Stop Foreclosure

Powered by the Realestate Recovery Group


Wednesday, 16 November 2016

Equity Release: Will it release your stress?


I know what just happened. You read the title; it spurred confusions and queries that very second. It’s great in a way because this curiosity might help you fetch out some important insights and preferably profitable options.

When there’s a mortgage left to pay, or you need some money assistance in your happy days of retirement; Equity release can fetch you these benefits. Wait, I didn’t say it “Will”. That’s because there’s no guarantee that Equity release will suit best for your situation. In fact, you might even regret your decision! So, isn’t it better to get all the facts, analyze and then take the best decision? See, I don’t want you to miss on some opportunity that might prove gold for you.

After all, we stand different from each other and so does our situations; how can this scheme then serve a monotonous benefit to all? To your best convenience, some FAQs will be answered in this blog.

– What exactly does Equity Release mean?
Equity = Assets – Liabilities
Suppose you have a car that values $12000 and have a $5000 loan against it. So, your equity is $7000.
Now, when you get a loan over this $7000 for regular cash income or a lump-sum amount for comfortable future; it’s Equity Release. (You’ll still continue to own that car until your die.)
DEFINITION: It’s a way to retain the use of your asset (say, your house) while loaning cash out against its value. The lender does get the repayment after you die.

It means you keep owning that place and will also have to continue staying there.

– Are there any Branches of Equity Release?
Oh yes! There are majorly 2 types of arrangements:
Lifetime Mortgage: A mortgage loan will be taken against your (borrower’s) asset (house). The Capital gets add up to the compound Interest regularly. The wholesome amount will be repaid to the lender when you die or move out to a long term care. Till then, you hold full ownership of that asset.
Home Reversion: When, as an owner of the property, you sell it (or a part of it) to a reversion company, you receive a regular income or a big amount in exchange. The property belongs to the money lender now; but you, the previous owner, doesn’t need to vacate the property. You can continue to live in that property rent-free till you die or move out.

– So, is there a limit to the amount that can be borrowed?
That depends on some factors:
-Value: The Lender will first contact a professional to get the exact valuation of your property. Based on this research, the amount that can be borrowed by you will be decided.
-Age: A major aspect that affects the decision of how much money you can borrow is your age. If you’ve filed for a joint application, your partner’s age will also be considered along with your age.
-Health: If you’ve some medical history or certain present medical condition, you may receive a larger amount from your lender.

-What minimum age is required to be eligible?
It differs for both the branches of Equity Release:
-For Lifetime Mortgage: To be eligible for this, you need to be at least 55 years old. -For Home Reversion: Your minimum age should be 60 years for being eligible.
If you and your partner file the joint application, then the younger one needs to be of the eligible age.

-What if the value of property falls later, to the extent that it’s unable to repay the loan?
Well, in certain rare cases, this might be a possibility that your property’s value lowers drastically and after your death, your old property is not able to pay off the loan. Your heirs will be then be paying off your remaining loan.

-I don’t want to drag my heirs into this. Isn’t there any other way?
That’s the reason why it’s advised to opt for “No Negative Equity Guarantee”. With this, you will be assured of no debt to be paid off by your heirs. According to this, even if after selling out your property the loan isn’t paid totally, the remaining amount is written off.

These are some major questions that generally dwell up in the minds which desire to opt for an equity release. This proves to be a good option if your circumstance stands as a support. But to finalize this major decision, it’s recommended to consult a financial advisor who will specifically analyze your situation and recommend the best possible option for you.

Let’s talk about the Flexible Mortgage!


