Jun
29
Mortgage Rates Questions And Answers
Filed Under Contact | Leave a Comment
Jun
26
Mortgage Protection Insurance Cover Can Be A Valuable Asset
Filed Under Great Deals | Leave a Comment
Simon Lance Burgess asked:
Mortgage protection insurance cover can be a valuable asset to have in your corner in case you should lose your income. If you were to find yourself unable to work after suffering from an accident, illness or if you became unemployed via redundancy, you would be left struggling. In some cases, you could even lose your home due to repossession.
In 2005, the Citizens Advice made a super complaint to the Office of Fair Trading (OFT) about the payment protection insurance sector. The OFT began investigating along with the Financial Services Authority. Several well-known names were given fines for mis-selling payment protection insurance, However, mortgage payment protection insurance came through fairly unscathed, with the majority of mis-selling relating to other areas of protection insurance products. The Competition Commission then began an in-depth review and it is hoped that many changes will be seen within the sector when they release their findings.
When taken out correctly mortgage protection insurance cover can give the policyholder an income each month. This would ensure that they were able to keep up with the mortgage repayments. Falling behind by just a couple of months can lead to the lender seeking repossession. If you were to be recovering from illness then this would add more stress onto an already anxious situation. The same would apply when it came to finding another position.
A policy can start from between day 30 and 90 of continually being unemployed or from becoming unable to work. It would then continue to provide for between 12 and 24 months depending on the terms laid out by the provider. Some providers will backdate the cover to the first day so you have to check the terms of the individual policy when comparing the cost. This is also, where you can find out what exclusions exist in the protection policy.
Getting several quotes from independent specialist providers will get you cheaper cover. However, some homeowners are under the impression that mortgage protection insurance cover has to be taken with the lender. This is untrue. Some lenders can ask that you do take protection for the amount you are borrowing; however, you can choose to take it independently. By doing so, you are able to not only make great savings but also get access to the vital information needed.
All specialists will make essential information available and encourage the homeowner to read this thoroughly. They will do this by providing FAQs and making information available in plain English instead of being filled with the technical jargon usually associated with insurance. Taking out a policy with a lack of knowledge is what has led to mis-selling of cover. It also leads to individuals paying more for their policy than necessary.
Relying on the State can be a letdown. This is due to the fact that even if you were eligible to claim if you took out your mortgage after October 1995 you would have to wait several months. Then you would only receive help with the interest part of the mortgage up to
Mortgage protection insurance cover can be a valuable asset to have in your corner in case you should lose your income. If you were to find yourself unable to work after suffering from an accident, illness or if you became unemployed via redundancy, you would be left struggling. In some cases, you could even lose your home due to repossession.
In 2005, the Citizens Advice made a super complaint to the Office of Fair Trading (OFT) about the payment protection insurance sector. The OFT began investigating along with the Financial Services Authority. Several well-known names were given fines for mis-selling payment protection insurance, However, mortgage payment protection insurance came through fairly unscathed, with the majority of mis-selling relating to other areas of protection insurance products. The Competition Commission then began an in-depth review and it is hoped that many changes will be seen within the sector when they release their findings.
When taken out correctly mortgage protection insurance cover can give the policyholder an income each month. This would ensure that they were able to keep up with the mortgage repayments. Falling behind by just a couple of months can lead to the lender seeking repossession. If you were to be recovering from illness then this would add more stress onto an already anxious situation. The same would apply when it came to finding another position.
A policy can start from between day 30 and 90 of continually being unemployed or from becoming unable to work. It would then continue to provide for between 12 and 24 months depending on the terms laid out by the provider. Some providers will backdate the cover to the first day so you have to check the terms of the individual policy when comparing the cost. This is also, where you can find out what exclusions exist in the protection policy.
Getting several quotes from independent specialist providers will get you cheaper cover. However, some homeowners are under the impression that mortgage protection insurance cover has to be taken with the lender. This is untrue. Some lenders can ask that you do take protection for the amount you are borrowing; however, you can choose to take it independently. By doing so, you are able to not only make great savings but also get access to the vital information needed.
All specialists will make essential information available and encourage the homeowner to read this thoroughly. They will do this by providing FAQs and making information available in plain English instead of being filled with the technical jargon usually associated with insurance. Taking out a policy with a lack of knowledge is what has led to mis-selling of cover. It also leads to individuals paying more for their policy than necessary.
