BOA Mortgage Modification - 3 Things to Avoid For Success

Getting a Bank of America / BOA mortgage modification loan is not as difficult as the majority of people think. In fact, if you go about the process correctly, you are almost assured of approval. Many people get it wrong however and I am going to reveal the 3 pitfalls to avoid in this short article. Avoid these and you'll be in the clear.

Pitfall 1 - Poorly Drafted Hardship Letter
One of the main causes of failure when people go for a boa mortgage modification loan is failing to sufficiently craft a winning hardship letter. The hardship letter is important because it outlines your present circumstances as well as any steps you've taken to remedy your situation. It also gives the lender an opportunity to adequately asses your 'need' for the loan.

Pitfall 2 - Failure to Understand Debt/Income Ratio Requirements
Before you are considered for a modification loan the lender will assess your needs against what is called the debt/income ratio. This guideline stipulates that your monthly mortgage payments must exceed 31% of your gross monthly income. If you fall below this threshold, you are unlikely to be considered for a loan. Many people fail to work this out correctly and get rejected.

Pitfall 3 - Poor Finance Management
This is a big one and many people fail to get it right terribly. You see, if you are not able to meet the new modified loan commitment, you are unlikely to get approved. It should be obvious but many people work on everything else except this. Before you go for a boa mortgage modification loan, take the time to get rid of any monthly payments that are not necessary. Cut back on your expenses as best as you can. The lender will go through your financial situation with a fine tooth comb and any discrepancy or hint that you may not be able to pay will result in rejection.

So in summary, the 3 pitfalls above are the three main reasons for denial of a modification loan, but now that you have a firm grasp of them, you should have no problems. In fact, my parting recommendation is that you avoid any risk of denial all together and seek professional help. These professionals speak your lender's language and have the necessary experience to get your loan modification approved. There are plenty loan modification companies online that will handle your Bank of America loan modification application for you.

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Was Your Mortgage Declined in Underwriting - Common Reasons For Loan Denial

Nothing is more frustrating then receiving word you have a declined mortgage refinance loan. Not being able to secure financing can make all the plans that you had seem to go right down the drain. But knowing the common reasons for loan denial can go a long way in helping to stop the potential problem before it starts.

Why Home Loans Are Declined

Home loans are declined because the underwriters at the lenders have decided your loan either did not fit into their lending guidelines or you were to risky a borrower. The underwriters act as a wall of protection for the lender so if something does not make sense to them they may either ask for clarification or deny the loan.

Common Reason For Loan Denial

One of the most common reasons mortgages get turned down is from borrowers giving false or inaccurate information. Many times this is done by accident. Even when done by mistake it is hard for underwriters to look past false information as it appears to look like potential fraud.

Wrong income levels are often stated on loan applications. The best way to avoid this is to go by last years income on your W-2. If you have had a raise and are hourly figure 40 hours a week as your base salary. Wrong income is the quickest way to get your loan terminated in underwriting.

Property values are another common reason mortgages get turned down in underwriting. People may tell their loan officer their home is worth a certain amount only to find out it is worth much less then they thought This is especially true today with the recent drop in real estate values in many parts of the country.

A credit score drop is also another common reason for losing your loan. One of the biggest mistakes people can make is to have multiple mortgage companies pulling their credit. While a few credit pulls will not hurt you having more then 4-5 credit pulls can start to damage your score. To avoid this stick with three reputable mortgage companies and get quotes from each one.

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The Importance Of Excel In The Workplace

Excel is perhaps the most important computer software program used in the workplace today. That's why so many workers and prospective employees are required to learn Excel in order to enter or remain in the workplace.

From the viewpoint of the employer, particularly those in the field of information systems, the use of Excel as an end-user computing tool is essential. Not only are many business professionals using Excel to perform everyday functional tasks in the workplace, an increasing number of employers rely on Excel for decision support.

In general, Excel dominates the spreadsheet product industry with a market share estimated at 90 percent. Excel 2007 has the capacity for spreadsheets of up to a million rows by 16,000 columns, enabling the user to import and work with massive amounts of data and achieve faster calculation performance than ever before.

Outside the workplace, Excel is in broad use for everyday problem solving.

Let's say you have a home office. You can use Excel to calculate sales tax on a purchase, calculate the cost of a trip by car, create a temperature converter, calculate the price of pizza per square inch and do analysis of inputted data. You can track your debt, income and assets, determine your debt to income ratio, calculate your net worth, and use this information to prepare for the process of applying for a mortgage on a new house. The personal uses for Excel are almost as endless as the business uses for this software - and an Excel tutorial delves into the practical uses of the program for personal and business use.

The use of spreadsheets on computers is not new. Spreadsheets, in electronic form, have been in existence since before the introduction of the personal computer. Forerunners to Excel and Lotus 1-2-3 were packages such as VisiCalc, developed and modeled on the accountant's financial ledger. Since 1987, spreadsheet programs have been impacting the business world. Along the way, computerized spreadsheets have become a pervasive and increasingly effective tool for comparative data analysis throughout the world.

Today, end users employ Excel to create and modify spreadsheets as well as to author web pages with links and complex formatting specifications. They create macros and scripts. While some of these programs are small, one-shot calculations, many are much more critical and affect significant financial decisions and business transactions.

Widely used by businesses, service agencies, volunteer groups, private sector organizations, scientists, students, educators, trainers, researchers, journalists, accountants and others, Microsoft Excel has become a staple of end users and business professionals.

The beauty of Excel is that it can be used as a receiver of workplace or business data, or as a calculator, a decision support tool, a data converter or even a display spreadsheet for information interpretation. Excel can create a chart or graph, operate in conjunction with Mail Merge functions, import data from the Internet, create a concept map and sequentially rank information by importance.

Excel offers new data analysis and visualization tools that assist in analyzing information, spotting trends and accessing information more easily than in the past. Using conditional formatting with rich data display schemes, you can evaluate and illustrate important trends and highlight exceptions with colored gradients, data bars and icons.

Indeed, Excel can be customized to perform such a wide variety of functions that many businesses can't operate without it. Excel training has become mandatory in many workplaces; in fact, computer software training is a must for any workplace trying to keep up with the times.

Let's say you're an employer with 97 workers, 17 of whom called in sick today, and you want to know the percentage represented by absentees. Excel can do that. You can learn Excel and use it to determine the ratio of male to female employees, the percentage of minorities on the payroll, and the ranking of each worker by compensation package amount, including the percentages of that package according to pay and benefits. You can use Excel to keep track of production by department, information that may assist you in future development plans. You can create additional spreadsheets to track data on vendors and customers while maintaining an ongoing inventory of product stock.

Let's say you want to know your business production versus cost. You don't have to be a math wiz - you just have to learn Excel. Excel allows you to input all of the data, analyze it, sort it according to your customized format, and display the results with color, shading, backgrounds, icons and other gimmicks that offer time-saving assistance in later locating precisely the information desired. If this spreadsheet is for presentation purposes, Excel helps you put it together in such a visually appealing way that the data may seem to pop and sparkle.

The single most important thing an employer may do is learn Excel - it is one of the most essential tools of the workplace.

Excel and Microsoft are trademarks of Microsoft Corporation, registered in the U.S. and other countries. Lotus is a registered trademark of International Business Machines Corporation in the U.S. and/or other countries.

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Bad Credit Mobile Home Loans & Mortgages - Can You Still Get Financing?

If you've got bad credit, you might think it is impossible to own your own home. On the contrary, there are programs for individuals with poor credit. This is especially true when it comes to mobile home loans and mortgages. You will find that if your credit score is lower than the mid 600's, it will be difficult for you to obtain any kind of home loan, even one for a mobile home. However, it is not impossible. You might have to hunt for lenders willing to help you and put up with a high interest rate. For people who are determined to own their own home, high interest rates can be worth the price.

When you obtain a bad credit loan for a mobile home, you need to make sure you make all your payments on time. This will improve your credit and reduce your risk of losing your home to repossession. Then when your credit gets better, it will be easier for you to refinance to a lower interest rate. Bad credit is considered anything under 600 and may feature judgments, bankruptcies and unpaid debts. If you are concerned that your credit will stand in the way of owning a home, it might be a good idea to review your credit report and fix any outstanding problems.

