How Important is Your Credit Score

At the present time, people have become dependent on credit. Almost everybody have their share of credit in varying amounts. In this article, we will explore the credit score or rating, its importance, and the factors that will affect its value. 

 

When you use a credit, you are borrowing money with a promise that you will pay it back within the agreed time. It is the same as acquiring a home loan wherein you borrow money from the bank to finance the purchase of your new home. Credit bureaus will determine your score based on different factors, namely; payment history, overall credit over amount borrowed, length of credit history, new credits, and types of credit. A good credit rating is important because when you apply for a home mortgage, credit card, or even phone hookup, your credit score is checked. The higher the credit score, the more chances of getting a successful application.

 

One of the factors that greatly affect your credit score is foreclosure. It is the result of missing payments on your home mortgage allowing the bank to repossess your home. How bad will foreclosure affects your credit score? There is no definite answer to this. It will depend on different situations. For example, at the time that you have undergone foreclosure, the amount due is only 20% of the total amount owed, the impact is less when compared to the amount due which is 50% over the total amount owed. The number of late payments that precedes foreclosure will also have a different impact on your credit score.

 

Fortunately, there is much you can do to avoid foreclosure and save your credit score. When facing foreclosure, you can apply for loan modification, undergo short sale, or even sell your home. Although the latter options will lead you to losing your home, without foreclosure on your credit report you can easily apply for a second mortgage.

 

Sell your home to Lucas Properties LLC; a private property investor that has been in the industry for quite some time and has helped many owners with distressed properties.

Distressed Property Solutions

What is a distressed property? In real estate, it is often described as a property which is under foreclosure or a property that is in poor physical condition because the owner is in difficult financial situation.

 

If you are one of the unfortunate owners who has a distressed property, chances are you are not alone and you have options. It is important for any owners who are facing foreclosure to think that there is always a way out of difficult situation. You only have to search for the solutions. You can search for solutions the old fashion way, which means you talk to family members and friends. Oftentimes, they offer good advices or referrals that can help you out. In today’s technology, finding a solution is easier and faster than you might think. With a few Internet searches, you will realize that you will have several options. Let us take a look at your options below.

 

·         If your financial difficulty is temporary and you just have recovered, the easiest way for you is to reinstate your loan. This means that you will have to pay your lender the total amount due prior to the foreclosure notice.

·         Move to a place which requires low maintenance and convert the property into a rental property. The income can be used to pay your mortgage. This option requires the owner to decide carefully as the issues that may arise with a rental property as well as the rent may not be worth the risk.

·         You can short sale your property. Short sale allows the owner to prevent foreclosure and save some of his credit score. The impact of a short sale is less damaging when compared to foreclosure.

·         Sell the property. This option allows the owner to keep his credit rating intact and he might be able to earn some of the equity.

 

These processes involved complicated processes except for reinstatement. For an owner who is already facing possible foreclosure, the solution need not be more difficult. Lucas Properties LLC, a private property investor, has been in the industry for many years and they specialize in distressed property solutions. Whether you want to sell your home quickly to stop foreclosure or you need help in short sale, Lucas Properties is there to help you.

Distressed Properties: Options for Distressed Seller

A distressed property, in real estate terminology, means that a property is under foreclosure and is up for sale by the mortgagee. Characteristics of distressed property are oftentimes having a negative impact on the fair market value of the property. It is being sold by land owner to avoid foreclosure and at the same time to try and cut the financial loses.

If you are one of the land owners with distressed property, know that you are not alone. It is a sad fact that facing foreclosure is an overwhelming experience, but there are several options for distressed sellers other than foreclosure. If you missed payments for temporary reasons that have been remedied, you have the option to reinstate the mortgage. Reinstatement is the easiest way to avoid foreclosure as it does not need the mortgagor or lender’s approval. You can simply ask the total amount, which includes missed payments, late fees and legal fees, owed to date and pay for it. Once the delinquent amount is paid in full, the mortgage is reinstated.

Another option to consider is forbearance or re-payment plan. The good thing with re-payment plan is it allows the owner to pay the delinquent amount over time; however, owner is required to submit a financial documentation proving that he will be able to comply with the terms of repayment plan. In forbearance, lender will add the missed payments on top of the regular loan amortization for a period of time, for example, 12 months. Once the owner completes the 12^th payment, the mortgage will go back to its regular amount.

In the event that the land owner can’t qualify for the two options mentioned earlier, he has the option to sell his land via short sale. This process involves putting the land on the market and the owner must have financial hardship to qualify. In this case, financial hardship is no longer in question. It is just a matter of presenting the necessary documents as proofs of financial hardship. Short sale allows the owner to salvage his credit score and keep the foreclosure off his record. While short sale seems straightforward, it is a complicated process and needs the expertise of experienced professionals. To keep yourself free from stress over short sale, you can sell your land to Lucas Properties LLC. Lucas Properties provides cash for distressed properties minus the hassle of traditional selling process.