Tag Archives: paying
What Can You Do As a Mortgage Lender If a Borrower Dies Before Paying
Mortgage lenders lend the money for making profit. They do not have any issues and they just wants to make profit. You can get the money back from the borrower if he is present. You might have to give the relaxation to the borrower to some extent. In this way you will be affected to the least extent only. However what will you do if the borrower dies before paying the mortgage? You might feel helpless in such cases.
However as a lender you will definitely be in dilemma that what you can do? Though, you will be quite happy to note that you have some options in such cases as well.
Suppose you feel that the borrower is not going to live for long then you can ask him to sign a deal with you. In that deal you will have to mention that the person whom the property is transferred after the death of the borrower will be responsible for paying back the mortgage. This is extremely important for you. You need to realize this fact.
Some times it does happen that the borrower becomes helpless as he goes into the coma due to some disease or injury. He is virtually handicapped and one cannot really ask him to pay back the mortgage. But as a lender you should have in your mind that this might happen in the future and hence you should get the deal prepared in the same way.
In such cases when the borrower is physically or mentally not in a position to talk about the mortgage, on his behalf a power of attorney is given to some relative. Hence you should make sure that in the POA it is also written that that person will be responsible for paying back the mortgage.
These are some of the ways. But you will realize that you need to help the borrower as well. That is why most of the lenders give some relaxation to those borrowers. If the amount is low then the lender usually discards such loans. Even if the lender finds that he can bear the loss then he usually discards the loan after the death of the borrower.
However sometimes the borrower is economically sound and the problem is just that he has died. In such cases the lender definitely goes for the justice and asks the new owner of the property to sign the deal.
Paul Chehade – Seeking Answers To Debt Consolidation Issues?
Paul Chehade – Seeking Answers To Debt Consolidation Issues?
Have you ever heard anyone discussing debt consolidation? There is a chance that you have, but its benefits may be unfamiliar to you. If you’re struggling with paying a large number of creditors, consolidating those debts might be a better situation for you. You have to select a great company, though. Read on to glean some useful insights into a strategy that has worked well for others.
Review your credit report before you decide on debt consolidation. The first step to fix your debt is to know where it came from. Therefore, determine your debt and the creditors you owe. In order to get your financial picture back on track, you will need to know how to distribute the money.
Do you own a life insurance policy? You should think about cashing your policy so you can pay your debt off. To learn how much cash you can obtain from your policy, talk to your insurance agent. In some cases, you get to borrow some of your policy investment in order to pay current debt.
Low fixed rates are something that you want to seek out with debt consolidation loans. This will help limit your stress and expenses during the process. Therefore, search for one-stop loans who offer great terms over the entire term, allowing you to be in a better financial place whenever you pay off the loan.
You may use a credit card with a low interest rate to consolidate smaller debts with higher rates of interest. You’ll save interest and have just one payment. Whenever your debts have been consolidated on a single card, you can then focus on paying this debt off prior to the expiration of this interest offer.
Look into exactly how the interest rate is determined. An interest rate that is fixed will help you budget your money and make your payments on time. This way you know the amount you will be paying for the duration of the loan. Variable rates are nothing but trouble. They may cause you to pay more interest overall than you would have paid without the program.
It is very important to do some background research on different debt consolidation companies before hiring a counselor to help you. When you do that, you can make a smarter decision, because you are more sure your finances are being taken care of by a reputable company.
When you go into a debt consolidation program, you need to understand how you got into financial problems and how to avoid them in the future. Then you’ll be less likely to turn around and do it all over again. Be honest with yourself about how this all happened.
Attempt to negotiate settlements with your creditors before choosing debt consolidation. Creditors often knock off a large percentage of the debt in order to receive a lump sum payment. Not only does this not hurt your credit score, it might even boost it!
Find out whether the people you are dealing with at a debt consolidation company are certified counselors. Check the NFCC for a listing of licensed credit counseling companies. Then you will know you are choosing the right firm.
If you need to eliminate debt and feel desperate, you might borrow from your own 401k. This lets you borrow money from you rather than getting from a regular bank. Be certain to get the details in advance, since it is a somewhat risky proposition.
You might get financial relief with debt consolidation, but you’ve got to do your research and choose smartly. Take the time to consider the pros and cons of every program, then use this information to decide what to do and what not to do. Learn more about debt consolidation so you can make an educated decision.
Paul Chehade
Solidary Foundation