Monthly Archives: February 2016

The Importance of Credit Scores

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If you want to buy a car or a house you need to have credit. The better your credit score the more favorable terms you will get on home and car loans as well as other forms of credit. It can affect your insurance rates and can even have a bearing on your employment. A credit score is a number derived from a person’s credit report that represents their apparent creditworthiness. Credit report data comes from three primary credit bureaus: TransUnion, Equifax and Experian. These reports are evaluated to determine how likely it is that a person will pay their debts.

The first credit scoring system was created in 1958 by the Fair Isaac Corporation (FICO). It was used for investments. In 1970, American Bank and Trust created a credit scoring system for bank credit cards.

The FICO credit scoring system is the most popular and widely used. It is considered the standard of US consumer risk. FICO scoring is based on the following criteria:

Payment History (35%) Credit Utilization (30%) Length of Credit History (15%) Types of Credit Used (10%) Recent Searches for Credit and/or Amount of Credit Recently Obtained (10%)

If the loan or credit applicant’s FICO score is low, the bank may deny credit, charge higher interest rates, and request more detailed financial information or require collateral.

Each of the three top credit bureaus use the FICO credit scoring system. However, credit scores can vary from one credit bureau to another because each company has its own databases and procedures for gathering reports from different creditors.

It is prohibited by law to base credit scores on race, religion, national origin, sex and marital status.

US residents are also legally allowed to view their credit scores once a year at no cost. You can see your credit score for free by visiting www.annualcreditreport.com.

Credit scores are used to decide who qualifies for a loan, and at what interest rates and credit limits. The higher the score, the more likely you will be able to purchase a product or service with credit.

ABOUT CHRIS SCULLY

Chris Scully is a consumer advocate for ethical debt settlement and credit repair practices, a personal finances blogger at MyMoneyMess.com, and author of the book “The Debt Survival Kit.” You can contact Chris at .

Free From Debt

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Are you tried of going to the mail box and find many bills in there waiting for taking out your check book? Have you ever wondered if you will ever be free? Each month you pay the minimums and although you KNOW you’ve got a handle on it – you are not charging your credit card or accumulating new debts anymore – it seems that you will be paying the minimum fees forever.

The way you pay your debts can affect how soon you will finish paying them off – even if you keep paying the same amount for debt every month. Of course you might be able to get a consolidation loan, but if you’re not eligible or are not interested then there are several other things you can do. It’s not always the easiest to figure out the mathematics, but there are four steps to quicker debt relief.

1. Create a list: List your smallest debts first followed by your largest high-interest debts (credit card) and then your largest low-interest debts (Lines of credit and taxes). Plan to pay the minimums on all debts with these goals in mind:

2. Small bills first: They may not be the highest interest, but every bill that you are paying some interest on means you are usually only paying minimal amounts on the principal. Multiple debts are also a sure way to bring your spirits down. Paying off small debts first is a quick way to start checking them off – and freeing your mind.

3. Move the payments along: When one debt is paid add the funds to the next debt. For example, say you’re making $75 payments to a small debt. When the debt is cleared add the $75 to the next debt on your list. If the next debt had a minimum payment of $100, you will now pay $175 until it is paid off. When that one is finished, take the $175 and add it to the next payment and so on.

4. Save the cash!: Don’t forget that when your debts are cleared you have set yourself up for a better financial future. The best way to take advantage of your new situation is to use all the money you were spending on debts and start investing or saving it every month.

It is a worthwhile goal to get out of debt. With this strategy your debts will clear faster meaning you will pay less interest, you will see progress as you clear small debts first, and you will not be tempted to use the funds for personal use instead of debt repayment. Now you will see goal come sooner and teaching yourself discipline sets you up for a brighter financial future.

Loans With Bad Credit Get Finance Quick Received

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You are not by yourself who made repayment faults in the past and got a bad credit ranking score tag. A large chunk of population has multiple such troubles. But that does not mean that all doors for borrowing new finance are closed on them. Still, they can find a bad credit ranking score loans for variety of purposes, such as renovations, debt consolidation, vehicle purchasing, wedding and holiday tour. All the way of these loans with bad credit, you can make developments in your credit ranking as well. These loans take risky people into go bankrupt. The borrowers may have some or multiple credit ranking woes like late expenses, arrears, CCJs or IVAs or they defaulted on expenses. Such a bad history of credit ranking also results in lowering of the borrower’s credit ranking.

