Below are the 3 most recent journal entries recorded in for10cents5's InsaneJournal:

Wednesday, November 16th, 2011
10:09 am	Tips on Home Equity Loans Offers for home equity loans are widely advertised. Lending institutions make it a point to highlight the advantages any potential borrower shall have in getting this kind of loan. One reason for the aggressive offer is that, with the home equity as collateral, this kind of loan is safer business for the lender than the credit cards. The aggressive campaign sometimes makes the potential borrower think only of what are highlighted and forget, to their regret later, the so-called fine print in the loan terms. In putting the house at risk, the owner-borrowers owe it to themselves and the family members to make sure they are making a decision they can handle. The biggest risk of a borrower is the lack of understanding of the loan terms. Here are some of the information any borrower should take time to be well versed of: Tips to the Borrower: * Have a clear idea of the reason for the loan. Is it a one-time or ongoing financial need? This is needed to decide if the loan should be Fixed Rate or HELOC (Home Equity Line of Credit). Be sure to choose the appropriate loan package. * It is a good idea if the take out would go directly to the party whom you want to pay with the loan. This would minimize the risk of spending the money for something or somebody else. * Ask for an official list of fees and interests before going further with the loan negotiation. Some agents conveniently fail to mention some fees like the closing costs and prepayment fees. Closing costs and prepayment fees are important information just in case the borrower decides to make advance payments later. * Be wary of scams. Some lenders may appear to be assisting the borrower to have a good deal by approving loans that are more than they can afford to pay but actually, the borrower is being led to the road of payment default and consequently foreclosure. * Research before signing anything. Contact people who have taken out loans from the lender. The Better Business Bureau is a good source of information regarding good business practices. * Don’t be misled by the low amortization. It may not even be enough to cover the monthly interest and the consequent is a surprise after years of payment that the principal of the loan is not yet paid. * Don’t be afraid or ashamed to ask about anything that is not clearly understood. In fact, any items that seem to be subject to interpretation should be confirmed with the lender. * The Truth in Lending Act gives the borrower the right to cancel the loan by informing the lender in writing within three days of issue. The home equity loan is an excellent and tempting source of cash for the home owner. The lenders consider it a safe investment but the opposite applies to the home owner. Yes, there are advantages like the tax-deductible, lower-than-the-credit card interest and the convenience since you can apply on line and agents are eager to do business. However, the collateral’s value is more than what the appraiser reports. The appraiser has no idea of the true value of a home. If ever a home owner finally decides to have that home equity loan, it should only come after a careful study of the pros and cons of the decision. For10cents Review Quibids Reviews (Comment on this)
10:09 am	Mortgage Problems and the Myth of Foreclosure Help For a number of reasons, the rate of home foreclosures is rising in the United States. In fact, the rate is up some 70% over a year ago. Part of this is due to rising interest rates that are making payments unaffordable to homeowners who bought their homes three or four years ago with adjustable rate mortgages. Many of these mortgages were set to adjust after three years, and the resulting increases in payments have left the homes unaffordable for their owners. With little recourse, thousands of owners have had to walk away from their homes. This unfortunate situation may be avoidable in some cases, particularly if the owners discuss their troubles with their lenders. Instead, many owners have answered ads posted by companies offering "foreclosure help", hoping to find a way to keep their houses despite their financial troubles. In many cases, the owners not only fail to get the help they need, but they often end up literally giving their houses away to the companies they thought would help them keep them. The scam is a common one that takes advantage of people in desperate situations. Mortgage companies that intend to foreclose on delinquent customers file notice with the counties in which the homeowner resides. The county posts those notices and investors make note of the addresses. With a bit of research, they determine the value of the property and the amount owed on the mortgage. The investors seek properties with large amounts of equity. They then approach the owner with an offer to "help" them with their financial troubles. The offers vary, but the deal usually involves an offer to make good on the delinquent amounts while renting the home back to the owner for a set period of time. At the conclusion of that time period, the investors say they will offer the owner-turned-tenant the opportunity to repay and take their home back. For desperate homeowners who want to keep their houses, these offers seem like a Godsend. Unfortunately, the deals rarely work out to the