Tag Archives: USA

Bi-weekly Mortgages Versus Mortgage Accelerators

Bi-weekly mortgages are a good way of saving money on a home mortgage, but a mortgage accelerator is far more effective. Mortgage accelerator systems save far more money than bi-weekly systems.

Every month, most of your mortgage payment goes toward interest, and only a very small amount goes toward reducing the principal. If you could do something that would cause less of that monthly payment to go toward interest, more of it would go toward principal! Is this possible? YES!

How? Use a mortgage accelerator! It’s a method that makes more of your monthly payment go toward principal. If you think this means making bi-weekly mortgage payments, you’re wrong. Real mortgage accelerators don’t change your regular monthly payment but more of it goes toward principal, and less to interest. Basically, you’re earning money on your own mortgage!

Mortgage accelerators are misunderstood but don’t be put off. Not only do they work, but also, using one can cut the time it takes to pay off a 30 year loan to just 10 years, and save you hundreds of thousands of dollars. Banks naturally don’t want you to know this and how much better it is than a bi-weekly mortgage. Actually, bi-weekly mortgages only save about 5 years.

The best mortgage accelerators use the “Australian method”, so-named because it was first used in Australia in the mid 1990’s. Since then, many people in countries around the world have used it with great success. Still, in the USA, it is not well-known. But don’t be put off because it really works and can save the average homeowner a fortune in mortgage interest.

There are several companies selling mortgage accelerators, and some of them charge thousands of dollars. Still, they are all based on the Australian model and so all will work, so you don’t have to spend more than a few hundred dollars.

One of the best values is the Mortgage Magic System.
The Mortgage Magic System lets you use the bank’s money to your own advantage.

Using this System, you will owe less money to the bank each month, and more of your monthly payment will go toward paying down your loan – in effect, making money on your mortgage.

Here’s how it works: you are going to use your regular income to offset your mortgage loan by having your income reduce your mortgage balance. For every dollar of income, you will owe a dollar less on your mortgage.

By using your regular income to offset your mortgage balance, you owe less on your loan. As a result, you owe less interest for the period! But you also need your income to pay bills and pay for my daily needs. No problem, because you have access to it anytime you need it to pay your bills.

If you’re excited about a system that is so much better than bi-weekly mortgages,there’s more. You see, if you can pay off your largest debt (your mortgage) in about 10 years, you’ll have all those extra years where your monthly discretionary income will increase by thousands of dollars each month. You’ll be able to quickly grow your retirement savings over those years, instead of paying all that money to the bank each month!

You think this sounds too good to be true, but it’s not, and there’s absolutely no risk of using a mortgage accelerator. So, if you want to save money on your mortgage with a bi-weekly mortgage system, use a mortgage accelerator instead.

On The New Mortgage Law Of Turkey

Since the new Turkish mortgage law passed on March 2007, the mortgage and real estate markets have continued their growing trends that are mainly driven by lower interest rates; however, this growth is probably just the tip of the iceberg.

The Turkish mortgage law that passed on March 2007 has two important properties that are expected to boom the mortgage and real estate markets in Turkey:

1) New mortgage products :
With the inclusion of the adjustable rate mortgage products, banks are able to transfer some of the economy related risks in their balance sheets to borrowers. In adjustable rate mortgage products, the interest rate is a sum of a fixed margin that is determined by the lender and a benchmark index that is set by Central Bank of Turkey. In May 2007, central bank decided that Consumer Price Index should be the benchmark index for the variable interest rate calculation. In summer of 2007, some banks started to offer various adjustable rate mortgages and these loans, as expected have lower APRs. However, as Central bank’s current records show there is almost no interest in these variable interest loans right now. This lack of interest is probably due to several factors such as: i) the lack of trust in Turkish economy and the fear of a substantial increase in the interest rates even though the economy has been performing fine in the last 5 years without any major crisis; ii) the recent mortgage crisis in the USA, and particularly, the rise in mortgage default rates in the USA and the fact that most of the increases in the defaults were in the sub prime market and adjustable rate mortgages; and, iii) the lack of understanding of the benefits and risks of these new products. We believe that these three reasons are temporary and in the near future, as people are educated about the risks and benefits of these new products and mortgage brokers fill the necessary knowledge gap, the interest in the products will increase.

