While the real estate market has largely recovered across the country and most people can expect their home to sell after only a short time on the market, there are several states where a record number of people are facing foreclosure.
Ohio, Georgia, Texas, and Florida are suffering from the recent economic chaos brought on by the decline of their local industries and the following focus on the service sector, which has fewer and lower-paying jobs.
Benefits for these occupations in the service sector are sometimes nonexistent or far inferior to those in the previous industrial sector.
Foreclosures and house devaluations are now widespread in the mid-Atlantic states due to the decades-long loss of manufacturing jobs and companies.
But in many of these cases, foreclosure might have been avoided if the homeowners hadn't fallen victim to some dubious lending schemes and businesses, choosing ill-advised financing options like interest-only loans that left these borrowers with little home equity when they needed to refinance or get a second loan to keep their house from going into foreclosure.
They had little to no equity as a result of the interest-only loans, therefore there was no collateral for the loan.
As a result, their homes went into foreclosure.
They had little to no equity as a result of the interest-only loans, therefore there was no collateral for the loan.
As a result, their homes went into foreclosure.
The monthly payment for an interest-only mortgage loan is the precise amount of interest that has accrued thus far on the loan; the principal is not affected.
While borrowers have the option to make extra payments at any time, any extra money goes only toward future interest payments, not the principle, and this interest-only provision only applies for the first five to 10 years of the loan.
This indicates that the borrower is not repaying the loan during the years of the interest-only option.
A mortgage for $100,000 in the year 2000 with an interest-only option for 10 years will still be in good standing in the year 2010.
If the borrower were to have trouble making these payments and discover that foreclosure was looming, they might be seriously at risk.
Let's say that the residence had a market worth of 120,000 in 2010.
The equity in the residence would be only 20,000 because essentially none of the 100,000 borrowed had been repaid.
However, if the monthly payment given to the borrower for the mortgage contained 200 for the principal;
The equity in the residence would be only 20,000 because essentially none of the 100,000 borrowed had been repaid.
However, the borrower would receive an additional $24,000 at the end of the ten years if each mortgage payment made to them included 200 toward the principal.
Since the interest on the debt would drop as the principal was paid down, the equity would really be considerably higher because the same payment would cover more principal and less interest.
If the borrower were to become ill, lose a spouse, lose their job, or experience other financial difficulties that resulted in late or missed payments, this additional equity may prevent a home from going into foreclosure.
The basic rule of thumb is that interest-only loans shouldn't be taken into account until you are absolutely certain that your earning ability will significantly grow five to ten months from now and your amount of debt will drop.
The risk of paying a little now and a lot later becomes less significant.
No chance of foreclosure will exist.
Profiting From The Best Credit Card Offers
Today's credit cards provide
You have a credit card, right? If so, you must be aware of the numerous special offers and programs that are now suspended in an effort to encourage you even more to use your credit card for numerous significant purchases.
The currency of today is the credit card. Using your dependable credit card, you may pay for services, go grocery shopping, and purchase food. Furthermore, using a credit card is the only way to complete a transaction if you want to purchase goods and services from one of the many online marketplaces and retailers.
Nowadays, almost everyone has one or more credit cards.
If they don't already have a credit card, more and more people are striving to get one since they understand the benefit of not having to carry cash when shopping.
You might potentially purchase the item by charging the cost to your credit card if you don't have enough cash to do so.
For their customers, credit card companies are giving a variety of installment promotions and pay-light options.
Credit cards are now also utilized for loans and cash advances.
You might quickly get cash from the ATM and use it as a cash advance or loan by using credit cards.
You may choose.
Every transaction made with a credit card is subject to interest charges, but did you know that you might avoid these fees?
You must pay the bill on time and in full if you don't want interest charges to be applied to your transaction.
By doing that, there would be absolutely no credit card charge and you would be purchasing the item for its full retail value.
Nowadays, almost everyone has their own credit cards.
And others who still don't drool over getting one.
The credit card market currently has an intriguing landscape, and competition is really heating up.
Undoubtedly, every credit card company is making every effort to keep up with competitors.
Without a doubt, every credit card company is making every effort to keep up with competitors and maximize market share.
As a result, there are many credit card options that are almost too alluring for consumers to pass up.
Some of these promotions are also so alluring that some consumers register credit card accounts only for the purpose of taking advantage of them.
Credit card products are now available with a variety of offers designed to draw in more customers in an effort to control the rapidly growing credit card market.
Today, a credit card might waive interest or provide subsidies to attract new customers.
That is the influence of rivalry.
Numerous credit card companies provide additional benefits in addition to the standard charging waivers.
One of them is cash advance service.
People can simply take money from cash advance transactions using their credit cards.
To avoid the imposition of interest and other additional fees, the sum would be handled as a regular credit card transaction and may be paid in whole and on time.
Today, credit cards can be used to pay for a variety of bills, including those for telephone, utility, and other consumer services.
The proper use of credit cards for bill payment is made possible by accredited and advised automated teller machines.
Almost all credit card companies are currently providing a variety of rewards programs to devoted customers.
These schemes encourage people to use credit cards for various types of transactions.
Each transaction involving the credit cards results in the corresponding number of points.
You have a better probability of receiving the rewards the more points you earn.
The most well-liked reward programs now are those that include flying.