Take some steps before applying for loans with bad credit. You should first take out your credit ranking score from credit ranking agencies. Ensure that the report has recorded all your expenses correctly, so that your credit ranking does not fall too much. You must know your credit ranking as well in order to know the attention amount you will be paying on bad credit loans guaranteed approval. As well, it would be wise to apply for the loan with an improved credit ranking on first paying off some debts.

Bad credit ranking loans are accessible as per your circumstances and requirements. These loans come in unsecured or properly secured options. High risk people are able to get the properly secured loans with bad credit approval without many hurdles against their home or any property of lesser value. The amount borrowed will be determined on the property value. Its advantages include lower attention amount and larger repayment duration of 5 to 25 years for returning greater loan in timely manner.

Tenants also can borrow money under loans with bad credit. They can opt for the loans without offering any security. However, attention amount will go further higher for them. Only significantly less will be approved for 5 to 10 years, depending on your repayment ability.

Sourcing is very essential in taking out give somebody an advance of money. First apply for amount quotes of as many lenders as you can apply for online loans with bad credit. Compare them to find out which offer is suitable in expressions of interest levels and other terms-conditions. Have preference attractive personal bad credit loans from online lenders for competitive rates and few additional fees.

Top Tips For Credit Card Shopping on Holidays

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Technology
has always been advancing and they continue to do so. Advancements of
technology have resulted in credit cards and at present, almost everyone
owns a credit card.

Like
any other thing, credit cards also have their benefits and drawbacks.
Credit cards are most useful during holidays. While you are on a trip,
security is primary area of concern and credit cards just solve this
issue with ease. Credit card shopping must be given utmost care;
otherwise you will probably lose some of your valuable hard earned
money. Here are some tips that are going to help you while you are
shopping with credit cards.

Create a budget

Credit
card shopping is not as easy as it seems. If not used properly, it is a
perfect way to lose some heavy cash. So, it is always better to create a
budget before you start shopping. Planning has to be spot on while
shopping. Make a list of items that you wish to purchase and estimate an
amount for each product. If you wish to buy decorative items, wrapping
paper or baking supplies, estimate the total amount. Also be aware of
credit card balance and this will help you calculate the time that you
need to pay back the credited amount. Keep track of the interest rate
and use the credit card accordingly. Setting a budget always helps
reduce expenses.

Get the Most out of your Credit Card

When
used properly, there is no other thing that has the capability to keep
up with the potential of credit cards. There are several benefits of
credit cards and you need to be aware of every single one while credit
card shopping. The majority of people carry around credit cards that
have a lot of balance in them. This must be avoided at all costs, or
else you will have to pay a hefty amount as interest. It is always
better to use only one credit card and this always helps improve your
credit score. Using too many credit cards at the same time gives a wrong
impression to providers. Almost all credit cards come with a higher
interest. So, try to select one that offers you low interest rate. This
helps you expand your purchase list.

Stay Safe Online

Online
credit card shopping is more convenient and safe. Like any other
procedure online shopping also has its merits and demerits. There are
several websites that promote online shopping but keep in mind to select
one that is genuine. Try to opt for a website that has a built a good
reputation over the years. Online shops enable you to compare prices of
different products and shop for products that come under your budget.
The majority of the websites promote delivery service and some of them
charge for such services provided. Online stores have a huge collection
of products. All other expenses are avoided by online shopping.

Consider
the above discussed credit card shopping tips to make shopping
effortless. Following these tips guarantees to help you a great deal in
planning and making a smart purchase during the holidays.

Bankruptcy, Is It A Way Out

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Negotiations with creditors have failed. Repossession is imminent
and foreclosure proceedings have begun. Your income is simply not
sufficient to pay your bills, no matter how low the payments are. It may
be time to consider bankruptcy.

Bankruptcy law evolved as a
reaction to the abuses surrounding debtors prison. Before the nineteenth
century a prison system existed for those who didn’t pay their bills.
If a merchant filed a claim, the debtor was incarcerated until his debts
were paid. (Women were not found in debtor’s prison, not because of
chivalry but because they did riot have the ability to borrow). The
lender was legally responsible for the expenses of the prison stay,
including food, but seldom paid. After all, a debtor would have to sue
in order to enforce this law, and it was rather difficult to sue when in
prison. As a result, many borrowers languished in prison for years,
surviving on what their family could bring to them or, in many cases,
simply starving to death. Although some lenders would doubtless not
object to the renewal of debtor’s prison, fortunately we live in more
enlightened times. Bankruptcy was created to provide a second chance (or
third, or fourth) to those hopelessly in debt It provides a mechanism
to wipe the slate clean and begin anew. As times have changed, though,
so has the bankruptcy code. Not all debts can be wiped out. The
proceedings can be easily disqualified in the event of improper
procedures. There are many things a debtor should know before resorting
to bankruptcy.

