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Car Loans After Bankruptcy - 3 Tips On Financing Your Car With Bad Credit
If you have recently filed bankruptcy, you may wonder if its possible to get auto financing again. There are more and more loan companies all the time that have new programs to help finance people with bad credit. An auto loan is easier to get financing ...
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For American students, the U.S. Government came up with a plan that can help a student manage their student loan debt. The plan they came up with is called a Federal Direct Consolidation Loan. It does not matter if you are a recent graduate student, well ...
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So if everyone is buying a home, and loans are easier to obtain than ever, what is the problem? The problem is that nearly 55% of the appraisers polled in the survey said that they had been pressured by lenders to deliver appraisals that met a “target” value. The appraisers said that failure to meet the “target” value resulted in either their not being paid, or not being hired again. Since most appraisers want to keep working, they have had a tendency to meet the target value, even if it means that they have overestimated the value of the property. This drives prices artificially higher and leaves many homeowners with mortgages that may be worth more than the homes they were meant to finance. This problem becomes acute should the owner need to sell the home, only to discover that it isn’t worth as much as he or she owes on it.
The worst-case scenario to result from this would be a burst in the current real estate “bubble” and a nationwide collapse in home values, leading to massive foreclosures. This probably will not happen, but there are several things prospective borrowers can do to avoid being caught in the
appraisal trap:
*Become educated about the appraisal and lending process. The more informed you are, the less likely you are to be caught in a scam.
*Be aware that refinancing your home isn’t a cure to all problems. It may seem appealing to use the equity in your home for such uses as debt consolidation but if the result of that is that you owe more on your home than it is worth, you probably haven’t gained anything.
*Be active in the appraisal process. Talk to the appraiser, and ask to see the finished appraisal, along with the data used to create it. Appraisals are based in part on the sales of similar properties in your area. Check them out yourself and compare the home you saw with the stated appraisal value.
*Be bold. Ask your lender if they pressure their appraisers to provide inflated values. You might not get an honest answer, but pay attention to how they respond. You might be able to determine if they are lying.
Ultimately, if you take out a home equity loan or a mortgage for more than your home is worth, you are the one that suffers. That can be easily avoided if you simply pay more attention to the process and educate yourself about the possible pitfalls. The last thing you want to lose is your home.
About the Author
©Copyright 2005 by Retro Marketing. Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including http://www.End-Your-Debt.com/ and http://www.HomeEquityHelp.net/
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Student Loans: The Real Numbers to Worry AboutHuffington PostNews stories about student loan debt have suddenly become as numerous as stories on the US economic recovery -- I counted over 20000 articles/blog posts for each in the past month. Why the firestorm of press coverage? First, there's the possible ...and more » |
Forbes |
Student Loans: Stupid Is As Stupid DoesForbesTwo, three, five sometimes even ten articles a day on the student loan crisis find their way into Google news and other feeds that I get on college-related topics. People have frequently asked me of late if I will write something on the student loan ...and more » |
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