When Someone Should Consider Filing for Bankruptcy

When faced with foreclosure, some homeowners get affected emotionally and this leads to irrational decisions as to the timing of bankruptcy filing. Knowing when to file for bankruptcy can change the game plan for you. In some scenarios, filing for bankruptcy before foreclosure, is recommended while in others, filing for bankruptcy after the foreclosure is complete can be the best option for you. Knowing the pros and cons of each approach can be an eye opener and certainly an advantage to you.

Filing for Bankruptcy

Understanding Bankruptcy Discharge and Automatic Stay

An automatic stay immediately goes into effect the moment you file for bankruptcy. The stay freezes any collection activities that may be initiated by your creditors against you. During this period, the creditors cannot take your property or money and any law suits are paused.

When at the conclusion of your case, a discharge is entered by the court, the stay is then removed and any lenders whose debts weren’t wiped out by the bankruptcy can restart the collection process. It is important to know that bankruptcy does not eliminate all debts, but can take off quite a huge chunk.  Luckily, deficiency is among the debts bankruptcy discharges.

Scenario 1 – Filing for Bankruptcy before Foreclosure

Before foreclosure, you can file for bankruptcy and this has its unique advantages. Below are some of the situations when you should consider this option.

Loan Modification Purposes

Quite a number of clients in foreclosure want to strike loan modification agreements with their banks. If you happen to file for bankruptcy during the early stages of the foreclosure process, the foreclosure sale will be temporarily stopped by the automatic stay.

When the bankruptcy case is concluded and the court wipes out your debts, the foreclosure will then resume, but at this point, you will have ample time to negotiate with your bank for a loan modification before the foreclosure process is complete. The advantage of filing for bankruptcy early enough is that some of your debts will be discharged and this means chances of your bank approving the loan modification are high.

Relief and Peace of Mind

In case you are not interested in keeping your home, filing for bankruptcy before foreclosure sale will remove the lingering deficiency balance and this means you won’t need to worry about it once the foreclosure goes through. Even if your attempts at loan modification do not succeed, you are free to proceed with life knowing that there is nothing you owe.

More Time to Spend in Your Home

Filing for bankruptcy before a foreclosure sale brings into effect an automatic stay which prevents the progression of the sale process. This effectively lengthens the time the lender will take to sell off your house and certainly give you more time to organize yourself and spend in your house.

Chapter 13 Bankruptcy

This enables you to have an arrangement with your creditors where you remit periodic payments to them over duration of 3 to 5 years. In exchange, you keep the property. The advantage of Chapter 13 bankruptcy is that it gives you the opportunity to re-service your mortgage on a new repayment plan. This is an opportunity you will not have had if you had filed for bankruptcy after the foreclosure sale.

Scenario 2 – Filing for Bankruptcy after Foreclosure

On the flipside, it may also be advantageous for you depending on your unique situations to file for bankruptcy after the foreclosure sale goes through. Below are some of the situations where adopting this approach is recommended.

Condominium or Homeowner’s Association Dues Payment

If your condominium or Homeowner’s Association dues are assessed prior to filing for bankruptcy, you are not liable for payment. This means filing for bankruptcy after the foreclosure process is complete puts you in a safe position with regard to the payment of dues assessed after the filing. This is because the property does not any longer appear in your name. The dues assessed before you file will be effectively discharged.

Filing for Bankruptcy to Avoid a Deficiency

If your motivation for filing for bankruptcy is mainly to get away from your mortgage deficiency, filing before the foreclosure sale may not be helpful to you. Inasmuch as the bankruptcy discharges your liability to mortgage deficiency, there are situations where you may still avoid deficiency liability without bankruptcy.

For instance, some state laws bar mortgage lenders from initiating legal charges against previous homeowners for deficiencies on specific types of loans. You may also benefit from waiver of deficiency particularly if you have an attorney fighting for foreclosure or you lodge a short sale application.

Foreclosure is certainly not a situation anyone would want to be in. In certain cases a short-term solution like a payday loan can help obtain financial relief and avoid default without necessarily enlarging your debt cycle. Payday loans by their very nature ought to be paid within a short duration and this can tremendously boost your credit score thus putting you in a better position when negotiating loan modifications.

Would You Choose Blackjack Over Binary Options?

