Bankruptcy - a means to avoid foreclosure.

Wednesday, December 24, 2008


Bankruptcy is the last option to choose to avoid foreclosure. If no other options help you to avoid foreclosure, then you can opt for bankruptcy. But you cannot just file bankruptcy on your own. You can file bankruptcy only if you pass the eligibility criteria. You can take help of an attorney to file the bankruptcy. There are two different kinds of bankruptcy - Chapter-7 and chapter-13. So the attorney can also help you to choose which chapter is appropriate for you to file.

Bankruptcy chapter7

If you file Bankruptcy chapter7 then all your non-exempt properties will be sold to pay your creditors. Chapter7 hurts your credit report heavily but the lenders cannot come after you for the deficiency judgment. If you file chapter7 then your credit score will be doped by 250 to 300 points. Also you may not get approved for mortgage for 5 to 7 years after filing bankruptcy chapter7.

Bankruptcy chapter13

If you can file bankruptcy chapter13 then the lenders cannot foreclose or harass you. You can be able to pay your lender with an easy repayment plan with an affordable rates and terms. It does not affect your credit as much as the bankruptcy Chapter7. It will drop your credit score by 100 to 150 points and you may be able to get approved for a new mortgage within one year after you file bankruptcy chapter13. But the best thing is that you can keep your dream home as your are filing chapter13.

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How can you avoid foreclosure?

Foreclosure has become a daily phenomenon in our life. Actually foreclosure is considered even worst then Bankruptcy. The lender can sell your house to get his money back. It will also affect your credit report and cause to drop your credit score by 250 to 300 points. So we should have a clear idea about how can you avoid foreclosure if the worst happens. So I have tried to point out some useful ways through which you can avoid foreclosure.

1. Whenever it seems that you can’t afford the mortgage, first of all contact the lender and check out what are the options that are available for you.

2. You can also request the lender for forbearance that is a formal agreement between the lender and the borrower for delaying the payment.

3. You can even request for a repayment plan and to change the terms and condition so that you can catch up the missed payments.

4. If you want, you can sell the property and pay off the lender to avoid foreclosure.

5. Now if the property value is lower than what you owe to the lender, then you will have to take permission before selling the property. This is called short sale. This is another way to avoid foreclosure. But here the lender can ask you for the deficiency judgment.

6. If you cannot even sell the property then you can request the lender for Deed in lieu of foreclosure. But in this case the lender cannot come after you for the deficiency judgment.

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How to Improve Your Credit Score

Thursday, December 11, 2008

how to improve your credit score?

Your credit score is one of the most impotent things to determine whether you are eligible or not to get a loan or buy a property or car. Even the rates and terms of the loan will depend upon your credit score and your credit history. If you have lower score then the interested rate of the loan will be higher and if you have higher credit score then the rate of interest rate of your loan will be comparatively lower. Above 680 credit score is considered as good credit score. From 620 to 680 is considered as average credit score. But if you have a credit score lower than 620 then it will be considered as poor credit score and it will be tough for you get approve for a loan. So you should always try to maintain a good credit score.



If you have a poor credit score there are different ways to improve your credit.

1. First and foremost pay all your bills on time and keep a record of it.

2. Don't go for huge amount of debt that you can't control or pay back on time.

3. Don't close your old credit cards and don't always go for news cards. If you change your credit cards frequently then it will have a negative affect on your credit score. So keep your old account open.

4. If you have any wrong information on your credit score then try to dispute it ASAP as the wrong information will ultimately droop your credit score.

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Warranty Deed

Sunday, December 7, 2008

Warranty Deed is another type of deed that is used to transfer the property to one person to another. But here the Grantor or the seller assures that he/she holds the title clear and free and has the absolute right to sell the property. The Seller even grantees that if buyer finds any debts attached to the title in the future then the seller will be liable to pay the debt. So it is always better to use a Warranty deed instead of Quitclaim deed when you are buying or selling a property. You can even hire someone for title search before purchasing the property so that you can find out whether there is any problem with the title of the property.



There is another kind of Warranty deed which is called Special warranty deed but this Special Warranty deed doesn’t assure as much protection as a General Warranty deed. In a Special Warranty deed, the grantor or the seller warrants that they have the ownership of the title and the title of the property has not been transferred to anyone else during their ownership of the property. The grantor or the seller warrants nothing prior to their getting the ownership. This type of Warranty deeds are mostly used by the trustees.

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The Blog Finance Zenith is a premier source of news, information, tips, and commentary on personal finances problems and its solutions worldwide. It has often been cited by both the mainstream media and bloggers as a reliable source of facts, figures, opinion and trends about personal finances.

Founded by Kim Patrcik in the year 2008 as a premium source of finance information and news guarantees to provide all the solutions to the people having problems related to debt, credit, insurance, mortgage, economy etc.

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