California Home Mortgage Loans - Bad Credit Loans

Mortgage Banks

2006-09-14T08:05:00.000-07:00

Mortgage Banks Explained

In short, mortgage banks are state-licensed organizations designed to service mortgage loans. Typically speaking, these entities utilize finances from secondary markets, such as Freddie Mac and Fannie Mae, because a mortgage bank does not collect income from deposits.

Mortgage banks exist in all sorts of sizes – some branch nationwide, whereas others operate locally. Their revenue basically comes from what is known as loan origination fees, and also from loan servicing fees, in the event they are acting as the servicer. Often times the mortgage bank will choose not to service the loan they have originated. Shortly after the loans are closed and funded, the mortgage bank can sell them to the second market, from which the mortgage bank is paid a service release premium.

Gregrey Pashby is a writer and contributor for Bad Credit Lender who specialize in bad credit loans and hard money loan information. Bad Credit Lender provides poor credit mortgage refinance loans, bad credit home loans, and hard money loans. In addition, Greg is one of the main contributors to the Coastal La Jolla Funding -- A California Hard Money Lender and 1st Access Hard Money & Foreclosures.

Mortgage Refinancing is Possible: Regardless of Score

2006-08-02T09:52:00.000-07:00

Refinancing is Possible: Regardless of Score

If you’re a homeowner looking to lower your mortgage payments, now is the time to take advantage. Interest rates are at an all time low, which means that you are capable of reducing monthly payments if you refinance your current mortgage, even if you are of bad credit. If you choose to refinance, you may end up lowering your monthly payments because you have borrowed against the value of your house.

Remember, researching your options is very important when applying for a home loan. The first option you come across is not always the most beneficial. You need to compare interest and closing rates among the options you are debating.

It is always wise to request multiple mortgage quotes that grant the borrowers an estimate of the fees and terms for the money you would like to borrow. This enables you to compare and find the best rates available. Once you find the lowest interest rates, it is likely that you have found the loan with the lowest fees, and hence the most beneficial deal for you.

Refinancing is also wise because it is conducive to building your credit because you can use the money you save to pay off multiple debts so that various lenders will trust your credit and accept your loan offers.

Gregrey Pashby is a writer and contributor for Bad Credit Lender who specialize in bad credit loans and hard money loan information. Bad Credit Lender provides poor credit mortgage refinance loans, bad credit home loans, and hard money loans. In addition, Greg is one of the main contributors to the Coastal La Jolla Funding -- A California Hard Money Lender and 1st Access Hard Money & Foreclosures.

Looking to Get a Home Loan? Bad Credit OK.

2006-06-29T09:26:00.000-07:00

Don’t let poor credit woes discourage you from finding the home loan you so desperately need. If you are looking to save both time and money, research the numerous subprime lenders online, where you can select the terms and conditions that fit your financial needs. It is a good idea to get your financing lined up before you purchase your home. This way, you can get pre-approved for the mortgage and thus speed up the buying process.

To effectively research which loan is best for you, it is important to request quotes from multiple lenders, who will offer you estimates on closing costs and monthly interest fees. With these multiple quotes, you can compare the costs and terms of each mortgage offer. If you are looking to lower the interest rate, you may wish to increase the amount of the down payment.

If you suffer from a credit score below 650, chances are you will need assistance from a subprime lender, often one who specializes in aiding borrowers with low credit. You can begin your search for a bad credit lender just like you would a conventional loan – on the internet. With sites such as California Bad Credit Lender, you can ask for quotes and compare mortgages for the lowest rates.

Gregrey Pashby is a writer and contributor for Bad Credit Lender who specialize in bad credit loans and hard money loan information. Bad Credit Lender provides poor credit mortgage refinance loans, bad credit home loans, and hard money loans. In addition, Greg is one of the main contributors to the Coastal La Jolla Funding -- A California Hard Money Lender and 1st Access Hard Money & Foreclosures.

Online Home Mortgage Loans

2006-05-19T16:14:00.000-07:00

If you are one of many homeowners suffering from poor credit, don’t give up. You are still eligible for a home loan. There are many lenders in the mortgage industry that specialize in granting loans to borrowers with bad credit. Often these types of lenders offer a wide range of options, including assistance for covering closing costs and down payments.

The first thing you should do when thinking about searching for your new home is to get pre-approved for the loan. This can be done through online bad credit lenders. To do this, all you need to do is fill out an application providing some personal information and any necessary documentation. In response, the lender will review your application and grant you a mortgage quote of the estimated monthly fees. You should obtain numerous quotes before applying for pre-approval so that you can make an educated decision as to which lender offers the most beneficial plan for your credit situation.

You may also wish to work with an online mortgage broker, who will match the buyer with a potential lender. The broker will then contact the buyer after obtaining several quotes and present him/her with the available options. The buyer will then compare rates and terms among these options and choose the lender with the most attractive plan.

Gregrey Pashby is a writer and contributor for Bad Credit Lender who specialize in bad credit loans and hard money loan information. Bad Credit Lender provides poor credit mortgage refinance loans, bad credit home loans, and hard money loans. In addition, Greg is one of the main contributors to the Coastal La Jolla Funding -- A California Hard Money Lender and 1st Access Hard Money & Foreclosures.

Mortgage Refinance Loans: Get Them While Their Low

2006-05-16T11:02:00.000-07:00

Low rate mortgage refinance loans are very attractive to borrowers because they often lower monthly payments significantly. However, refinancing may not be the solution for all borrowers. Before you apply for home loan refinance, it is imperative that you research the current mortgage rate, the tenure you plan on keeping in your home (for refinancing typically benefits those who reside in their home for at least seven years), and your credit history.

There is a plethora of lenders who offer quotes with no obligation, so don’t be afraid to say “no” and shop around before coming to a decision. If you so choose, obtaining quotes from online lenders is fast and easy, again with no obligation. Once you submit a bit of personal information, the lender will analyze your credit score, income, and the amount requested for the loan, and will reply with an initial offer. This quote includes the terms and conditions of the loan, the interest rate, closing costs, and an estimate of the monthly fees.

After receiving a few quotes, whether they are from local or online lenders, compare each option so that you can effectively choose the lowest rate mortgage refinance loan.

Gregrey Pashby is a writer and contributor for Bad Credit Lender who specialize in bad credit loans and hard money loan information. Bad Credit Lender provides poor credit mortgage refinance loans, bad credit home loans, and hard money loans. In addition, Greg is one of the main contributors to the Coastal La Jolla Funding -- A California Hard Money Lender and 1st Access Hard Money & Foreclosures.

Tips to Cope with your Credit Score: Refinancing Can Still Happen

2006-05-11T06:10:00.000-07:00

It is not uncommon for a homeowner to be misinformed about his credit score and its importance in refinancing a current mortgage. Let’s say you are a homeowner and you plan on applying for refinancing. When reviewing your application, the lender will look at your credit score and decide whether or not to approve your request. If approved, your credit score also affects the interest rate attached to your loan.

There are a number of variables that factor into and determine your credit score, which ranges anywhere between 300 and 850. You can always improve this number by maintaining low credit card balances and paying your bills promptly.

Generally speaking, your credit score is determined by outstanding debts, the length of your credit history, paying bills on time, and a few other smaller variables. Making payments on time is the best way to improve your credit score. If you have any outstanding debts, be sure to pay them off quickly. This is another great way to boost your credit and impress potential lenders. Taking time to improve your credit before applying for mortgage refinancing could possibly save you tons of money in the end.

Gregrey Pashby is a writer and contributor for Bad Credit Lender who specialize in bad credit loans and hard money loan information. Bad Credit Lender provides poor credit mortgage refinance loans, bad credit home loans, and hard money loans. In addition, Greg is one of the main contributors to the Coastal La Jolla Funding -- A California Hard Money Lender and 1st Access Hard Money & Foreclosures.

Who Do You Turn to for a California Bad Credit Mortgage?

2006-04-18T08:48:00.000-07:00

Bad Credit Loan Search Terms

2006-04-07T10:56:00.000-07:00

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California Home Mortgage Loans

2006-04-06T05:48:00.000-07:00

California Home Mortgage Loans are still quite low from a historical perspective. However, rates have been increasing for the past 8 quarters. To find out about current rates and to see how much you qualify for, contact Bad Credit Lender.

Bad Credit Mortgage Refinance Loans: Focus on Compound Interest

2006-04-03T09:59:00.000-07:00

Upon initial glance, you may look at the term “compound interest” and become confused. Hopefully the following information will help clarify this term and make your financial planning easier.

“So, what is compound interest?” you ask. Compound interest is the interest collected on the principal amount of the deposit, as well as the interest already added onto the principal during past payments. In other words, every time that interest is added, or compounded, onto the principal amount, it creates a new amount that will be further compounded next time a collection dates arrives. Simply put, compound interest applies to the entire amount, not just the principal. Because of this, over time, money slowly accumulates and the total amount of the account increases. Consequently, the amount due on the payment date increases as well. Compound interest is most commonly found in savings and checking accounts, along with interest due on loans.

There is a simple mathematical formula used for calculating compound interest, which is:

A = P(1 + r)n

-A = amount accumulated after interest in compounded

-P = principal

-r = annual interest rate

-n = number of years interest is collected

It is important to note that if the interest is being compounded more often than once per year, the value for “r” is divided by the number of times interest is being compounded (i.e. if monthly, with an interest rate of 5%, it would be 5/12).

As previously mentioned, compound interest adds additional interest money to the interest that was already paid. Therefore, with time, you will be collecting money simply by having your money deposited in an account.

Compound interest often works the same with loans, which means that the longer it takes you to repay the loan, the more you end up paying. This usually works as a major incentive for borrowers to repay their debts as quickly as possible to save money.

As is the case with most financial situations, it is important to take your time. Shop around and explore your options to find the best compound interest rates. This applies to both accounts and loans. Remember to request quotes from multiple sources, so that you can effectively compare the rates offered and choose the best one according to your situation

You may reprint this article with the URL links intact.

Gregrey Pashby is a writer and contributor for Bad Credit Lender who specialize in bad credit loans and hard money loan information. Bad Credit Lender provides poor credit mortgage refinance loans, bad credit home loans, and hard money loans. In addition, Greg is one of the main contributors to the Coastal La Jolla Funding -- A California Hard Money Lender and 1st Access Hard Money.

Bad Credit Personal Loans: Finding the Right Loan while Carrying Debt

2006-03-31T11:15:00.000-08:00

Do you feel that no matter how large your income may appear at times, it never suffices? Are you experiencing certain aspects of life that increase your monthly expenses? Do you wish to apply for a loan but are afraid that debt will disqualify you from being approved? You need not worry, for there are loans available for people in such financial quandaries -- you just need to know where to look.

Looking for the right loan can be exhausting. It is important to remember to always keep your options open when loan shopping. This is to say that your loyal family bank whom you have done business with for countless years may not offer you the best rate or plan. There are various banks in your neighborhood, and numerous private lenders and companies as well. If you are looking for a quick and easy way to be approved for a loan, you should consider doing your research online. Online lenders offer low rates to borrowers with poor credit as long as the collateral is sufficient to back the loan.

Continuing on the subject of collateral, it is imperative that you, as a borrower, have an asset of significant value and is sufficient for the lender or lending institution. The greater the collateral, the better rate you will typical receive as the lenders has no chance of losing money during the course of the transaction, and inherently lowers the risk involved in approving your loan request. Typical items used as collateral are home equity, real estate, and automobiles.

As soon as the collateral for the loan has been chosen, you need to begin the search for the optimal loan option. Be sure to not put all your eggs in one basket, and take time to visit multiple lenders. Do not be shy to ask for a quote, for this information is vital to your decision. After you have received numerous quotes, you will be able to compare them and choose the best option according to your financial needs. Remember to keep online lenders in mind when shopping for a loan, for they have a tendency to offer better rates than most other lenders.