The Bankruptcy Decision

There are two kinds
of individual bankruptcy: Chapter 7 and Chapter 13. Chapter 7
bankruptcy, named for the chapter number in the bankruptcy code,
requires a full liquidation of all debts and cancels all no-exempt
debts. Chapter 13 bankruptcy is essentially a court-mandated payment
plan that sets up affordable monthly payments to your creditors,

The
decision to declare bankruptcy is not an easy one. Unfortunately, many
bankruptcy attorneys recommend bankruptcy to just about anyone they
consult with. All too often frightened consumers are advised to declare
bankruptcy just to avoid a few debts. This is a mistake. Bankruptcy
should truly be a last resort as the legal system meant it to be. A
bankruptcy appears on your credit for ten years, and although lending
criteria are slowly changing, many lenders will not even consider an
applicant who has had a bankruptcy. What’s more, a Chapter 7 bankruptcy
can cost you most of your property. Before making a decision to declare
bankruptcy, estimate how bad your situation really is. On a piece of
paper, make a list of all your assets and the approximate value they
could be sold for. On the other side, add up all of your debts. If the
debts exceed the assets by a large percentage, you may wish to consider
bankruptcy. On the other hand, if it seems that your situation may
improve (you may get a new job or a second income), or if your assets
are of greater value or close in value to your debts, a different
approach may be appropriate.

Negotiate with your creditors

Explain
your situation and ask for more time to pay. If the creditors refuse
and continue to threaten garnishment tell them such action would force
you into bankruptcy. No creditor wants to hear the “B” word. Using
bankruptcy as a threat is a very powerful negotiating tool, confronting
creditors with a choice between getting a little each month or probably
getting nothing through bankruptcy. Don’t try this tactic on secured
creditors. They may decide to repossess your property to avoid having to
go through court.

Contact Consumer Credit Counseling

As
mentioned earlier in the book, Consumer Credit Counseling is a
non-profit group funded by creditors to help consumers negotiate
repayment plans. It is often able to negotiate payment arrangements
better than the individual because of its constant contact with a
variety of creditors. If you can’t negotiate a satisfactory arrangement,
give these people a try. Remember, the fact that you are using credit
counseling may appear on your credit record.

Consider Chapter 13 bankruptcy

This
kind of filing allows you to repay your debts in a court-mandated
fashion and will appear on your credit record for only seven years, If
negotiations fail or there simply isn’t enough money to make ends meet
Chapter 7 bankruptcy may be your only option. Bankruptcy does not
necessarily discharge all debts. If your debts are exempt from
bankruptcy, filing will do very little to improve your situation. If a
co-signer was used, the debt would then be owed by the co-signer, unless
that person also declared bankruptcy. In community property states a
spouse’s assets and debts would also be included in the bankruptcy,
assuming they are community property. Consider all very carefully before
deciding to file.

Non-Dischargable Debts – Bills You Have To Pay In Spite Of Bankruptcy

Certain
kinds of debt cannot be automatically eliminated by bankruptcy filing.
They must meet certain requirements before being eliminated by
bankruptcy. If most of your debts are non-dischargeable, bankruptcy may
not solve your financial dilemma. The only ways a non-dischargeable debt
can be eliminated through bankruptcy are through an exception being
granted by the court, a certain period of time transpiring since the
debt was due, or because the creditor does not object to the discharging
of the debt. Certain debts can only be discharged by an exception. They
are:

Recent Student loans

This applies to student loans
that became due within the last five years. Any extension of repayment
would be added to this time period. Some courts, furthermore, will only
discharge payments that are more than five years past due. So if the
student loan was due seven years ago and the payments were originally to
be made over a five-year period, you would still be responsible for the
last three years of payments. The court may also grant an exception to a
student loan if it would produce an “undue hardship” for you to pay it.
This is rarely granted.

