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Monday, January 5, 2009

Which Properties are Eligible for an FHA Reverse Mortgage

By Reverandmortgage Vanrock

I'm getting a ton of calls recently in regards to properties that in no way meet the standards for an FHA insured reverse mortgage.

What one first must understand is that FHA insures the mortgage companies that lend money to senior home owners for reverse mortgages. With that in mind FHA makes all the rules.

A quick background of FHA, it was set up in the 30's to as a way to facilitate the financing of residential housing. In other words, it was set up to increase homeownership.

FHA is not in the business of helping the investor as much as it is the actual resident who owns and lives in the property.

With this in mind FHA will not be available for properties that don't fall under the category of a principle residence. Investment homes and the rarely used cabin in the mountains won't qualify.

This does not pertain to all investment properties. For instance, if the owner lives on the premises of a one to four unit property, with tenants, the property would still qualify for financing.

Then there are grey area properties, in which the owner lives their, but they are have more of a commercial use. A good example is a bed and breakfast. This won't qualify.

Financing the home is one thing. Some people call with home and hundreds of acres looking for financing on all of it. This won't happen. Only house on typical acreage will be financed.

If a home sits on one hundred acres and a home on 5 acres is customary, the lender will finance the value of the home on 5 acres and nothing more. The additional acreage must be surveyed off.

In some rural areas I get calls regarding manufactured homes. This is okay under certain conditions: Home is built after 1976, double or triple wide, and sits on an approved FHA foundation.

Additional home types include townhomes, condos, and Co-ops.

Other types of properties qualify for a reverse mortgage. The problem is the mortgages are what is known as proprietary financing and are not regulated as much by FHA. The rules and benefits are far different.

Reverse Mortgage Business Benefits From Wall Streat Meltdown

By Rimj Vanrock

I understand the stock market may be down a little. What? Did you say 40%? Well I know it is somewhere around that figure.

Being in real estate I have kept most of my investments safely their, so you know I'm okay. Just kidding, I'm down even more.

With the stock market down as far as it is I'm getting a ton of calls lately from seniors desirous of getting a reverse mortgage.

I'm a bit dumbfounded, because I simply can't understand how the reverse mortgage can be used to somehow change or plug up some financial hole.

Most of these folks are running scared and are in panic mode.

It doesn't make a whole lot of sense to me. I mean they already own the equity to the home. It's there's. What they perceive a reverse mortgage will do for them is convoluded.

Many have a sense of the loss of security and are looking to patch the proverbial net up with the reverse mortgage. I understand this, but is it a solid financial patch thought through rationally?

I don't think so. Some are telling me they want to invest the line of credit back in the market. They are citing the Warren Buffet line, "When people get greedy I get scared. When people get scared, I get greedy."

Our 2nd group may be making a mathematical mistake. After all, how good can the investment actually be in these times? Just to take the money out it will more than like cost them six percent per year.

The math doesn't work out very well, even if they get 10%. Less than a 4% return.

The facts are that this is not a great time for investments. I suppose if you have real ringer that can work, but for the most part these are very precarious times for investors. Many of the big guys are sitting it out.

Do yourselves a favor.. Go to the kitchen, eat a sandwich and have gigantic beer. This will relax you a bit, and you may soon decide on a better route.

3 Things You Should Know Before Hiring A Credit Repair Law Firm

By David Wada

There are hundreds of law firms out there that specialize in credit repair. I may get sued for writing this, but its my opinion that credit repair law firms like Lexington Law are scams.

Let's say you have a goal to have perfect credit, meaning no negative entries and the highest credit score possible. Keep in mind that often these law firms can do a great job, but there are couple major problems.

Problem #1: High Monthly Charges

In addition to set-up fees that average $99 at one of the most popular law firm, the monthly charges can be anywhere from $39 to $79. If their services only took one month, and believe me the 'true' process doesn't take more than a couple of days, then you would only be charged $39 to $79. The problem is law firms are in for business and their perspective is the longer they take to repair your credit the more money they make. This is why credit repair services usually cost you between $567 and $2,000 to get your credit fixed. This is why they are getting very, very rich.