The three main credit bureaus are Experian, Transunion and Equifax. For a reasonable fee, you can order copies of your credit reports and credit score. This way, you know exactly what your score is and what items on your credit report may pose a problem when it comes to obtaining a mobile home loan.

It is also important to check your credit report for errors and write to the credit bureaus if you find errors. The cleaner your credit, the better type of loan will be able to get. With a little effort, you can fix your credit so that you can obtain a mortgage loan with a decent interest rate. It may not take as long as you might think to improve your credit to the point where you can obtain the loan you want at a price you can afford.

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How To Figure Out Mortgage Payments Without a Mortgage Calculator

In today's world, taking out a mortgage is necessary for anyone who wants to invest in real estate or simply wants to put a roof over his head. Usually, to find out what a mortgage payment will be on a particular property, a potential buyer needs to contact a realtor or bank to get a quote.

By contacting either one, the buyer risks harassment from a realtor who won't let go of a qualified buyer, or a lender who needs to lend mortgage money to stay in business. Any buyer in his right mind will only go to one of these salespeople when he is ready to go full speed ahead toward a closing.

So, what does a person who is in the early thinking stages of buying a home do? How do you know what the payment will be on a house a seller is asking $250,000 for when the bank is advertising 30-year mortgages at 7%?

By the end of this article you will be making such a calculation in your head. You will be sprouting out the answer to complicated home buying scenarios just as fast as you can find the terms on the mortgage and the price on the house.

$66.53 a Month

First, remember this: $10,000 borrowed for 30 years at 7% will require a monthly payment of $66.53. So, it stands to reason $100,000 for 30 years at 7% requires a monthly payment of $665.30. Also take note you could figure out on a piece of paper with a pencil, $50,000 for 30 years at 7% is $332.65.

Knowing these figures, you automatically know a $250,000 mortgage at 7% for 30 years will require a payment of $665.30 (for $100,000) and another $665.30 (for the next $100,000) and $332.65 (for $50,000). This means the payment will be $1,663.25, or really, really close. A mortgage calculator gives the answer as $1,663.26, but for a wild guess, I'll take it.

A 6% or an 8% Mortgage

Of course, here you ask, "What if I find a mortgage with a lower interest rate?" Well in that case, remember this, $10,000 borrowed for 30 years at 6% costs the borrower $59.96 a month. This means a $1,000,000 mortgage for 30 years at 6% will be 100 times $59.96 or, a monthly payment of $5,996.00. Now, certainly that was easy. All we had to do was add 2 zeros!

Okay, what about if the interest rate is 8%? Here, a 30-year mortgage for $10,000 is $73.38 each month. So a $300,000 mortgage will come at a cost of 30 times that or, $2,201.40 a month.

How About a 7 1/4% Mortgage?

In reality, most times interest rates will not be exactly 6 or 7, or 8%. Even when this is the case, you still don't need a mortgage calculator. If you read about a 30-year $260,000 mortgage at 7 1/4%, for instance, and you want to know what the monthly payment will be, here's what you do. Are you ready? Guess!

That's right! Just guess! You know 7% will cost you $66.53 per $10,000 a month and 8% will cost $73.38 per $10,000 a month. You also know 7 1/4 is somewhere on the lower side between 7 and 8 so take a guess how much 7 1/4% will cost per $10,000 a month. My guess would be maybe, $68.50?

I'll go with that. So, since it is a $260,000 mortgage we're trying to figure the payment for, we will multiply 26 (260,000 / 10,000) X $68.50. The answer is: $1,781.

When I run $260,000 at 7 1/4% for 30 years through a mortgage payment calculator the answer comes out $1,773.66. So, our answer wasn't precisely right, but it was pretty close.

In a case like this, even if we came out with an answer that is $20-$30 off, who cares? Before the real mortgage payment is determined, the cost of a homeowner's insurance policy and property taxes will have to be calculated anyway. So, the best anybody can do at this point is guess.

There you have it. Now, you're a human calculator! As long as you're only concerned with 30-year mortgages, and today's going interest rates, which are 6% to 8%, you can figure out mortgage payments in your head, or maybe with just a little help from a pocket calculator. Congratulations!

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Rollover And Expiration Days For Futures E-Mini Contracts

It just happened that September 1st, 2006, was a Friday. (And for those interested in historical trivia, September 1st, 1939, the day WWII started, was also a Friday.) Why am I talking about it? Because September is a rollover month for many futures contracts, including very popular stock index e-minis and whenever a rollover month starts on a Friday, a rollover day is on the first Thursday and not on the second one as is usually the case. I thought that pointing this out merits some attention.

Here are some other facts about the rollover and expiration days. The latter is always on the third Friday of a rollover month. For the instruments we are most interested in, that is e-minis of the futures contracts traded on the Chicago Mercantile Exchange (CME) and the Chicago Board of Trade (CBOT), the months in question are: March, June, September, and December. There is a single contract letter associated with each month and, in the same order, it is: H, M, U, and Z.

When we switched to the September 2006 contract on the rollover day, which happened to be on September 7th, we switched to trading the U contract. The rollover day is the day most traders start trading the new contract, which also means that the trading volume shifts from the old contract to the new one. That does not mean that you have to switch to trading the new contract on that particular day as you can still trade the old one until the expiration day, but doing so on the rollover day makes a lot of sense. Otherwise, the longer you stay with the old contract the more your trading is going to be affected by the volume which is getting poorer and poorer the closer we are to the contract expiration.

Interestingly enough, December 1st 2006 also fell on a Friday and so again the rollover day was on the first Thursday of the month and not on the second one. You can easily check it using any online calendar. While this might look like a coincidence, it actually is not. There are some deeper reasons why this is so and can happen only to these two contract months. What this means, in particular, is that even if a March rollover day happened to be on the month's first Thursday, the next rollover would never be on the first Thursday in June. The same is true for the June-September sequence. In fact, using the calendar, we find out that June 1st, 2007 falls on a Friday and thus the month's rollover day will be on the first Thursday of June. However, the next rollover day is on the second Thursday in September 2007.

You can learn why this is so from a very interesting Wikipedia article. Just visit this site and find out what it has to offer on "corresponding months." That will explain this regularity.

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Bad Credit Loans from Credit Unions

Bad credit loans from credit unions assist people who do not want to get stuck with bad credit on their credit files. A clean file is surely the way go to. That is why people who have bad credit find many ways to clean up the mess and get on with their normal lives.

Credit unions are financial institutions that have been formed so as to provide assistance regarding financial matters. Most of them are in the business of helping out rather than gaining profit. And through providing and offering bad credit loans, among the many other services they provide, they are able to assist people one way or the other.

According to a couple of studies done by various organizations, credit unions have been constantly lending a hand to people who are trying to work their way up and clean their financial records as they go along. These credit unions are providing more assistance and more bad credit loans to people who have lower incomes.

Of course, each of the programs has its own set of requirements and specifications. Each has been designed and carefully thought out so as to fit the needs of their clients. There are requirements that one should qualify for, though. The rates are usually much lower compared to other sources of bad credit loans. Repaying the loan is usually planned so as to give the person the chance to be able to pay and at the same time balance the money on hand.

If you are interested in applying for a bad credit loan from a credit union, try to go over each program that the various credit unions offer. You can check and compare which loan will better suit your financial status as well as your ability to pay.

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Small Business Loans and Bad Credit

Do a search about business loans and bad credit and you will see result after result touting some way or another where you can fool the banks and lenders into giving you a business loan.

Follow those results and for the most part you will only end up poorer (paying those companies or individuals a fee) and still not getting the business loan you want or need.

Banks and lenders use credit histories and credit scores as a time saving measure. You request a loan, they pull your credit. If your credit is bad or below their threshold, they don't waste anymore time on your deal request and can move on to other deals that have a better chance of getting funded.

I deal with entrepreneurs everyday that complain about how their bank or a private lender just won't look at their deal because they have bad credit. I constantly hear the same thing:

"Why won't they just look at the merits of my business and not focus so much on my personal credit as it is my business that will be paying the loan back!"

