House Panel Approves Bill to Assist Borrowers

The House of Representatives Financial Services Committee on Thursday approved a sweeping bill led by the Democrats to finance $300 billion in distressed mortgages with the aim of helping homeowners facing the threat of foreclosure.

The Financial Services Committee approved the bill 46 to 21, with 10 Republicans joining the Democrats in favor of it. The committee chaired by Rep. Barney Frank, the main author of the bill stressed the need for urgency.

“There are people who made loans that should not have been made; there are some people that were wrong to take loans out, some wrong to make the loans. If nothing happens all those loans go under foreclosure, the economy suffers,” he highlighted.

The Massachusetts Democrat also said he hoped President Bush would sign the bill if it reached the White House as part of a wider package and it contained the legislation that Mr. Bush had demanded.

The new loans would be limited to no more than 90 percent of a property’s value based on an updated appraisal. The government would retain a stake in any future sale of the property, worth 3 percent of the initial loan balance or 50 percent of net profit from a sale, whichever is greater.

Borrowers would have to demonstrate the ability to repay the new loan and if they default, they will forfeit the property. Democrats say the plan could help as many as 2 million homeowners.

House Panel Approves Bill to Assist Borrowers
By: MortgageLoan.com

 

Impossible – Loans Even With Bad Credit?

Impossible – Loans Even With Bad Credit?
by Landon McGehee

There are ways to consolidate your debt, even if your credit is bad. You may not even know you have bad credit until you check it, right before you really need good credit. Most of the time, bad credit accumulates when you fail to pay credit card bills and the interest that goes with it. When you accumulate too much credit card debt without being able to repay it, you will no longer be able to use the credit cards, and your credit score will drastically drop. You can fix your credit by getting help from a debt consolidation company.
The debt consolidation company will look at your finances, then talk to your creditors to work out the best way to help. They will consolidate all your bills into one, while at the same time, reducing the interest rate.

Consolidation will relieve a lot of stress, and it will also show that you are paying off your credit, which will take away your negative credit. Next time you want to get a loan, it will be much easier.

You can also repair your credit by taking out a debt consolidation loan to immediately pay off all of your debts to credit card companies. You will then owe just the consolidation company, but it will show that all of your credit cards are paid off. You have to qualify to take out this type of loan, though, just like any other loan.

Be very careful that you negotiate all of the details of the loan. You have to make sure it will really help you.

If you have bad credit, need a loan, and don’t have time to consolidate before getting the loan, it is possible to get a private loan from a bad credit loan lender. You can use this loan to consolidate your debt, or for anything else that you really need. Beware, though, the bad credit loans have quite a high interest rate, and a high down payment requirement.

You can even get some loans, such as payday loans or cash advance loans, without a credit check. You can only borrow a small amount though, and it has to be paid back quickly.

You should only get a bad credit loan if multiple financial institutions have turned you down. If you need to get a bad credit loan, you should not have the payment period exceed 12 – 18 months, because of the high interest rate.

If you have bad credit, you should try to fix it any way you can so you can acquire lower interest loans. The high interest loans are more difficult to pay back, and if your credit isn’t great in the first place, this can be even more difficult. You’ll be amazed how much lower interest rates will reduce your payments. Contact a debt consolidation company to see how they can help you.

About the Author
Landon McGehee continues to learn more and enjoys shares that knowledge providing resources, advice and tips on topics like bad credit secured consolidation loans.