Flexibility is the key to stability. That’s why it’s necessary for this type of mortgages to jump in the list. So basically, we are going to talk about the Lifetime mortgage. Yes, it’s suitable to have the name- “Flexible Mortgage”
Well, that’s what we’re going to talk about in this article. The pensioners pile up major stress regarding drastic fall in their regular income. They fear the absence of financial stability in their future years. But, what if this financial instability is cut down by the financial flexibility? Sweet!
So, the knife of financial stability is particularly termed as Lifetime Mortgage.
  • What is it?
Lifetime mortgage. It’s a long-term loan that’s secured against the borrower’s property and is repaid when he/she dies or moves to the long-term care. During the loan term, the borrower continues to stay in that property and maintains it-
  • How does it Work?
When you are at least 55 years old, you need some kind of financial stability to take care of your monthly expenses and other essentials. What you can do is… you can take out a loan against your home where you live. You’ll be using the money for whatever you need. You’ll still continue to live there and retain your ownership until you die or move to a long term care. That’s when this loan will be repaid.
After you die or move to a long term care, the property against which you took the loan will be sold. The amount fetched out will be used to repay the loan amount to the lender. The remaining amount will be passed on to your heirs.
  • Flexibility is divided into further flexible branches!
Drawdown Plans At this age, regular income is what you’ll crave. But without a job, would that be possible? Yes! With the Drawdown Lifetime Mortgage, you can plan the loan amount into regular incomes for yourself.
So, you’ll still be complimenting your regular expenditure with stable income support. The advantage? The interest will be charged on only the amount you take out for your necessities. So, basically your interest is not going to roll-up and that’s a stress revealing thought!
Enhanced Plans This is a kind of generous flexibility. It is preferably based on the borrower’s health and lifestyle. Any impairment or serious health issue of the borrower can result in lower life expectancy. This influences the lender to provide larger amount than normal mortgage deals.
Protected Plans You took the Lifetime Mortgage against your home. Now, when you’ll die, nothing will be left for your family. But you don’t want that, right? So, opt for protected lifetime mortgage plan.
According to this, you’re free to fix up some part or furniture of your home which will be excluded for the mortgage deal; that you can save up as inheritance for your family. It cannot be used to repay the mortgage loan.
Interest Payment Plans Interest payment mortgage plan is a way to periodically reduce the mortgage debt. If you wish to repay the monthly interest charged against your loan, you need to opt for this plan.
It will prevent the interest roll up. Reducing the compound interest, the final amount to be repaid at the end of the mortgage term will remain equal to the amount borrowed. This is an appreciable option for those mortgage borrowers who have reasonably good retirement income.
  • Flexibility Comes with a Price
Being flexible is an advantage but for benefiting yourself with this financial boon, you need to pay some costs. It’s highly necessary that you are perfectly aware about that. So, the costs that’ll be involved in taking up this Lifetime mortgage deal are:
Arrangement Fee: You will have to pay this to the lender while arranging the preferred lifetime mortgage deal.
Legal Fee: When the lifetime mortgage plan is finalized, you will be required to pay some legal and valuation fee.
Advisor Fee: This kind of decisions need through discussions and advice from a learned financial advisor. So, you need to pay the fee for a wise advice.
  • Some facts you don’t want to know but you should know!
Well, it needs courage to except the cons of something that shines out as an amazing option. But, like a quarter, everything has two sides. And it will be foolish to stay unaware about these not-so-welcoming facts.
Curbed State Benefits: The benefits offered by the government like the council tax benefits and pension credits can be affected by this mortgage deal.
Reduced Inheritance: The rolled-up compound interest can blow up the amount of mortgage to be repaid resulting in highly reduced inheritance for your family.
Early Repayment: If you’re able to and wish to repay the whole amount prior to the mortgage term decided, you will have to pay an early repayment charge too.
Equity Release is not highest: The Lifetime Mortgage Plan cannot offer as much as the Home reversion Plan.

Do contact your financial advisor. Explain your personal situation with every detail, discuss the pros and cons in much more detail, ask out all the questions jumping inside and get a customized perfect solution for yourself.

Thursday, 8 September 2016

Why BANKRUPTCY should be your last option?

