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The Pluses and Minuses of Hard Money Loans

Hard money loans are an alternative form of getting money that many people are unaware of. When you need a loan in a hurry and are shunned by your bank or credit union because of your low credit or for other reasons, hard money lenders may lend you the required sum for as long as 10 years (or longer depending on circumstances). They look at your assets not your credit; therefore hard money lenders may be an alternative to consider. Here are some pluses and minuses of Accredit Moneylender Singapore

Pluses of Hard Money Loans

  1. Rapid Process – Banks take 60 days at least to consummate the process. The typical hard money lender will hand you the loan within 1-2 days. Local lenders who know you may even give you the funds that same day. This works out particularly well for you if you need the money for some fast purchases, for emergency need, or for other situations such as when you want to move on with construction in order to sell your property. It also helps you impress the buyer when you want to jump in front of a bidding queue to land a certain property.
  2. Less paperwork – Banks and traditional lending institutions tend to haul you through a grueling underwriting process that involves signing lengthy and complex forms and then waiting at least a month to see if you’ve been approved. Hard money lenders waive that. Each has his, or her, own system, and each deals with borrowers individually. Borrowers, therefore, tend to sign only a few forms. Lenders will ask you a few questions, and may look into your credit history. The Dodd-Frank Act of 2010 states that lenders have to make sure that borrowers can pay; that they are not charged humongous rates of interest; and that they are charged no more than two pre-payments (depending on circumstances). Lenders evaluate each application differently and make their conclusions based on your property value rather than on your credit. So even if you have bad credit, you may be able to get your hands on a hard money loan. The lender focuses more on the value of your property than on your credit.
  3. Flexible Terms – Banks may demand regular payments. The lender goes soft with you and often provides you with flexible loan repayment terms. (Again, this depends on the specific lender). So, if times are tough you can get by with only paying interest each month or with only paying the balloon repayment at the end. This makes it easier for you in the long run instead of causing you to make a hefty payment each month.

Minuses of Hard Money Loans

  1. High Interest – Hard money lenders charge triple the number of banks – and sometimes even more than that. Lenders can sometimes be capricious in their interest amounts, so it is important to shop around. Some lenders may offer comparatively reasonable rates, but we suggest that you negotiate since lenders know that they are your last resource and they may charge accordingly. Some of the states’ usury laws, such as those of Tennessee and New Jersey, prohibit hard money lenders from invoking excessive interest. Residential borrowers have recourse to further protection under Consumer regulations and the Dodd-Frank Act. If you’re a commercial borrower, you need to be warier since loan terms are more aggressive and you receive less protection.
  2. Low loan-to-value ratios – The loan-to-value ratio is how lenders determine how much money you’re going to get. For example, with a loan-to-value ratio of 70%, the lender will give you $70,000 for a $100,000 piece of property. Lenders usually give only 60% or 50% of your required amount which means that you’ll have to dig up the rest from somewhere else.
  3. Hard to locate – An honest and efficient lender may be hard to locate. You can find hordes of money lenders online but each lends only to one or several states and is certified to lend to the states that they deal with. You may have a few or none of the lenders that you prefer (or that will service your type of loan) in your region and you may have to travel to get the services that you want. In all cases, make sure that the lender carries licensing from the National Mortgage Licensing System (NMLS) and through her regulatory state agency.
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Three Weapons When Dealing With Debt Collectors

Falling into financial difficulties often means that delinquent debt is turned over to an in-house collector or an outside agency. If you find yourself facing calls from Debt Collectors, there are three weapons in your arsenal right now that you can use.

  1. You can simply ignore the calls. Get yourself a phone that will display caller id (you may have to contact your telephone service provider and sign up for the service) and ignore numbers you don’t recognize. Some collector calls will also come through as “private caller”, and “out of area”. This is probably not a long term strategy, but it buys you time until you are ready to start negotiating. And believe it or not, often collectors will stop trying. They understand the odds of collecting money and will often move on to people they can communicate with. This also created leverage for you when the time is right to work out the best deal possible.
  2. If you are being called by a third party debt collector (not the original creditor), you can send a debt validation letter. Debt validation is a legal right provided to you under The Fair Debt Collection Practices Act. It essentially forces the collector to provide documentation that you rightfully owe the money they say you owe and it forced them to prove that they have the right to collect the debt. And if they can’t, they can’t collect, they can’t contact you, and they can’t report the collection to the credit agencies. Believe it or not, this technique is highly effective and achieves remarkable results.
  3. The debt validation letter’s little brother is the cease and desist letter. A cease and desist demand is also a right provided to you under The Fair Debt Collection Practices Act. It basically forces a third party debt collector to stop contacted you, period. The downside is that the debt can be passed on to another debt collector and you will have to go through the process again. In reality, a cease and desist letter should probably only be used once a debt has been validated.

I have good news and bad news. Often, third party collectors will ignore the law and continue to contact you and/or report a debt even after they fail to validate it or receive a cease and desist letter. Here is the good news. According to the law, each violation is punishable by a $1,000 fine. That means they can be vulnerable for thousands of dollars and there are a number of lawyers willing to take them on.

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All You Need To Know About Personal Loans

Loans are of several types. It can be classified according to the needs of the person. Suppose, if one wants a loan for his/her home, he/she should take a home loan. If the person needs money to fulfill the educational needs he/she shall be allowed the educational loan. Other types of loans are Jamaica personal loans, payday loans, etc. However, when one is considering taking a loan he /she should keep in mind that the interest rates for all the types of loans do differ. In this article, we shall be dealing with the personal loan and will try to find out how one can get a loan.

A personal loan is something that you might need at any moment for buying anything of your choice. This can be a television, a fridge or even a designer dress that you have come across in the shop. This can be the medical expenses that crops up immediately without any notice. Anything and everything can fit into the personal loan bill.

To apply for a loan one needs to have a good credit. This will make the loan approval process quicker. If one is having a bad credit score then the chances of getting a loan are much less. So, when you apply for a loan make sure you have a clean credit report.

A bank would take time to approve for a loan as they check all details before finally saying you “Yes”. If you want a loan fast you can apply to those financing institutions that offer loans quickly. The crucial point of choosing these organizations over the banks is that they might charge high interest rates, although all the some are an exception in this case. And of course it is better as the process is fast and hassle free when you are really in need of money.

If you are applying for the loans please be sure to go through the terms and conditions of the loans. This will make sure that you are aware of what you are agreeing to pay.

What are the things you need to be careful about?

Be careful about the repayment terms. We advise you not to go for long term loans. There are certain companies that charge hidden amounts and you will never know what you are paying for. So, make sure that you do not fall into their trap. Always take a bill when you pay them so that you have proof of the money you have paid.