Find out more on Debt Consolidation Credit Counseling In Phoenix Now!
Friday, January 2, 2009
Equity in a home is, of course, one of the benefits of owning in the first place. After all, who wants to go through the loan process, make payments and pay for all the repairs involved in owning without some monetary payoff.
The reverse mortgage was originally invented to help seniors with financial issues. Without any other type of savings the homeowner can access the equity to solve money issues.
Each financial situation requiring remedy is unique. As such the reverse mortgage does not always fit well as a solution.
As a possible conflict of interest, it is marketed by people just like me, who make money only when they get a senior borrower a reverse mortgage; they don't make money by talking the senior out of it.
I am a lender, and I have a high opinion of most in my field. Nearly all loan officers will give a just evaluation, and handle opinions in a measured honest manner.
That being said a certain minority resides in this business (as with any business), made up of unethical individuals willing to ignore anything associated with the golden rule to get what they want.
In the copier business, where I worked in the past, my company had a saying for sales people to remember: Get it done by any means possible. They were serious about it too. Do anything possible to get that money.
A few people in the business of reverse mortgages feel selfishly too, but have faith. You may not see the bad guys coming, but you will have a backup consultant to spot them for you.
Prior to advancing on in a reverse mortgage transaction the law requires potential borrowers to counsel with a intermediary, HUD approved advisor.
This is a major stopgap for those being talked into a reverse mortgage who could otherwise solve the financial obstacle in some other cheaper manner. If the counselor is worth his salt he should be able to spot a bad deal and give the would-be borrower better advice.
I constantly hear about seniors getting cheated or ripped-off. HUD counseling, in the reverse mortgage business, is very useful in stopping this from happening.
The reverse mortgage was originally invented to help seniors with financial issues. Without any other type of savings the homeowner can access the equity to solve money issues.
Each financial situation requiring remedy is unique. As such the reverse mortgage does not always fit well as a solution.
As a possible conflict of interest, it is marketed by people just like me, who make money only when they get a senior borrower a reverse mortgage; they don't make money by talking the senior out of it.
I am a lender, and I have a high opinion of most in my field. Nearly all loan officers will give a just evaluation, and handle opinions in a measured honest manner.
That being said a certain minority resides in this business (as with any business), made up of unethical individuals willing to ignore anything associated with the golden rule to get what they want.
In the copier business, where I worked in the past, my company had a saying for sales people to remember: Get it done by any means possible. They were serious about it too. Do anything possible to get that money.
A few people in the business of reverse mortgages feel selfishly too, but have faith. You may not see the bad guys coming, but you will have a backup consultant to spot them for you.
Prior to advancing on in a reverse mortgage transaction the law requires potential borrowers to counsel with a intermediary, HUD approved advisor.
This is a major stopgap for those being talked into a reverse mortgage who could otherwise solve the financial obstacle in some other cheaper manner. If the counselor is worth his salt he should be able to spot a bad deal and give the would-be borrower better advice.
I constantly hear about seniors getting cheated or ripped-off. HUD counseling, in the reverse mortgage business, is very useful in stopping this from happening.
About the Author:
Get comprehensive guide to the California reverse mortgage make it over to this website. For all the skinny, go the California reverse mortgage fact sheet.
posted by Credit Counseling at
8:51 PM
0 Comments
There are a lot of people out there who could potentially become very successful real estate investors, but most people don't even try. Why? Because they themselves don't have the money to invest in property and they think it would be too difficult to try to secure financing through traditional venues, such as a bank or other type of "hard money" lender. However, what they probably don't know is that there is a better and easier way for real estate investors to finance properties and thus have success. That is, through private money lenders.
What Are Private Money Lenders?
What is a private money lender? It's a loan that is financed through an individual instead of an institution. That individual has extra money he or she wants to lend and make a profit with. This is an incredibly flexible financing strategy, because you can borrow from someone who is a regular individual just like yourself, instead of having to jump through the hoops set forth by banks and other lending institutions, which have to follow strict rules and regulations when they decide whether or not to lend someone money. In other words, private money lenders don not have to follow these rules.