2) Securitization of Loans :
About six months after the new mortgage law passed, Capital Markets Board of Turkey completed secondary legislations on mortgage covered bonds and mortgage backed securities. With this addition to the law, banks are now able to bundle the loans into securities and take them off their balance sheets. Covered mortgage bonds and mortgage backed securities are debt instruments secured by a covered pool of mortgage loans (or public-sector debt) to which investors have a preferential claim in case of default. These instruments are among the most liquid fixed income securities after the government bonds in Europe. While it is not expected to see the first securitization until early 2008, reduced risk for the banks will cause a significant and sustainable growth in the mortgage market in the coming years.

Expectations for the future

a)The secondary mortgage market will probably trigger a decrease in the interest rates as banks will be able to transfer their risks off their balance sheets and the ratings of the deals in the secondary mortgage market could be higher than Turkey’s sub-investment grade sovereign rating (this has been the case in similar cases).

b)With the secondary mortgage market’s effects, the banks’ competition growth will fuel an already booming housing market. Especially, when the monthly interest rates get closer to 1 percent per month, the volumes will be substantial, as they were earlier. Expected growth in the mortgage market is expected to mimic those in Spain and South Korea as these countries have followed similar paths as Turkey. Sizes of the mortgage market in Spain and South Korea GDP are 50 and 25 percent of the GDP respectively. So it is not inconceivable to expect that Turkey’s mortgage market may grow up to 30% to %40 percent of the GDP from its current share of less than 10%. Note that since Turkey has a very strong ownership culture, the ratio can be even higher.

c)Turkey’s new long term mortgage laws will increase the investment in Turkey. The new instruments that will be introduced with the securitized mortgages will increase the stability and depth of the financial system probably creating a natural cushion for any unexpected events and decreasing the volatility and avoiding the episodes of financial crises that were observed in 2001 and 1994.

d) Enhanced foreign investment in the property market will cause a boom in the property market. Also in addition to real estate market, as mortgages will need associated insurance, it is expected that insurance sector will be a big beneficiary of the new mortgage law.

e) The central bank will have more dominant place in the economy similar to the developed countries.

f)New law will help strengthen Turkey’s EU bid. The Turkish mortgage law will bring Turkey into line with the standards and practices expected from worldwide property purchasers and investors.

In addition to the tangible effects listed above, we expect that there will be very important intangible effects too. For example, in a country like Turkey where ‘future planning’ is measured with months (mostly because of the economic, financial and political crises), just the fact that people are now able to get a loan up to 30 years is an encouraging incident that will probably change the way people plan, invest, spend and save in the future. Since being able to plan for the future is one of the most important requirements of economic development, the additional foresight produced by the new mortgage law may be one of the biggest impacts of the new mortgage law in the long run.

Why Investing Your Money For A Property In Manchester A Wise Decision Investment Property Finders

Property investment is one of the growing businesses that most people are venturing into. Many people refuse to realise why investing in a real estate property can give them more benefits than they can ever think about. Here are top reasons why investing a property in Manchester and seeking the right investment property finders in this very minute will be wisest life changing decision you will ever make.

Capital Gain

This is the number one reason why most starting entrepreneurs invest in a property. This is because real estate properties will always give you returns in the long run. As the property market value increases with development and renovation plus the additional marketing strategies, you can skyrocket your propertys value up to two to threefold. The increasing value of your property is called capital gain, and this is considered the number one source of cash flow from large businesses. Companies like Manchester property finding services will aid future property owners like you by getting you closer to customers. A survey revealed that about 50 percent of the income of large entrepreneurial schemes come from real estate property investment alone, further revealing that these wealthy businessmen are buying properties every year for future investments. Why not start today?

Rental Property Investment

This is another reason why many people are beginning to get interested in buying real estate properties. Rental property can be your starting business as about 85 percent of Americans opt for a rental property some time every year. An article about investing in real property dubbed property investment as a forced retirement plan because it can give more in the long-term with the proper development and care. Having a real estate property will boost your portfolio, and you know by now that a diverse portfolio is the key in building true wealth.

Invest in Your Home

If you are thinking about investing a real estate property for your family, then you are still in the right path. When will the best time to provide the best, most comfortable and decent living arrangement for your family? You are right when you are thinking that it is this very instant. Home will be the most valuable investment you will ever have and 100 percent guarantees that it will not be regarded anywhere near a bad decision. If you want to relocate or discover a whole new living space, then get the best investment property finders and invest for the future of your family.

