A judgment lien is a court ordered lien that is placed against
the home or property when the homeowner simply fails to pay a
debt. This doesn't seem like a big deal, but when the homeowner
has a judgment lien against his or her home and wants to sell
it, the judgment lien has to be paid in full before the home or
property can be sold. Judgment liens can be placed against the
property for a variety of reasons such as unpaid credit card
bills, utility bills, department store bills, landscaping or
home improvement bills, and just about any bill that the
homeowner has failed to pay in a reasonable amount of time. Any
bill that can cause one to end up in court can result in a
judgment lien.
A judgment lien is different than a trust, in that the judgment
lien holder cannot foreclose on the home or the property as
trust holder can. Judgment lien holders can demand payment, but
ultimately they must wait for the homeowner to sell the property
before they can expect to be paid the money that they are owed
according to the judgment. Luckily for the judgment lien
holder, the court will typically assign an interest rate to
these liens so that the lien holder is compensated for their
waiting as the interest will continue to accrue until the debt
is paid in full. Because the majority of people will live in
their home for quite some time, the interest can make a
judgment lien grow, and grow, and grow over the years so that
it is quite large. Imagine what a lien of just $3,000 would
grow to over the years if the interest rate were 15% annually
and that would be an even bigger amount if the debt were $5,000
or $10,000!
Of course, judgment liens require court action. A creditor will
take the homeowner to court where the judge will determine if
the homeowner does in fact owe the creditor any money. If the
court decides that the creditor is owed the money, and the
homeowner will not or cannot make payment, the judge will order
that a judgment lien be placed against the property. The
judgment lien will then be entered into land records offices
for the city or county so that the home cannot be sold without
repayment of the debt. Once the lien is filed with the land
records office, the judgment lien is said to be attached to the
property, meaning that it cannot legally be sold without paying
off that lien. If the judgment lien is not listed at the land
records office, then it means that the debt or lien is not
legally attached to the property and does not need to be paid
off to sell the home.
A home or property can have numerous liens against it, which
may present a problem when the home is to be sold. Fortunately,
the law says that liens will be paid off in the order that they
were attached to the property, meaning the first lien will be
paid first, the second will be paid second, and so on. This is
a law that was basically developed for when a home is
foreclosed on. If a foreclosed home is auctioned it will first
pay off the first lien, then the second, and the third until
there is no money left to pay the debts that are still attached
or associated with the home. Of course, all trusts against the
house, such as mortgages and home equity loans, would be paid
off before the judgment liens, so it's not uncommon for these
liens to simply go unpaid because there is no money remaining
to pay these debts after the trusts are paid. If there is not
enough money to pay for all of the judgment liens and trusts on
the home or property, they are then wiped out and can no longer
be collected on. Of course, the auction will usually attempt to
pay for all of these debts, and they are paid for until there is
no money. The reason for this is that the new owner will not be
able to get any home equity loans or second mortgages with
judgment liens already on the home. If there is money left over
after everything is paid off, the remaining amount would go to
the foreclosed homeowner as all debts are paid.
You can look for judgment liens at the land records office,
though you will typically not find them listed with trusts.
Investors or homeowners looking to sell their home will have to
look into both trusts and judgments, as they are listed in
different areas. Investors can often be caught off guard when
they realize how much debt is attached to the home, and sellers
are often startled at old judgment liens that they had forgotten
about and don't want to afford to pay off in order to sell their
home. It's a good idea to go over all of this information before
one bids on a home or attempts to sell it or put it on the
market.
Judgment liens are not something that anyone wants put against
their home, but they are common enough. There comes a time for
many people when they simply cannot pay a bill, and a judgment
lien is ordered. Making a continued effort to pay down the debt
is a great idea so that you don't acquire large interest fees in
addition to the initial dollar amount of the lien. The homeowner
does not have to wait until the home is sold to pay off the
lien, instead they can be paid off as soon as possible. The
judgment lien is simply put in place so that the home cannot be
sold without the debt being paid, and when you look at it from
the creditors point of view, this is a great tool to ensure
that you'll eventually be paid the amount you are owed in
addition to an interest fee that will pay you for waiting.
About The Author: Visit http://www.theforeclosuresinfo.com and
http://www.stateof-california.com
Please use the HTML version of this article at:
http://www.isnare.com/html.php?aid=46104
Tuesday, April 25, 2006
Saturday, April 22, 2006
Learn How To Fix Your Credit & Debt Problems Before Buying Your Next House!
