In order to avoid foreclosure, you need to find the companies
and the services that are able to provide you with high quality
information. You do not need someone to come in and try to sell
you yet another deal. For honest to goodness help in getting
out of this debt and mess, you need high quality advice. While
it is not easy, you can avoid foreclosure.
First of all, make sure that avoiding foreclosure is the right
thing for you. If you can not make the payments and you cannot
find a way to get around it, letting it go will ruin your
credit, but until it is over it can't get any better. While
this is not news you want to hear, it can be helpful to some.
But, when you do have a shot, you need to take it. To avoid
foreclosure, you need many options. For example, you may want
to actually call the bank and ask them if there is a way you
can work with them to end the problems. Maybe they can extend
your payments so that you can get back up.
You may be able to get a loan that will cover the amount that
you owe as well as any other money that you need. This can then
be paid off in installments. Although hard to find, this is one
method to avoid foreclosure.
You should take the time to speak with the creditors that you
owe money to and see if you can work something out with them.
Be honest and tell them what has happened, what you plan to do
to get out of it, and see if they can help you. If it does come
down to selling the house, do your best to get through it before
it is too late. You can avoid foreclosure by taking the time to
find all the options that you have and then choosing the best
possible answer for you.
About The Author: For more information please see
http://www.avoid-foreclosure-info.co.uk
Saturday, October 29, 2005
Thursday, October 27, 2005
Credit Reports And Credit Reporting Agencies
We all know that our financial transactions are reported to
credit agencies that track how well and how quickly we pay our
debts and that when we apply for a loan for one reason or
another, those agencies report our credit history to
prospective lenders. However, most of us don't know a great
deal about how that actually happens and how our credit is
rated.
The fact is that credit reporting has evolved to an industry
all of its own. Just a few short years ago, when someone
applied for a loan, he or she put down credit references -
retail stores, banks, or other people or places with whom they
had done business in the past. As a matter of course, the
lender checked the references and decided whether or not to
grant a loan based on an amalgamation of the responses from
them. That really isn't the case any more.
Instead, there are three major agencies that track everyone's
credit and provide a credit rating when contacted by a
potential lender. The three agencies are Equifax, located in
Georgia; Experian, located in Texas; and Trans Union, located
in Pennsylvania. When someone applies for a loan, the lender
generally contacts one of these three agencies and obtains a
credit score and the score helps the lender decide whether or
not to make a loan.
Credit Scores
How is a credit score calculated? Until recently, that was one
of life's great mysteries, but over the past few years new
rules and regulations have made the information more readily
available. Your credit score is a number that ranges from 300
to 900, although the exact formula for determining that number
is proprietary and is not released. This is how it works in
general.
· 35% of the score is based on the history of how you have (or
have not) paid your bills. The agencies track how many of your
bills have been paid on time and how many haven't, as well as
whether or not any of them have been referred for collection.
The more recently you have had a collection or failed to pay
something on time, the worse your score will be.
· 30% of the score is based on the debts you have at the time
of the rating. It is includes car and home loans, credit card
debt, retail store debt and the like. If you have several
credit cards and they are all limited out, your credit score is
lower.
· 15% of the total score is based on how long you have had
credit. If you have never had credit or have only had credit
for a short time, the lower your score will be.
· 10% of the score is based on the number of inquiries that
have been received about your report, particularly if there are
several in the past year.
· 10% of the score is based on your current credit and the
types of credit you have. The number of credit cards and loans
you have, as well as the available credit you have on your
credit cards and considered.
Because your credit score is based on these factors and they
are constantly changing, your credit score changes along with
them. Therefore, there are things you can do to change your
credit rating and bring it up.
Changing your Credit Rating
The first thing to do is get a copy of your credit report and
make sure there aren't any mistakes on it. If there are, take
steps to get them corrected. Errors in reporting do occur,
although the credit bureaus would like for you to think they
are foolproof. Here are a few more tips to improving your
credit rating.