How Pinnacle Property Finder Can Help You

You can take that sigh of relief when you entrust your home buying to a company renowned for making the best home buying decisions for customers; Pinnacle Property Finders. They are an established company spanning a dedicated team of home experts from Spain, France, USA and other countries. If you are uncertain of the right things to look for when buying a property, it will always go easy with Manchester property finding services because they are expert in understanding the buying scheme, developing a property, renovation costs, budgeting, design, project management and other real estate issues.

Pinnacle Property Finders is a Manchester-based company that employs an enthusiastic team of marketing and design staff that travels all over the world, putting value to the buyers money. If you are looking forward to your ideal home or you are planning to relocate, let Manchester property finding services do all the work for you. Visit Pinnacle Property Finder now or call them at 020 3397 9144.

Bi-weekly Mortgages Versus Mortgage Accelerators

Bi-weekly mortgages are a good way of saving money on a home mortgage, but a mortgage accelerator is far more effective. Mortgage accelerator systems save far more money than bi-weekly systems.

Every month, most of your mortgage payment goes toward interest, and only a very small amount goes toward reducing the principal. If you could do something that would cause less of that monthly payment to go toward interest, more of it would go toward principal! Is this possible? YES!

How? Use a mortgage accelerator! It’s a method that makes more of your monthly payment go toward principal. If you think this means making bi-weekly mortgage payments, you’re wrong. Real mortgage accelerators don’t change your regular monthly payment but more of it goes toward principal, and less to interest. Basically, you’re earning money on your own mortgage!

Mortgage accelerators are misunderstood but don’t be put off. Not only do they work, but also, using one can cut the time it takes to pay off a 30 year loan to just 10 years, and save you hundreds of thousands of dollars. Banks naturally don’t want you to know this and how much better it is than a bi-weekly mortgage. Actually, bi-weekly mortgages only save about 5 years.

The best mortgage accelerators use the “Australian method”, so-named because it was first used in Australia in the mid 1990’s. Since then, many people in countries around the world have used it with great success. Still, in the USA, it is not well-known. But don’t be put off because it really works and can save the average homeowner a fortune in mortgage interest.

There are several companies selling mortgage accelerators, and some of them charge thousands of dollars. Still, they are all based on the Australian model and so all will work, so you don’t have to spend more than a few hundred dollars.

One of the best values is the Mortgage Magic System.
The Mortgage Magic System lets you use the bank’s money to your own advantage.

Using this System, you will owe less money to the bank each month, and more of your monthly payment will go toward paying down your loan – in effect, making money on your mortgage.

Here’s how it works: you are going to use your regular income to offset your mortgage loan by having your income reduce your mortgage balance. For every dollar of income, you will owe a dollar less on your mortgage.

By using your regular income to offset your mortgage balance, you owe less on your loan. As a result, you owe less interest for the period! But you also need your income to pay bills and pay for my daily needs. No problem, because you have access to it anytime you need it to pay your bills.

If you’re excited about a system that is so much better than bi-weekly mortgages,there’s more. You see, if you can pay off your largest debt (your mortgage) in about 10 years, you’ll have all those extra years where your monthly discretionary income will increase by thousands of dollars each month. You’ll be able to quickly grow your retirement savings over those years, instead of paying all that money to the bank each month!

You think this sounds too good to be true, but it’s not, and there’s absolutely no risk of using a mortgage accelerator. So, if you want to save money on your mortgage with a bi-weekly mortgage system, use a mortgage accelerator instead.

A Guide To Buying Property in Thailand

Thailand is an amazing destination for a second home or investment property – But PLEASE ensure the necessary due diligence has been carried out prior to a purchase!

So you have fallen in love with Thailand? Like so many others before you, and the thousands that will follow? For whatever reason, you have chosen to own a property in Thailand? This could be for the long term prospect of making this wonderful country your permanent home, or as a potential investment, and/or for the pleasure of having a luxury holiday home in the sun. Whatever the reason, there are certain things you need to consider before jumping head-first into a purchase.

Naturally, what seems like a great idea at the time can often change after a full investigation of the pro’s and cons? There is certainly no reason not to consider such a purchase, but like any property deal back in Europe or the USA, it is advisable to carry out due diligence beforehand. Find out the facts before you sign anything, and be sure you have covered everything before you proceed.

Thailand is a wonderful country with some beautiful beaches, an amazing climate and a very laid back approach to life. All very appealing to the foreigner just off the plane from their stressful lifestyles back in Europe or the USA? But before you sign on the dotted line of a contract, please ensure all the necessary due diligence has been carried out, as it would have been back home.

