Nov 25

Foreclosure is a curse not only for the borrower but for the lender as well. As far as the lender is concerned, he too is in dilemma that he should go for the foreclosure or not. Therefore the borrower as well as the lender wants to keep a distance from this curse. In this article you will get an idea that how you can stop foreclosure.

There are many tricks for this. Some of them are as follows:

  1. The first trick which is coming to my mind is that you should give details to the lender about your position. Suppose you are suffering from poor economy then it is pretty sure that you will not be able to pay the installments. If this is a problem then you can tell about it to the lender. You should understand that the lenders are also human being. They will certainly understand your dilemma and provide you with some option. They might transform your loan.
  2. The second trick which can be helpful for you is the short sale. This is yet an added trick. In this case the lender agrees to surrender to some level. In this kind of trick not only the borrower is in loss but the lender is also in loss. But, let me tell you one thing that with mutual understanding both of them is able to reduce the loss to a great level. Hence, short sale is unquestionably very profitable.
  3. The third thing is the loan mitigation. In order to explain the loan mitigation I would like to take the example of loan modification. In this case the lending company provides substitutes to the borrower. Some of them might turn out to be reasonable and the borrower will be able to pay the installment. Thus they will be saved from the above curse.
  4. Yet another trick is the stimulus plan of Obama. You should know that our president Obama has sanctioned some money for this purpose. You can claim your share and hence pay back your dues and you will be saved from the above curse.
  5. In fact the foreclosure problem arises when the cost of your house goes low and it is not able to recompense your loan. This means that even if you sell your house, then as well you will not be able to pay back your loan. But you should be in contact with your real estate agent. He might have some answer as well.
Nov 16

One of the reasons why many people find it extremely difficult to keep up with a good credit score rating in credit score scale is by spending indiscriminately and not keeping track of their financial transactions. That is the reason why their bad credit scores plummet from being a respectable score to being a score which is definitely not going to incorporate a feeling of security in the minds of financial money lending institutions.

So, to understand what a credit score is and to raise your credit score, one needs to know that it is the figure which is going to be referred to, by a financial company, when you apply to it for a loan. The idea is that if a client has a reputation of paying his bills in time, he is definitely going to pay off the outstanding amount in matters of the loan which he is taken from the company and will raise your credit score. This loan can take the shape of mortgage, auto loan, student loan and any other sort of loan, which calls for a large amount of money to be borrowed from a creditor.

So it is extremely important that one knows the importance of good credit score which will raise your credit score. Some people have a tendency of buying a number of credit cards, because the deals which came with them were so attractive and they think that having a number of credit cards will raise your credit score. That means that they are under the impression that any sort of outstanding bills on the credit cards are going to be managed in a methodical manner, by them, because they are financial experts and know credit repair secrets. Soon they find themselves in all sorts of financial problems, because they cannot settle the bills. They cannot even repay the loans. The credit score of such clients is definitely going to drop drastically in credit score scale, because they have already gotten a negative rating from their creditors. One thing, which you should not do in order to raise your credit score on credit score scale is maxing out on your credit cards, because you went on a spending spree. This is going to have an adverse affect on your credit scores, especially when you do not have that much money to pay off your bills at hand.

That is the reason why many people find their credit card rating and credit scores dropping off, after they default on a number of long-overdue payments. This is definitely going to show up adversely upon your credit card statement and report, and that is the first thing a financial institution is going to be looking for, when you ask them for a loan. What you need to do is to raise your credit score rating by paying your bills promptly and in time. A credit card is definitely not a means of supplementing your income; you have to pay the piper sometime. Once you understand this, you can have a healthy credit score in credit score scale in future.