· Don't pay off the entire balance on your credit card. Keep
about 75% of it paid and keep a 25% balance. This applies to
multiple credit cards as well.
· Don't get rid of your older accounts. Keep them open. The
credit reporters look at the age of your accounts and the
longer you have had a particular account in good standing, the
better.
· Pay your bills on time. Experts say that this is probably the
most important factor of all.
· Prevent inquiries to your credit report whenever possible.
Your score drops with the number of inquiries.
The real key, however, is to only get credit when you need it
and when you do get it, use it wisely. You can damage your
credit rating with just a few late pays or collections and it
may take up to a year of paying everything on time to build up
a better rating.
About The Author: Max Hunter is the author of many credit
related articles. If you are looking for help with Payday loan
or any type of faxless loans please visit us at
http://www.PaydayLoanChoice.com
credit agencies that track how well and how quickly we pay our
debts and that when we apply for a loan for one reason or
another, those agencies report our credit history to
prospective lenders. However, most of us don't know a great
deal about how that actually happens and how our credit is
rated.
The fact is that credit reporting has evolved to an industry
all of its own. Just a few short years ago, when someone
applied for a loan, he or she put down credit references -
retail stores, banks, or other people or places with whom they
had done business in the past. As a matter of course, the
lender checked the references and decided whether or not to
grant a loan based on an amalgamation of the responses from
them. That really isn't the case any more.
Instead, there are three major agencies that track everyone's
credit and provide a credit rating when contacted by a
potential lender. The three agencies are Equifax, located in
Georgia; Experian, located in Texas; and Trans Union, located
in Pennsylvania. When someone applies for a loan, the lender
generally contacts one of these three agencies and obtains a
credit score and the score helps the lender decide whether or
not to make a loan.
Credit Scores
How is a credit score calculated? Until recently, that was one
of life's great mysteries, but over the past few years new
rules and regulations have made the information more readily
available. Your credit score is a number that ranges from 300
to 900, although the exact formula for determining that number
is proprietary and is not released. This is how it works in
general.
· 35% of the score is based on the history of how you have (or
have not) paid your bills. The agencies track how many of your
bills have been paid on time and how many haven't, as well as
whether or not any of them have been referred for collection.
The more recently you have had a collection or failed to pay
something on time, the worse your score will be.
· 30% of the score is based on the debts you have at the time
of the rating. It is includes car and home loans, credit card
debt, retail store debt and the like. If you have several
credit cards and they are all limited out, your credit score is
lower.
· 15% of the total score is based on how long you have had
credit. If you have never had credit or have only had credit
for a short time, the lower your score will be.
· 10% of the score is based on the number of inquiries that
have been received about your report, particularly if there are
several in the past year.
· 10% of the score is based on your current credit and the
types of credit you have. The number of credit cards and loans
you have, as well as the available credit you have on your
credit cards and considered.
Because your credit score is based on these factors and they
are constantly changing, your credit score changes along with
them. Therefore, there are things you can do to change your
credit rating and bring it up.
Changing your Credit Rating
The first thing to do is get a copy of your credit report and
make sure there aren't any mistakes on it. If there are, take
steps to get them corrected. Errors in reporting do occur,
although the credit bureaus would like for you to think they
are foolproof. Here are a few more tips to improving your
credit rating.
· Don't pay off the entire balance on your credit card. Keep
about 75% of it paid and keep a 25% balance. This applies to
multiple credit cards as well.
· Don't get rid of your older accounts. Keep them open. The
credit reporters look at the age of your accounts and the
longer you have had a particular account in good standing, the
better.
· Pay your bills on time. Experts say that this is probably the
most important factor of all.
· Prevent inquiries to your credit report whenever possible.
Your score drops with the number of inquiries.
The real key, however, is to only get credit when you need it
and when you do get it, use it wisely. You can damage your
credit rating with just a few late pays or collections and it
may take up to a year of paying everything on time to build up
a better rating.