Forbes Le Brock is a professional and extremely helpful real estate agency specializing in general real estate and investment property throughout Thailand; and although they are not qualified legal advisors, they aim to provide as much accurate and up to date information in relation to property purchase, as possible. Any information they provide is by no means meant as a definitive guide, it’s just their way of providing a value added service. Please, always ensure you seek advice from a professionally qualified and registered Thai lawyer, and attain current information at the time of your purchase, or in interest of a purchase.

Always seek professional legal advice and get a qualified registered lawyer

The first and probably most important decision you will make is to talk to a Thai registered, qualified lawyer who is respected and/or has been highly recommended. This is incredibly important as until you have some in depth knowledge of Thailand and the Thai real estate market, you will need professional and honest advice. A good, trustworthy Thai lawyer can assist you in so many ways, save you money and provide many answers to the numerous questions you undoubtedly will have? They can also help you avoid any unnecessary pitfalls created by your lack of understanding of the market, and will guide you through any language barriers.

Always remember when appointing a Thai lawyer, you are basically hiring his/her professional services in order to help protect you from any unforeseen pitfalls, guide you on Thai real estate law, help with any lack of understanding and/or protect you from any unscrupulous individuals that may be looking to take advantage of you. Lawyers are worth every baht they charge if they are honest, qualified and licensed. Hire a good one and they are an invaluable source of information and expertise.

A Good Law Firm will:

“Check the current owners have the correct title to the property

“Check for any charges and liabilities still owed on the property

“Check your contract and advise you on the obligations/responsibilities of all parties

“Guide you through the payment/funds transfer

“Ensure that the property is registered appropriately and in the correct name

“Provide valuable and essential legal information

“Advise on visa regulations and your options

“Safe guard you against unscrupulous persons wishing to take advantage

Ownership Laws for Foreign Buyers – Ask a Registered Thai Lawyer to Help

Currently the laws in Thailand only allow certain types of property to be purchased and owned on a freehold, and you need to know what they are. A Condominium is the first type that comes to mind and a very good option. But even with a condominium one needs to check the unit to be bought falls into the correct legal category. Check the laws governing this, and make sure you carry out all the right actions that create a smooth and hassle free purchase. As already mentioned, a licensed Thai lawyer will do all this for you, and they are worth very baht they charge! It is only the foolish who buys a 15 million baht property and then objects to pay a lawyer 50,000- 100,000 to deal with the transaction. A Thai lawyer is there to protect you and your hard earned money. Don’t be foolish, and always make sure you seek good legal advice. It can also be foolish, to go the cheap route and use any of the numerous unqualified legal advisers who offer ridiculously cheap legal assistance. Many, you often see in the back of tourist magazines, newspapers and occupying numerous street shops. Once again, be careful, take your time and be sensible. There are some excellent lawyers out there and you just need to find them.

As a foreign investor, there are also ways to lease property in Thailand for up to 30 years! Many are happy to choose this option as a freehold property can be owned by a foreign investor on leased land. And even then, there are ways to extend a 30 year lease, but not necessarily with a complete guarantee. Once again, check with a qualified, registered lawyer.

Buying on one of Thailand’s fabulous developments

There are numerous fabulous developments throughout Thailand and one should take their time looking. Decide on the location such as beach area, city, country side, and take the time to look at the various projects in that location. There are many locations to consider depending on where you wish to live. The main areas and popular choices are: Bangkok, Pattaya, Koh Chang, Rayong, Hua Hin, Cha Am, Chiang Mai, Ko Samui, Phuket, and Krabi. Each area has its advantages and disadvantages, and there are a wide variety of developments to choose from.

Make sure you deal with a reputable developer, one that can help you as much as possible. Ask your Thai lawyer to check any contracts and title deeds they may provide, and always seek legal advice before signing or paying for any property. If the developer is reputable and serious, they will fully understand the need for your lawyer to be involved and in fact should welcome it, as it shows they are open and honest with nothing to hide. A reputable developer should also be happy to provide all information as regards the building of the property you are purchasing, and any information regarding title deeds, ownership, communal areas, guarantees and whatever pertains to the successful purchase.

Building your own Home in Thailand – Exceptional Value for Money!