Taxes

Federal, state, and local
taxes are not dischargeable for at least three years after you file your
tax return. Even if you’ve been tied up in tax court for more than
three years, any tax assessed within 240 days of filing for bankruptcy
is non-dischargeable. Property taxes are dischargeable if they are over
one year late, but the lien against your property is not. The bottom
fine is that you can count on the government collecting its tax money
eventually.

Child Support and alimony

These can only be
discharged in special circumstances, which generally include agreements
that have not been court-ordered. If one spouse has agreed to assume
more than half of marital debts in exchange for lower support payments,
the court may not discharge all debts held by the spouse for bankruptcy.
Consult an attorney if this situation applies.

Fines

Neither
fines from a court, judge, or government agency nor surcharges,
penalties, and restitution, as a general rule, can be discharged in a
bankruptcy. The same is true of debts incurred as a result of damage or
liability from driving while intoxicated. The debt incurred from
intoxicated driving must be established in court and a judgment must be
issued by a higher court. Small-claims, traffic, and municipal judgments
for intoxicated driving are all dischargeable. Once again, consult an
attorney.

Debts not discharged in a previous bankruptcy

If debts from a previous bankruptcy have been found non-dischargeable, they cannot be discharged in a later bankruptcy.

Debts not listed on your bankruptcy petition

If
you do not include a debt on your petition, it will not be discharged.
Many people filing bankruptcy keep one or more credit lines with small
balances or no balance out of the bankruptcy proceeding to preserve part
of their credit resources. Another strategy is to reaffirm debts on the
condition that credit continues to be offered. The creditor, confronted
with a choice between collecting nothing and maintaining your credit,
will sometimes choose the latter. Be very careful when reaffirming debt.
You are not obligated to and you should have a new written agreement
spelling out all of the new conditions.

Other kinds of
non-dischargeable debts can be discharged immediately if the creditor
does not object If the creditor objects, these debts will be judged by
the court to be either dischargeable or non-dischargeable. The creditor
can ask that the debts not be discharged if they claim the following
conditions existed:

The debt was acquired by Intentionally fraudulent behavior

Fraud
in this case is any dishonest act used to obtain credit. Claiming to be
someone you are not, or borrowing money when you have no means or
intention of repaying it, would be clear-cut examples of fraud. Not
disclosing certain relevant facts could also be construed as fraud. If
you make a promise and intend to keep it and believe you will be able to
keep it, that is not fraud. Creditors tend to be paranoid and believe
everyone is defrauding them, so this excuse for non-discharge is often
used by creditor’s attorneys.

Debts Incurred as a Result of False Written Statements

A
blatantly false credit application would qualify. The inaccurate
statement must be an important fact and one that the creditor relied on
in order for the debt to be judged non-dischargeable. A misspelled name
or minor error would not render a debt non-dischargeable. Drastically
overstating income or misrepresent a job title would be considered
fraudulent.

Fraudulent usage

If you charge “luxury goods or
services” in an amount over $500 within 40 days before filing
bankruptcy, the debt is likely to be deemed non-dischargeable. The same
is true if cash advances are obtained fewer than twenty days before
declaring bankruptcy. A lot of small charges, made to avoid
pre-clearance, would also be considered fraudulent if you were over your
credit limit or obviously unable to pay.

Debts resulting from illegal or malicious acts, embezzlement, larceny, or breach of fiduciary Responsibility

Any money owed because of illegal acts such as
embezzlement (taking property left in your safekeeping), larceny
(theft), or the failure to fulfill your duties as a trustee can be
non-dischargeable. The court will usually de a definition of fiduciary
responsibility.

Once you’ve examined your debts and determined
what is dischargeable and what is not, you can determine whether
bankruptcy would enhance your current financial situation. There are
several other things you should know before you decide whether to file.

Exempt Assets

A
common misconception about bankruptcy is that you lose everything you
own to satisfy your debts. In fact, the court will allow you to keep
many things essential to your well being, and perhaps even a little bit
more. Although there is a federal exemption law, only in states and the
District of Columbia allow you to use it These states let you choose
between the state and federal exemption laws. The in states are:

Connecticut

Hawaii

Massachusetts

Michigan

Minnesota

New Jersey

New Mexico

Pennsylvania

Rhode Island

Texas

Washington

Wisconsin

Vermont

The other states require a person declaring bankruptcy to use state exemptions.

Here are some examples of things that may be exempt, depending on the state in which the petition is filed.