Binary Options trading involves investing funds after predicting the outcome of an asset within a given time frame.  It has been likened to gambling but this is not a fair comparison.  Binary Options do result in one of two outcomes; you either predict correctly and ‘win’ your trade, or, you are incorrect and ‘lose’ it.  There is always one winner and one loser; in this aspect it is similar to gambling.

However, every trade is a result of studying the market and using analysis to understand what will happen next.  Of course, it is impossible to get it right every time, otherwise everyone would be doing it!

Binary Options

There are several similarities which are worth considering further:

The House Wins

If you have ever visited a casino you will be familiar with the concept of gambling.  In effect, a player places their funds on a specific activity and hope it lands in their favor.  This may be that a specific color comes up or even a number.  If you are right you win; although the amount you will win depends on a variety of factors, including what other players are doing.

Unfortunately, when gambling, the house will almost always ultimately win.  It is almost a mathematical certainty that the longer you play the more the odds fall in favor of the house.  Whilst this applies to most gambling activities, it is not the same with Blackjack.  Experienced players and those who are able to track the cards will be able to assess the odds on each trade and play the game to ensure they win more times than the house.  This is only possible because there is an element of skill involved and not just luck.  In effect, this is the real difference between gambling and investing, the amount of skill necessary.

Is Blackjack the same as Binary Options Trading?

The key is information.  A good Blackjack player will know which cards have been dealt and have been used.  This means they know what is left in the pack and the chances of getting the card they need will decide whether they can play or not.  The more information they have the better their decision will be; this is exactly the same principle that binary investors trade by.

The information in Blackjack is cards, in binary options it is the market conditions, the current price trend, the history of the asset and the other market influences.  Understanding how all these factors can affect the price of a given asset is essential to know when to trade and when not to.  The better prepared you are the more likely that your trade will be successful; just as with blackjack.

Favorable Odds

It should now be obvious that whilst information is key; it is your understanding of that information which will allow you to trade successfully.  In the same way that a blackjack player must be able to predict what cards are left and the odds of getting a desired card, a binary trader must understand what to do with the information they collate.

Whilst you will never make a profit on every single trade, careful analysis and interpreting the data properly will increase your chances of a successful trade.

Preferred Investment

Assuming that you accept there are similarities between playing blackjack and investing in binary options, you will need to decide which the right one to ‘play’ is:

Blackjack is still a game; every game must be evaluated and played according to the information available in that moment.  Binary options, however, is a longer term option.  The information collecting on one trade affects another, helping you to understand the movement of an asset and be more accurate in future predictions.

In general it is more accessible to open a binary trading account and you are likely to receive more incentives for signing up to one.

Finally, and perhaps most importantly, your winnings and even losses are unpredictable when playing blackjack.  As the cards are dealt you may need to play additional hands which could increase your stake and your return is a variable.  However, when trading in binary options you always know the maximum you could lose and how much you could gain.

Gambling

Despite the similarities, binary options cannot be considered to be a form of gambling.  The results are driven by the amount of information you have at hand before you start trading.  The concept of binary trading has more in common with standard stock market investments, except that you are not purchasing the shares, only the options on the shares.  To be successful at binary trading you need to adopt the same attention to detail that any stock market trader takes ( plus you need to check binary options brokers reviews and select your broker).  This is the fundamental difference between binary options trading and blackjack; with blackjack you can win by pure luck; repeatedly.  But to be successful at binary options you need to study the market and understand the trades you make.

Choosing the Right Option for your Binary Trade

Buying and selling stocks on the stock market is a very traditional approach to financial investing ( read about put and call options ).  It is something which has been undertaken for many years.  However, alongside the considerable risk of investing this way you will need to have a significant amount of capital to help you get started.  A viable alternative which is becoming better known is the binary options trade.  The biggest advantage of this type of trading is that you can never lose more than your initial investment and you will always know what profit you can expect to make; assuming you are successful.

Binary Options

It is also easy to understand and get started in; although to make consistent profits you do need to have an understanding of the financial markets.

Ease of Access

Binary options trade is a viable and easy way to start your investment portfolio.  All you need is to create an account and fund it.  There are a variety of different funding options but the average in the industry is $250.  You then choose an asset, a price direction, the amount you are willing to invest and the expiry time of the option.

Should you choose to trade with the simplest approach you will only need to pick which way the price is likely to move.  As you can trade in both directions you will be able to make money even on a falling market and with only the smallest of price movements.