My answer is always the same:

1) That is how the financial markets work, and

2) If you want to get approved based solely on the merits of your business then find the right business loan that focuses only on the merits of your business.

Sounds simple and it really is.

Yes, there are business loans (and other types of business financing) that either do not look at your credit at all or if they do, do not place much weight on it (great for those credit scores that are borderline).

Let's look at three examples:

1) Accounts Receivable (Invoice) Factoring: Your business writes an invoice for goods already shipped or delivered to your customer but you have to wait 10, 30, 60 days or more to get paid. Then, factor those invoices and get your cash today so that your business can pay its employees, suppliers or to complete that next job.

As your business has already completed the job and shipped the goods and is merely just waiting to get paid, the lender has no reason to even consider your credit history. Instead, they focus on the next cash event - which is your customer paying you. If your customer shows a strong promise to pay as agreed, then your loan request should be approved (without pulling your personal credit history).

2) Purchase Order Financing: Your business has already won over the customer and you have their job order in hand only to realize that your business does not have the cash on hand to purchase the materials and labor to complete that order.

Factor that job (purchase) order for up to 100% of the cash you need to complete it. When the job is done and you collect payment from your customer, you pay back the advance and keep the profits to be plowed back into the next deal.

Again, since your business has already demonstrated that it can win business, the focus of this loan approval is not based on your personal credit or the cash position of your company but in the next cash event - when your customer receives the completed order and pays you.

3) Business cash Advances: If your business accepts credit card payments from its customers, then your company could qualify for a business cash advance; based on your company's ability to continue to get customers to purchase your goods and services.

Based on past results (your business's past results and not your personal credit history), your firm could receive a cash advance to be used as working capital to re-stock inventory, pay employees, generate new business or whatever your business so desires.

And, since repayment of this advance (loan) is based on future cash flow from your credit card paying customers, these lenders are not that concerned with your personal credit scores but more concerned about your business's ability to keep getting those paying customers in the door (which is what you wanted - a business loan based on your business results and future potential and not your past credit mistakes).

Now, while Business Cash Advance lenders place the onus of their loan/advance decision on your future cash flow potential, they may still pull your personal credit. The reason is that should your business shut down tomorrow, they want to be assured that you will still pay them back.

But, if your credit score is border line or just a bit below what a traditional lender requires, then a Business Cash Advance just might be the financing kick start your business needs.

These small business financing options were designed for businesses and business owners just like you - whether it is bad credit or a lack of cash flow or whatever reason a traditional lender states why they declined your loan request.

Thus, if you are one of the many that want a lender to focus their loan approval on your business and not on your credit, then seek the right business loan; a loan that has no reason to focus on your credit (as you and your business have already done the work) but focuses more on the merits and wherewithal of your company's future potential.

So, the ball is in your court. Forget your credit score and get out there and get the business - show these lenders that your business can and has the potential to be something special and then use that potential to get the financing you need.

If bad credit is holding you back from getting the business loan your company needs, maybe it is time to step up to the plate and seek a loan that is more concerned about the abilities of your business and not solely on if you have made a few credit mistakes in the past.

In the end, it really doesn't matter where that capital comes from as it all can be spent the same way - helping you grow your business into the success you know it can be.

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The Average Cost of Texas Homeowners Insurance and How You Can Find Cheap Texas Home Insurance Rates

What is the average cost of a Texas homeowners insurance policy? How does the average cost of Texas homeowners insurance stack up as compared to other states? Is there any ways to reduce the cost of my Texas home insurance?

These are all good questions and knowing the answers to these questions can mean all of the difference. After all, would you rather save a couple hundred dollars a month off of your Texas homeowners insurance rates and then use that money for a vacation at the end of the year or would you rather just needlessly pay that money to the insurance company in the form of extra premiums every month? Of course, we all want to save some money on our homeowners insurance so let's read on to see how we can find truly low cost Texas homeowners insurance.

According to the United States Census Bureau there were approximately 23 million residents in the state of Texas and with so many people it is important to discuss the average cost of a homeowner's insurance in the "longhorn" state. Although premiums and rates may vary from company to company, researchers have tried to make it possible for every Texas resident to find out the average cost of getting a home insurance policy in Texas. Below you will be able to find out the average prices paid along with the reasons why.

Average Cost Of A Texas Homeowners Insurance Policy

Several studies have been conducted to try and find the average amount of every single state in the country and their respective ranking according to how much they pay for homeowners insurance. According to the study made by the 2007 National Association of Insurance Commissioners the average premium paid in the entire country in the year 2005 was approximately $764.

According to that same study the average Texan resident saw average premiums of approximately $1,372. The study itself found the "longhorn" state to be the most expensive state when it came to homeowners insurance in the entire United States. After the state of Texas the survey found Louisiana (which increased dramatically after Katrina) with $1,144 and Florida with $1,083.

Reasons For The Average Cost Of Texas Homeowners Insurance Being So High

Many aspects of the state of Texas can contribute to the high home insurance rates paid by the average Texan resident in the year 2005. Perhaps one of the most important things was the hurricane that hit New Orleans on August 28, 2005. Hurricane Katrina reminded home insurance companies that in states near the coast they should charge a lot of money for homeowners insurance to even stay in business. This is the reason why the first three states in the list included Texas, New Orleans and Florida which are main states in the Gulf of Mexico.
Perhaps the hurricane was the most devastating thing for home owners simply because the price of their insurance has nearly doubled. However, it is important to know that there are many other things that have to do with how expensive the rates are in the state of Texas. Many of them include natural disasters such as hurricanes, tornadoes and thunderstorms.

One thing that just makes Texas so expensive to insure a home is that the size of the state is huge!! There are towns on the coast that should be protected for hurricanes, in the north they should be protected for tornadoes and hail and the whole state has been known to have horrible mole scares. These are just a few of the many things that can happen in the state, not to mention that some areas are likely to flood after heavy rains.

Tips To Lower The Cost Of Your Texas Homeowner Insurance

Like in any industry, the homeowner's insurance business has things that you can do if what you want is a low rate. It is important to put these things into practice if you want to be one of the many people that are now saving money due to the many chances that home insurance companies give you. Below you will see tips for lowering your TX home insurance rate that you should put into practice.

Make your home better prepared for natural disasters: This is something that everyone can do and that will allow most people to lower their home insurance costs. If you have an older home you could start by putting in new heating and electrical systems so that they are least likely to end up in a home destruction due to fire or tremendous fire damage. Another thing you can do is put in storm shutters, and make window sills stronger so that damage due to storms can be prevented. Your roof can be reinforced to prevent water and storm damage.

Stay with the same insurer: This is particularly a little thing that people don't know about the home insurance business. Believe it or not companies can reward your for being a good customer in this industry. If you stay with the same insurance company they can drop your coverage up to 5% and after six years your discount can go up to being 10%. Of course you should still comparison shop Texas home insurance rate quotes every 6 months or so to weigh the benefits of getting the longevity discount versus switching to a cheaper policy with a different company.

Raise your deductible: This is the most important thing that determines your rate. Most homeowner's insurance policies start with a deductible of $250. However, if you want to save money by following this tip you must be able to afford it as soon as a disaster strikes. If you cannot afford raising your deductible then try and stay away from this tip. If on the other hand you could raise it a bit more up to $500 or even $1000 then do so. It is well known that if you raise your deductible up to $1000 you can save up to 25% of your home insurance policy.

Bundle up different types of insurance: This is also not known by many people, but insurance companies will also reward you for being a good customer. If you are one of those people that have more than one insurance need, such as auto, health and life; then you could find a company that offers two or three of them and put all those under the same insurer. This will be able save you up to 10% overall for being a "preferred customer' (depending on the company of course).

Things That Determine The Cost Of Your Texas Homeowners Insurance Policy

Although there are many things that can determine how much in home insurance you will be paying monthly, there are a few that have more impact in your policy. These determinants are:

Age of your House
Material of your House
Credit Report
Your Claim History
Market Value of your Home

You Can Find Low Cost Texas Homeowners Insurance

There are many ways in which a person can save money when it comes to getting a Texas homeowners insurance policy. Now that you have all the tools it is up to you to decide if you want to be the "average Joe" or lower the price of your Texas home insurance.