About The Author: Max Hunter is the author of many credit
related articles. If you are looking for help with Payday loan
or any type of faxless loans please visit us at
http://www.PaydayLoanChoice.com
Wednesday, October 26, 2005
What Is Foreclosure And How To Avoid It?
Are you having trouble making ends meet? Not paying your bills
on time? Are you not able to keep up with your mortgage
payments and continue to get further and further behind? How do
you get yourself out of this mess and not lose your home?
Avoiding foreclosure may be possible and you should work hard
to avoid it.
What is foreclosure?
Foreclosure is the legal means by which a bank or other secured
creditor sells or repossesses your home or a piece of real
property due to your default on its promissory note. When your
house is foreclosed on, you must move out and it is usually
sold at public auction. When the foreclosure process is
complete, it is typically said that "the lender has foreclosed
its mortgage or lien."
In the United States, there are two sorts of foreclosure in
most common law states. Under "strict foreclosure," the bank
claims the title and possession of the property back in full
satisfaction of a debt, usually on contract. In the proceeding
simply known as foreclosure, the property is exposed to auction
by the county sheriff or some other officer of the court. Many
states require this latter sort of proceeding in some or all
cases of foreclosure, in order to protect any equity the debtor
may have in the property, in case the value of the debt being
foreclosed on is substantially less than the market value of
the property. In this type of foreclosure, a deed is issued to
the winning bidder at auction. Banks and other institutional
lenders typically bid in the amount of the owed debt at the
sale, and if no other buyers step forward they get title to the
property in return.
Some states have adopted non-judicial foreclosure proceedings,
in which the mortgagee, gives the homeowner a legally specified
notice of the default and the mortgagee's intent to sell the
property. If the homeowner fails to cure its default, or use
other lawful means, such as filing for bankruptcy to stop the
sale, the mortgagee or its representative will conduct a public
auction in a similar manner as the auction described above. The
highest bidder at the auction becomes the owner of the property
free and clear of any interest of the former homeowner.
What Should You Do To Avoid Foreclosure?
. Do not ignore letters from your lender. If you are having
problems making your payments, call or write to your lender's
Loss Mitigation Department without delay. Explain your
situation. This shows good faith on your part. Be prepared to
provide them with financial information, such as your monthly
income and expenses. Without this information, they may not be
able to help.
. Stay in your home for now. You may not qualify for assistance
if you abandon your property.
. Contact a HUD-approved housing counseling agency. Call (800)
569-4287 for the housing counseling agency nearest you. These
agencies are valuable resources and they frequently have
information on services and programs offered by Government
agencies as well as private and community organizations that
could help you. The housing counseling agency may also offer
credit counseling. These services are usually free of charge,
and they can help explain possible alternatives.
Some of the possible alternatives you may consider include the
following:
Special Forbearance. Your lender may be able to arrange a
repayment plan based on your financial situation and may even
provide for a temporary reduction or suspension of your
payments. You may qualify for this if you have recently
experienced a reduction in income or an increase in living
expenses. You must furnish information to your lender to show
that you would be able to meet the requirements of the new
payment plan.
Mortgage Modification. You may be able to refinance the debt
and/or extend the term of your mortgage loan. This may help you
catch up by reducing the monthly payments to a more affordable
level. You may qualify if you have recovered from a financial
problem and can afford the new payment amount.
Partial Claim. Your lender may be able to work with you to
obtain a one-time payment from the FHA-Insurance fund to bring
your mortgage current.
Pre-foreclosure sale. This will allow you to avoid foreclosure
by selling your property for an amount less than the amount
necessary to pay off your mortgage loan.
Keep in mind that your lender does not want to force
foreclosure proceedings because it costs them a lot of money to
do so. Therefore, if you are sincere and show good faith, they
are more likely to work with you to find a solution.
Foreclosure can seriously affect your ability to qualify for
credit in the future. So get the help you need and avoid it if
at all possible!
