2 Situations Where Sale and Rent Back is the Wrong Choice
September 30, 2008
This article assumes you understand the sale and rent back process and will discuss 2 scenarios where selling and renting back your property is most likely not the best solution. If you are in these situations it is advisable you look at the alternatives which are suggested.
1. If you can reduce your monthly outgoings
Some people may find that they can reduce their monthly outgoings by consolidating their debts to a rate that is more affordable. This does not mean taking out more debts to pay off existing ones but getting all existing debts onto the best interest rate possible. If financial difficulties are causing you to ask yourself ’shall I sell my home and rent it back?’ it is often worth while looking at loan consolidation as a possible alternative.
This may allow you to keep ownership of your house but it does not guarantee that your future outgoings would be less than if you sold and rented back. If you are not sure what to do, it may be worth getting a rental quote from a rent back specialist (the good ones will give this free) and compare it to your potential outgoings if you consolidate your loan. This way you will be able to make a more informed decision.
2. When you want to get full market value for your property
If you want to get the best possible price for your property then sale and rent back is most probably not for you. Sale and rent back companies are not able to offer you 100% of the market value of your property due to the costs they incur buying it and the profit margin they need. Those companies that say they will offer 100% of the market value and rent your property back to you are most likely not telling the truth. They are trying to get their foot in the door and then will offer less. If they did offer 100% of the market value they could not survive as a business as they would incur a loss for every property they bought. Reputable sale and rent back companies normally offer up to 80% of the properties value.
You need to make sure you sell to a company that (a) is honest and upfront with you and (b) has a sound business model because if they go out of business there are going to be complications with you staying in your house.
If you want the best price possible for your property and do not need to stay in it then selling via an estate agent is the best solution. If you want the best price for your property, do not want to rent back and need a quick sale then a cash buyer is often the best solution. Many rent back companies can offer this ‘quick cash sale’ service (including us).
The bottom line is: sale and rent back is not the solution for those wanting full market value for their property and beware of companies that say they can offer this.
Tags: foreclosure
How To Stop A Repossession
September 30, 2008
This article will outline the steps you can take to stop a repossession. It assumes that notice of eviction has been issued by the court bailiffs giving a date and when eviction will occur. If you are not sure if you are at this stage please contact the national debt helpline.
If you have been given a notice of eviction you may be able to stop this, but you must act quickly.
Which forms you need to fill out
If you need more time to sell, to find somewhere else to live, or want to make a revised offer to pay the arrears by monthly instalments you should apply for the warrant to be suspended on court form N244.You can pick up this form from your local county court.
When you fill in the N244 form remember to:
- Write the claim number of the case
- Write the warrant number
- Include the reason you have not been able to pay and your new offer (in part A on the front of the form)
- Tick the box in part B saying you rely on evidence in part C
- Attach your personal budget or write it out on the form in in part C on the back of the form
- Sign the statement of truth at the end of the form
Do this as soon as possible to allow the court time to arrange a hearing.
The court will set a date for a hearing, usually before the eviction date. It is imperative you go to this hearing or the court is unlikely to suspend the warrant.
If any further warrants are issued at this hearing you may still be able to ask the court to suspend them (for example, to give you time to find somewhere else to live). If all your efforts to stay in the property fail, you will be given an eviction date.
When the bailiffs come
Bailiffs have the power to force their way into your home if they have to so you need to move out before this date if you have not been able to stop the eviction. If they arrive when you are there you will have very little time to pack up your belongings and will only be able to return to pack up a couple of weeks later. You will then have to get the lenders permission to enter the property again in the future and arrange to remove your furniture. Some lenders try to arguethat they can keep any belongings left in the house. It is safer so remove all that you can before the eviction date.
After your eviction your lender will still add interest to your mortgage until the property is sold. They are obliged by FSA rules to sell your home fast for the best price but in reality their need to get a quick sale to recover their money means that it is likely to sell a lot lower than the price you could receive on the open market. They may sell it anything from 15% - 40% below the market value of the property.
The proceeds from the sale are used to pay off the court costs, the estate agents and solicitors bills, the mortgage and any second or third mortgages. The lender must tell you in writing how the money has been spent.
When will the nightmare end?
They must send you any money which is left over but if not enough was raised on the sale of the property to pay off all secured debts and costs you will still owe money to the lender. Due to repossessed properties being sold below their market value this is all to common unfortunately.
You do not want to get to this situation so take action as soon as possible by trying to pay off the arrears, selling your property before you get evicted (so you get a better price) or selling and renting back your property so you can stay there.
