One of the things that is happening to more people than we would like is foreclosure, and in the United States right now, foreclosure is an ever present possibility. Trying to keep foreclosure from happening, after the dominoes have begun to fall, is not exactly easy, but like any disease, the sooner it is caught, the better the chance you will make it through. Depending where you are in the foreclosure process, it may not be that easy to get out of this unfortunate situation.
If you are early on in the default process, you can get back from bankruptcy because you have not missed more than one or two mortgage payments and lenders have not had to work hard to get everything back on track.Of course, this begins to disappear the farther you get into the process. As the debt increases, so to do the legal costs of the bank. At this point, ignoring the problem will fix nothing.
The first moment you think you are going to miss a mortgage payment, you need to contact the bank and let them know. By contacting them, you are alerting them to the fact that you may be late on the payment this month, and that will actually get you a lot of lead way as a result.
Now, it should be noted that this alone is not going to fix your mortgage problems and if you continue to forget to pay your mortgage, no matter how many times you call the bank is going to come for their loan.
What else can you do to prevent your house from going into foreclosure, helping you keep your home.
1. Loan Modification: If you can change at least one term of your mortgage, you can bring the loan current. This is done by capitalizing the interest that is owed, extending over a fixed period on the loan. You can also lower the interest rate to reduce how much you pay each month.
2. Repayment Plans: When you give a written agreement to the borrower, you can shoe them you will have the loan up to date in a certain amount of time. Usually this will not be over a year and a half, and it is used for borrowers who have suffered layoffs, illnesses or more.
3. Forbearance Agreement: In this agreement, the lender reduces or suspends payments for a certain amount of time. Usually, this will be no more than three months. This is used to help people when they are in short-term unemployment situations, illnesses or other events that disturb their regular payments.
4. Preforclosure sales: These are a bit more drastic but they are good for owners with home equity still on their homes because whatever is left after the home is paid off, goes to them.
These are just a few of the things that can be done to prevent foreclosure from happening to you. They may not work, and they are Band-Aid solutions, but they should buy you enough time to help you out in the long run.
If you or anyone that you know would care for more information regarding this post, feel free to visit http://www.creditrepairbydrjen.com
Thursday, July 16, 2009
Monday, July 13, 2009
How many years should you have your mortgage for?
When the housing market is hot, it is not uncommon to see potential home owners thinking about getting a 50-year mortgage to lower the cost of mortgage payments. Like any new style of doing something, there are those who swear by it and those who do not. However, when looking at mortgages, how long is too long? Generally, 25 years is the standard rate for a mortgage as it gives relatively low interest rates, while at the same time not cementing the homeowners into a long mortgage that they may not be able to get out of.
Looking at the 50-year mortgage, it is easy to see the appeal of having a lower mortgage payment. Looking at a $300,000 fixed rate mortgage of six percent interest, the monthly payments for the mortgage will be $500, before interest. This wonderfully low payment comes at a price, and it is committing to half a century of mortgage payments, twice as long as most people. If bought in the right time, you could end up paying much less than what your property is worth. However, getting a mortgage when the market is low does not often entail 50-year mortgages. Typically, this will be done when the market is high and mortgage prices are inflated. As a result, for 50-years you can be paying too much for your house, even as it dips in value due to extraneous circumstances.
Many potential homeowners will go with a 30- or 40-year mortgage instead of a 50 year mortgages. However, while they are shorter and have the benefits of low mortgage payments, they entail long mortgages for houses that may dip in value.
As a potential buyer, you never want to force yourself into a commitment that could last longer than you. Getting a 50 year mortgage may seem like a good idea because of the low mortgage payments, but you may think differently in 10, 20 or 30 years. You will be paying your mortgage twice as long as everyone else. If you are 30 years old when you get this mortgage, you are going to be paying it until you are 80 years old! That is 15 years longer than you will most likely be working, which puts a big strain on your finances when you are living off of your pension or retirement savings.
Getting a long mortgage, longer than 25 years, can seem appealing but there is a lot more to consider than just low mortgage payments. If you are planning on getting a house worth more than you can afford over 25 years, it may be a better idea to get something in your price range.
Never try to get a mortgage longer than 30 years, you may end up paying much more than you ever expected to. It is best to go around 20 years, giving yourself ample time to pay it off, without getting too deep into the length of the mortgage.