Most people think - mistakenly - that if you have credit
problems, you have to wait 7 years for them to go away. Well,
that's not always true.
Credit repair can help you...once you know how to do it. The
time to clean up your credit and pay off your debts is RIGHT
NOW, before you start looking for houses and applying for
mortgages. Cleaning up your credit and lowering your debt will
help you:
. get a better interest rate
. borrow more money
. and save lots of money in interest
Clean Up Your Credit Report
These days, getting credit is easy. Unfortunately, so is
getting into debt or financial trouble.
But just because you've had some money problems does NOT mean
you can't get a mortgage and buy a house. There are all kinds
of loans:
. loans for first time homebuyers
. loans for people with bad credit
. loans for people with perfect credit
. and loans for people without a lot of money for a down
payment
So, most people can get a loan these days. The question is, HOW
MUCH will you pay in the long run for higher fees and interest
rates?
A lot of people think that if something bad goes on your credit
report, that it must stay there for 7 years, or longer. But
that's not always true. Credit repair can work, if you know how
to do it.
And, you can do it yourself.
For example, I had lots of debt (from a business idea that did
not work) and got a lot of bad credit listings while getting
myself out of debt.
And within 6 months of paying off my last credit card bill
(remember, even if you have some debt you might still be able
to get a house loan) I repaired my credit to the point that I
got both a car loan and a mortgage. More importantly, I got the
LOWEST POSSIBLE interest rates, which over the life of a 30-year
loan could save me tens of thousands of dollars!
How did I repair my credit?
I got a copy of all my credit reports, and kept writing letters
asking the credit bureaus to remove the bad credit.
So it CAN be done. (And I had some pretty bad stuff on my
credit reports.) The worst that can happen is that the credit
bureaus can say "no" to your request. The best that can happen
is that your credit score will improve, and you'll pay a lower
interest rate, get a bigger mortgage, or both!
So, how do you clean up your credit report?
The first step is to get a copy of your credit report from the
3 credit bureaus, listed below. You might have to pay a few
dollars, but it is well worth it. If you moved, changed jobs,
and had any other personal info change recently, you can send
it to the credit bureaus, and request a free copy.
NOTE: You are now entitled to one free credit report each year
from http://www.annualcreditreport.com.
The next step is to circle or highlight the bad credit items,
and write a letter to each credit bureau asking them to remove
the item. If you have a lot, focus on one or two at a time.
Then, wait a month or two, and ask for another one or two items
to be removed.
It might take a few tries.
But if you keep trying, eventually most (or all) of the items
will be removed.
In the worst case - even if you only get a few removed - it
might still improve your credit score, reduce your interest
rate, and lower your monthtly payment!
So don't give up.
It might take a little time to repair your credit - especially
if you've had quite a few money problems. But every little bit
helps your credit score, your interest rate, and the amount of
money you can get.
Then Pay Off As Much Debt As Possible
I know, when preparing to buy your new home money is real
tight. But if you have any extra money - any at all - try to
pay off as much debt as possible. This will help you:
. Be more likely to be approved for a mortgage
. Be able to borrow more money
. Have one (or more) less bill to worry about once you start
having to pay a mortgage every month.
If you can't pay off your debt, you might want to consider
waiting before buying your new home. Or, look into a debt
reduction program that can help you get out of debt faster.
There are no rules that say you can't have some debt and still
buy a house!
But think very carefully about your financial situation. And
TRY to pay off as much debt as possible before buying a house.
There is enough to worry about as a new homeowner, without
having to worry about paying your credit card bills.
At the very least, if you do have any debt, MAKE SURE you can
comfortably afford to pay your credit card bills as well as
your mortgage, before getting started!
About The Author: Kris Bickell is the owner of
HouseBuying-Tips.com, a site that helps first time home buyers
avoid the costly mistakes that many new homebuyers make. For
more tips on buying a house, getting a mortgage, finding a
realtor, and getting out of debt, sign up for the free "How To
Avoid These 10 Costly Mistakes When Buying Your First Home"
email course at: http://www.HouseBuying-Tips.com/course.html. ©
2005 HouseBuying-Tips.com
problems, you have to wait 7 years for them to go away. Well,
that's not always true.