The Banking Name You Can Trust Upon Canara Bank

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The Indian Banking system has undergone a sea change in terms of service and functions. The credit of maintaining trust and confidence goes to few banks who have endlessly served to provide their customers a classy service. Be it grievance handling or meeting standing orders the services have been commendable. One such bank upholding the trust of the clients is Canara bank. Canara Bank is one of the oldest financial institutions of India, started in 1906 in Karnataka. Nationalized in 1969, it has grown to be a huge financial conglomerate, owning many subsidiaries and joint ventures throughout the world. The bank has 3057 branches and over 2000 ATMs, as of 2010. It has been a pioneer of several banking and financial services like launching an exclusive Mahila Banking Branch, providing credit card facility to farmers, extending Agricultural Consulting Services, launch of exclusive IT consultancy subsidiary etc. It has subsidiaries in Financial Services, Securities, Asset Management, Venture Capital Fund, Factors, Computer Services and finance home. The bank also won the National Award for excellence in the field of Khadi and Village Industries in 2011.
Canara Bank has several objectives on the basis of which it aims at being a “Global Bank with Best Practices”. It promotes national interests, takes active part in rural development and has several training initiatives to enhance rural self-employment. It provides all essential banking services at all branches, including Real Time Gross Settlement (RTGS), National Electronic Funds Transfer (NEFT), Internet and Mobile Banking (IMB) etc.
As a very customer centric bank, it has stringent grievance redressal policies. The Canara Bank Customer Care aims at resolving all customer issues promptly and systematically. All complaints can be filed online on the Canara Bank website or on various toll free numbers listed on the website, or in any particular branch, where the Branch Manager would deal with the complaints. To ensure fair settlement of all complaints against Canara Bank, the bank has a complete policy document that lists in detail how each type of complaint is to be dealt with, in how long, and what can be done in case the customer is still not satisfied, along with a list of alternative remedies. The document is available on the website.
All Canara Bank complaints are addressed within a maximum of 21 days, as against the time frame of 30 days stipulated by Ministry of Finance. The bank has a review mechanism for every complaint that would help in identifying and overcoming any kind of shortcoming on part of the bank or its employees. Employees are specially trained to deal with all sorts of complaints courteously. There are suggestion boxes, complaint books; Help Counters available at all branches for quick and easy registration of any grievance. The bank constituted a standing committee on customer service in 2005, which reviews and improves customer service periodically. Undoubtedly, the bank has fulfilled and fulfilling its promise of its slogan “serving to grow and growing to serve.”

Highlights of a Personal Accident Insurance

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Journey of life is full of uncertainties. Personal Accident Insurance provides protection against unforeseen incidents such as accidents and mishaps. Personal Accident Insurance provides lump sum benefits in case of death or disability due to an accident by external means. Also It also covers the cost of medical expense as a result injury or hospitalisation incurred by an insured due to an accident. In case of accidental death the nominee will get the principal amount as compensation under personal accident insurance. 10% of sum insured is given to the insured in case of partial disability.

Additional Benefits

Educational grant and higher education expenses are given to the children of the policy holder in case of accidental death.

Few personal accident policies also bears the expenses incurred in preparation for burial and cremation. Due to an unfortunate incident the body of the insured needs to be shipped to place of his or her residence and the cost of shipment is borne by the personal accident insurance policy.

Cash benefits coverage is provided for hospitalisation expenses due to an accident or sickness. Medical bills reimbursement due to injuries whether hospitalised or not, are covered in personal accident insurance.

Group accident insurance is a group cover provided by an employer when his employee needs to travel on work and meets with accident.

What is not covered by Personal Accident Insurance?

The claim will be rejected if the accident is caused under influence of alcohol or drugs. A self-inflicting injury or reckless driving causing accident by the insured will not be covered by insurance policy. Death due to suicide or injury due to an attempted suicide is excluded. If an insured engages in dangerous sporting activity and suffer injury, are not covered by the personal accident insurance.

If a person has been found engaged in criminal activity and had suffered injuries, such injuries or death is not covered.

Personal accident insurance provider takes medical opinion about disability whether it is due to an accident or is effects of an existing disability. If that it’s an existing disability, the insurance company rejects the claim immediately. By taking cover of an accident insurance policy at least the worry of how related expenses will be met, can be avoided. Such mental relief will surely help with better physical recuperation.

A claim can be rejected if the documents and paper are forged, inaccurate or incomplete by an online insurance company.

