Real estate auction action - Buying a home at auctionWritten by Jakob Jelling
Due in part to popularity of U. S. Department of Housing and Urban Development (HUD)'s home auction program, more potential homebuyers than ever are buying homes at auction. Homes for auction aren't limited to just HUD, however. Many government entities auction homes for payment of back taxes, and some homeowners even auction their homes on eBay.com!Homebuyers considering buying a home at auction should take some steps in advance to help them with their bid price, and even whether to bid at all on a specific home. There will always be a degree of risk when buying a home this way, but with a little diligence, potential homebuyers could save a lot of money buying in this manner. Before auction, you should have your financing arranged, and have enough cash on hand or in your bank account to cover a deposit on your purchase. You need to check features, location, condition, and ownership history first. Afterwards, be sure to learn what property is worth by looking at sales of comparable properties in same area. Compare homes with same number of rooms is possible, but be sure to allow for price differences due to pools, decks, carpeting, window treatments, etc.
| | The Effects of Consumer DebtWritten by Nicola Bullimore
Consumer Borrowing Consumer borrowing in UK has now crashed through £1 trillion barrier. 80% of this is due to credit card borrowing, loans and mortgages. How are people managing to handle their debt and what effect is debt having on families today?The National Consumer Council reports that 6 million families in UK are already struggling to make repayments towards their debt, and Citizens Advice reports that over last 6 years, they have seen a 44% increase in number of people seeking debt advice. This may be just tip of iceberg. There must be many families in UK who have debt problems, but are not aware of free help and advice available. Tackling Debt According to a DTI survey carried out in 2002, a household is likely to be over-indebted if: §25% of your annual income is spent on repaying Creditors §50% of your annual income is spent on repaying credit and mortgages §You have 4 or more companies that you owe money to. People find it difficult to make repayments for a number of reasons. Generally, underlying cause is some kind of change in personal circumstances such as job loss, divorce, illness or a new baby. In these instances some people may resort to more borrowing in order to pay creditors or household bills. This is not always best option. Effects of Over-Indebtedness The personal effect of struggling to repay debt can be far reaching. Sometimes a lack of financial awareness can lead to stress, depression, anxiety, mental health problems, relationship breakdown and even suicide. Raising Financial Awareness The Government recognise need to raise financial awareness amongst general public. The financial cost of debt is not only on an individual level, but there is also a cost to society in general.
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