When you are comparing loan quotes from various lenders, be sure to take your time so that you can make an educated decision that will benefit you most. Take into account the interest rates and terms of the loan quoted by each lender, and narrow it down to the best few quotes. From here you should be able to single out the loan for you, and it is now time to submit your application to this chosen lender. If for some reason you are not approved by this lender, you will have the next best quotes at your disposal.

Figuring out exactly how much to borrow may seem a bit difficult. You may wish to tack on a little extra money to the amount you have decided upon so as to aid you in paying off other debts, consolidating them into a new loan payment. During the application process, you may find that your lender offers a better interest rate if they recognize that you are planning on making your loan of the debt consolidation type. Through debt consolidation, you will be able to simultaneously lower your debts and increase your overall credit score.

Gregrey Pashby is a writer and contributor for Bad Credit Lender who specialize in bad credit loans and hard money loan information. Bad Credit Lender provides poor credit mortgage refinance loans, bad credit home loans, and hard money loans. In addition, Greg is one of the main contributors to the Coastal La Jolla Funding -- A California Hard Money Lender and 1st Access Hard Money.

Fixed or Variable Interest Rates: Which is the Best Loan Solution for You

2006-03-29T08:55:00.000-08:00

When applying for a loan, interest rate is certainly one of the most important factors to determine whether a borrower accepts a loan or continues to shop their loan. An important decision you will need to make is whether or not you want the interest rate to be fixed or variable.

Fixed interest rates are stable over the duration of the loan, whereas variable rates, the most common type, fluctuate in accordance with changes in the national interest rate. Variable interest rates are generally used for smaller loans.

Positively, fixed rates make budgeting easier and provide security against sudden increases in the national interest rate. Conversely, should the national rate decrease, you may end up paying greater interest than you would on a variable rate.

Though appealing to most, fixed rate mortgage loans aren’t for everyone. Other types of mortgage loans allow you to borrow more than you could with a fixed rate mortgage. If your stay in the home that you are borrowing against is short in tenure, then you would probably end up paying more in interest than you would if you chose a variable rate mortgage. Finally, with fixed interest rates, you are committed to that rate for the duration of your mortgage, even if the market rate drops sometime in the future.

Keep in mind that the first offer you receive is not always the best. Take your time, explore all options from many different lenders, and decide which policy best suits your needs. It is always okay to say no.

You may reprint this article with the URL links intact.

Gregrey Pashby is a writer and contributor for Bad Credit Lender who specialize in bad credit loans and hard money loan information. Bad Credit Lender provides poor credit mortgage refinance loans, bad credit home loans, and hard money loans. In addition, Greg is one of the main contributors to the Coastal La Jolla Funding -- A California Hard Money Lender and 1st Access Hard Money.

Home Loan Refinance: Why it’s Right For You

2006-02-27T10:56:00.000-08:00

With current interest rates at a record low, borrowers are debating whether or not it is wise to refinance their home loan. Place yourself in the shoes of a borrower. Typically, if your home loan carries a higher interest rate, you have good credit, and are rarely tardy in paying your bills, refinancing might be an appealing option. As always, however, you must do your homework and research all available options in order to make the correct decision according to your needs.

If you have a second mortgage out on your home, refinancing may not be the best course of action, because there is a good chance you will ultimately be paying more than you would have under the initial home loan. In general, lenders view homes with second mortgages in a rather unfavorable manner.

When applying for home refinance, a low debt-to-income ratio is very important, but not exclusive. A borrower can still find means of gaining a lender’s approval by applying for the loan through a bad credit lending firm, such as California Bad Credit Lenders.

Gregrey Pashby is a writer and contributor for Bad Credit Lender who specialize in bad credit loans and hard money loan information. Bad Credit Lender provides home loan refinance loans, bad credit loans, and hard money loans. In addition, Greg is one of the main contributors to the Coastal La Jolla Funding -- A California Hard Money Lender.

Want to Lower Your Monthly Payment? Look to Mortgage Refinance

2006-02-23T09:41:00.000-08:00

If your home has two mortgages against it, refinancing both loans into one lump loan can save you lots of money on interest fees, for it creates a single low monthly payment. Combining both mortgages enables you to qualify for lower rates than if you refinance each loan separately.

There are a few options available to a borrower seeking to lower his/her mortgage payment. It is up to the individual to do the required research so that the most beneficial option is chosen. First, you can attempt to find a low mortgage rate so that even if the duration of the loan remains constant, each monthly bill will generate a little savings. Also, you could extend the term of your loan, extending your payment period and decreasing the monthly charges.

Once you have chosen a suitable loan option, you should also shop around for the right lender, since lenders vary in operation fees, closing costs, and interest rates. You can compare loans using the APR, or even better, ask the lender for a quote based upon your personal information.

You may reprint this document as long as all the URL links are intact.

Gregrey Pashby is a writer and contributor for Bad Credit Lender who specialize in bad credit loans and hard money loan information. Bad Credit Lender provides bad credit mortgage refinance loans, bad credit home loans, and hard money loans. In addition, Greg is one of the main contributors to the Coastal La Jolla Funding -- A California Hard Money Lender.

Poor Credit? Refinance Your Mortgage and Still Save Money

2006-02-21T07:43:00.000-08:00

Believe it or not, if you are suffering from bad credit, you can potentially lower your monthly bills by refinancing your existing home mortgage. Homeowners applying for a new home loan do so in order to replace their existing loan, creating a new mortgage, which borrows money against the home’s equity. If you attain a cash-out refinancing, the lender will grant you a lump sum when the closing period arrives.

New mortgages are useful for acquiring funds so that the borrower can make home improvements, establish a savings account, and plan for retirement. Also, borrowers with poor credit can increase their credit rating if they eliminate their debts.

For most homeowners, there is not a better time than now to refinance their current mortgage. When mortgage rates are low, refinancing for a fixed rate or interest only rate may be the most beneficial. On top of this, refinancing may eliminate private mortgage insurance charges as well. It is important to keep in mind that you must do proper research – that is, add up all costs, analyze the closing conditions and policies, make sure your duration in the home is long enough, etc. – in order to decide which option is the right one for you and your credit situation.

Feel free to reprint this document as long as all the URL links are intact.

Gregrey Pashby is a writer and contributor for Bad Credit Lender who specialize in bad credit loans and hard money loan information. Bad Credit Lender provides poor credit mortgage refinance loans, bad credit home loans, and hard money loans. In addition, Greg is one of the main contributors to the Coastal La Jolla Funding -- A California Hard Money Lender.

Fixed Rate Mortgage Loans: Pros and Cons

2006-02-17T09:13:00.000-08:00

Mortgage loans that offer fixed interest rates are the most common type of loan for new home buyers. Since the interest rates are stable, long term homeowners can budget their finances accordingly because they will be safeguarded against rising interest rates. Along with fixed rates that are determined by the market, this type of loan involves little risk and offers long term low monthly payments that are protected from the effects of inflation.

Though appealing to most, fixed rate mortgage loans aren’t for everyone. Other types of mortgage loans allow you to borrow more than you could with a fixed rate mortgage. If your stay in the home that you are borrowing against is short in tenure, then you would probably end up paying more in interest than you would if you chose a variable rate mortgage. Finally, with fixed interest rates, you are committed to that rate for the duration of your mortgage, even if the market rate drops sometime in the future.

Keep in mind that the first offer you receive is not always the best. Take your time, explore all options from many different lenders, and decide which policy best suits your needs. It is always okay to say “no.”

Gregrey Pashby is a writer and contributor for Bad Credit Lender who specialize in bad credit loans and hard money loan information. Bad Credit Lender provides Fixed Rate Mortgage Loans, bad credit home loans, and bridge loans. In addition, Greg is one of the main contributors to the Coastal La Jolla Funding -- A California Hard Money Lender.

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The Basics of Debt Consolidation Loans

2006-02-15T08:26:00.000-08:00

A debt consolidation loan is a type of loan used for paying off creditors. Borrowers often take out debt consolidation loans to lower their rates and payments. One can choose between a secured loan, in which his/her home is used as collateral, and an unsecured loan.

A borrower can also choose to work with a debt consolidation program, where a third party agency is involved to negotiate lower rates with creditors. Before choosing this route, one should be sure to do the proper research; compare pay back dates, fees, and estimated monthly payments.

On a personal level, if you are unsure about which option is right for you, consider seeking advice from a credit counselor. They can break down each option in detail for you, analyzing the pros and cons according to your financial situation.

A debt consolidation loan from A Bad Credit Lender can provide you with the cash you need in order to consolidate all of your debts in one low monthly payment. A debt consolidation loan can be a great relief from having multiple credit card and mortgage bills that have to be paid each month. Instead, we can consolidate your loans into one simple payment -- less hassle, less chance to miss payments and be assessed late fees etc. Regrdless of whether you own your own home or have yet to become a homeowner, we can provide fiscal options. For homeowners, we often provide private loans based on the equity you have in your home. Our debt consolidation loans are a great alternative to high interest credit cards that can go through the roof if you go over your limit.

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Gregrey Pashby is a writer and contributor for Bad Credit Lender who specialize in bad credit loans and hard money loan information. Bad Credit Lender provides Bad Credit Debt Consolidation, bad credit home loans, and bridge loans. In addition, Greg is one of the main contributors to the Coastal La Jolla Funding -- A California
Hard Money Lender.

Bad Credit Refinancing: Yes, Even You Can Do It

2006-02-09T15:38:00.000-08:00

A recent decline in mortgage rates has driven people to refinance their existing home loans in order to lower monthly payments and/or capture a fixed interest rate. This attractive financial option is not exclusively reserved for borrowers with established credit. Homeowners suffering from poor credit may also reap the benefits of refinancing their mortgage.

Refinancing is very similar to taking out the initial mortgage, insomuch that the fees and costs are comparable. To save on charges, specifically the closing costs, it’s often wise to apply for the new home loan with your current lender, for he may waive some of the existing fees.

If the borrower wishes to take advantage of an option that requests little or no closing costs, he/she may be burdened with a marginally higher interest rate. However, the homeowner is typically still likely to benefit, especially if they plan on moving in under three years.

Another option entails the inclusion of the closing costs into the loan itself. The total amount of the loan will inherently increase, but the borrower will not have to pay the closing fees out of his/her own pocket, thus benefiting those who often find themselves low on cash (i.e. someone with poor credit).

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Gregrey Pashby is a writer and contributor for Bad Credit Lender who specialize in bad credit loans and hard money loans. Located in La Jolla, California, Bad Credit Lender provides competitive private Bad Credit Refinancing, bad credit home loans, and bridge loans. In addition, Greg is one of the main contributors to the Coastal La Jolla Funding -- A California Hard Money Lender.

Looking for a California Bad Credit Mortgage Loan? Poor Credit OK --

2006-02-08T05:27:00.000-08:00

If your credit history is anything but stellar, you may encounter difficulty when applying for a California mortgage loan. However, there are many options available for a borrower in a situation such as this. For instance, browsing the internet for California lenders and researching their specific policies and conditions will help you find the loan suitable for you. Typically, you will need to submit personal information, including credit history, so that the lenders can analyze your situation and give you a reasonable offer.

When you have selected a California home loan package, you will be required to put money down. In most cases, a larger down payment and lower interest rates go hand in hand (A California lender generally ask clients with poor credit to make an initial deposit somewhere between ten and twenty percent).

You will also need to secure the mortgage, so that the lender does that incur a risk when approving you for a loan. This is simply done through California mortgage insurance. This way, the lender can be reassured that the money he is granting you is protected. So even if you have bad credit, a California Bad Credit Mortgage Loan may be closer than you think!

Feel free to reprint this document as long as all the URL links are intact.

Gregrey Pashby is a writer and contributor for Bad Credit Lender who specialize in bad credit loans and hard money loans. Located in La Jolla, California, Bad Credit Lender provides competitive private California Bad Credit Mortgage Loans, bad credit home loans, and bridge loans. In addition, Greg is one of the main contributors to the Coastal La Jolla Funding -- A California Hard Money Lender.

