Debt Consolidation Tips

For centuries one person’s loss is another person’s gain. The same is true today with the mortgage mess. The mass home foreclosures are creating wonderful opportunities for others who really want to own a home. And if you are one of those people then what are you waiting for? Home prices are down and interest rates are at an all time low.



Several years ago investors recommended that people invest in goal. How many people sat around and did nothing? And look at the price of goal today.



And if you have a poor credit history that is no excuse either. There are still loans available for people who have some credit problems. Mortgage financing restrictions are a little tighter than they were during the period that created this sub-prime mortgage mess but this should not deter one from applying for a mortgage loan. If you can’t qualify at this time, then work on improving your credit scores so you can take advantage of this great opportunity to own a home at a good price and mortgage rate.



If you have ever wanted to invest in real estate, then now is the time for that also.



I recently had a lady apply for a mortgage loan on a foreclosure home that she had found that she wanted to purchase. She had just received her $5,000 child tax credit refund. This was not a refund of taxes that she had paid in from her income but simply a free tax credit because of her two children. This money would give her enough for the 3% down payment needed for a FHA mortgage loan with some left over.



Even though this lady had a few collections on her credit report and zero credit scores, her mother lived with her and had good credit scores. Between the two of them I was able to get them qualified for a FHA mortgage loan to purchase the house.



This house was 3 Bedrooms, 2 Baths, brick with vinyl eves, a 1 car carport and on a corner lot. The house had a large yard for the children. The seller had replaced all the gas lines and installed a new Central Heating and A/C unit. Inside the house needed very few minor repairs. The interior only needed painting if you didn’t like yellow. Every room, including the ceiling, was painted yellow.



The lady was getting the house for $54,900. It conservatively appraised for $78,000. She would have and immediate $23,100 equity in the house. This is equity that could later be borrowed against for something like the children’s education. With her income she will probably never be able to save this much money by the time the children are ready for college.



With very little work on the house it would appraise for more and sell easily for the new appraised value once someone was living there and had spruced it up a little bit.



Her house payment including the escrow for insurance, pmi and taxes was only going to be $90.00 a month more than her current rent payment.

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