The Secret to Dealing With Banks When Having Mortgage Problems

The current real estate market is an utter mess, which is leading to a situation where many borrowers are in financial trouble. This brings us to the secret to dealing with banks when you are having mortgage problems.

Foreclosure. It is an ugly word. It used to be reserved for people that ran into major financial difficulties, which occurred fairly rarely. Unfortunately, that is no longer the case. Millions have or are about to be forced into foreclosure in the current real estate market.

The reason is a combination of a variety of factors including price, valuations, resetting interest rates on loans and so on. We aren’t so much interested in what is causing the problem in this article as we are interested in what to do if you face this situation. Life can get very stressful when the lender starts calling, so what can you do?

The first thing to realize is your mortgage lender is in the business of lending money. It is not in the business of owning homes. Regardless of what you’ve heard, your bank does not want to foreclose on you. They don’t want to own the property. They don’t want a bad loan on their books. They just want to sit back and collect payments. Understanding this is the key to dealing with your potential foreclosure situation.

When confronted with a potential foreclosure, most people panic and freeze up. They can’t see any obvious way out of the problem so they do nothing. This is a huge mistake. The problem is not going to go away. If you get proactive, you may be able to find a way out of the problem. In fact, you usually can.

The first step is to contact the lender. Don’t treat them like an enemy. You need to tell them you are having problems. If you’ve missed payments, the lender already understands this. Discuss the possibility of going with a forbearance of payments for three to six months or a reduced payment schedule for a few years. The market is going to bounce back at some point, so you can try to ride it out. Alternatively, you can try to sell the home during the period you are granted relief.

What if the bank is unwilling to give you a break? Well, ask for approval to do a short sale. A short sale is simply the sale of the home for a price that is lower than what you owe on the home. The bank will usually agree to this because it receives a majority of its funds back and doesn’t have to deal with the cost and aggravation of foreclosure.

If you are facing foreclosure, do not stick your head in the sand. Get proactive and deal with the problem. Lenders do not want to own homes, so you have some leverage. Get creative and you’ll be able to get out from under the burden of your mortgage loan.


Comparing Auto Insurance Quotes – Finding the Cheapest Rate

If you are looking for ways to save money on car insurance, there are several techniques you should know about. One of the most important strategies for minimizing your costs is comparing car insurance quotes from multiple companies – this will help you make sure you are getting the best deal possible. When comparing insurance quotes, there are several things you should consider. First, not all companies will quote the same coverages, and those that do may quote different levels of coverage. For example, all insurance companies are required to provide bodily injury and property damage liability coverage; however, one company might quote the state mandated minimum limits, while another might quote a policy with much higher limits. It is important to find out which coverages and limits are included in your quote, so you can make a fair comparison.

Also, it is important to consider policy discounts when comparing auto insurance quotes. A few states mandate certain discounts, but most allow insurance companies to offer only the discounts they want to provide. When you talk to insurance agents, find out which discounts are available through each company – these discounts can potentially save you hundreds of dollars per year. For example, one company might offer a “good student” discount for young drivers, while another company might not. This could mean a difference of as much as 10% between the two quotes.

A third thing to consider when comparing auto insurance quotes is whether a company uses credit scoring as part of its rate calculations. Some companies assign a factor to credit scores – if you have good credit, this could mean you will pay less for car insurance than the average driver. Conversely, if you have poor credit, this could mean that your insurance rates will be higher than average. If your credit is less than perfect, you may be able to save money by choosing a company that does not use credit scoring.Comparing car insurance quotes can be a tedious task, and it is not one that most people want to spend time on. However, doing this will help you get the coverage you need at a rate you can live with


How Long is a Speeding Ticket Held Against You For Auto Insurance Purposes?

When you are thinking about your auto insurance and your auto insurance coverage, you will find that you are looking at an expense that you have to pay, but unlike your rent or your house payment, you will find that the amount can go up and down fairly dramatically. When you want to make sure that you have affordable and cheap auto insurance, you will find that one of the things that you have to look at is what happens to your auto insurance quotes when you get a speeding ticket! Your insurance policy can be a tricky thing, so keep some of the following information in mind.