Home Equity Loans: Alternative Lines of Credit

2006-02-06T06:39:00.000-08:00

The juxtaposition of increasing interest rates and declining mortgage rates encourages borrowers to seek lines of credit other than home equity loans. Nowadays, home owners often make interest payments on their home equity loans that are higher than those they are paying on their mortgage.

In response, lenders are suggesting that clients borrow more than the amount remaining on their home mortgage and putting the surplus money towards paying for their line of credit.

Unfortunately, this plan may not be for everyone. Say you are looking to sell your home within the next two to three years. The closing costs will almost certainly outweigh the amount you save from lower payments. However, one may consider a fixed rate loan in this situation if he/she has a home equity loan because in the long run, it may be more cost efficient considering the expectancy of future increases in interest rates.

It is beneficial to keep your mortgage and home equity loan separate because it forces you to pay off the equity loan so that it doesn’t become a burden down the line.

You may freely reprint this article provided the following author's biography (including the live URL link) remains intact:

Gregrey Pashby is a writer and contributor for Bad Credit Lender who specialize in bad credit loans and hard money loans. Located in La Jolla, California, Bad Credit Lender provides competitive private Home Equity Lines of Credit, bad credit home loans, and bridge loans. In addition, Greg is one of the main contributors to the Coastal La Jolla Funding -- A California Hard Money Lender.

A Primer on Bad Credit Loans

2006-01-30T10:28:00.000-08:00

A Primer on Bad Credit Loans

Once upon a time, the term "bad credit loan" was thought to be a dead end situation. Today, with Americans carrying more debt than ever before, bad credit is often a way of life for millions of Americans. In fact, recent studies have estimated that 20% of Americans would fall under the category of "bad credit borrowers." While this is obviously not an ideal situation for borrowers, it has become a fact of life for many. These borrowers must turn to bad credit loans for home purchases, refinancing, home equity lines of credit.

The term bad credit loan is actually a generic term for a sub prime or a hard money loan. Bad Credit Lenders are going to have a higher APR that a traditional or conforming bank loan, owing to the greater risk that a borrower poses. Bad Credit Loan Lenders always have a minimum loan amount, some as low as 5K and others as much as 100K. Bad credit loan terms vary as well, anywhere from 2-20 years.

Bad credit loans are typically secured with existing equity in real estate, although this may not always be required. Often times, 25% equity is required for a lender to make a bad credit loan. Unsecured bad credit loans do not require equity or security against the loan.

There are many sources for bad credit loans. The first example is for small loan amounts and is known as a check advance -- often referred to as a payday loan. In this case, the borrower issues a check against which the lender offers a bad credit loan. For larger bad credit loans, a more traditional loan process will occur -- with disclosure docs etc. These loans may take up to three weeks to process, although a private loan can take place as quickly as four days.

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Corey Senn is a Senior Partner with Bad Credit Lender, a California based private lender that specializes in hard money loans and bad credit loans. Located in La Jolla, California, Bad Credit Lender provides competitive private California hard money loans, bad credit home loans, and bridge loans. In addition, Corey is one of the main contributors to the California Home Mortgage Loan web blog.

Applying For An Online Loan: As Easy As Click, Click, Click: Part II

2006-01-24T07:26:00.000-08:00

When taking out a small business loan, be sure you know what lenders are looking for in regards to information the lender needs to make the transaction beneficial to you. In general, lenders observe four key facets: previous business experience; ability to repay the loan; collateral and personal guarantee; and finally, character. Prepare your documents carefully and organize them so that they include your business plan, balance sheet, cash flow statement, income statement, personal financial statements, tax returns, and description of the type of loan and approximate amount (including what it will be used for and how it will be secured and repaid).

For home or auto loans, you will be required to have: the name and phone number of the nearest relative not living in your household; the length of residency at your current address / ownership of the vehicle; payment amounts and methods; employment history; and the year, make, and model of the vehicle should it be an auto loan.
To ensure the approval of your loan application, you must prove to your lender that you are worth lending money to. Most importantly, if you get turned down at the first attempt, remember that you must be persistent and seek a loan from other lenders. In the end, you will find the deal that fits you best.

Gregrey Pashby is a writer and contributor for Bad Credit Lender who specialize in bad credit loans and hard money loans. Located in La Jolla, California, Bad Credit Lender provides competitive private online bad credit loans, bad credit home loans, and bridge loans. In addition, Greg is one of the main contributors to the California Home Mortgage Loan web blog.

Applying for an Online Loan: Easy as Click, Click, Click: Part I

2006-01-23T11:07:00.000-08:00

If you are skeptical about applying for a loan online, your doubts will stop here. Online money lenders for the most part offer the same services as conventional lenders, such as banks, yet often at a lower interest rate. In addition, online loans are very convenient, as you can research the loan and apply from your computer with the click of the mouse. Plus, you don’t have to worry about the confidentiality of your personal financial information – the website uses an advanced encryption feature to safeguard all of your private information.
Because online lenders run their business via the internet, they spare an expense in the form of a reduced overhead fee, and can offer loans at reduced interest rates regardless of the borrower’s credit situation.
In order to apply for a loan online, in general you will need to provide the following personal information:

Full name
Address
Phone number
Date of birth
Identifying information
Email address
Employment information (where applicable)
Monthly net income
Housing status
Automobile information (where applicable)

Gregrey Pashby is a writer and contributor for Bad Credit Lender who specialize in bad credit loans and hard money loans. Located in La Jolla, California, Bad Credit Lender provides competitive private online bad credit loans, bad credit home loans, and bridge loans. In addition, Greg is one of the main contributors to the California Home Mortgage Loan web blog.

California Bad Credit Payday Loans: Available to All

2006-01-20T11:04:00.000-08:00

If you have a steady job where your paychecks provide a constant influx of income and are in need of money as quickly as possible, a payday loan may be suitable as a solution to your financial needs.

These types of loans are very accessible. All you need to do is fill out the paperwork for the given lender and you can receive the much needed tangible cash. The way this works is you sign a company check for the amount you wish to borrow plus any handling fees that will be cashed upon a set date when you repay the loan. On this predetermined day, the lending company will deposit the check that you gave them. It’s that simple.

Typically, you can borrow up to 75% of your paycheck, but this amount is variable based on your credit history, your employer, and the lending company’s policy. Beware, though. This may seem like a great deal, but the fees are quite extravagant should you fail to pay back your loan on time. If you are on top of your payments, this is a very beneficial plan of action.

Even if you have bad credit, a payday loan may still be available to you. If you can show a solid employment history, this will certainly improve your chances of obtaining a California bad credit payday loan.

Gregrey Pashby is a writer and contributor for Bad Credit Lender who specialize in bad credit loans and hard money loans. Located in La Jolla, California, Bad Credit Lender provides competitive private California Bad Credit Payday Loans, bad credit home loans, and bridge loans. In addition, Greg is one of the main contributors to the California Home Mortgage Loan web blog.

Poor Credit Loans: Focus on Giving Your Own Business A Jumpstart: Part I

2006-01-17T07:39:00.000-08:00

Give your own business a jumpstart

Before undertaking a personal business endeavor, you must be financially strong so that your upstart project doesn’t collapse. The growth of the new business depends heavily upon a steady cash inflow.

A business loan is a great way to obtain the finances you need to get your business properly off and running.

Business loans are designed to aid the process of starting new and/or enhancing established businesses. They provide the funds necessary for making purchases, payments, and rent fee.

Gregrey Pashby is a writer and contributor for Bad Credit Lender who specialize in bad credit loans and hard money loans. Located in La Jolla, California, Bad Credit Lender provides competitive private Poor Credit Loans, bad credit home loans, and bridge loans. In addition, Greg is one of the main contributors to the California Home Mortgage Loan web blog.

Bad Credit Mortgage Lenders: Construction Loans - First Home Loan: Part II

2006-01-13T10:12:00.000-08:00

A new home construction loan is set up in stages, which are either monthly or in accordance with the building process. During the latter stages, the amount of funds used during the specific period of time is calculated and given to the lender so that the workers can be paid.

Before applying for a construction loan, you must be approved for a residential mortgage in order for construction to begin. Stated income construction loans provide funding to help you build your new home, and do not require verification of your income, whether you are having trouble verifying it, or you simply choose not to disclose that information to the lender. In turn however, the interest rates, and subsequently, the down payment, of stated income construction loans may be a bit higher than that of any other type of new home construction loans because there is more risk involved when the income is not verified. The advantage of this type of construction loan, besides the lack of need for verification, is that these loans tend to be approved at a much faster rate.

Gregrey Pashby is a writer and contributor for Bad Credit Lender who specialize in bad credit loans and hard money loans. Located in La Jolla, California, Bad Credit Lender provides competitive private home improvement loans, bad credit home loans, and bridge loans. In addition, Greg is one of the main contributors to the California Home Mortgage Loan web blog.

Bad Credit Mortgage Lenders: Construction Loans - You and Your First Home :: Part 1

2006-01-09T12:11:00.000-08:00

Picture it. Your first home. Your dream home. The home that you, yourself, are going to construct. However, you find that you are in a bit of a financial bind. There is no need to fret; the funding for your new home is available through various new home construction lenders.

Although construction loans can be issued to both owners and builders, some lenders are a bit reluctant about lending to inexperienced builders. The loan sometimes includes the cost of the land on which the new home is built. In short, construction loans set up a line of credit that pays the suppliers and subcontractors while the home is being built, making them happy.

Gregrey Pashby is a writer and contributor for Bad Credit Lender who specialize in bad credit loans and hard money loans. Located in La Jolla, California, Bad Credit Lender provides competitive private California hard money loans, bad credit home loans, and bridge loans. In addition, Greg is one of the main contributors to the California Home Mortgage Loan web blog.

Bad Credit Mortgage Refinance Loans: Suffering from Bad Credit

2005-12-22T13:47:00.000-08:00

Bad Credit Mortgage Refinance Loans: Suffering from Bad Credit

A look at Mortgage Refinance

Suppose that you are a home owner and have an existing mortgage or loan on a certain piece of property. Interest rates are always changing and, during certain cycles of the market, you notice that you could be saving money on monthly payments by taking advantage of these lower interest rates. The way you do this is through refinancing.

Refinancing is a term that refers to when property owners apply for a loan that is intended to replace their existing loan, and is secured by the same assets. The most common form of refinancing is on home mortgages. If you happen to suffer from a low fico score or bad credit, this would be known as a bad credit mortgage refinance loan.

If you have been looking for a way to reduce your interest rate, pay off other debts, vary the length of the period of your payment obligations, reduce risk, and/or liquidate a portion of the equity that you have accumulated as a home owner, mortgage refinancing is an excellent way to accomplish this goal.

Seek advice from a financial specialist - someone familiar with your existing home loan - before you make your decision. They can help you calculate the difference in monthly payments that you will save (minus the additional closing costs involved in the mortgage refinancing) so you can evaluate the savings over the term of the loan.

Greg Pashby is a Senior Writer and Contributor for Bad Credit Lender, a California bad credit and Hard Money Lender.

California’s Housing Market Helps Home Mortgage Loan Industry

2005-12-19T10:48:00.000-08:00

The California housing market, while cooling down somewhat over the past year, still helped drive job growth in the state. Much of this growth was in the mortgage industry, as well as the construction industry. In fact, real estate agencies and mortgage loan companies added nearly 1500 jobs in November of 2005. However, in San Diego county, the mortgage industry lost workers as financial and loan companies are finding it difficult to maintain the job levels that existed during the boom market of the past five years. This is a trend that many analysts say will continue, especially in once red hot real estate markets such as San Diego and Phoenix.

California Real Estate Market
Many economic analysts, while hopeful about the job growth in November, are worried about the real estate sector. If real estate companies and construction companies continue to shed jobs over the coming year, it will certainly have an effect on the number of jobs in the state, as well as the strength of the economy.

