WHY YOU NEED TO AVOID FORECLOSURE

All three of our daughters have had their close encounters with the foreclosure fiasco. All of them have been threatened and one of them even got to the point where she had to buy her home back. We did our best to help all of them but with us being in foreclosure ourselves we simply did not have the extra funds to do anything of any significance. What I did do was plead with them to not let their home go into foreclosure.

One of our daughters has a home that, in a normal market, would be worth about $60,000. Her loan on that home is just over $100,000. I even told her to do whatever she could to keep her home. She ended up being successful and is still paying on that over borrowed estate.

There are reasons I told my daughters to keep their home whatever they did. My reasons are realistic though; they have little to do with defaults, rates, loans and so on. I tried to give them what I thought was the most practical argument for hanging onto your home during this time of rampant foreclosure.

5) SHAME: Simple shame. Could you hold your head up at work, at church, with your friends, even within your own family? How do people look at foreclosure? I can tell you from personal experience, they do not find anything positive in foreclosure whatsoever. It doesn’t matter the reasons for being foreclosed upon; you have defaulted and you are the bad guy. I told them to hang onto their home as long as they could simply to avoid the derision and ridicule their peers would cast their way.

4) SECURITY: They need a home. They have one now they are familiar with and they should try to stay in it. The loan is there and they need to try to pay it however they must. Two of the three daughters have children and it would be best for everyone concerned for them to keep their children in the home they were born into.

3) FUTURES: Should they need to trade up at any time in the future or if they would like any other kind of major purchase further down the line, their performance on the home mortgage will be very important. Once a home loan goes bad, it will negatively affect the credit report for at least three years. I know, again, from personal experience that you cannot get another mortgage for at least three years after entering foreclosure. Not in Michigan anyway.

2) INVESTMENT: Don’t lose your investment. Every one of the girls has put a good share of their own funds, sweat and toil into their homes. They will get absolutely nothing for that investment. It doesn’t matter if your home is three quarters paid for; if you cannot manage the final one-quarter you lose everything. I just told the to protect their investment.

1) SELFISH: Don’t give any one of those predators out there the opportunity to capitalize on your hard spent time, money and efforts. There are numbers of agents, brokers, Realtors, self-proclaimed investors and others who are just waiting on the sidelines to take advantage of your pain and misfortune. They want to swoop in and buy your home right out from under you. Do not give them the satisfaction of being able to purchase your property at a fraction of the real value.

During my research I must have went to a dozen Internet sites to try to find the rate of foreclosures in certain area. All I could find is how that rate has increased, not what the total rate really is today. What I did run across, in every single search, were separate adds headlined like “Make money on foreclosures”, or “Profit from Foreclosure” and even one that read; “They lost it, you can find it.”

There is more attention paid to how someone can make money off my misfortune in losing my home than there is in how we can help the poor sap who just lost his home, through no fault of his own. If we think the government should be ashamed of how they handled the Katrina nightmare, this one should leave them red-faced forever. This is as bad as the insurance companies telling Katrina victims “You didn’t have flood insurance.”

If at all possible, keep your home; do not let foreclosure line the bloodsucker’s pockets with your gold.

Read More..

RUMORS ARE BAD WHEN IT COMES TO HOME INSURANCE

People like to spear rumors they invent. This is a commonly known fact. Sometimes it gets to the point that rumors turn into myths that haunt people and get stuck in their head for ages. In order to get rid of these untrue myths one has to dig deeper into situation and try to find the truth. But we don't think we need this. It is easier to believe what others say and what we hear around. Here in this article we will discuss the most famous and commonly- spread rumors on insurances related to homes.

They say that the standard home insurance will cover the damages your house will suffer after the flood. This is an absolute nonsense. This doesn't have any ground underneath it because the flood damage is never covered under the standard insurance plan. When you feel the necessity to cover yourself from the flood damage, you get additional coverage.



Homeowners insurance plan with its medical payment part will pay for the injuries me and my family will suffer.

This is not true. The Medical payment portion of the insurance is meant to protect you in the case when someone other than you or any members of your family gets hurt on your property and they don't want to take you to court. If it is you or some family member that gets hurt there, the insurance company or the coverage doesn't protect you from anything.

There is a myth that the company will reimburse anything you tell them you lost if this occurs. This is a fairy-tale to believe in and it is not true. What will happen is the company will tell you to make a list of what you owned at the moment of the loss, but they will make you do it very precisely. They will need pictures of your belongings to make sure you owner those things. So you need to have photos taken of everything you have in your house in case anything like this ever happens to you.

People think that when they file a claim, it raises their premiums. But people don't always consider that claims are not the only things that matter. It doesn't always happen so that the premium goes up. Sometimes it takes years. You should always take your deductible into consideration. Also try to find out if there are any discounts that you can apply for. Maybe you get lucky.

Jewelry and furs have limitations. There is a particular sum that they company will give you to reimburse those things in case of burglary. If you own too many of those, please get additional coverage.

Sometimes we think that if we live in a non-flood zone, we can't have flood ever happening. It can happen to anyone just like earthquakes that can't be predicted. Flood insurance generally is a nice idea that most home owners should go for.

We think that we are obliged to get some insurance plan when in reality we are not. Nobody forces us to make certain steps. They are totally up to us. Another thing is that it would be wiser to make them in order to avoid some unpleasant and unwanted trouble later.

You should get yourself insured so that you know it and feel protected. Cheap home insurance can be found by those who want to look up and find it. But don't rush into it. Cheap home insurance plans can be tricky so watch out and don't listen to gossip on the street. Figure out for yourself. This is the only truth there is.

Read More..