I have found there is a TON of misunderstanding around reverse mortgages.
1. What do you think a reverse mortgage is?
2. How do you think it works?
3. Why do you think it is good/bad?

You must answer all three to be considered for best answer.

My fiance is in the military and on his second tour of duty in Iraq. We are buying our first home. I’d like to know the steps to getting a VA mortgage for our house.

My other question is, if the VA does not lend the money, they just guarantee it, do we have to find our own mortgage company for them to work with?

When my husband gets back from Iraq again we are looking to buy a house. We don’t have great credit but we are working on it.
I know the VA doesn’t give the loans but the guarantee whoever gives the loan that we will pay it.
So even with the VA guarantee will it still be hard for us?

Selecting a credit repair company to help you improve your credit score is a big decision. A typical credit repair service will cost you a few hundred dollars and will take up to a year to complete their service. Choosing the wrong credit repair company can end up wasting money and perhaps more importantly, your time. Choosing the right credit repair company, however, may be one of the best things you can possibly do for your financial future.

What do you need a credit repair company to do for you?

A good place to start when determining which credit repair company is best for you is to figure out what needs to be done to improve your credit. The process of repairing your credit can involve much more than simply disputing your credit with the credit bureaus. You should make sure to use a credit repair company that can fulfill all of your credit needs.

When most people think of credit repair they think of a process that has become known as credit report repair. When working to repair your credit using credit report repair, a credit repair company is using your rights under the Fair Credit Reporting Act to dispute certain items in your credit reports directly with the credit bureaus. This element of credit repair has helped many people with erroneous, incomplete, or unverifiable information on their credit reports improve their credit scores.

While credit report repair is a good start, many people find that it is not enough. Many leading credit repair companies will also work directly with your creditors using a variety of tactics to get them to stop reporting the negative accounts to the credit bureaus. They may also work with collections agencies and others to get them to stop reporting negative accounts or change they way the accounts are reported. A credit repair company may even go so far as to challenge the legitimacy of a reported debt.

Depending on your current credit situation, you may be best served by a credit repair company specializing solely in credit report repair or one that can also provide a full catalog of credit repair services.

How can I tell if a credit repair company should be trusted?

Unfortunately, credit repair is an industry that has received a bad reputation because of the publicity afforded to credit repair scams. While fraudulent credit repair firms tend to be shut down quickly, it is still in your best interest to learn how to identify the differences between a legitimate credit repair service and a credit repair scam.

An easy way to do this is to know a few of the laws that govern credit repair companies. These laws as defined in the Credit Repair Organizations Act were designed to protect you from credit repair scams while also protecting your right to get help with repairing your credit reports.

Another way you can find out about a specific credit repair company is to look up their BBB (Better Business Bureau) reports. The BBB keeps notes on complaints made against companies. If the BBB report for a credit repair company lists multiple unresolved complaints or an overall low rating, you should be wary of the company. In addition, beware of any credit repair company that does not list credit repair services as one of their offerings in their BBB filing. The BBB has very strict standards for credit repair companies so many fraudulent companies will not report to the BBB that they offer credit repair.

Do the banks only base your business loan on your credit and how good it is or does it matter???

I short-sale my property in 2008. I’ll receive a 1099 from lender with “gains” for $60,000. I don’t know what to do to minimize my tax exposure. I was thinking about start contributing as much as possible to my 401k plan during this year to reduce my taxable income. Is this a good idea? What else can I do?

I am a small business wanting to expand with additional employees, office equipment and working capital. I need an individual who can loan this money as my personal credit is not good enough to get a business loan.

Not Personally, dick p, but Apparently you don’t Wish to Inform Anyone.
Thanks K, What I Suspected. The Money Must Be Coming From Somewhere.

Foreclosure Process – Information for Investing in Pre-Foreclosures

Every state and county has slightly different rules concerning the sale of pre-foreclosures and short sale investing, but there is a basic process that each follows. This foreclosure process takes quite a long time before a property is sold at the sheriff’s auction and even, in some cases, before the homeowners are evicted from the property. Yet, even so it’s still a good chance for real estate investors to pick up properties at a discount along every step of the way.

It Begins with Non-Payment

A lender is often a bank that lends the buyer money based on their job, down payment and credit history to purchase a home. In return the buyer agrees to a home mortgage with that bank to begin paying back the loan. The bank makes money because the loan accrues interest over the lifetime of the mortgage. The buyer becomes a homeowner and everyone is happy. Should the buyer turned homeowner stop paying back the loan through the mortgage, the bank has a safety net in being able to take ownership of the homeowner’s property.