Corey Senn is a Senior Partner with Bad Credit Lender, a California based private lender that specializes in hard money loans and bad credit loans. Located in La Jolla, California, Bad Credit Lender provides competitive private California hard money loans, bad credit home loans, and bridge loans. In addition, Corey is one of the main contributors to the California Home Mortgage Loan web blog.

The San Diego Condo Market: Number Two and Rising?

2005-12-14T15:26:00.000-08:00

Many of the top commercial real estate firms assert that the combination of job growth and a diminishing supply of rental housing will make San Diego the second strongest apartment market in the country during 2005 and 2006.
This prediction stems from the recent report on America’s apartment and condo market, where they rank 42 metro areas based on job growth, vacancy rates, construction, affordability, and rent hikes (sudden increase in prices). San Diego claims its spot right behind the Riverside-San Bernardino area and the second strongest market in the nation. Southern California holds four of the top five spots, making it the country’s hot spot.

The reports also predict that rent would increase six percent in the Riverside-San Bernardino market this year, a rent spike that experts are not forecasting for San Diego County. According to MarketPointe Realty Advisors, a local real estate research firm, the rate of rent growth in San Diego has been decreasing. On average, rents increased three percent in the San Diego market last year, down from four percent in 2003, and six percent in 2002. Experts say that the recent trend of condo conversions – in which the developers upgrade the apartment and put it on the market for sale as a condo – is keeping the rent hikes from becoming unreasonable. Apartment owners are afraid to raise rent on their property because of the high concentration of condo activity. Owners fear that a rent hike will cause renters to become buyers.

San Diego’s strong market can be accredited to the area’s recent trends, including job growth, low vacancy rates, and a decrease in apartment supply. Real estate experts maintain that alongside Miami, San Diego is the only metro area in the country where the supply of apartments is declining. Apartments are inherently converted into condos faster than new ones are being built. This fact, juxtaposed with a growing population, may cause the vacancy rates to become even lower, leading to a further increase in demand for condos in San Diego. Another facet that bolsters the strength of the San Diego market is the number of investors that are buying condos, both natural and converted, some of which will end up reappearing back onto the rental market.

Given these trends, will San Diego stop at number two? Or will we see Riverside-San Bernardino county dethroned as the top condo market in the nation?

Greg Pashby is a Senior Writer and Contributor for Bad Credit Lender, a California bad credit and Hard Money Lender.

Understanding Foreclosure and How To Avoid it

2005-12-02T11:28:00.000-08:00

What it is: A foreclosure is the repossession by a third party of an owner’s property
- Usually a collection of a debt owed by the owner.

Why it happens: There are many circumstances in which a foreclosure may occur.
- Negligent mortgage payments – the mortgage broker and holders confer with the property owner and the trustee, who is usually a lawyer.
-If the property happens to be insured, the company may offer assistance and/or present the owner with alternatives.
-The property is appraised to determine its market value.

What is done with property that has been foreclosed: In most cases, the property is resold at a significantly lower price, especially if the property is simply based on the taxes, interest, and other penalties owed.
-The property owner does have the right to pay off his debts up to the point of the sale. He must prepare a pay-off statement, along with the negligent payments, lawyer fees (which usually averages out to 5% of the remaining balance of the original loan), and numerous other fees issued by the mortgage company.
-The owner must confront both the payments due and also the legitimacy of the charges issued against him, as the company may attempt to charge him with false fees.
-The trustee, or lawyer, usually challenges the allegedly false fees.

Greg Pashby is a Senior Writer and Contributor for Bad Credit Lender, a California bad credit and Hard Money Lender.

The Truth Behind Protection Insurance: You and Your Loan

2005-11-30T14:21:00.000-08:00

Background:

If you are planning on applying for a loan in the near future, chances are that you will be offered a type of insurance intended to protect your payments in times of emergency. Especially when dealing with big loans, this may seem like a very good idea. However, let's observe this situation more carefully before we make our decision.

The Cons:

Because the lending business is becoming more competitive, lenders must find a way to turn a profit, despite the declining interest rates. They do so by offering tags to the loan -- one being payment protection insurance. The offer, although appealing, is often just as expensive as the interest you are required to pay on your loan.

The Pros(?):

As the technological revolution continues, people fear the possibility of losing their jobs, and therefore are forced to believe that protection insurance is necessary. What we must understand, in contrast, is that once an emergency presents itself, it is very tough to get the policy to pay its dividends on your behalf. Because of this, it is very important that, before we accept such an offer, we carefully read the policy so that we understand exactly what it does and does not cover. Remember, most companies use any excuse, no matter how petty or remote it may seem, to avoid payment.

A Word of Advice:

Keep in mind that the first offer you receive is not always the best. Take your time, explore all options from many different lenders, and decide which policy best suits your needs. It is always okay to say no.

Greg Pashby is a senior writer and contributor for Bad Credit Lender.

Hard Money Lending In a Nutshell

2005-11-29T10:23:00.000-08:00

The basics behind hard money: Hard (Private) Money Lending is defined as loans made between an individual, often the owner of a business or property, and a private lender who is unaffiliated with a traditional lending institution.
-“Hard Money” means that the loan is protected by the "hard" equity in real estate.
-If you are lacking in financial collateral (equity), or have poor credit, it is nearly impossible to obtain a hard money loan.
-Because the hard money lender knows that the borrower will have the money for a brief period of time, hard money loans are issued at a high interest rate with a high down payment.
-These stipulations have created a bad rep for this type of loan. In reality, the borrowers view hard money lending as a savior, often generating upwards of $100,000 in equity from a foreclosure.

The reasoning: Here are some of the reasons why an individual would want to borrow from a hard money lender.
-Preventing a foreclosure
-Buying and remodeling a dilapidated property/home
-Private business endeavors
-To improve their credit so they can receive loans in the traditional sense (i.e. banks, etc.)

The action: If your credit score is below 500, your loan will need to be from a smaller investment firm.
-Often times, the mortgage officers at the banks are paid solely to tell you “yes,” even if your credit score is below 500. In truth, they have no intention on getting you the loan, and are therefore wasting time that you cannot afford to throw away.
-California Hard Money Lenders will not waste your time.

Greg Pashby is a senior writer and contributor for Bad Credit Lender.

CALIFORNIA BAD CREDIT LOAN – FOCUS ON HOW TO RAISE YOUR CREDIT SCORE PART II

2005-11-22T15:55:00.000-08:00

Lower Your Ratio of Revolving Debt:

If you can stay between 10-30% of your maximum credit limit on each credit line, and you do not exceed 50% on any credit line, your credit score will not be adversely affect. This can be difficult, especially when you are transferring debt to low interest credit cards, must make a large purchase using credit, etc. From a credit score perspective, lowering your ratio of revolving debt will lead to a higher score than consolidating everything into one credit line.

A good move is to convert as much revolving debt to installment payments at least 45 days prior to making a large purchase such as a car or buying a home.

Maintain 3-5 credit lines in order to establish credit, establish your ability to make monthly payments and to boost the amount of credit that lenders are willing to extend to you.

One way to begin to establish credit is to become an authorized signatory on a parent’s credit card. As long as the minimum balance is paid each month, the signatory’s credit will be established – even if they do not personally use the card.

Be able to access credit lines online or at least through monthly statements. This is especially true for student loans, which are notorious for being reported multiple times – creating the appearance that a borrowers monthly payment obligations are higher than they really are.

If you plan to make a large purchase or takeout a large loan, avoid checking your credit multiple times as this will slightly lower your credit score. The best move is to ask for a copy of your credit from a mortgage broker, for instance, if they are going to pull your credit. Each subsequent financial institution will accept your copy if it has been made within the last 30 days.

Length and Levels of Credit:

Both the length of time that you have had your lines of credit, as well as the amount of credit extended to you, will affect credit score. Length of time is important for credit agencies as it reflects a stability in your relationship to creditors. This is why it is a good idea to hold onto credit lines that have high credit limits and have been open for many years as they look good to creditors and improve your ratio of revolving debt.

Levels of credit is important because it shows that you generate income -- the higher your income, the more credit will be extending to you. This may come in very handy when you are looking to make that first big house purchase.

Corey Senn is a Senior Partner with Bad Credit Lender, a California based private lender that specializes in hard money loans and bad credit loans. Located in La Jolla, California, Bad Credit Lender provides competitive private California hard money loans, bad credit home loans, and bridge loans. In addition, Corey is one of the main contributors to the California Home Mortgage Loan web blog.

CALIFORNIA BAD CREDIT LOAN – FOCUS ON HOW TO RAISE YOUR CREDIT SCORE

2005-11-21T10:55:00.000-08:00

Before we discuss how to raise your credit score, let’s take a quick look at how your credit score is calculated. The major determinants of credit score are the following: on time (or late) payment of financial obligations and debts (35%), your ratio of current revolving debt (ex: credit card balances) to the total available revolving credit (ex: credit limits) (30%), your length of credit history (15%), your types of credit used (installment, revolving) (10%), and your credit levels obtained in past (10%).

Arriving at your credit score is based on the previous formula, although there are steps you can take to augment these variables. Let’s take a look at each variable with a focus towards what is in your power to help you raise your credit score.

On time (or late) payment of financial debt:

Making sure you pay your bills on time is extremely important when it comes to maintaining a high credit score. Any payment that is more than 30 days late can affect your score. (Note: if you get a bill on the 1st of the month but it doesn’t come due until the 15th, it does not become 30 days late until the 15th of the following month.) Once a bill is 30 days past due, the issuing creditor can report this information to the credit bureaus. Typically, however, creditors will not report damaging credit information to the bureaus until 60 to 90 days after it is past due.

If a borrower has limited funds one month and must decide on whether to pay Bill A or Bill B, the smart move (less damaging to your credit score) is to pay the higher of the two. Also, avoid declaring bankruptcy as it will affect your credit score for at least 7 years. The better move for most borrowers is to work with a credit counseling service that can help improve your credit score.

Corey Senn is a Senior Partner with A Bad Credit Lender, a California based mortgage lender that specializes in hard money and California bad credit loans.

CALIFORNIA BAD CREDIT LOANS – EXPLORING FICO SCORES

2005-11-11T16:09:00.000-08:00

CALIFORNIA BAD CREDIT LOANS – EXPLORING FICO SCORES

An individual’s credit score is a number that ranges from 850 (perfect) to 300 (very poor) and is used by financial institutions to judge the level of risk of a borrower. Lending institutions use credit scores to determine interest rates and credit limits for a borrower. A borrower’s credit score is based on a number of factors within a credit report. By far, the most popular credit score is FICO, which is determined by the Fair Isaac Corporation. The three major American credit reporting agencies (Equifax, Experian and Trans Union) all use variations on this scoring formula under different names, the best-known of which are the Beacon score and the Emperica score.

Determinants of a FICO Score --

• On time (or late) payment of financial obligations and debts – 35% • Ratio of current revolving debt (ex: credit card balances) to the total available revolving credit (ex: credit limits) – 30% • Length of time of credit history -- 15% • Types of credit used (installment, revolving) –10% • Credit levels obtained in past – 10%

(Note: Current income and employment history do not influence a FICO score. Other factors can affect a borrower’s FICO score. Any outstanding balance due to a tax lien, court judgment etc. will negatively affect the score. Excessive credit card accounts or consumer finance accounts will similarly lower the FICO score. Finally, lots of recent credit checks will lower the score.)

California Bad Credit and FICO If you are below a 560 FICO score, you are considered to have bad credit. Bad credit in states such as California makes it difficult to acquire mortgage loans that are typically in excessive of $100,000. Private money lenders are often the only lenders that will loan to borrowers whose FICO score is under 600. However, for borrowers with a sub par FICO score, there are companies that will work with you to improve your FICO score.

Corey Senn is a Senior Partner with Bad Credit Lender, a California based private lender that specializes in hard money loans and bad credit loans. Located in La Jolla, California, Bad Credit Lender provides competitive private California hard money loans, bad credit home loans, and bridge loans. In addition, Corey is one of the main contributors to the California Home Mortgage Loan web blog.