Why Private Money Loans Are a Better Way to Finance Your Properties
Because private money lenders don't have to follow the same strict rules and regulations imposed by the government and board of directors in the same way banks and other traditional lending institutions do, they can choose whom they invest with. That means they may be very willing to lend you money if they see you as someone they want to invest with, regardless of a substandard credit rating or other financial missteps.
The Benefits of a Private Money Loan
As a real estate investor, you can approach a private money lender and make your case with them individually. You can explain to the private money lender why you are someone they should invest in, and after you've done so, they can make their own decisions. However, there's more to it than that and the benefits go even further. If the private money lender is interested in what you have to offer, you both can sit down and work out financing and repayment arrangements that are of benefit to both of you. You can both state what you want out of the arrangement and agree on a payment schedule and interest rate that satisfies both of you.
A private money loan is a short-term loan and therefore, the private money lender may be willing to wait until after you have refurbished and sold the house to receive any payments. This lets you focus on fixing and selling the property instead of having to worry about paying for a property that hasn't actually made you any money yet.
The Downside of Traditional Hard Money Loans
While private money loans benefit both borrower and lender, bank loans usually give the benefit to the bank. They get to set the standards on their side, and if you are lucky enough to get a loan through them, they also get to set the interest rate and determine what other fees might be. In general, you're not going to be allowed to make payment arrangements or other special arrangements, but will have to stick to the schedule the bank sets. This means that even if your credit history is perfect, and even if you can receive financing from a traditional lender, using a private money lender may still offer you more advantages.
Summarizing the Benefits of Working with a Private Money Lender
The private money lender can lend to whomever he or she wishes to and doesn't have to follow specific rules and restrictions in the same way traditional institutions like banks do. This means that even real estate investors who have less than perfect credit histories may be able to obtain financing needed for their properties.
Private lending can mean much more open communication between the borrower and private money lender. The borrower and lender can negotiate an interest rate or flat fee that will almost always save the borrower money over that of a traditional loan.
Both the borrower and private money lender can negotiate payment arrangements that will benefit both of them. The lender may even be willing to forgo payments until the borrower has sold the property.
No financial application is required. Borrower can appeal directly to the private money lender and convince him to take a chance on the property in question.
Private Lender will see borrower as a real person with a real goal, instead of just a paper application that must pass ridged guidelines.
All of these benefits make private money loans the most flexible funding option for real estate investors. A private money loan allows you a variety of options and opens the door for many real estate investors who would otherwise be turned down by a traditional lender.
What Are Private Money Lenders?
What is a private money lender? It's a loan that is financed through an individual instead of an institution. That individual has extra money he or she wants to lend and make a profit with. This is an incredibly flexible financing strategy, because you can borrow from someone who is a regular individual just like yourself, instead of having to jump through the hoops set forth by banks and other lending institutions, which have to follow strict rules and regulations when they decide whether or not to lend someone money. In other words, private money lenders don not have to follow these rules.
Why Private Money Loans Are a Better Way to Finance Your Properties
Because private money lenders don't have to follow the same strict rules and regulations imposed by the government and board of directors in the same way banks and other traditional lending institutions do, they can choose whom they invest with. That means they may be very willing to lend you money if they see you as someone they want to invest with, regardless of a substandard credit rating or other financial missteps.
The Benefits of a Private Money Loan
As a real estate investor, you can approach a private money lender and make your case with them individually. You can explain to the private money lender why you are someone they should invest in, and after you've done so, they can make their own decisions. However, there's more to it than that and the benefits go even further. If the private money lender is interested in what you have to offer, you both can sit down and work out financing and repayment arrangements that are of benefit to both of you. You can both state what you want out of the arrangement and agree on a payment schedule and interest rate that satisfies both of you.
A private money loan is a short-term loan and therefore, the private money lender may be willing to wait until after you have refurbished and sold the house to receive any payments. This lets you focus on fixing and selling the property instead of having to worry about paying for a property that hasn't actually made you any money yet.
The Downside of Traditional Hard Money Loans
While private money loans benefit both borrower and lender, bank loans usually give the benefit to the bank. They get to set the standards on their side, and if you are lucky enough to get a loan through them, they also get to set the interest rate and determine what other fees might be. In general, you're not going to be allowed to make payment arrangements or other special arrangements, but will have to stick to the schedule the bank sets. This means that even if your credit history is perfect, and even if you can receive financing from a traditional lender, using a private money lender may still offer you more advantages.
