Buying a house

To start off, some matters need to be mentioned. The house in question is a double-storey terrace house which is currently charged to a bank by the Vendor. It is situated on freehold land and individual title has been issued by the Land Office. The house is marketed for sale by a property agent and upon viewing the house, negotiation takes place on the purchase price. The buyer should insist on having a copy of the title or at least the title particulars so that a search can be conducted on the title at the Land Office to ascertain the identity of the current owner of the house and the existing encumbrances on the house.

Once the buyer is satisfied with the condition of the house and the purchase price, a booking fee is paid to secure the sale of the house. In this connection, the usual booking fee imposed in Klang Valley is 2% of the purchase price. Payment is made in favour of the property agent’s firm and a simple agreement is executed by both the vendor and the buyer on the important terms of the sale.

The agreement would usually include the names of the vendor and buyer, their correspondence addresses, subject property for sale, purchase price, period for payment of balance purchase price, default and dateline for signing of the formal sale and purchase agreement.

The buyer is given a receipt by the property agent for his booking fee and a copy of the simple agreement. Thereafter, the buyer has to appoint a lawyer to begin preparation of the formal sale and purchase agreement and to protect his interest throughout the transaction. In this instance, the minimal documents which the buyer is required to forward to his lawyer would be a copy of his identity card, copy of booking receipt, copy of the simple agreement, particulars of the vendor’s lawyers, buyer’s income tax number and submission branch, copy of title to the house and copy of vendor’s loan agreement. If the buyer does not have some of the documents, especially the documents which are in the vendor’s possession eg. the loan agreement, the buyer’s lawyers would write to the vendor’s lawyers for a copy of the same.

To be continued in Part 2. If you don’t want to miss Part 2, subscribe to this site’s feed for free so that you can be updated automatically.

Before beginning the process, you should probably find a reputable bankruptcy lawyer who can assist in the proceedings. It is not illegal to represent yourself of course, but a lawyer is the only one who can truly represent you in the best way. BAPCPA has made bankruptcy so complex that it is possible that your bankruptcy declaration will not be accepted by the court because it is incomplete or incorrect.

When filing bankruptcy, you must first determine which class of bankruptcy is appropriate for your situation. The 6 different classifications of bankruptcy are Chapters 7, 9, 11, 12, 13 and 15. Chapters seven and thirteen are used solely for private citizens, and the remaining classifications are used by public or private firms and farmers.

Chapter Seven is often referred to as “liquidation” because bankruptcy filers are forced to sell their assets and possessions to pay of their debts. Certain delinquincies are exempt from being discharged in Chapter Seven including tax responsibilities, money owed in judgements from the courts, and loans from the government, including student loans.

The Chapter 13 classification is called “reorganization” and also forces the filers to repay their debts. Instead of liquidation, debtors and creditors agree upon a payment plan to cover the debt. The repayment periods usually last between three and five years, but can be longer or shorter.

BAPCPA forces bankruptcy filers to agree to a ‘means’ test; a financial assessment that is used to gauge the debtor’s median income. This test compares an individuals income to the state’s average income in an attempt to assess the fair amount that the individual must repay.

The bankruptcy filer must apportion most of their disposable income to repaying their debts under Chapter 13. While still under the terms of the plan, a debtor usually cannot assume any more debt unless previously approved. Many debtor’s under Chapter 13 are simply unable to meet their responsilities and then they must return to court to meet with the judge.

When bankruptcy filers fail to meet their bankruptcy requirements because they do not stick to the repayment plan, creditors go to the court and petition the judge to toss out the Chapter 13 petition. When the judge does this, he can decide to reclassify the bankruptcy as having Chapter 7 status or dismiss the petition completely. When bankruptcy petition gets dismissed, the bankruptcy filers lose the protection that bankruptcy affords them and the creditors will then begin collection actions, which sometimes includes foreclosure.

Once bankruptcy papers have been filled out, they must be filed at the courthouse. At this point, within a few weeks, the debtor’s find themselves in a 321 Bankruptcy Meeting. At this time, creditors are permitted to question the bankruptcy about the reason that they must file for bankruptcy, as well as their plan to get their heads above water and for repaying their debts.