There are also higher risk options, one of which is proving to be very popular and can provide you with returns as high as five hundred percent!  This is to specify a price that the asset will touch over a weekend; if it does then you can see an excellent increase in your capital.

Trading Successfully

The reason why this investment option is affordable is that you never need to purchase the stock; you are simply buying an option which says what the stock will do.  If you are correct you will gain a profit; if not the broker will gain your funds.

To ensure you win more than you lose it is essential to use all the tools available to you.  There are two main types of analysis:

  • Technical; this refers to studying price charts and using historical information to estimate what will happen in the future.
  • Fundamental; in contrast this technique looks at what is happening in the general economy and the financial markets. You may also look at the specific company to see if it is experiencing any big ups or downs.

It is best to use both types of analysis to ensure the best possibility of placing successful binary options trade.

The Great Leap: How to Start Strengthening Your Financial Base at the Start of Your Career

For any student that is on the verge of graduating very soon, life is already a dilemma as the aspect of getting a good job and getting established financially looms over. Things seem too difficult and the financial insecurities you currently experience are not welcomed by you. Being at a great financial position at the time you retire depends on what you do now to get going and although this might seem very difficult right now, it is not yet entirely unattainable if you do the right things and make the most out of every opportunity you have. Strengthening your financial base requires planning and determination to not move out too much from those plans.

Strengthening Your Financial Base

Here are some ways in which you can start strengthening your financial base right from the beginning after your graduation:

Invest in Yourself:

You should not stagnate your skill set after you graduate and end your learning curve with your convocation ceremony. Any investment you make in yourself today will outweigh all the financial plans and savings you start making now. Saving is a great option for anyone who wants to feel secure financially but saving just makes your money safe for the time, it doesn’t make it grow and even if you are earning interest on your savings, you are far better off investing that money on yourself and making yourself worth more. Any increase in your skill set is bound to shake up your current earnings towards north. Make smart career changes and keep learning, you are the best asset you have.

Savings Don’t Matter, Planning does:

A lot of people who have achieved great financial and career success have a single thing in common, i.e. they all had a plan in place. A plan helps you align yourself towards behaving in such a manner that will help you actualize your plan. Let’s say your plan is to own a two storey house in the sublime suburbs of your city when you retire. Now that you have a plan on what you need to do, you will start devising small milestones in order to actualize that plan. Let’s say you ascertain that in order to buy that house adjusted for inflation 30 years from now, you need to start saving 10% of your monthly income in an interest based account and save 5% of your income and invest it in stock options. This will allow your mind to be goal oriented instead of just dreaming up of things. This is a sure fire way of achieving your financial goals i.e. to have a plan in mind of what and how you want to achieve something.

The Mindset:

Saying all of these things is quite easy but achieving them through vigor and intention at your command is something entirely else. The main thing you need to develop to do all of this to build your mindset. At the start of your career, accustomed to living in frugality during your student years when there was a cash crunch, you will start to experience a phenomenon known as excessive cash flow which stems from your initial income being much higher than your current spending habits. The tendency to start spending right away is very strong, as you have all those unfulfilled desires like buying your first car or your first expensive smartphone, resulting in you accumulating debt right from the start which is a very bad omen for your financial stability later down the road. You need to develop a mindset of thoughtful spending where you spend only on those things which carry a certain value for you and not just for the heck of it. You need to prioritize your goals and instead of paying the first installment of a shiny new car, see if you have an unsettled student loan and start paying it off by gathering information regarding you can manage your student loan through your current income. Lesser debt means higher ease of investment, your money instead of going into something unproductive and depreciative, goes into something that has value and makes your credit standing better. Mindset is absolutely necessary for developing a great financial standing. You need to inculcate these habits, no matter how painful or stressing they might seem today but they are guaranteed to pay you dividends in the future.

Here's How to Shop Wisely For Your First Home in a Competitive Market

When thinking about buying your first home the process can be overwhelming and time-consuming, especially in a competitive seller’s market when time is crucial.

tips for buying your first home

Before diving into the process of shopping for your first home, consider these tips to make the process less daunting and more enjoyable.

