What to do When Faced With Overwhelming Adjusted ARM Payment in Indianapolis Real Estate

The Indianapolis real estate market has recently begun to feel the sting of the housing market fallout that has pummeled the rest of the nation. As recently as January of 2008, the local economy was credited as being very stable, and investors have been taking note. Now recent new homeowners are finding that the pinch of the sub-prime ARM rate adjustments are forcing them into a position of taking care of the squeaky wheel first, when it comes to paying the monthly bills. The current mortgage holder of Indianapolis real estate, if the purchase was made in the last 5 years, is likely the victim of a lender who was willing to overextend credit to borrowers who obviously could not make the loan payment once the variable rates adjust. This was usually glossed over with the advice to "be sure to refinance before the rate change". In previous times, the borrower would not even have to watch for the rate change date, because 6 months before, he would begin recei! ving the daily barrage of calls from the lenders proposing refinance deals. Today, this is not the case. As the Indianapolis real estate property values have crashed, most lenders will not consider refinance because the current value of the property does not cover the amount remaining on the loan. In fact, most lenders who had previously extending a line of credit with a new mortgage purchase as an incentive to buy, are now retracting the limits of that credit to match the amount currently owed. If you have maxed out your equity line, you can pay it down, but your available credit on that line will remain zero. The options for the Indianapolis real estate owner who finds himself with a new mortgage payment that he just cannot afford have changed pretty dramatically in the last 12 months. The first option has always been painful, but logical: sell the property. If you cannot afford the payment, you need to sell and then purchase a property within your financial m! eans. Obviously, the option to sell is not the simple answer a! ny longe r, with far more sellers on the market than buyers. The option to short-sell a property in the Indianapolis real estate market, is a more viable option with the lenders than it has been in the past. More and more lenders are willing to take a partial loss on the property rather than lose the entire remaining value of the loan to foreclosure and be stuck with a property that they cannot sell either. As recently as 18 months ago, several large national lenders had the attitude that holding foreclosure over the heads of the borrower would somehow force them into being able to pay the mortgage, or find a buyer who would accept a selling price that would cover the remaining mortgage. In today's market, a short sale will absolutely be considered by the lender. In this transaction, the homeowner sells the house for as much as he can get, even though it is below what he owes on the home, and the lender will "forgive" the remainder of the debt. This is a tremendous financial s! avings to the lender, who otherwise would have to incur the expenses of foreclosure proceedings, property taxes and Indianapolis real estate agent fees for listing the property for sale after the foreclosure. As options to foreclosure, lenders today are also being more reasonable in trying to help the homeowner find ways to retain their property while they regain some financial control. Lenders holding title to Indianapolis real estate have a variety of solutions available to borrowers who are looking for relief in their mortgage payment. Many will agree to temporarily reducing or waiving payments, if the financial situation the borrower is facing is a temporary condition. If the borrower calls after missing several payments, before foreclosure proceedings begin, he can negotiate to have the missed payments divided up over the next six months and added to the current payment or negotiate to have the missed payments added to the principle of the mortgage, thereby incre! asing the monthly payment only slightly for the remainder of t! he loan term. Again, these options only work if the borrower now has come into the financial means to cover the new payment. If you have fallen behind in your mortgage payment, you will find that calling the lender to discuss the issue is not the humiliating experience it once was. The lenders are getting many of these calls on a daily basis in the Indianapolis real estate areas, so you are not alone. As a result, the lenders have also been forced to become more knowledgeable about solutions they can make available to you. Source Article : http://www.articlesbase.com/real-estate-articles/what-to-do-when-faced-with-overwhelming-adjusted-arm-payment-in-indianapolis-real-estate-894832.html