Relying on the State can be a letdown. This is due to the fact that even if you were eligible to claim if you took out your mortgage after October 1995 you would have to wait several months. Then you would only receive help with the interest part of the mortgage up to
Jun
25
Bankruptcy FAQ’s
Filed Under Finance | Leave a Comment
Steve Thatcher asked:
This is the first in a series of four articles relating to bankruptcy.
1. What does bankruptcy mean?
Bankruptcy means that your financial affairs are administered by your Trustee. In other words, he controls all that own including your house. Essentially, his duty is to sell all your permitted assets and use the money to pay as much as possible to your various creditors, that is the people you owe money to.
2. What is the difference between Bankruptcy and Insolvency?
Not much! The usual definition of insolvency is that you are unable to pay your debts as they fall due. People sometimes take the view that they are still solvent in the value of their assets exceeds the level of their liabilities, even if they are unable to pay their debts when they fall due. For example, if you own a house worth
This is the first in a series of four articles relating to bankruptcy.
1. What does bankruptcy mean?
Bankruptcy means that your financial affairs are administered by your Trustee. In other words, he controls all that own including your house. Essentially, his duty is to sell all your permitted assets and use the money to pay as much as possible to your various creditors, that is the people you owe money to.
2. What is the difference between Bankruptcy and Insolvency?
Not much! The usual definition of insolvency is that you are unable to pay your debts as they fall due. People sometimes take the view that they are still solvent in the value of their assets exceeds the level of their liabilities, even if they are unable to pay their debts when they fall due. For example, if you own a house worth
Jun
24
Debt Settlement and Your Credit Score
Filed Under Finance | Leave a Comment
Marie Megge asked:
Are you considering debt settlement, but concerned it may negatively impact your credit score? If a lower credit score is your main concern regarding debt settlement, read on for answers to some questions you may have.
First, you’ll want to check your credit score to be sure it’s as high as you think it is. You see, if you’re carrying high balances on your credit cards, with many of them being nearly “maxed out,” there’s a good chance that your credit score is only mediocre, at best. Worse yet, if you’ve made even one late payment, your credit score will be reduced, as well.
If you find that your credit score is fairly decent, and you’re worried about your credit file reflecting a lower score as a result of debt settlement, you have a legitimate concern.
Unfortunately, most creditors won’t even consider working with you until your accounts are near “charge-off” status. At that point your credit report will show that your accounts are 180-210 days delinquent, and you can expect your credit score to be significantly reduced.
How long will you need to tolerate a lower-than-normal credit score? Well, that depends on your ability to generate sufficient funds to pay the agreed-upon settlements negotiated and reached with your creditors. Generally, your score will improve when zero balances are reflected on your credit report – usually 30-90 days after a settlement has been paid in full. You can speed this process up by being proactive and sending proof of payment to the major credit reporting agencies, rather than waiting for your creditor to report the changed status. Your score will continue to improve as the debt settlement process is further behind you, and can expect a score of at least the mid-600 range within twelve months of paying your accounts off through debt settlement, provided your mortgage and installment loans do not reflect any late payments.
If you’re struggling each month to make the minimum payments on your accounts, and debt settlement seems to be your best option, a temporary reduction in your credit score probably shouldn’t influence your decision too much. Rather, peace of mind and the ability to pay your bills should be your main concern. If you take a realistic look at your finances, you may very well see that you’re in deeper than you thought. I urge you to gather all of your bills and add up your monthly expenses – including your credit card bills, and then minus your credit card bills. After you’ve made the comparison, you’ll likely understand that the benefits of debt settlement easily outweigh the few months you’ll need to deal with a reduced credit score.
Mario
Are you considering debt settlement, but concerned it may negatively impact your credit score? If a lower credit score is your main concern regarding debt settlement, read on for answers to some questions you may have.
First, you’ll want to check your credit score to be sure it’s as high as you think it is. You see, if you’re carrying high balances on your credit cards, with many of them being nearly “maxed out,” there’s a good chance that your credit score is only mediocre, at best. Worse yet, if you’ve made even one late payment, your credit score will be reduced, as well.
If you find that your credit score is fairly decent, and you’re worried about your credit file reflecting a lower score as a result of debt settlement, you have a legitimate concern.
Unfortunately, most creditors won’t even consider working with you until your accounts are near “charge-off” status. At that point your credit report will show that your accounts are 180-210 days delinquent, and you can expect your credit score to be significantly reduced.