If you or anyone that you know would care for more information regarding this post, feel free to visit http://www.creditrepairbydrjen.com for more information.
Looking at the 50-year mortgage, it is easy to see the appeal of having a lower mortgage payment. Looking at a $300,000 fixed rate mortgage of six percent interest, the monthly payments for the mortgage will be $500, before interest. This wonderfully low payment comes at a price, and it is committing to half a century of mortgage payments, twice as long as most people. If bought in the right time, you could end up paying much less than what your property is worth. However, getting a mortgage when the market is low does not often entail 50-year mortgages. Typically, this will be done when the market is high and mortgage prices are inflated. As a result, for 50-years you can be paying too much for your house, even as it dips in value due to extraneous circumstances.
Many potential homeowners will go with a 30- or 40-year mortgage instead of a 50 year mortgages. However, while they are shorter and have the benefits of low mortgage payments, they entail long mortgages for houses that may dip in value.
As a potential buyer, you never want to force yourself into a commitment that could last longer than you. Getting a 50 year mortgage may seem like a good idea because of the low mortgage payments, but you may think differently in 10, 20 or 30 years. You will be paying your mortgage twice as long as everyone else. If you are 30 years old when you get this mortgage, you are going to be paying it until you are 80 years old! That is 15 years longer than you will most likely be working, which puts a big strain on your finances when you are living off of your pension or retirement savings.
Getting a long mortgage, longer than 25 years, can seem appealing but there is a lot more to consider than just low mortgage payments. If you are planning on getting a house worth more than you can afford over 25 years, it may be a better idea to get something in your price range.
Never try to get a mortgage longer than 30 years, you may end up paying much more than you ever expected to. It is best to go around 20 years, giving yourself ample time to pay it off, without getting too deep into the length of the mortgage.
If you or anyone that you know would care for more information regarding this post, feel free to visit http://www.creditrepairbydrjen.com for more information.
Monday, June 29, 2009
How do you avoid identity theft?
Identity theft is a very serious problem across the planet. It is the fastest growing type of crime in North America and it is affecting thousands of people every day. It is also one of the most preventable types of crimes because so much can be done to keep you from being a victim. You can prevent car jacking by locking your doors, but that is all you can do. With identity theft, there are literally dozens of ways to keep yourself from losing your identity to a thief.
The problem may be that people do not understand how widespread the problem is or how much it has affected economies across the planet. Here are some statistics to show you just how bad identity theft is and how much it can hurt your credit and the economy.
In 2006, identity fraud cost the United States $15.6 billion In 2006, the average fraud per person was $1,882. In 2003, only 15 percent of victims found out that they were hit with identity theft because of the proactive actions taken by a business. The average time it takes for a victim to resolve the problems created by identity theft is 330 hours. Nearly three-quarters (73 percent) of identity thieves use the information they obtain to get a credit card in the victim’s name. The emotional impact of identity theft has been found to be similar to violet crime.
A significant example of how bad identity theft can get for a person comes from a Ms. Brown who told a U.S. Senate Committee Hearing that one person impersonated her and did the following:
Bought $50,000 in goods and services
Completely destroyed her credit rating.
Engaged in drug trafficking in Ms. Brown’s name.
Had a warrant put out for her arrest in Ms. Brown’s name
Created a prison record in Ms. Brown’s name
Was booked into prison under Ms. Brown’s name.
Elsewhere in the world, there is significant damage caused by identity theft. In Australia, identity theft costs about AUS$4 billion per year. In the United Kingdom, identity theft costs the economy of the UK 1.2 billion Pounds each year.
Identity theft is a serious problem that more people need to be aware of. It can not only cost you your credit rating, it can ruin your life. Like Ms. Brown who was nearly arrested because someone was committing crime in her name, you could find that losing your identity is not as simple as a lower credit rating. You have to take time to explain to companies you did not buy from them. You have to have your credit errors repaired and that can take months, and you have to ensure that the identity thief is caught so that they don’t keep using your credit. It is much easier to be proactive and not allow yourself to become a victim of identity theft. It is easier than you think to stop identity theft in its tracks.
If you or anyone that you know would care for more information regarding this post, feel free to visit http://www.creditrepairbydrjen.com
The problem may be that people do not understand how widespread the problem is or how much it has affected economies across the planet. Here are some statistics to show you just how bad identity theft is and how much it can hurt your credit and the economy.