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Condominium Association Fees - Added Expense Or Benefit

Purchasing a home is without a doubt the most exciting thing that can happen to anyone. It is the single largest purchase you will make in your life. Many people chose to purchase homes because they are tired of paying someone else's mortgage by paying rent each month.

There are a lot of people who want to take the plunge and purchase a home but they are afraid of what it entails. They may feel like they are biting off more then they can chew. Along with the mortgage payments, there will be repair bills, on top of the monthly bills, upkeep on the home and property, and if you live in an area where there is inclement weather, there will be snow removal, and seasonal clean up. It is enough to scare anyone into staying a renter.

It does not have to be like that; many people choose to purchase a condominium as their first home to find out if it is really what they want. There are many benefits to purchasing a condo, the greatest being that you will not have to do any of the outside maintenance on the property.

When you purchase a condo, there will be a monthly fee to the condominium association. This fee is different from your mortgage; it is a fee that each community charges each condo owner.

You may think that the association fee is just an added charge that is not needed, however when you stop and think about what it covers, you may change your mind about the added expense.

Condo association fees cover every type of maintenance emergency that comes up. This can be very cost effective if a roof needs to be replaced. The owner does not incur any of the expense. This makes the association fees very reasonable.

The association fees also cover any snow removal and upkeep of the outside property, meaning that the owner does not have to shovel snow or rake leaves.

There are many benefits to purchasing a condo.

Starter home - condominiums make an excellent starter home. You are able to upgrade the inside to whatever you want, and when you make your payments on time, you are building your credit rating so when you are ready to sell, you will receive a better interest rate.

Amenities - They have great amenities, whether it is a pool, fitness center or both, you will spend countless hours with friends and family.

Parking - most properties offer off street parking, this is a great benefit if the area has limited or no parking at all.

Real Estate investing - Condos are an excellent real estate investment. Purchasing a condo and renovating it can turn a huge profit for investment companies.

Many regions of the United States offer excellent condo communities, however there are a few outstanding areas that are being sought after more and more. Morgantown West Virginia Real Estate Condos and Apartments is one of these communities. The incredible view and the diversity of the city make this community one of the most up and coming condo communities in the country today.

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Vendor Take Back Mortgages Explained

A VTB or Vendor Take Back, is simply where the seller (Vendor) of a property is willing to provide some or all of the mortgage financing on that property. A VTB is generally a lot more common on commercial properties than it is on residential, however, residential VTB's do exist. In fact, we have had VTB's on 3 of the 11 properties we have purchased. In one case, the seller gave my business partner and I an 80% loan to value mortgage at a 5.5% interest rate with a 3-year term! Not bad considering we didn't even have to go to the bank! VTB's usually are held because of one or any of the following reasons:

it's a distressed property, and to make it more desirable the vendor offers a VTB to the potential purchaser;
the purchaser is unable to obtain standard financing from the bank;
the seller knows (and trusts) the purchaser and is willing to help them out on this purchase;
the purchaser can obtain some financing from the bank, but doesn't have the capital to close - so the seller will hold a smaller 2nd mortgage on the property; and
the vendor may make considerably more money on the property by charging a higher than market value interest rate and collecting it back over time (sometimes there may be tax benefits for the vendor as well).

As there are many benefits to both parties, it never hurts to ask if a vendor is willing to hold a mortgage on the property. Even if it's only a smaller 2nd mortgage that just allows you to not put in an extra $5000 or $10000. As long as you aren't over-extending yourself too far, then using other people's money is a great way to use leverage and enable you to buy other properties. Or, to have money left over to renovate, refurbish, or spend on marketing to rent your new purchase.

For you, as the purchaser, there are other potential benefits from obtaining a VTB:

generally no pre-payment penalty if you payoff the mortgage early as with bank financing;
vendor's rarely ask for all the documentation (T4's, Pay stub, Employee letter, etc.) that bank's require; and
the mortgage, and it's value, will not show up on your credit score as is now becoming more common with the big banks and credit unions.

Keep in mind, however, that a VTB is not always a great plan. Ensure your real estate lawyer thoroughly reviews all of your VTB documentation including the Purchase and Sale Agreement and the mortgage and it's conditions. Also, make sure you speak with the vendor to determine if the term can be extended when it comes due.

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Foreclosure Timeline - How Long Does it Take?

The most important issue in the entire foreclosure process is that of how long it will take from the first payment being missed to the eviction of the homeowners. It is also an issue that most foreclosure victims have no idea about, and spend more time worrying about than any other aspect. Without knowing if or when the process has started, when the sheriff sale will be conducted, and how long they have after the auction until they are removed from the property, homeowners feel they have little control over the situation. Having a firm idea of the time frame of the foreclosure process, though, will allow them to put together reasonable plans to stop it with the time they have available.

The timeline of the foreclosure process will depend almost entirely on the state laws, so homeowners in danger of missing more than one mortgage payment should look those up as soon as possible. Various time lines are determined by the state, including notices that must be posted or mailed, redemption periods after the sale, and the scheduling and confirmation of the sheriff sale. Even procedures for postponing a sheriff sale are determined by the state laws. All of these aspects will be taken into account for the actual time that foreclosure victims have available to save their homes.

However, in general, the mortgage company will start the foreclosure process about 3-6 months after the first missed mortgage payment. Even though they can start it after the loan is technically in default (after 30 days late), lenders understand that many homeowners face short-term financial hardships and will be able to get back on track quickly. If the homeowners are keeping in contact with the bank, working out a repayment plan or trying to sell, they may postpone the actual foreclosure filing for a number of months, depending on the success of the homeowners. The mortgage company will want to give their clients some extra time to pay the loan back if the lines of communication are open. Of course, if the homeowners do not call the bank and ignore the phone when the lender calls to find out why they are not making the payments, then the foreclosure will begin much earlier.

Generally, a few weeks to a few months after the foreclosure is filed, the sheriff sale will be conducted at the county courthouse. Again, homeowners can get this postponed for a while, if they are working on a solution to save the home. Keeping in contact with the bank, letting them know how the process is going, and asking for more time if it is needed are all actions that foreclosure victims can take to prevent losing the home at a hastily scheduled foreclosure auction. The homeowners will have to put something in writing to the bank to show what they are working on, but postponing a sheriff sale can be quite simple. All it takes is communicating with the bank and working on a solution to the problem.

Now, after the sheriff sale, there are two possibilities, depending on the state foreclosure laws. First, the eviction process may begin right away. If this is the case, it can be another 2 weeks to a month or so between the sale date and the eviction date. The bank will have to ask the court for possession, the court will have to confirm the sale and order the county sheriff to evict the former homeowners and change the locks. But this is not a one-day process, with the sheriff kicking out the homeowners a few hours after the auction. Homeowners will still have a small amount of time to plan their future, find a new place to live after foreclosure, and move items out of the house.

The second possibility is if the state law allows for a redemption period, which is extra time after the sale that homeowners can work to keep their homes. During the redemption, they can try refinancing, selling, or paying the loan in full some other way, and keep the home in their names. After the end of redemption, though, the eviction process will start and it will be a few weeks after that that the sheriff shows up to remove everyone. But, if homeowners are unaware of the extra time they are given by state law, they may move out of the house before they have to. Redemption periods can be used by homeowners to begin a savings plan, pay off other debts to improve their credit, or begin to recover financially in other ways.

Without having the relevant information to understand how long the foreclosure process will take, many homeowners make mistakes that could otherwise be avoided. They may believe they have to move out before it is necessary, crippling their ability to start repairing their financial lives. Or, they may think that they have a lot of time left because of faulty assumptions about when the bank will start the foreclosure process, which can leave them staring at a sheriff sale before they even know it has been scheduled. Knowing how long foreclosure takes, and understanding that it is conducted differently in each state, is some of the most important advice that homeowners can receive, and will allow them the greatest chances to save their homes.

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Foreclosure - How Long Before I Lose My House?

Many homeowners have questions about how foreclosure works and how long they have between when they miss a payment and when the bank actually forecloses. If you're wondering how long you have before you have to leave, it depends on whether your case will be handled in a judicial foreclosure or in a non-judicial foreclosure. Most states allow both, but some states only allow one or the other, so you'll have to research to find out which your is for sure, but there's a good chance yours will be non-judicial because it moves faster and costs less for the lender.

