Aaa Precept
In talking with many homeowners in Chapter 13 bankruptcy that I found the following myths or mistakes most common during my research. So I wanted to share this information because I think it is very frustrating that even today with so much information available Free, the owners of the bankruptcy are still blinded by these mistakes. Please read these common mistakes if you avoid, you are insured save thousands of dollars to clean up your credit and get a fresh start! I urge you not to make those mistakes.
Without # 1: does not recognize that your home is an asset that can be used as a financial tool - which can be used to reduce overhead costs (eg Pay off your Chapter 13 bankruptcy), save thousands of dollars in interest and fees associated with bankruptcy (for example, your monthly fee administrator maintenance) and obtain financial security.
Several times a week I meet with owners in a recent Chapter 13 bankruptcy. I often say that they are reluctant to consider borrowing against your home because they want to "save" their capital. They want not risk their retirement savings in the form of shares increased refinancing. But they do not understand the real risk.
While providing an important point, I prefer to step back and look at the real risks. In the vacuum, it makes no sense to say something like "I do not want to increase the size of my mortgage. "
After all, if you refinance mortgages and pay debts in bankruptcy, we are creating not more debt, although their mortgage balance increases. We are simply restructuring of bad debts in bankruptcy "of pay the mortgage debt good.
Thus, at the end of the day, the client still has more or less the same amount before the restructuring, but now is in the form of loans and mortgage payments are less ... and often tax deductible, unlike your payments bankruptcy. (See your tax advisor!).
Is not it more important that a means of increasing the scary to think a mortgage?
So what is the real risk? Usually, Chapter 13 owners have very little savings and large debts.
Let me tell you ask - What would happen if I stop working due to injury or illness? They did nothing to save for college their children? Or have you thought about your retirement plan?
If you have little or no savings, retirement plan is doomed to failure! Will you work to die if they do something to grow your wealth faster! "Sometimes the risk of not doing nothing surpasses all other risks.
Error # 2: Thinking your credit is so poor that you can not avoid.
Many customers come into my office with head down and tail between his legs, hoping that you can not avoid. Sometimes I went to another mortgage broker or bank, had withdrawn his credit and said it is too low to do something. Who are depressed. They are wrong! I can help you!
It is generally accepted that good credit starts around 680. Often customers to Chapter 13 have scores in the low to mid 500. But do not worry! Let me explain why.
If you work with a qualified mortgage consultant, you will find that you may be able to achieve their goals despite their Sub-prime score. Because in situations like yours, history Pay your mortgage and / or payments from its Chapter 13 is a more critical factor in determining what you qualify. And if you can get a program that reduces the amount of hundreds or thousands of dollars what is most important. This can happen even with a low credit score!
Today, there more choices than ever on programs like the famous FHA loan program, backed by a government loan for people with bankruptcy or credit default.
The conclusion is, if you must weigh the risk do nothing to refinance, statistics show that 9 of 10 times refinancing is much better than doing nothing.
Marlon Baugh is a nationally-known mortgage expert. Since 2003, he has specialized in mortgage loans for people with Bankruptcies, Foreclosure or with other credit issues, as well as Commercial Mortgages. If you would like a Free Copy or to get instant access to the remainder of this Chapter 13 Bankruptcy Insider Mortgage Report, please visit http://www.saveonloansnow.com or Call 954-678-5796