About The Author: Greg Smith publishes information on real
estate issues at http://www.searchexact.com/Real_Estate/. Visit
his web site http://www.searchexact.com/ for top resources on
unique and popular topics. This article may be freely reprinted
as long as the author's resource box and url links remain
intact.
on time? Are you not able to keep up with your mortgage
payments and continue to get further and further behind? How do
you get yourself out of this mess and not lose your home?
Avoiding foreclosure may be possible and you should work hard
to avoid it.
What is foreclosure?
Foreclosure is the legal means by which a bank or other secured
creditor sells or repossesses your home or a piece of real
property due to your default on its promissory note. When your
house is foreclosed on, you must move out and it is usually
sold at public auction. When the foreclosure process is
complete, it is typically said that "the lender has foreclosed
its mortgage or lien."
In the United States, there are two sorts of foreclosure in
most common law states. Under "strict foreclosure," the bank
claims the title and possession of the property back in full
satisfaction of a debt, usually on contract. In the proceeding
simply known as foreclosure, the property is exposed to auction
by the county sheriff or some other officer of the court. Many
states require this latter sort of proceeding in some or all
cases of foreclosure, in order to protect any equity the debtor
may have in the property, in case the value of the debt being
foreclosed on is substantially less than the market value of
the property. In this type of foreclosure, a deed is issued to
the winning bidder at auction. Banks and other institutional
lenders typically bid in the amount of the owed debt at the
sale, and if no other buyers step forward they get title to the
property in return.
Some states have adopted non-judicial foreclosure proceedings,
in which the mortgagee, gives the homeowner a legally specified
notice of the default and the mortgagee's intent to sell the
property. If the homeowner fails to cure its default, or use
other lawful means, such as filing for bankruptcy to stop the
sale, the mortgagee or its representative will conduct a public
auction in a similar manner as the auction described above. The
highest bidder at the auction becomes the owner of the property
free and clear of any interest of the former homeowner.
What Should You Do To Avoid Foreclosure?
. Do not ignore letters from your lender. If you are having
problems making your payments, call or write to your lender's
Loss Mitigation Department without delay. Explain your
situation. This shows good faith on your part. Be prepared to
provide them with financial information, such as your monthly
income and expenses. Without this information, they may not be
able to help.
. Stay in your home for now. You may not qualify for assistance
if you abandon your property.
. Contact a HUD-approved housing counseling agency. Call (800)
569-4287 for the housing counseling agency nearest you. These
agencies are valuable resources and they frequently have
information on services and programs offered by Government
agencies as well as private and community organizations that
could help you. The housing counseling agency may also offer
credit counseling. These services are usually free of charge,
and they can help explain possible alternatives.
Some of the possible alternatives you may consider include the
following:
Special Forbearance. Your lender may be able to arrange a
repayment plan based on your financial situation and may even
provide for a temporary reduction or suspension of your
payments. You may qualify for this if you have recently
experienced a reduction in income or an increase in living
expenses. You must furnish information to your lender to show
that you would be able to meet the requirements of the new
payment plan.
Mortgage Modification. You may be able to refinance the debt
and/or extend the term of your mortgage loan. This may help you
catch up by reducing the monthly payments to a more affordable
level. You may qualify if you have recovered from a financial
problem and can afford the new payment amount.
Partial Claim. Your lender may be able to work with you to
obtain a one-time payment from the FHA-Insurance fund to bring
your mortgage current.
Pre-foreclosure sale. This will allow you to avoid foreclosure
by selling your property for an amount less than the amount
necessary to pay off your mortgage loan.
Keep in mind that your lender does not want to force
foreclosure proceedings because it costs them a lot of money to
do so. Therefore, if you are sincere and show good faith, they
are more likely to work with you to find a solution.
Foreclosure can seriously affect your ability to qualify for
credit in the future. So get the help you need and avoid it if
at all possible!
About The Author: Greg Smith publishes information on real
estate issues at http://www.searchexact.com/Real_Estate/. Visit
his web site http://www.searchexact.com/ for top resources on
unique and popular topics. This article may be freely reprinted
as long as the author's resource box and url links remain
intact.
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