All Foreclosures

- You miss your first payment (for example, we'll say this is your July payment and it was due on July 1).

- Your grace period expires (usually 15 days) and you haven't paid. Your payment is now considered late by your lender. It's not uncommon to begin getting letters or phone calls from them at this point. Don't ignore these phone calls.

- At most lenders, once you're 60 days late (September 2 in our case), your loan is considered in default and the lender can begin either the Judicial or Non-Judicial foreclosure process. To bring your loan current at this point, you'll usually be required to pay all past due amounts (your July and August payments), all late fees, and your September payment.

This is where lenders have the most flexibility in the process. They aren't required to enter the foreclosure process simply because you've fallen a certain number of days behind. If you're in communication with them and have worked out a plan to get back current, you can stay out of foreclosure altogether, but you have to take action.

Judicial Foreclosures

- Your lender's lawyer will file a complaint with your county courthouse and request a court date. This typically doesn't happen until you're over 90 days late.

- You'll be served a notice of this complaint.

- A hearing will be held in your county to determine the sufficiency of the complaint. If you believe you have legal grounds to dispute the foreclosure, this is where you and your lawyer would argue those grounds. At the end of this hearing, the judge will rule whether the complaint is sufficient or not. If it is, the foreclosure sale will be scheduled and your credit record will be marked as having a foreclosure. If it's not sufficient, the judge will dismiss it. How long all of this takes is dependent upon the courts in your area. Typically, it takes about 30 - 60 days.

- A date will be set for redemption of the property if your state laws stipulate. You can still bring your loan current (including fees, etc) until the redemption date. Even if the house has been sold and someone has moved in, if the redemption date hasn't passed, you can still get your house back...if you can get enough money.

- A date will be set for the foreclosure auction. This usually happens about 30 - 45 days after the sufficiency hearing.

*** A Judicial foreclosure typically takes anywhere from 6 months to 2 years from start to finish. ***

Non-Judicial Foreclosures

- Your lender will send you a Notice of Default in the mail.

- Your lender will send you a Notice of Sale to tell you when your home will be sold at the foreclosure auction.

*** A Non-Judicial foreclosure typically takes anywhere from 1 month to 1 year to complete. ***

All Foreclosures

- The foreclosure sale happens and your house is sold. In approximately 90 - 95% of cases, the owner of your first mortgage wins the auction because they bid the amount that you owe on that loan and usually no one else will go higher than that.

The owner of your home then contacts the county sheriff who posts a notice of eviction on your door. This notice gives you 24 - 72 hours to leave the house and have all of your possessions out. If you're there when the sheriff returns, he will escort of off the premises and anything left on or in the property will then belong to the new homeowner.

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How a Foreign National Can Buy Real Estate in America

Opportunities for real estate investment for foreigners is wide and varied in the United States. It doesn't matter where you're from and what currency you'd be using to purchase a property, you have a property waiting for you.

There are generally three kinds of real estate investment available to foreigners. These investments include the commercial estate investment and residential property investment. Residential properties are further classified into single family properties, apartments or condominiums and recreational properties. Regardless of what kind of real estate you are interested in, there are all sorts of tax ramifications, financing options and legal requirements that you have to deal with.

Why Should You Invest in the U.S. Real Estate Market?

You've probably heard of the increasing number of foreign real estate investments in the United States. This is not surprising. With the troubles that the real estate investment market is facing in the United States, greater opportunities in real estate investment were opened to foreign investors.

With the dollar's value in its all time low, foreign investors are finding real estate bargains all over the United States. There are no shortages of deals in this market. More and more distressed properties are being sold everywhere and foreigners are pouring in millions buying these foreclosed or distressed properties. The United States real estate has become a fairly attractive long-term investment for foreign investors.

In November of 2006, the National Association of Realtors released a report entitled "Foreign Investments in U.S Real Estate: Current Trends and Historical Perspective". The report showed that there has been a steady increase in foreign real estate investment in the United States. This is especially after the euro and the loonie became stronger in the face of the continuous devaluation of the US dollar. Prime bargains were opened to foreigners. Many foreigners have now looked into the possibility of retiring or settling in the United States.

If you're a foreigner, you would find a lot of reasons why you should invest in the United States real estate market. Aside from the fact that the floating exchange rate has given you a lot of leverage over the bargaining table, the financial market is a pretty good reason why you should invest in the US real estate.

The financial market in the United States in relation to the real estate market is quite liberal and the restrictions against foreign investors are pretty reasonable. This is ideal for foreign companies that are seeking to invest in the real estate market in the United States in order to avoid tariff restrictions and are considering setting up an office or a company in the United States.

Furthermore, despite the devaluation of the US dollar and the wide foreclosures of a lot of property, the real estate market remains to be stable, though slightly shaky, due to foreign investors' capital appreciation. Domestic real estate buyers may not necessarily share the same opinion, but the market has remained to be strong for foreign real estate buyers. This may be largely credited to the fact that there is minimal risk for them.

Why are Foreign Real Estate Investments Safe and Profitable?

There are a lot of investments you can make, but the safest you can make right now is investing your money in real properties. This is another good reason aside from the fact that you can make a pretty nifty profit, if you like, particularly now with the widespread property foreclosures and seemingly continuous US dollar devaluation. This is especially true if you are going to use the euro or the loonie when making your investment.

But why is US real estate investment safe for foreigners?

It is undeniable that stock investments are not a safe avenue at this point. The recession has not only affected the US economy; the same recession has greatly affected worldwide stock investments. Stocks values are dropping. It is also a fact that even without the current economic situation, stock values fluctuates.

On the other hand, real estate investments are pretty stable if you would compare it to stock investments - or even bond or mutual fund investments. With real estate investment, you'd be putting your money in an investment that would grow in value as years go by.

What are the Benefits of Foreign Real Estate Investment?

US state government supports foreign investments and along this line has formulated various tax breaks to encourage foreign investment on real estate. Many of these tax breaks are not available in many countries. In fact, most countries would frown at foreigners owning real properties within their territory.

Foreign real estate investment in the United States is open to everyone. As long as you can afford to buy the property or at least comply with the mortgage requirements and payments, you can secure for yourself a pretty good property in the United States. Again, with the current economic situation of the United States, this is the perfect chance for you to make an investment.

Another great benefit that you can take advantage of is the availability of mortgage financing. Lenders have opened their doors to foreign investors who are looking into purchasing a property. So, you don't have to actually deplete your bank account. You can actually secure a mortgage loan and gradually pay it off.

I'm Canadian, What Are My Financing Options?

There is a steady increasing rate of Canadian real estate investors in the United States; and accordingly, the government has made certain that they have attractive financing options available to them.

If you're Canadian - or if you're a foreigner - you'd find a lot of reasons why you should buy a piece of real property in the United States. For Canadians, the parity of the currencies or the apparent devaluation of the US dollar is a pretty good reason itself. But how do you finance your purchase?

There are various financing options available to you depending on which state you are in. In Arizona, for instance, you'd get favorable financing terms if you are purchasing a property for recreational purposes, that is, you do not derive any income or benefit from your purchase or ownership. You will be required, however, to sign up a disclosure agreement and give a 30% down payment for your loan. To qualify though for a loan, you may be required to show availability of liquid reserves for a period of three to six months. You may also be required to present a minimum of 3-month bank statement.

If you are purchasing a property for investment, you'd probably meet stricter terms. Requirements may be more stringent. For instance, you could be required to give a down payment of more than 30% and you may be required to show one year worth of liquidity reserves.

Regardless of your reasons, if you feel like you can fulfill the requirements of a financing loan, you can then proceed to actually applying for a mortgage loan. Also, keeping yourself updated with the financing terms flux may be a wise idea.

Understanding the Tax Ramifications of Real Estate Investment

The first foreigner to have ever bought a real estate property in the United States was Peter Minuit. This opened the doors to foreign real estate investors. After a couple of centuries later, foreign real estate investment has grown into huge proportions, accounting for billion-of-dollar worth of industry.