But even that much would be worth it, wouldn't it? If they fix your credit for you? But how much sense does it make to pay $2000 or even $500, when you can get the same benefit from credit repair programs for less than a hundred bucks?! Well, you might say that your time is valuable and it's worth it to pay someone to do all the work.

Problem #2: You Do Most Of The Work Here's a dirty little secret with credit repair law firms. You still have to do most of the work yourself. More work, in fact, than when you use credible repair programs. Here's why:

First of all, you have to sign all kinds of paper work and Power of Attorney forms just to start the process. Some of these forms even require you to get your signature notarized. So the sign up process alone can take hours.

Then, you have to order your own credit reports from the credit bureaus.

Then, the credit bureaus are going to send the reports back to YOU, not to the law firm.

Of course, you then have to re-send the same letters to the law firms so that they have them for the records and making sure you make copies for your own file too.

Then, the law firm is going to scan your credit reports into a computer, and post it on their website.

Then, believe it or not, even with all the money you're paying the law firm, you still have to go to their website and choose for yourself which items you want to dispute and even how to challenge each negative credit item. You heard me right. When I hired a credit repair company, hoping they would take care of my credit, I had to choose which 'items to question' and know which items were errors. I wanted to protest, "How am I supposed to know? That's why I hired a professional!"

The law firm then takes the information you put on their website and create a standard dispute letters that they send to the credit bureaus.

Finally, the credit bureaus will still send all correspondence to your home address. So you will have to open every letter, read it, figure out if it's important, make copies of it for your records, and then put it in another envelope, address it, stamp it, and send it back to the law firm. You might have to do this five or six times every week.

So you can see how inefficient this process is. And because all of this takes so much time, the process drags on and on and the law firm just keeps making more and more money. In fact, credit repair law firms tell you that it can take a year, two years, or even three years before you reach your goal.

Problem #3: Forget about their crappy guarantee All they have to do is improve one item, such as a credit card inquiry, and they consider that they've done their job. Really! There's no money back even if 90% of your credit report is still negative after three years and $2000.

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Government Guaranteed Student Loans

By Trinity Foster

If you would like to go to college and find it too expensive, there are a lot of different options available. Government guaranteed student loans can help you to get started the right way and are fantastic loans that almost anyone in need can qualify for.

As you review your options for student loans, you will discover there is one referred to as a government guaranteed student loan. Just what does the guarantee mean? It means that the government backs the loan for the lending institution who is offering the loan.

For almost fifty years, these types of loans have been offered. The government assumes all of the responsibility of making sure the loan is repaid on time and in full. Any default on the loan is covered by the government so the lending institution doesnt have to be as concerned about losing money on the loan. Lenders wont use your credit score as a qualifying factor in receiving the loan. This is good news for some of you who may have bad credit.

Stafford loans are especially advantageous. Your credit history is generally not a qualifying factor either since the government is assuming the responsibility for any default on the loan. The lending institution doesnt have to be as concerned with losing money on the loan.

The government also takes the responsibility for the interest accrued while you are in school and for the first six months after you are done with school. Obviously, this is a really great benefit to the borrower. Rather than accruing interest on the money youve borrowed throughout the entire time you are in school, you only owe the principal. This allows you proper time to concentrate on school and complete a degree.

The six months after school gives the student time to find a good job so there is a greater likelihood of being able to repay the loan in full. Historically, a subsidized Stafford loan was always called a guaranteed government loan.

However now, any loan, whether it is a subsidized Stafford or another loan, which is guaranteed against default by the government, is considered to be a government guaranteed loan. Subsidized Stafford loans are issued based on need.

If you financially qualify for one, it will most likely be the least expensive way to borrow money for school. If you dont qualify for the Stafford loan though, you can still receive a government guaranteed loan. They really are the most secure student loans you can receive.

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Get a Loan With Bad Credit

By Darren Cason

Many people assume that people with bad credit simply cannot get loans in their name. Because they have a history of not paying off their debts, they are a risk to the loan company.

Despite this, it is possible for people with bad credit to get a loan. Although they probably can't get it on their own, there are many options available for those with bad credit. Now, it is not easy to get a loan if you have bad credit. And the terms of the loan will not be attractive. But it is certainly possible.