In 2006, identity fraud cost the United States $15.6 billion In 2006, the average fraud per person was $1,882. In 2003, only 15 percent of victims found out that they were hit with identity theft because of the proactive actions taken by a business. The average time it takes for a victim to resolve the problems created by identity theft is 330 hours. Nearly three-quarters (73 percent) of identity thieves use the information they obtain to get a credit card in the victim’s name. The emotional impact of identity theft has been found to be similar to violet crime.
A significant example of how bad identity theft can get for a person comes from a Ms. Brown who told a U.S. Senate Committee Hearing that one person impersonated her and did the following:
Bought $50,000 in goods and services
Completely destroyed her credit rating.
Engaged in drug trafficking in Ms. Brown’s name.
Had a warrant put out for her arrest in Ms. Brown’s name
Created a prison record in Ms. Brown’s name
Was booked into prison under Ms. Brown’s name.
Elsewhere in the world, there is significant damage caused by identity theft. In Australia, identity theft costs about AUS$4 billion per year. In the United Kingdom, identity theft costs the economy of the UK 1.2 billion Pounds each year.
Identity theft is a serious problem that more people need to be aware of. It can not only cost you your credit rating, it can ruin your life. Like Ms. Brown who was nearly arrested because someone was committing crime in her name, you could find that losing your identity is not as simple as a lower credit rating. You have to take time to explain to companies you did not buy from them. You have to have your credit errors repaired and that can take months, and you have to ensure that the identity thief is caught so that they don’t keep using your credit. It is much easier to be proactive and not allow yourself to become a victim of identity theft. It is easier than you think to stop identity theft in its tracks.
If you or anyone that you know would care for more information regarding this post, feel free to visit http://www.creditrepairbydrjen.com
Thursday, June 11, 2009
Credit scores broken down.
Only a few people actually know their credit score, which is unfortunate, and it seems even less know what their credit score means. Many simply say “I have good credit”, or “My credit is decent” but do they know what the actual score means? When they say they have a credit score of 651, is that different from saying a credit score of 551 or 751? If people knew more about their credit scores, it is likely they would be more careful with their credit as a result. Since many people don’t know what those numbers mean, we will break down credit scores going from bad to good.
If you have a credit score that is 300 to 400 then your credit is abysmal. There is no other way to put it. You have destroyed your credit either through poor credit management, foreclosure or bankruptcy. You have a long road to climb to get your credit back to where it should be and you are not getting any type of loan, credit card or mortgage any time soon.
If you have a credit score that is 401 to 500, then your credit is very poor. You are not going to be getting credit and if by some chance you did, you will have a very high interest rate. Generally you will have this type of credit score if you have been late many times with bills, are using up most of the credit that you have, or have suffered defaults on loans or bankruptcy. While not as bad as 300, you still have a lot of work to do to fix your credit.
If you have a credit score that is 501 to 600, then your credit is fair. You can get some loans but you will have higher interest rates because of your slightly poor status with your credit. If you had perfect credit and suffered a bankruptcy, then your credit score will be in this range. Generally it is not too hard to start improving your credit from here with keeping your bills current, not using too much credit and ensuring no defaults on loans.
If you have credit score that is 601 to 700, then you have good credit. This is where the majority of people are with their credit. You can get pretty much any loan you need and the interest rates will be favorable. You still have some work to do with your credit score but you can easily get there with paying your bills on time. You want to be at least in this range with your credit score.
If you have a credit score that is 701 to 850, then you have excellent credit. You can get any loan you want and you will have very favorable terms and low interest rates. You just need to keep your credit clean at this point and you will be enjoying good credit for the rest of your life.
By knowing where your credit lies in terms of credit scores, you can then begin improving it or maintaining it.
If you or anyone that you know would care for more information regarding this post, feel free to visit http://www.creditrepairbydrjen.com
If you have a credit score that is 300 to 400 then your credit is abysmal. There is no other way to put it. You have destroyed your credit either through poor credit management, foreclosure or bankruptcy. You have a long road to climb to get your credit back to where it should be and you are not getting any type of loan, credit card or mortgage any time soon.
