Are You Tired of Searching for A Perfect Credit Repair Service?

By David Wada

1) The latest figures show that an average American has a credit score of 677. The difference on monthly or yearly payments with a credit score of 677 and 720, for instance, is an average savings of $421 per month or $5,052 per year (i.e. house payments, car payments, credit cards, etc.).

2) A lot of people ask whether credit repair really works. The simple answer to that is, "Yes, absolutely." Millions of items have been removed from credit reports, and tens of thousands get deleted every single day (i.e. late payments, collections, bankruptcies, and foreclosures get deleted). A study released by the U.S. Public Interest Research Group in June 2004 found that 79% of the consumer credit reports surveyed contained some kind of error or mistake.

3) The Fair Credit Reporting Act guarantees the credit repair process to you. Although there are many credit repair companies out there, be cautious, however, to avoid being scammed.

4) The Credit Repair Organizations Act also guarantees that credit repair organizations must give you a copy of the Consumer Credit File Rights Under State and Federal Law before you sign a contract. They also must give you a written contract that spells out your rights and obligations.

5) Read these documents before you sign anything. And before signing, know that a credit repair company cannot:

* Mislead you with false claims about their services

* Take your money unless they have finished the promised services (Not half way; but completely)

* Start their services unless YOUR signature is on a written contract and they have completed a THREE-DAY waiting period

You have the power and right to cancel the contract without paying any fees during this three-day waiting period.

Before you sign a contract, be sure it specifies:

* The payment terms for services, including the total cost

* A description of the services down to the itty-bitty details the company will be performing

* How many days, hours and minutes to achieve their promised results...okay maybe not that specific, but really drill them on when the services will be completed

* Any guarantees the company offer

* Company title, phone number and business address

About the Author:

About The Author: David Wada, who has been improving credit in Northern California for thirty years, has written a very practical guide to clarify Credit Repair Companies. For a limited period, you can access a free copy by going to his Credit Repair Companies

Taking Advantage Of A Credit Legal Repair Service

By William Blake

When it comes to restoring credit reports, there can seem to be nothing more important at that present moment. That is because something so simple as a number can hold your entire life back and bring your plans to a screeching halt. There is nothing more embarrassing then being turned down for that new home or car based on a number, which you find to be inaccurate. If you feel that there is something on your credit report that does not belong then it is certainly time to take action.

Generally your basic credit report repair service will be able to assist you but if they cannot, then there are other options available to you. There is such a thing as a credit legal repair service that will also be able to help you if you find that your circumstances require a much bigger answer then that of what the smaller companies can offer you.

When it comes to legal issues, a credit legal repair service company is the place that you would want to use in order to make sure that everything is taken care of correctly and in the right time frame.

Where To Find Them

If you start your search with a basic company and you end up finding that your issues are bigger then what they can handle for you, they may be able to refer you somewhere. That company may have a list of a few credit legal repair services around you that can assist you in your particular situation.

If no one is able to refer you or you just know that you have to start with a credit legal repair service then it is probably going to be up too you to find the right one. If you know of anyone who has used this type of service before then talk with them about their experience. This may help you go in the right direction for finding the right help.

There are also television commercials because there seems to always be an advertisement for a credit legal repair service. Check into what they have to offer and see what all of their services cost. Make sure to shop around so that you are not being taken advantage of but do not go with a credit legal repair service just because they are cheap.

You want to make sure that they are actually going to be able to do the job right all while charging a decent price. You do not want to make the situation worse just because you decided you wanted to save yourself a few dollars.

About the Author:

Are debt consolidation non profit companies the best way to consolidate your debt? Maybe, but not always. Get the full story at the Inside Debt Consolidation website at http://www.insidedebtconsolidation.com

UK Payday Loan Application

By Marsha Smythe

This article looks at the way banks exploit customers with NSF and overdraft fees. It contrasts this with the other option known as payday or cash advances and proposes that these are in fact cheaper than bank fees. It goes on to show how banks lobby aggressively against the payday industry fearing cuts in there fees. The findings are based on a US study by the federal government and is freely down loadable.

This is an independent agency part of the federal government - created in 1933, just when thousands of banks failed. The 1920s and early 1930s saw thousands of banks fail. The FDIC is managed by a five-person Board of Directors, all of whom are appointed by the President and confirmed by the Senate, with no more than three being from the same political party.

In 2006 legislation allowed banks to apply automated overdraft programs - much to the detriment of consumers. This is a system where the bank honors customers obligations using computer rules to determine non-sufficient qualification for overdraft coverage. Data and information were gathered through a survey of a sample of institutions representing 1,171 FDIC-supervised banks, and a separate data request of customer account and transaction-level data from a smaller set of 39 institutions.