Bad Credit Loans Questions & Answers -- Part II

2005-11-08T08:36:00.000-08:00

Q: What if I have damaged or bad credit as well as a low FICO score?

A: The majority of bad credit borrowers apply for a bad credit loan due to damaged credit along with a lower than normal FICO score The whole point of hard money or private loans is to provide a loan to an individual with past, recent, or current credit issues so they can rebuild their credit and eventually refinance to a more traditional type loan.

Q: What is my FICO score and how can I find out what mine is?

A: A FICO score is a basic credit score that estimates the creditworthiness of a borrower and is used by financial institutions to determine credit limits and interest rates. FICO scores are held by the three major U.S. credit agencies (Equifax, Experian and Trans Union) and all vary slightly depending on the formula used to generate the score.

FICO scores range from about 300 to 850. A score above 720 is considered to be "good credit," while a score below 600 is considered to be fair to poor. Conforming lenders want to see a credit score of usually 640 and higher. High risk lenders will look at credit scores as low as 500, as long as the borrower has 25% or higher equity in a property for collateral.

Q: How do I Apply for a Bad Credit Loan?

A: Do a search on the internet for “bad credit loans” or “bad credit lenders” and will find different bad credit lenders that offer bad credit loans in various states. Then either call them and explain your situation to them or fill out their short online application to be considered for a hard money loan. Be sure to read the language of the loan documentation carefully to protect your self from predatory lending.

Corey Senn is a Senior Partner with A Bad Credit Lender, a California based mortgage lender that specializes in hard money and bad credit loans. Located in La Jolla, California, A Bad Credit Lender provides competitive private hard money loans, California HELOC loans, and bridge loans. In addition, Corey is one of the main contributors to the California Home Mortgage Loan web blog.

Bad Credit Loan Question & Answer -- Part I

2005-11-07T08:59:00.000-08:00

Q: What is a private investor and how do they differ from a hard money lender or a subprime lender?

A: A private investor is an individual who lends out their own funds to borrowers who are unable to obtain a loan from a traditional lender such as a bank. It is also possible for private investors to pool their money into a fund that lends out money on a larger scale. Private investors are often wealthy or retired individuals who want a better return on their investments than they could expect to make in the stock market or other investment vehicles.

A private investor is essentially the same thing as a hard money lender. A private lender differs from a subprime lender in that the latter still funds loan through a lending institution such as a bank, although the interest rate is higher than a traditional conforming loan.

Q: Why would a bad credit lender fund my loan when traditional banks would not?

A: Hard money lenders, sub prime and bad credit lenders are often referred to as “high risk lenders.” These lenders have a unique understanding of specific types of real estate situations and markets. As long as the lending situation fits into the lenders comfort zone, they will usually make the loan. It isn't that a bad credit lender gravitates towards overly risky loans or situations. Rather, there are additional safeguards in place for a bad credit lender. Namely, a borrower must have a 20% or higher equity stake in a property to qualify for a bad credit loan -- the loan is therefore secured by a larger property ownership portion than many traditional loans.

In addition, the bad credit lender receives a higher rate of return than a bank would with a traditional conforming loan. The greater the risk for the lender, the higher the interest rate for the borrower. If one or more traditional lending institutions deny a borrower’s loan because of credit problems or a small level of liquid assets to use as collateral, a borrower will need to apply with a subprime, hard money or bad credit lender.

Q: If I qualify for a hard money loan, is there a way to eventually work into a normal loan?

A: Of course. A bad credit loan should be a short term loan – anywhere from several months to 2 years. After a borrower has spent a year or 18 months paying off their private loan, our mortgage team will try to transition you into a subprime or alt A loan. Hopefully, this is enough time to rebuild your credit and get on a more stable footing financially.

Q: What kind of financial documentation does a borrower have to show to qualify for a bad credit loan?

A: While the type of documentation needed to secure a loan will vary from lender to lender, most require either bank statements or income tax returns. The lender will usually need to see an appraisal of the property, as well as the title to make sure that the borrower is indeed the owner and to see if there are any existing liens or legal issues with the property in question. Each bad credit lender will analyze the necessary documents and then decide whether to provide the loan.

Corey Senn is a Senior Partner with A Bad Credit Lender, a California based mortgage lender that specializes in hard money and bad credit loans. Located in La Jolla, California, A Bad Credit Lender provides competitive private hard money loans, California bad credit loans, and bridge loans. In addition, Corey is one of the main contributors to the California Home Mortgage Loan web blog.

What you Should Avoid in the Months Before a Home Purchase -- Part II

2005-11-02T18:57:00.000-08:00

2) Keep Your Cash and Assets Where They Are
Before approving your loan, the lending institution will review your financials (bank statements -- both checking and savings, 401Ks, retirement accounts, Stocks, Bonds, Mutual Funds, certificates of deposit, etc.) to determine how a borrower is going to come up with their down payment and/or closing costs. Most lending institutions require 2 to 3 months of statements for any liquid assets that a borrower holds. This gives the lender a better idea of how much money the borrower has and insures that they have a good, stable history on these accounts.
One of the red flags that a lending institution looks for is an unusual amount of shuffling of funds between accounts in the months prior to a home purchase. The reason is that a borrower may want to create the allusion that they more assets than they really do by shuffling funds to generate strong financial statements for each of their accounts. Over a three month period, however, it is very difficult to maintain the level of funds for all accounts by shuffling.
Many borrowers may be shuffling funds for completely innocuous reasons (a money manager left a fund, an account is closed, etc.). In this case, most banks ask the borrower to show the lending institution the paper trail or deposits and withdrawals between the accounts to alleviate any concerns that they may have.This can be a frustrating experience if the cancelled checks, deposit receipts, and other seemingly inconsequential data, which could get quite tedious.
It is a good idea to try and keep any shuffling of funds between accounts to a minimum. as it increases the chance for mistakes to be made or may look like you are trying to run from a difficult situation. The bottom line is to maintain stability in all of your financial dealings and
3) Switching Employment
In most cases, changing jobs will not adversely affect how a lending institution views your level of risk for a home loan. This is not the case if, for instance, you become self employed and cannot show a bank that you have a monthly level of income. As long as your new job commands the same level of income that your previous one did, most lenders will see this as a wash -- if not an improvement.
The point to all of these recommendations is stability. Change opens borrowers up to silly mistakes among your accounts, the allusion of trying to hide certain financials, etc. This is the last thing that a lending institution wants to see when they are trying to decide whether to loan money to a borrower. So, relax, don’t do anything drastic or out of the ordinary in the months preceding your home loan. Good luck and happy house hunting!

Corey Senn is a Senior Partner with A Bad Credit Lender, a California based mortgage lender that specializes in hard money and bad credit loans. Located in La Jolla, California, A Bad Credit Lender provides competitive private hard money loans, California bad credit loans, and bridge loans. In addition, Corey is one of the main contributors to the California Home Mortgage Loan web blog.

What you Should Avoid in the Months Before a Home Purchase -- Part I

2005-11-01T15:23:00.000-08:00

Buying a home is a big step and there are some definite no-nos to avoid so that your home buying experience isn't something that makes you want to jump off the nearest bridge. While many people assume we are talking about the shopping around and making an offer period no-nos, we are actually referring to several months prior to your home buying experience.

1) First Off: Don't Blow Your Credit with Additional Debt
One of the integral decisions for any lending institution is a borrower's loan rate. This rate is decided upon based on your credit score, assets and financials, amount of down payment, as well as numerous other potential factors. Any major purchase that you make or expense that you incur (car, boat, wedding, electronic equipment, vacations, etc.) can affect the amount of debt that you are carrying and can adversely affect your loan rate. (Since your loan rate can be with you for many years, it makes sense to really focus in on how to keep this as low as possible.)
A Note on Credit Card Debt: If you don't own a home, most of your debt will be from credit cards. The way a bank looks at credit card debt is as follows: they take your total credit limit on each card and assesss how much debt you are carrying. As long as the debt on each card is less than 50% of the credit limit, a bank does not look unkindly upon it. However, once your debt exceeds 50% of your credit limit on each card, your credit is adversely affected.

Corey Senn is a Senior Partner with A Bad Credit Lender, a California based mortgage lender that specializes in hard money and bad credit loans. Located in La Jolla, California, A Bad Credit Lender provides competitive private hard money loans, California bad credit loans, and bridge loans. In addition, Corey is one of the main contributors to the California Home Mortgage Loan web blog.

California Real Estate Issues -- #1

2005-10-28T11:26:00.000-07:00

California Real Estate Issues -- #1

In an ongoing series, we explore some different questions relating to California real estate and California home mortgage loans.

Trends Realting to "When are in interest rates going up?" -- Allen Greenspan is going to be replaced, this is certainly going to be high on the agenda of Bush once his Supreme Court nominee is confirmed in the high court -- with the recent setback of Miers, this is going to be extended -- but not forever. Greenspan's replacement could be a shock to the system. It is therefore a wait and see game, however, with Greenspan raising short term interest rates for the past six quarters we may see a slow down in rising short term rates with this new Fed chairman.

Another issue, especially in counties such as San Diego, is condo conversions – some of the people who initially purchased them are starting to sue the original sellers over leaky rooks, cracks in the pavement etc. It is often easy for people to forget that the condos they purchased are 20 years old -- just because they have a brand new coat of paint doesn't mean they are new from the foundation on up. The big issue for whether you have a legitimate case for litigation is whether the issues were disclosed at the time of the sale. If they were, you cannot claim that subsequent problems with the foundation or electrical are the responsiblity of the previous seller.

Do Upgrades Matter In the Appraisal of a Property when Interest Rates are so Low?

The condition of the property will certainly matter when it comes to appraisal values. Of course, if your loan is with a Bank like Wells Fargo, they may simply do an appraisal based on market comps and never see the property – especially if the refi is through them. So if you have made significant improvements to the property, make sure that you get a comprehensive appraisal that may run you a couple hundred dollars more, but will pay off when it comes to putting your house on the market.

What is Homesteading Advantages and Disadvantages

Homes is a way to preserve some of your equity and protect it from creditors. You get a homeowners exemption except that it is fairly small when compared to the jump in value of a home in San Digo or California over the past five years.

All of the questions and answers posted in this series are meant as general information only and should not be constued in any way as legal or real estate advise. Always consult a qualified professional when making any decisions regarding any real estate, property or mortgage transactions etc.

Corey Senn is a Senior Partner with A Bad Credit Lender, a California based mortgage lender that specializes in hard money and bad credit loans. Located in La Jolla, California, A Bad Credit Lender provides competitive private hard money loans, bad credit home loans, and bridge loans. In addition, Corey is one of the main contributors to the California Home Mortgage Loan web blog.

TRUST DEED INVESTMENTS

2005-10-21T12:33:00.000-07:00

What You Should Know!!!
(for CA TD’s only)

Your investment is secured by a deed a trust recorded against the title of the borrower’s property. There is some risk and there is no insurance from any Federal Agencies, however the payments are specific and for a predetermined time period. You can make between a 10 – 15% on your investment annually secured by a deed of trust. Here are a few tips for investing in trust deeds.

Seven Essential Elements of Trust Deed Investments:

1. Knowledge, experience, and integrity of the MLB (Mortgage Loan Broker) through whom the transaction may be arranged
2. Market value and equity in the Property and the security for your loan
3. Borrower’s financial standing and creditworthiness
4. Escrow process involving the funding of the loan or the purchase of the note
5. Documents and instruments describing, evidencing, and securing the loan
6. Loan servicing provisions, authority and compensation
7. Recovering your investment when the borrower fails to pay

Working with an established company or mortgage broker goes a long way. Look out for people who do not take their time to cultivate a relationship. Experienced brokers understand the dynamics of a trust deed investment and they understand the importance of building a long-term relationship with the investor. For more information regarding trust deed investment call Craig Cecilio, President/CEO of Coastal California Funding Group located in La Jolla, CA at 858-456-2423.

Craig Cecilio is a Senior Partner with Coastal La Jolla Funding of La Jolla, Ca.