If you have a credit score that is 401 to 500, then your credit is very poor. You are not going to be getting credit and if by some chance you did, you will have a very high interest rate. Generally you will have this type of credit score if you have been late many times with bills, are using up most of the credit that you have, or have suffered defaults on loans or bankruptcy. While not as bad as 300, you still have a lot of work to do to fix your credit.
If you have a credit score that is 501 to 600, then your credit is fair. You can get some loans but you will have higher interest rates because of your slightly poor status with your credit. If you had perfect credit and suffered a bankruptcy, then your credit score will be in this range. Generally it is not too hard to start improving your credit from here with keeping your bills current, not using too much credit and ensuring no defaults on loans.
If you have credit score that is 601 to 700, then you have good credit. This is where the majority of people are with their credit. You can get pretty much any loan you need and the interest rates will be favorable. You still have some work to do with your credit score but you can easily get there with paying your bills on time. You want to be at least in this range with your credit score.
If you have a credit score that is 701 to 850, then you have excellent credit. You can get any loan you want and you will have very favorable terms and low interest rates. You just need to keep your credit clean at this point and you will be enjoying good credit for the rest of your life.
By knowing where your credit lies in terms of credit scores, you can then begin improving it or maintaining it.
If you or anyone that you know would care for more information regarding this post, feel free to visit http://www.creditrepairbydrjen.com
Monday, June 8, 2009
How much debt should you have on your credit card?
Understanding everything that makes up your credit score can be a lot to take in. You have to figure out a variety of items, including how many bills you have been late on, how often you have tried to get credit, how many credit cards you have, how much you owe compared with how much you make and more. One thing that you can work on that will help your credit score is paying down your credit cards.
Most people think that you have to completely pay off your credit card, but the truth is that you only need to pay it down a little bit. So, how much should you pay down your credit card? Should you pay 90 percent off? Maybe 20 percent? What is the best amount?
Your credit cards have a lot to do with your credit score. If you fall behind on payments for your credit cards, then you will find your credit score drops, as well as your interest rate increases. If you owe too much on your credit card, your credit score will drop. If you have too many credit cards, or too few, your credit score will drop. They are great things to have when you have to purchase items, but they can be a pain too when they get out of hand.
So, to go back to the previous question of how much you should have on your credit card, generally if you can keep it to 30 percent and under, you will be in good shape. For example, if you find that your credit card has an credit limit of $1,000 and you owe $800 on it, then you have used 80 percent of your credit limit. That hurts your credit. However, if you have only spent $250 on it, then you have only used 25 percent of your credit limit.
To lower how much you owe on your credit card, there are two methods by which you can go by. The first is to actually start paying your credit card off. By saving money and cutting costs, as well as limiting how much you use your credit card, you can lower how much is on your credit report.However, there is a second way that you can lower the percentage you owe on your credit card without paying anything off. All you have to do, and make sure you have a good credit score, is to increase your credit limit. For example, if you owe $800 on a $1,000 credit limit card, you owe 80 percent. However, if you raise your credit limit to $10,000, then you will only have eight percent owing on your credit card.
Paying off your credit card is very important. All you have to do is to make sure that you do not owe too much on your credit card. Owing too much can hurt your credit score, and that can cause you to have higher interest rates. So try and increase your credit limit, pay off your credit card and limit how much you use your credit card.
If you or anyone else that you know would care for more information regarding this post, feel free to visit http://www.creditrepairbydrjen.com
Most people think that you have to completely pay off your credit card, but the truth is that you only need to pay it down a little bit. So, how much should you pay down your credit card? Should you pay 90 percent off? Maybe 20 percent? What is the best amount?
Your credit cards have a lot to do with your credit score. If you fall behind on payments for your credit cards, then you will find your credit score drops, as well as your interest rate increases. If you owe too much on your credit card, your credit score will drop. If you have too many credit cards, or too few, your credit score will drop. They are great things to have when you have to purchase items, but they can be a pain too when they get out of hand.
So, to go back to the previous question of how much you should have on your credit card, generally if you can keep it to 30 percent and under, you will be in good shape. For example, if you find that your credit card has an credit limit of $1,000 and you owe $800 on it, then you have used 80 percent of your credit limit. That hurts your credit. However, if you have only spent $250 on it, then you have only used 25 percent of your credit limit.
