Advice On Fha Loans And Debt Relief

As far as I am know, the FHA offers no such debt relief program when it comes to loans to buy homes. If you do not already own a home, and are looking to consolidate your debts into a mortgage at the time of purchase, I should tell you that this concept, while possible, can be difficult and, in some cases, ethically and legally questionable. Obtaining additional funding at the time of purchase to pay off other debts, or for any other reason, is frequently called "cash at closing." There are two basic methods designed to provide buyers with cash at closing on new home loans. The first envisions a seller who is desperate to sell his home, say a person in the beginning stages of the foreclosure process. In this scenario, the seller would offer the buyer a portion of his equity in order to encourage the quick sale of the home. For example, if a seller has $50,000 in equity in a home (the difference between the sale price and what they owed on the home), your purchase loan would be for the full asking price of the home, then the buyer would turn around and give you a portion of their equity. The problem with this option is finding a seller willing to sacrifice a portion of his hard-earned equity; most sellers will scoff at the suggestion that they pay over part of their equity to the person buying their home.

The second method is considered somewhat dishonest by the mortgage industry, but it is used by some brokers to entice buyers into home loans. Basically, a broker and an appraiser collude to over-appraise the value of the home. For example, if the seller is offering the home for $450,000, the appraiser could appraise the home for $500,000, thus increasing the amount of the loan. At closing, the broker will pay the seller the $450,000 asking price, and give you the $50,000 difference as "cash out at closing." The problem with this method is that it is fraudulent; you, the broker, and the appraiser are colluding to defraud the lender, which could be illegal, not to mention unethical. I encourage you to steer clear of any broker offering this type of financing. Another potential problem is that you will owe more on the home than the home is worth, which could be a serious problem if you run into trouble with the loan, as you would likely not be able to sell the home for what you owe on it. Even if you are interested in this type of loan, you will probably have a much harder time finding a broker who will assist you than you would have a few months ago; this particular type of loan was a common scheme used by less-than-scrupulous sub-prime lenders, but with the tightening of the sub-prime market, lenders are much less likely to fund this type of loan.

To qualify for an FHA mortgage loan you must apply through a lender approved with the Federal Housing Administration. The FHA will evaluate your credit; the agency requires at least one year of on-time payments on your credit reports. They may require your rental and other repayment history before approving your application. The FHA will also consider your debt-to-income ratio in making their determination.

The advantage of going though this scrutiny by the FHA is that you will have an opportunity to explain any blemishes on your credit records. If you have valid reasons for your financial difficulties, the FHA will consider your explanations before making a decision. In case the FHA feels that you are a credit risk, then you will be required to make a down payment on the mortgage; however, this down payment amount can be as low as three percent of the loan amount.

To shop for home loans, I encourage you to visit the Bills.com Home Purchase page. You can submit your contact information to the Bills.com Savings Center at the top of the page, and we will have several pre-screened mortgage brokers contact you to discuss the options available to you. I wish you the best of luck with your home search.

Community property and debt relief advice

If you are the only person listed on the credit card account, then in most cases, the creditor can only sue you, and therefore only apply a judgment once it has obtained a judgment against you. However, there are a few important exceptions to this rule which you must consider when determining the risk of not paying this debt. First, if you live in a community property state, the creditor could possibly sue both you and your spouse, under the theory that this debt was incurred as a community debt. Also, if your spouse was a co-signor on this account, even if she did not have a card, she may be legally liable for the debt. However, if she was only an authorized user, meaning you simply requested an additional card for her and she never signed a credit agreement, then she is likely not legally liable for this obligation.

Community property is a marital property scheme used by nine states: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin. In addition, Alaska allows married couples to choose either community property or equitable distribution when determining ownership of marital assets. Generally speaking, if you live in a community property state, debts incurred during the marriage to benefit the community, such as credit cards used to purchase items which will benefit both spouses, are considered community property, and are therefore owed by both spouses regardless of whether or not both spouses are listed on the credit card. For example, if you lived in Washington State and incurred debt during your marriage, both you and your spouse, as a marital community, could be sued to collect on the debt. If a judgment were obtained against you, both you and your spouse's bank accounts could be levied to enforce the debt. However, even in community property states, many creditors do not go to the trouble of suing both spouses, as doing so tends to complicate the legal process involved in obtaining a judgment. For example, in California, most credit card companies only sue the spouse that actually opened the credit card account. If the creditor chooses to sue only one spouse, and thus obtains a judgment against only spouse who opened the card, the creditor can generally only levy or garnish the assets of that spouse. If you live in one of the community property states mentioned above, and have defaulted on a credit card debt in your name only, I encourage you to consult with an attorney to discuss the possible ramifications for both you and your husband. Since community property schemes vary widely from state to state, it is important to discuss your situation with a legal professional familiar with your states' marital property laws. If you would like to read more about community property in general, I encourage you to visit http://www.bills.com/collection-laws/

If you do not live in a community property state and your spouse was not a co-signor on the credit card debt in question, then she is probably not legally liable for this debt. Therefore, the creditor should not be able to levy her bank accounts, garnish her wages, or take other action against her attempting to enforce the debt. Again, I encourage you to consult with an attorney to discuss your situation, your state laws, and what effects this debt may have on your spouse's assets.

If you are struggling to pay your credit card debts, you should explore the various options available to you to assist you in resolving these debts. I encourage you to visit the Bills.com Debt Help page at http://www.bills.com/debt-help

I wish you the best of luck in resolving your credit card debts, and hope that the information I have provided helps you Find. Learn. Save.

By: Ask Bill

Article Directory: http://www.articledashboard.com

www.bills.com/debt_relief/ www.bills.com/debt-consolidation/ www.freedomdebtrelief.com/