Tags: foreclosure
What is the Timeline for Foreclosure
September 29, 2008
If you are interested in learning what it will take to stop foreclosure proceedings you will have to seek the knowledge that will be required in order to do so. Actually, the timeline for foreclosure is different from state to state, but there are similarities. If you are a borrower it would be smart to fully understand and know the entire foreclosure process, not just the timeline for foreclosure. Many borrowers lack knowledge or are very uninformed, or even misinformed. This sad lack of knowledge can wind up being devastating.
As you have probably discovered, any undertaking without the required knowledge will usually end up being a bad deal. Many borrowers do not comprehend or want to admit that there are predators out there disguised as mortgage brokers, real estate investors and attorneys that will steal you blind. Your misfortune, likely caused by lack of knowledge can bring them large monetary growth.
The timeline for foreclosure will generally follow this agenda. The foreclosure timeline begins when you are just one day late in paying your mortgage payment. Yes, one day late. Usually, at this point no additional fees have been added yet. If you do not remit your entire payment within 16-30 days a penalty or a late charge will be added on to the total amount due. Around this time you will certainly hear from the mortgage lender. They will ask you why you haven’t sent your loan payment. If your loanpayment goes more that 30 days behind, you will be defined as in default of your mortgage loan agreement.
Being in default in the simplest terms, at this point, means you are late on your house payments. If you have not sent a mortgage payment after thirty days, the lender may decide to exercise their rights and take possession of your property. Whatever you do, do not freak out. Remain calm and remain in contact with your mortgage lender during this foreclosure process. These days the bulk of lenders really do not want to take possession of the property. They will usually be willing to assist you if they can. Do not be afraid to inquire about� what plans they have available to you.
Between the 60th and 90th days or non-payment, an official notice of default will be sent to the homeowner. At this point during the timeline for foreclosure, collection costs will be added on and the mortgage company’s legal department will put together and send the required documents to a local lawyer. This will begin the actual foreclosure proceedings.
The last leg of the foreclosure timeline occurs somewhere between day 150 and day 415. The homeowners property will be scheduled for quick sale at a foreclosure sale or a foreclosure auction after the Notice of Trustee Sale is filed. There are certain guidelines and points that must be followed and adhered to during a foreclosure process. Remember that a foreclosure is a legal event. The up-coming foreclosure will likely advertised in the local paper, once the case is referred to local lawyers.
The homeowner still has the right to halt the process leading up to the foreclosure. Most states have laws pertaining to. During the pre-foreclosure period, the borrower may be able to purchase the property back from the lender if they have secured the financial means. Sadly a great many of homeowners will be put out of their property by the local law enforcement agencey. This situation could be avoided if the borrower pocesses the knowledge about what is available to them when they are facing foreclosure.
Tags: foreclosure
Very Useful Identity Theft Protection Pointers
September 29, 2008
Identity theft is something that can affect almost everyone – no matter where they live, and regardless of your age, social standing or race and color. Thieves may spare your car and your near and dear ones and may even leave your wallet unaffected because they have another target in mind - your identity. The cases of identity theft continue to mount and companies as well as individuals are losing billions of dollars as a consequence.
Reduce Chances Of Identity Theft Taking Place
It is therefore necessary to learn about some useful tips regarding proper identity theft protection which will help ensure that the chances of having your identity stolen are greatly reduced. The first (and, perhaps simplest tip) is to shred documents containing vital and important information. You need to destroy your outdated credit card statements as well as your bank statements and also medical bills by running these through a shredder that only cost about thirty dollars; but, which can help save you thousands of dollars.
It is very unwise to put your social security card in your wallet and carry it about with you. This identity theft protection tip is extremely important and must be adhered to. It would in fact, be far better for you to lock your social security card somewhere safe – such as in a safety vault. Instead of carrying the social security card with you it would be far better to memorize the number – though not by writing it down on a piece of paper.
Another important identity theft protection tip is to be very careful when submitting your personal details. Identity thieves are very clever and will use all sorts of sophisticated means by which to steal your identity. They could create fancy websites; offer you jobs or even claim to be sending you emails from your bank requesting personal information from you.
Identity Theft Protection Tips
Yet another identity theft protection tip that can help save you from becoming a victim of identity theft is to use security envelopes when sending personal information documents through the mail. Such envelopes will ensure that identity thieves will not be able to view the information contained in the documents enclosed in the envelopes.