The easiest option to secure a loan if you have bad credit is to find a co-signer. This person should have a good credit history. By getting a co-signer for your loan, the loan company will be more willing to loan you money because someone who has a history of paying back their debts will be responsible for it. If you don't make the payments, they will be responsible for it, so signing someone's loan as a co-signer can be risky. Keep that in mind while you're trying to find someone who will agree to do it.

Usually, the co-signer will be a parent, very close friend, or a loved one. Keep in mind that if the deal does not work out and they end up being on the hook for your debts, the relationship will probably go sour. If you are considering asking someone to co-sign your loan, be sure that you can make your payments, because you are putting more at stake than your own finances.

If you can't find someone to co-sign a loan, you may want to try securing a loan yourself. Some lending companies will consider loans to people with bad credit. However, the interest rate will be higher than that offered to applicants with good credit history. For example, if the normal interest rate for the loan is 4 percent, you may have to pay up to 12 percent interest for the same loan. This will directly translate into higher payments for the loan. Having bad credit can be very costly if you need to get a loan.

If you have bad credit, another option is a secured loan. Basically, the property you are buying with the loan money is used as collateral for the loan. If you are unable to make your payments, that property will be repossessed. Typically, this type of loan is offered for the purchase of a vehicle. If you fall behind on the loan payments, you will lose your car.

If you are able to find a loan, the good news is that it is one step towards rebuilding a good credit history, provided that you pay on time every month. This can put you on the road towards a favorable credit history, so that you won't have as much trouble finding a low apr credit card and/or loan next time.

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Bad Credit Student Loans That Actually Exist

By Trinity Payne

If you're anything like most people, the cost of college is a little outside your price range. Paying $15,000+ each year as a 19-24 year old is definitely outside the reach for most people that don't have help from their parents. If you're struggling to meet financial obligations while attending college, having bad credit can magnify your difficulties. However, student loans for people that have bad credit are available and finding the right ones can help you to pay for school.

Student loans can be classified in two different categories; ones issued according to financial need, and ones that arent based on financial need. Many of the loan options are supported by the Federal Government.

The subsidized Federal Stafford Loan and Perkins Loan are two loans that use financial need as a qualifier. In the case of the subsidized Stafford Loan, the government pays the interest as long as you are in school and for the first six months after you leave school. The Perkins Loan is also issued based on financial need, although there are less of them given out compared with the subsidized Stafford Loan. However, if you can qualify for one, it is a really great thing as it will save you money in the long run.

If your financial need is big enough, you may even qualify for a Federal Pell Grant. Federal Pell Grants are the best option because it is considered a gift. You are not required to repay the money you receive. If you qualify for a Pell Grant, but it is not enough to pay for all your tuition and expenses, you can still look into receiving a loan to help meet your financial needs.

For people who cant qualify for one of the need based loans, there are still other bad credit student loans that are not based on financial need. The unsubsidized Stafford loan doesnt use financial income as a qualifier for the loan. With this type of loan, it will accrue interest once you receive the loan. The government doesnt pay any of the interest on the loan.

People that take out unsubsidized Stafford loans will have to start repaying them immediately. There is no grace period for these loans since they are offered to people that don't have financial need.

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?Tips for Planning for Your Retirement

By Michael Geoffrey

Retirement is a huge milestone in a person's life. Retirement planning is crucial because it will have such an impact on your future. It will not only impact you financially, but in every other way. Because it is so important many questions arise as to how to be best prepared for this life altering time.

Informed and advance retirement planning is crucial if you want to be ready, and so that you can actually enjoy your years of retirement and live comfortably. One of the first and most important things that you need to know when it comes to retirement planning is that you want to start planning as early as possible. Even if you start in your early twenties, which may sound ridiculous to some people, you will be doing yourself a huge favor in the end.

Plan your retirement with breathing room. Don't lock yourself into a fixed budget that will only sustain you for 15 or 20 years. Some people enjoy 25 or 30 years of retirement - some even more. It is best to be prepared and plan for a long life of retirement.

The Best Idea

The best idea is to create a financial plan for yourself, one that is created with a certified financial planner who will be able to ensure that you take all necessary factors and issues into consideration and that the results you are coming up with are accurate.