To get a prompt claim settlement, inform the insurance company about the incident as soon as the accident occurs.

For more information visit: Personal Accident Insurance and Online Insurance.

Finding Fast Methods In Debt Help

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free debt help, consumer counseling credit, bad credit ConsolidationYou can use your savings or go in for a consolidation loan to arrange the one time payment. Sixty percent of Canadians polled recently by Rate – Supermarket. If you are wondering about how to deal with credit card debt, you need not worry. Consumers apply for hardship by contacting their lender. Just sit back, relax, and take a deep breath, think of all the possible solutions that can help you manage your debt.

As soon as you decide to file bankruptcy and get rid of your debt, the Chapter 7 bankruptcy time line starts to pick up the pace. Do you believe only on what the settlement companies are telling you. If you would like more information or if you want to get started with seeking professional credit card debt help, visit the online website for a debt relief network today. But now you have at least one way to get your loan paid off fast – it’s just below. Alternatively, it’s a method to help the litigant to get more home-based assets.

They will first recognize the problem faced by you and then guide you accordingly. Most of the items that consumers purchase, depreciates very quickly. 3) When you stop making payment obviously you will begin to get harassing calls from your creditors or collection agencies. Often, people are under huge amounts of debt without even knowing it. The card debt relief option has many advantages for the consumers.

If you opt for this method then you can easily get rid of the debt and can run your business without any difficulty. After all, it is easier to live a debt-free life when you owe the credit card companies less money. If you have been paying your installments on time, the bank will provide extra favors. Write down all sources of income and how much money they provide. Knowledgeable rabbits know the key to beating any collector is answering demand notices by returning a letter asking for legal proof of any debt you supposedly owe and because he can’t show any proof even if Daffy duck is the judge you win by demanding proof.

~ A good indicator of a company being fake or shady is if the company asks for an upfront fee. There is no use finding programs and settlement firms unless you are eligible for this process. Knowledge is the key for the consumers who are going for debt relief program. Many card holders do not analyze their bill regularly and if you are in need of debt help, then it is imperative that you understand how the interested is calculated. They will ask for a lot of money before even starting the process.

Banking Backlogs and Inconsistencies Plague the Mortgage System

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As a REALTOR in Williamsburg, VA, I have seen many of inconsistencies with mortgage companies during a down market. Frankly, this frustrates buyers and sellers, me, my staff and colleagues.

I have mortgage company incompetencies, slowdowns and backlogs to share. I have collected some stories from other agents in my RE/Max Capital office in Williamsburg, too. These snafus in the mortgage approval system impact buyers and sellers in a negative way.

Short Sales Frustrations
It is common for a seller to short sale a property, and to have the lender(s) make the seller wait six months for approval and then deny it! More often than not this crucial decision leaves the seller in financial ruins. The sale of the home is never closed, and the property now exists as bank inventory and may not even hit the real estate market for a year or two. Wasting time on short sales leaves homebuyers and home sellers hung-up in financial limbo, and real estate agents without a closed deal. This cannot be good for the economy.

FHA Owned Properties: HomeSteps and HomePath

The FHA is a government agency, backed by tax dollars. If a buyer happens to put an offer on an FHA owned property, they have to use the recommended program. The federal government, in its infinite wisdom, has instituted the HomeSteps program through Freddie Mac and HomePath through Fannie Mae as public loan programs for the home buyer to help assist in the process of closing deals on FHA owned properties. Private lenders work through the program while adhering to government guidelines.

Though the HomePath and HomeStep Programs are enticing for what they offer, the process is slow and unwieldy. Some real estate agents have found the formula applied to each loan approval is not always the same. One agent in my office had a buyer turned down because HomePath indicated they did not have enough income. When the agent confronted the loan officer, she wanted to know why the 10-month income verification was not applied, instead of 12-month verification. She said her clients would qualify with a 10-month formula, and the loan officer agreed it was allowed. Her complaint is that formulas are not being applied consistently. Even those with good credit and stable work histories are finding it hard to close on HomePath loans.

HomePath Lending Program
Fannie Maes HomePath program offers a traditional mortgage with 3% down, and no appraisal or premium mortgage insurance (PMI) is required. In addition, Fannie Mae offers another 3% down loan that includes home purchase and light to moderate renovations on primary or second homes or investment properties. A separate loan funds manufactured homes with the same 3% down payment.