Creditors do not always go to the 321 Bankruptcy Meeting, but they must do so if they want their notes to be put into the bankruptcy repayment plan. They petition must be filed at the courthouse within thirty days of the 321 Meeting.

The final part of the bankruptcy procedure involves appearing before the bankruptcy judge. The judge reads the filing to make sure that all necessary conditions for bankruptcy have been fulfilled, including enrollment in “credit therapy”. Then the judge will do one of three things: absolve debts by way of Chapter 7; sign-off on the Chapter 13 repayment; or toss out the entire bankruptcy petition.

This article is written for the United States readers. You are advised to seek legal counsel for the accuracy of the content herein as laws may have changed.

Today, we have 3 companies: TransUnion, Equifax, and Experian who are in charge of establishing credit history for anyone who was ever approved for a loan. This bureau will decide whether you are to be downgraded because of missed payments or credit problems.

Financing companies use this bureau to check whether a loan applicant has a bad credit history and therefore, is a high credit risk. The lower your score, the harder it will be for you to avail of further loans. However, if by chance you are approved for a loan, you will be subject to higher interest rates because of your credit rating.

Assuming you have a low rating, this does not mean you cannot work on improving it. What you need to do is fix your credit problems, clear off any delinquencies, and possibly pay off all your loans. Of course, that is easier said than done. However, if you want to be able to apply for a credit card, housing, or auto loan in the future, it has to be done. Otherwise, you will be declined.

Acknowledging that repairing your credit will take time is the first step. Then you need to prioritize your expenses.

Why not downgrade your lifestyle to fit your budget? If you are constantly eating out, try home-cooked meals for a change. If you have a large monthly mortgage on your home, why not sell your home and settle in a smaller place with lower monthly payments?

The last option you should consider is bankruptcy. This move will stay in your credit history file between 10 to 15 years, regardless if you have recovered from your financial crisis or not.

You should also think twice about getting a debt counselor. This would mean an additional expense, which you cannot afford. Your priority is lowering your expenses and paying off your bills.

The simplest way is to live within your means. Augment your income by taking on part-time jobs. Look for a higher paying job, and from now on, always pay in cash.

Having credit problems is a huge headache and can be very stressful. When it is all over, and all the bills are paid and updated, try to be more prudent in availing of credit facilities.

At this point, it is important to get the use of your credit cards under control to avoid going any deeper into debt. A big indicator that you are close to bankruptcy is that your credit cards are maxed out. People will find that using credit cards is a debt trap as it is very difficult to pay off your bill plus the high rates of interest. A good way to keep yourself in check is to never spend more than 60% of your total maximum limit. Your credit card may also break down how you’re spending your money. Look at these statements to determine where you can cut back spending to maximize the use of your dollar.

A big error that people often make is taking out a line of home equity and spending that money on frivolous items. While you are allowed to borrow money against the value of your house, this should only be done in an emergency situation and not to pay off your shopping bills. Losing your job means losing all of the benefits that come with it, including insurance that you and your family will surely need. In that situation a home equity line would be appropriate, but barring an emergency like that, avoid taking out a loan against your house.

Because of the recent downturn of the economy, it may be very difficult to find a new job that supports your family’s usual standard of living and provides the way your last job may have. Unemployment is one of the main precursors to bankruptcy, so be sure to save a bit of money for a time when it will help you avoid a very difficult decision. No matter how secure your job may be, in this economy, nobody’s job is 100% guaranteed and everyone would be wise to make preparations.

Avoid allowing anybody to convince you to co-sign their loan. By co-signing, you agreed to be held accountable in case the other person defaults, and it in no way benefits you to be on the hook for a loan that isn’t yours. This is another leading cause of bankruptcy.

To re-iterate, to avoid going bankrupt, make sure to keep tabs on where your money goes, and avoid using credit cards that will ensnare you in debt. Always save a little bit of money from your paycheck in case of emergencies and keep the value of your home intact by avoiding the temptation of a home-equity loan.

Money is what makes the world go around. It is practically impossible to do anything without spending nowadays. Even if you decide to lock yourself up in your home, you will still be accumulating bills – food, utilities, rent, or mortgage.

