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The Fastest Way to Stop Home Repossession

By admin on Monday, May 31st, 2010 | Comments Off

Whenever you take out a loan to buy a house, you can face repossession. Falling behind on your payments can lead to the loss of your home, especially because mortgage companies or banks have very strict conditions of payment. They have to ensure that your debt does not rise beyond several months. However, there are situations when the borrower has failed to pay the mortgage for several months and thus he is faced with a difficult situation.

The mortgage company or the bank offers you the possibility to repay the money and get back on track, but for most people the period of time is too short and the amount of money is too large. Even if you want to pay off your debts, the financial situation you are in makes you unable to do so, and then you face repossession. To stop repossession, you need a considerable amount of money, which you can obtain by selling your house fast to quick sale investors.

Quick sale agents can give you the necessary amount of money in less than a week if everything goes according to plan. For example, I have missed my payments for several months now and unless I pay a considerable amount of money, I stand to lose my home. To stop repossession I need to sell my house really fast. But if I sell my house, where will I live and how will I get the money to buy another home? Well, this is easier than I thought. In order to stop repossession I must contact a quick sale investor. He or she will buy my house for cash, which I then use to pay my debts. Moreover, by contacting a quick sale investor to buy my house for cash, I retain the right to rent this house and even buy it whenever I want.

The investor will buy my house for cash in a couple of weeks and even sooner if time is pressuring me. I use the money I receive on the house to pay the debts and thus I stop repossession and with it the chance of never being able to take another loan again, all this without having to move out of my home. After I have finished with the loan problems, I can establish a short term or long term rental of my house, with or without the buy back option. The rental period depends on my financial status and the buy back option is suited to my financial needs as well. The monthly payments I have to make are lower than before.

There are many ways to stop repossession, but when losing your home is inevitable, selling your home fast is the easiest way to get rid of all your problems. Specialized companies and experienced people will guide you through the process and make sure that at the end of day, you will be able to live in your home and have a decent way of life, while trying to improve your financial situation.



Repossession

Mortgage Loan Approval Sometimes Need a Human Touch

By admin on Monday, May 31st, 2010 | Comments Off

In the mid 1990’s, the mortgage industry saw the credit score and its predictive power to assess a borrower’s ability to repay a mortgage step into the limelight as one of the most indicative factors for loan approval. After conducting statistical test after statistical test, Fannie, Freddie and Ginnie, the 3 big lending institutions, mandated that the credit score should be used in conjunction with manual underwriting to assess loan approval. Not too long after, automated underwriting systems (AUS) were developed that expedited and streamlined the underwriting process even further for lenders. A loan officer today simply inputs a borrower’s key information into the preferred underwriting automatic engine, such as his/her credit score, income, amount being borrowed, cash reserves, employment and housing history, and the value of the property. A response is returned by the underwriting engine recommending approval or denial for the loan.

If your loan receives a denial from an AUS, the buck doesn’t necessarily stop there. Life happens to people, and oftentimes it’s going to take a real live person understanding the nuances of a file to make an underwriting decision. That’s when your lender may suggest submitting your file to underwriting for a manual review. After all, not everything in life can be automatic, right?

A perfect scenario for a manually underwritten file would be someone who has no credit scores. No credit scores? Yes, it is possible. I’ve had customers who, being old school and always having paid for everything in cash, had never established traditional credit lines that reported to credit reporting bureaus. In a case such as this one, I had to submit non-traditional lines of credit to underwriting, something a machine can’t assess. This means I had my customer bring in bills he had paid on time for the past year to create a credit history. Typical ones used are car insurance, utility bills, cell phone bills and cable bills. You can expect to have to provide 3-4 different trade lines if you haven’t established a traditional credit history and score.

“The most typical reason we see a file submitted to us for manual underwriting is for either no credit score or an error reported on a credit report,” reflects Patricia Haynes, onsite Government Underwriter at Mortgage Investors Group. “For instance a judgement that doesn’t really belong to the borrower. Maybe it’s really Dad’s judgement reflected on the son’s report because Junior and Dad have the same name. That’s when I can overwrite an AUS decision because I have the documentation to support my decision to do so in front of me.”