benefit of the owner. More often than not the paperwork provided with the offer includes a quitclaim deed, which, once signed by the owner, essentially gives the property to the investor. The investor, now the owner of the property, then demands an unreasonable amount of rent from the owner-turned-tenant. When he or she cannot pay, the investor evicts the tenant and sells the house, pocketing the profits. In some cases, investors have pocketed several hundred thousand dollars from a single property, all for the minimum investment of a few months' of delinquent mortgage payments. The former owner is left with nothing. Some states, such as Minnesota, have passed laws that severely restrict this practice, but others, such as Florida, have so far been unable to overcome large opposition from business interests. In the states with few restrictions, flyers offering foreclosure help can be found on telephone poles in just about every city. Unfortunately for homeowners who have financial trouble, the last thing they will receive if they respond to these flyers is help. Homeowners who are in financial trouble should call their lender first. The last thing lenders want to do is foreclose, so buyers would be better off calling their lender rather than trusting their home to a stranger who advertises on telephone poles. Copart Review Foreclosure.com Review (Comment on this)
10:09 am	Foreclosures and the Impact on Renters Much attention is placed on homeowners facing foreclosure. Yes, this attention is well deserved, but it appears as if many media and news organizations have forgotten about the impact foreclosure has on renters. If you are a renter living in a property that is facing or is in the middle of foreclosure proceedings, you may not know what to do or where to turn. For you, it may seem like you are at the end of your rope. When facing foreclosure, many renters will simply just cut their losses and relocate. This may mean having to move without recouping a security deposit. Unfortunately, there are some renters, possibly you, who cannot up and afford to relocate, especially without getting your security deposit back. When renting a new apartment, most landlords require a security deposit and if you weren’t prepared to move, you may not have the money. There is another serious issue that renters forced to relocated are facing. Foreclosures are on the rise. What does this mean? It means that an unprecedented number of homeowners have no place to live. This often turns them into renters. Unfortunately, this lessens the availability and rental choices for renters, like yourself. It may mean that you have to pay more in rent or move to another city or town. As previously stated, many renters decide to throw in the towel and relocate. If you are unable to do so, you may want to wait and see what happens. Of course, during this time you should take steps to protect yourself. Save enough money to cover your moving expenses, including a new security deposit. You will be prepared in the event that you are legally evicted from the property. You should, however, know that eviction from a property in foreclosure is not something happens overnight. You usually have a few days or even a few weeks to make alternative living arrangements. Before making a decision, all renters are urged to look at the property in question. Are you renting a unit from an apartment complex or a multi-family home? If you are, you may be able to stay. Investors at foreclosure auctions often purchase rental units. These investors want to see a return on their profit. The way to do this is to make sure their rental units are filled with quality, on time paying tenants. With that said, if you are renting a single-family home, you may want to prepare to relocate. Unlike with rental properties, single-family homes are often purchased in foreclosure auctions by those looking to live inside. Despite the fact that some new rental property owners may be willing to work with you and let you continue to rent, there is no guarantee that the property will sell. When low bids are received at a foreclosure auction, the original lender often steps up to the plate and buys the home. In this case, the home is no longer considered a foreclosure, but a REO (real estate owned) property. Unfortunately, this doesn’t always workout well for renters. With REO properties, lenders, who are also known as investors, may start the eviction process right away. Many cannot or do not want to become property managers, even just for a month or two. As previously stated, foreclosures can occasionally come as a surprise to renters. Your landlord will receive multiple warnings and notices, but they are not required by law to share them with you. Renters usually become aware of foreclosure proceedings when notices are placed on the building. At this point in time, you should contact the lender in question. See what your options are. Can you buy the property yourself? If you can prove that you have a stable income, the lender in question may be willing to work with you. As a recap, foreclosures are having a significant and usually negative impact on renters. If you are a renter who lives in a property that is facing foreclosure or if you fear foreclosure is looming, you may want to start making preparations to ensure that you are well prepared for what is to come. Copart Review College Scholarships and Grants (Comment on this)