Completely refinancing your debt and overdue mortgage is a possibility. This is where you will take out another loan, including your equity in your home to get caught up on all forms of debt.
There are several different kinds of refinancing loans to stop your foreclosure and it’s important that you’re familiar with them all so that you can choose your refinancing loan.
Your original loan on your home or property was probably a secured loan where the property or home was used as collateral. Mortgage is the name for most property or home secured loans. Most mortgages will only loan on a certain percentage of the market value of the home and the rest. You have to come up with a down payment, this is where you lose out when your property is foreclosed. It’s important to choose a mortgage that you can afford, and has terms you can live with, and is financed by a secured lender.
You may also have an unsecured loan on your home or property. An unsecured loan is basically a loan on your good name and is not regulated by mortgage laws within your state. Types of unsecured loans include credit cards, personal loans, promissory note, credit lines, corporate bonds, and even bank overdrafts.
The biggest problem with unsecured loans is a variable interest rate. Even if you locked in an interest rate on an unsecured loan it may be rather high. It’s important if you attach your unsecured loans to your home mortgage that you have the ability to pay it back or foreclosure could be imminent.
If you find you’re falling behind on your mortgage payments, or unsecured loans. It’s important to do something before they file for foreclosure. Start shopping for your refinance loan on your home or property as soon as you feel you’re in trouble. Taking the time to look for the lowest interest rates as well as lowest loan fees can allow you to avoid or stop foreclosure. Make sure that your lender for your refinancing is an accredited lender, the last thing you need is for your lending institution to fold and put you back into foreclosure.
If you found that you’re getting ready to have your home or property foreclosed on its time to start searching for loans to help out. There are a variety of loans available to stop foreclosure on your property, careful research and choosing a lender that is secured, regulated and has a good record is the most important aspect.
Archive for ◊ April, 2010 ◊
What do property management companies do, anyway? What don’t they do? How much do they charge? Are they worth it?
Whoa there, tiger. We’ll answer your questions about property management, and succinctly, at that.
Landlords and rental building owners hire property management companies to assume all of the headaches involved with managing properties and tenants, allowing the landlord to spend their time in other ways. Typical responsibilities of a property management company include screening tenants, fielding phone calls from them, taking care of all repairs and maintenance, complying with rental laws (such as lead paint tests and disclosures), signing rental agreements and rental disclosures, etc. As an added bonus, they keep track of all the money that’s spent on each property, making your accounting a LOT easier. In a word, they do the everyday management.
What they usually DON’T do is pay your bills, such as your mortgage payment or property taxes (word to the wise: have your mortgage lender escrow for property taxes & insurance, ground rents, and any other recurring bills to save time). Property management firms typically don’t register your rental properties with local municipalities, either.
What do they charge? Property management companies generally charge in the 7-10% range, as a commission of all rental income collected (e.g. if the rent is $1,000, the management fee may be $70-100). This is no small fee every month, and constitutes a major disadvantage to using a management firm, especially when so many landlords only break even or have a small cash flow from their rental properties.
So now the hard part: are property management companies worth the expense?
The answer, of course, is that it depends. You may not be able to afford to pay a management company, if your rental only breaks even each month. But there is something to be said for being able to sleep at night without being woken up by obnoxious tenants calling to complain that the smoke detector needs a new battery, or having to spend your lunch break running out to show a rental property. The fact is that most landlords can handle the management of a few rental properties, but there is a critical mass at which point it no longer becomes feasible to perform property management duties for your rental properties AND do all of your other business tasks.
So my recommendation is to handle management yourself for your first few rental units, and get a crash course on managing rental properties. But when you can’t take it anymore, it’s time to pass the buck along to someone else, and get back to your primary business: making money.