Foreclosure Help - Is a Short Sale Right For You?

Do you think that your home is worth less than what you owe on it? Well, then your options are indeed limited. You can either go to foreclosure or you can seek out the right "Foreclosure Help". A short sale is one of the most effective solutions, this basically means that you will be selling your house for an amount that is lower than what you owe on it. So, at the time of the closing the amount that the lender will get will be lower than the balance amount that you owe on the house. YOU MAY BE ABLE TO WALK AWAY FROM YOUR HOME OWING NOTHING.

Very few real estate investors and agents understand a short sale enough to complete it successfully. So, if you think a short sale might be the only solution for your troubling home situation, make sure you pick the right Foreclosure Help expert. These real estate experts will in turn persuade the bank to accept an amount that is lesser than what you owe the house. Even banks and lending institutions prefer short sale since foreclosure will turn into a costly affair for them.

The Debt Relief Act of 2007 signed by George W. Bush has made short sale much more attractive for homeowners in trouble. Before 2007, you had to pay tax on the difference between the amount that you owed the bank and the amount that you received from a short sale. But now this difference is not taxed.Look at this example. If you owe the bank around $125,000 and you short sale the house at $75,000, the bank is receiving $50,000 less than what they would have received if you had continued with your mortgage payments. So, they would send a 1099 to the IRS for this amount and the next year you would have had to pay income tax on the difference of $50,000. So, you pay around fourteen thousand dollars as tax which is not something that a homeowner would like to do.

However, now, you don't have to pay taxes on this difference. So, if you need to short sale your house to avoid foreclosure, you don't have to worry about paying taxes anymore! So, your home has been financed by the bank and you haven't been able to pay your mortgage payments for the last few months. Nothing to worry about, just pick a reputable real estate investor who specializes in foreclosure help. In no time, they will be able to do a short sale on your house. A good real estate investor will handle everything. From paperwork to negotiating with the bank to buying the house himself, they will do all the heavy lifting for you. And you will breathe a sigh of relief that you are finally out of debt. What's more, remember, you don't have to pay any taxes also!


So, are you a homeowner facing foreclosure or know someone who is? Then visit www.JTBuysHousesOH.com right now and turn your problems into solutions. If you need to sell your house fast because of foreclosure, divorce, or bankruptcy, or for any other reason, then just contact us by visiting at http://tinyurl.com/y778n2v and let us handle all your house problems. JT Buys Houses can also be reached at (614) 453-5963, 7 days a week.

Avoid Foreclosure in Columbus Ohio

The real estate market in Columbus Ohio and surrounding areas is less than perfect and many home owners who want to sell simply cannot. According to the Columbus Dispatch’s March 28, 2010 edition, virtually all neighborhoods in the central Ohio area have lost value; some areas as much as 30% or more.
Add to the plummeting property values the loss of jobs plaguing Ohio, as well as A.R.M. mortgages adjusting and you have a recipe for mortgage disaster. Some home owners have reached the point of just wanting out of their property and out from under the suffocating debt but the problem is that many home owners are “under water”, meaning they now owe more on their property than it is valued at.
What is a Columbus Ohio home owner to do when they owe $250,000 on a property that is now valued at $199,900? Selling the home simply creates a new problem. Even if the home is sold there is a $50,100 outstanding amount owed on top of the sale price of the home. Most homes cannot even be sold (or close) until the deficiency is paid.
The number of bank owned, foreclosed and homes which the owners have greatly reduced the price on just to get out is growing daily making it even harder to sell a home at a profitable price.
So, what options are available?
• If the home owner can afford to stay put and make the monthly payments that is sometimes the best option. Experts say we may be real estate prices may adjust in 12-17 years.
• Bankruptcy is always an option if one can qualify under the bankruptcy means test which is based on your State’s median income. Under Chapter 13 a homeowner might even be able to keep their home, but it does not solve the problem of owing more than the property is worth.
• Doing nothing might be the easiest option which will eventually lead to foreclosure; however, this option will cause the biggest hit to your credit score and be the most publicly embarrassing.
• THE BEST OPTION is usually to hire a MORTGAGE RELIEF SPECIALIST to execute a short sale. The process is simple. A professional can negotiate with your mortgage company to allow you to sell your home quickly, with no fees and walk away from the property owing nothing, no matter how much it sells for.

AVOID FORECLOSURE article compliments of www.JTBuysHousesOH.com.

Credit Card Debt Negotiator would like to thank Sharell Crawford for contributing the following article to our blog.


There are many individuals who have fallen behind their monthly payments, and are thinking of declaring bankruptcy as the last option. For them there are many www.creditmagic.org; credit solutions, which are designed in such a way so as to help them to get relief from the burden of their debt. Solutions for credit with various features and terms vary according to the needs of the customer.

The counseling experts after evaluating and analyzing your financial condition may advise you about budgeting and device a program to help you get out of debt. They may also place you on a debt management plan to repay your bills, usually at a reduced interest rate.

Debt consolidation: You make a single consolidated monthly payment to the debt consolidation company. The company in turn sends the payment to your different creditors after negotiating with them to reduce the interest rates or deduct the late charges, if any that is added to your balance.