Another very common reason to submit a loan for a manual underwrite is when your customer’s credit score is below 620 and gets an AUS denial. If this is the case with your loan, be prepared to provide more than average documentation about your credit history, as well as written explanations as to why your credit score has suffered recently. Maybe two years ago you had a financial meltdown due to a medical illness, but in the last twelve months, you can prove you are back on your game and have been repaying debt. However, your credit scores haven’t exactly caught up with your actions. An underwriter is going to piece together the different aspects of your file and see if it makes sense. Your home lender should be able to review your file and guide you as to what documentation an underwriter will want from you to grant you loan approval.

Naturally, if your credit score is really low and you have very little explanation for your state of credit affairs other than you failed to pay your bills on time, don’t hold your breath for loan approval. An underwriter can see through smoke and mirrors. After looking at files as long as they have, they can basically sniff out a loan that has merit from the ones that are too risky.

So, even as our world gets more and more automated every day, it’s nice to know that you can’t replace genuine common sense, even in the mortgage industry. And it’s nice to know that you can plead your case for credit worthiness to a real live human being.



Passive Income

Rent My Timeshare

By admin on Sunday, May 30th, 2010 | Comments Off

When it comes to selling a timeshare you have two options. You can sell it yourself or you can get help from a broker. If you decide to sell it yourself you may save some money by not having to pay a commission to a broker but you will also have to pay money out of pocket for advertising. If you’re selling yourself you need to let people know that you have something for sale. You can do this with newspaper classified ads or you can go online and use Craig’s list for free. Craig’s list is limited however because you’re only allowed to advertise in one city at a time. Another option would be to list your timeshare for sale on eBay. Selling it on eBay will cost you some money out of pocket but it will also expose your timeshare to thousands of potential buyers.

If you decide to sell your timeshare yourself, marketing and selling the timeshare is only half of the equation. After you find a potential buyer you have to negotiate price, get paperwork signed, and go through escrow and title etc. There is a lot of paperwork and you’ll want to make sure that it’s all done properly to avoid any potential problems.

To avoid dealing with all the potential problems and hassles that are involved with selling a timeshare yourself, you may want to consider going with a company that specializes in reselling timeshares. You will have to pay a commission to the company for selling the timeshare but there are a lot of benefits that come with using a broker for the sale. First, a brokerage will have a huge network of potential buyers for your timeshare which may result in a quick sale. They will also advertise the timeshare for sale on your behalf. Once a buyer is found the broker will then handle all of the paperwork and make sure the deal is completed properly. This can help you avoid a lot of potential headaches.

Another option would be to rent your timeshare to somebody. If you have work obligations that would make it difficult to use your timeshare or if you have a temporary financial setback you may want to get out of your timeshare for a year or two but then be able to use it again in the future. If you could find someone to rent your timeshare to, the rental would cover your expenses and allow you to use the timeshare in the future if that’s what you wanted to do. Many of the brokerage companies that buy and sell timeshares will also rent out a timeshare for you so that you can get some money for your timeshare and then use it again in the future.

So those are some options for you. Sell it yourself – probably not worth it to save a few bucks on commissions. Sell it using a brokerage – may cost you a few bucks but may also make for a quick sale and eliminates the responsibility of finding a buyer and making sure all of the paperwork is completed properly. Rent your timeshare – will negate or reduce the expenses until a time when you wish to use it again in the future.



Rent Back Fast

How To Rent A Home Or Apartment After Bankruptcy

By admin on Sunday, May 30th, 2010 | Comments Off

If you are planning on renting a home or apartment and have a past bankruptcy, there are some things you should know.

First, you need to determine who you are planning to rent from – meaning a private party or a property management company.

Why does it matter? Because each one usually approaches the rental process very differently. If you don’t know what their process is, you could end up being out $30-60 in credit report fees.