Get The Car You Want Regardless Of Your Credit

It used to be that poor or bad credit scores meant there was absolutely no chance of obtaining financing for a car. In today's economy, it's not difficult to get into debt and then find you have difficulty paying those debts back. Creditors are recognizing that bad payment habits in the past are not necessarily indicative of how an individual will make payments on a new loan, and have started programs that allow individuals with less than perfect credit to obtain a bad credit auto loan. If you are employed and have had the same job with steady income for at least a year, your chances are pretty good that you will be able to obtain a bad credit auto loan of some kind. You should bring your most recent W-2 with you when car shopping, or at least a few pay stubs as proof of your income. You may require a co-signer or collateral, or a down payment, but it is unlikely that you will be denied for bad credit car loan programs. If you are ready to get a new or used car with financing, but have a less than perfect credit history, you may still be eligible for a bad credit car loan. Before you start car shopping, however, there are a few steps you should take to improve your chances of being approved for a bad credit loan. Your first step is to see how bad the damage really is. Often times people are convinced their credit scores are low and they must have countless late payments and non payments on their credit reports, but when the credit report is obtained the individual finds their credit better than they thought! Before jumping to conclusions about the severity of your credit situation, obtain a copy of your credit report from one of the major credit bureaus. (Equifax, TransUnion and Experian). Changes to The Fair Credit Reporting Act in 2003 made it a law that consumers would be entitled to one free copy of their credit reports from each of the three major credit bureaus once every twelve months. Obtain your credit report and verify that all of the information on it is correct. Sometimes there will be accounts that you no longer have, or maybe even accounts that you never had! Take the time to correct any discrepancies on the report as they are likely to improve your credit score. Then, ! determine the most problematic accounts on your credit report and make it your first priority to start repairing those accounts by sending additional payments or making sure not to send a late payment to them. Once you know what your credit score actually is, and have a copy of your credit history report, you will see how the lenders will view you. With a poor credit history, you are unlikely to get a lenders best rate, but it is still possible to obtain financing in most cases because the car you purchase becomes collateral. If you don't keep up with your payments, the lender knows they can take the car back. In some cases, you may be able to further secure your bad credit auto loan with additional collateral. If you own a home, or perhaps another vehicle- you may be able to use those items as collateral and increase your chances of obtaining a bad credit car loan. When you go shopping for cars, bring the credit reports you obtained from each of the credit bureaus with you. Try to get the car dealership to use those reports rather than running a new credit report when it comes time to talk about financing. Remember, also, that the dealership financing is not the only option. You can use the internet to shop around for other bad credit loan options, and can find companies and programs that are specific for people with less than perfect credit. Source Article : http://www.articlesbase.com/non-fiction-articles/get-the-car-you-want-regardless-of-your-credit-92800.html

Free Credit Repair Advice - How to Repair Your Own Credit

When you are trying to repair your credit, it may be best to try to fix it yourself. If you suffer from bad credit you will find that numerous firms will contact you claiming to be able to assist you in rebuilding your credit for a fee and once you hire them they will take care of everything. However, the truth of the matter is that fixing your credit on your own may be the best thing you could possibly do.   Fixing your own credit can be a difficult process but many who opt to fix their own credit do not find it that difficult to do. More and more people are beginning to repair their own credit. If you want to go this route you need to first contact one or all the three major credit reporting agencies, Equifax, TransUnion, and Experian. Ask them to send you a free credit report. The FACT act was passed in 2001 by Congress and the act lets every consumer obtain one free copy of their credit report annually.   Once you have obtained a copy of your credit report, you will need to take some time to check all the information for accuracy. You will most likely find some mistakes. These discrepancies may be due to the fact that that an old account that you had has been paid off but it is still being reflected on you current statement.   Once you have made a list of all of the mistakes on your credit report, mark them on the credit report or on a sheet of paper. Send a copy of the report to the agency you obtained your credit report from. You may want to contact them by telephone as well. When they receive your complaint they will ask for proof that what is on the report is indeed an error. This is why it is best to send a copy of your credit report to be on the safe side. When they check the error they will notify you saying that they have fixed the mistake or that they do not have enough proof to take the mistake off of your credit report. If you want to successfully improve your credit you need to be stringent when it comes to making sure that all the information on the credit report is correct and reflected on your statement.   A big part of beginning any type of credit repair plan, whether you are repairing your credit yourself or using a debt counselor, is making a long-term plan to keep control of your finances so that you will not make the same mistakes you made with your credit in the past. Credit repair counselors are there to assist you but what is the use of paying their fee if you later find out the firm is not reputable?   Repairing your credit is very time consuming and it will require that you take it very seriously. Over a period of time, you will see the positive and favorable results. You will soon know that these results came about through your own motivation and your own efforts. There is absolutely no better feeling. Source Article : http://www.articlesbase.com/debt-consolidation-articles/free-credit-repair-advice-how-to-repair-your-own-credit-525166.html

