วันพฤหัสบดีที่ 20 พฤศจิกายน พ.ศ. 2551

The Reality of Loan Modification

There is a big "buzz" in our economy that the banks are now touting as the "newest and best" way to solve the foreclosure dilemma. I am speaking of loan modification. Basically, you should be very alert and fully understand what is happening. In a loan modification, the bank simply takes your existing mortgage and re-writes it into a forty year loan. If, you have an existing thirty year loan, you agree to pay off your loan in forty years.

Sounds good. In fact in some regions of the country that is smart. But, let's look at this horse from a couple of angles. First of all, ask the bank. Are you lowering the amount of money that we owe you? I will just bet that "if" you owed them $300,000 before the modification, you will still owe them $300,000 AFTER the modification. The only thing that changes is your payments are reduced. This possibly enables you to stay in your home.

Now, let's put on the real hat. Let's just say that when you bought your home, you paid $300,000 for it and you have that amount still owed. Now, before you even consider paying some company or slick operator a couple of grand to help you through this process, start asking some questions, such as:

What is the house worth today? Would I pay $300,000 for a house that is only worth $150,000? How about your neighbor that simply quit paying, is putting that money in his pocket and will be buying (possibly) a home just like yours for $150,000 because that is the value of the home. Getting interesting?

This frenzy to keep the homeowners in their homes is NOT the best deal. Sure, pride of ownership, etc still enters into the equation. Ask you bank. Will you delete the late paying history off of my credit report, IF we enter into this loan modification? What good does it do you to enter into this deal IF you credit sucks? You get stuck with paying (32%) interest rates on credit cards and before you know it, you are back in the same old rut again.

I am not saying" loan modification" is not the way to go. I am saying that today's consumer does NOT have enough information about loan modification and thinks that this "slick talking" loan modification expert is going to save them.

Here are my suggestions:

1.) Make sure that you are happy with what is going to be reported on your credit report.

2.) Ask the lender, IF, the principal amount of the loan can reflect the value of the house on the day that you agree to a loan modification. (I doubt it, because they are still the greedy institutions that we know).

3.) Ask the loan modification expert to give you the forty year spread sheet so that you know how much you really are paying for this program.

4.) Ask the "guru" to give you a copy of the BPO which the real estate broker provides to determine the present day value of the house.

There is no way in these deals that the lender is giving you anything at all. Even, IF, they lower the interest rate, over a period of forty years it is still more profitable for them, then if the loan stayed in its present thirty year profile.

In closing, be very alert. Ask questions. Don't sign "nuttin" until you fully understand. Just remember your neighbor across the street that went into a foreclosure defense program. He is living in his home for almost a year now and has saved that money. Now, IF, the lender does find the note (I doubt it) he can take that money and put it down on a similar house for a lot less money.

Would you rather be in debt for $150,000 or $300,000 on the same home?

Regis Sauger is a licensed Mortgage Broker in Florida, an author, lecturer on credit awareness. He has conducted seminars for underwriters, attorneys, mortgage lenders, realtors and the general public.

http://www.yurcredit.com

Article Source: http://EzineArticles.com/?expert=Regis_Sauger

Credit Card Debt and Settlement - The Best Solution

When stuck up in a credit problem you options seem to shrink in lesser than half and you decide to go bankrupt but the reality is that it is not much true to be happen. In terms of credit card debt and settlement you have a wonderful option of debt settlement in which you can negotiate a reduced amount with your creditor to pay as lump sum and therefore getting your debts off by 60%.

As in case of secured debt you must have pledged some of your property or may be took a loan on your car, your chances with filing a bankruptcy and coming out successfully are fewer because as you go for it your creditor will claim your pledged security to sell and to receive his amount back.

But in case of unsecured debt like credit card debt and settlement is a considerable choice, because it is favorable going with a settlement as your creditor does not have any security and unable to sell your securities to recover his amount and thus easily decides to go with a settlement.

More over the option of credit card debt and settlement is suitable in terms of credit score. There are two things, whether you go by yourself and asking your creditor to provide you a reduction on your payables because you are unable to pay or to hire a company to do this process.

If you have hired one for the process you might have noticed that they will deal on their terms and will negotiate with your creditor on your behalf to get down on a definite reduced amount to pay and as the debt is unsecured your creditor don't have any option than to going for it. Important thing is that this process takes a couple of years and most of the credit card companies help and appreciate if you take your chances and negotiate by yourself with them.