There are a number of strategies you can use to increase your chances of being approved for a home or apartment rental. I know, because I have used them when renting in the past – both from private parties and property management companies.

I’m not going to cover every single strategy here, as there isn’t enough room, but here’s one you can start with:

If you are applying for a rental with a property management company, find out what their rental criteria is. It sounds like common sense, but a lot of people submit a rental application, with a non-refundable credit report fee, only to be turned down because of their credit history.

Don’t let this happen to you! If you know what the criteria is in advance, and you find out by asking, you will at least have an idea of whether or not you can qualify.

If you have a bankruptcy it doesn’t necessarily mean you’ll be declined. Much depends on the property management company’s guidelines. For example, a property management company may still rent to you – but maybe they’ll ask for a higher security deposit.

In After Bankruptcy Credit Solutions I go into more detail on specific strategies you can use to increase your chances of qualifying for an apartment or home rental.

I do not have enough room in this article to discuss strategies when it comes from renting from private parties. However, it can be a much different experience than renting from property management companies.

In my experience, private parties tend to be less rigid in their rental screening process. This means there are some things you should NOT do during the rental screening process – otherwise you could end up being turned down pretty quickly. But I’ll save those for another article on renting after bankruptcy.

Copyright © 2005 Innovative Solutions Publishing, Inc. All rights reserved.

DISCLAIMER:

This information is designed to provide only a general overview of the subject matter herein.

This information is provided with the understanding that neither the publisher nor author is engaged in rendering legal, accounting or other professional advice. If legal or other expert assistance is required, the services of a professional should be sought.

Neither the publisher nor author shall be liable for any loss or damages, including but not limited to special,consequential, incidental or other damages, caused by the information contained herein.



Quick Property Sale

Mortgage Rescue Scheme Helps Houseowners Facing Repossession

By admin on Saturday, May 29th, 2010 | Comments Off

The government this morning announced a £200million mortgage rescue scheme that may help around 6,000 homeowners facing repossession. This new initiative is aimed at stopping thousands of vulnerable homeowners from losing their homes in England and will start from this Friday. The scheme is primarily targeted at families with children, the elderly, the disabled and households that have an income of less than £60,000 per year. This scheme will be available through local authorities. Scotland, Wales and Northern Ireland will shortly be announcing their own initiatives.

It is thought that the non-profit housing associations in England will buy the homes from homeowners who are about to lose their homes through repossession. Each case will be independent accessed and the homes will be bought by the housing associations at the market price. Applicants that are successful will be able to remain in their homes as tenants and will then pay an affordable rent. The non-profit housing associations will also offer homeowners a loan similar to the shared ownership scheme. They will purchase a share in the home and rent it back at an affordable rent. Homeowners will be able to buy back the share initially sold when their circumstances improve and their finances are resolved

Margaret Beckett, the Housing Minister said on the BBC Radio 4’s Today programme that “This is a scheme to help the most vulnerable families who if they lose their homes and it is repossessed would have a legal right to be rehoused by their local authority.”

Previous Government Help and Solutions provided

This new initiative announced to day is in addition to the Support Mortgage Interest Scheme (SMI) which Alistair Darling announced late last year and came into effect on the 5th January 2009. This package shortened the waiting time for Support Mortgage Interest (SMI) from 39 weeks to 13 weeks and increasing the capital limit to £200,000.

Gordon Brown’s recent announced that his government would underwrite a £1 billion scheme which he had agreed with eight of the largest mortgage lenders. This scheme will be available to anyone who loses their job or suffers from a loss of income. For example: a couple where the main bread winner has been made redundant and their partner continues to work, but they are struggling to pay the mortgage. Under this scheme any household with a mortgage of up to £400,000 will be able to defer some or all of their interest only payments on their mortgage for a period of no more than two years. To further qualify for this scheme you should have less than £16,000 in savings.