Building your own home is a fantastic option and probably the one that allows you to take full advantage of Thailand’s very reasonable prices. It allows you to get the most for your money. But once again, this can be problematic if you do not consult a professional, registered construction company. There are many unqualified builders out there, as in the West, and many are carrying out construction with no previous experience whatsoever. Some do it as a hobby, others foolishly do it as they think it’s an easy way to make money; and some even do it because they think it’s an easy thing to do. But as we know from Europe or USA the reason we have qualifications, the reasons we have regulations on construction, is because it is, a very complex task. If you wish your house to be built to a standard acceptable to international standards, then make sure you get a registered company to do it for you that can provide examples of their work as well as testimonials and references.

Make sure you use a Company with Construction Experience

Remember standards in Thailand vary widely and don’t be one of the many victims who end up with a home whose electrics are not earthed; windows have gaps around them, doors that do not fit, and structures that have no guarantees. Be sensible and careful. Ask the right questions and make sure the company you choose has a good reputation and is registered as a construction company, not as an individual or via their wife’s name. There is little come back if it is built under a person rather than a company, and any serious builder will have a registered company set up. But even then, make sure you ask the right questions, and make sure they have many years experience in construction.

So once again, it is vital and sensible to always check the company has experience and is registered. A professional construction company is just as price competitive as a small one man band. They will always save you money in the long run and help you avoid the terrible problems that occur by using unregistered, unqualified builders. If something sounds too go to be true; then it probably is?

A Registered Construction Company will:

“Assist and advise you on the prices, styles, types of property

“Provide recommendations, references or testimonials from satisfied clients

“Provide a synopsis of their experience within the construction industry

“Assist you with architectural plans and consult with you on them

“Make sure your plans are signed by both a qualified architect and structural engineer. Very important if you insure your property later on, as many insurance companies will contest any payouts for damage or problems, if the property construction was not carried out by professional people and/or was not designed by a qualified architect and checked/signed off by a structural engineer. So make sure it is.

“Make sure the architect provides you with a complete set of detailed plans and will provide copies for all government offices that require them

“Provide a professionally written legal contract, outlining both parties’ responsibilities and safeguarding both parties’ against disagreement or conflict. It should list all the particulars of the agreement and any additions, changes or alterations to the detailed plans. If specific materials or finish have been agreed, this should also be listed clearly with in it.

“Obtain official permission for your property to be built and provide the government with an documentation they require

“Provide a clear and concise construction payment schedule

“Offer stage payment options

“Provide full invoices for each construction stage

“Be available to answer questions and give advise throughout the construction process

“Provide guarantees

Find the Right Company and Build that Dream Home for a lot Less than you think!

Find the right construction company and you can build a quality luxury 4 bedroom house with pool for 7-10 million baht, a 3 bedroom bungalow for 3 million baht and an exclusive millionaire’s home for 25 million baht. The choice is yours to make on how much you wish to spend. However once again you need to check with a registered lawyer as regards the law and make sure you are able to do what you want to. Many foreigners who are married to Thai nationals choose this option to build and have a contract drawn out by their lawyer, between them and their wife. It satisfies their desire to live in their own home, safeguards them as much as possible and maximizes the money they have to spend. Once again seek good legal advice and there is no reason why you should have problems. The major plus point of building your own home and using a professional construction to do so, is you get so much more for your money than if you bought on a development and can customize the property to your own needs, preferences and budget.

Check all Your Options and Consider Everything Carefully

If you are married to a Thai national then there are other ways to purchase and complete your property ownership. As is the case if you are investing large sums of money into Thailand. There are so many aspects to consider and it is actually not so different to any country in the world. England and America have rules governing such activity albeit they have learnt fairly quickly that is far, far more beneficial to free up such laws, as foreign investment greatly benefits the economy. However this is still early days for Thailand and it will take time for the change to take place. But ultimately, you can buy property here and thousands do. As long as you know the laws, understand your position and are happy to buy on that basis, then you could be the proud owner of a luxury property that cost five times less than a similar property back home!

Check the Visa Regulations and any Taxes or Transfer Fees

Another aspect you need to consider, is how long you wish to stay in Thailand and what the visa regulations are in relation to your country of origin? There are various types of visas available and once again you should seek the advice of a registered Thai lawyer. It wouldn’t be a good idea to buy a beautiful property only to find out that you can only stay in Thailand for one month at a time right? So this needs careful consideration, and preparation.

Make sure you fully understand the taxes and transfer fees you may have to pay on final transfer of ownership. This is important and once again a good lawyer can help you with all of this.

Quick Purchase Guide

The Initial Purchase Agreement

The initial purchase agreement will detail price, terms and conditions, settlement date etc. and in most cases a 5-10 – 10 to 3, a transfer fee of 2 (levied against a vendor who has been in registered possession of the property less than 5 years), and income tax (similar to capital gains tax) at a variable rate.

