Thursday, January 29, 2009

Foreclosure or Bankruptcy?

Foreclosure and bankruptcy are both derogatory legal terms, which in general gives a negative impact. Before proceeding let me just refresh our minds what we understand by these two terms.

Foreclosure, in the textbook language, is a legal process by which a mortgagee's right to redeem a mortgage is taken away, because of failing to make payments. And similarly, bankruptcy is defined as a legally declared inability of an individual to pay to its creditors.

Both of them have certain implications which have significant impact on your credit. Neither of them is an easy option. Here are few factors that need to be considered while comparing foreclosure and bankruptcy:

  • Generally, a foreclosure will have a 7 year statute of limitation whereas a bankruptcy will remain on your credit for 10 years.
  • Following bankruptcy you can stay in your residence for a longer period than foreclosure.
  • When you have opted for bankruptcy, your mortgage lender or other creditors discontinue on giving negative reports which results in improving your credit. However, for foreclosure, they continue to provide negative reports, thus eroding your credit.
  • Bankruptcy helps you to cancel together the debt associated with mortgage deficiencies and also other debts, whereas a deficiency debt can be created by foreclosure.
  • Following a foreclosure it takes a minimum of four years to buy a home. In contrast, you are eligible to purchase a home in two to four years after following bankruptcy.

You have to first decide whether you want to keep your house or give it away. Based on that you need to take into consideration a lot of factors to decide amongst foreclosure and bankruptcy.

Tuesday, January 20, 2009

Remortgage - More Mortgage Less Hassle

As we all know, mortgage is a huge financial commitment. We try our level best to have the right mortgage since this loan is of long term nature. However, these loan policies keep on changing day by day, and the mortgage loan which appeared to be perfect some time back, now appears to be expensive and not very effective. So what do we do?

Yes, remortgage is the solution. Remortgage basically means switching your mortgage with a better deal, either with a new lender or with the same lender. The best deal would include those mortgages that offer lower interest rate than the existing one.

Analyze some of the benefits that remortgage could lead to:

  • Reduction of Interest rate: Due to the increasing competition among the lenders, we get an option of getting a loan with reduced interest rate, may be from the existing lender or from some other provider. Remember that in this case all other figures, associated with mortgage, remains the same.
  • To raise money: Suppose you are going through some financial crisis, or you need to pay for some major outgoings like wedding, educational costs or any other similar consequences, then you can go for remortgaging to raise the capital.
  • Consolidation of debts: You can release some of the equity you hold, like credit cards or car loans, when going for remortgaging. However do remember that you are left with very few deals if you have a poor credit score or an adverse credit history.
  • To avoid moving home: It is much more easy and convenient to adjust or add an extension to your existing home, paid by remortgaging, than to move home.

Though remortgaging is comparatively a simpler process, you need to do a lot of homework because still this is a financial agreement. You are advised to compare the wide choice of quotes from different lenders. Also you can find online the various choice of remortgages available which are designed accordingly with different needs.

Research has also shown that when people have remortgaged their home during the mortgage term, they are lot more likely to paying lesser amount on interest. So think wisely and remortgage accordingly to save your money.

Refinance Home Mortgage Rate: Exclusive and most updated information on mortgage refinance, home loan plan, interest rates and mortgage related topics for existing and potential mortgage holders.

Tuesday, January 13, 2009

Find out the Basic Steps of Selling a Home:

As we all know, the home selling process is one of the most important real estate transactions. The entire process may vary from place to place, but the basic selling procedure is almost the same. In today’s world, selling a home needs a lot of preparation, patience and perseverance.

These are the main steps, involved during selling a home that cannot be overlooked:

  • Analyze and review the reasons for selling the home. Leaving your emotions and attachments associated with the house behind; think practically on the ideas how to prepare your home for selling.
  • The next step is to select a right real estate agent who would be able to guide you correctly with the entire proceedings.
  • Determine how much your home is worth; select the best competitive price keeping in mind the surrounding market price. Overpricing the house can be risky.
  • Advertise your home to the market in a proper manner. The agent needs to expose your home to various suitable buyers, since marketing strategy is one of the most important factors for selling a home or any other property.
  • Get the home ready for sale. If required you can do some repair work too, as it is quite rightly said ‘first impression is the last impression’.
  • When an offer comes, let your home be inspected by them and negotiate accordingly. And you have to be little flexible with your offer and your agent should be able to promote your interests and provide a clear transaction.
  • After deciding the final price, when you are ready to sell it, you need to consider the closing and settlement, which is a formal process where all the necessary documentation work needs to be done. The closing is the final step which generally occurs 30 to 45 days after the selling contract has been signed.

Selling your home can be exciting, but it also requires a lot of hard work. Plan your home selling process properly so that you don’t have to face any obstacle and it sells in the shortest period.

Thursday, January 8, 2009

New Year Update of Mortgage Rates:

Let us begin the New Year thoughtfully and wisely. Try not to take any hasty decisions without researching the details you need to know. Let’s try to get back to the financial realm now, leaving our holiday mood behind.

Regarding the mortgage rates, 2008 may be considered the year when the market went awry. It was one of the wildest times in the history of financial market. Given below is a video on Mortgage rate update. Plan your mortgage related issues accordingly and we hope that the mortgage roller coaster will slow down in the coming months.