When borrowers run into financial distress and they can’t keep up with mortgage payment they make the mistake of using the services of Foreclosure prevention companies.
Avoid Foreclosure Prevention Companies
You don’t need to pay foreclosure prevention companies fees for foreclosure prevention help–use that money to pay the mortgage instead. Many for-profit companies will contact you promising to negotiate with your lender. While these may be legitimate businesses, they will charge you a hefty fee (often two or three month’s mortgage payment) for information and services your lender or a HUD-approved housing counselor will provide free if you contact them.
Worse still some of these companies purporting to stop your foreclosure immediately have been outed as scams.
It is a risky option to seek the services of a foreclosure prevention company.
written by Constantine Njeru
\\ tags: Avoid Foreclosure, Borrowers, Contact, Counselor, Financial Distress, Foreclosure Help, Foreclosure Prevention, Hefty Fee, Hud, Legitimate Businesses, Mistake, Money, Mortgage Payment, Prevention Company, Profit Companies, Scams
An adjustable rate mortgage is a mortgage that starts you off with a low interest rate for the first two to five years. After two to five years the interest rate resets to a higher market rate. But borrowers can just take the equity out of their homes and refinance to a lower rate once it resets.
Advantages Of Adjustable Rate Mortgage
They allow you to buy a larger house than you can normally qualify for and have lower payments that you can afford.
Disadvatage & Risk of Adjustable Rate Mortgage
When housing prices drop, borrowers tend to find that they are unable to refinance their existing loans. This leaves many borrowers facing high mortgage payments that are two to three times their original payments.
written by Constantine Njeru
\\ tags: Adjustable Rate Mortgage, Amp, Borrowers, Existing Loans, Housing Prices, Interest Rate, Low Interest, Mortgage Payments, Mortgage Rate, Risk, Three Times
Loan modification enables distressed mortgage holders to reduce their principal and interest. But statistics show many American mortgage holders cant tap into the benefit of loan modification.
According to a Wall Street Journal piece on mortgages,
Most delinquent mortgages aren’t available for sale because they are locked up in so-called private-label securities (the ones packaged by Wall Street during the boom) or in the hands of Fannie Mae or Freddie Mac.
What this means is, Although a mortgage company has issued the loan, the loan is owned by third parties. The rules governing this arrangement prevent the issuer from modifying the loans. A modification would subject the servicing firm to the risk of lawsuits by the owners of the securities.
Because of this tight arrangement the mortgage companies find their hands tied and they cant help their borrowers.
written by Constantine Njeru
\\ tags: American Mortgage, Boom, Borrowers, Delinquent Mortgages, Fannie Mae, Freddie Mac, Lawsuits, Loan Mortgage, Mortgage Companies, Mortgage Company, Mortgage Holders, Mortgage Loan Modification, Principal And Interest, Private Label, Qualify For Mortgage, Tap, Third Parties, Wall Street, Wall Street Journal, What This Means
Mortgage owners who cant keep up with monthly payments are making a drastic decision by walking away from their mortgages. Mortgage companies refer to it as strategic default.
Walking away from a mortgage can be in your own best financial interest, after all big real estate companies do this every day. But before you make that decision make sure you are familiar with your states rules on mortgage defaults. Some states are pro borrowers while others are pro lenders.
Some Risks and Cost associated with walking away from a mortgage
- In certain states, a borrower can be sued and personal assets can be subject to a deficiency judgment.
- Once a mortgage goes into default, a borrower’s credit rating is severely tarnished, making it more expensive, if not impossible, to qualify for any new form of credit.
- anything that involves a credit review, such as obtaining auto insurance or getting a new job, can be complicated.
Before you make the decision to walk away from your mortgage consider the above cost. Everything in life has risk
written by Constantine Njeru
\\ tags: Auto Insurance, Borrowers, Credit Rating, Deficiency Judgment, Drastic Decision, Financial Interest, Insurance, Lenders, Mortgage Companies, Mortgage Defaults, Mortgage Mortgage, Mortgages, New Job, Personal Assets, Real Estate Companies, Risk
As a credit card borrow you need to know the federal government guarantees you some rights that protects you from predatory lenders and collection agency.
Your rights as a credit card borrower are protected by FDCPA Act
FDCPA Act or in full The Fair Debt Collection Practices Act spells out certain guidelines to which collection agencies must adhere. Some highlights include: not calling a borrower between 9 P.M. and 8 A.M.; not using obscene language to threaten or intimidate borrowers; not calling a borrower’s employer without written permission; and not speaking to anyone about the debt expect the borrower, the lender, an authorized signer or representative, and the credit bureaus.
To download and read a full PDF article of the act visit FDCPA Act Page
For short summary of credit card debtors rights visit here and here
written by Constantine Njeru
\\ tags: Borrowers, Collection Agencies, Collection Practices Act, Credit Bureaus, Credit Card Debt, Credit Debt, Debt Collection Practices, Debtors Rights, Fair Debt Collection, Fair Debt Collection Practices, Fair Debt Collection Practices Act, Federal Government, Obscene Language, Pdf Article, Predatory Lenders, Usa Credit Card
Another word for financial crisis is making money. Because during financial crisis clever investors roam like vultures looking for opportunity to make money.
History of Making Money In a Financial Crisis
Back in the early 1990? George Soros pounced on British financial crisis, shorting the British pound and walking away with a cool US$ 1 Billion in the process. In the late 90′s he rode the Asian crisis all the way to the bank. The then malaysian Prime Minister referred Soros as “A Criminal”
When the US housing market crashed back in 2007 many sub prime moergage borrowers were crying but one hedge fund manager was having a laugh. John Paulson a hedge fund manager in New York had bet against the sub prime market and made billions.
The two above investors made money by shorting the market. Talk to your financial advisor and see how you to can profit from fianancial crisis.
written by Constantine Njeru
\\ tags: 1 Billion, Asian Crisis, Billions, Borrowers, British Pound, Financial Advisor, Financial Crisis, George Soros, Having A Laugh, Hedge Fund Manager, Investors, Making Money, Malaysian Prime Minister, Money Back, Money History, Opportunity, Pounced, Shorting The Market, Sub Prime Market, Us Housing Market
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