The low risk attached to US real estate market, the availability of countless properties, and the steady market liquidity attract foreign investors in droves. The initial snag, however, is the process of understanding the legal ramifications of foreign real estate investment.

What you have to understand is that foreign investment in the United States can take a lot of forms. A foreigner has various options. He can acquire direct interest. He can acquire an interest in the real estate through a partnership, a corporation, or a limited liability company. The latter is the typical structure used by foreign investors.

Limited partnership or Limited Liability Company offers financial protection or indirect asset protection, especially in cases of bankruptcy, law suits and taxes. Foreign investors are generally taxed on the property as if they hold the property in direct interest.

Ideally, you should secure the services of a real estate accountant to help you out with the tax ramifications, but it would help if you, at least, know the basics before you actually talk to an accountant.

There are tax consequences that you have to deal with when you buy a real estate in the United States. You would need an Individual Taxpayer Identification Number which you will use with all your tax transactions. Your investment in real estates can be treated as a portfolio investment and will be accounted for as an investment income which can either be fixed or a periodic income. This is typically taxed at 30% on gross revenues. This tax though does not apply though to all foreign investors. Tax rates would vary depending on the tax personality the foreign investor opted for. For instance, a corporation would be taxed differently.

Other things that you should take note of are availability and requirements of tax refunds and state tax laws on real estate properties as they may differ from federal laws, among other things.

By knowing all these things, you may save yourself from a lot of hassles when you finally approach a real estate accountant. You'd be in same wavelength when you finally get down to talking business. It is, however, very important that you secure the services of an accountant. You'd have an easier time dealing with the taxes ramifications. You'd also have assistance ensuring that you comply with all the accounting aspect of your investment. This is especially true if you are purchasing a real property for investment purposes.

Do You Need to Secure the Service of a Real Estate Lawyer?

If you are considering buying a property in the United States, you need to secure the services of a real estate attorney - someone who could help you with the legal issues concerning your purchase. It is tempting to forego securing the service of a lawyer to save money, but this could cost you a lot of money in the long run. Make sure that you have an experienced and trustworthy lawyer to help you out. Make sure that you have thoroughly checked out his credentials, profile, history of successful cases handled by him, and other factors that would influence your decision. You could check online and look for a lawyer working within the state where you are considering purchasing a property.

Functions of a Real Estate Lawyer

There is no actual distinctive function for a lawyer in a real estate case. However, you would really need the assistance of a lawyer for various tasks. A real estate lawyer would review the sales contract for you. He would also check on the title and other documents relating to the property. A lawyer would also review your mortgage contract and make the necessary adjustments or corrections. You could also get him to review with you the legal and tax issues concerning the purchase. A real estate attorney could also make the necessary adjustments relating to various expenses and costs involved in the purchase. He would assess your eligibility for tax refunds and draft the documents and statements relating to this.

Putting it simply, a real estate lawyer will be your watchdog. He would guide you through the whole process of purchasing a real estate in the United States in order to make sure that you will be legally protected. You will have a capable and trustworthy liaison to help you out with the contract. He will also face legal disputes if any arise.

Tips on How to Invest in Real Estate Successfully

Now, if you've fully bought into the idea of real estate investing in the United States, you might just want to know how to go about investing in real estate successfully. If you want to be successful in this venture, the first thing that you have to avoid is overanalyzing. Of course, it is a good idea to carefully think through your actions but it is a bad idea to overanalyze your investment to nonexistence. You might lose a great opportunity.

Before you purchase the property though, it might be wise to check the property value. If it sits well with you and you can reasonably afford the property, go ahead and make the purchase.

If you are considering the property for a quick flip, make sure that the property is in perfect condition and in good area. This is to ensure that you could double or actually triple your return of investment. If you can inspect the property yourself, do so. If not, a good and trustworthy agent can help you with this task.

Another important thing to remember when you're buying real estate is good financing. You should take your time to carefully consider all your financing options. Foreign investors can email in their queries to various lending institutions. It is a good idea to make sure that you've had their terms and rates on paper because they tend to change these terms and charge you with a lot of junk. Your real estate agent can help you with reviewing the escrow charges.

The bottom line, however, is that it is very important that you do your homework before you actually buy a real property. Investing in real properties in the United States can be profitable especially during these times. In fact, it may be the wisest and most perfect investment you can make right now.

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Interest Rate Explained in Details

There are various ways interest rates are understood. In its simplest form, an interest rate is the percentage of the principal (as the original loan amount is commonly called) charged over a designated period of time, typically a year. In the case of the MP3 player, the interest rate is 15 percent per year.

The real interest rate takes into account the yearly inflation rate (that is, the average percentage increase in the price of all goods and services in the economy). If the average price increase, or inflation, for the year were 3 percent (thus reducing the purchasing power of your money by the same amount), the real interest rate would, in the example, be 15 percent minus 3 percent, as the $115 owed to the credit card company would be worth 3 percent less than when the purchase was made.

Another common term is compound interest. Without compound interest, a $100 loan with a 15 percent interest rate would result in the following amounts due, assuming you made no payments: $115 after the first year, $130 after the second, $145 after the third. In other words, each year the company would charge you 15 percent of the principal. Instead, banks, credit card companies, and other institutions charge compound interest. The first year would be 15 percent of the $100 loan, increasing the amount due to $115; the second year would be 15 percent of $115, boosting the loan amount to $132.25; and for the third year, the amount owed would be $152.09. Each year you would pay interest, or a percentage fee, not only on the principal but also on the interest from the previous year, thus creating "compound" interest. For credit cards, payments are due each month, and the annual interest rate (15 percent in the example) is really a compound interest of 12 monthly interest rates.

Interest rates are also used in such financial services as savings accounts and CDs. CDs, or certificates of deposits, are similar to savings accounts but do not allow any withdrawals for a designated period of time, such as one year. Consumers and businesses open savings accounts and CDs to earn interest on their deposits. If you deposit $100 in a savings account or CD that offers an interest rate of 5 percent, you will have $105 in that account after a year. In this way, consumers and businesses receive interest because they "lend" money to the bank.

Bonds, another form of borrowing money, use interest as well. In order to raise money, governments and corporations sell bonds, which are essentially certificates that promise that the government or corporation will repay the price of the bond, plus interest, after a designated amount of time, such as five years. Government bonds are often called securities. The U.S. government, for example, sells securities to pay for the national debt (when the government spends more than it collects in taxes, there is a debt, which the government must pay). Local governments commonly sell bonds to pay for large-scale projects, such as schools, swimming pools, and jails.

The exact interest rate of a loan-5.2 percent or 23.5 percent, for example-is largely determined by the market forces of supply and demand and thus is beyond the control of any individual person or institution, such as a bank. When looking for a home loan, or mortgage, a consumer can go from bank to bank to find the best price, thus encouraging banks to compete with each other in offering the lowest possible interest rates. But because interest pays for a bank's operating costs-and because inflation (rising prices in the economy) reduces the value of money each year-there is a limit to how low an interest rate can be.

Governments, however, have significant influence over interest rates and inflation, notably through their central banks (in the United States, the Federal Reserve), which try to manipulate rates by increasing or reducing the supply of money. Other factors, such as the size of the government's national debt, also have the potential to affect interest rates. When the national debt rises, the government pays for it by borrowing money, in some cases increasing the demand, and thus the price (or interest rate), for the limited supply of money available for loans.

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Construction Loan Rates

Construction loan rates are a big consideration before you apply for a loan of this type. Due to the fact that construction loans usually deal with high amounts of money, the interest rates have a great impact on the total amount of money that the borrower will have to pay as an extra to the lender. Although each lender (usually a financial institution such as a bank) offers different interest rates for different construction loan types, there are generally a few standard guidelines that an interested borrower might need to consider.

First of all, it is essential to understand the nature of construction loans. Unlike some other types of loans, construction loans are generally considered to be risky. Due to the fact that your lender, by default, has to give you a loan on a risky investment, he sets a relatively high interest rate. This is common among all the financial institutions. On the other hand, one should not be fooled into believing that the interest rates are the same at every financial institution. While it is generally true that financial institutions, as a rule, do not give very good interest rates for constructions loans, the difference between one institution's rates and another's could still be significant.