Taking a loan is a big decision that requires a lot of analysis. I am sure that you must have pondered upon this decisive stride and strategized your financial management. But it’s also true that every ounce of strategy is risked to unpaid debt that hovers overhead.
If you are experiencing that pressure over you, then just make sure that bankruptcy is not the only option to shun away that stress. There various reasons that will prove my point:
·         You will still have the clouds of unpaid loans!
Some loans are not discharged. According to the policies, loans like student loans are not repaid. When you file for bankruptcy, you cannot be freed from alimony. After all the procedures, you cannot free yourself from all the stress. There will still be a definite cloud of unpaid debt.

·         Tightened finances.
Let’s assume that your situation has worsened to a point that makes you file bankruptcy. Now let’s say you file the chapter 13 bankruptcy. It will reorganize all of your debts according to your income. It’s like the situation where all of your expenses will eliminate half of your income. The rest free cash won’t be free anymore! The reorganization will tighten your finances. The free cash of your income will now be used to repay your debts. And furthermore, this situation is going to continue for at least 3 to 5 years.

·         The past taxes are still unpaid!
The unpaid taxes that levels up your pressure will not be discharged in this process of bankruptcy. Not fair! Be it your income tax, or the payroll money (of course this applies to the entrepreneurs); you won’t be rewarded with the elimination of these parameters.

·         Frowned scores on your credit report.
Just think about the exception that bankruptcy has. Not paying the taxes and stand-out loans. Still it will create the frowned mark in your credit report. And what’s more is you cannot get rid of it for around 10 years. It will act like a Jinx for your financial self. If you apply for any kind of financing or some other loans, you will have to pay over high rate of interest.

·         Your property is at stake.
Well, what if you have some hard-earned assets or have an emotional connection with them. Filing a bankruptcy can risk their existing association with you as an owner even if they do not fall in the category of secured assets. The process can use these assets to pay off your debts to the creditors.

·         Your fortunate gifts can be taken away (even before you unwrap them)!
Just assume that fortune presents you with an inheritance of some property. For example, you become the beneficiary under a will of a person who just died. After the condolence, you will thank for the received gift. But if you have applied for the bankruptcy, the process will exclaim- Oh! You spoke too soon. Even before you are termed as the legal owner, the bankruptcy trustee will run after that asset to repay your creditors.

So, just think about all the options and analyze your situation wisely. To opt for Bankruptcy is of course a wise decision for some debtors, but then, it is also the last option. If you need an assistance to verify your decisions, contact us and we will strategize the best possible alternative

Saturday, 3 September 2016

What About The Tenants Living In Your Foreclosure Property?


If the house you stay in has undergone Foreclosure, and you are a Tenant, then there is a possibility that you will end up in one of the following situations:

  •      The New Owner might want You to Continue living there as a tenant
No one wants to look for a new customer if the previous one is well, in an ease of availability. If the new owner does not want to sell out the house or look for another tenant, Phew! Not to worry. The foreclosure’s after-effects are not going to affect you. You just have to replace your rent deposit destination from the old landlord to the new owner.
Just make sure to ask about some documentation proof when you are introduced to your new landlord.

  •      The new owner might want you to vacate the property
Yes…this is one of those possibilities that you might not like (but that really doesn’t matter). It’s totally the new owner’s call. No need to panic here. You have the right to stay in there for at least 60 days so that you manage to find a new place to shift in (hopefully a better one).
There is, although, an exceptional situation where the owner can barge you out before ending the 60 days notice period. “Waste or nuisance” is an offence that, if committed, you could get evicted from the property. It involves any criminal offense or major destruction.

  •      Barter you Out
When the new owner wants you to vacate the property immediately, you can be offered a reasonable cash or compensation to make a deal. It’s like the barter system. Now here is the situation where it’s totally your call! You can either, accept the deal and vacate the property at the time of sale, or, very obvious, the option you can choose is to stay right there for the 60days notice period and look for a new and better home.
Note that if you decide to take the cash and move out, have the documented proof of this deal with the signatures of both the owners.