How long will you need to tolerate a lower-than-normal credit score? Well, that depends on your ability to generate sufficient funds to pay the agreed-upon settlements negotiated and reached with your creditors. Generally, your score will improve when zero balances are reflected on your credit report – usually 30-90 days after a settlement has been paid in full. You can speed this process up by being proactive and sending proof of payment to the major credit reporting agencies, rather than waiting for your creditor to report the changed status. Your score will continue to improve as the debt settlement process is further behind you, and can expect a score of at least the mid-600 range within twelve months of paying your accounts off through debt settlement, provided your mortgage and installment loans do not reflect any late payments.
If you’re struggling each month to make the minimum payments on your accounts, and debt settlement seems to be your best option, a temporary reduction in your credit score probably shouldn’t influence your decision too much. Rather, peace of mind and the ability to pay your bills should be your main concern. If you take a realistic look at your finances, you may very well see that you’re in deeper than you thought. I urge you to gather all of your bills and add up your monthly expenses – including your credit card bills, and then minus your credit card bills. After you’ve made the comparison, you’ll likely understand that the benefits of debt settlement easily outweigh the few months you’ll need to deal with a reduced credit score.
Mario
Jun
24
Quitclaim Deed and Mortgage Transfer – Any Tax Implications?
Filed Under Pad Of Paper | Leave a Comment
Jun
21
Ray Dudley asked:
Have you been wondering how to refinance your adjustable rate mortgage? We were. Come along as we explain how it was done and how we avoided disaster. But first: How’s This For a Quote? “SAN FRANCISCO, California (AP) — Here’s a safe bet for uncertain times: A lot of banks won’t survive the next year of upheaval despite the U.S. government’s $700 billion rescue plan to restore order to the financial industry.” CNN 10/05/08 Man, you gotta LOVE government intrusion. I’d make a long story short, but, then it wouldn’t really be a story as much as a punchline so here’s the long version of how we “fixed” our broken ARM. About two and a half years ago my wife and I decide we’d like to buy a house since we had been renters for most of our lives. We start looking around and doing the “housey” thing by getting pre-approved and then submitting ourselves to the task of house hunting. I’m going to save the house hunting/time consuming/black hole tale for another day and jump ahead to the financing part (after all this is where it gets good). Since we had gotten pre-approved we started to receive voluminous emails and snail mail from all types of benevolent institutions that wanted to help finance our mortgage. Eventually we settled in with the gracious Washington Mutual.
They handled everything for us so that all we had to do was show up at the closing, sign a few papers, eat bon-bons and dream nice dreams. The process actually went smoothly. Unfortunately, being the naive and stupid consumers we were, we didn’t pay too much attention during the signing. All we knew was that we were in an ARM that would adjust in two years at which time, we were assured, everything would be re-visited and then changes could be made. Well, after about a year we figured we’d re-read the mortgage to get ready for the upcoming meeting and realized we had a 40 yr. (yup, it says 40) adjustable rate mortgage that would ratchet up in 12 months to an amount close to what the Congress is debating for the AIG bailout right now and an interest rate only given by guys specializing in broken legs and a penalty if we tried to dislodge ourselves from it “prematurely”. You gotta love the mortgage industry.
After the panic and puking stopped, we thought “Gee, maybe we should do some MORE research and see if we can do anything about this?” Bless my wife’s heart, she found a company called TopDot Mortgages which deals with scenarios such as ours and she began a relationship with them that eventually ended up with us landing a real fixed mortgage. The great thing about a company like TopDot was there customer service. They hand held us all the way. They made MANY phone calls to our home to see if they could help us in any way during the process. They even went so far as to have a copy of our paperwork sent by FedEx to Florida where I had gone on some business so that I could sign it after my wife had done so in New Hampshire. Top rate! They treated us kindly and with great respect. The payment (which is the same as we had with the ARM) now includes the principal, interest AND taxes. Sure, there were some more costs involved. And a few headaches since we had to gather MORE paperwork. But, we didn’t lose the house, get stuck with outrageous payments and we sleep better. So, just how comfortable do you feel about YOUR mortgage? Take a look at some recent headlines and links I’ve provided and then try to sleep good tonight:
U.S. bank failures almost certain to increase in next year (cnn.com/2008/US/10/05) Wondering Which Bank is Next (money.cnn.com/2008/09/29) Www.fdic.gov/bank/individual/failed/banklist.html Wells Fargo to acquire Wachovia for $15.1B Government Seizes WaMu and Sells Some Assets Bank of America Buys Merrill (U.S.News & World Report 2008) What the Bailout Means for Mortgage Rates As Big Banks Converge, Depositors Find Deals at Smaller Institutions How Lehman Brothers Took Out Washington Mutual The downfall of the $307 billion-asset WaMu represents the largest banking failure in U.S. history, dwarfing the 1984 failure of the $40 billion-asset Continental Illinois, which had previously held the distinction.