Lastly, you should also pay attention to another identity theft protection which is to Xerox the contents of your wallet and file the copies away in a safety vault in order to keep a copy of important information contained in your wallet. Such copies will prove to be very important in case you loose your wallet or even when the wallet is stolen.
Credit card fraud too is on the rise and this is another area where you will need to learn about how to prevent such form of fraud. Identity theft can occur in a number of ways and so, even in case you have not given out your personal information; or, you have not had your wallet stolen; identity thieves can (and will) strike in very novel ways to deprive you off your identity. Taking extreme identity theft protection measures is the best way to combat identity thieves.
Tags: identity theft
401k Planning: Its Not Too Late To Start Now
September 28, 2008
Where do you want to be when you retire? Will you be on an island in the Bahamas? Working in a different field? Or simply enjoying your spouse? Ninety-five percent of Americans have fears about retirement and 42% feel they will run out of money entirely, according to a 2005 study by NAVA. Just as you wouldn’t go on vacation without an itinerary or a budget, you shouldn’t run toward your retirement blind. With the right plan, 401k planning can be a breeze.
When you’re first getting started, you’ll want to envision how you want your retirement to be. While you’ll be saving money on gas and eating on-the-run, remember that there will be additional expenses — notably healthcare — as you age. Check with the Social Security Administration to find out what your benefits will be. Go over your employer’s retirement and 401k plan. After realistic considerations, you may want to consult a retirement planning calculator.
Some feel most comfortable using retirement planning software. Forbes Magazine recommends Quicken Retirement Planner ($59), Morningstar ($125) and ESPlanner Plus ($199). This option allows you the time and a no-pressure approach to examining your options independently. If you like having things explained in person, you can ask your banker, life insurance agent, investment broker, accountant or attorney for advice. To avoid the hassle, 401k planning services are another avenue, although most places charge around $200 per consultation.
Don’t rely on social security! Social security only provides for approximately one-third of the average American’s retirement plan. Instead, focus on your 401k as the bulk of your retirement savings and invest as much as possible. Consider annuities as a great supplemental retirement plan. Remember, tax-efficient options are increasingly crucial in saving up that nest egg.
Contribute the maximum on your 401k! Putnam Funds did a study in 2005 that found if you earned $40,000 in 1990 saving 2% of your salary, you’d have $40,000 by 2005. However, if had you saved 6% of your salary, your return would have tripled!
Beware of inflation! Ronald Reagan once warned, “Inflation is as violent as a mugger, as frightening as an armed robber and as deadly as a hit man.” Many people forget to factor inflation into their 401k planning. Consider that a $60,000/year lifestyle will cost you $80,635 in ten years and double that in thirty years! Your investment returns should be high enough to cover this pitfall. Most pensions and social security account for inflation and adjust accordingly; however, if you plan to dip into savings accounts or investments, your money will decrease in value over time.
While it may seem overwhelming at first, all the tools are available to make your retirement planning less tedious. Whether it’s a retirement planning service and personal consultant or retirement planning software, you’ll find answers. You can leave the investments up to a trustee who will take the guesswork out or you may choose to take a more active role in your investments. Your best bet is to start now and make a variety of investments to ensure your golden years are truly the best.
Tags: retirement planning
The Importance Of Adoption Lawyers When Adopting A Child
September 28, 2008
Adoption lawyers prepare couples for the adoption process and assist with legal requirements; because of the legal complexities involved, their knowledge and experience will be invaluable. It is unlikely a person or couple without extensive legal training could hope to finalize an adoption; this is an area of law that doesn’t take the actions of novices seriously - however well meaning. The courts must be supplied with sufficient cause for the adoption; this request will probably require information relating to the child’s birth certificate and any other related details.
Some parents try to carry this aspect out without representation; however, there are many safeguards in place with the procedure, something that a lawyer specializing in adoption will be well aware of. During the finalization process of the adoption, it might help to have a lawyer present as the adoptive parents must attend a hearing which usually takes place within the first year after a child is placed in their new home. It is quite normal for adoption agencies to make use of adoption lawyers because they are acutely aware of how complicated the law can be in this area.
When people choose to adopt internationally, legal representatives must be present because there are issues to sort through when adopting a child from a foreign country as every country has its own laws and regulations. Owing to language barriers, it would be almost impossible for the adoptive parents to read and understand any legal documents drawn up in a foreign country. If you are aware of how difficult it is to adopt in your own country then you’ll understand why an adoption attorney is needed; it really can’t be done without their expertise.