  •      The latent owner
There might be such situation where the new land owner stays anonymous to you. Although there is minimal possibility that such kind of situation will occur because of RCW 59.18.060  that states the compulsion of informing the tenants about any kind of change in the property’s ownership. Still, if this situation occurs, it’s better to find out the hidden information. Nevertheless, keep an account of your rents because you new landlord can appear anytime and has the right to ask for the rents at that instance.

Being the tenant of a house that is undergoing Foreclosure, be wise enough to take prompt action and understand your rights as an important resident of that property and contact an attorney without delaying it further.

Tuesday, 16 August 2016

Different Types of Mortgages You Should Know


What is Mortgage?

Mortgage refers to an understanding that permits a money lender to take property (and offer it to raise money) when a borrower neglects to pay.
In most cases, the term mortgage is used to refer to a home loan: when you acquire to purchase a house, you consent to an agreement saying (in addition to other things) that the house is "security" for the advance. If you don’t make the scheduled installments (for a while or more), your bank can abandon the property. In other words, the lender can constrain you out of the property, sell it, and gather the cash despite everything you owe.
Mortgage and "Home Loan" are often used conversely. However the mortgage is truly the agreement that makes your home credit work – not the loan itself. For real estate transactions, there should be written agreement, so a home loan is an archive that gives your money lender the privilege to foreclose on your home.

Types of Mortgages

Mortgages are regularly utilized by customers, but organizations can even buy property with this. There are following types of mortgages offered generally.

Altered Rate Mortgages:

It permits a borrower to realize what all future monthly installments will be. Since the interest rate is settled, your installments won't change when you utilize an altered rate mortgage.
With an altered rate mortgage, you calculate to what extent it will take to pay off all the main and interest, and then you touch base at a regularly scheduled installment. You will pay the same monthly installment through the whole term of the altered rate mortgage. Of course on the off chance that you offer your home before the end of the term, you can simply pay off the parity that you owe.
Fixed rate mortgages are worth as they permit you to foresee what you're lodging installments will be later on. Regardless of what happens with financing costs, your installments won't change on the off chance that you've utilized an altered rate mortgage.

 Second Mortgage:

A second mortgage is a loan that uses your home as security – like a credit you may have used to buy your home. The loan is known as a "second" mortgage in light of the fact that your purchase loan is often the primary credit that is secured by a lien on your home.
Second home mortgage taps into the value in your home, which you may have developed with monthly installments or through business sector esteem increments.
They permit you to acquire an expansive sum. Since the credit is secured against your home (which is by and large justified regardless of a considerable measure of cash), you have access to more than you could get without utilizing your home as guarantee. The amount which you would be able to acquire relies upon your lender, yet you may hope to get (tallying the greater part of your credits – first and second mortgage) up to 80% of your home's estimation.
They frequently have lower financing costs than different debts. Again, securing the loan with your home helps you as it diminishes hazard for your lender. Second home loan financing costs are commonly in the single digits.
Sometimes, you will get a deduction for interest paid on a second home loan. There are various details to know about, so ask your tax preparer before you begin taking findings.

Conceded Beginning:

You may need a 'conceded begin' when you take out your mortgage. Conceded begin or poor start contracts permit you to defer the beginning on repayments on your home loan for various months. Your lender will charge interest on the home loan for these months and add it to the original loan. So your mortgage balance will ascend before you start to make repayments.
This can be a helpful choice that you are a first-time purchaser and need additional cash to outfit another home or make changes. Nonetheless, it will marginally expand the general expense of your home loan as the unpaid interest gets added to the sum you obtain.

With a specific end goal to know more about mortgage types log on to our site

Wednesday, 3 August 2016

How to Buy Real Estate Below Market Value


It patently requires time, work and ability to get an incredible deal for land. Obviously getting profitable deal is one of the tasks of entire business. But here we will let you know how to make a profit on purchasing a property. Doing this obviously requires research, skilled transaction and complete dedication – still if one follows the given underneath techniques you can yield stunning achievement.
To be effective in Real Estate you need to know how to purchase land below the market value, and purchase properties that bode well. For this we will first let you know why individuals offer property below market value, what its real market worth is and afterward how you can purchase land below market value.