(Disclaimer: We don’t work for TopDot and have no relationship with them except that they hold our mortgage and just happen to like them.) So there you have it. How we got to refinance our adjustable rate mortgage. Hope this helps if you’re looking to do the same.
Dale
Have you been wondering how to refinance your adjustable rate mortgage? We were. Come along as we explain how it was done and how we avoided disaster. But first: How’s This For a Quote? “SAN FRANCISCO, California (AP) — Here’s a safe bet for uncertain times: A lot of banks won’t survive the next year of upheaval despite the U.S. government’s $700 billion rescue plan to restore order to the financial industry.” CNN 10/05/08 Man, you gotta LOVE government intrusion. I’d make a long story short, but, then it wouldn’t really be a story as much as a punchline so here’s the long version of how we “fixed” our broken ARM. About two and a half years ago my wife and I decide we’d like to buy a house since we had been renters for most of our lives. We start looking around and doing the “housey” thing by getting pre-approved and then submitting ourselves to the task of house hunting. I’m going to save the house hunting/time consuming/black hole tale for another day and jump ahead to the financing part (after all this is where it gets good). Since we had gotten pre-approved we started to receive voluminous emails and snail mail from all types of benevolent institutions that wanted to help finance our mortgage. Eventually we settled in with the gracious Washington Mutual.
They handled everything for us so that all we had to do was show up at the closing, sign a few papers, eat bon-bons and dream nice dreams. The process actually went smoothly. Unfortunately, being the naive and stupid consumers we were, we didn’t pay too much attention during the signing. All we knew was that we were in an ARM that would adjust in two years at which time, we were assured, everything would be re-visited and then changes could be made. Well, after about a year we figured we’d re-read the mortgage to get ready for the upcoming meeting and realized we had a 40 yr. (yup, it says 40) adjustable rate mortgage that would ratchet up in 12 months to an amount close to what the Congress is debating for the AIG bailout right now and an interest rate only given by guys specializing in broken legs and a penalty if we tried to dislodge ourselves from it “prematurely”. You gotta love the mortgage industry.
After the panic and puking stopped, we thought “Gee, maybe we should do some MORE research and see if we can do anything about this?” Bless my wife’s heart, she found a company called TopDot Mortgages which deals with scenarios such as ours and she began a relationship with them that eventually ended up with us landing a real fixed mortgage. The great thing about a company like TopDot was there customer service. They hand held us all the way. They made MANY phone calls to our home to see if they could help us in any way during the process. They even went so far as to have a copy of our paperwork sent by FedEx to Florida where I had gone on some business so that I could sign it after my wife had done so in New Hampshire. Top rate! They treated us kindly and with great respect. The payment (which is the same as we had with the ARM) now includes the principal, interest AND taxes. Sure, there were some more costs involved. And a few headaches since we had to gather MORE paperwork. But, we didn’t lose the house, get stuck with outrageous payments and we sleep better. So, just how comfortable do you feel about YOUR mortgage? Take a look at some recent headlines and links I’ve provided and then try to sleep good tonight:
U.S. bank failures almost certain to increase in next year (cnn.com/2008/US/10/05) Wondering Which Bank is Next (money.cnn.com/2008/09/29) Www.fdic.gov/bank/individual/failed/banklist.html Wells Fargo to acquire Wachovia for $15.1B Government Seizes WaMu and Sells Some Assets Bank of America Buys Merrill (U.S.News & World Report 2008) What the Bailout Means for Mortgage Rates As Big Banks Converge, Depositors Find Deals at Smaller Institutions How Lehman Brothers Took Out Washington Mutual The downfall of the $307 billion-asset WaMu represents the largest banking failure in U.S. history, dwarfing the 1984 failure of the $40 billion-asset Continental Illinois, which had previously held the distinction.
(Disclaimer: We don’t work for TopDot and have no relationship with them except that they hold our mortgage and just happen to like them.) So there you have it. How we got to refinance our adjustable rate mortgage. Hope this helps if you’re looking to do the same.
Dale