  • Think of the future and not just the present when deciding what you want in a home. Think of how long you intend on staying there and if you might need more bedrooms in the future for children or more land for pets or recreation. Being in the process for the long-haul ensures you don’t have to go through it all over again in a few years if life’s circumstances change.
  • Determine if you can afford it. Crunch the numbers before you fall in love with a home that is drastically out of your price range. It’s rather simple to plug your income into a basic mortgage calculator to see how much you can afford to spend on housing. There are other factors that come into play such as the interest rate, required down payment and length of the mortgage, but having a rough idea of what is affordable eliminates disappointment from falling in love with homes that simply aren’t feasible in your budget. Don’t rush this step because finding the right mortgage for you is just as important as finding the perfect home.
  • Be flexible and prepared. A competitive market doesn’t always give you the wiggle-room you might have in a buyer’s market when it comes to putting in an offer or asking the seller to accommodate your requests for renovations. Don’t try to low ball the seller with an offer that is likely going to be rejected. Only put an offer in if you’ve been pre-approved for the amount so the seller knows you’re serious and is willing to work with you to get their home sold. They’re more likely to consider you if they know you’ve already been pre-approved for the financing. It also helps to give the sellers a couple days to move after closing so they’re not as stressed because selling a house isn’t a stress-free experience either.
  • Work with a reputable realtor. Don’t wait until a weekend open house to look at a home that you really want. It could be sold by then, or the sellers could be in negotiation with other potential buyers. Tell your realtor exactly what you’re looking for in a home so that he or she can contact you if something that meets your requirements gets on the market before some else snatches it up.

Try to enjoy the home buying process even if it is overwhelming. It will be worth it in the end when you’re picking out new paint colours and decorating to make the house a home.

When You Need Faster Approvals, An Online Loan is Your Best Option

Running a small business is like operating a small boat in a stormy sea. You may start off heading in the right direction, but, between the thrashing winds and the turbulent swells, your boat is lucky to stay afloat. Should a big wave come crashing down on you, you need to be bailed out now. For small business owners, it is difficult to anticipate all the forces coming at you that can take you off track, and, when the need for money arises, there is no time to wait. Bills have to be paid, payroll has to be met and supplies have to be purchased- and many small businesses are just one unpaid invoice away from a severe cash crunch. That’s why many business leaders can’t wait when there’s a need for a cash inflow through a lengthy application and underwriting process. Luckily, online small business loans can help.

online loan application

It would be easy to advise small business owners that they should anticipate these situations and have a lender lined up for a short-term loan or business line of credit beforehand. However, the reality is most small businesses can’t qualify for a traditional loan under the strict qualification requirements set by banks. For businesses that do try to obtain a traditional loan, the process is so long and arduous, their business could go under before they know if they have been approved or not. Fortunately, business owners do have an option when they need to borrow money in an instant, and that is with an online lender.

Online Lenders Offer Quick Turnaround…

Since 2010, online lenders have grown in numbers and popularity by filling the vacuum left by traditional banks which all but abandoned the small business market. These non-bank lenders are not tied down by many of the lending and capital requirements that force traditional banks to avoid borrowers with less than perfect credit.  Instead of focusing solely on the credit history of the business owner, online lenders are able to utilize state-of-the-art data analytics to determine the credit risk of a business, even if it has been operating for only a year. That is how they are able to review a loan application, grant an approval and issue funding, all within a day or two.

…But at a Cost

Online business loans are not inexpensive, but they are much cheaper than payday loans. The interest rates are based in large part on the personal credit scores of the business owners, but other factors are also considered, such as the business’ cash flow and its prospects for growth.  The annual percentage rate (APR) can range anywhere from 10% to more than 100%. Business owners with a personal credit score below 500 can expect to pay higher rates, from 40% to 110%, while credit scores above 600 might be worthy of rates between 10% and 40%. Loan amounts can range from $5,000 to $500,000 depending on the amount of revenue the business is generating. When possible, look at alternative platform lenders with a line of credit option that can help you control interest costs.

When You Need it Now

Aside from the easier qualifications for online business loans, the biggest advantage for business owners is the ease of the online application process and the quick turnaround on funding. Online loan applications typically take less than 10 minutes to complete and, with many lenders, approvals are granted within minutes, or a couple of hours at most.

Although quick access to cash comes at a higher price, keeping a business operating during an unexpected cash crunch can be worth the cost as long as there are enough profits to repay the loan. When a business is short the cash to pay the bills, its credit standing can be hurt, making it difficult to qualify for traditional financing down the road. For many small businesses, a quick turnaround online loan may be the best option to keep cash flowing, while protecting their good credit.