Write Off Your Credit Card Debt Legally

Write Off Your Credit Card Debt Legally

Most Americans of today carry a credit debt of some $38,000 or so in the form of Credit Card Dues, Automobile Loans, Mortgage Payments, and other loans.

And most of them are having trouble meeting their monthly financial obligations.

There are many methods of handling your debts like debt consolidation, debt settlement, etc. and also a way to get your credit card dues written off legally.

Debt Consolidation is nothing but getting a fresh new loan and paying off all your smaller debts like medical bills, credit card dues, grocery and department store dues, etc.

These are the small unsecured debts. The new consolidated loan is usually a secured one with some of your property as collateral against the loan.

The monthly dues on this loan will usually be less than the total payments on the unsecured loans and will help save a sizeable amount.

Debt Counseling is where an experienced counselor will go over your income and expenses and prepare a budget. You will be required to sell some luxury assets like an additional car or a boat and advised on cutting down expenses.

This kind of counseling is given for both profit and non-profit companies. The money from the sale of your assets goes to the payment of some of your debts including credit card dues.

The debt counselor or the counseling company liaisons between you and your creditor and arranges all the transactions and takes a fee for the services rendered.

Debt Settlement is the art of negotiation with your creditor and persuades them to take a lesser amount than you actually owe in full settlement of your debt.

There are firms that will do the negotiating for you or if you are confident and know the ropes you can do-it-yourself.

The negotiator or the negotiating company takes a percentage of the amount by which they got the debt reduced.

Another method is to try to modify the loan. This is called “Loan Modification”.

Here an attempt is made to either reduce the rate of interest or make a modification in the tenure of the loan or reduce the principal amount or a combination of two or three of the above depending on the circumstances and the creditor’s willingness.

Your budget is prepared thoroughly with necessary cuts in unwanted expenditure. This method is usually adopted in the case of mortgages so that the homeowner does not lose his home.

Filing for bankruptcy is the last and final option for getting out of your debt. If your bankruptcy application is approved by the court, you are not responsible for your debts any longer.

The court will order that your assets be sold and the debts cleared off. At times the court may not decide in your favor and you will have to resort to other methods of debt settlement.

But filing for bankruptcy is fraught with a lot of difficulties and your credit history and your financial future is destroyed.

How to Use Your Land as a Down Payment for a Construction Loan

How to Use Your Land as a Down Payment for a Construction Loan

A construction loan gives a homeowner the opportunity to build the house of his or her dreams.

No longer is he or she relegated to cookie-cutter homes in a neighborhood.

Now is the time to use that paid for lot or land as equity for a construction loan to build your house.

Use the equity as a down payment and avoid taking any cash out of pocket in the initial part of the process.

Step 1

Contact a lender and request a loan application. Be sure to request a lender who can handle a construction loan, not a traditional mortgage.

Step 2

Fill out the application and provide the lender with bank statements, pay stubs, and tax returns.

List the down payment as the equity in the land. The equity is the percentage of the property owned free and clear, without any liens attached to it.

Step 3

Provide the lender with a copy of your contract with your builder and the architectural designs for the home.

Step 4

Request an appraisal on the property, both “as is” and based upon the finished product.

Ask your lender to lend you the amount needed to build the house and to use the equity as the down payment on the transaction. Things You’ll Need

  • Deed for land
  • Construction plans
  • Loan application
  • Bank statements
  • Pay stubs
  • Tax returns
  • Builder contract
  • Appraisal

Tips

-Ask the lender to pay the builder directly, as soon as preset requirements are met. This keeps the builder accountable and keeps you from spending the funds on other items for the home.

Warnings

-Construction loans are charged a higher interest rate than a traditional mortgage, due to the risk to the lender.

Be sure to inform the builder that the higher interest rate is not desirable and you would like to refinance to a longer-term mortgage with a lower rate.

In other words, you want the house to be completed as soon as possible.

SBA Loan Default: Why Do Banks Cancel Foreclosure Liquidation Auctions?

SBA Loan Default: Why Do Banks Cancel Foreclosure Liquidation Auctions?

It is happening more and more every day. In some areas of the country, it is the rule, not the exception.

This trend will get larger and larger, creating a real dilemma for everyone involved, as it is unclear what happens next and what to do about this situation.

It is like the groom not showing up at the wedding or maybe better described as the executioner not showing up at the hanging.

Here is the deal.

On the one hand, the banks need to foreclose on defaulting loans, that’s the rule.

Once defaulted and noticed and the process closely adhered to, the home eventually is scheduled for liquidation by auction.

At this event, it is hoped that someone will bid inadequately and the bank will sell or liquidate the property converting the asset, the house, to cash for the bank.

Ownership changes hands and the previous owner is out the door, on the street, without ownership of their home.

The new owner steps in and the bank while taking a loss receives some consideration as a payoff. That’s the plan.

Now what is happening is, the bank goes through the process, perfects their position, notices the owner and the community, advertises and on the day of the foreclosure auction, they withdraw the event and stop everything.

Who owns the house then? It’s still the original owner, as he has been brought to the edge but not pushed over.

Why would a bank do this? Difficult to know exactly what they are thinking but there are some obvious reasons we can see.

First, the bank has determined that the likelihood of a bona fide adequately high bid is all but zero.

If the auction occurs and no one bids the bank ends up owning the property they must now ensure it, pay for the utilities to protect it, be responsible for maintenance and repair, pay the taxes, market it indefinitely until a buyer is eventually found.

This is extremely expensive, time-consuming and not the business the bank wants to be in.

Thus, they are more and more frequently bringing the foreclosure process to the brink of completion and then walking away, at the auction date, not completing the process, having determined that no one will show up to bid.

The bank does not want to own the home, thus, they allow the status quo to remain, the owners in the house, ownership not having been changed, and no payments expected or made for an indefinite time period while everyone waits for something to happen.

foreclosure noticeShould the economy improve, the bank can always fulfill its mission and auction the house. Until then the family lives free in a house that for all practical purposes is owned by no one.

This leaves the family to care for the house, and maintain its viability as the bank waits for the economy to mend itself, which it believes will surely occur…sometime.

What should the owner do? A hard call, some stay on living, without cost, trying to repair their own financial condition, get a new job and either rework their debt obligation with the bank or walk away looking for other living opportunities, now that they have repaired their own financial situation.

It is new ground, never experienced before, thus, there is no history to follow and learn from. The fact is, this is what is happening all across America.

In Detroit, entire neighborhoods are being abandoned by the banks, and the homeowners are abandoning their homes leaving blocks of unwanted, not lived in, properties that neither the bank nor the borrower want or continue to live in or maintain.

Ownership and its responsibilities appear to be the hot potato that no one wants to get stuck with.

It’s unusual times, unusual problems, unusual actions, on everyone’s part.

Be aware, pay attention and make decisions with this issue in mind, it may apply to you.