Summarizing the Benefits of Working with a Private Money Lender
The private money lender can lend to whomever he or she wishes to and doesn't have to follow specific rules and restrictions in the same way traditional institutions like banks do. This means that even real estate investors who have less than perfect credit histories may be able to obtain financing needed for their properties.
Private lending can mean much more open communication between the borrower and private money lender. The borrower and lender can negotiate an interest rate or flat fee that will almost always save the borrower money over that of a traditional loan.
Both the borrower and private money lender can negotiate payment arrangements that will benefit both of them. The lender may even be willing to forgo payments until the borrower has sold the property.
No financial application is required. Borrower can appeal directly to the private money lender and convince him to take a chance on the property in question.
Private Lender will see borrower as a real person with a real goal, instead of just a paper application that must pass ridged guidelines.
All of these benefits make private money loans the most flexible funding option for real estate investors. A private money loan allows you a variety of options and opens the door for many real estate investors who would otherwise be turned down by a traditional lender.
About the Author:
Stop worrying about qualifying for loans and take the first step to becoming a successful real estate investor. Learn more about getting funding from Private Money Lenders.
posted by Credit Counseling at
4:55 PM
0 Comments
If you know that you are what is called a "credit risk," you probably are feeling that as a derogatory connotation. That can be the motivating factor for you to explore the return to good credit.
It is actually possible for you to travel the "repair road" with yourself as the driver. However, when setting out on this trip, you will need a triptik to break down the milestones on the way.
The "credit risk" label is based on your "credit report" and "credit score." Therefore, you need to know what those are all about. The credit score is a very important 3 digit number that a "credit risk" will need to raise. A score of 700 or more is "good." If the score is under 700, this might be problematic. This information is essential to the repair process.
To find out this information, you will begin by obtaining your credit reports. You will need to be brave and confront these reports. There are 3 credit bureaus that supply reports: TransUnion, Equifax, and Experian. On a yearly basis, you are able to receive a free report (fee for the credit score) from each of these agencies. For the details on this procedure, see www.annualcreditreport.com.
It is possible that each of these reports may actually be different. Therefore, it is very important to obtain all three report for comparison.
Review each report for errors after you finish comparing them. Then, you will need to DISPUTE THE ERRORS with each of the three bureaus. This will require patience and persistence.
Document all errors, and the reasons why you know they are errors and send this in writing (with a copy of the credit report) to any or all, if needed, credit bureaus. Definitely retain COPIES OF EVERYTHING for your records.
This is the first information you need to have. Be prepared, there may be some surprises on those reports. Be persistent.
It is actually possible for you to travel the "repair road" with yourself as the driver. However, when setting out on this trip, you will need a triptik to break down the milestones on the way.
The "credit risk" label is based on your "credit report" and "credit score." Therefore, you need to know what those are all about. The credit score is a very important 3 digit number that a "credit risk" will need to raise. A score of 700 or more is "good." If the score is under 700, this might be problematic. This information is essential to the repair process.
To find out this information, you will begin by obtaining your credit reports. You will need to be brave and confront these reports. There are 3 credit bureaus that supply reports: TransUnion, Equifax, and Experian. On a yearly basis, you are able to receive a free report (fee for the credit score) from each of these agencies. For the details on this procedure, see www.annualcreditreport.com.
It is possible that each of these reports may actually be different. Therefore, it is very important to obtain all three report for comparison.
Review each report for errors after you finish comparing them. Then, you will need to DISPUTE THE ERRORS with each of the three bureaus. This will require patience and persistence.
Document all errors, and the reasons why you know they are errors and send this in writing (with a copy of the credit report) to any or all, if needed, credit bureaus. Definitely retain COPIES OF EVERYTHING for your records.
This is the first information you need to have. Be prepared, there may be some surprises on those reports. Be persistent.
About the Author:
With unprecedented challenges in the credit markets it's more important than ever to have excellent credit. For more information visitRob Kosbergs' Detailed FREE Guide on Maintaining and Repairing your Credit Score by going to Bad Credit Repair for your FREE information.
posted by Credit Counseling at
4:32 PM
0 Comments