Property Taxes

There are 2 different types of tax levied on property in Thailand:

1. Land Tax

This is an annual tax levied on land ownership. The amount is often so small that in practice the body charged to collect it rarely bothers to do so. When they do collect it, it is usually after several years when the amount has accumulated.

2. Structures Usage Tax

This only applies to commercially used properties. The rate is 12.5) on property is the comparable replacement.

Finance

Mortgages in Thailand are still difficult to arrange. However, recently a new branch of the Bangkok Bank has opened in Singapore, which has opened up borrowing possibilities for property investment in Thailand, financing as much as 70 in finance, with the exception to some well-known developments where finance of nearer 70 of the purchase price and interest rates can be fixed for up to three years.

To buy a condo or another property with a loan, many purchasers get a mortgage in their home country and then transfer the money to a Thai bank account, while using a lawyer to oversee the logistics of the process.

But please check the current situation and speak with banks direct.

Please note: Laws and regulations do change and can vary, so please make sure you check with a qualified lawyer. The above information is only to offer an insight into the property world and not as an accurate guide. We are not legal experts and nor profess to be so. Always clarify everything with a lawyer and get an up to date perspective on your situation and any laws regulating what you wish to do in Thailand. The above article was written at a specific time and maybe regulations, taxes and laws have changed since this was created. We waiver any liability, legally or otherwise in its detailed accuracy and can not be held accountable in any way.

Thailand is an amazing place to live and a there are some wonderful real estate and investment opportunities. If you take care and be sensible, then you too can be the proud owner of an amazing new property at half the price it would cost in the west.

What Happens During A Foreclosure Process

The word foreclosure strikes fear deep in the core of so many people it has been given the same status as a swear word in some countries. You must not even bring it up unless you would like to feel the pent up anger and resentment of the general population against the greedy financial institutions that caused the collapse of real estate market.

A foreclosure is when the financial institution that lentthe homeowner themoney to purchase a home takes court action against the homeowner to take the house and sell it to another person.

The homeowner does have rights to be able to make amends and pay back the debt to keep the house. The lender in wanting to repossess the

house tries to take action to stop the homeowner from being able to redeem his property. This all occurs when the homeowner stops making the monthly payments owed to the lendor. It can do untold damage to your FICO score (credit rating) and is usually a very long drawn out process.

Losing your home is a very emotional and stressful time for the homeowner.

Two kinds of foreclosure procedures types typically run in the USA, they are the most popular.A “Judicial Foreclosure” is 1 such way to foreclose.

This is when the lender takes the property andsells it. The courts oversee this process carefully. Excess cash made from reselling the property is redistributed to pay off the loan capital and the foreclosure fees.

Any monies left over is then used to pay off other lien holders.

The other most popular used process is called a “Foreclosure by Power of Sale”. This type of process may be implemented without any problem only if the original mortgage contracts between the lender and the borrower contains such clauses to permit it or if a “Deed of Trust” was involved. This entails that the sale of the property has to be undergone by the home-owner.

There are no courts involved and most of the time it usually is faster than selling by the first process. There are other ways of going about foreclosing but they’re not usually used because of their limitations.

Keeping up with your monthly payments will keep you from getting into this situation. But with the state of affairs in the economies of the world lately, many people have found that it has been inevitable for them. Although, you do not have to necessarily throw in the towel when you get confronted with that dreadful notice. Employing the services of a professional who is a true expert in this type of real estate transactions and foreclosures is very, very important in protecting you.

Also, don’t feel intimidated to go and talk to your lender. Many legal mortgage lenders are more than willing to meet the home-owner halfway and work out more lenient installments for a short period (like a year) provided that the owner comes to them early and is willing to sit down and talk candidly with them. Many government credit rehabilitation programs have been created to assist in any way possible in saving homes from the traumatic process that is involved during any foreclosure of a property.

Mortgage Loan- What It Is And How To Get

What is Mortgage Loan?

It is the process of charging of real (or personal) property by a person to a someone as security for a debt (especially one incurred by the acquisition of the property), on the condition that it shall be came on payment of the debt inside an exact amount.
The mortgage may be a kind of loan secured by holding through the utilization of a mortgage note that evidences the existence of the loan and also the encumbrance of those belongings through the granting of a mortgage that secures the loan. However, the word mortgage alone, in everyday usage, is most frequently accustomed mean loan.