These projections will give you a clear picture of where you will be financially when you are ready to retire. That will be a good guide for you in deciding how much you want to save each month and year towards your retirement.

By contributing funds as often as you can, even if it is only a few dollars here and there, you will really be surprised at how incredibly quickly it can add up. Remember that even if you already have accounts set up specifically for retirement, you can also put away a bit of your own money on the side every now and again.

There is no way you can go wrong saving for you future. The more money you save the more comfortable your retirement years will be. You will not have to sacrifice your lifestyle in the least when you make the transition from worker to retiree.

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Deflationary Times - Cool Personal Checks

By Hank Masefield

People are often confused about the economic conditions they find themselves. Everything has a cool check about label, and the extremes are that either we are living in inflationary times or a period of deflation.

If the pervasive economic condition is deflationary, goods and services become less expensive. The accounting of the dollar increases. Many cannot grasp that relationship.

Opposite of inflation is deflation and with deflation, most assets decline in value. You see the value of your home decline in value as well as gasoline. Corporate equities, mutual fund shares, insurances and pension reserves and equity in non corporate business decline.

The value of the United States Dollar goes up in a deflationary environment. Quite the opposite of an inflationary environment.

When the price of the dollar increases, it also increases against foreign currencies. The dollar buys more.

Check the state of value of the dollar in your personal purchases. Is the dollar's value is going up? It's buying more gas than it used to, buys more real estate than it used to, and gets better deals shopping for cars than before. Everything costs less.

If most things seem to cost less that means you are living in deflationary times. If the price of goods and services are going up, you live in inflationary times.

The coolest, cool personal checks for the safest place to have you money in deflationary times in Treasury bills. The least ugly investment worldwide is U.S. currency.

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Is there Good Debt?

By Michael Geoffrey

Yes, there is such a thing as good debt. There are only a few types of debt that fall into this category, but it's important to make the distinction. Some examples of good debt are:

* Debt incurred to buy a home - Owning your own home has numerous benefits. But the reason that this is considered a good debt is because a home is an investment. It gains value instead of losing it, so you're putting yourself at an advantage by going into debt as long as you keep your payments current.

Borrowing money for college is also an investment ? in your education. By educating yourself you give yourself more earning power. This is an instance when taking on debt is a wise choice.

If you obtain a start up loan for a business venture this can be good debt. Again you are borrowing in order to give yourself earning potential. Of course you are always taking a chance when going into business for yourself, but often it is worth the risk and the necessary debt incurred.

More often we talk about debt that is not so good. Some examples of this are:

Financing a car ? unlike a home your car depreciates rapidly. That means you are not investing your money with the potential for a greater return in the long run. The money you spend is gone.

Almost everyone has and uses credit cards and they are convenient. However credit card debt is considered bad debt. Typically the purchases made on a credit card are things that will not earn you money over time. Credit card purchases are rarely an investment.

Another bad debt is borrowing money for personal use such as to purchase higher priced items or maybe to fund a much needed vacation. These are at times necessary but will not earn you money in the long run. Since they are not an investment this is not good debt.

Just because a debt is a so-called good debt, that doesn't mean it can't get us into trouble. It's important to keep our good debt at a manageable level. Lenders take our income into consideration when lending us money for this reason. But it's also crucial that we look at our individual situations and not borrow more than we can comfortably pay back.

Also, bad debt is not always something to be avoided. To have a reasonable amount of what is considered bad debt is fine. We just want to keep it at a moderate level and not allow it to get out of control. Just like good debt we want to be sure we can handle the payments and only take on bad debt when necessary.

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Home Mortgage Loans Tips

By John Bear

If you are looking to refinance your current mortgage, there are several options available for you. Homeowners refinance their mortgage for many reasons and these include eliminating private mortgage insurance, receiving cash out at closing, obtaining a fixed rate, and so forth.

Taking a new mortgage is somehow involved in home loan refinancing so you have to have the important documents to present the mortgage company. But there are also ways for you to obtain a loan with minimal documents if you want to protect your privacy.

