Interest Only Home Loan – Is It Right For You?

Written by Carrie Reeder


There are many benefits to interest-only mortgage loans. There are many situations where an interest-only mortgage loan could be best for you.

Here are some ofrepparttar situations where an interest only mortgage loan might be beneficial to you:

1. If you are in a situation where your income is sporadic and would rather haverepparttar 111769 option of paying as little as possible sometimes and then paying larger amounts when there is more income, for example, a real estate agent or loan officer.

2. If you are investing your mortgage payment savings in something else that is low risk, and has a much higher return on your money than your house payment.

3. If you are temporarily in a situation where your income will be low for a while but then increase later on.

4. If your mortgage is only temporary, for example, an investor looking to flip a property or someone who is working on a fixer upper. It would be good in any situation where it would be in your best interest to keeprepparttar 111770 payment low as opposed to creating equity inrepparttar 111771 home.

Bankruptcy - Your Fresh Start

Written by Chris Cooper


Most American consumers are living too close torepparttar edge. They are carrying too much credit card and mortgage debt and have too little inrepparttar 111768 way of savings. Whenrepparttar 111769 inevitable unexpected crisis comes along, they have little left to handle it and quickly slip into a critical financial state.

According to many bankruptcy experts, most people file for bankruptcy due to life-changing experiences, such as a job loss, divorce or serious illness. Uninsured medical expenses are supposedlyrepparttar 111770 cause of about 20% of bankruptcy filings. But excessive debt also plays a very large role.

If you are drowning in debt with little realistic hope of paying off your bills, bankruptcy is your only real option. Although far from pleasant, bankruptcy can be easier to handle thanrepparttar 111771 constant pressure put on a debtor by lenders and collection agencies. You can immediately stop all harassment and legal actions, wipe out a good deal of your debt and get a new start on life.

The anomalies of credit scoring also work against debtors struggling to pay off debt. Your score will be low because of excessive use of debt and missed payments. You’re unlikely to get new credit andrepparttar 111772 interest rates on your credit cards might be raised to usurious levels. You are likely to have a better credit score and find it easier to get credit – very expensive credit - after bankruptcy than before.

Alsorepparttar 111773 stigma and embarrassment that used to accompany bankruptcy has largely disappeared. To many, it has become just another financial planning tool.

The Bankruptcy Procedure

Bankruptcy courts are part ofrepparttar 111774 Federal court system. The bankruptcy law itself is a Federal law, althoughrepparttar 111775 states can have their own laws, which govern such things as exemptions. Federal bankruptcy judges apply bothrepparttar 111776 Federal and state laws inrepparttar 111777 jurisdiction where they sit. Debtors sometimes have a choice of which law should apply.

Bankruptcy proceedings are commenced by filing certain required forms and paying a fee. Filling automatically stays all legal proceedings against you as well as all debt collection actions. Fees can be paid in installments, but must be completely paid beforerepparttar 111778 dischare will be granted.

A trustee will be appointed. His job is to review your financial affairs, collect and sell assets, if necessary, and distributerepparttar 111779 proceeds to your creditors. If you are setting up a repayment plan, he will be responsible for seeing it implemented. He will even pursue your debtors to collect money owed you that can be used to pay off your creditors.

The trustee’s powers includerepparttar 111780 power to set aside preferential transfers made to creditors within 90 days beforerepparttar 111781 filing ofrepparttar 111782 bankruptcy petition,repparttar 111783 power to undo security interests and other transfers of property that were not properly recorded under non-bankruptcy law atrepparttar 111784 timerepparttar 111785 petition was filed andrepparttar 111786 power to pursue claims such as fraudulent conveyance and bulk transfer remedies available under state law.

Cont'd on page 2 ==>
 
ImproveHomeLife.com © 2005
Terms of Use