Foreclosure Advice – What to Do If You Have Bad Credit, No Equity and No Money

The home foreclosure numbers continue to be frightening. According to the 12/9/09 MarketWatch article, Foreclosures could top 8 million: Credit Suisse, Credit Suisse forecasts that over 8 million mortgages (8.1 Million to be exact) will be in some form of foreclosure in the next four years. So, there seems to be no relief in sight — at least for a while.

And, when you couple this with the fact that many struggling homeowners have no savings to pull them through; no equity in their homes to tap; and bad credit that prevents them from getting any kind of loan — it leaves them in a financial pickle.

So, what exactly do you do when you have bad credit, no home equity and no savings? Here’s some concrete advice about how to get back on your financial feet.

Foreclosure Advice: Should You Even Try to Stay In Your Home?

Because foreclosure is an emotional, as well as a financial process, it can be hard to make sound decisions. But, in order to see your way out of this mess, you must somehow remove emotion from the process and consider the pros and cons of trying to hang onto your home.

Foreclosure Advice: When Foreclosure Is a Blessing in Disguise

For, “losing” your home can be the best thing that could happen — in the long run. It’s all in how you look at it. Consider this, if you don’t qualify for a mortgage modification; are under water and can’t refinance; and have bad credit, you may need to seriously consider letting your home go into foreclosure. Or, try to sell it in a short sell or do a deed in lieu of foreclosure.

Without this financial albatross around your neck, you will be able to start over. With a lesson learned, you will hopefully make better decisions moving forward.

Foreclosure Advice for Those Who Want to Keep Their Home

If you have scarred credit, no equity and no money then your best bet is a mortgage modification. Why? Because your lender is the party with the most to lose if you walk away from your home. And, with bad credit, no other institution is going to give you a loan — so that’s out of the question.

If you have no savings, you can’t dig yourself out of a hole, ie, paying arrears or buying something cheaper.
And, with no home equity, you can’t refinance — so that’s not an option.

So again, your only true option is to try to work something out with your existing mortgage holder. There are government programs set up to help homeowners stop foreclosure. But again, if you find that you are ineligible, your best option is to hound your existing lender into giving you a mortgage modification, etc.

The best piece of foreclosure advice is probably this: The only way to get out from under a difficult situation like home foreclosure is to face facts. The sooner you do, the sooner you can make some concrete decisions and move on with your life.

Getting a Divorce and Splitting Your Home – Advice From Divorce Lawyers

Spouses who are getting a divorce often approach the division of their home and property in a nonchalant manner. This is odd because such assets often represent the largest accumulation of shared wealth and liability between spouses. The value of the home and the size of the existing mortgage should be treated carefully under the guidance of experienced divorce attorneys. In this article, I’ll explain how the situation in which one person keeps the home should be treated. I’ll also provide some tips for selling and refinancing the house when going through a divorce.

When A Spouse Keeps The House

When one spouse is keeping the home, it’s important to remove the other spouse from the title in order to eliminate that partner’s financial obligation. There are very few cases in which keeping both partners on the title makes sense. Ideally, the spouses’ divorce attorneys will work toward an agreement whereby a date is established by when one partner’s name is removed. The agreement should also detail the deadline and manner in which the departing partner’s equity will be bought out.

Selling Advice From Divorce Attorneys

Often, the most appropriate way to handle a house in which both partners share ownership is to sell it and divide the proceeds. Fortunately, it’s usually a simple matter of listing the house and selling it. However, if one partner fails to act, it can lead to major problems. Many divorce attorneys will recommend that one partner be responsible for listing, showing, and selling the house. If that partner fails to do so, the other partner may be forced to continue contributing to the mortgage and ongoing maintenance of the home, causing frustration and financial stress.

Divorce lawyers often suggest attaching a detailed timeline that details the date by which the house must be sold. It should also include a clause that describes what happens if the timeline is not met.