How to get Mortgage Loan?

Processes involved in getting your Mortgage Loan:

1. Prequalification
Prequalification determines what proportion of a loan you’ll afford. This could be performed by getting to the Loan adviser or at our site oneminutehomeloan we provide home mortgage loan in colorado. Prequalifying for a loan typically takes one minute with us.

2. Apply For Your Loan
Applying for a any mortgage loan with oneminutehomeloan is just as easy as withdrawing money from ATM. To make you get your loan faster we have Online Application Service for you. Go and apply at oneminutehomeloan.

3. The process Of Your application
Processing and validating your provided data take some time. Typically, the Processor can checks three things to verify these facts:

1. Your last pay check stubs (a year-to-date P &L if self employed)
2. Your W-2 forms (personal and/or company returns can solely be requested if needed)
3. The statements you received within the mail from any establishment with that you have got cash on deposit (investment, savings, checking, etc…).
While this data is being collected, Processor can order your credit report and appraisal on the property being supported. If you’re buying new home, please submit a duplicate of your purchase agreement, too.

4. Appraising Your Home
The appraiser can contact you (your realty Agent if you’re buying a replacement home) to line a reciprocally prescribed time to pay quarter-hour exploring the within of the property being supported. Then the appraiser can pay hours researching “comparables”, like-homes in size and heap that have sold as geographically draw in proximity as potential to the topic property and inside the last half-dozen month amount of your time.

5. Underwriting
An Underwriter confirm if a loan is approved or rejected and beneath what terms. If your loan isn’t approvable beneath the terms that you have got applied, and then a counter provide is sometimes created if potential. for instance, if you applied for a seven years mounted rate mortgage loan, however the Underwriter felt the larger payment would be to a fault onerous supported your alternative debts and as a operate of your financial gain, then they’ll provide a fourteen years mounted rate mortgage loan instead.

oneminutehomeloan provides home mortgage loan in colorado is totally different than nearly each alternative investor therein our Underwriters are in-house and on field in our Headquarter facilities in Colorado, USA. As a result, your file doesn’t leave our workplace unless there are special circumstances. The result’s a quicker approval as results of human interaction.

6. Closing
The name speaks for itself. Typically your closing can occur at the title company of your alternative or at our offices if you like. You should be called and coordinated for closing your mortgage loan.

What Happens During A Foreclosure Process

The word foreclosure strikes fear deep in the core of so many people it has been given the same status as a swear word in some countries. You must not even bring it up unless you would like to feel the pent up anger and resentment of the general population against the greedy financial institutions that caused the collapse of real estate market.

A foreclosure is when the financial institution that lentthe homeowner themoney to purchase a home takes court action against the homeowner to take the house and sell it to another person.

The homeowner does have rights to be able to make amends and pay back the debt to keep the house. The lender in wanting to repossess the

house tries to take action to stop the homeowner from being able to redeem his property. This all occurs when the homeowner stops making the monthly payments owed to the lendor. It can do untold damage to your FICO score (credit rating) and is usually a very long drawn out process.

Losing your home is a very emotional and stressful time for the homeowner.

Two kinds of foreclosure procedures types typically run in the USA, they are the most popular.A “Judicial Foreclosure” is 1 such way to foreclose.

This is when the lender takes the property andsells it. The courts oversee this process carefully. Excess cash made from reselling the property is redistributed to pay off the loan capital and the foreclosure fees.

Any monies left over is then used to pay off other lien holders.

The other most popular used process is called a “Foreclosure by Power of Sale”. This type of process may be implemented without any problem only if the original mortgage contracts between the lender and the borrower contains such clauses to permit it or if a “Deed of Trust” was involved. This entails that the sale of the property has to be undergone by the home-owner.

There are no courts involved and most of the time it usually is faster than selling by the first process. There are other ways of going about foreclosing but they’re not usually used because of their limitations.

Keeping up with your monthly payments will keep you from getting into this situation. But with the state of affairs in the economies of the world lately, many people have found that it has been inevitable for them. Although, you do not have to necessarily throw in the towel when you get confronted with that dreadful notice. Employing the services of a professional who is a true expert in this type of real estate transactions and foreclosures is very, very important in protecting you.

Also, don’t feel intimidated to go and talk to your lender. Many legal mortgage lenders are more than willing to meet the home-owner halfway and work out more lenient installments for a short period (like a year) provided that the owner comes to them early and is willing to sit down and talk candidly with them. Many government credit rehabilitation programs have been created to assist in any way possible in saving homes from the traumatic process that is involved during any foreclosure of a property.