Credit repair can help you...once you know how to do it. The
time to clean up your credit and pay off your debts is RIGHT
NOW, before you start looking for houses and applying for
mortgages. Cleaning up your credit and lowering your debt will
help you:
. get a better interest rate
. borrow more money
. and save lots of money in interest
Clean Up Your Credit Report
These days, getting credit is easy. Unfortunately, so is
getting into debt or financial trouble.
But just because you've had some money problems does NOT mean
you can't get a mortgage and buy a house. There are all kinds
of loans:
. loans for first time homebuyers
. loans for people with bad credit
. loans for people with perfect credit
. and loans for people without a lot of money for a down
payment
So, most people can get a loan these days. The question is, HOW
MUCH will you pay in the long run for higher fees and interest
rates?
A lot of people think that if something bad goes on your credit
report, that it must stay there for 7 years, or longer. But
that's not always true. Credit repair can work, if you know how
to do it.
And, you can do it yourself.
For example, I had lots of debt (from a business idea that did
not work) and got a lot of bad credit listings while getting
myself out of debt.
And within 6 months of paying off my last credit card bill
(remember, even if you have some debt you might still be able
to get a house loan) I repaired my credit to the point that I
got both a car loan and a mortgage. More importantly, I got the
LOWEST POSSIBLE interest rates, which over the life of a 30-year
loan could save me tens of thousands of dollars!
How did I repair my credit?
I got a copy of all my credit reports, and kept writing letters
asking the credit bureaus to remove the bad credit.
So it CAN be done. (And I had some pretty bad stuff on my
credit reports.) The worst that can happen is that the credit
bureaus can say "no" to your request. The best that can happen
is that your credit score will improve, and you'll pay a lower
interest rate, get a bigger mortgage, or both!
So, how do you clean up your credit report?
The first step is to get a copy of your credit report from the
3 credit bureaus, listed below. You might have to pay a few
dollars, but it is well worth it. If you moved, changed jobs,
and had any other personal info change recently, you can send
it to the credit bureaus, and request a free copy.
NOTE: You are now entitled to one free credit report each year
from http://www.annualcreditreport.com.
The next step is to circle or highlight the bad credit items,
and write a letter to each credit bureau asking them to remove
the item. If you have a lot, focus on one or two at a time.
Then, wait a month or two, and ask for another one or two items
to be removed.
It might take a few tries.
But if you keep trying, eventually most (or all) of the items
will be removed.
In the worst case - even if you only get a few removed - it
might still improve your credit score, reduce your interest
rate, and lower your monthtly payment!
So don't give up.
It might take a little time to repair your credit - especially
if you've had quite a few money problems. But every little bit
helps your credit score, your interest rate, and the amount of
money you can get.
Then Pay Off As Much Debt As Possible
I know, when preparing to buy your new home money is real
tight. But if you have any extra money - any at all - try to
pay off as much debt as possible. This will help you:
. Be more likely to be approved for a mortgage
. Be able to borrow more money
. Have one (or more) less bill to worry about once you start
having to pay a mortgage every month.
If you can't pay off your debt, you might want to consider
waiting before buying your new home. Or, look into a debt
reduction program that can help you get out of debt faster.
There are no rules that say you can't have some debt and still
buy a house!
But think very carefully about your financial situation. And
TRY to pay off as much debt as possible before buying a house.
There is enough to worry about as a new homeowner, without
having to worry about paying your credit card bills.
At the very least, if you do have any debt, MAKE SURE you can
comfortably afford to pay your credit card bills as well as
your mortgage, before getting started!
About The Author: Kris Bickell is the owner of
HouseBuying-Tips.com, a site that helps first time home buyers
avoid the costly mistakes that many new homebuyers make. For
more tips on buying a house, getting a mortgage, finding a
realtor, and getting out of debt, sign up for the free "How To
Avoid These 10 Costly Mistakes When Buying Your First Home"
email course at: http://www.HouseBuying-Tips.com/course.html. ©
2005 HouseBuying-Tips.com
Monday, April 10, 2006
Consolidation Debt For Newbies
Consolidation debt to help get you out of the quagmire
Will you agree with me if I tell you that, the key to financial
success is to live within your means? This is an old belief that
modern day income earners have completely forgotten. This is
because it is now extremely easy to get into financial trouble.
Credit card, store cards and other loans are easy to acquire.
However, you will agree with me when I say that they are very
hard to pay, you may end up living a paycheck-to-paycheck kind
of life if you will not fix the situation immediately.
Consolidation debt may save your sinking credit standing.