Credit Scores & What Risk Category They Fall Into

Consistently paying bills on time can increase an individual's credit score, higher Credit Scores can mean lower interest rates on loans and credit cards. Keeping balances close to account limits can also lower a person's Credit Score. Checking your own Credit Report will not lower your Credit Score. Here is a breakdown of credit scores and what categories they generally fall into.  Low Risk (726 - 830): Lenders rest easier when they extend loans and credit to individuals with high Credit Scores. Plus, you may be able to save money by negotiating a lower interest rate or a better term on a new loan or credit card. Low - Medium Risk (700 - 725): Lenders may be more willing to extend credit to individuals with Credit Scores in the low-to-medium risk range. In this range, you may get better-than-average rates and terms on new Source : http://www.creditlawgroup.com/credit-repair-info/loans.aspx loans and Source : http://www.creditlawgroup.com/credit-repair-in! fo/revolving-accounts.aspx?rid=r1038 credit cards . Medium Risk (626 - 699): Lenders may still be willing to extend loans and credit to individuals with mid-range Credit Scores; however, you may only get average rates and terms. Medium - High Risk (551 - 625): Lenders may be less willing to extend credit to individuals with Credit Scores in the medium-to-high risk range. In this range, you may not enjoy the best rates possible. High Risk (330 - 550): Lenders may be wary about extending loans and credit to individuals with Credit Scores in the high-risk range. You may be denied credit, or pay higher rates. Source Article : http://www.articlesbase.com/credit-articles/credit-scores-what-risk-category-they-fall-into-669437.html

Business credit report: Procure credit report to know your fiscal status

Whether big or small, every business depends on the intensity of the origin of the good credit record to win the support and trust of the lender and to deal in future. With the help of credit report a business person can be confident and secured at the time of availing the financial help whenever he is required without any hassle. For any company or a business person it is difficult to make an instant good credit record. To have best credit history both effort and time are important to build it. One thing which is very significant for the business holder to have is Source : http://www.freeannualcreditreportsus.com/freeannualcreditreportsus.com/business-credit-reports.html Business Credit Report . This report ensures their credit history in advance as it helps to know where is spent or not. Business Credit Report plays a very vital role at the time of approving of loan amount as there are numerous trustworthy lenders in the market who first look and decide w! hether to grant the loan or not. Not only for the borrower but it is also help the money lender to know about whether the company has the capability to reimburse the payment on specific time. The main motive and suggestion behind this report is to assure whether the information place is correct or not. The data existing in this business report will allow the corporate people on how to relate with their work to construct a good business. To acquire the Business Credit report is quiet significant and to procure it through the right mode is via online process. There are several companies who are ready to provide the report through internet annually. One can easily and instantly obtain the business report with the help of online. Moreover, with the access of this document you will get the great support to have healthy fiscal status. However, with this business credit reporting service also help the borrower to fulfill his needs. Furthermore, this business report is been pre! pared by the 3 major companies Equifax, Experian and Trans Uni! on. Thro ugh these agencies you can obtain the report free of cost. This service has the objective to widen up the possibility so that customer can easily understand it. Hence, you can say that these business reports provide the correct and suitable details with better knowledge regarding to the matter of your finances. Source Article : http://www.articlesbase.com/credit-articles/business-credit-report-procure-credit-report-to-know-your-fiscal-status-1410022.html