To lower how much you owe on your credit card, there are two methods by which you can go by. The first is to actually start paying your credit card off. By saving money and cutting costs, as well as limiting how much you use your credit card, you can lower how much is on your credit report.However, there is a second way that you can lower the percentage you owe on your credit card without paying anything off. All you have to do, and make sure you have a good credit score, is to increase your credit limit. For example, if you owe $800 on a $1,000 credit limit card, you owe 80 percent. However, if you raise your credit limit to $10,000, then you will only have eight percent owing on your credit card.
Paying off your credit card is very important. All you have to do is to make sure that you do not owe too much on your credit card. Owing too much can hurt your credit score, and that can cause you to have higher interest rates. So try and increase your credit limit, pay off your credit card and limit how much you use your credit card.
If you or anyone else that you know would care for more information regarding this post, feel free to visit http://www.creditrepairbydrjen.com
Thursday, May 28, 2009
Five tips to eliminate debt.
Debt is not something you want to have. It makes doing anything very difficult. Want to go on a vacation? Then you may have to pay off the credit card first. Want to move somewhere else, you may have to deal with the equity on your home and owing on it if you bought it for more than you are selling it for.
So, how do you keep debt from becoming a problem in your life? How do you stop this ugly monster from rearing its ugly head in your life?
Here are five things you can do to eliminate debt and keep your life free and easy with finances.
1. Budget: You should try and budget as much as you can. Budget everything you spend money on and make sure you include all the money you make. You should try and cut costs with your budget as well. Look at the money you are bringing in and sending out and make the right decision. A budget is one of the most important things you can have at your disposal.
2. Pay off current debts. You should save money with your budget and then use that money to pay off your debts. The less you pay on debts, the more money you will have. You may think of paying off debts as money you will never see, but for every dollar you don’t pay in payments and interest, that is another dollar you now have at your disposal for other things.
3. Don’t use so much credit. Debt comes from credit and the more you use credit, then the more interest you pay and the more debt you have. So, instead of buying something you may not need on credit, just wait and buy it with cash. Do you need that new car, or that bigger house? If you really don’t then save your money and don’t bring that extra debt into your life.
4. Build savings. With all your spare money, begin building a savings. A savings is a great way to keep away from debt. Even if you don’t have any money on your credit card, but have no savings, you are in danger of debt. What happens if you have to pay $1,000 in car repairs? If you don’t have the money you have to use credit. That is now $1,000 you have in debt. However, if you have the money in savings, you can use that as your cushion and pay off the bill without using any credit.
5. Get insurance. Insurance is the best friend you have to keep debt from becoming a problem in your life in many ways. With insurance, if something happens you did not plan for, like an accident, injury, death or disability, you don’t have to worry about not being able to pay the bill or make the money you used to. Insurance is your safety net away from debt, so you should use it whenever you can.
Use these five tips and you can keep debt from becoming a major problem in your life.
If you or anyone that you know would care for more information regarding this post, feel free to visit http://www.creditrepairbydrjen.com
So, how do you keep debt from becoming a problem in your life? How do you stop this ugly monster from rearing its ugly head in your life?
Here are five things you can do to eliminate debt and keep your life free and easy with finances.
1. Budget: You should try and budget as much as you can. Budget everything you spend money on and make sure you include all the money you make. You should try and cut costs with your budget as well. Look at the money you are bringing in and sending out and make the right decision. A budget is one of the most important things you can have at your disposal.
2. Pay off current debts. You should save money with your budget and then use that money to pay off your debts. The less you pay on debts, the more money you will have. You may think of paying off debts as money you will never see, but for every dollar you don’t pay in payments and interest, that is another dollar you now have at your disposal for other things.
3. Don’t use so much credit. Debt comes from credit and the more you use credit, then the more interest you pay and the more debt you have. So, instead of buying something you may not need on credit, just wait and buy it with cash. Do you need that new car, or that bigger house? If you really don’t then save your money and don’t bring that extra debt into your life.
4. Build savings. With all your spare money, begin building a savings. A savings is a great way to keep away from debt. Even if you don’t have any money on your credit card, but have no savings, you are in danger of debt. What happens if you have to pay $1,000 in car repairs? If you don’t have the money you have to use credit. That is now $1,000 you have in debt. However, if you have the money in savings, you can use that as your cushion and pay off the bill without using any credit.