However, you need to be careful if you need a consolidation
debt. Many debt consolidation companies may offer their
services when you need a consolidation debt. This may be
helpful but it is more advisable if you try to make a realistic
personal assessment of your financial condition before deciding
on acquiring a consolidation debt.
First, you need to consider the ultimate reason why you think a
consolidation debt may be your only way out. Does interest rate
burden you that even you pay your dues; your obligation remains
that same. If this is so, then may be a consolidation debt can
be your best bet.
If you need to reduce your monthly payments to only one in
order to avoid sacrificing other debtors in favor of another,
then this may also be a reason for acquiring consolidation
debt. Additionally, proper handling of a consolidation debt may
speed up repair of your credit standing. This may be a very good
benefit you will get from acquiring a consolidation debt.
When you finally decide base on your personal assessment that
really, consolidation debt is a good way to help take back your
credit standing and credit worthiness, then you need to decide
on the next issue.
Do you want to negotiate for your consolidation debt or would
you need a credit counselor? You may try to negotiate
personally but this proves to be too tedious and that there may
be technical terms you are not familiar to.
Let us hope you do not fall prey to loan sharks that will apply
unrealistically high interest rates on the consolidation debt
you will acquire. It may be a good recommendation to get the
services of a reputable and respectable lending institution to
negotiate for your consolidation debt.
There are benefits you may get from debt consolidation
companies that you may not provide for yourself. Since, they
are in the business of providing debt consolidation services,
they may be able to negotiate better and may lessen your debt,
lessen the interest rates and even lessen the late payment
charges. This is going to be very beneficial.
However, you need to be smart in choosing a debt consolidation
company to represent you in your consolidation debt
application. Because there are some who may take advantage of
you. Get references and find resources that may help you in
assessing the best lending institution to represent you.
Finally, a good recommendation for acquiring a consolidation
debt is to get as many proposals as you can. From there, you
assess which offers the most flexible terms. Consider the
monthly payments you need to set aside.
You may also need to consider the length of the payment terms
and the charges of the debt consolidation company for the
services in acquiring your consolidation debt. After all these
get the most advantageous offer and start from there. Take back
your life and your credit standing. Avoid headaches and
sleepless nights due to bugging creditors. When you finally get
a consolidation debt, pay diligently, this is the best way for
you.
About The Author: Diego H. is the owner of My Debt
Consolidation Advisor and invites you to take a download free
helpful information, articles, and more check
http://www.mydebt-consolidation.biz/
Will you agree with me if I tell you that, the key to financial
success is to live within your means? This is an old belief that
modern day income earners have completely forgotten. This is
because it is now extremely easy to get into financial trouble.
Credit card, store cards and other loans are easy to acquire.
However, you will agree with me when I say that they are very
hard to pay, you may end up living a paycheck-to-paycheck kind
of life if you will not fix the situation immediately.
Consolidation debt may save your sinking credit standing.
However, you need to be careful if you need a consolidation
debt. Many debt consolidation companies may offer their
services when you need a consolidation debt. This may be
helpful but it is more advisable if you try to make a realistic
personal assessment of your financial condition before deciding
on acquiring a consolidation debt.
First, you need to consider the ultimate reason why you think a
consolidation debt may be your only way out. Does interest rate
burden you that even you pay your dues; your obligation remains
that same. If this is so, then may be a consolidation debt can
be your best bet.
If you need to reduce your monthly payments to only one in
order to avoid sacrificing other debtors in favor of another,
then this may also be a reason for acquiring consolidation
debt. Additionally, proper handling of a consolidation debt may
speed up repair of your credit standing. This may be a very good
benefit you will get from acquiring a consolidation debt.
When you finally decide base on your personal assessment that
really, consolidation debt is a good way to help take back your
credit standing and credit worthiness, then you need to decide
on the next issue.
Do you want to negotiate for your consolidation debt or would
you need a credit counselor? You may try to negotiate
personally but this proves to be too tedious and that there may
be technical terms you are not familiar to.
Let us hope you do not fall prey to loan sharks that will apply
unrealistically high interest rates on the consolidation debt
you will acquire. It may be a good recommendation to get the
services of a reputable and respectable lending institution to
negotiate for your consolidation debt.
There are benefits you may get from debt consolidation
companies that you may not provide for yourself. Since, they
are in the business of providing debt consolidation services,
they may be able to negotiate better and may lessen your debt,
lessen the interest rates and even lessen the late payment
charges. This is going to be very beneficial.