The Federal Deposit Insurance Corporation (FDIC) published the results of a two year study on the use of overdraft programs operated by FDIC-supervised banks. Astoundingly the study found that customers pay in excess of 3,500 percent APR on a NSF check - on average.Customers in low income areas were more than likely twice as certain to incur these fees.

The FDIC study reinforces the payday loan industry's position that short-term cash advance loans are significantly less expensive than traditional bank overdraft fees. The other major difference is than banks are automatically enrolling customers in programs that carry APRs and other fees that are in fact far more expensive than a payday loan. Namely 75% of banks did this.

The study concluded that a typical customer would incur fees of $27- for each $20 overdraft over a 2 week period. A $60- ATM overdraft in 2 weeks would incur an APR of 1,067 percent. A customer repaying a $60 ATM overdraft in two weeks would incur an APR of 1,173 percent and a customer repaying a $66 check overdraft in two weeks would incur an APR of 1,067 percent. Surprisingly, the study also concluded that the faster a customer repays an overdraft, the higher the resultant APR.

Some consumer advocacy groups like the CRL are lobbying to ban payday loans. This leaves customers with no option than to pay overdraft fees to the banks. CRL and others recently led the charge to pass HB 545, a law effectively banning payday lending in Ohio . In 2006, Ken Compton, CEO of Advance America, said, "Contrary to the CRL's spin, responsible uses of the payday product provides consumers firm footing to overcome unexpected financial circumstances".

Some key findings;

Over 90% of banks completed overdraft fees without informing the customer.Less than 8 percent of banks inform consumers that funds are insufficient before transactions are completed, offering the customers an opportunity to cancel the NSF transaction and avoid a fee.

Bank customers complaints about overdraft fees were received by twelve percent of banks.

Almost 9 percent of consumer accounts had at least 10 NSF transactions during a 12-month period. 4.9 percent had 20 or more NSF transactions.Clients of banks with 20 or more NSF transactions are charged $1,610 per year.

About the Author:

Marsha Smythe is fascinated by the concept of APR and how banks can get away with charging such high amounts. He makes available on his blog downloads from the Federal Deposit Insurance Corporation (FDIC). These are a must read for anyone contemplating overdraft versus payday loans. Although US bank orientated the same rules apply to both UK Payday Now and Canada payday cash.

Reverse Mortage and Power of Attorney - Bad Combo

By Krevi Vanrock

Just because something is crystal-clear to one individual, doesnt necessarily mean it will make any kind of sense to another.

Ill bet you think that I just made a common knowledge statement. You just stated the obvious cowboy, give me something original.

A Power of Attorney has never been straightforward in the real estate business. Typically, an individual will have a general power of attorney, and the title company will make the person switch it to a power of attorney that is exclusively for real estate.

Its a little bit of work, but it all works out in the end.

A group of three (husband, wife and mom) came to me last month wanting a reverse mortgage outside of Houston. One of the borrowers (mom) was not mentally capable to sign. That being the case her son had power of attorney.

The purpose of the reverse was to build a room addition on the home for a live-in nurse for mom. All three people are on title to the home.

The borrowers had a legal power of attorney, and it seemed like a simple transaction. Nope. Apparently the TX Dept of Insurance put the Kibosh on using POAs for mortgages purposes.

It almost begs the question, what is the heck is the purpose does a power of attorney? Afterall, without it, what is the choice for someone like my borrower above? They cant sign legally, so what do they do?

But does it make sense to insurance companies issuing title insurance on real estate? Apparently the answer is no. At least not in Texas.

I dont think it takes a rocket scientist to understand whats going on. Im guessing were seeing a rash of lawsuits between siblings and the title companies issuing title insurance are done with it.

A power of attorney with a legal guardianship wont even make them happy.

This issue creates a grim problem for my current and future customers as there does not seem to be a viable answer in the foreseeable future. Wish me luck.

About the Author:

Get loads of info regarding the texas reverse mortgage by clicking here. Also, you can have your answers about the Texas reverse mortgage here.

Exit Strategies for Upside Down Mortgages

By Jay L. Oderman

I'm not afraid to admit that I was one of the millions, caught up in the frenzy of the "easy refinance." Some of us bought cars, some of us went on luxury vacations. I bought some investment houses. Either way, were all in the same boat: Stuck in bad loans with increasing payments, and not able to refinance due to the sagging housing prices. Let's face it, most of us aren't going to qualify for loans if the house is worth less than we owe. So what are our options? Keep juggling and hang on? Dump the house and take the loss? Who can we trust to help us?

I haven't missed any payments, but I'm getting tired and my savings is circling the drain. I'm not going to be able to do this balancing act for much longer. I've stuck with my commitments until now, but I need help. I've got to find a way to fix this mess, and look at all of my options, and cut a deal with the banks. I've never been in this position before, and sometimes I think the banks would be more willing to deal, if I HAD missed a few payments!

