pre-foreclosure

Typical Solutions for People Facing Pre-Foreclosure

Posted on by sust19125

A pre-foreclosure is the most critical stage of the foreclosure process. It is during this period that the homeowner has the opportunity to become current on delinquent payments or sell the home to avoid long-term damage to their credit rating.

When a borrower defaults on their mortgage and no longer has the ability to pay, the lender can elect to initiate legal proceedings.

Typically, lenders will send a letter via registered mail informing the borrower of the delinquency and informing them of their intention to foreclose on the property.

The pre-foreclosure letter includes specific details including the note balance, interest rate, penalties, late fees and a specific date by which the borrower must comply.

Lenders refer to this as the grace period. If you are able to pay the outstanding balance during the grace period, the lender will reinstate the loan and no further action will be taken.

If you cannot pay the full amount or unable to provide a satisfactory repayment plan your lender may offer other options to keep your house from falling into foreclosure.

Some aspects of foreclosure are regulated by state law and there are many variables in the pre-foreclosure process. However, lenders have some flexibility in reorganizing your mortgage note.

If you put forth serious effort into working with them, chances are they will provide you with better options and more flexible terms.

If you are currently in the pre-foreclosure stage and defaulted due to unemployment or health complications, your lender may offer you a Loan Modification.

Typically, the lender will reduce or suspend payments for a specific period of time and roll those payments to the end of the loan. This can be a costly option, so be certain you understand the ramifications if you decide to go this route.

If you owe more on your home than it’s worth and has no equity in the home, your lender may accept a Short Sale. Basically, this means the lender will accept less than what is owed on the note.

Short sales are somewhat tricky and best handled by a professional who has a thorough understanding of the process.

While it can be intimidating to work with your lender during the pre-foreclosure stage, it’s crucial to stay in contact with them and lay all your cards out on the table.

If you find it difficult to work with your lender, you can obtain assistance with pre-foreclosure negotiations through the U.S. Department of Housing and Urban Development. HUD agencies are located across the U.S. and provide free housing counseling to all U.S. citizens.

By becoming proactive in the pre-foreclosure stage, you will have more control over the final outcome. Ignoring the situation will leave you with few options and little to no bargaining options.

Make that call to your lender before it’s too late.…

money power

Control Your Money to Control Your Life

Posted on by sust19125

The Hilton family has it. Martha Stewart has it. Donald Trump appears to have it. And you should too. It’s not just money I’m talking about.

It’s power.

And I don’t mean power over others or power to control the world; I mean power over your own life.

Take a look at your life.

Do you pay rent? Your landlord is in control. Do you owe on your car? Your titleholder holds the reins. Are you in debt on a credit card? Your creditor owns a piece of you.

While owning a home is an investment and increases your money power, owning expensive TVs, stereos, designer clothes and jewelry (unless it will increase in value) does not.

Those are the type of things that actually decrease your money power. But there are times when spending more can save you money.

For example, when buying quality products. Better products generally last longer or have a better warranty than cheap ones.

It’s all a matter of buying the best when it’s something you really need or plan to use and keep for a long time.

It may be tricky, but with a little money know how you can stay ahead of the spending/saving game.

Think of all the energy you expend to keep yourself in debt, especially if you work in a job you don’t like or, even worse, one you hate. If a crisis hits, are you financially prepared or do you fall to the mercy of those who have power over you?

There are reasons poor people stay poor and middle incomes can never get ahead. Much of it is in our way of thinking and how we feel about money. Do we respect it and believe we deserve it or are we afraid of it or feel guilty for wanting it?

Ending the cycle

Many years ago, I found myself in a situation that turned my life around. My brakes were shot on my old broken down car, which I couldn’t afford to get repaired, causing me to run a red light and hit another vehicle.

My car was totaled and I couldn’t afford another. For three months, until I saved enough money to buy another cheap, junky car, I was forced to take the bus or have my roommate drive me to work.

From that moment on, I vowed to save enough money so one day I’d be the one in control and I’d never be caught in such an inconvenient, humiliating situation again.

