August 2007
Monthly Archive
30 Aug 2007 07:25 am
ARM Holders Wrongly Turning Towards Credit Cards
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The majority of U.S. consumers often have wallets full of plastic. Many obtain these cards with little knowledge of how they work or the way interest on purchases is calculated, and those least able to repay appear to be the ones getting into the deepest end of financial hot water. [tag]Credit-card companies[/tag] often offer tempting incentives like low or zero percent APRs, frequent-flier miles or cash back on purchases. Someone has to bear the cost of these promotions, and they are often the families already in financial. |
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29 Aug 2007 07:16 am
Deducting Mortgage Interest Can Be Tricky
| Before 1987, [tag]mortgage interest[/tag] on all residences could be deducted without limit. Since then, consumers with more than two residences are required to choose two “qualified” residences where mortgage interest could be deducted, but the selected residences are allowed to be juggled into the “qualified” category from year to year. A home does not actually have to be used to qualify as a selected residence. If there is no rental or personal use of a residence for an entire year, it can be designated as a selected residence and interest can be deducted. If it is rented or used only occasionally by the owner, no interest can be deducted under the personal-residence rule unless there are at least 15 days of personal use. |
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28 Aug 2007 06:00 am
Don’t Make These Mistakes When Mortgage Shopping
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Establishing good credit is the key to locking in a favorable mortgage rate, yet many buyers fail to check their credit reports before applying for a home loan. Even the most fiscally responsible buyers shouldn’t assume that their credit report is spotless. One in four people reported finding serious errors on their credit reports. Just because you qualify for a loan doesn’t mean it’s in your best interest to take it. If you’re already struggling to pay rent and a lender offers you a loan requiring even higher monthly payments, you should seriously consider the financial repercussions before accepting it. It’s important to avoid job hopping while your mortgage application is pending. If switching jobs in unavoidable, angle for a position that offers the same or better pay. |
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27 Aug 2007 07:18 am
Foreclosure Rescue Scams On The Rise
| As foreclosure rates rise, evidence from other parts of the country indicates the number of rescue scams may be increasing. The BBB for Clearwater, Florida, received 508 complaints about local foreclosure rescue companies in the past three years with 322 coming just within the last 12 months. Charlotte, North Carolina’s BBB office reported last year that two foreclosure rescue companies were operating; today the count is 15 and six have already had legal actions taken against them. Twenty-one new companies began operations this year in Cleveland. The most common form of foreclosure rescue scam involves a scammer taking an up-front fee, usually $1,000 or more, to solve the victim’s foreclosure problems, and then does little or nothing, pocketing the money. |
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26 Aug 2007 06:23 am
Reverse Mortgages Explained
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A r[tag]everse mortgage[/tag] is just what it sounds like — instead of a homeowner making payments to the bank to pay off a mortgage, the bank pays the homeowner who has a significant amount of equity built up. The lender, in return, puts a lien on the property. Borrowers receive money from a reverse mortgage in four ways: They can get a lump-sum payment, get a monthly cash stream, establish a line of credit or sign up for some combination of the three. To qualify for these loans, borrowers must be at least 62 years old. |
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25 Aug 2007 01:47 am
Dying Intestate
| Shockingly, less than 20 percent of U.S. residents have a written will. For those who have a will, after they die their assets will be distributed according to their wills by the local Probate Court. Probating an estate, even a modest one, usually takes six to 18 months or longer before the heirs can receive their inheritances. For individuals who die without a written will, the state law of intestate succession determines who will receive their assets. Especially in second marriages, the result is often not what the decedent would have wanted. Again, the local probate court supervises intestate succession distribution, subject to costs and delays. |
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24 Aug 2007 07:29 am
Buying Short Sales When The Mortgage Company Declares Bankruptcy
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One of the latest twists in an already topsy-turvy real estate market for agents and buyers is this — if a mortgage company owns a lot of property from foreclosures, then where or to whom does a buyer make an offer to purchase such property since the holder of the house no longer exists — at least in a healthy state. The short-sale market (better known as [tag]pre-foreclosure[/tag]) is alive and well around the country. But now we have the next challenge on these properties — buyers in the midst of a transaction with an entity whose status is questionable at best, and totally phased out at worst. Anyone involved in such a case or anticipating such a deal should be ready to wait a while for word from the bankruptcy court or the receivers of such a lender to determine what will happen with the properties. If the lien holder has filed bankruptcy, then its creditors will want to know how much cash or assets the company has to fulfill its debts. The houses may be considered such an asset and you may not be first in line to take over such a property if you’re in a contract with them. |
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23 Aug 2007 07:22 am
Trouble Securing a Mortgage? Try Your Local Credit Union
| As many mortgage lenders tighten loan underwriting standards and interest rates on jumbo mortgages rise, consumers may be able to find a friend in their local credit union. With less oversight and regulation, many of the mortgage loans made by credit unions are held in their own portfolios and therefore don’t need to be sold to investors. And, with most credit unions, there’s a more measured approach to how that mortgage works with the member’s overall financial picture, since the credit union is often that borrower’s primary institution. |
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