Debt settlement: The debt settlement company negotiates with your creditors to agree to a one time reduced amount on your outstanding balance according to your affordability. Then you make a single payment and get out of debt.

Debt consolidation loan: By taking a debt consolidation loan you can cover all your high interest bills into one convenient monthly payment and slowly pay them off.

Credit solutions prevent you from falling into further debts. These solutions help you to understand your financial situation and as a result you gain control over your finances.

You don’t receive any harassing calls or letters indicating threats from the creditors and the collection agencies. These solutions save you from declaring bankruptcy.Through credit counseling you learn how to manage money and rectify you careless spending habits.When your debts are resolved you get peace of mind.

Whenever you are in some financial difficulty, you should not hesitate to go for a professional assistance. These professional experts can offer you many credit solutions to establish financial stability by arranging suitable payment plans for you.

When Is It Time to Walk Away From A Mortgage?

The San Francisco Chronicle recently posted a story on their website that is a true sign of the times; “Your Mortgage: When It’s Time to Walk Away.” This isn’t the first time I’ve come across articles covering this topic and it seems to be a question which is more and more feasible for American property owners. At the start of 2010 it is estimated that 25% of homeowners are “underwater” meaning they owe more on their mortgage than they home is worth. Of those who are underwater, many have a value deficit of 25% or more. Do in part to these unique circumstances, for the first time in history homeowners are just walking away from their homes, whether it is a primary residence or rental property.

When a homeowner can rent a similar property for less than their monthly mortgage payment, many experts suggest doing just that. When equity is at zero (or even negative) and the monthly payment is a struggle with no benefit to hanging on any longer, why continue the struggle? Yes, the home is where the heart is, but let’s face it, it’s also an investment and when they investment is sinking and dragging down not only your finances but your mental health and stress level, cutting the ties and getting out can be the best decision for any homeowner.

There are basically three ways to walk away from a mortgage that is suffocating:
Short Sale: A short sale is a proactive approach whereby the homeowner (or a short sale expert) approaches the mortgage company lender and gets them to agree to sell the home for a reduced amount, which is lower than the actual amount the homeowner owes on the home and forgives the remaining amount. A short sale expert can make this process quick, easy and relatively painless. If you have a home you are interested in short selling, contact the expert in the business at www.JTBuysHousesOH.com or call Tom at (614) 453-5963 or JTBuysHousesOH@gmail.com.

Voluntary Foreclosure: A voluntary foreclosure is whereby the homeowner turns the house over the lender, usually via a Deed in Lieu of Foreclosure.

Involuntary Foreclosure: An involuntary foreclosure is whereby the lender uses the legal system to take back control of the property and may use the police department to remove the occupants if necessary.

Any of the three options will put a ding in one’s credit score as will late or missed payments of any debt. If deciding to walk away from a mortgage it is wise to locate a new residence whether it be a smaller, less expensive home to purchase or a rental property/unit, make any large purchases, such as a vehicle prior to, so as it set up a new living situation before one’s credit report takes a hit.

If your home is being foreclosed on, you can no longer make house payments or you simply want to discuss your options, we highly suggest www.JTBuysHousesOH.com where their Mortgage Relief Specialist will talk you through your options.

Don’t Skip Mortgage Payments to Pay Credit Card Debt

Consumers are changing the way they do business on a daily basis by prioritizing credit card payments over mortgage payments. Consumer debt rose in January 2010, but consumers continued to pay off their credit cards that month causing a record 16th straight month of lower credit card debt. A study by TransUnion (one of the three major credit reporting agencies) of 27 million anonymous consumer records pulled randomly from its database found the number of consumers delinquent on their mortgages but current on their credit cards rose to 6.6% in the third quarter of 2009 from 4.3% in the first quarter of 2008. The portion of those who fell behind on credit card payments but paid their mortgage dropped to 3.6% from 4.1%. This is an unprecedented shift for consumers. Paying one’s mortgage has always been a consumer’s top priority.

TransUnion reports first seeing this shift in payment precedence in the fourth quarter of 2007 by consumer’s with the lowest credit scores. Since the trend was first reported experts are seeing it creep into all income levels and those with a range of credit scores.

The reasons for paying credit card debt over the mortgage payment are varied but a few may be:

• Many homeowners owe more on their homes than they are now worth causing them to rethink continuing to pay on a home that is “underwater”.

• An unemployed homeowner may value the continued use of a credit card for food and necessities over holding onto a home which they cannot afford.

• A foreclosure in most states takes over a year whereby one missed payment can cause a credit card limit to be cut, interest rates to rise or a card to be canceled.

• Consumers dread the barrage of collection calls that come from delinquent credit card bills.

Many consumers simply do not know where to turn when there isn’t enough money to go around or do not know the options available to them. Another trend developing in this poor economy is debt negotiation whereby a consumer can settle unsecured debts such as credit card debt (not mortgages or car loans) for pennies on the dollar and eliminate the debt altogether, allowing them to focus on saving assets such as their home and vehicle.