And for those who have good credit, the interest rates are a lot better compared to those of someone who does not. The lender will always consider the borrower's ability to pay back everything on time before he gives him a good offer.

Interest rates are very dependent on the exact type of construction and the risk factor as well as other external factors such as politics. Assuming that all the factors are positive, the potential borrower should take the next step and take a construction loan. Otherwise, he might need to consider other alternatives.

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How Does Filing Bankruptcy Affect Your Mortgage?

When someone experiences financial crisis like job loss or business failure, it becomes quite difficult for him to repay the existing loans/debts. Though filing bankruptcy may seem to be a viable option in order to get rid of the multiple debts, yet it may become difficult to qualify for a new mortgage. You should also know that your existing mortgage gets affected when you file bankruptcy.

What happens to your existing mortgage after bankruptcy filing?

When you want to declare bankruptcy, you need to file either chapter 7 or chapter 13. However, the consequences of filing chapter 7 are different from that of chapter 13. The effects on your existing mortgage after filing bankruptcy are discussed below.

Consequences of filing Chapter 13:

You can protect your home from a foreclosure by filing chapter 13 bankruptcy; however, it is advisable that you seek help from an experienced bankruptcy lawyer. By filing chapter 13, you can work on a structured debt repayment plan, which can also take care of your monthly expenses. Usually, you need to repay your loan within 3-5 years. Chapter 13 can also give you automatic stay protection, which can prevent your creditors from suing you. It is also helpful to stop collection efforts during the repayment tenure.

Consequences of filing Chapter 7:

Sometimes filing chapter 13 can be really expensive for the homeowners. In that case, filing chapter 7 bankruptcy is favorable for them. It can free you from your personal liabilities to pay back the existing debts. However, homeowners may still be unable to keep their house after the discharge of bankruptcy.

Reaffirming mortgage debt:

If you want to save your home even after filing chapter 7 bankruptcy, then you need to file a reaffirmation agreement. Once you file the paperwork, the mortgage company may agree to work with you and also approve your plan so that you can clear the delinquent account within a specific time period. It means that you are agreeing to pay off the debt amount, which you owe to your lenders.

Paying for deficiency after foreclosure:

If your bank forecloses your property but cannot recover the unpaid debt, then you might have to pay for the deficiency.

How do you qualify for a new mortgage after bankruptcy?

Go through the following points to know how you can qualify for a mortgage even after filing bankruptcy.

1. Try to rebuild your credit - If you have some debts that you've not included while filing bankruptcy, then try to repay them on time. It will help rebuild your credit so that you can apply for new loans in 2 years of time.

2. Plan a budget and follow it - Analyze your financial status and prepare a budget. Try to follow it in order to save yourself from any more debt problems in future.

3. Try for FHA or VA mortgage loans - It is relatively easier to qualify for an FHA or a VA mortgage loan than that of conventional mortgage loans.

4. Get ready for making a down payment - You may not qualify for a zero down payment mortgage. Therefore, you may need to make a down payment in order to qualify for the mortgage.

5. Check your credit reports regularly - It is really important to check your credit reports regularly. If there are errors, then fix them immediately.

It is quite important to learn from your past mistakes. Therefore, you should not make any more mistakes that can compel you to file another bankruptcy in future. When you are taking out any loan/debt, you should carefully analyze your financial situation in order to ensure that you'll be able to make the required monthly payments on time.

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Tax & Financial Impacts of Divorce: 10 Mistakes to Avoid

Divorce is something no one hopes will happen to them when they get married. Unfortunately, almost half of all marriages end in divorce. Since few people have pre-nuptial agreements, most divorces involve often bitter tangles over children, money, and assets. When it comes to the tax and financial implications of divorce, often your divorce attorney is not the only one you should rely on for advice.

I have found ten very common mistakes that people make in the divorce process. A tax or financial pro can help you avoid them.

1. Don't let emotions guide you in determining the divorce settlement. Divorce is about a lot of things, but is caused mainly by emotional issues or financial problems in the marriage. You may love or hate your soon-to-be ex, but you cannot rely on your "gut" feelings that they will do right by you or the children. You must make the settlement using reason and planning for the unexpected. He or she may want to pay a large alimony and a small amount in child support by telling you they want to see you are "taken care of." That may result in less tax for them, a lot more taxes for you and destitute children should you die before they reach 18. Financial planning is critical.

2. Get a good family law attorney, but don't forget to hire a financial professional to assist in evaluating assets and financial strategies. It may cost extra fees, but it will result in a far better settlement for you in most cases. A Certified Public Accountant (CPA), Certified Financial Planner (CFP), or an Enrolled Agent (EA) can be of invaluable help. What is the house really worth? If a business is involved, what are the consequences of its disposition or the true value of it in the divorce settlement? Your spouse might tell you their business is losing money or has no assets; you need to know the truth!

3. Getting the house in the divorce is not always a good deal. Women often want the house in the divorce because they are raising a family in it or have decorated it and are emotionally attached to the property. If it has a mortgage attached to it, think long and hard about the house. It might be better to sell it and split the equity. If you aren't working and are raising kids, do you really want a big mortgage payment?

4. Failing to fight for the most child support you can get! Large alimony and low child support payments are generally not a good deal to the spouse getting the payments. Alimony is tax deductible to the party paying but taxable to the party who receives it. A large payment is a large tax deduction for one party and a big tax burden to the person getting it. Child support is tax free to the recipient and not deductible to the payer. Also, alimony may terminate upon marriage or death, but Child Support continues until the child reaches 18.

5. Failure to specify who can claim the kids on the tax return. The divorce should specify who will be entitled to claim the children. Also, Form 8332 Release of Claim may need to be filed with IRS in some circumstances.

6. Lack of planning with regard to life insurance. Life insurance should be reviewed in the event of divorce. You may want to take your ex off of your policy as beneficiary, but do you really want to make your children beneficiaries? Unless they are over 18, this can be a big mistake as the funds may go to a trustee until the kids reach majority. Consult with your attorney on how to style your life insurance to best provide for the kids. If you are the person getting alimony or child support, it is a very good idea to carry a life insurance policy on your ex in the event of death. Otherwise the money stops coming and you may end up homeless.

7. No income modeling done in the calculation of alimony. Your spouse may be a corporate executive and have great future earning potential. He or she may have stock options. An income model should be made to determine the potential they have and how it can affect your claim in the divorce.

8. Failure to secure a Qualified Domestic Relations Order (Quadro) in the event of a 401K or other tax impacted investment that is divided in the divorce. If you don't do the right thing, huge tax penalties can be imposed on taking money out of IRAs, 401Ks, or Annuities. A good family law attorney can help with this but your Uncle Joe who handles bad check defense may not be the guy you want to do your divorce. He or she may not be familiar with a Quadro.

9. Failure to have assets professionally appraised. If you have rent houses, oil and gas investments, etc. Get a professional valuation or you may be cheated in the divorce settlement. The spouse who handles these investments may not be honest with you on the values. Just because he or she loves the kids or was married to you for thirty years does not mean you can trust them.

10. Lack of faith in yourself and your future. Divorce is bad but it is not the end of the world! You may have some tough times but your life will go on and it may be a blessed life. You don't know what tomorrow brings. It may bring love and happiness. You must have faith in yourself so that you can take care of the kids and be successful in whatever you choose to do. Money is not everything, but if you don't have faith in God and yourself, you won't be financially successful.

Well that is my list and it is my prayer that it has helped you in some way. Be strong and be forceful. Don't get walked on!

J.R. Coleman, E.A., A.T.A.

http://www.exirsman.com

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What's the Difference Between an HSA and an HRA?

An HSA - a "healthcare savings account" - is medical and retirement planning savings account that can be used on a tax-advantaged basis. HSAs were created in Medicare Modernization legislation passed in December 2003. To be eligible for an HSA, a consumer must be covered by a high deductible health plan (HDHP).

By contrast, an HRA - a "healthcare reimbursement account" is an account maintained by an employer to be used to reimburse employees for qualified medical expenses. HSA accounts must be funded before they're used, but HRAs don't need to be. Using an HRA, an employer can simply pay the medical expenses as they're incurred.