Recommended site to visit: http://www.DebtSettlement.com-offer.us / - Get out of Debt Today!
"What is debt settlement?" - To be precise, it is a process of eliminating your outstanding debts.
You can reduce your total debt amount by 40% - 60% during this process! Get Now Your FREE Online Debt Settlement Quote and begin a new, debt free life!
Jerry Cole

Article Source: http://EzineArticles.com/?expert=Jerry_Cole

Best Credit Repair Tip - Improving Your Credit Score Without Mistakes

There are innumerable reasons explaining why a person would want a better credit score in a shorter span of time, for example because of a loan application, mortgage or simply because fixing credit is a must for getting a job. However, there are mistakes that consumers usually do, it is mainly because the ignorance of the effects of some actions like closing dormant accounts over their scoring and so on, then it is important to be informed about these ones in order to get the results you expect.

Firstly, it is a kind of myth or something, but is generally accepted that, the more closed accounts, the lower your debt and then the better your credit score. However, if you do precisely that but in a short period of time you will get negative effects over your rating, this is mainly because it takes time for your credit report to detect all closures and most important than that, because your credit ratio get increased, meaning that your current credit balances are now being spreading out over less credit accounts or credit account base. Then, if you are applying for a loan or your overall debt balances are too high, closing dormant accounts is not recommendable at all.

Secondly, it does not mean that you should not close them, but it is all about the right time or period of time, plus in some cases you can use them for rebuilding your credit. However, those accounts that you are certain you will never use and that you got open just for impulse must be closed without hesitation, but in these situation is advisable being pro active and inform the bigger credit reporting Bureaus about your account closures attaching all supporting documents. This is important for reducing the span of time needed for getting your credit report updated.

Last, and only if you have the chance, there are credit repair companies that work with your credit score in mind, meaning strategic disputes and actions for getting your credit rating improved, so if you can afford a small reasonable price just do it, making sure yourself of course, that you are dealing with a trusted and reliable credit fixing service.

Summing up, it is highly recommendable being proactive cleaning your bad credit records and get the benefits of a cleaned and healthy credit report, while this might be done by yourself in some circumstances, it is advisable specialized advise in others.

By researching and comparing different credit restoration agencies, you will be able to determine, the one offering a highly rated credit repair service at a reasonable price.

However, it is in your best interest going with a trusted and reputable credit repair company, this way you will save time and money by getting fast results and excellent return on your investment.

Hector Milla runs the Best Credit Repair Services website, where you can see his best rated credit repair companies recommendation, and the My Free Credit Report resources center.

Find out how to get your credit report fixed in no time at a reasonable price and how to get a 3 in 1 free credit report respectively. Visit for further information.

Article Source: http://EzineArticles.com/?expert=Hector_Milla

วันพุธที่ 5 พฤศจิกายน พ.ศ. 2551

Check Cashing & Money Transfers Make Money Transactions Convenient & Safe

Check cashing and money transfers involve the process of paying using negotiable instruments and transferring of funds through banks or other companies using different transfer systems. Check cashing can be done in banks as well as in check cashing stores. Money transfers, on the other hand, generally refer to cashless modes of payment or different payment systems which include wire transfer and electronic funds transfer among many others. Check cashing and money transfers are convenient ways of sending and receiving payments for payroll, bills, merchandise, services, and other bank-to-bank transactions.

Check cashing involves the use of negotiable instruments which also include bank notes and commercial paper. These automatically instruct a bank or other financial institutions to pay the specified amount in the specific currency from a specified demand account under the maker's or depositor's name. Checks have been in use since ancient times when the banking system first started. Bankers during this time issue orders as requested by their customers to pay money to identified payees. This was called the bill of exchange which gave convenience to merchants. They were able to go about their business without carrying large amounts of currency to buy goods and services. This is still quite true at present times that business people as well as individuals who have checking or current accounts use checks for different transactions.

Check cashing involves checking of its different parts:


place of issue
check number
date of issue
name of payee
amount of currency
signature of the drawer
account number
fractional routing number or transit number

Money transfer on the other hand, refers to different cashless modes of payment such as wire transfer, electronic funds transfer, e-mail money transfer, Giro, transfer by postal check or money gram. Wire transfer, which is the most common mode of money transfer, involves bank to bank transactions. The steps in the process of wire transfer include:


an individual who wishes to transfer money needs to go to the bank and give an order to transfer a certain amount of money to a given account using IBAN and BIC codes
the sending bank transmits a message using a secure system to the receiving bank requesting that the payment takes effect according to instructions given
the transmitted message also includes settlement instructions
the transfer of funds may take several hours to several days

Money transfer using banks is considered to be the safest way to transfer, send and receive money especially if the transaction involves country to country transfer or international payment methods.

Check cashing and money transfer must be done in banks to make all transactions safe and legal as well as convenient and will not cost you additional expense. Cashing checks in check cashing stores often charge 2% of the check's value while money transfer using other money transferring companies also entails paying a certain amount.