However, you need to be smart in choosing a debt consolidation
company to represent you in your consolidation debt
application. Because there are some who may take advantage of
you. Get references and find resources that may help you in
assessing the best lending institution to represent you.
Finally, a good recommendation for acquiring a consolidation
debt is to get as many proposals as you can. From there, you
assess which offers the most flexible terms. Consider the
monthly payments you need to set aside.
You may also need to consider the length of the payment terms
and the charges of the debt consolidation company for the
services in acquiring your consolidation debt. After all these
get the most advantageous offer and start from there. Take back
your life and your credit standing. Avoid headaches and
sleepless nights due to bugging creditors. When you finally get
a consolidation debt, pay diligently, this is the best way for
you.
About The Author: Diego H. is the owner of My Debt
Consolidation Advisor and invites you to take a download free
helpful information, articles, and more check
http://www.mydebt-consolidation.biz/
Bad Credit Home Financing - Buy A House Even With Poor Credit
Sub prime lenders come in two groups: reasonable and
unreasonable. Reasonable sub prime lenders offer mortgage
financing to high risk borrowers with slightly increased rates
and fees. Unreasonable sub prime lenders charge several extra
points and excessively high fees. Only through comparative
shopping can you know if a particular lender is offering
reasonable or unreasonable rates.
Compare Rates
Comparing rates is easy through online lender websites. By
entering basic information, you can quickly receive quotes from
several mortgage lenders. These quotes will give you a rough
idea of who offers the most competitive packages. Be sure to
add in fees and extra points when you are considering the cost
of the loan.
Real Quotes
Real mortgage quotes require more information than just the
loan amount and your income level. You will also need to
provide information about your home's location, your down
payment, and other personal information.
After you have compared general quotes, you can request
specific quotes from a handful of mortgage lenders. Online
mortgage applications allow you to do this from the convenience
of your home where you can easily find your financial and
personal records.
Applying Online
Once you have received a quote from a mortgage lender, you can
quickly finish the application process. Some lenders will
require additional information online, but most lenders will
simply mail out the final paperwork for your approval. After
the forms are signed and notarized, you send it back to the
lender for final processing.
Refinance Later
A subprime loan does not have to be permanent. Mortgage lenders
look at the last three years of your credit history when
considering your application. So after making regular payments
on your mortgage and all your other bills, you can consider
refinancing for a lower interest rate. Other ways to improve
your credit rating include paying off credit cards and
increasing your cash reserves.
About The Author: Carrie Reeder is the owner of
http://www.abcloanguide.com, an informational website about
various types of loans. To view our list of recommended sub
prime mortgage lenders online, visit this page:
http://www.abcloanguide.com/lessthanperfectcredit.shtml
unreasonable. Reasonable sub prime lenders offer mortgage
financing to high risk borrowers with slightly increased rates
and fees. Unreasonable sub prime lenders charge several extra
points and excessively high fees. Only through comparative
shopping can you know if a particular lender is offering
reasonable or unreasonable rates.
Compare Rates
Comparing rates is easy through online lender websites. By
entering basic information, you can quickly receive quotes from
several mortgage lenders. These quotes will give you a rough
idea of who offers the most competitive packages. Be sure to
add in fees and extra points when you are considering the cost
of the loan.
Real Quotes
Real mortgage quotes require more information than just the
loan amount and your income level. You will also need to
provide information about your home's location, your down
payment, and other personal information.
After you have compared general quotes, you can request
specific quotes from a handful of mortgage lenders. Online
mortgage applications allow you to do this from the convenience
of your home where you can easily find your financial and
personal records.
Applying Online
Once you have received a quote from a mortgage lender, you can
quickly finish the application process. Some lenders will
require additional information online, but most lenders will
simply mail out the final paperwork for your approval. After
the forms are signed and notarized, you send it back to the
lender for final processing.
Refinance Later
A subprime loan does not have to be permanent. Mortgage lenders
look at the last three years of your credit history when
considering your application. So after making regular payments
on your mortgage and all your other bills, you can consider
refinancing for a lower interest rate. Other ways to improve
your credit rating include paying off credit cards and
increasing your cash reserves.
About The Author: Carrie Reeder is the owner of
http://www.abcloanguide.com, an informational website about
various types of loans. To view our list of recommended sub
prime mortgage lenders online, visit this page:
http://www.abcloanguide.com/lessthanperfectcredit.shtml
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