Posts Tagged ‘foreclosure’

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4 Tips for Returning to Renting After Foreclosure

Saturday, December 13th, 2008

You’re probably pretty upset right now after the foreclosure process and losing your home. That’s definitely understandable as a home foreclosure is a pretty difficult experience. So let’s make it a little easier on you to transition back to renting. The following are a few tips to remember when getting back into the rental market.

Get Your Paperwork Together. Paperwork may include pay stubs, the rental application (if it’s available to download online), references from colleagues and past landlords, and your credit report. This last one may be a sore point for you, but there are some landlords that now offer leniency around credit issues for someone who’s just been foreclosed upon.

Damages and Repairs. Be thorough in your walk-through of the home. Make sure that any existing issues are noted in your agreement if not fixed before your move in to the apartment.

Negotiate! The American Bar Association reminds you that you can negotiate your lease. Just because the contract looks legal and full-proof doesn’t mean that you can’t have clauses removed and others added.

Buy Renter’s Insurance. Renter’s insurance is possibly one of the cheapest kinds of insurances to buy, and it can offer a lot of peace of mind. According to Nolo, a small investment of $350 a year in renter’s insurance can give you protection of up to $50,000 of your property and assets.

Hopefully, these tips can help you feel more comfortable in your transition. Feel free to leave a question or comment below if you’d like more info.

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Posted in Featured, Housing, Renting, Transition | 1 Comment »

3 Foreclosure Warning Signs

Saturday, December 13th, 2008

The Mortgage Bankers Association predicts that by the end of 2008, 2.2 million foreclosures could be in process. If you’re not sure if you’re at risk for a foreclosure, read below to learn some of the key financial signs that you may be facing a foreclosure.

Maxed Out Credit Cards. If you’re spending up to your limits on your credit cards, you may be headed towards financial trouble. Consider trimming spending and paying with debit cards or checks that draw from your bank account. Be sure to not apply for more credit cards as well. Credit card rates can get you caught in a cycle of ever mounting fees. If you’re using them for everyday expenditures, then you’re probably going to have to sit down and make some hard choices soon.

Loss of Job or Work Hours. Over the past year, job losses in Florida alone were at 156,200. If a job loss or reduction of work hours is about to happen, you may want to proactively make adjustments to your finances and mortgage payment schedule. Getting in touch with your lending institution to plan and safeguard against foreclosure can be the difference between keeping and losing your home in case work hours don’t increase or you don’t find a job quickly enough.

Major Illness. No one can ever plan for a major illness, but if the future appears to involve lots of medical bills, acting early to make financial adjusts can be essential to protecting your home.

Remember that talking things through with your lender should be a top priority if any of these signs are occurring in your life. Debt counselors and housing advisors can also help you find ways to protect against foreclosure.

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Posted in Finances, Housing, Lending | No Comments »

Mortgage Bankers Association Reports Record Foreclosures

Saturday, December 13th, 2008

Mortgage Bankers Association Reports Record Foreclosures

Mortgage Bankers Association Reports Record Foreclosures

With delinquencies on payments rising, the Mortgage Bankers Association’s (MBA) report “Delinquencies Increase, Foreclosure Starts Flat in Latest MBA National Delinquency Survey” announced the highest level of delinquencies and foreclosures in the organization’s history of recording those statistics. Here’s what Jay Brinkmann, MBA’s Chief Economist and Senior Vice President for Research and Economics had to say: “While 20 states showed declines in the rate of foreclosure starts between the second and third quarters, every state showed an increase in the 90 days or more delinquent category with the exception of Alaska and all of the increases were greater than what we would expect due to normal seasonal factors.”

States hit hardest by foreclosures include: Nevada, Florida, Arizona, California, Michigan, Rhode Island, Illinois, Indiana, and Ohio. Florida and California’s markets in particular hold the lion’s share of prime and sub-prime adjustable rate mortgages (ARMs) that are going in to foreclosure. The MBA report suggests that until those two markets stabilize the rest of the markets will continue to be unstable.

Concerns about continued foreclosures remain high as job losses further weaken the economy. California lost over 100,000 jobs in this past year according to MBA. Many people will have to return to renting in the wake of foreclosure. It will be interesting to watch how the rental market adjusts and absorbs former homeowners.

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Posted in Housing, Lending | No Comments »

Rebuilding Credit After a Home Foreclosure

Friday, December 12th, 2008

A foreclosed home can hit your credit score pretty hard. To get started rebuilding your credit, it’s time to order your free credit report at annualcreditreport.com, through which the three major credit reporting organizations provide their services. The Federal Trade Commission (FTC) warns that only annualcreditreport.com is authorized to give you a free annual credit report, and you can read more about that at this link.

Once you have that information, you can see where you stand, and you can rebuild your credit by following these tips:

Building a Budget. This may be something that you already do, but if it’s not, now’s a great time to sit down and chart out where your money goes each month. That will help you to know when you can splurge and when you need to save. Given the current economy, saving is probably your better option to protect against unforeseen financial needs.

Pay All Creditors Promptly. Prompt payment of any and all bills is essential to rebuilding credit. If you’re having trouble paying bills, then contact your debtors to work out payment plans that you can handle. If that isn’t an option, you may want to talk with a credit counseling advisor, or you may consider a debt management program.

Keep a Few Credit Cards. You may feel like getting rid of all your credit cards, but be sure to keep a few. Having some credit cards that you pay regularly and completely each month helps put your credit back in good standing.

It’s not easy to get past a foreclosure, but over time, your credit can get back to where it should be. Most things stay in your credit report for seven years, but with careful money management, you may earn a good credit score before then.

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Posted in Credit, Housing | No Comments »

How to Avoid a Foreclosure

Friday, December 12th, 2008

According to recent foreclosure statistics from the Mortgage Bankers Association, there are 1.35 million homes in foreclosure at the time of this post. Furthermore, borrowers who are behind on their payments have reached a historic high of 6.99%. If you’re one of those buyers, you may be afraid that you’ll soon face foreclosure on your home. Here are a few tips that can help you stay a step ahead of foreclosure and safeguard your most valuable asset.

Call Your Lender. You may feel bad about being behind on your payments, but remember that your lender is here to help.

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