Finance, Loan, Debt and Credit.

March 11, 2018

Debt Consolidation Company – an Asset if Chosen Wisely

Filed under: Debt — Tags: , , , , , , — admin @ 12:47 pm

Many fall back on a debt consolidation company to bail them out of burgeoning debt. But select smartly to avoid pitfalls. A bad loan company can spell more trouble than help if you don’t tread with caution.Why A Debt Consolidation Company?

Scores of people deep in debt resort to debt consolidation to free themselves from debt. Simply put, debt consolidation allows you to take one loan to pay off many others. These loans are offered to you by debt consolidation companies. These companies also offer various debt management plans to customers who seek a way out of debt.

But it is of paramount importance to exhaustively judge a company before you plunge into a loan plan.Here Are A Few Pointers To Note. A Good Debt Consolidation Company Will:

A good debt consolidation company can bail you out with its debt consolidation loan. Free debt consolidation helpcan be got online as well but remember to check and double check your loan company, its terms, its credibility etc.

November 24, 2016

Loan Modification Help – What Is Asset Ratio and How Important Is …

Filed under: Loan — Tags: , , , , , — admin @ 12:46 am

Do you need loan modification help because your mortgage has become unaffordable? Millions of homeowners are in the same boat and are desperately trying to convince their lender to offer them a loan workout to lower their monthly payments. The process can be confusing, frustrating and even intimidating for borrowers who have never experienced this type of situation before. However, you can make the process a lot less stressful and improve your chances of success by taking just a bit of time to learn the basic guidelines for approval.

One of the most critical areas that will be reviewed is called your Asset ratio. This category is used to determine if you are really facing a financial hardship situation that will be eligible for a loan modification. What are considered assets when applying for a loan modification?

Asset Ratio Considerations:

  1. Checking accounts
  2. Savings accounts
  3. Money market accounts
  4. Stocks & Bonds
  5. CD’s

Why does your bank want to know about how much you have in liquid assets? It is part of the approval formula mandated by the federal loan modification plan, HAMP. But in addition, banks consider homeowners who have substantial assets still available to them to NOT be in a financial hardship situation. Even if you are experiencing a reduction in income, if you still have money available to make your current mortgage payment then your lender will expect you to do so. When does your asset ratio prove that you are indeed facing a legitimate and eligible hardship situation?

The standard asset ratio guideline under the federal plan, HAMP, allows borrowers to have three times their monthly housing expense in liquid assets. So this means that if your house payment, monthly property taxes, homeowners insurance and any HOA dues equal $ 2000 for example, then you would be allowed to have $ 6000 in liquid assets to meet the ratio guideline. Basically your bank is looking to see that you have exhausted all of your other options before you ask them to give you a loan modification-something that will cost them money.

The federal guideline for asset ratio is followed by most lenders and investors, however some may have their own “overlay” which is allowed by the Treasury Department. Some investors cap the amount of liquid assets at a maximum of $ 5000 regardless of the monthly housing expense. The general idea is for homeowners to prove to their lender that they have no other options available to them and a loan modification is the best option for everyone concerned. This is accomplished by preparing and submitting your application so that it meets all 7 approval triggers, included the asset ratio. You can use a software program designed specifically for borrowers that will automatically calculate all of the ratios for you, and will help you to fine tune your own application so that you have the best chance of success.

March 31, 2014

Asset Loans, Debt Management and Debt Consolidation

Filed under: Debt — Tags: , , , , , , , — admin @ 12:46 pm

It is definitely not uncommon in today’s economic environment to need some assistance with your finances at one time or another and the sooner that you can get back on top and manage your debts the better

You may need to consolidate your debts into one loan to help you manage your finances and see the light at the end of the financial tunnel.Debt Consolidation – What Is It?

Debt can be a burden that you carry for a long time, and sometimes a lifetime. When you borrow money and then are finding it difficult to repay the allocated repayments to the creditors by the due date then you may need a debt consolidation loan to get you out of trouble.

You will be pleased to know that there are a number of ways that you can consolidate your debts. The general principle is to replace some, or all of your debt repayments, with one single repayment.Why Should I Consolidate Debt?