For more information, visit his website at www.coastallajollafunding.com

WHO ARE YOU GOING TO CALL? WHY A HARD MONEY LENDER MIGHT BE YOUR FIRST STOP: PART II

2005-10-20T10:38:00.000-07:00

FLIPPING PROPERTIES
Another group who may use hard money lenders as a starting point as opposed to a last resort are real estate investors looking to "flip properties." If an investor locates a property that they deem to be a great value, they might need quick and secure financing to take buy, renovate and sell the property quickly. Anyone looking to flip real estate does not want to hold on to the property for a long period and the short term loan from a hard money lender will accommodate this need. The loan may also be structured as interest only, keeping the expenses low. Once the property is sold by the individual who is flipping the property, the principal is paid back and the profit is kept or reinvested into the next project.

A BORROWER IN FORECLOSURE
One final scenario of hard money involves someone who finds themselves in foreclosure. Once a homeowner falls behind on their house payments, most lenders will not provide them with a loan or restructure their current loan. Occasionally, an individual who is facing foreclosure will obtain a hard money loan to avoid foreclosure proceedings and use the time to sell the property.

The question remains why would hard money lenders loan money if a traditional bank wouldn't even consider such a gamble. The answer is two fold. The first is that hard money lenders charge higher rates than traditional lending institutions. The second is that hard money lenders require the borrower to have at least 25-30% equity in real estate as collateral. This insures that if the borrower defaults on their loan that the lender can still recoup their initial investment.

A hard money loan is essentially a marriage between a borrower in a tough spot (either from a time sensitive perspective or due to their poor financials) and a lender who is risk adverse and is willing to take a chance for a higher return. While hard money loans may be a last resort for many, there are plenty of scenarios when hard money is the only way to go.

Corey Senn is a Senior Partner with A Bad Credit Lender, a California based hard money loan and subprime loan lender in La Jolla, Ca.

WHO ARE YOU GOING TO CALL? WHY A HARD MONEY LENDER MIGHT BE YOUR FIRST STOP: PART I

2005-10-19T13:00:00.000-07:00

It isn't uncommon to hear mortgage industry insiders refer to hard money lenders as a last resort. While this may be true to the extent that many borrowers who solicit loans from hard money lenders do so as a last resort, there are many cases in which a hard money lender may be sought before a traditional banking institution. Let's take a look at some scenarios where a hard money lender might be a first stop instead of a last resort.

COMMERCIAL REAL ESTATE DEVELOPMENT
Let's say a real estate developer has sunk $10 million into a development deal and originally planned to sell units in January and would then begin to recoup their investments dollars from the project. As is the case with many such endeavors, delays may push back the beginning sales date or the project may go over budget, leaving the developer with a cash negative situation. The developer now must take out a bridge loan in order to get through his cash poor period in order to "survive" until the project begins to realize a cash positive position. With a traditional loan, the bank would not push through the loan for the borrower for four to six weeks. The developer would default on his original loan or would not have cash on hand to finish up the project. The developer needs cash right now and oftentimes needs the cash for only a two to four month period. In this scenario, a hard money lender would be the perfect partner because they can provide a loan quickly and efficiently.

REHAB INVESTOR
Another example of a hard money scenario is a rehab investor who needs a loan to renovate run down homes that are non-owner occupied. Most banks would run from this loan because they would be unable to verify that the rehabber is going to be able to promptly sell the units for a profit -- especially with no current tenants to provide rent to handle the mortgage. The hard money lender would, in all likelihood, be the only lender willing to take on such a project.

Corey Senn is a Senior Partner with A Bad Credit Lender, a California based hard money loan and subprime loan lender in La Jolla, Ca.

1031 Exchange -- New Holding Period

2005-10-18T15:10:00.000-07:00

As many investors are aware, property acquired in an IRC 1031 exchange may be converted to the taxpayer’s principle residence. In short a taxpayer could buy property in an exchange, having deferred the gain of another investment property, and later convert that property to a principle residence. The previously deferred taxes may never be owed when the property is subsequently sold because the taxpayer is entitled to a principle residence exclusion under IRC121. ($250K separate; $500K if jointly held)

IRC 121 provides the taxpayer with an exemption from taxes on the gain from sale of the principle residence if the taxpayer used the property for a principle residence for periods aggregating 2 years or more within the previous 5 year period. The new legislation HR 4520 provides as follows: If a taxpayer acquired property in an exchange to which a IRC1031 applied, IRC121 shall not apply to the sale or exchange of such property if it occurs during the 5-year period beginning with the acquisition of such property. Simply stated, the taxpayer must now have held title to the IRC 1031 property for more than 5 years (i.e. 5yrs + 1day) and used the property for 2 of the 5 years as a principle residence.

A real example would be to assume you have a parent’s property that you inherited. You decide to rent it out for income since you already have a principle residence. You decide you want to live at the beach when you retire. A strategy could be to sell your income property (parents old home) and to buy a beach house to later move into. A 1031 exchange would defer the gains from the sale of your income property and allow you to exchange them for a new beach house investment property.After two years you could sell your principle residence (exempting 250-500K gains on that sale) and move into the beach house for more than 5 years and avoid the capital gains altogether.

Gary Smith is the owner of Whitecap Investments of Laguna Beach California, providing expert advice in helping clients evaluate and act on their personal financial goals for retirement.

Bad Credit Lender Website Launched

2005-10-17T18:23:00.000-07:00

A Bad Credit Lender launches its newest web offering -- bad credit lender, specializing in hard money loans, subprime loans and other hard to place loans.

Seven Steps for a New Home Loan Purchase Part II

2005-10-12T14:11:00.000-07:00

4) The Fun Part: Searching for your new home
With the advent of the internet, there are loads of ways for you to search for your new home. One of the easiest is to find a realtor website that allows you to search the mls listings. You can enter your minimum amount and maximum amount and the areas you would like to search and, viola, you will be given a list of homes for sale that meet your requirements. Of course, if you are using a realtor they should have access to a more comprehensive mls listing service and should be able to screen your search for you. The Sunday classified ads always list the home sales in your area and often include the "For Sale By Owner" listings that are typically not included in the mls listings. One final place to look is at www.craigslist.org or your local reader in the classifieds section.

5) Check it out and make an offer
Driving by homes and walking through Open Houses is certainly exciting -- it gives you an opportunity to imagine yourself living in the various spaces. There are lots of items that you should be checking for, however, this subject is beyond the scope of this article. In the event that you like the home, you or your realtor can make the seller or the seller's agent an offer on the home. In a hot market where homes are being bought up quickly, it is a good idea to make an offer that is close, if not slightly over, the seller's price. In a slow market where homes are sitting for months at a time, you can offer an initial price that may challenge the seller's desire to sell at a lower cost. Your offer should include the following:

Seller concessions (if applicable)
Financing contingencies (if applicable)
Home inspection contingencies (if applicable)
A specific outline of what is to be included in the sale of the Home
The “earnest money” deposit amount to be tendered with the offer

Once your offer has been made, the seller will then decide to accept it, reject it or counter offer. Once you and the seller agree on a home price, both parties will sign a home purchase agreement that will include the agreed upon terms, escrow period, etc. If you are working with a realtor, they will handle all of these steps for you (hopefully in a timely and efficient manner).

6) Lock up that interest rate and find the right loan
Your mortgage broker or lender can lock in an interest rate for 30 days or 60 days until your home closes and you move in, insuring that you know exactly how much your mortgage will set be once you move in. This protects you if the interest rates rise during your escrow period. If rates go down during this time, you can usually renegotiate and get this lower rate. Locking in an interest rate is a win win situation for the borrower.

There are two main types of home loans -- fixed rate and adjustable. Fixed-rate loans divide the amount to be repaid over a set number of years. “Fixed rate” means that no matter how the interest rate fluctuates over the years, the amount of payment will remain the same. If the interest rate dips, your mortgage consultant will help you refinance to take advantage of the lower rate.

Adjustable rate mortgages (ARMs) are dependent on the fluctuation of the interest rate over time. A five year ARM is a fixed rate for five years but once this period ends your loan rate will fluctuate based on the market rate. When the rate is low, payments are low, but when interest rates are high, the payment increases also. ARMs are slightly easier to qualify for than fixed-rate loans, but they also carry more risks.

7) Closing and moving in
You or your realtor should have a checklist of items that have to be accomplished during the 30, 60 or 90 day escrow period. Home inspection, termite inspection, title on the property, your final approval from the lending institution, etc.

If all of this goes smoothly, you will own your home and can now look forward to the fun task of moving all of your worldly possessions into your new home! Do your homework, take it one step at a time and enjoy the process!

Corey Senn is a Senior Partner with A Bad Credit Lender, a California based hard money loan and subprime loan lender in La Jolla, Ca.

Seven Steps for a New Home Loan Purchase Part I

2005-10-11T15:12:00.000-07:00

Buying your first home and becoming a home owner is one of the most exciting steps in any person's life. With home loan purchase rates at the lowest they have been in decades, this is an opportune time to purchase a home. At Bad Credit Lender, we work with affiliate mortgage brokers who work hard to find you the lowest rate possible. We can help you analyze your financial situation quickly and efficiently, allowing you to have a solid understanding of what you can afford and how much a lender will reasonably allow you to borrow.

Buying your first home and acquiring a home loan can seem like a daunting task. The best way to approach getting a loan and finding a home is to take it one step at a time. Here are seven steps that will help you purchase your first home.

1) What Can You Afford
Determining what you can afford in the housing market is one of the most important steps as it helps define your search for a home loan and lets you find a comfortable mortgage amount that will allow you to find the home of your dreams without any undue burden. Some of the considerations to take into account include your household monthly income, your current level of debt (monthly bills, car payments, credit cards, etc.), your credit score, and the amount you will put down initially. Once you have a basic understanding of what the household earns minus what the household spends, it is much easier to determine a comfortable monthly mortgage amount. Take these numbers to your mortgage broker or lender and they can then go over what this will allow you to buy given certain loan scenarios (including the tax deductions available for the interest portion of your home loan).

2) Get Pre-qualified for a Home Loan
If you are really serious about buying a home, it is very important to at least be pre-qualified for a loan. Getting pre-qualified means a cursory examination from a mortgage broker or financial institution who can verify your level of income, credit score and current debt and can quickly tell you much you can afford to borrow.

Many realtors or home owners will not accept an initial offer on their home without a pre-qualification letter. Once you do have your pre-qualifying letter, you can begin to search for a house, confident that if you do find one, that you can make an initial offer on it. As well, the pre-qualification process will give you a much better idea of the loan amount that you qualify for.

3) Do One Better: Get Pre-approved
Getting pre-approved for a home loan tells the home seller and your realtor that you are ready to make the commitment. The pre-approval process is a bit more intensive than getting pre-qualified but pays off in the end. In order to become preapproved, you will give your lender your W-2 or 1099 Forms, Paycheck Stubs, as well as savings or checking acccount statements. In addition, it is necessary to run your credit, unless you have a recent credit report copy handy. The real advantage of pre-approval is it drastically cuts down on any problems that may be lurking in your credit or financials that might block you from obtaining the home you want.

Corey Senn is a Senior Partner with A Bad Credit Lender, a California based hard money loan and subprime loan lender in La Jolla, Ca.

The Boom Fraud -- Mortgage Market Fraud On The Rise

2005-10-06T14:01:00.000-07:00

While mortgage experts caution against the impending housing bubble, the housing market continues to boom. Like all hot markets, the scammers can't stay away when they get a whiff of money. Mortgage industry researchers report that mortgage based scams are on the rise and are bilking Americans for millions every year. The FBI estimates that they received 17,000 incidents of mortgage fraud from lenders during the previous year.

Let's take a look at some of the mortgage scams out there:

1) Mortgage cheats inflate the mortgage price on homes in and around Atlanta and swindle close to $20 million from homeowners.

2) Scammers buy foreclosed homes at a reduced price. They then create false appraisal values and then sell the homes using the false appraisal values.