HSA accounts belong to the individual employees and are fully portable; in other words, employees can take the accounts with them if they leave an employer. HRA accounts belong to the employer. Each employee gets an annual allocation of dollars and unused funds roll over from year to year as long as the employee continues in good standing. Typically, an employee forfeits the money in an HRA account if they leave the employer.

An HSA can be funded by either the employer or the employee (or, often: both). An HRA may only be funded by the employer.

All qualified contributions into an HSA are tax-free. If the employer contributes, then such contributions aren't treated as part of the employee's income, and are therefore tax-advantaged. If the employees makes contributions, these can be deducted from the employee's income when tax returns are filed.

Here's the best part: not only are deposits into HSAs tax-free... so are withdrawals. Any distribution from an HSA for qualified medical expenses is tax-free. HSAs are typically managed much like an IRA: that is, there are a variety of investment vehicles that the consumer can put his or her money into, so that it might compound and grow while it's waiting to be used for medical needs. The specific investments available to a consumer vary depending on the company offering the HSA. As we said before, like an IRA a HSA belongs to the individual and is portable.

Consumers can make withdrawals from HSAs for non-medical purposes after the age of 65 but the withdrawals (aka "distributions") are treated as income and taxed accordingly. Distributions for non-medical purposes made before the age of 65 are treated as an early distribution and subject to an early withdrawal penalty of 10% plus regular income tax.

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Is He Interested in Me? Top Signs That a Man is Interested in You

At times you realize you have fallen in love with a guy and you desire or wish he feels the same way as you do. You ask yourself series of questions. The bottom line is you want to know if he is interested in you and you would want him to ask you out so that you can both begin a love relationship. But what are the top signs to look for in a guy that is genuinely interested in you?

When a guy is interested in you, the first thing he does is try to know you. He will try to get close to you so as to find out whether you are truly the type of girl he wants. So, he starts up with friendship. He likes to spend time with you. But while he is doing all these, he is trying to find the qualities he wants in a girl of his dreams.

So, when a guy starts paying attention to you more than before, it is a sign that he is interested in you. Besides this, he gives you compliments and tries to do things for you. He will take it upon himself to know what your needs are and help you to satisfy them.

He would avoid asking about your boyfriend. He assumes you don't have any and if you do, he'll prefer to replace him. So, while you talk about everything, he does not give an indication of having a girlfriend and does not talk about you having a boyfriend. This is a strategy to remove all barriers to the relationship.

One of the top signs that he is interested in you is also seen in the way he looks at you and admire you. Often times, what attract a man to you is your physical structure. So, when a man constantly stares at you or some part of your body, it is a sign that he is interested in you.

The next thing he does is give you gifts. Once he determines the type of things you like, he presents them to you as gifts during occasions. He'll like to offer you gifts that indicate that he loves you.

Another sign is the preference he gives you over other girls. By doing this, he intends to let you know that you are special and that he prefers you to other girls.

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What Credit Score Do I Need to Buy a House?

With so much talk about the credit crunch and so called sub prime if you are wanting to buy a house your credit score has never been so important.

As a direct result of the credit squeeze, mortgage lenders have had to tighten their lending criteria significantly meaning that they now are paying much more attention to a the credit scores of borrowers before issuing home loans.

What credit score do I need to buy a house?

It is hard to say exactly. Much will depend on the specific lender in question as well as the amount of finance you need and the size of you down payment or deposit. What is certain is that the better the credit score the easier you will find it to get finance. In addition a better credit score will also mean you will be able to get cheaper finance on your home loan, meaning you monthly repayments will be minimized.

The average credit score in America is about 690. If you have a score higher than this then you should have no problems landing a competitive mortgage deal. If you have a credit score of lower than this then you will most likely still be able to find finance but it will be more expensive with a higher interest rate. If this is the case it is crucial you try to improve your credit score.

Ways to raise you credit score

# 1 The first and most obvious step is to try to ensure you pay all of your bills on time This should help prevent your score deteriorating anymore and over time will help it rise. Ensure you do not miss any monthly payments.

# 2 If you have any surplus income consider overpaying some of your debts. Start with the most expensive (the ones with the highest rates of interest). Over paying debts will improve the ratio between the amount of debt you have and your credit limits. Improving this ratio will greatly improve your credit score.

# Try to avoid any unnecessary debts. Buying a home is a big financial commitment. Be sure to wait until you have moved in and found the mortgage repayments are affordable before taking on any other additional debts.

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Calculating Interest Rates with Microsoft Excel

The Rate function calculates the interest rate implicit in a set of loan or investment terms
given the number of periods (months, quarters, years or whatever), the payment per period, the present value, the future value, and, optionally, the type-of-annuity switch, and also optionally, an interest-rate guess.

If you set the type-of-annuity switch to 1, Excel assumes payments occur at the beginning
of the period, following the annuity due convention. If you set the annuity switch to 0 or
you omit the argument, Excel assumes payments occur at the end of the period following
the ordinary annuity convention.

The function uses the following syntax:

RATE (nper, pmt, pv, fv, type, guess)

As one example, suppose you want to calculate the implicit interest rate on a car lease for a $20,000 car that requires five years of $250-a-month payments (occurring as an annuity due) and also a
$15,000 balloon payment. To do this, assuming you want to start with a guess of 10%, you
can use the following formula:

=RATE(5*12,-250,20000,-15000,1)

The function returns the value .95%, which is a monthly interest rate of just less than 1%.
If you annualize this monthly rate by multiplying it by 12, you get an equivalent annual
interest rate of 11.41%.

As another example, suppose you want to calculate the implicit interest rate on a $300,000 real estate mortgage that requires thirty years of $2000-a-month payments (occurring as an ordinary annuity) but (thankfully) no balloon payment. To do this, assuming you want to start with a guess of 10%, you can use the following formula:

=RATE(30*12,-2000,300000)

The function returns the value .59%, which is a monthly interest rate of slightly more than half a percent.
If you annualize this monthly rate by multiplying it by 12, you get an equivalent annual
interest rate of 7.0203%.

A final point: Excel solves the RATE function iteratively starting with the guess argument you provide.
(If you don't provide this optional argument, Excel uses 10%.) If Excel can't solve the RATE argument within 20 attempts, it returns the #NUM! error. You can try a different guess argument, which may help because you're telling Excel to begin its search from a different (hopefully closer) starting point.

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Guaranteed Approval Credit Cards for Bad Credit

You can still get guaranteed approval credit cards for bad credit even though you have poor credit history. Many credit card companies provide credit cards with guaranteed approval for bad credit to help you improve your credit rating and at the same time enjoy the benefits of the credit cards. The limit for credit cards for bad credit varies from company to company. It is generally in the range between $5,000 and $10,000.

Application for bad credit credit cards usually does not require credit check. You are approved regardless of income or credit history. Credit cards for bad credit, however, generally have higher annual interest rates than regular credit cards. This is obviously something you should consider when selecting the best credit card for bad credit. Compare some variables such as enrolment fee, APR, credit limit, and any benefits: emergency cash transfer, extended warranty protection, etc.

Bad Credit Credit Cards Improve Credit Rating

Companies providing credit cards for people with bad credit provide monthly reports to major credit bureaus, the institutions that maintain credit history of millions of people around the country. Credit card companies usually have an integrated system that connects to these bureaus to verify the credit rating of people applying for bad credit credit cards.

By making regular payment to your bad credit credit card you are automatically improving your credit history. Try to make at least minimum amount to your credit card before the due date. After some time you will become eligible for normal credit cards and receive the benefits of good credit standing.

Credit Card Application for Bad Credit

Before applying for bad credit credit card you should be clear on the purpose of getting it. Have you already gone over-limit on your current credit cards and need a new one? Or are you applying for bad credit credit card to fix your current credit score? You should also compare various offers from credit card companies to ensure that you get the best one you need. Evaluate every item in the offer and read all terms and conditions. Often some credit cards for bad credit have hidden costs and can become very expensive in the future.

When you are ready you can fill in an application for bad credit credit card. Online application usually takes a few minutes only and you will receive an answer for your credit card request within hours of submitting.

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