When Is Bankruptcy the Answer?
Filing for bankruptcy becomes a viable option when an individual’s cash flow is “upside down” with no reversal in sight. But before proceeding, it’s important to first look at the structure of one’s assets and liabilities. For many homeowners, an experienced and qualified mortgage professional may be able to help them restructure debt and avoid bankruptcy altogether. If this isn’t possible, then it’s critical not to let negative cash flow go on for too long. Instead, quickly seek references for a reputable bankruptcy attorney and a credit counselor. One of the...
Read MoreUrban Legends & Internet Scams
Sorting Fact from Fiction Urban legends have been a part of popular culture for years. We’ve all heard suspicious stories that supposedly happened to a “friend of a friend” but which couldn’t be verified. Remember the story about Mikey, the Life® cereal spokes child, whose stomach allegedly exploded from mixing Pop Rocks and soda?* The Internet has added a new twist to the urban legend phenomenon by making these stories easy to spread to a large audience over a short amount of time. What’s worse, these stories are often distributed in the form of a plea for help...
Read MorePMI – Not All the Same
Private Mortgage Insurance or PMI is insurance to protect the lender in the event that a homeowner defaults and the lender is forced to foreclose. PMI comes in three flavors and, depending on loan type, can be paid upfront, monthly and/or financed into the home buyer’s interest rate or loan amount. Upfront PMI is insurance that is paid or financed along with the loan amount at the time of closing, depending on the loan program and its requirements. In some cases, the upfront PMI is also referred to as a Guarantee or Funding Fee, as in the case of loans guaranteed by the USDA Rural...
Read MoreChange Your Thinking, Not Your Oil
The rising cost of crude oil has everyone talking about gas prices at the pump, but what about the oil in your engine? A recent study in California indicated that 73% of Californians change their oil more frequently than recommended by the manufacturers. Are you spending too much on oil by changing it too often? So how often should you change your oil? We’ve all heard that a car’s oil needs to be changed every 3,000 miles, but did you know that many car manuals now actually recommend changing the oil every 5,000, 7,500, or even 10,000 miles? That means you may be changing your oil...
Read MoreTips for Preventing Water Damage
Each year one of the biggest homeowner property insurance claims is water damage – and this is not just in those areas of the country where flooding is common. Many times the water damage is actually caused by slow leaks from appliances and the house’s plumbing that simply go unnoticed until it’s too late. With this in mind, here are a few water maintenance tips that in the long run could save you thousands of dollars in repairs. Study your water bill – One of the easiest ways to detect water leaks is to pay close attention to your water bill.Major fluctuations in water usage...
Read MoreWhy Pay Private Mortgage Insurance (PMI)?
Private Mortgage Insurance (PMI) is required by most lenders when a borrower puts less than 20% down on a purchase loan. Paid for by the borrower, PMI not only protects the lender from foreclosure, it also enables many buyers to qualify for loans and purchase real estate when they couldn’t have otherwise. On January 1st, 2007, legislation went into effect making PMI tax deductible for new borrowers whose personal adjusted gross income is $100,000 or less. This has created additional opportunities for many buyers to finance a more expensive home or, in some cases, to obtain a lower...
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