This is called a foreclosure. The foreclosure is initiated by the bank when the homeowner has stopped making payments on the home mortgage. The bank may wait an extended period of time before beginning the foreclosure, allowing anywhere from 3 to 6 months for the homeowner to being making payments on the mortgage again. The bank would prefer not to take a property back in foreclosure. It’s a messy, lengthy process and the loss mitigation officers must consider property the bank owns to be a non-performing asset.

Property Enters Pre-foreclosure

A foreclosure is begun when the bank files a Notice of Default through a trustee with the County Recorder’s Office. This notice lets the county and the homeowners know that the bank is getting ready to foreclosure on their property. In short sale investing the home is now considered to be in pre-foreclosure. The pre-foreclosure period is also known at the reinstatement period in that it allows the homeowner some time to catch up their past due amount on the mortgage and keep their property. This amount of time usually lasts about 3 months.

During pre-foreclosure the trustee appointed by the bank, usually a local attorney, prepares for a foreclosure. The trustee makes every reasonable effort to contact the homeowners and let them know about the upcoming foreclosure. This can be done by posting the Notice of Default on their property, sending it in the mail and also placing it in the classifieds of the local newspapers. The trustee may also call the homeowner to see if they can work out payment arrangements to get the mortgage back on track.

If the mortgage loan isn’t brought up to date in this 3 month period the trustee files a Notice of Sale with the County Recorder’s Office. This Notice of Sale is also posted at the homeowner’s property and placed in the local newspaper classifieds.

Goes to Court

Some states require that the Bank go to court and sue the homeowner for their property as part of the foreclosure process. This process can further lengthen the pre-foreclosure period which is a good thing in short sale investing. The short sale process can be a little lengthy itself, so the more time you have to put together a deal, the better.

The bank’s trustee will have to notify the homeowners of the upcoming court date and ask that they show up. However, many homeowners fail to show up in court to fight for their property. This can be because they are ashamed or afraid. Some don’t know the laws very well and could even be concerned that they’ll be arrested for a bad debt.

If the homeowner presents a good case in court or even if the homeowners just show up and provide their foreclosure information, there is a good chance that the court will provide the homeowners with a few more months to try and catch up their mortgage or make arrangements.

The court may also decide to award the property to the bank, especially if this property has gone to court previously or the homeowner doesn’t even show up to state their case.

Foreclosed Property Up for Sale

After the bank forecloses on the property it goes to the Sheriff’s Auction, also known as a Foreclosure Sale or Trustee Sale. This auction can be anywhere from a few weeks to several months from the time the bank has foreclosed on the property.

There are several different popular methods for holding a Sheriff’s Auction, but the most popular is held right on the courthouse steps. The county clerk auctions of the foreclosures one after the other by property number to the public. The highest bidder wins that property. The opening bid on each property is often equal to the remaining loan balance that the bank is owed, plus interest accrued and any additional fees associated with the Sheriff’s Auction.

At this point, short sale investing is bunk. If you still want that property you’ll need to wear the hat of a foreclosure investor and get right in there with the bidding.

After the Sheriff’s Sale

If no one bids on the foreclosed property it is purchased by the bank’s trustee and becomes a bank owned property. It is called, ‘Real Estate Owned’ or REO at this point and usually sits on the banks portfolio until the bank can get it sold to a post-foreclosure investor.

If an investor bids on the property and wins it they are winning the Trustee’s Deed to the property. They become the owner and can do with the property as they wish.

Sometimes the homeowners may still be living in the property after it is sold at auction. In this case the new owner may wish to work out a rental agreement with the homeowners, or ask the homeowners to leave. If the homeowners refuse then the new owner must evict them.

The owner can file an eviction notice with the country sheriff and usually within a few weeks the sheriff comes out to forcibly evict the former homeowners. However, this happens several months to a year after the bank sent the home into pre-foreclosure. Most homeowners have plenty of time to make other arrangements and have either left or are in the process of leaving when the property is sold at auction.

The foreclosure process is a lengthy one, but it provides lots of time for short sale investing to take place before that sheriff’s auction.

We are getting a construction loan through Wells Fargo. We have bought land already and have a loan on it with another bank that we are going to roll over into the construction loan. Our loan officer told us that we have to get insurance on the whole loan amount but that doesn’t make since. Why do we need to have Home Owners Insurance on land?