Users of credit cards are now presented with a variety of miles point or flying incentive programs.
However, regular credit cards are not eligible for the scheme.
The frequent flyer incentives are available on specific credit cards.
Applying explicitly for such a program is encouraged.
If the prevalent credit cards currently on the market eliminate annual fees for frequent flier programs and other reward programs, this annual and membership;
That is the cost of participating in the opportunity to take advantage of the numerous offers that credit cards might offer.
Posing a Challenge to Identity Theft
The first and most crucial step you can take to better protect yourself from identity theft is to let go of the notion that it could never happen to you.
The likelihood of identity theft is far higher than most people realize, and if you don't actively take precautions against it, you'll be much more vulnerable to it than someone who does.
Identity thieves can often do so with little effort by obtaining the information they need to assume someone else's identity.
Protect personal information with care.
Do you shred documents before discarding them?
The papers you discard is the simplest source of information for identity thieves to use to take your identity.
If you discard credit applications, resumes, credit card and utility bill statements without shredding them, you might as well hand a thief your credit card, social security card, and driver's license.
Sometimes burglars would steal items from your mailbox to intercept your arriving or leaving mail.
With enough information, possibly gleaned from numerous bank statements or credit card applications, a thief could use your name to submit loan and credit applications.
Instead of using your personal mailbox to mail papers, you might want to think about using a post office mailbox.
Keeping Identity Theft at Bay
There are a few other strategies you can employ in addition to shredding paperwork before discarding it to safeguard yourself against identity theft:
Even if the credit card has expired, cut it into tiny pieces before tossing it away, and place the little parts into different garbage bags so that even if one bag is found, the card cannot be pieced back together.
If your credit card is lost or stolen, report it right away.
Receipts, tax information, credit card applications, mortgage information, and cancelled checks should all be destroyed before being thrown away. These documents should also be kept in folders in a secured file cabinet at home.
Don't rule out the potential that your housekeeper, babysitter, or visitors may take documents that are lying around your house.
Be sure to keep a close eye on your credit reports and credit card statements for any unusual activity or purchases that you are aware you didn't make.
Look for anything odd right away.
If You Have Experienced Identity Theft
Identity theft victims frequently spend months or years healing from the incident.
In addition to potential financial losses, victims' credit scores will be destroyed, requiring effort and time to rebuild.
The three major credit agencies do have procedures in place for repairing credit scores and reports after identity theft crimes have happened, but it does take a while for the mistakes to be fixed.
The victim will find it difficult to secure any finance until the report and score are repaired (from credit cards to student loans to car loans or mortgages).
Identity theft victims have even been detained for crimes they didn't commit in extremely severe situations.
Identity theft causes disruptions in your life.
Taking the necessary precautions is lot simpler than trying to restore your credit reports and credit score after your identity has been stolen.
Remove Your Fear of Mortgage Qualification
It can be a little frightening to not know if you will be approved for a mortgage loan.
But there are a few useful things you may do to improve your chances of approval:
After the final discharge of whatever bankruptcy you may have filed, you must wait at least two years.
Any foreclosure filings must be made three years after the foreclosure is completed.
You shouldn't have any late payments on your credit report during the past 12 months.
Even if you have excellent credit for numerous years but occasionally missed a payment, mortgage lenders will still take your application into account.
It shouldn't have taken more than thirty days for these payments to be late.
They might request a history of your rental payments if you are already renting.
Be prepared to demonstrate that you have consistently made on-time rent payments throughout a two-year period.
A letter of recommendation from your landlord will be quite helpful.
If the guaranteed government loan for your student loan is deemed to be in default, your application can be rejected.
If you have established an agreeable repayment plan and have complied with the new terms for a continuous year, the lender may decide to reconsider.
Pay any accounts on your credit record that may have been in collections before you apply for the home loan.
Any court-ordered judgements will be fully satisfied.
If any of the cases include child support, make sure you are current and caught up.
If your income is commission-based or you work for yourself, you must show evidence of a consistent income for at least two years.
The lender will then be able to calculate your average annual income correctly.
This enables them to assess your loan repayment capacity.
Your eligibility could be revoked if you can't present this proof.
When deciding whether you qualify for a mortgage loan, they can decide not to take your income from a second job into account.
If you have consistently made money from both occupations over the past year, they will solely take into account your income.
You may or may not want that information to be considered in their judgment if you received child support.
You must be able to show documentation that it is being paid consistently and on schedule in order to claim it as income.
In cases where child support has recently been granted, they may decide to exclude the payments.
Before requesting a mortgage loan, you must resolve any dispute you may be a part of.
This includes any ongoing legal issues, such as a divorce or any lawsuits you may be facing.
Lenders will examine your capacity to repay the home loan in great detail.
They will also decide how much of a monthly loan payment you can afford.
By utilizing the data you've supplied
They can fairly forecast if you are creditworthy by using the data you have provided and entering it into a calculation.
You are more likely to be accepted if their system determines that you are a strong credit application and should be able to pay the monthly amount requested.
Create a clean credit report before applying for a mortgage loan.
In order for a lender to decide to grant you a loan, you must have a spotless credit report.
Small stains on your report won't always disqualify you, but the interest rate will be greater.
Now that you know more about mortgage loan eligibility, you should be able to make an estimate.