I do not believe that a £200million mortgage rescue scheme will be enough it might just be a start. This government has already thrown around £400 billion at the Banks in a serious attempt to rescue them. This new initiative should help to provide long-term stability to vulnerable homeowners who are losing their homes. This latest government initiative will also help the housing market from a flood of repossessed homes flooding on to an already depressed housing market with falling house prices. This initiative should protect homeowners from having to sell their homes to unscrupulous buy and rent back companies.



Real Estate Professionals

Alternatives to Bankruptcy and Home Repossession

By admin on Saturday, May 29th, 2010 | Comments Off

It can be an extremely fearful and depressing time in ours lives when the bank has threatened to swoop in and repossess our home. One of the most devastating things we could ever face in life is to be informed that the roof over us and our family will be claimed from us and that we can do absolutely nothing about it. This can result in deep fear and panic and can put a lot of excess pressure on our personal lives.

The truth of the matter is that there are actions one can take to avoid repossession from taking place. Unfortunately most home owners out there are unaware that there are in fact steps which can be taken, instead of simply letting the banks step in and having them repossess the property right from under their nose. If only more home owners out there were aware of the various steps one could take. If this was the case then the repossession rate in South Africa would undoubtedly drop significantly.

See below a list of steps which all home owners are able to take when facing repossession:

- Chat to your bank. This is probably the most crucial step that one could possibly take. If start to realize that you are battling financially and there may be a chance that you could be missing a payment or two in the up and coming month,  then call your bank and inform them of your predicament. Your bank will normally be very understanding and will do everything that they can in order to help you. Note that the last thing the bank would want to do is to reclaim you’re your property. If they were to reclaim the property it would generally mean them losing money as it is an extremely costly procedure for them to go through with.

- As for a ‘grace’ period. This is typically a 3 – 6 month grace period which the bank will give you whereby you don’t have to meet any bond repayments at all. The bank will grant this period in order to give the home owner a chance to sort their financial situation out and hopefully get things together. This is very useful to the home owner as it gives them time to; possibly sell another asset of theirs, get a job (or a higher paying one), wait for a payment from someone else which is potentially due to them but which may only be paid back to them a few months down the line. These are just a few examples. The idea is to buy yourself as much time as you possibly can from your bank. Banks are generally happy to work with you and grant you this time, so use it.

- Ask your bank for an extended loan term. The majority of home owners are typically on a 20 yr term . Most owners are unaware that they able to extend this term to a period of up to 30 yrs. By doing this your monthly repayments will be reduced slightly, however it is worth noting that that more interest will be paid in total over the entire term. When one is facing month to month cash flow problems, reducing your monthly bond repayments can be very helpful. This extended loan term can be reverted back to a 20 year term if desired.

- Ask to reduce the overall amount that you owe the bank. This can be a very helpful tactic if you can get it right. Call up your bank and ask them if they are able to reduce the overall debt amount that you owe. Believe it or not banks are often willing to go ahead with this as it results in them not needing to repossess the property, and hence will save the bank money. This also means that the home owner will continue to give the bank business as they will continue to pay at least a bond (even if it is a smaller bond) rather than no bond at all. Remember that repossessing a property can be extremely costly for the bank so it is usually an absolute last resort for them.

-Contact a repossession expert for help. This is probably one of the best routes to go down if all else fails. There are investors out there who actually specialize in purchasing  houses for cash and as a result have the ability to prevent the repossession of your home. These property investors are generally quite flexible and allow the home owner to remain in their property after the sale is complete. This ultimately means that the home owner will not be booted out of the property and may carry on with their lives. This can be an extremely valuable benefit as often the home owner may have children that are going to a school in the area, or their jobs and possibly even family may be close by, these are things in our lives that we generally like to live near to.

As you can see there solutions that exist out there. Provided that the home owner takes action immediately, the chances of preventing repossession can be high. Take action before the situation gets out of hand and you may be out of your unpleasant situation sooner than you think. It is highly recommended that you start searching for a service that buys houses for cash before its too late.