These professional debt negotiation paralegals have a ten year history of haggling with creditors and debt collectors to eradicate late fees, interest, over limit fees and a good portion of the principal allowing a consumer to pay what they can afford to purge them of credit card debt one credit card at a time and breathe a sigh of relief.

www.CreditCardDebtNegotiator.com offers a completely free, no obligation consultation for anyone interested in learning about the option of debt negotiation. Debt negotiation is NOT the same as debt settlement. With debt negotiation the consumer retains complete control of what account is settled, how much it is settled for and when the settlement takes place. Debt negotiators charge a small, one time flat fee to negotiator for the consumer with a database and years of learning the insider secrets of debt collection. A debt negotiator never collects or holds money for the consumer or pays any bills on the consumer’s behalf.

Questions can be directed to Consult@CreditCardDebtNegotiator.com or by calling (614) 453-5963. Visit http://www.creditcarddebtnegotiator.com/ for more information.

Debt Collector Agrees to Pay Over $1 Million in Fines

The Columbus Ohio collection agency “Credit Bureau Collection Services” (CBCS) signed a Consent to Judgment and will pay $1.1 million in civil penalties for failing to follow Federal debt collection laws and for defrauding consumers around the country. According to the Federal Trade Commission’s (FTC) complaint Credit Bureau Collection Services continued collection activities on invalid debts and also reported those invalid debts to credit reporting agencies without conveying that the debts were disputed. Even if CBCS received information that the alleged debt was paid off, did not belong to that individual, or that the alleged debt was otherwise invalid, CBCS continued to attempt to collect the debt from that consumer. These actions are in violation of the Fair Debt Collection Practices Act as well as the Fair Credit Reporting Act.

“Credit Bureau Collection Services has voluntarily entered into a consent decree with the Federal Trade Commission to settle a civil lawsuit, which contained allegations concerning its collection and credit reporting activities that took place several years ago, from 2005 to 2007,” the company said in its statement.” Additionally, CBCS states they have done nothing wrong but that their decision to settle was simply a business decision.

If you believe the law has been violated by CBCS, you may wish to contact an attorney to pursue any claims you may have against them. It hardly seems reasonable that a company that has done nothing wrong would agree to pay over one million dollars in fines to the Federal Trade Commission.

Bankruptcies Rise Again February 2010

More consumers are filing for bankruptcy even though the government states the US is in the recovery phase of the recession. February of 2010 saw an increase in bankruptcy filings of 14% over the February 2009 numbers and 9% higher than January of 2010. The February filings reached 111,693, clearly not indicating Americans are having an easier time surviving financially.  Moreover, the kind of bankruptcy being filed is more often Chapter 7, which allows all unsecured debts to be discharged, including credit cards.
Samuel Gerdano, American Bankruptcy Institute executive director reasons, "The debt-stress overhang from years of consumer spending has a more acute impact now because of troubling economic times.” This very well may be a contributing factor. The loss of jobs or reduced hours and/or pay coupled with rising gas prices certainly isn’t helping the average American in debt, however, what about the huge raises in credit card interest rates, over limit fees and the fact that creditors have reigned in access to available credit even though they have been “bailed out” and have returned to granting huge bonuses to high level executives.
Whether you believe Obama’s administration is or is not taking the necessary steps to implement the changes necessary to bring America into financial recovery, what is the banking industry themselves doing to fix the mistakes they have made and the problems their greed has caused.
In 2005 when more stringent bankruptcy laws went into effect it was supposed to force more families into Chapter 13, or the repayment bankruptcy whereby most debts are repaid at a certain percentage over several years. The American Bankruptcy Institute states the number Chapter 13 bankruptcies decreased by 3% from January 2010 to February 2010. Generally anyone who owned a home had to filed Chapter 13 in order to save their home, however with so many homeowners “under water” or “upside down” on their mortgages whereby they owe more than the value of the property, many do not see any point in a Chapter 13 to save the home. Tossing the property into the bankruptcy and being rid of it is a better option.
Also important to note: bankruptcies were up by 32% from 2008 to 2009 according to the Administrative Office of the U.S. Courts. Chapter 7 filings were up 41% in 2009 while Chapter 7 filings rose just 12%. The bankruptcy rate has risen each year since the law was changed in 2005. "We are already on a faster pace in 2010 than we were a year ago," Gerdano says. "Consumer filings will likely surpass 1.5 million filings this year." From those numbers it is easy to surmise the 2005 bankruptcy overhaul isn’t providing the changes or relief that was hoped for, on a multitude of levels.
Bankruptcy can present a hard blow to not only ones finances and credit score but also to one’s self esteem and outlook on the future. No one wants to see their name in the local paper under “Bankruptcy Filings” or deal with the humiliation of friends and family finding out. When credit card debt gets out of control there are other options and the one which can provide the most relief, quickest and with the least embarrassment is debt negotiation. Negotiating an outstanding balance down to pennies on the dollar, paying it off without the entry of a bankruptcy on one’s credit report (or in the public record) can provide relief and fresh start. For more information from a credit card debt negotiator, get a free consultation from the debt negotiation experts at www.CreditCardDebtNegotiator.com, call (614) 453-5963, or email Consult@CreditCardDebtNegotiator.com.