Ashley Conner is a writer for Zipcodez.com, a widely-used local business listings search portal. Zipcodez.com also features an efficient job, movie, and restaurant search covering over 100 major cities nationwide. Ashley has covered useful topics and resources from "Arts & Entertainment" to "Wireless & Telecommunications" for Zipcodez.com. You can easily find out what convenient and useful resources are in your neighborhood by visiting http://www.zipcodez.com.

Article Source: http://EzineArticles.com/?expert=Ashley_Conner

Consumer Credit Counseling Services

New York City is one of the most expensive cities in the United States. The cost of living is extremely high, and over 1.5 million city inhabitants live below the poverty line. As more people face financial hardship and declare bankruptcy, it becomes increasingly difficult for NYC residents to stay out of debt. Online consumer credit counseling services are extremely beneficial for New York citizens who may be experiencing economic challenges.

Many people choose to move to the area because of its exciting nightlife, diverse population and employment opportunities. How can one avoid debt and bankruptcy and still comfortably survive in a costly metropolitan area?



Find a roommate. Housing in many New York City neighborhoods is extremely costly. Renting an apartment in a secure, safe and cultural area can easily cost thousands of dollars per month. Online consumer credit counseling services suggest finding a roommate or two to share the rent. This can substantially alleviate your living expenses and help you avoid debt. Before you move to the city, research various neighborhoods and housing options. Find a no-fee apartment where you do not have to pay a broker's
finding fee.

Get help. Free consumer credit counseling services, like Advantage CCS will help you manage your financial situation. Trained New York debt management counselors will help you learn to manage a budget and avoid bankruptcy.

Use public transportation. The expense of parking and driving your car in the city in uneconomical and can put you into debt or bankruptcy. Most people use the city's efficient public transportation system. You will also save significant amounts of money on annual auto maintenance, car repairs and gas.

Avoid unnecessary expenses. One of the many reasons why people choose to move to New York City is its abundance of night clubs, fine restaurants, bars and taverns. However, going out to fancy dining venues every night can quickly place anyone into debt or bankruptcy. This doesn't mean that you shouldn't enjoy yourself - you simply need to plan ahead. Visit bars during their happy hours to enjoy cheap drink specials. Look for free or inexpensive events like wine-tasting exhibits and art show galleries.

Shop smart - Browse thrift sales and secondhand stores. You can save significant amounts of money on items like clothing, furniture and books. You can also check one of the city's many newspapers for local estate sales that can save you cash and keep you from declaring bankruptcy.

Avoid getting further into debt - Don't use credit cards unless you absolutely have to. Make sure you can pay the bill in full the next month. Obtain the advice of free online consumer credit counselors. Learn to efficiently manage your bills.

Create a budget. Find the total of your monthly rent, food costs, utility bills, phone bills and necessities. Then subtract these from your income. Are you spending too much on bills? Do you break even? Calculating your income and expenses can help you avoid further debt.
Advantage CCS is a free consumer credit counseling service that helps New York residents obtain a bankruptcy education.

Article Source: http://EzineArticles.com/?expert=Abby_Reid

Best Credit Repair Service - Tips to Choose

Many services will have credit lawyers on their staff. These lawyers are experts on credit laws and this often explains why a service is so much more effective.

The attorneys have more tactics to use to remove a listing such as; debt validation, escalated dispute information requests, and creditor direct interventions. They will also research court precedents and if necessary go to court.

However some companies are less than trustworthy. While you shop services I suggest you look at what past clients say about the firm and how long the firm has been in business.

A big warning sign is if a company guarantees a result. This is similar to a lawyer telling you that he guarantees a jury will find you innocent. It does not happen.

Instead I suggest looking for refunds or warranties. It is common for people to have their credit report totally cleaned however some individuals must negotiate repayment.

Fraudulent credit repair firms have been taking advantage of unsuspecting individuals for years. There are estimates of $50 million a year that these fraudulent companies earn.

Make sure you do your homework before you start handing money over. Some firms are even listed with the Better Business Bureau.

There are two different ways you can pay for credit repair. You can either be charged for each action the service performs or you can be charged a flat monthly rate. I suggest the flat rate as it will make your dollar go farther.

Often services will be willing to charge you by either method. Expect to pay an account set up fee, averages about $100. Be careful of any company that wants a large upfront payment.

The process of removing negative credit on average takes between 6 - 12 months. The typical client should expect to pay roughly $700 and that is with excellent service.

You can expect to have better results with a service than doing it yourself. This is due to their expertise in credit laws and advanced tactics.

However if you are not in a rush and only have a few negative marks you should repair your credit yourself. This can be done with a dispute letter, which you mail to each credit bureau.

You will have to be patient as bureaus are often accused of using stall tactics to avoid conducting an investigation. However be persistent and you can have the derogatory marks removed.

For more tips on hot to choose the best credit repair service or for a review of lexington law a suggest service or to learn about sample dispute letters visit us.

Article Source: http://EzineArticles.com/?expert=John_W_Cooper

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