What is a Reverse Mortgage? Q & a

Q. What is a reverse mortgage? A. A reverse mortgage is a loan that enables senior homeowners, age 62 and older, to convert part of their home equity into tax-free* income "without having to sell their home, give up title to it, or make monthly mortgage payments. The loan only becomes due when the last borrower (s) permanently leaves the home. Q. How is a reverse mortgage like a home equity loan? How is it different? A. Both a reverse mortgage and a home equity loan use the equity you have built up in your home to provide you with readily available cash. They differ in that with a home equity loan you must make regular monthly payments of principal and interest. However, with a reverse mortgage you do not make any monthly mortgage payments for as long as you stay in the home. Q. Can my current income influence my ability to get a reverse mortgage? A. No. Since reverse mortgage borrowers need not make monthly repayments, there are no income qualifications. Q. What are the advantages of a reverse mortgage? A. There are many. Here are a few of the most significant: * Remain independent. A reverse mortgage allows you to remain in your home and retain home ownership. * Stay in your home. It allows you to remain in your home and retain home ownership. * No monthly mortgage payments. You need not pay back the reverse mortgage loan nor make any monthly mortgage payments until you permanently move out of the home. * Tax-free money. Because the money you receive from a reverse mortgage is not considered income, it is tax free* and will not affect your Social Security or Medicare benefits. * Freedom and flexibility. The money you get from a reverse mortgage is yours to use in any way you choose. Q.I heard that with a reverse mortgage the lender would own my home. Is this true? A. Totally false. The borrower retains title to the property. The reverse mortgage lender is merely extending a loan to the borrower. Because the homeowners retain title, they remain responsible for the payment of property taxes, insurance, utilities, home maintenance, and other expenses â€" just as they would with a standard first mortgage or home equity loan. Q. Can I refinance a reverse mortgage, as I would be able to do with a traditional home mortgage? A. Yes. Re financing can make sense if your home increases in value or interest rates drop. Q. Is it possible for my loan balance to become greater than the value of my home? A. No. You can never owe more than what your home is worth. What’s more, since the reverse mortgage is what is known as a "non-recourse" loan, the lender cannot seek repayment from your income, your other assets, or your estate. In other words, the house stands for the debt. Q. Can a reverse mortgage lender take my home away if I outlive the loan? A. No they cannot. And the loan is not due at that time either. In fact, you don’t need to repay the loan as long as you or another borrower continues to live in the house and keep the taxes paid and insurance in force. Q. How do you determine the amount of cash I am eligible for? A. The amount you can borrow depends on several factors, including your age, the type of reverse mortgage you select, current interest rates, the location of your home, and the appraised value of your home and FHA's lending limits for your area. In most cases, the older you are, the more valuable your home, and the less you owe on it, the more money you can get. Q. Are there any limits on how I use the money I receive from a reverse mortgage? A. You can use the money for anything you choose, from daily living expenses, home improvements, health care expenses, paying off existing debts, or simply enhancing your retirement years. For many people, the money provides a "financial security blanket," in case unexpected expenses arise. Q. Is there a choice in how I receive the cash from my reverse mortgage? A. Most definitely. With most reverse mortgages you have a wide range of payment options, one of which should be ideal to meet your financial needs. * You can choose to receive the money all at once, as a lump sum. * You can receive equal monthly payments as long as one of the borrowers lives and continues to occupy the property as a principal residence. * You can choose to receive equal monthly payments for a fixed period of months. * You can get a line of credit*; which allows you to take funds at times and in amounts of your choosing until the line of credit is exhausted. This is the most popular option, chosen by more than 60% of reverse mortgage borrowers. * You can opt for a combination of line of credit with monthly payments for as long as the borrower remains in the home. * Or, finally, you can choose a combination of the above. * Note: in Texas, lines of credit are not permitted by state law. Q. Who can qualify for a reverse mortgage? A. Seniors 62 years of age or older qualify. There are no income, health or credit qualifications. Q. I still owe money on a first or second mortgage. Can I still get a reverse mortgage? A. Yes. You may be eligible for a reverse mortgage even if you still owe money on a first or second mortgage. The funds you would receive in the reverse mortgage would be used to pay off whatever existing mortgages you have on the property. Q. Can I get a reverse mortgage on a second home or resort property I own? A. Unfortunately no. Reverse mortgages may only be taken out on your primary residence. Q. What kinds of homes are eligible for a reverse mortgage? A. First and foremost, the reverse mortgage must be on the borrower(s) primary residence, that is, where they live most of the year. Most reverse mortgages are taken on single family, one-unit homes. Some programs also accept two-to-four unit buildings that are owner-occupied. Some programs grant reverse mortgages on condominiums and manufactured homes built after June 1976. Mobile homes and cooperatives are generally not eligible for a reverse mortgage. Click here to contact the Financial Freedom representative nearest you to determine if your home is eligible. Q. Would a home that is in a "living trust" be eligible for a reverse mortgage? A. Yes. In most cases a homeowner who has put his or her home in a living trust can usually take out a reverse mortgage. A review of the trust documents would be made by the reverse mortgage lender to determine if anything in the living trust would be unacceptable. Q. When will I have to pay the principal and interests cost of this loan? A. Your reverse mortgage loan becomes due and must be paid in full when one or more of the following conditions occurs: (a) the last surviving borrower passes away or sells the home; (b) all borrowers permanently move out of the home; (c) the last surviving borrower fails to live in the home for 12 consecutive months due to physical or mental illness; (d) you fail to pay property taxes or insurance; (e) you let the property deteriorate, beyond what is considered reasonable wear and tear, and do not correct the problems. Q. What has to be repaid when the loan becomes due? A. When the last surviving borrower permanently moves out of the home or dies, the reverse mortgage loan becomes due. The reverse mortgage principal, interest charges, and service fees (such as closing cost fees) are paid from sale of the house or other assets of the estate. Source Article : http://www.articlesbase.com/mortgage-articles/what-is-a-reverse-mortgage-q-a-391470.html