My personal "end of the rope" was when my rental homes had each reached over $100,000 in depreciated loss. I figured that even if I kept making the payments, and the market rebounded, I'd be a slave for many years. In other words, if the market suddenly started appreciating again at the same rate or faster than "the good old days", let's say 15% a year, it would still take me 6.6 years to just regain the loss. No appreciation, no recovery of expenses, insurance, tenant hassles, taxes, etc. Just pumping most of my paycheck down a black hole. At one point, it just doesn't make sense anymore. The actual situation is probably worse because in this economy, the days of 15% appreciation are long gone! So what do I do?

This is the question I was facing when I first decided I was in trouble. Maybe your in the same position. I owe more on the house than it is NOW worth. The quintessential upside down loan. So I looked at everything from lawyers to banks to real estate agents. Here are the options I found out there. Some of them might be right for you . . . . .

1. Keep juggling the payments and keep the faith! This option is really subject to your income and monthly expenses. The question for me was if I was willing to hack it for 10 years. Who knows though . . . . it may take longer depending on when the market actually begins to recover. In reality, it will probably take MUCH longer. You know what they say, "You can't time the market!"

2. Try to renegotiate your loan with the bank: I've done this successfully. It's a good step if your home hasn't depreciated over $100,000. You just call up the bank, and as for the "loss mitigation department." You tell them your having a hard time, and they will send you a hardship package to fill out. You fill it out, looking as financially desperate as possible, and they will come back to you with a modified loan.

3. Short Sale: This is sort of a pre-foreclosure sale. Your late on a few payments, and the bank takes a serious look at you and threatens foreclosure. You find a realtor to represent you and present the hardship package. The realtor prices the home at a substantial discount and finds a buyer. They present the offer to the bank, and the bank usually accepts the deal, which is a positive situation for all. The bank is always interested in short sale instead of foreclosure as it saves them 10s of thousands of dollars in hassle and legal fees, and allow both parties to move on to new business. You should remember that there are still negative ramifications for short sales, even if less damaging than those associated with foreclosures and/or bankruptcy. However, short sales do carry less negative effects than foreclosures. Short sale sellers are widely seen as more credit worthy than foreclosed sellers. Case in point, Fannie Mae recently adjusted their guidelines to dictate only a two year waiting period for a short sale seller to buy another primary residence, while they extended the waiting period for foreclosures to five years.

4. A Deed in Lieu of Foreclosure is one of the banks least favorite options. This is where you just hand over the deed, and say goodbye to the bank. The lender has to then sell the house to recover it's losses. The bank will subsequently provide the borrower with 2 documents. One document will cancel the debt and relieve the borrower any further debt, and the other one assures they can never come back to you for the money.

5. Foreclosure: This is the final option and if you like to go to court, then this is the option for you. In foreclosure, the lender first sends you a summons to appear or foreclosure complaint. The borrower responds to prevent foreclosure and explains the problems at a hearing. The borrower can this point you can still pay the full amount and get the house back during this redemption period. After the redemption period is over, the lender sells the property a public sale or auction and getting as much as they can (or settle for). Any excess goes to you, the original owner/borrower. If the sale amount is less than the loan amount, and in your case it probably will be, you will still owe the balance to the lender. This amount is determined as a result of deficiency proceedings.So as you can see, as we go down the line, the options get worse and worse! As far as my situation, I have to walk away from at least 3 houses. I'm losing a hell of a lot of money, but I'm getting my life back.

About the Author:

Did you like my article? Follow my story and see what happens at HouseShortSale.org. You'll learn lots and find resources for your own situation.

Platinum Credit Cards

By Gray Rollins

Platinum credit cards have greater supremacy when it comes to credit cards' benefits and privileges, much better than the Gold or Standard credit cards. The applicant for this card should have excessive figures of income to be qualified. Aside from the benefits and great opportunities, the status associated with Platinum credit cards is another reason why people prefer this card.

One type of platinum credit card offered is the American Express Platinum credit card. This card will allow you up to $100,000 in credit depending upon your credit history and income. This is a highly prized card because of the status of having one and the benefits that come along. Known for being very liberal with credit line increases, they are more so the longer you keep your credit card, American Express also offers a 1.5 rewards points every time you purchase an item using this credit card.

MasterCard Platinum credit card is another card that is accepted worldwide and offers reasonable interest rates for purchases. The MasterCard credit card company only requires prompt payments to maintain the reasonable percentage rate.

This platinum credit card is perfect for individual who are earning high income to afford the monthly payment of the balance due each month. Paying only the minimum of the outstanding balance of failure to pay on time will cause the interest rate to go up to 35%.