When you are thinking about things that can raise your auto insurance rates, you will find that you don’t have to worry about your first minor traffic violations. Things like a few parking tickets or even a single speeding violation will most likely not be held against you. When these incidents are rare, you will find that most insurance companies are fairly forgiving. Things of this nature only become a problem when you start repeating them, or if you find that you are getting them constantly.

If the offense is significant, however, you will find that you can see a rise in your insurance policy. You may see a rise if you have been engaging in reckless behavior that got you a speeding ticket. Keep in mind that your driving offenses are going to be separated into categories, and points are going to be given depending on how serious the offense is. With this system, what is essentially happening is that your amount of points will total up with the insurance company, and once you have accumulated a certain amount over a limited span of time, you will find that you are going to be classified as a high risk driver and your rates will go up accordingly.

When you want to make peace with your auto insurance company over something like a speeding ticket, remember that if you get no other violations that you can expect your rates to go down. Depending on the company, this can take anywhere from eight months to over a year; the nature of the speeding ticket will also affect it. When you are looking to make sure that your rates go down as fast as they can, make sure that you look into things like voluntary traffic school, which can remove the ticket from your record entirely. This can have a powerful effect on your ability to reduce your rates.

Remember that your auto insurance is not carved in stone. Take the opportunities that are handed to you to clean your records and you’ll find that there are plenty of things that you can do to lower your rates.


Account For Property Tax When Home Shopping

Home shopping can be fun but when you think the time is now to invest in a property, you are leaping into a major financial commitment. Prior to your home purchase, you are actually entitled to pay off several expenses aside from the purchase price. And property taxes are included in your home acquisition repertoire. You have to do a little research whenever you do your home shopping. It is like canvassing products and equipment before riding the purchase bandwagon.

Property taxes can make any home shopper groan. Home buyers certainly do not like handling property taxes and the processes that it entails which is something they are likely have to deal with beforehand. Multitudes of home shoppers that have mortgage loans set up accounts whenever they close on a home purchase. From this account, property taxes are paid as well as insurance premiums. In some cases, many homeowners may want to take out the property taxes from this account and directly pay the taxes.

However, this can be difficult, that is why having an account for your property tax is much advisable.
Say, for instance, that you are shopping for a home. But reality and questions set in who will be responsible for paying the property tax at some point in the first quarter of your home acquisition. Usually, property taxes are classified as pro-rated meaning that sellers are responsible for paying the taxes until the closing date. From that date on, you will be held accountable for the property tax payments as home buyer.

So what is this account for property tax when home shopping? If you have a loan officer, he or she will provide you good faith estimates which reveal just how much you will be depositing into an Escrow account for property tax payments in the future. This account also includes putting in your homeowners insurance.

What will happen next is, you have to send payment for your property tax every month by using the Escrow account. Basically, property taxes are due annually so your account will hold your property tax payments every month until the time they are due. Note that the account for property tax does not create an interest for banks as it is merely a holding account that is useful and convenient for your expenses. If you have applied for loans when home shopping, the bank or loan company will pay the taxes for you at the time they are already due.

An Escrow account is basically a special savings trust account with the name of the borrower to pay the property taxes. You can deposit your savings in a bank or financial institution which are held and segregated for specific purposes such as your property tax. Indeed, having this type of account comes in handy whenever you are going home shopping. Escrow accounts enable you to purchase the home you want as you are confident you have adequate funds to finance property taxes and insurance pay offs.

However, do not be lenient when it comes to having this type of account for property tax whenever you go home shopping. You need to pay sufficient money to cover anticipated property taxes, insurance, and other estimated taxes. The money should be fairly paid into the account. Furthermore, when home shopping, keep in mind that you must be current in your loan payments to acquire your ideal home and pay off property taxes.