The legal problems surrounding the child’s citizenship alone is enough to stop most would be parents in their tracks; this complex process alone warrants the use of someone who is trained in legal matters. The knowledge and skills from adoption lawyers can supply are immeasurable and will make the difference between a successful adoption and a failed attempt. They will also be familiar with any traps that the unsuspecting couple may fall into, and any loopholes they need to be aware of.
Lawyers are frequently retained by non-profit organizations that deal with adoption as well as adoption agencies as they are well aware of how complicated the procedure is. The facility of a retained legal representative can be a great benefit for a couple; this saves them the often difficult process of finding an attorney of their own. There are past cases where prospective parents have believed they had completed the procedure and were legal parents when that was not the case at all; a lawyers service can provide a reassurance that vulnerable parents require.
Tags: identity theft
Your Realistic Info About Retirement Issues
September 28, 2008
One of the first things to do is making a list of some of the goals you have for your retirement. Are you planning on traveling? Do you want to move to another place because of the climate, or to be closer to family? Or perhaps you just want to stay in the same place and pursue your interests and hobbies. Irrespective of what your goals may be, you will require money for it from an income.
It is projected that baby boomers will have retired lives that will last for 30 years, and perhaps even more. Hence, you will have to make a plan that generates income for that many years. It could include taking up another career after retiring, to augment your retirement income. You can use retirement calculators to find out the amount of money you will require for your retirement.
Financial planning retirement calculators can take a big burden off your shoulders in planning for your retirement. Quite simply, these calculators can really help you keep track of the numbers you need in order to achieve your financial goals upon retiring. There are many financial planning retirement calculators available on the Internet today; in fact, a quick Google search will help you find these in mass.
Retiring at 65 is not typical anymore as people nowadays retire even at 60 and then they have to plan for around 30 years of not working. Retiring late means, you don’t get a chance to do everything you wish for. Retirement generally brings in a change in the existing lifestyle and things that encompass retirement years include career changes, possible relocation and cutting back work. Hence planning is essential to lead a satisfying retired life. Retirement planning should be based on identifying what that term means to you and how the lifestyle change can be funded.
Many people are uncertain about their pre-retirement planning. Are you confused about the right plan or selecting a career path after retirement? You should be, and more so if you are nearing your fifties as you have plenty of years to plan ahead and this question is the one that should lead you to the right path. Some people find pre-retirement planning very tedious and boring and they feel that they would need more money than they calculate. But that is not an excuse to losing a chance to learn about 401 retirement plan matters.
Many executives prefer leading stressful lives, as they don’t know how to start planning for their retirement. Some find themselves locked in a decent pay pack and they cannot think of anything else or any change over.
P.S. Out of the box thinking in terms of retirement - learn how to start saving your paper money from complete meltdown. Read about junk silver bags and buy junk silver.
Tags: retirement planning
Credit Scores: What You Can Do To Imrove Yours
September 27, 2008
More than two-thirds of Americans don’t even know what a credit score is, says a recent Consumer Federation of America survey. Basically, good credit scores mean you’re likely to repay a loan and bad credit scores put you into a high risk pool as a potential borrower, hurting your chances of receiving an offer or even a good deal on your next credit card. Your credit score is based on your payment history, how much debt you have, how much credit you were offered and how frequently you borrow.
The most common way people get poor credit scores is to miss a credit payment or to pay late. At the time you may think, “Who cares if it’s just a few days late? They’re still getting their money.” However, once that lateness or missed payment is reported, a credit score can drop as much as 100 - 150 points and will take 24 months to be fully restored. To remedy the situation, be sure you bring all your credit accounts current, paying off late payments and always paying at least the minimum monthly fee, rather than waiting to pay it all at once. For many people, paying automatically through debit or setting a monthly cell phone reminder a week in advance are the best ways to ensure bills get paid on time.
In some situations, getting new credit cards is a good way to actually improve credit scores. If any of your cards have double digit interest rates, it’s best to shop around for a better rate. Sometimes you can consolidate several other cards onto one low-rate card, like a Virgin Credit Card, which offers 15 months interest-free and a transfer fee of 2.98%. Another is Barclays, which has 14 months interest free and a 2.9% fee. However, be careful if you choose this route because your interest rate will be hit very hard if you miss even one payment. Also be aware that applying for numerous credit cards in a short amount of time will bring down a credit score as well. If you’ve had big trouble in the past, then you may want to look for a secured credit card, which is sort of like a debit account: you pre-pay and can only borrow what’s guaranteed in your account, yet the positive activity is reported to the credit bureau.