Before you go out shopping for credit lines, make sure you are earning, or have sufficient income coming into your household from other sources. The golden rule is never to overspend or buy impulsively.

Having bad credit is a stigma that can stay with you for several years. It is hard to rebuild credit because it takes time, patience, and a lot of control. It is something you should avoid at all costs.

How do you build an excellent credit history? First of all, get your free annual credit report from the credit bureau. Check for mistakes or false claims. Do not think it is impossible for mistakes to happen. For instance, you could have given out your credit card number online when you were making a purchase. It is possible that some unscrupulous person got hold of your number, and made several huge purchases under your name.

You have the right to call in and dispute an entry. Just make sure you can support it. After you have settled everything, try to decrease your debt. Start paying up. You know, there is nothing wrong with buying on credit as long as you can pay for it eventually. Aside from cleaning up your credit, build a savings account or fund to help you in case of emergencies. This way, you do not rely entirely on your credit to help you through the crisis.

Having good credit will automatically make you prey to other companies out there looking for a good client. Technically, you should limit your cards to a minimum. I know it looks impressive when you see a wallet stuffed with different credit cards. It makes that person seem important and rich. For me, it gives a picture of someone possibly in debt and an immature way of trying to appear mature.

Finally, establish stability in your life. It is bad for you if you cannot maintain regular income. It is also not advisable to be moving around too much, unless that is the nature of your work. Even so, you must have a home base.

Credit is great; it is convenient, but it is also powerful. It is so powerful that it can destroy your life. So, watch out for the fine print, unnecessary purchases, and living outside your budget. Then, you will be fine and able to enjoy splurges once in a while. Why not? If you have excellent credit, you deserve a reward – once in a while.

For those who are contemplating taking a cash advance, it would be prudent for them to get acquainted with the entire process revolving on cash advances and what qualifications are needed. If you don’t qualify, you won’t get the cash advance. It is as simple as that.

Do extensive research on the company which you wish to apply for a cash advance, preferably a secure company or one which someone you trusted had a previous dealing with. Deal with them in person if possible and talk to their consultants to have a feel of how well they know their business and what kind of solutions they can offer. If you are unable to find one which you can deal with face to face, then find one on the net but make sure you read reviews about these cash advance companies. Do also ensure that their website is secured with https.

When considering your application, the cash advance company will evaluate your duration of employment and last drawn salary. Being currently employed with one employer for a lengthy period would suggest that you are more likely to be able to repay your cash advance. Frequent job hoppers are less likely to qualify for cash advances though there are always exceptions to the case.

In any event, a word of caution would be necessary. You would not want to get a cash advance unless you are absolutely certain that you would be able to repay when your salary check comes in at the end of the month. Otherwise, the debt you are currently in will grow deeper by reason of the higher interest rates imposed on cash advances.

It is quite helpful when you hire a debt consolidation company in order to fix your credit by arranging a low interest loan which makes you able enough to pay off your creditors. This way you just have to make one payment of all of your loans instead of making multiple payments and keeping charge of different interest rates and payment schedules. The debt consolidation company that you will hire will contact all of the lenders which owe you their money and it will arrange you a much smaller payoff sum. This way, you will eventually end up by paying your creditors with a debt management loan. Also, the whole amount that you will pay will be far lesser than you would pay otherwise if you do not avail the option of debt management loan.

However, debt management firm works in the same way as debt consolidation firm works. Both of these firms are there to counsel their clients by providing different options to them which can reduce their financial burden and make them revive their credit and financial health. The services both of these firm offers teach you the way by which you can manage your present debts and also they will devise you the course of action by which you can revive and repair your credit.

However, when ever you are going to hire a debt consolidation or debt management firm it is advised that you take care of few things. First of all, do check out the reputation and ranking of the firm that you are going to hire. You can do it quite easily by surfing over the internet or asking your friends who have either hired them before or have know how about the market. Also, check out the firm’s competency that if it is capable of repairing your credit or not. Also check out for the complaints people have written or posted about that company, membership of debt Consolidation Company or debt Management Company with the better business bureau also tells you about the level of credence that you can lend to that firm.