On The New Mortgage Law Of Turkey

Since the new Turkish mortgage law passed on March 2007, the mortgage and real estate markets have continued their growing trends that are mainly driven by lower interest rates; however, this growth is probably just the tip of the iceberg.

The Turkish mortgage law that passed on March 2007 has two important properties that are expected to boom the mortgage and real estate markets in Turkey:

1) New mortgage products :
With the inclusion of the adjustable rate mortgage products, banks are able to transfer some of the economy related risks in their balance sheets to borrowers. In adjustable rate mortgage products, the interest rate is a sum of a fixed margin that is determined by the lender and a benchmark index that is set by Central Bank of Turkey. In May 2007, central bank decided that Consumer Price Index should be the benchmark index for the variable interest rate calculation. In summer of 2007, some banks started to offer various adjustable rate mortgages and these loans, as expected have lower APRs. However, as Central bank’s current records show there is almost no interest in these variable interest loans right now. This lack of interest is probably due to several factors such as: i) the lack of trust in Turkish economy and the fear of a substantial increase in the interest rates even though the economy has been performing fine in the last 5 years without any major crisis; ii) the recent mortgage crisis in the USA, and particularly, the rise in mortgage default rates in the USA and the fact that most of the increases in the defaults were in the sub prime market and adjustable rate mortgages; and, iii) the lack of understanding of the benefits and risks of these new products. We believe that these three reasons are temporary and in the near future, as people are educated about the risks and benefits of these new products and mortgage brokers fill the necessary knowledge gap, the interest in the products will increase.

2) Securitization of Loans :
About six months after the new mortgage law passed, Capital Markets Board of Turkey completed secondary legislations on mortgage covered bonds and mortgage backed securities. With this addition to the law, banks are now able to bundle the loans into securities and take them off their balance sheets. Covered mortgage bonds and mortgage backed securities are debt instruments secured by a covered pool of mortgage loans (or public-sector debt) to which investors have a preferential claim in case of default. These instruments are among the most liquid fixed income securities after the government bonds in Europe. While it is not expected to see the first securitization until early 2008, reduced risk for the banks will cause a significant and sustainable growth in the mortgage market in the coming years.

Expectations for the future

a)The secondary mortgage market will probably trigger a decrease in the interest rates as banks will be able to transfer their risks off their balance sheets and the ratings of the deals in the secondary mortgage market could be higher than Turkey’s sub-investment grade sovereign rating (this has been the case in similar cases).

b)With the secondary mortgage market’s effects, the banks’ competition growth will fuel an already booming housing market. Especially, when the monthly interest rates get closer to 1 percent per month, the volumes will be substantial, as they were earlier. Expected growth in the mortgage market is expected to mimic those in Spain and South Korea as these countries have followed similar paths as Turkey. Sizes of the mortgage market in Spain and South Korea GDP are 50 and 25 percent of the GDP respectively. So it is not inconceivable to expect that Turkey’s mortgage market may grow up to 30% to %40 percent of the GDP from its current share of less than 10%. Note that since Turkey has a very strong ownership culture, the ratio can be even higher.

c)Turkey’s new long term mortgage laws will increase the investment in Turkey. The new instruments that will be introduced with the securitized mortgages will increase the stability and depth of the financial system probably creating a natural cushion for any unexpected events and decreasing the volatility and avoiding the episodes of financial crises that were observed in 2001 and 1994.

d) Enhanced foreign investment in the property market will cause a boom in the property market. Also in addition to real estate market, as mortgages will need associated insurance, it is expected that insurance sector will be a big beneficiary of the new mortgage law.

e) The central bank will have more dominant place in the economy similar to the developed countries.

f)New law will help strengthen Turkey’s EU bid. The Turkish mortgage law will bring Turkey into line with the standards and practices expected from worldwide property purchasers and investors.

In addition to the tangible effects listed above, we expect that there will be very important intangible effects too. For example, in a country like Turkey where ‘future planning’ is measured with months (mostly because of the economic, financial and political crises), just the fact that people are now able to get a loan up to 30 years is an encouraging incident that will probably change the way people plan, invest, spend and save in the future. Since being able to plan for the future is one of the most important requirements of economic development, the additional foresight produced by the new mortgage law may be one of the biggest impacts of the new mortgage law in the long run.