When Financing Is Difficult

A common problem occurs when one partner leaves possession of the shared home to the other partner with the understanding that the home will be refinanced. If the partner to whom the home is left refinances quickly and thereby removes the other partner from the title, there is no issue. However, if the spouse who stays in the home does not refinance, it can prevent the departing spouse from getting a loan to purchase a new house. This is the main reason why divorce lawyers strongly urge divorcing couples to include a timetable for certain actions to be taken regarding the sale or refinancing of a home.

Steps Recommended By Divorce Attorneys

If the divorcing spouses agree that one partner will retain ownership of the house, there are specific steps they should take to minimize problems later. First, a new deed should be drafted that stipulates the transfer of ownership and title. Second, both spouses should work with their divorce attorneys to determine a mutually agreeable timetable by which the departing spouse’s equity will be bought by the remaining spouse. Provisions should be included that detail what actions must be taken if the timetable is not met.

Third, the partner who will keep the home should apply for a new mortgage. Once the loan is awarded, the departing spouse’s equity should be bought out. Alternatively, plans for repaying the equity over time should be established.

Legal Advice From Divorce Attorneys

Because a couple’s house typically represents their largest investment, asset, and liability, its division should be handled carefully. Too often, divorcing spouses neglect to devote adequate attention to matters of home ownership, title transfer, and equity. As a result, major financial problems can occur down the road. If you’re currently going through a divorce and are considering your options regarding a shared home, you and your partner should consult your divorce attorneys for advice. Their experience and guidance can be invaluable in helping you avoid significant problems later.

Home Business Advice to Keep in Mind

A home-based business can be an excellent experience. You can work in the comfort of your own home, spend less time traveling to work, and it’s just simply convenient. Although all that is true, there are a few disadvantages. It is sometimes difficult to stay focused at home as there are many interruptions that you may have to deal with.

In order to avoid the distractions of the outside world and the Internet, you should look into creating the perfect home business environment. The ideal environment is very important in order to work from home efficiently.

Below is a bit of advice on what you should do in order to improve your work environment. Of course, everyone is different, so feel free to change the tips below as you please to meet your needs. When it is all said and done, you should make certain you set up the work environment that will help you avoid distractions and lead you to good results.

Tip #1: Play Music: This is definitely your own personal preference. There are some people who require total silence in order to function, so you may disregard this tip if that sounds like you. Music, typically instrumental without lyrics, can make you work more effectively and can help block out additional sounds that most would find distracting.

Though if you listen to music and still do not work well, try complete silence. Surprisingly, an increasing number of people find that the constant sound of white noise helps them the most out of all of these options.

Tip #2: Purchase a High Quality Desk and Chair: Buying a comfortable chair and a good quality desk is extremely important if you are devoting many hours each day to working from home.

A great computer chair is one of the best purchases you can make, especially since a well-made chair is much better for the health of your back and joints. A quality desk will also help you feel like you are in a workplace environment which will help you get into the working mode.

Tip #3: Isolate Yourself from Outside Noises: If noises and people distract you, make an effort to go with a quiet part of your home to work. If your computer is in a busy room with a lot of foot traffic, then you will not be as efficient as you could be when working in a quiet area. If you can, attempt to set up your office anywhere you want that’s not busy or distracting.

Tip #4: Have Foods and Drinks By Your Desk: If you are working from home, then you know that one benefit is being able to drink and eat whenever you want. Rather than get up out of your work area to go to the kitchen, keep a few snacks and drinks by your desk in order to save time. Visiting the kitchen could also lead you to many distractions like talking with someone or cleaning.

Tip #5: Schedule Your Workload: Be sure you have a good amount of time to operate. Do not sit back and put together five blog posts if you need to do another task in ten minutes. If you would like manage your own home-based business then you need to devote many hours exactly like you would on the job, sometimes even more than average.

The tips above are extremely simple; however they have considerably affected the performance of most people who run their own business. These suggestions will help you work much faster and more efficiently, which means you will get a lot more done and make more profits.

By Clifford Woods