Posts Tagged ‘Consumers’

A Better Way Bankruptcy

After surviving the difficult process of a foreclosure, a former homeowner may still face an additional obligation to their mortgage lender. Unmanageable by most, there is a way to clear this sizeable debt by filing bankruptcy.

When a home is sold through a foreclosure action, and sufficient funds are not collected from the sale, the lender can file for a deficiency judgment against the borrower to repay the balance of the debt. The lender, or their collection agency, can ultimately garnish wages and freeze personal bank accounts to collect the funds. The garnishment is often a surprise to the account holder and perpetuates the strain on the household budget.

An example would be if Mr. Smith originally purchased his home for $350,000, and today owes $300,000. Laid off from his job of ten years, Mr. Smith is forced to take a job that pays considerably less. He falls behind on payments, and the mortgage company will not work with him or offer any other options. His home is sold at foreclosure for today’s market value of $250,000. The lender then obtains a deficiency judgment from the court against Mr. Smith for $50,000, which now becomes a new financial obligation.

The laws vary from state to state, but this judgment can often be obtained for no additional cost by combining it with the original foreclosure lawsuit. Lenders are taking advantage of the opportunity in states that allow this process, and are still filing in others if it proves cost effective.

Filing chapter 7 bankruptcy wipes out this additional debt completely, eliminating aggressive actions to collect and preventing the lender from further pursuit. Consumers can move forward, without the burden of past dues, and with a clear picture of their finances.

As stressful as this time in a person’s life is, it is important to be proactive and consult a qualified bankruptcy attorney as soon as the need is determined. There are many options to explore, and the laws are always changing. Hiring an experienced attorney will ensure that the best individual choices are made. Current earnings, assets and debts are carefully examined along with future plans and goals. The best timing for filing for bankruptcy, whether it occurs before or after a possible foreclosure, can only be determined with the help an expert.

By enlisting the assistance of a bankruptcy attorney, consumers can do more than wipe out a deficiency judgment; if they are proactive and contact their attorneys prior to the judgment, they can also stop it before it happens, which will keep it from ever appearing on their credit report.

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Are you aware that one could refinance your auto loan just as a mortgage on your own home? Regardless of your credit, with interest rates being at historic lows, you are able to refinance now and lower your expenses on your existing auto payments. Many lenders are moving on the web to provide competitive programs at discounted rates that will help you save. Consumers are flocking to the web to try to find ways of refinancing car loans. Refinancing your existing vehicle loan is a superb to save money and takes very little time to finish. Many of us have financed our current vehicle through the dealership where we purchased it. While that is extremely convenient, it is usually not essentially the most cost efficient way to finance a car and that is why refinance auto loans became so popular. Refinancing your existing loan can save you a lot of money over the life of the loan and put more money inside your pocket each month. Here are a few simple steps to help you through it:

The majority of us go right into a dealership and finance using the dealer when we purchase a car. While this trend is changing, if you fit that description, there is an excellent chance you might decrease your payments. Why? When your financing your auto through the dealer, the dealership in several cases marks that rate up to you. You see, the lender gives the dealership a rate you’re approved for and then the dealership increases that rate so they can earn finance income on your loan.

Getting a refinance loan online is quite simple. You fill out a basic application with information about you and your current loan. Then the lender reviews that information and typically calls to get a payoff on your existing loan. From there, you sign a number of documents and then your part is done. Then your new lender pays off your old lender and you now possess a new loan with lower payments.

Discover the Right Lender: The internet makes it easy to find the best lender to fulfill your needs. Do a little analysis and find one that provides the refinance product. Not all lenders offer this type of loan. There are various advantages to finding the lender but one of the main is the flexibility you will have when working through the terms of that new loan. Do you wish to extend the term to maximize the monthly savings or is the first goal to lower the total amount of interest you might be paying? Either way find the proper lender and they can help you work through these questions.

Choose the Terms: The terms of the refinance loan are dependent on a couple of factors. Not just does your lender have a lot to do with the ultimate interest and term you are allowed to financing but your vehicle could have plenty to do with it as well. Does it currently have “high” mileage or is at an older model? Most lenders offering the refinance product will let you refinance a vehicle which is seven years old or newer (currently a 2003 model) and one with less than 70,000 miles. As soon as you hone in on the lender, be sure to ask what their particular vehicle limitations exist.

Start Saving Money: Whether you are merely attempting to lower that interest rate or you happen to be aggressively trying to lower your monthly payments, a refinance car loan can help you achieve your goal. In several cases, consumers are saving between $10 and $125 per month by refinancing that existing vehicle loan.

In just a matter of minutes, it is easy to apply, get that loan decision and be on your way to saving. You could find more out about a refinance vehicle loan or other loans associated with auto financing online at OpenRoad Lending.