One of the most obvious safeguards that consumers can ensure is to look for the secured symbol when signing on to the online banking website. This symbol is often in the form of a locked padlock and means that the website is safe and protected through various protective measures.

Banking online can be safe when you ensure that the following stipulations are met before signing in; keep your password and sign in information personal. It should not be stored within the computer, even if the computer is not shared. Should anything threaten the safety of the computer, as a customer, you want to be sure that your banking information is safe.

Many scams have come about that create replica websites which allow the customer to sign in, while the information is recorded by the wrong people. Now, these people have access to your personal sign in information, even account numbers and passwords. Once you log-in, the information is available to anyone who has created the replica website. How do we stop this problem? Before you sign on to your bank account through the internet, ensure that the website is secure and that the bank is legitimate.

Use your own personal computer. Using a public computer puts your information at risk to be discovered by the public. Avoid using a public or shared computer to perform online banking tasks, instead, wait until you return home on a personal computer that has adequate protection from viruses that may oversee information that is being inputted into the computer.

Choosing a password that contains a random variation of numbers, letters and uppercase as well as lowercase letters can safeguard your online banking experience. Be sure to choose a password that no one is able to guess and be sure to avoid password hints that are available through some programs.

Take extra precautions. When signing into online banking, many lenders allow the customer to choose security questions that must be answered each time the client logs into the online banking website. Be sure to enable this feature, as it can protect your identity, your banking information as well as your funds.

Foreclosure

Foreclosure can occur for a variety of reasons. For some people, an increase in expenses, a job loss, or even an illness within the family can mean that they are unable to meet the monthly mortgage obligations. When payments are failed to be made on the home, the truth is that the bank has the right to retain ownership of the home, until the home has been repaid in full – which means, the entire link of the home.

Homeowners need to be aware of the alternatives to foreclosure. Foreclosure is a lengthy and expensive process, and it is avoided by many lenders – as it is looked on as a last option. Many times, the lender is able to post-date the payments, adding the outstanding debt on to the term of the loan. Lenders also have the ability to lower interest rates and lengthen the payment term to decrease the amount in which homeowners are paying each month.

Foreclosure cannot occur until a notice of default has been filed with the homeowner. This often occurs after a mortgage or home payment has not been paid for three to six months, or billing periods. The homeowner has until the foreclosure sale date to rectify the situation and repay the debts to maintain the ownership of the home.

As an alternative to homeowner, there are a variety of counselling services available to the homeowner. The counsellor acts as a liaison between the homeowner and lender to negotiate a lower rate and help the homeowner to maintain ownership of their home, without the hefty price tag

A Payday Loan is one way to get your hands on money that is due to you anyway. It seems like asking for a cash advance, right? Not really. For one, you are charged high interest, so your pay will actually decrease because of the loan.

Another downside to a loan like this would be the entity offering such services. Realize that when you apply for such a loan, you will be required to submit personal and financial information about yourself. This opens you up to a lot of problems if the company you are dealing with is not secure.

I would suggest if you are intent on getting a Payday Loan, try to get it from your company or why not ask for a cash advance if the amount you need is within your pay range? This way, you do not get charged with any interest.

If the amount you need is bigger than your pay, why not borrow from a reliable friend or family member? You could also check out what the government can offer by way of low interest loans.

Let us say you have a credit problem, which is why you are considering the Payday Loan. The last thing you need is another loan to deal with. It will only compound your problem. Simply put, you cannot apply for a loan to pay for an existing loan, especially if the interest rate is the same. If the interest being offered is half that of your existing loan with better payment terms, then go ahead and pay off your existing high interest loan.

There are other options you can consider, like cutting back on unnecessary expenses. Eat at home instead of going out to restaurants. Check your electric consumption and see where you can save. If you have appliances that you habitually put on standby mode the whole day, you should realize that even if it seems off, it is not. An appliance on standby mode still consumes power.

What about a garage sale? Go through your closet and even your entire house. See what you have accumulated over the years and sort out those you do not need.

There are ways around a credit repair process that does not entail new loans. It might need more creativity, but it will be worth the effort.