Rent Back Fast

Repossession UK – a Look at How People are Avoiding Repossession by Using

By admin on Friday, May 28th, 2010 | Comments Off

If you are already in the position were you home has actively been repossessed it still may not be too late to get help, even if you moments away from being evicted. In this situation if you have not managed to come to any agreement with the lender that will allow you to stay in your own home you can still approach company’s that specialise in dealing with repossessions, this can be a good alternative if faced with loosing your home completely and could help you stop repossession in its tracks.

If you were to approach one of these company’s they will likely be able to delay the eviction giving you more time to find the best solution to your current circumstances. The organisation will normally provide you with no obligation alternatives to help you avoid your repossession, most of them do not charge fees for assessing your situation, and will work very fast to help ensure that you are able to resolve your dilemma.

How they are able to resolve this for you is by being able to buy your home from you and allow you to rent it back from them which means that you wont have to leave the property.

Another option you may sometimes be offered is rent and buy back, were they will buy your home and rent it back to you at the market rate and if your situation improves you will have the option to buy it back from them

go now to http://www.avoidhomerepossession.co.uk/



Rent Back

Benefits of a Rent to Own Home

By admin on Friday, May 28th, 2010 | Comments Off

The benefits of rent to own homes are immense. Buying properties by the rent to own method helps in acquiring the ownership of the concerned homes, without dealing with the banks and mortgage companies.

The idea of the rent to own properties is growing very briskly in the real estate market. Some people choose this option just for the sake of checking out the neighborhood, prior to giving full commitment of purchasing the property. The overall outlook of the rent to own homes, make them a perfect solution for the investors.

Most of the people have found their ideal homes by the process of rent to own. Renting to own is fast becoming the preferred choice of the first time investors in the real estate market. This method is similar to the method used for the rent to own vehicles, wherein the vehicle is first leased, and during the lease if the person likes it, the decision of purchasing it is taken.

The fact that the down payments required in the real estate market are increasing with the time, will not be negated by anyone. In such a scenario, buying the rent to own homes is a much better choice, as the down payments required to be made in this method are very low.

Another important benefit of rent to own homes is that the individuals do not have to worry about the closing costs of the property. The agreement regarding the appropriate price of the house is done between the buyer and the landlord.

In some cases, the payments made towards the rent are accumulated by the landlord as payments towards the price of purchasing the property. In such cases, the landlord asks for a payment that is higher than a month’s rent. This is done for substitution of a large down payment. But, these rates are negotiable.

Another benefit of rent to own homes is, the renters can decide during the course of the lease about not buying the property in the future. This is permitted without any kind of repercussions.

The price of the concerned property remains the same throughout the period of the lease. The landlord is not permitted to increase the price during the course of the lease.

Rent to own investors have to keep in mind the ailments of buying property through the rent to own option. There are potential considerations in buying rent to own homes. This is because, the tenant buyer deals with an investor and not with any financial institution or bank, for this purpose.

The unscrupulous investor, who have a better understanding of the fundamentals of the real estate market, can cheat the new tenant buyers into signing a bad deal. Hence, it is always recommended that the buyers do a thorough review of the property before investing in it. The inspection of the property will result in a proper deal that will prove fruitful in the future for the tenant buyer.



Passive Income

2 Situations When Sale and Rent Back Is the Wrong Choice

By admin on Thursday, May 27th, 2010 | Comments Off

This article assumes you understand the sale and rent back process and will discuss 2 scenarios where selling and renting back your property is most likely not the best solution. If you are in these situations it is advisable you look at the alternatives which are suggested.

If you can reduce your monthly outgoings

Some people may find that they can reduce their monthly outgoings by consolidating their debts to a rate that is more affordable. This does not mean taking out more debts to pay off existing ones but getting all existing debts onto the best interest rate possible. If financial difficulties are causing you to consider sale and rent back it is often worth while looking at loan consolidation as a possible alternative.

This may allow you to keep ownership of your house but it does not guarantee that your future outgoings would be less than if you sold and rented back. If you are not sure what to do, it may be worth getting a rental quote from a rent back specialist (the good ones will give this free) and compare it to your potential outgoings if you consolidate your loan. This way you will be able to make a more informed decision.

