner you can damage your credit score.

A great way to make your payments is by deciding on the right repayment option to meet your need. One popular method is to set up a direct withdrawal from your account every month. This automatic process simplifies your payment and ensures that you never miss a payment. The sooner you set up the automatic repayment process the easier it will be to make your monthly payments.

When you begin repaying your student loans, consider loan consolidation. Student loan consolidation simplifies the repayment process and gives you flexible repayment options. Consider a budget that allows you to make your payments in a timely manner. More importantly, find a reputable lender who can work with you as you enter the workforce and seek to pay your debt.

About the Author:

Are you ready to learn more about Online Schools? Go now to The Student Loan Consolidation blog for helpful tips and advice on Student loan consolidation. Click here to get your own unique version of this article with free reprint rights.

How Does Private Money Work In San Diego?

By Morgan A. Scott

This question is often asked more than any other when talking about San Diego Hard Money. To start, hard money is also commonly called private money.

This article will discuss the general guidelines of San Diego hard money, specifics pertaining to purchase transactions, refinance loans, development/construction loans, and the general processing of a hard money loan.

If you will be working with hard money loans it is a good idea that you learn how they work. They are based in part on the value of the property. Therefore the loan to value (LTV) must be low.

Typically loans are written at 65% LTV and under. This would require that the loan amount, in comparison to the value, be under 65%. In addition, the property must be in marketable condition. Investors and private lenders may consider a property in a less marketable area as long as the LTV was low enough to offset the risk of lending the money.

Furthermore, the borrower who is taking the loan must be able to show the capacity and wherewithal to repay. Typically strong collateral, and a borrower's ability to repay will justify making a hard money loan.

As with any transaction, the fees,terms and rates will vary.

For some general insight, rates will vary anywhere from 9-15% depending on lien position, property type and overall risk of the transaction. The terms written are typically much shorter than conventional loans with terms ranging from 1-3 years on average. Fees will typically be anywhere from 2 to 4 times that of conventional loans.

Now that general guidelines have been established it is important to understand some of the varying information regarding the different types of transactions.

1. Purchase Transactions - The purchase transaction loan will require the lender to check the purchase agreement very closely. This will go for the appraisal as well. The appraisal is the way the value is determined. The purchase agreement is the determination for the market and the foundation of the transaction.

The amount of the loan, as well as the LTV, will be decided by using the appraised value or the purchase price, whichever is lower. This follows the theory that price determines the true value. The price is usually an arms-length agreement between a buyer and seller. Lenders will use this as a general model barring of course situations where true value is significantly higher that agreed price. If this is the case then a lender would usually need proof from the borrower that there is actually additional equity available upon purchasing the property.

Another way that purchase loans differ from typical transactions is the borrower must set aside the down payment and fees into an escrow account.

2. Refinance Loans - In contrast to purchase loans, lenders are concerned primarily with the appraisal, existing liens and corresponding loan amount. Different than purchase transactions, refinance loans are typically written so that the fees are incorporated in to the loan amount. To clarify, the fees are added to any amount that the borrower needs to net after cash out and/or repayment of existing loans.

3. Development Loans - The construction loan or the development loan has three basic features. The LTV often is contingent upon the future value of the property. The funds are distributed according to a draw plan.

And last but not least, an account called an interest reserve account is opened for the money to be deposited for repayment during construction. This is what makes a development loan different than other private money loans.

With all of these hard money loans, you will need some standard documentation, and possibly more specific documentation depending on the type of loan that you seek. Some standard documentation would include; appraisal, borrower's application, borrower's credit report, bank statements, income documentation, and a title policy.

Detailed documentation can include a draw schedule, purchase agreement, construction breakdown and the executive summary. Depending upon how complex the loan is going to be, it can take anywhere from 7 to 14 days for a typical private money loan.

In the end, a San Diego hard money loan is the best way to get the money for a non-conventional undertaking in the least amount of time. Ideally this has given you a basic understanding about the workings of a hard money loan.

About the Author:

Forget everything you thought you knew about California and San Diego Hard Money. These two websites Scottway Capital California Private Money and California and San Diego Hard Money shatter all the current myths and gives it to you straight.

Credit Bureau Fundamentals

By Vincent Polisi

In today's real estate market, it is more difficult than ever to qualify for a home loan. With delinquencies on the rise, your credit score needs to be good, if not stellar, for lenders to say yes.

Very few people understand everything they need to about credit. Even people with excellent credit are confused about exactly how credit works!

First, we will answer the most basic question of all. What precisely is a credit bureau?

A credit bureau is a huge repository that stores date on most Americans. This information includes names, social security numbers, addresses, employment and, of course, credit history.

People often believe that when something is incorrect in there credit file, that the credit bureau has caused this.

This is not true! Your lender is the one reporting incorrectly.

The credit agencies collect data, but they do not confirm that anything they report is accurate. They simply report the information given to them by the creditor. Unfortunately, this means that that the lender can report anything regardless of whether or not it is true.

People across the United States find false information in their credit bureaus every year. The damages caused by these errors can range from paying higher interest, credit denial and lost employment opportunities.

Without your participation, your credit file is a compilation of unverified data. Fortunately, the government has numerous consumer protection laws in place.

The most important of these to understand is that the only time the data in your credit bureau is confirmed is if you file a dispute with each of the three credit bureaus.

When a credit dispute is filed, it is up to the lender to prove that the item they are reporting is accurate within 30 days. If they do not do this, the credit bureau is required by law to delete the information from your report.

There are many keys to maintaining a high credit score. One of the most important is consumer knowledge and active involvement in monitoring your score.

About the Author:

Vincent Polisi is owner of Finance the Dream. Finance the Dream is the nations top Rent to Own and Lease Option program, offering homes throughout America. Finance the Dream prides itself on offering a comprehensive home ownership program its clients, including credit reporting and credit repair.