My Fix for Excessive Credit Card Debt

Most people advocate the case of credit cards, quoting the benefits and convenience that arises from them. However, there is another group/line-of-thought that strongly opposes credit cards. The reason being 'Excessive Credit Card Debt', which is one of the most serious problems faced by the credit card holders and credit card industry. However, you can't pull the shutters on the credit card industry just because of a few irresponsible people (or even if it's more than few). That is not a solution for beating excessive credit card debt. Moreover, you can't overlook the benefits associated with the credit cards. The issue of excessive credit card debt can be looked at from 2 angles. First is addressing of the excessive credit card debt problem at the industry level and second is the addressing of the excessive credit card debt problem at the individual's level i.e. at the credit card holder level. The first method involves increasing awareness of the excessive credit card debt problem to the masses. This is more or less being done currently too. However, there should also be an effort to tackle this problem of excessive credit card debt at an even deeper level. This means trying to devise a mechanism to nip the problem (of excessive credit card debt) in the bud. This mechanism should actually be a part of the overall system. A lot of thought needs to go into devising such a mechanism. Case studies should be taken up, statistics gathered and a proper forum formed (with representatives from the credit card holders and from the credit card suppliers). As of now, the credit card suppliers just seem to be engaged in coming out with new products and getting customers enrolled to those products. There is little attention paid towards addressing the problem of excessive credit card debt in the real sense. Something like attending mandatory seminars on the root causes of excessive credit card debt could be made part of the credit card application process. Another way of dealing with the problem of excessive credit card debt could be: developing a system for calculation of applicable credit card limit at the individual level i.e. no standard/product-based credit limits. Then there could be mechanisms for proactively warning the users about excessive credit card debt (based on their credit card usage) or even imposition of early restrictions on noticing the first signs that lead to excessive credit card debt At the individual's level, the treatment of the problem of excessive credit card debt would include following of best practices (on credit card usage and avoidance of excessive credit card debt) by the individuals themselves. A checklist or a set of questions could be provided to individuals for recognising the first signs of excessive credit card debt. So, the problem of excessive credit card debt can surely be dealt with by putting together some serious thinking at a broader level together with discipline at the individual's level. Source Article : http://www.articlesbase.com/credit-articles/my-fix-for-excessive-credit-card-debt-461565.html