When you want to get full market value for your property

If you want to get the best possible price for your property then sale and rent back is most probably not for you. Sale and rent back companies are not able to offer you 100% of the market value of your property due to the costs they incur buying it and the profit margin they need. Those companies that say they will offer 100% of the market value and rent your property back to you are most likely not telling the truth. They are trying to get their foot in the door and then will offer less. If they did offer 100% of the market value they could not survive as a business as they would incur a loss for every property they bought. Reputable sale and rent back companies normally offer up to 80% of the properties value.

You need to make sure you sell to a company that (1) is honest and upfront with you and (2) has a sound business model because if they go out of business there are going to be complications with you staying in your house.

If you want the best price possible for your property and do not need to stay in it then selling via an estate agent is the best solution. If you want the best price for your property, do not want to rent back and need a quick sale then a cash buyer is often the best solution. Many rent back companies can offer this quick cash sale service.

The bottom line is: sale and rent back is not the solution for those wanting full market value for their property and beware of companies that say they can offer this.



Rent Back

You Want an Efficient and Quick House Sale? Consider Us!

By admin on Thursday, May 27th, 2010 | Comments Off

When you want to sell your house, whether because you found a new job and need to move somewhere else, or you can’t afford the mortgage anymore, you naturally want it to be a quick house sale and to get the cash that you are expecting without further delays. Unfortunately, the reality rarely meets our expectations. Anyone who has been through this can tell you that selling your house is not easy and it usually takes longer than you would have thought. In an ideal situation, all you would have to do would be to call the real estate agent and the agent will show up the very next day with a buyer and in a few days the process would be over and the money would be in your bank account. However, the whole process usually lasts between three and six months, so you must be lucky in order to have the quick house sale that you dream of.

On the other hand, it is hard for most of us to give up our home, the place that we have lived in for years. Everyone has dear memories connected with their home and it’s hard to imagine a stranger living there in our place. The next logical question would be why people sell their houses, although they would still like to live there. The answers are diverse. Some people sell it because they want to move in another town and some people sell it because they just need the money or can no longer afford the substantial mortgage. For those who are part of the second category, the news is good. You can still live in the house that you have sold, if you decide to sell and rent back your house. This is a tempting option for those who don’t want to live in their beloved home anymore, but they need the money that they can get in exchange for it. Instead of paying a considerable sum for mortgage, you have the possibility to pay an advantageous rent that you agree upon. The “sell and rent back” concept is a new concept yet and that is why many people are not aware of it.

The times are quickly changing, as anyone can see. We no longer live in the same world that our parents and grand-parents lived in. In the past days, you got a job and worked there until you grew old. You got a house and you lived there for the rest of your life, raised your children and grand-children there. You got married and knew that it was for the rest of your life. Without judging if the changes were good or not, what we can certainly say is that things have truly changed. Nowadays, most of us change our job every few years (if not once or twice a year) and the divorce rate has increased as well. Nobody expects marriage to last for the entire life anymore. In fact, if the two persons discover that they don’t get along, it is better for them to take separate paths. So what happens with the concept of living in the same house for the rest of your life?

The key words today are “flexibility” and “liquidity”. You have to move quickly to get the things that you want in life. If you get a better job in another town, you have to be able move quickly. A quick house sale is what you need in such circumstances. Remember that when you own a property, most of your cash is stuck in it. Anyone who knows a little about investments would tell you that the minimal requirements for an investment is to be profitable and liquid, that means that you can quickly free the amount of cash invested in it. When you sell and rent back your house, you free up that cash and yet you know that you will be able to live in that house for as long as you want.

If you want to know more about the process, if you need expert advice, come to us. We can take care of selling the house for you and guarantee that it will be a profitable and quick house sale. If you choose the “sell and rent back” option, we also guarantee that we will rent back the house to you, at a convenient rent that you have agreed upon. Selling your house is a very simple process, with our help



Sell and Rent Back
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