HomeSteps Lending Program
The Freddie Mac Loan Program, HomeSteps, is stricter. The HomeSetps website recommends a 5% down payment with the possibility of qualifying for special programs offering down payment assistance. An appraisal is required on HomeSteps property purchases. Only certain homes will qualify for this program. A public review on the HomeSteps loan program is just as discouraging as HomePath. According to one buyer who complained publicly on CityData.com, the lender was Wells Fargo and the buyers made an initial offer on a Homesteps property, then made a lower offer once it was determined the house had illegal problems. She inquires, “Is it normal to wait three weeks for a reply?”

Often buyers become frustrated with these slow moving property deals and move on. More often then not, the sale never closes.

Bank of America Backlog on Foreclosure Contract & Loan Approval
The Bank of America foreclosure department also drags its feet on closing real estate sales. I had a buyer ready to close on a Bank of America owned foreclosure and it took them two months to produce a contract. My buyer had an 800 credit score, but it took so long to approve his application, he became frustrated and pulled money out of another investment to pay cash for the property. I was lucky he had assets and was not totally reliant upon bank financing.

Bank of America Loan to Income Ratio Askew?
Another client I had was prepared to close on a property with Bank of America financing and he had a 780 credit score. The loan officer waited until one week before closing to inform him he did not qualify because his debt to income ratio was too high. When we considered lending alternatives, five other banks approved his loan, and even the USAA approved it. Why was Bank of Americas loan to income ratio different than the rest?

The backlog in application requests, slow customer service, and inconsistencies with loan approvals are all reasons for concern about the mortgage lending industry today. Everyone involved in closing real estate deals becomes frustrated: real estate agents, buyers, sellers, lawyers and contractors. Even the federal government has become suspicious of Bank of Americas (and other mortgage lenders) incomplete foreclosure paperwork and processes.

Though the federal government has been investigating some issues, lender inconsistencies and slow or no customer service are rampant in this real estate market. Buyers need to build extra time into their home sales process and agents need to exercise patience and attention to details for property deals to close.

For more information about purchasing bank owned properties, residential or commercial properties, or listing properties for sale, visit http://www.voncannonrealestate.com.

Can Bankruptcy Chapter 13 Score Over A Debt Consolidation Program

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Basically, a debt consolidation program allows a debtor to combine the total outstanding balances through a single payment method. Instead of making numerous and multiple payments on the credit card debts, one is able to make a single and low interest payment. This system may also help the debtor to organize the debts and to increase the credit score more conveniently. While there are numerous consumers who consider the debt consolidation method as a one stop solution to their debt problems; there are others who feel that, a debt consolidation program does not get to the essence of debts. However, there can be several occasions when a debtor might not qualify for a debt consolidation program; those who do not can think of the bankruptcy option particularly Chapter 13. Even by filing Chapter 13, one is able to consolidate huge debts, but the procedure may differ from the one that is used in a debt consolidation program. Let us study the differences and the benefits of both the processes:

Basically, Chapter 13 is a type of debt consolidation; since it is backed by a Federal Bankruptcy Code, a debtor can expect to get better advantages in this procedure.
As soon as Chapter 13 is filed, an automatic stay comes into effect. It is almost like a court based instruction which will prevent most of the debt collection efforts against the debtor. On the other hand, a debt consolidation method is not as powerful. Chapter 13 will stop such actions as a wage garnishment or a foreclosure which is forced on the debtor by the creditors.
While Chapter 13 allows each one of the debts to be combined into a monthly payment e.g. taxes, child support, car payments and mortgage. However, a debt consolidation program will allow the debtor to consolidate specific debts.
In a debt consolidation program, the creditors can only consider lowering the interest and reducing the balances; but in Chapter 13, if certain qualifications are met, a debtor can eliminate up to 90% of the debts. As a result of the reduction in the principal amount, the debts can be eliminated more quickly in chapter 13.
As far as Chapter 13 is concerned, a debtor will be obligated by court to represent the case in the best interest of the debtor; unlike debt consolidation, which is a privately run method, Chapter 13 is backed by legal requirements.
Chapter 13 is also convenient as it tackles the significant debts at first; but a debt consolidation company can penalize the debtors for delaying the unsecured debts.

Therefore Chapter 13 can be considered to be a better option than a debt consolidation program; however, there is a marked difference between the two, and the debtors should understand both the options before getting on with their debt issues.