Why do individuals offer property below market value?

Nobody wishes to offer their property less than its value. If one is doing so then undoubtedly there must be some reason for that. In majority of the cases reason is time pressure. Choices can frequently be irrational and emotional in these circumstances. For Example

- Facing budgetary issues.

- To share funds with legatee.

- Facing Foreclosure Problems

- Personal issues.

- Interested in another property.

- Migrating because of work issues.

Whenever you discover a dealer who is keen on Short Sale, it's nothing less than a golden opportunity for you to confer the deal with the cost and contract terms in your favor.
In such cases, never be reluctant to make inquiries like: "What is the reason of sale?"; “For how long has the property been available in market?" ; Knowing these details will give you a clear idea of how much room is there for negotiation due to which your deal will turn out to be simple.

What is its real market worth?

Market worth is the original cost at which a specific property will be sold in its present condition. The cost is determined by the business sector or at times it also relies on the interaction of a purchaser and dealer. Remember that it is not settled like the cost of an item at a retail shop. This makes land bargains at an exceptionally productive open door. There is only one way of finding the definite business sector estimation of a property if you are not an agent and that is by observing practically identical deals. You have to discover recent offers of comparative properties in surrounding areas for this. It is the most accurate way to do this on your own. Likewise the least demanding way to know the market value for this is to go for such service suppliers. They will take complete liability to provide you a beneficial deal.

 Remember that if you are looking at a property that necessitates repairs then you need to get it in even lower cost else you aren't purchasing underneath real market worth.

Approaches to purchase real estate below market value:

To purchase real estate most importantly get this clear that there are short sales below market value, there are Fair market deals, auctioned property and the off market properties that can be sold below market value. With a specific end goal to use benefits of purchasing real estate less than its market value, go for these properties.

Short Sales are a phenomenal hotpots for financial specialists. Short sales are possessed by private vendor however the vendor has a commitment to pay the bank more than for the amount they are attempting to offer the home. With a specific end goal to sell the home, the bank needs to take consent to take less cash than they are owed. Truly, short sales take up to 6 months or even a year to close since sellers here don't effectively hop onto a conclusion. They take their requisite time to settle on choice.

Fair market deals are homes claimed by a private vendor who have reasonable play in the home selling decisions. They can offer it without including the bank in the basic leadership. It is harder to discover fair market deals   in light of the fact that the merchant is generally not in a gigantic hurry to offer their home underneath market value. There are fewer situations where you can find a great deal on a fair market sale.

Numerous service providers go for a property that is never listed for sale since they expect that it might cost them not exactly genuine market worth and they could easily gain the benefit. These are off market properties, since they are not available to be purchased. It requires cash and investment to have the capacity to buy these sorts of speculation properties.

At the point when a property is dispossessed by a seller, so it's obligatory for him to attempt and reclaim its misfortunes before promptly assuming responsibility of the property. That property is termed as auctioned property. This is the reason numerous homes are unloaded at the courthouse steps. So you should simply, determine when your local courthouse holds its auctions and grapple the most profitable deal from it as soon as possible.
In addition never let go the deals in which such terms are being used by the vendor ; 

#Desperate Merchant


#Decreased Estate

#Distressed Property

#Induced Seller

Generally speaking, to figure out how to purchase real estate underneath market value all you need to do is a lot of work and sparing time in research, hence after adapting these techniques your deal can be extremely profitable.
Keep in mind the old expression, 'you profit when you purchase, you get paid when you offer'. If you are having any trouble finding a great deal on a house, check out our site


About Us

Are you homeowner and facing foreclosure? Want to sell your house quickly? Get started right away and know your options to foreclosure. Please give us a call for free at 201-574-7199 for no obligation assessment of your situation. For more information visit



Contact Us

120 East Main Street
Suite # 157,Ramsey
NJ 07446