A debt consolidation loan may be the answer for you if you’re having problems meeting your minimum repayments on all of your debts. But in saying this, there are some things that you should take into consideration before you apply.

You really want to look for a loan that is provided at a lower interest rate than you have been previously paying. A debt consolidation loan is usually taken out to cover the total of all outstanding debt and you would usually refinance all of the high-interest debts to leave you with just one single payment.

We seem to manage debt better when we only have one payment because that one debt is the focus and you can dedicate any surplus funds to that debt to help reduce it as quickly as possible. This is where debt consolidation and one repayment amount can be advantageous.What do I need to consider before consolidating debt?

There are some strategies that you can adopt that can help reduce your debt before you decide to pursue a debt consolidation loan. Some of these include:

• Establish a budget and manage where income is being directed.

• Set a budget and live within your means.

• Establish a savings plan and stick to it.

• Ask for a Lower Interest Rate product from your financial institution or shop around at other institutions to see what is available.

• Look for deals on credit cards as some credit card providers offer no interest or low interest for a certain period of time on the balance being transferred when transferring from another financial institution.

• Learn how to manage debt more effectively so as not to get further into debt.

• Don’t take on any further debt until you have your current debt under control.

If, after considering all of your options, you decide that a debt consolidation loan is for you, then there are a few options available.Types of Debt Consolidation

• Low rate credit cards

• Unsecured personal loan

• Secured loan

• Home Equity Loans

• Debt Agreement

The main benefit of consolidation of debt is having a lower manageable payment over a longer payment term. You should be careful when choosing a loan to be sure that you are making a wise financial decision as this is an investment in your financial future.Asset Based Lending As An Option For Businesses?

If you are a business with cashflow problems, and are in need of cash to finance business growth, pay taxes, etc then you may like to consider an asset loan or asset based lending as your cashflow solution. Asset Loan Co Executive Diretor, Russell Percival said that “In the business market today, many businesses face obstacles and challenges that are unique. They often find that their own success is causing cashflow obstacles, and they then become a victim of their own success. Unfortunately, once they achieve optimum market penetration, and orders are self generating, they discover an even greater demand for capital and cashflow, and this is where substantial financial pressure gets placed on the business.”

You can make your assets work for you rather than finding yourself caught up in a cashflow hole. By using the existing assets of your business to provide working cashflow, businesses are now able to better finance their business operations and this can provide the freedom to grow over and above the constraints of their existing working capital. A lack of working capital can restrict the growth of businesses. If businesses are in need of an asset loan then the leader in the marketplace, Asset Loan Co can assist.

July 18, 2013

Debt Consolidation Mortgage Loan Company: An Asset If Chosen Wisely

Filed under: Debt — Tags: , , , , , , , , , , , — admin @ 12:47 am

Scores of people deep in debt resort to the services of a debt consolidation home mortgage loan company to free them selves of the burden of debt. Simply put, debt consolidation allows you to take out one loan to pay off many others. Debt consolidation companies offer these loans to you. These companies also offer various debt management plans to customers who seek a way out of debt. Nevertheless, it is of paramount importance to judge a company exhaustively before you plunge into a loan plan.
Here are a few pointers to note. A good debt consolidation mortgage refinance company will:
Thoroughly discuss your debt problems before offering you a debt management plan differ free debt consolidation help offer various loan options suiting your needs make readily available a company representative for help whenever you need one educate you in analyzing the pros and cons of various debt consolidation loan options not have any hidden charges
Here Are A Few Steps To Get You Started
Short list from companies having good references. Talk to your friends and acquaintances who have sorted out debt problems similar to yours. There is nothing to beat a feedback from a good experience. Use search engines on the internet to zero in on various loan companies. Select at least five to six companies according to their compare merits and demerits. Online debt consolidation can be a good option too. Ensure these companies give all contact details like location address, contact phone numbers, names of contact persons etc. Insist that the debt consolidation companys representative to meet you in person. Seek his credentials. If the debt consolidation mortgage loan company is located in or near your neighborhood, do not hesitate to make a visit in person. There is nothing to beat a first-hand look at the company office and a chance to interact with their financial consultants.
Make sure they offer free debt consolidation help. Ask for a free online quote from each of the companies you have short listed. This will allow you to make an in depth comparison statement. Inquire about the credentials of each of the debt consolidation mortgage loan company from a reputable rating agency, for example Better Business Bureau (BBB). Educate yourself on basic financial terminologies so that you can understand the company fine print better. Seek clarifications from company financial consultant if required. Conduct your own research. Internet is an excellent resource to provide you with numerous tips.
Finally, make a well informed decision when you select a company best suited to solve your debt problems. Tread carefully to avoid a bad debt consolidation loan. A good debt consolidation mortgage loan company may finally be a source of great relief to you.