With enough money socked away, you don’t have to put up with unscrupulous business people.

With substantial savings to fall back on, your life becomes much easier and you don’t have to worry about small disasters disrupting it.

If your car needs to be fixed, you can get it fixed right away and take it to a reputable place that might charge a little more (less in the long run).

If the clothes washer breaks, you don’t have to pay that grungy service man $250 to fix a $50 washer, you can buy a new (or good used one) and tell him where to put his socket wrench.

Respect money, respect yourself

If you respect money, when it’s time to buy a house, you’ll have enough saved for a down payment and you’ll enjoy good credit – which means you’ll pay lower interest rates and charges. You can afford a better car (maybe one with a warranty).

You can buy better things that last longer. You can even afford to quit your job if you hate it, and take the time to find a better one or start your own business.

You’ll be able to break the endless cycle of spending more and getting less. (Remember, that’s why the poor stay poor.)

Though it’s not something you can do overnight, you can build your money power by doing small things each day. Start a “power” fund with just a few dollars.

Take that first baby step, and it will lead to another and another until you’re the one in control. And that’s the way it should be.

No one should control your life. Not the banks, credit card companies, credit rating bureaus, or even the government.

They only have power over you if you give it to them. Don’t be their victim.

I suggest everyone read (or listen to an audiobook) “The Total Money Makeover” by Dave Ramsey. It changed the way I view money and it changed my life. It can do the same for you.…

credit cards accounts

A Few Things You May Not Know About Credit Card Accounts

Posted on by sust19125

Credit cards are a convenient resource when you need to purchase something without having the money to do so.

However, there are some pertinent facts regarding credit card accounts that many consumers are simply not aware of.

Selecting the best credit card for your use requires some research and comparative shopping. Credit card companies offer a variety of credit limits, along with a variety of annual fees.

One card might offer you a credit limit of $300 with an annual fee of $59, resulting in an actual credit limit of only $241.

Another card might tempt you with a $700 credit limit; however, their annual fee is $175, leaving you with only $525 in credit. It is important to note that these fees are added to your account immediately upon your being approved for the card. Even if you never use the card, you are still responsible for the annual fee.

Some individuals sign up for a lot of credit cards simply for the prestige of having them. What they don’t realize is that doing this can actually be detrimental to their credit rating.

This is because the collective credit limit for all of the cards combined is regarded as potential debt. Even if these individuals never get close to reaching the limit on any of their cards, credit bureaus often base their ratings on the possibility alone. The chance that you will one day overextend yourself overrules the fact that you have not yet done so.

For example, suppose you have ten credit cards in your possession, with a combined credit limit of $8,000. You use the cards selectively, maintaining an ongoing balance of no more than $1,500 at any given time.

One day you apply for a loan or a mortgage, and your application is denied because your debt is greater than your income. This is because your potential debt is being considered, rather than your actual debt.

Ideally, the number of credit cards in your possession should be limited to two or three at the most. Pick out the most advantageous ones, and get rid of the others. There is one crucial thing to remember, however.

Simply cutting up the cards and throwing them away is not enough. You need to contact each credit card company and close the account.

If you do not take this step, credit bureaus will continue to include the credit limits for the cards you’ve destroyed as part of your potential debt.

Charging more than your credit limit on any given card can result in an over the limit fee being added to your account. The problem is, you may be exceeding your credit limit repeatedly without even realizing it.

Suppose you have a $600 credit limit on your MasterCard. You currently owe $500 on the card, leaving $100 available. You go shopping and spend $97.50, which seems fine because you’re still $2.50 under your limit.

What you’ve forgotten, however, is that by the time you receive your next statement, interest charges will have been added to the account for an amount exceeding the $2.50 that is available. Suddenly you are over your limit, and many credit card companies will automatically hit you with an over the limit fee in addition to the interest.

When used with care, credit cards can be a big help in times of need. The main thing is to familiarize yourself with each company’s terms and conditions so that you know what you’re getting into even before you sign that application.…