The most recent activity will weigh the heaviest on your credit score. For example, 40% of a credit score is based on the last year, 30% on the last 13-24 months, 20% on the last 25-36 months and 10% on the last 37-plus months. The good news is that the negative credit will not stay on your report forever. After 7-10 years from the time your accounts are closed or satisfied, the information will be removed. Good credit, by contrast, will remain indefinitely on your profile. If you think you cannot make the adjustments yourself, then you may want to hire a credit counselor to go through your credit report, make the necessary adjustments, bring your files up to date and set you on a path to success.
Tags: credit report
Money Management: Have You Thought About Retirement Planning?
September 27, 2008
When it comes to money management for most people the aim is to be able to retire comfortably when the time is right. Its that time of your life when you can finally get to do what they enjoy most and while for some that may be nothing at all but just relaxing from a long life of just hectic routines and scheduled work for other that may be a time to actually fulfill their dreams by investing and finally doing what they enjoy most. There are many independent retirement planning companies that can and will assist you to choose the right retirement plan applicable to you and also to invest that money further in multiplying them along the years. Retirement investing plans are extremely helpful but there are a few points you should ensure before you risk your retirements funds.
There are a few things you need to look out for as you navigate your way around the money management front.
First and foremost try not to invest with the same company where you have your retirement plan drawn just in case they are faced with any kind of problem your entire funds will not be lost. Ensure that the company with whom you are investing your retirement money is stable and reliable; many fraud companies truck seniors of their money promising too good to be true returns only to disappear with their money.
If your choose retirement investing with a financial company you must do your homework first and not rush to throw your hard earned money away only to be left with nothing in the end. If your retirement investment is going towards another business then you should not invest more then you are prepared to loose because most businesses have a 50-50 chance and you should always be prepared for the worst. Retirement investment is not easy but when you are working for yourself you have nothing to complain so, take your time and only choose those options that carry the minimum possible a risk and then work hard and with a bit of luck you may turn millionaire in your golden age and truly do what you always loved.
The money management planning that you do today will make your retirement more enjoyable. Time flies and your money can too so, start planning today for retirement and retirement investments so finally when you retire or even earlier you can be your own boss. It is worth all the effort in the world when you are ensuring your own future that will include not depending on anyone but being able to finally enjoy life as you always wanted.
Tags: retirement planning
Overview For Comprehending Your Application For Medicare Benefits
September 27, 2008
Are you approaching retirement and wondering how to fill out your Medicare application? You may have your IRA and estate planning in place, but where do you go for Medicare information? Well, keep reading for instructions on how to obtain Medicare, whether you’re applying for Social Security benefits or not.
For Those Who Get Social Security Checks
If you are 65 or older and are already receiving Social Security benefits, you don’t need to do anything to apply for Medicare. By registering for Social Security, you are automatically enrolled in Medicare (Parts A and B) the very month you turn 65 and without filling out a Medicare application.
For example, if your 65th birthday falls on September 19, 2009, you will be eligible for Medicare beginning on September 01, 2009. Your Medicare card is then mailed to you about two to three months before your 65th birthday. If you don’t want Medicare Part B, then simply follow the enclosed instructions and return the card.
When Seeking Social Security and Medicare Together
If you’re coming up on 65 but have yet to apply for Social Security and Medicare, you should do so at least three to four months before your 65th birthday. Applying for Social Security will automatically register you for Medicare. Failure to apply on time could result in your benefits being delayed.
Eligibility for Medicare
Generally, most people are eligible for Medicare - as long as you or your spouse worked for a minimum of 10 years with a Medicare-covered employer (most employment scenarios are eligible), are over the age of 65 and currently a resident in the United States. Those with certain types of long-term illness or a disability may also qualify for Medicare.
How to Apply
To apply for Medicare and Social Security, visit a local Social Security Office or call the Social Security Administration at 1-800-772-1213. You can also fill out an application online at their website, which can be found at socialsecurity.gov.
Not everyone is eligible for the online application profess. First, you must prove your identity by answering several questions about yourself and past tax returns. Next, you must meet certain requirements such as - be over the age of 61 years and 9 months, planning to begin receiving Social Security benefits in the next 4 months, able to receive your benefits via direct deposit and be a permanent resident of the United States.
Applying for Medicare, but not Social Security
If you do not receive Social Security or do not plan to receive Social Security benefits, you can still obtain Medicare. To do so, you must fill out a separate Medicare application. You can do so by calling the Social Security Administration at 1-800-772-1213 or visiting a local Social Security office.
Tags: retirement planning
