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Purchasing a home has become a staple in today's society, but holding onto that dream of home
ownership has slipped past many in the form of home foreclosures. The lending industry in a blind
rush to offer mortgages to anyone that breathes, has set off an explosive disruption in the market place, by offering loans that either people did not understand the type of loan they were acquiring or giving loans to people that should not have them in the first place.

Adjustable rate loans have seen their fair share of victims in the last few years. These loans lock you into a certain rate for a number of years, but then jettison to a new rate according to the Fed's rate at the time. That new rate may lock in for one or two years at a time.

The problem with this type of loan is you do not know what rate you may lock into in a few years. If the rate jumps 3 to 5 points, your loan payments could double. Since your income hasn't doubled, it leaves you with a huge payment that you may not be able to make, hence the foreclosure.


For this reason it is important to know the type of home loan you are getting from the lender. A 30 year fixed rate leaves behind no surprises. The rate is the same for the lifetime of the loan. While an adjustable rate may seem fine at the beginning, you may be in for a rude awakening down the line when you can no longer meet your payments.

Make sure you understand the mortgage loan completely before signing on the dotted line.

Avoid Foreclosure- Choose Your Mortgage Wisely

Getting Past a Foreclosure

Getting a home loan after a home foreclosure is going to be hard. Most mortgage lenders are gun shy at lending to even good credit customers. Your first task will be to establish yourself as a good credit risk.Start by taking small loans out, such as 6 months same as cash offers and paying them on time and before the 6 months are up. Pay all utility and other household bills on time. You must show mortgage lenders you can be a good credit risk and a good investment for them, and this takes time and work.

Avoid trying to get a loan too soon after a foreclosure. Most likely the lender will not allow you to take out a loan until they see a history of paying off debt. They need to see on paper that you are paying your other bills, such as utility and credit card payments. A secure job that you have had for a long period of time will also help. This may take a year or two before a bank will consider you a good credit prospect for a home loan. Don't let this disappoint you though, just focus on bringing your credit score up and then look for a lender who will work with you.
Foreclousure Cleanup

Pricing a foreclosure cleanup involves knowing what is expected of the job. Some homes may require a small amount of cleaning and others may need major purging. Foreclosures can range from simple tidying up to removing debris, fixing repairs and painting. Once you discover the particulars for a certain job, you can use these factors to determine the correct pricing for each project.

Figure the square footage of the home. The larger the home, the more time and materials to clean it. Factor in trash removal from inside and outside the house and any yardwork. Figure all the cleaning involved for each job. The cleaning materials and labor costs factor into items such as steam cleaning carpets, window washing and cleaning appliances.

Negotiate prices if repair work is expected as part of the cleanup job. Small repairs such as fixing a loose door knob or large paint jobs all add to the labor, materials and time spent on the project. Check to see if light fixtures or to be taken down or other elements removed.

Negotiate prices if repair work is expected as part of the cleanup job. Small repairs such as fixing a loose door knob or large paint jobs all add to the labor, materials and time spent on the project. Check to see if light fixtures or to be taken down or other elements removed.

Decide if you want to price the foreclosure cleaning by the job or by the hour. Pricing by the hour may help in case of unforeseen issues, but most property owners prefer a set price.

Write a price list for all the cleaning materials and tools, and figure the amount of time for each job. Determine the amount of labor cost. After figuring the material and labor cost, add approximately 30 to 50 percent to the total for profit. You may figure less or more for profit, depending on the competitiveness of foreclosure cleaning jobs in your area.

Bank Foreclosures