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How credit card settlement can help you in paying off real estate debt

Strom Thurman — Wed, 06 Apr 2011 13:20:59 +0000

In credit card debt settlement, the outstanding debt amount gets lowered. You are required to pay only the reduced amount and the creditor is not supposed to come after you for the settled part. So, in a way this saves you money. You can then use this money for fulfilling your other financial obligations for example real estate debt payment.
How is credit card settlement done?
If you want to settle your credit card debt, you will have to talk to your creditors. You need to negotiate with them so that they agree to settle your debts. You may have to show proof that you are having financial problems and thus it is becoming impossible for you to go on making the on-time payments. You can negotiate credit card settlement both with the creditors and collection agencies. However, not all creditors and collection agencies agree to settlement and for that you may have to miss payments on your credit card accounts.
Now, here comes in one of the disadvantages of credit card settlement. It hurts your credit score. When you miss payments, it gets listed on your credit report and thus hurts your credit. Another negative thing about settlement is that you may have to pay tax on the settled amount. The settled part is considered to be your income and you are supposed to pay tax on your income.
But, this does not matter much if you are in real financial problem and if you really are in need of money. Debt settlement generally reduces the debt amount by 40-60%. However, this settlement percentage varies from creditor to creditor. While one creditor may agree to settle the debt amount by 40%, another may agree to lower the debt amount by 60% or maybe 50%. Some creditors even agree to only 20% reduction of the credit card debt.
Another thing that you should remember in case of settlements is that it is really important for you to get a written settlement agreement. You can also get the help of a settlement company.
The money that you are able to save from settlement can be used to pay off your real estate debt. It is like saving money from one to pay off another. You are not even required to borrow extra money to pay off your real estate debt. It is better to avoid defaulting on your mortgage or else you may have to lose your home to your lender. When you take out a home loan, you agree to make the payments on the loan as per the terms and conditions of the mortgage. If you fail to do so, the lender can take away your home and sell it off to get back his money.
Contributed by Debt community Member.

1st time home buyers led the way in 2010.

Strom Thurman — Fri, 07 Jan 2011 05:36:09 +0000

Read the story about how and why 1st time buyers led the real estate market in 2010 on my Mortgage Blog. Click Here!

Happy New Years!

Strom Thurman — Thu, 30 Dec 2010 20:08:10 +0000

The tradition of the New Year’s Resolutions goes way back to 153 B.C. Janus, a mythical king of early Rome was placed at the head of the calendar and with two faces, Janus could look back on the past and forward to the future. Many looked back and sought forgiveness and peace with their enemies and forward exchanging gifts ushering in a better year to come.

Looking back on the real estate market of 2010, many are say wow what a year and, I’m glad it’s finally over! Looking forward we are wondering what can we do to make 2011 a better year than the last. Below are a few suggestions for both home buyers and home sellers.

For those considering buying a home in 2011, here are a few things to resolve:

1. I will get my credit score above 740. Pull a copy of your credit report and look for ways to pull that score up.
a. Pay down your credit cards. Work on the ones that are closest to their limits and get them to down to about 30% of the limits.
b. Dust off an old credit card that you haven’t used in a while and begin to use it sparingly. Old credit history is good, but your old credit card company may no longer be reporting to the credit bureaus.
c. For more ideas, go to my mortgage blog, stromsmortgageblog.com

2. I will put away enough money for a down payment and reserves.
a. You will need at a minimum 3½ % to 5% of the purchase price to use as a down payment.
b. You will also need an additional amount of money in reserves to satisfy lender guidelines on conventional loans. Typically 2 to 6 months of reserves are required and these can be in the form of cash in checking or savings, stocks, bonds, retirement accounts etc. With FHA loans no reserves are required for single family properties

Here are a few things for Home Owners:

1. I will check my credit and make sure my score stays as high as possible. Just like with a home buyer, credit scores are important. Insurance premiums and even employers use your credit score to determine eligibility and risk.

2. I will do a better job of maintaining my property.
a. Set up a maintenance plan. Fix the things that need fixed, before they turn into larger problems. A small roof leak or gutter problem can lead to expensive repairs
b. Get a property inspection. Most people have a property inspection when they purchase a home, but why not have another if you have owned for a few years? An inspector can help you set up a plan to tackle those items that may be lurking below the surface.

3. I will sell my house this year.
a. If you are planning to relocate, buy up or scale down, there are of course several things to consider but first, get your house ready to sell by doing the maintenance and sprucing it up. As agents, we love to share our expertise on what’s in and what’s out as far as preparing a home for sale.
b. Get an expert opinion of your homes value and set the price accordingly. In today’s market like any other, it doesn’t matter to a buyer what you owe or how much you need to walk away with. It matters only what the value is to the market, and that market is the buyer.
c. Hire an agent who knows the area and has all the tools in his bag to get the home sold. If you are selling a home in the North Atlanta area and northern suburbs, remember, I am for hire!

Here’s to a happy and prosperous 2011!

Home ownership is attainable!

Strom Thurman — Fri, 22 Oct 2010 13:14:53 +0000

With all of the bad news out there about the housing market, there is some really good news as well! Nearly 2/3 of Americans can purchase a home. Now that’s a little different than hearing 1/3 of Americans can’t purchase a home.

Yes the qualifications that buyers have to meet to obtain financing have gotten much stricter but purchase money is still flowing. Programs from FHA, VA and even conventional funding still allow for very low down payments and interest rates are still historically low.

In the Metro Atlanta and surrounding areas there are more properties for sale, at discount prices, than you can shake a stick at. It’s all on sale folks but it’s just like any other sale, the early birds get the pick of the merchandise. So, get qualified and get ready to shop!