3) Internet scammers solicit individuals with bad debt and have the owners sign over the ownership papers to them using quitclaim deeds. The scammers tell the homeowners to refinance their properties and the proceeds of the loan is then split between the owners and the scammers. In this case, the alleged perpetrators of this mortgage scam are being tried in court on these charges.

If you are looking to refinance or get a home loan, buyer beware -- mortgage scammers are out there. This is one of the reasons that it is so important to go with a reputable company, especially if you are considering a bad credit loan or hard money loan. This subset of the mortgage industry has a higher than average number of sleazy characters. Make sure you read all of the documentation very carefully -- it might be the most costly decision you make!

Getting Real (Estate) in You IRA Part II

2005-10-05T13:46:00.000-07:00

PART II
by Gary Smith

If the volatility of the Stock Market is making you crazy, join the crowd. The economic report is solid and the experts all agree but that does not stop the craziness of the current financial market. Perhaps we have forgotten the old adage that “slow and steady wins the race”. When greed and risk abound as they do today we are in for this kind of erratic behavior for the duration. So we had better get used to it or diversify into real estate. Today's current economic report:

GDP -A 3.1% pace of economic growth in the first quarter is a bit slower than expected but will look good compared with the current quarter's performance. We see gross domestic product (GDP) expanding by about 2.5% in the March-through-June period before the pace picks up a bit in the second half. Poor economic data for March, after relatively solid figures in January and February, set the investment decisions, not the institution that sponsor the IRA. Even with the IRA owner “calling the shots” most institutions will limit the range of investment options (e.g. some institutions require no less than 50% down on any real estate purchases while others will require 30% +, and still others will allow no debt financing).

An advantage of working with an established and reputable SDIRA institution is the experience and isn't heading into a tailspin. Once fuel prices are past their expected late-May peak, both consumers and businesses should breathe a sigh of relief and boost spending again. The economy has underlying strength. Corporate profits are growing at a healthy clip, if not as quickly as last year, and companies are encouraged that price hikes are sticking.

Gary Smith is the owner of Whitecap Investments of Laguna Beach California, providing expert advice in helping clients evaluate and act on their personal financial goals for retirement.

Getting Real (Estate) in You IRA

2005-10-04T10:38:00.000-07:00

Part I of II
by Gary Smith

“The truth be told you can invest your IRA money in Just about anything you want to provided you can find a custodian willing to handle the asset and provided you can follow some fairly complex tax laws. “ says Market Watch's Robert Powell.

Non-traditional investments for IRA s, like real estate, have often been met with skepticism by many financial planners, bankers, and most professional real estate brokers who are unaware of IRA investment guidelines.

In the last few years that is beginning to change. Self-directed IRA (SDIRA) Institutions and Custodial Trust Companies are growing more popular. Portfolio Lenders are offering stronger loan packages for “non-recourse” notes necessary for the SDIRA custodial accounts. More importantly, individuals themselves are comparing the returns on real estate investments nationwide against our traditional financial market returns offered by typical retirement advisors. The increase of investor awareness is driving that change.

As an example, the S&P 500 average yield in 1981 was 5.26% and the 5 year Treasury was at 11.45%. Both yields have declined steadily over the last 20 years. Compare the 2003 levels of 1.77% yield for the S&P 500, and 2.97% for the 5 year Treasury note. During the same period, real estate investors across the country have enjoyed average returns from 4 to 40+% per year.

Additionally, there have been many investor disappointments in the ability of previously “secure” large fortune 500 companies ability to deliver the expected long term results—Enron, World Com to name just a couple of the extreme cases.

The simple reality is the average person investing in today's financial market has to accumulate more savings to retire at their accustomed life style than ever before because of historically lower rates of return.

It is, therefore, no great surprise that many investors are choosing to re-examine their portfolios and use a self-directed IRA (SDIRA) investment approach to diversify and grow their retirement wealth with real estate products.

Gary Smith is the owner of Whitecap Investments of Laguna Beach California, providing expert advice in helping clients evaluate and act on their personal financial goals for retirement.

Orange Alerts --

2005-09-26T11:44:00.000-07:00

Watch out the real estate bubble is about to burst! Haven’t you heard this? It seems that everywhere you go somebody is telling you the real estate bubble is about to burst. I did not know that every Starbuck’s employee has become an expert on the real estate market. I believe my postman has even given me advice why they are opting out of investing in real estate. Even at the gym my personal trainer suggested that real estate prices were dropping.

The truth is that almost everyone considers themselves a real estate expert. The reality is that most of us have no idea what is going to happen. We are entering unchartered waters with a prolonged property appreciation and low interest rates. Sooner or later it is going to slow down. Interest rates will eventually rise creating less borrowing power for people. When this happens prices will either level or drop. Does this mean that real estate is a bad investment? No, on the contrary real estate is a historically safe investment that yields consistent returns.

Right now the rates of return people are receiving are ridiculously high. Remember real estate is not a liquid transaction. There are many variables to be considered when selling a home such as the sales team involved, the type of property, the location of the property, and the current market conditions in that particular area, and time. Hopefully, people will be cautious and understand that they should have more control over their investments this time around.

As I was writing this article two devastating natural disasters occurred: Hurricane Katrina, which almost wiped New Orleans from the earth and hurricane Rita. These natural disasters are going to cost billions of dollars to repair. What does this have to do with real estate? Well, when events get a little dicey people put their money back into bonds which keeps interest rates low. So you can say that we have a window of low interest rates until the dust settles from these events. When it settles though, borrowers who depend on soaring house prices may get into trouble to refinancing or selling their homes easily.

Is the bubble bursting? Not yet, maybe it will gradually slow down, who knows? Nothing is certain? Yellow means caution, red means danger; we are in a state of uncertainty that has not been seen in the history of real estate. Be cautious, expect the worse and keep your guard up. Orange Alert!

Craig Cecilio is a Senior Partner with Bad Credit Lender, a San Deigo based California hard money lender and subprime lender.

A Bad Credit Lender -- Nationwide Direct Hard Money Loan Experts Launches Website

2005-09-25T20:56:00.000-07:00

A Bad Credit Lender -- Nationwide Direct Hard Money Loan Experts Launches Website

A bad credit lender is a nationwide direct hard money lender that offers California hard money loans, bad credit loans and subprime loans. With many years in the field of California bad credit lending, Bad Credit Lender is experienced at acquiring financing for people with less-than-perfect credit. Our professional team of California bad credit lenders, located in La Jolla, California, quote only the most competitive rates for California Bad Credit Home Lending.Our competitive rates and terms that will vary based on property type, loan to value, credit scores, as well as a host of other factors. For residential loans of 75% LTV and lower, we offer loans 11% and 3 points. We also offer HELOC loans for 2nds. Contact us to find out about our rates and terms. Our loans fund in as quick as 4 days. For all other inquiries, including construction loans, bridge loans, and real estate loans, contact us at the number below.

Finding out if you qualify for a California Bad Credit Home Loan fast and easy. Either fill out our 2 mintue bad credit application. or call us at (858) 454-4034 to see whether you qualify for a California Bad Credit Home Loan. If you fill out a bad credit loan application, one of our loan specialists will call you within several hours to go over your financial information and inform you whether we can provide a California hard money or bad credit loan.

Craig Cecilio, Senior Partner

Jason Struthers, Senior Associate

7709 Eads Ave, Suite 9

San Diego, California, 92037

Phone: (858) 454-4034

fax: (858) 225-3683

Pension changes will alter retirement savings practices

2005-09-24T13:24:00.000-07:00

The old-fashioned pension that guarantees you the same benefit check every month after you retire is itself being retired by a growing numbers of employers nationally. “The share of workers included in the defined benefit retirement plans has dropped more than 50% since 1980,” according to the Pension Benefits Guarantee Corp. (The federal agency that insures such pensions is commonly known as the PBGC). These experts expect even more private employers to abandon traditional pensions. In their place many employers are paying contributions to 401K and other plans that put workers in charge of managing and funding their retirement plans. “Individuals have to take more responsibility for their own retirement, not only contributing their own money but managing how that money is invested,“ said Jim Cheney, chief executive of Evergreen Management Company, a firm that helps people with retirement planning. “The days of working for a company for 40 years and retiring to the beach to collect pension checks are gone. Defined benefit plans can be very expensive for employers and most employers that still have such plans, if they could, would like to get rid of them."

Further investment losses in the stock market for many plans during 2001 and 2002 left most major corporate plans under-funded last year just as many of the baby boomers are approaching retirement age, according to an analysis of the nation’s biggest pension funds by Wilshire Research. New PBGC figures also indicate the number of pension funds in trouble rose to a record high in 2004. Kiplinger’s recent May 27 , 2005 letter indicates in its opinion, “that only a handful of high risk plans will fail, however, most won’t. Furthermore, even if all the high risk plans failed the PBGC could handle it , although thousands of individuals would get their benefits trimmed.” This year Congress will move to shore up the PBGC to ensure the agency has resources to absorb the failed plans. Annual fees charged to employers will go up, and expect tighter rules for firms that fall behind. In return, more predictability for employers and it is expected that Congress will back a permanent plan based on the higher average corporate bond rate to be used in calculating the cash values of promised pensions, and include tax benefits for making extra contributions.

Gary Smith is the owner of Whitecap Investments of Laguna Beach California, providing expert advice in helping clients evaluate and act on their personal financial goals for retirement.

Paying off Your Home Loan Mortgage

2005-09-20T14:28:00.000-07:00

Paying off Your Home Loan Mortgage

The problem is not as straight forward as it may seem. On one hand, paying off your home and being able to live free and clear can be satisfying. On the other for most homeowners it makes sense to keep a mortgage, since the interest is tax deductible. Keep in mind as you reach the end of your loan that you are paying more principle each year and have less interest to write off. You may find your loan is costing you a lot more than you think, especially if you do not have enough deductible expenses to keep you above the standard deduction for couples ($9,700 in 2004). From purely a financial perspective the strategy that is growing in popularity as more folks retire and have concerns about cash flow is to borrow.

Some financial advisors are suggesting people actually bump up their mortgages and then invest the extra borrowed funds. The investment returns should more than offset the after –tax cost of the mortgage so you profit from the loan, says Gibran Nicholas, president of Mortgage Planning Solutions in Ann Arbor, Michigan, a mortgage planning firm specializing in real estate. Let’s say you had $100,000 remaining on your present mortgage, approaching retirement. You are considering paying it off at about $1,200 per month over the next ten years. Instead take out a 10 year interest only mortgage for $250,000, and invest the additional $150,000, after paying off the original loan.

Your payment will go from the planed payoff of $1200 per month to $1250 per month. In this case the income taxe would be decreased by more than the monthly payment difference with the new $15,000 annual mortgage interest deduction, and the $150,000 invested in tax free municipal bond should yield an additional $6,000 per year at an average return of 4%. For those who still feel uneasy carrying more debt. A different rule of thumb for you : If your mortgage interest is so low it doesn’t allow you to itemize your deductions, and your investments are earning less than the cost of the loan—pay it off and sleep better at night.

Sooner or later the home price momentum will slow. As this happens the economy will lose some of the momentum that has been fueled by the rapid growth. Wachovia and other analysts see a high probability of slowing or flatting home price growth in the next 6 to 12 months. This slowing should lead to slower economic growth , earnings growth, and continued low bond yields. Wachovia's estimate is that home prices have added about 1% a year to US economic growth and when they stop rising , the drag on the economy will be a similar reduction. This forecast is based largely on the knowledge that the US economy is $12 trillion and the growth of borrowing against rising home values represents between 1-2% of that number, Therefore as home values flatten., and the incremental borrowing against rising values disappears, the outlook for US inflation will be reduced to 2% - 2.5% annually. Several new economic mega changes have also helped create new “disinflation” structures within the US economy that are worth understanding.