If you have good credit, you may be able to get a no doc refinance loan. As each lender is different, some lenders are willing to grant a refinance with no documentations, whereas other lenders are not as eager to take a chance. The process of attaining a no doc loan is pretty simple. With these loan applications, the homeowner must provide their social security number and loan amount. The lender will then base loan approval solely on credit scores. In order to obtain a no doc loan, you must have a very high credit score.

Now, if you think low document home mortgage loans are quite the same as no document loans, you're wrong. Low document loans require the applicant to supply recent paycheck stubs or income tax returns for the past two years. The income and employment history of the applicant have to be stated as well. These types of loan programs suit the self-employed or contract workers well and those individuals who receive cash payments.

Obtaining a no document refinance loan is ideal for individuals who would want to maintain their privacy. Some people are hesitant to offer lenders detail information about their income, employment, and finances.

While lenders are not always thrilled to approve loans with little or no documentation, they reason that an applicant with a very good credit history is less likely to tarnish their perfect record. Thus, they are ideal candidates for a no doc loan.

Since low doc and no doc home mortgage loans undergo a faster process, the applicant has to be prepared to pay a higher interest rate on his loan. Of course, a higher rate would be fine as long as it offers the individual some privacy and speed.

But do take note that if your reason for refinancing your home mortgage loans is to get a lower rate, then a no doc would not be the best deal. To be safe, get a quote from a lender and have the no doc refinance rate compared with your current interest rate before refinancing.

Tips for Planning for Your Retirement

By Michael Geoffrey

Retirement is a huge milestone in a person's life. Retirement planning is crucial because it will have such an impact on your future. It will not only impact you financially, but in every other way. Because it is so important many questions arise as to how to be best prepared for this life altering time.

It is never too early to start planning for your retirement. Even if you are just finishing your education and beginning your career this the perfect time to begin preparing for your retirement. The earlier you are able to start the more secure your retirement will be. You will have pleasurable and relaxed retirement years if you start planning right now.

You should also make sure to plan for the possibility of living longer than you might now expect, just to be sure and to make sure that you will have enough money in the event that this does actually happen. Include the possibility of being on a fixed income for as long as 30 years or more.

The Best Idea

Seeking help from a financial advisor is a smart choice in preparing for your retirement. A good financial advisor can help you examine all your options and set up the best retirement plan possible for your circumstances. They can help you project what the results will be from your retirement plan to give you added peace of mind.

These projections will give you a clear picture of where you will be financially when you are ready to retire. That will be a good guide for you in deciding how much you want to save each month and year towards your retirement.

By contributing funds as often as you can, even if it is only a few dollars here and there, you will really be surprised at how incredibly quickly it can add up. Remember that even if you already have accounts set up specifically for retirement, you can also put away a bit of your own money on the side every now and again.

You can really never put away too much money or plan too much when it comes to retirement, because every step you take will pay off in the end and allow you to maintain the lifestyle that you are living now, if not better.

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Starting Your Own Credit Repair Service

By William Blake

When it comes to wanting to learn how to start a credit repair service you have to be prepared that there is going to be a lot of information to learn. Not only are there the basics of credit repair there are going to be laws and guidelines that are different from state to state.

Once you realize how much knowledge you need to set up a credit repair service that will actually help people you might feel a bit overwhelmed. It can be a daunting task, but not an impossible one.

If have an some experience in this line of work you are going to be a little ahead of the curve. For people who have worked with credit reporting agencies or other credit repair companies they will be able to learn much easier what it will take to start a credit repair service of their own.

If you do not have any experience in the area it might be a good idea to try to get a job that will give you the experience you need. That way you will be getting the education you need to start your own company while getting paid.

Where to Learn More

When it comes to wanting to learn more and more about how to start a credit repair service of your own, there are some more things to do. There are a lot of books out there on this type of service and business so you are going to have to do some research during your down time. Reading through these books may seem like a lot but there really are a lot of laws and rules that you have to learn so that you do not waste your time or the time of the customer.

A good thing to do, if you have not already, is to take a class on business so that you have a little bit of basic business knowledge to help you out. While you are running a very specific business, basic business knowledge applies everywhere and it is something that you need to have.

In order to make sure that your business becomes a success you must make sure that you do everything possible to have everything in line and ready to go. In the end, all of your studying and hard work will pay off and you will see your business grow.

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