5. Get insurance. Insurance is the best friend you have to keep debt from becoming a problem in your life in many ways. With insurance, if something happens you did not plan for, like an accident, injury, death or disability, you don’t have to worry about not being able to pay the bill or make the money you used to. Insurance is your safety net away from debt, so you should use it whenever you can.
Use these five tips and you can keep debt from becoming a major problem in your life.
If you or anyone that you know would care for more information regarding this post, feel free to visit http://www.creditrepairbydrjen.com
Tuesday, May 26, 2009
How do you cut back on expenses to pay debt?
Debt is something nearly everyone has to deal with from time to time. Often, debt can become so great that the only way out seems to be bankruptcy. For anyone, this is a very tough situation to be in. So, how can you keep yourself from falling into a debt spiral? There are several ways you can do this, but one of the best is to start cutting back on your expenses.
Cutting back on expenses is not always easy. It can be difficult to cut back on expenses you have become used to having. You may not want to cut back because it may seem to hard to get by without those expenses. It can be hard to go without some expenses, but it can be much harder to go without credit as you get older in life and to go through bankruptcy.
The first thing you need to do is make a list of all your expenses. Include everything in that list so that you can look and see all the expenses that you have. Then, make another list, based on the first list, of all the expenses that can be removed from your life. Do you really need cable television? Do you really need to have a latte each day? You can cut out these expenses and save hundreds if not thousands of dollars every single year by doing so. Make sure they are things you can cut out. You can’t cut out electricity so don’t try and remove those expenses.
Now, make a list of the expenses that you can’t get rid of but that you can cut back on. These will be easy expenses to find because they are expenses like electricity, water, gas, heat, food and more. You can’t get rid of these expenses but you can cut back on them. Look for ways to save money by using coupons for food, not using the heat as much, turning off lights, limiting water use and more.
Once you have made these lists, you will find that each month that goes by, it becomes easier and easier for you to keep those expenses out. Before long, you will enjoy cooking at home over going out to eat. You will enjoy reading or spending time with the family rather than watching television, and you will feel good about cutting back on energy use because it saves you money and helps the environment as well.
Cutting back on expenses is one of the most proactive things you can do to help yourself with debt. You can get rid of debt before it gets out of hand because you will be saving money. Saving money means less debt and more money that can be paid to your existing debt. It is a win-win situation and it is a situation that you should take advantage of if you want to save money and save yourself from getting into debt. Don’t let your expenses drag you down.
If you or anyone that you know would care for more information regarding this post, feel free to visit http://www.creditrepairbydrjen.com
Cutting back on expenses is not always easy. It can be difficult to cut back on expenses you have become used to having. You may not want to cut back because it may seem to hard to get by without those expenses. It can be hard to go without some expenses, but it can be much harder to go without credit as you get older in life and to go through bankruptcy.
The first thing you need to do is make a list of all your expenses. Include everything in that list so that you can look and see all the expenses that you have. Then, make another list, based on the first list, of all the expenses that can be removed from your life. Do you really need cable television? Do you really need to have a latte each day? You can cut out these expenses and save hundreds if not thousands of dollars every single year by doing so. Make sure they are things you can cut out. You can’t cut out electricity so don’t try and remove those expenses.
Now, make a list of the expenses that you can’t get rid of but that you can cut back on. These will be easy expenses to find because they are expenses like electricity, water, gas, heat, food and more. You can’t get rid of these expenses but you can cut back on them. Look for ways to save money by using coupons for food, not using the heat as much, turning off lights, limiting water use and more.
Once you have made these lists, you will find that each month that goes by, it becomes easier and easier for you to keep those expenses out. Before long, you will enjoy cooking at home over going out to eat. You will enjoy reading or spending time with the family rather than watching television, and you will feel good about cutting back on energy use because it saves you money and helps the environment as well.
Cutting back on expenses is one of the most proactive things you can do to help yourself with debt. You can get rid of debt before it gets out of hand because you will be saving money. Saving money means less debt and more money that can be paid to your existing debt. It is a win-win situation and it is a situation that you should take advantage of if you want to save money and save yourself from getting into debt. Don’t let your expenses drag you down.
If you or anyone that you know would care for more information regarding this post, feel free to visit http://www.creditrepairbydrjen.com
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