July 2, 2013

An Overview of an Asset Based Mortgage

Filed under: Mortgage — Tags: , , , — admin @ 12:47 pm

Though most potential homeowners are most familiar with traditional mortgages where the property being purchased serves as collateral for the loan, this is not the only type of mortgage that is available. One alternative form of mortgage that you may qualify for is the asset-based mortgage; in these loans, the mortgage is not guaranteed by the property, which is being purchased but is instead secured by other assets, which the borrower provides. There are some advantages to choosing an asset based mortgage loan over a traditional mortgage, though this loan type comes with some restrictions as well. Here is a look at the basics of an asset based mortgage, so as to help you determine whether or not one of these loans is right for you.

Asset based mortgages can be very useful for individuals that have little or no credit as well as those who have bad credit. While in most cases these individuals may not be able to qualify for a traditional mortgage loan, the value of the assets that they offer for collateral should be enough to qualify them for an asset-based mortgage regardless of what their credit rating might be. This can be very useful for those who are trying to purchase their first house while still trying to start out financially. It is also useful for those who have run into financial problems in the past and anybody that is trying to reestablish their credit now that they have gotten back on their feet. Though credit is taken into account, for most asset based mortgage lenders it is not nearly as important as it would be for most other types of loans.

Another difference between asset based mortgages and other mortgage loans is that in many cases there is no down payment required when securing the loan. Though the borrower still has to pay a portion of the total cost of the property, the loan itself will not contain many of the same costs that taking out a traditional mortgage would entail. Though the availability of this specific feature of asset-based mortgages may vary from one lender to another, a number of lenders offer the no down payment feature as one of the attractions of this type of loan over mortgages that are more traditional. The fact that the collateral for the loan is worth more than the amount that is being borrowed and does not require the lender to find a buyer for the house or other property in order to make their money back greatly reduces the need for a down payment or other forms of payment when the loan is issued.

Unlike most mortgage loans, those which are based off of external assets may not have the same income requirements that are required by more traditional loans. Some individuals who take out an asset based mortgage will only apply a portion of the borrowed money toward the purchase of a house or other property itself, keeping anywhere from five to fifteen percent of the amount set aside to assist in repaying the loan itself. This can be especially useful when trying to guarantee that you will be able to afford the mortgage payments if you are worried about the possibility of layoff or may be moving to a new area where you might not be able to locate a job immediately. Though setting aside some of the borrowed money can mean that you may have to borrow more than you actually need, the buffer amount can help you to avoid a default and it should make the overall loan amount much easier to pay back.

Asset based mortgage loans do have their disadvantages, of course. In most cases these loans cannot be taken out for the full amount that you will need to purchase the property. Most asset-based mortgages can only be taken out for fifty percent of the property’s total value or less, though some lenders allow the loan to be for up to sixty-five percent or higher. This is because of the high value of homes and similar property, as well as the fact that those with little credit or who have had bad credit in the past are more likely to default on their loan payments than individuals who have established good credit.

Many asset-based mortgages are used in the purchase of homes and property that are going to be resold after restoration or that are being purchased at a discounted rate; the borrower in these cases is hoping to finalize the sale of the property before the loan is due in full. Though this can be risky since not all homes sell quickly, when it works it allows them to repay the loan easily while still making a sizeable profit off of the property in question.

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