The Wal–Mart and Internet effect is one. Wal-Mart and other “big box” retailers have changed the business landscape and reduced inflationary expectations. By capturing large segments of the market and with their commitment to the “Always Lower Prices” mantra they have effectively reclaimed the bargaining power for the consumer. And even more important in the long run may be the Internet which has heightened consumers world wide awareness of prices. Consumers now have an unprecedented power to compare prices and find the best deals. High productivity and surplus labor is another new global inhibitor of US inflation. Increasing integration of the global economy has led to a huge supply of low cost labor and a decline in the power of organized labor. As a result the 30% increase in raw materials prices seen in 2004 has only translated into a mere 3% rise in in finished goods prices so far in 2005.

History shows us that economic expansions and contractions create their own momentum. Like an aircraft carrier, once an economic path is set in motion it is hard to turn. Confidence is a critical variable in both personal and corporate buying decisions, and a growing economy generates confidence just as a recession erodes it. Thus the belief of the analyst is that it would take a major shock or a significant rise in interest rates to make recession a realistic probability. The consensus at Wachovia is that the economy will continue to slow to the 2- 2.5% range as consumer borrowing slows, but it is expected that consumer spending growth will remain positive. Business spending, which is ultimately dictated by corporate cash flow will also remain strong. Capital expenditures should be able to grow at 3-5% in real terms over the next 3 to 5 years inline with the long term trend of corporate cash flow growth.

Gary Smith is the owner of Whitecap Investments of Laguna Beach California, providing expert advice in helping clients evaluate and act on their personal financial goals for retirement.

Home Equity Lines for Good Credit and Bad Credit Mortgage Loans

2005-09-15T11:39:00.000-07:00

Home Equity Lines for Good Credit and Bad Credit Mortgage Loans

As a borrower, it is often difficult to know your legal rights regarding home equity lines of credit. This is especially true with private hard money loans from bad credit mortgage lenders. Borrowers need to be aware that the Truth in Lending Act requires lenders to disclose the specific terms and costs of their home equity plans – terms such as APR, broker charges, the payment terms, and any variable-rates that may apply. It is also important to note that a lender and anyone else associated with the transaction may not charge a fee until after the terms and costs have been disclosed to the borrower. These disclosures will typically be available to you once your receive the application form from the lender. If a term or cost in the loan is altered or changed before the loan goes into effect (other than a variable-rate feature), the borrower must be informed. If this causes the borrower the change their mind about the loan, the lender is required to refund any fees collected.

Whether you are dealing with a bad credit loan or an A-paper home equity line, the Truth in Lending Act gives borrowers a three day rescission period, essentially a small window of time to change their mind about the bad credit loan. If a borrower decides that the bad credit loan or traditional home equity loan is not right for them, they can inform the creditor in writing during this recession period of their change of heart. The bad credit lender must then cancel the security interest in the home and return to the borrower all fees involved.

Knowing your rights can save you from making the wrong decision when it comes to a bad credit lender loan or traditional home equity loan! Click to find a a bad credit lender.

Corey Senn is a Senior Partner with Bad Credit Lender, a California Bad Credit Private Money Lender in La Jolla, Ca.

Who Do You Turn to for a California Bad Credit Mortgage?

2005-09-13T09:52:00.000-07:00

Who Do You Turn to for a California Bad Credit Mortgage?

What happens when you can no longer get a loan from a bank or even a mortgage broker? What happens if you cannot pay back debtors, payoff credit cards, or even pay back that business loan? Or perhaps you find yourself in that precarious situation where your home may be in jeopardy. Why did this happen you may ask? You may have recently lost a job, started a new career, had a medical emergency and accrued extra bills; you may be going through a divorce, or that stock you invested in left you dry. Whatever the reason -- there is a way to get a loan.

An old but now popular business entity called a private money lender can help you secure important financing for your needs. Generally, the private money lender, popularly known as a hard money lender or
bad credit lender, lends to people facing adverse situations. These loans are usually written from 1 – 5 years with high interest and fees. The good news, though, is that they are quick and much less hassle than the normal banks. These loans serve as a bridge (bridge loans) until the borrower gets their situation straighten out. These loans are becoming so popular that people are foregoing the traditional bank loan and going directly to private money lenders. Of course, it has to make economic sense, but there is also an added value in receiving a quick hard money loan! Now compare that to a long drawn out bank loan that you may not even get in the end.

You may ask how has the private money lender been in business for so long without the general public acknowledging its existence. Well most of the business comes from bank turn-downs, BK attorneys, trustee’s at trustee sales, credit repair companies, divorce attorneys, and real estate investors. Now the general pubic has a chance to reach these lenders directly, thus saving thousands of dollars in extra fees that mortgage brokers add on. Not only are private money lenders readily available but they allow the customer to get the quick answer that they need.

Now you are aware that there is hope. Now you have an opportunity to pay off delinquent debts and get extra cash to get back on your feet. And with less hassle than a bank. Private money lenders offer people not just way out, but a second chance.

Craig Cecilio is a Senior Partner with Coastal La Jolla Funding of La Jolla, Ca.

For more information, visit his website at www.coastallajollafunding.com

California Bad Credit Lenders Explained

2005-09-07T08:39:00.000-07:00

WHAT DO CALIFORNIA BAD CREDIT MORTGAGE LENDERS DO?

For bad credit mortgage lenders, lending money on foreclosed properties or to individuals with low fico scores is par for the course. California bad credit lenders and subprime lenders operate where mortgage lenders don't dare tread, financing loans to "hard up" borrowers in the same way as banks and brokers help traditional customers -- with some significant differences.

PROS OF CALIFORNIA BAD CREDIT MORTGAGE LENDERS

Bad credit mortgage lenders can lend money much more quickly than traditional institutional lenders. For borrowers who have no other choice, bad credit mortgage lenders are often the only choice for a loan on their residential or commercial property. Certainly, bad credit mortgage lenders are less common than institutional lenders -- making bad credit mortgage lenders a niche within the lending field. "Bad credit mortgage lenders are essentially private investors that analyze risky financial ventures and, if the risks seem acceptable, they agree to lend the money at fairly high interest rates," comments Craig Cecilio, owner of Coastal La Jolla Funding of San Diego, California.

As interest rates rise, more traditional mortgage brokers will try to transition into the bad credit mortgage lender act, mainly because they often have ties to individuals or groups with the sort of money or funds that are needed to finance California bad credit mortgage lender loans.

WHAT YOU NEED TO KNOW ABOUT CALIFORNIA BAD CREDIT MORTGAGE LENDERS

Bad credit mortgage lenders aren't mobsters who send hit men out to beat up borrowers up who renege on bad credit mortgage home loans. Bad credit mortgage lenders do charge high interest rates, often 10% to 15% APR, plus 4 to 8 points up front on the bad credit loans. While these rates may seem usurious to many borrowers, they are risky for the bad credit mortgage lender themselves. In the event that a borrower defaults on the California bad credit lender, the residential or commercial property will then become the asset of the bad credit mortgage lender, who can then turn around a sell the property for the market value minus whatever is owed on the property.

"Bad credit mortgage lenders are often the last and only hope for many projects that can make the borrower a lot of money down the road. That's why they are often referred to as construction loans or bridge loans," comments Chris Dinofia of 1st Access Hard Money. "If a developer has spent $50 million on a project but runs out of money three months before he is ready to start selling units, he has to acquire a bridge loan for 90 days to get him over the hump. As long as the development is well thought out and has real market value, the developer stands to make a lot of money -- even with the money he has to pay on the bridge loan."

A TYPICAL BAD CREDIT MORTGAGE LENDER SITUATION

Let's say a borrower applies for an institutional loan and is turned down for a low fico score. The next step is a California bad credit mortgage lender. Luckily, the borrower has 50% equity in their property and wants to get a second loan to build a new home on the property. Traditional lenders will almost always pass because of the fico cut off and bad credit of the borrower. Also, conventional lenders often have problems with properties that derive a substantial portion of their value from the land rather than the house. Buyers of expensive properties and those who already own such homes and want to cash out large amounts of their equity via refinance loans also turn to private money.

Real estate investors may use private loans because the loans come with less red tape and restrictions than bank loans. Borrowers who are looking at foreclosure are also a major category of bad credit borrowers. When someone misses a mortgage payment, that person usually has some leeway to bring the loan current. But once a 30-day delinquency turns into a 120-day or 180-day one, the lender will usually start the foreclosure process. At that point, the borrower is so far behind that even subprime lenders are reluctant to assume the loan. A bad credit mortgage lender, on the other hand, may be willing to give that person a new loan. The customer can use it to pay off the original lender, gaining enough time to sell the property and find a new place to live. Borrowers who miss payments because of temporary problems, such as a job loss, can benefit, too. They can use the breathing room a hard money loan provides to rebuild their credit.

2005-08-30T15:56:00.000-07:00

The California Mortgage Loan Industry is Still A Hot Equity Market

It's no surprise that California real estate prices are at an all time high and interest rates are at an all time low. California mortgage loans and rates, as well as the mortgage market typically serve as a model for other states. The California Residential Mortgage Lending Act or CRMLA (enacted in 1994 and effective since 1996) takes care of legal aspects of mortgage in California. However, the people in this industry also have to conform to the Federal Truth-in-lending Act and regulations set forth by the federal government institutions. In order to avail a mortgage loan in the state it must be ensured that the lender or banker has a license under CRMLA. Such CRMLA licensed lenders can provide brokerage services also. They can obtain a mortgage for the borrower from another lender as well. Such brokers can, in all probability, procure for you an unbiased loan. This is quite a unique facility.

If you would like to find great rates on California Mortgage Loans, visit California Home Loan Mortgage Page

In California the borrowers are empowered to put up a fight against predatory lending practices of lenders by the Predatory Lending Act (introduced in February 25, 2000). This Act has also been revised several times owing to the rising levels of lending crimes and frauds facilitated by technology. In recent times mortgage fraud in the U.S. is increasing at an alarming rate. The Federal Bureau of Investigation put the number of suspicious activity reported in 2004 to be nearly three times of those reported in the previous year. California ranks among the top 10 states in mortgage fraud. Still, quite a significant portion of the mortgage industry avoids reporting fraud though it is quite mandatory. The fraud in the secondary market is also frequently under reported. This presents a gloomy picture where the actual level of mortgage fraud though unknown is estimated to be very high.

Many experts in the California Mortgage Loan indsutry point out that the mortgage market will should stay strong throughout 2005.

• The interest rates are lying at 40 year low levels.
• The maximum amount permissible for conforming mortgages has been increased proving an enhancement for mortgage activity. Many families can now become capable of qualifying for and thereby obtaining a mortgage.
• The range of loan plans available to borrowers has widened.

2005-08-30T15:24:00.000-07:00

California Bad Credit Loan Market is Heating Up

As the growing need of debt consolidation services rise, so does the number of debt consolidation lenders and companies that simply want to bilk Americans through unfair lending practices. Bankruptcies, unmet financial obligations, and lower retail spending levels will continue to rise as interest rates rise following historic low mortgage loan rates. For Americans who suffer from debt, there are ways to reduce debt and lift the strain. Becoming debt free has become much more difficult with the recent changes in bankruptcy and related laws. However, when determining a applicable solution to becoming debt free, one must keep in mind the type and amount of debt that one is currently subject to. In most cases consolidating debt or obtaining a debt consolidation, equity loan, can be a realistic and inexpensive option, when compared to filing bankruptcy.

To get the most suitable debt consolidation solution in your locality with free counseling, visit ourBad Credit Lender Directory, or http://www.coastallajollafunding.com/, to find reputable resources for debt consolidation and negotiation.

With the growth of debt consolidation firms, choosing the right firm has become very important. Many of these hard money and bad credit lenders offer illegal rates that place an undue burden on the borrow. Before one utilizes any debt consolidation, service it is critical that due dilligence is performed to determine one's availiable options and rights. The reputation of the firm should also be closely examined to ensure that the company is in fact, designed to act in your best interests.

The debt consolidation services and companies listed on this site are top level companies that offer debt consolidation for California bad credit situations. Visit Mortgage Loan Directory to find out more.