Be Sure Of Your Short Sale
Jun 21, 2011 Personal Finance
If your mortgage is underwater then you know the stress involved with the tough decisions you are facing. Deciding on a plan to help you avoid foreclosure is not easy. Further, you must make sure that your lender agrees with the plan before you can be sure you will not lose your home to a foreclosure proceeding. While many people seek help through a short sale, not everyone is knowledgeable about the process. There are a few downsides to a short sale, but you can minimize their effects by being prepared and arming yourself with knowledge.
Covering Your Bases
One of the most important aspects to a short sale is knowing how the process actually works, but you must first learn about what goes into a traditional mortgage. When you take out a mortgage you are required to sign to important documents. The first is a promissory note, which basically states that you agree to repay the loan amount. The second is a Deed In Trust, which states that you understand the lender has the right to enter the home into foreclosure if you default on the loan. Both of these documents must be resolved when you pursue a short sale.
To resolve the conflict created in these documents by entering a short sale you must obtain approval from your lender. First, request documentation stating that the lender agrees to accept less than is owed on the mortgage, which also absolves you of liability over the loan once the sale is complete. Second, request documentation from the lender that they agree not to pursue foreclosure as long as you are participating in good faith efforts towards the sale.
Prepare Yourself
Short sales are not the easiest process to complete, but can be much easier on your credit and financial future than a foreclosure. One mistake people often make is not preparing themselves properly. Remember that you cannot just decide to enter the short sale process, but that you must have approval from your lender. When you contact your lender you should have an idea of what your responsibilities will be and make a case for yourself that you intend help the lender recoup as much of their money as possible.
Further, when you do enter the short sale process you must be prepared to be patient. Although you may end up with multiple offers on the home, the lender has final approval. It is not uncommon for the lender to take several months to approval an offer on a short sale, which means that you will not be relieved of your mortgage responsibility immediately. You must be prepared to stay in the home for several more months, keep it tidy enough for daily showings to buyers and try to secure the best deal possible.
Tags: Personal Finance
Selecting the Most Appropriate Power of Attorney Template
Jun 14, 2011 Personal Finance
Using a power of attorney template is a simple method for creating legal documents that authorize an agent to take care of financial or healthcare transactions on your behalf. There are four primary kinds of POA forms that include: limited, durable, general, and medical.
Each type of power of attorney template contains specific legalese to ensure the document is legally binding. Regardless of the kind of form used, every POA includes two parties which include a Principal and Agent.
Principal refers to the individual that is creating the document. Agent refers to the person charged with carrying out transactions on the Principal’s behalf. Some forms refer to agents as the Attorney-in-Fact, which essentially means the person is legally allowed to sign documents and perform tasks described in the document.
Principals can choose anyone they desire to act as their agent. While the only requirement is that agents are of legal age, it’s vital to select someone that is trustworthy and dependable. The most common choices are spouses, relatives, friends, and business partners. However, agents can also be lawyers, physicians, accountants, or realtors.
Once power of attorney forms are created they have to be signed by two witnesses in front of a notary public. After witnessing signatures notaries sign the form and attach their stamp. If legal problems arise, notaries and witnesses might have to appear in court to testify.
Agents can only conduct transactions outlined in the POA. When durable or general power of attorney templates are used, agents are provided with broad powers that allow them to conduct nearly any kind of transaction the Principal would perform.
Setting up power of attorney privileges is common with estate planning methods. These forms are particularly beneficial to people that have bills to pay, or own realty, financial investments, or businesses. Arranging these documents ensures that financial matters can be taken care of in the Principal’s absence.
Limited power of attorney is used when agents only need to perform a few tasks. This form is frequently used to authorize agents to pay bills using the Principal’s checking account or credit cards. It’s also used when a person needs to hire a mediator to negotiate with government agencies such as Social Security Disability or the Internal Revenue Service.
General and durable power of attorney grants sweeping powers that let agents take care of multiple tasks. These forms are often used by business owners to designate agents to take over business operations. They are also used by people who need someone to take care of daily activities like monitoring financial investments, handling business affairs, or selling titled property such as real estate.
Medical power of attorney is used to authorize an agent to make healthcare decisions if the Principal is declared incompetent. Agents are not allowed to make any medical decisions until the Principal’s physician has filed a written declaration of incompetency.
Medical POA is also used to grant permission to caregivers to acquire emergency care for minor children. This form is required by daycare providers and nannies. Since children under 18 years of age cannot make medical decisions, this form is crucial for receiving emergency care if parents are unavailable.
Tags: Personal Finance
Get a Non Credit Check Bank Account
Nov 5, 2009 Personal Finance
Want to open a non credit check bank account? Your options are going to be pretty limited here, but there are a couple options that you can pursue.
Now, if you are looking or a no credit check checking account, you probably have committed some past financial misdeeds and have been blacklisted by the financial world. The first thing you should realize is that you are not alone. There are actually a fair number of other people in the same situation. You can end up being blacklisted by the banking world for something as minor as a couple bounced checks. The banks have a “ban first, ask questions later” policy these days. With the economy in the dumps, more and more people are finding themselves without a checking account.
So what can you do about it? The first thing that you can do is to look around online to see what you can find in terms of no credit check banks. Some websites may offer a list of banks that don’t use the ChexSystems network. If you can’t find a local bank that doesn’t use ChexSystems, your other option is to open an online second chance bank account.
A second chance bank account is a banking account for people with bad credit. These are no credit check banking accounts so you should have no problems in opening one. The catch is that you have to pay a lot more money for one of these bank accounts. So it’s a better option to find a physical bank that does not require a credit check. But if you can’t, then a second chance banking account is your only option.
Tags: Personal Finance