The Discover More Platinum credit card is another credit card that is suitable for people who can afford the payment but prefer the 0% annual fees and low introductory APR. The APR will remain low if the payments are made on time and good credit score is maintained. This card also gives high spending limits to cardholders with rebates and bonuses for every purchase. Online account is also accessible anywhere.

Platinum credit card features wider range of benefits and opportunities than the silver or gold credit cards. It extends additional services such as concierge services, travel services, and purchases on high class establishments. Once you met the qualifications of being a high earning individual with high credit score, you can avail this Platinum credit card and experience its benefits and privileges.

Platinum credit card is also offered to business institutions for their company purchases. The features of the business credit card are the same with that of the personal credit card. Some credit card companies offer the platinum business card with no APR on the first twelve months and low APR thereafter, while some offer no annual fee. To avail the 3 to 25% discount on purchases, buy the materials your business needs from those stores affiliated with the credit card companies.

There are cards which are advertised that are called platinum shopping cards. These platinum cards are not to be confused with a regular credit card. Although they are credit cards, they can only be used to buy merchandise at the participating stores. They do, however, report to the credit bureau so they can help to build your credit score up by using it to purchase merchandise and keeping the balance paid.

About the Author:

All Platinum Cards are not created equal. In fact, some are just downright lowsy. Get the finest Platinum Card available by applying for the American Express Platinum Card today and you'll receive 25,000 points as a special one time bonus.

The Essentials of First Time Home Mortgage Loan Borrower

By Matthew Sanz

Property ownership and buying a home for the first time can be an exciting yet mind-boggling experience. Before you make a decision, it is important, therefore, that you know your options as well as the basics of home mortgage loans.

What is a mortgage?

In simple terms, a mortgage is simply a loan you make to pay off your home. If you are a first time home mortgage loan borrower, you may be asked to deposit a down payment and pay for the rest (i.e. monthly) through a mortgage loan. Establishments that can offer mortgages are mortgage specialists, building societies and banks.

What are the types of mortgage?

-The repayment mortgage - monthly payments are made within an agreed term until loan and interest are paid off.

-The interest-only mortgage - monthly payments are made for a period of time as agreed in the contract, except payments cover only the loan's interest within the initial term. Afterwards, you are asked to make interest payments in full every month.

-The fixed-rate mortgage - requires you to pay for a fixed interest rate over the whole term. Interest rates do not change and therefore offers a feeling of certainty for most borrowers.

-Adjustable rate mortgage type - has rates that adjust after an initial term containing a fixed rate. Rates could adjust depending on the rise and fall of other economic rates. This could sound daunting for first time home mortgage loan borrowers, but those who want a lower initial rate can benefit from this type of mortgage.

What are the requirements?

1. Good credit report:

The credit report will determine whether the lender can approve your loan application or not, or to increase the interest rates for your loan or not. Lenders especially want to make sure that a first time home mortgage loan borrower has the ability and willingness to make his or her payments.

2. Insurance:

Insurance can be used to pay off your mortgage if you have just been in an accident, lost your job or become sick. You might be required to use life insurance to pay off your mortgage should death occur. What are some tips I can use before purchasing property?

- Improve your credit report - Avoid applying for more credit and pay on time. - Review and correct credit information - Contact the credit bureau to correct inaccuracies - Get the best program - Choose a plan that is most suitable for your situation. - Research - Jot down your price range and find out how much you can borrow. - Do it online - Using the Internet could save you more time and money. Lenders now offer mortgage calculators online that you can use to predict which mortgage program is most suitable for you. - Choose the best mortgage specialist - Determine if the specialist works in a company that is likely to stay in business whenever rates fluctuate. - Ask for advice - Look for recommendations so you are familiar with what kind of mortgage plan you are getting into.

Of course, these are only practical suggestions and should not be used in legal matters.

About the Author:

Learn more info as a first time home mortgage loan borrower. Find an online home equity mortgage calculator now.

Lower Interest Rates On Loans Mortgages

By John Bear

As many people nowadays have loan mortgages for all sorts, the controversy regarding higher or lower interest rates have been getting our attention for the past years. How would you qualify for a significantly lower rate that would somehow help you save some money? Well, two of the most common answers for that are maybe the rates for the loan you just took have dropped or you have a very high credit rating from when you took the loan and now you get to have a lower interest rate.

Now, there are simple ways to help you save a significant amount of money especially if your loan happens to be over a long period of time. First, you have to spend some time in looking at financial matters such as this and talk to your loan or mortgage company. Ask if there is a way to help reduce your monthly payments or leaving you enough money to pay off the loan earlier, like maybe considering refinancing your higher interest loan with one that has a lower rate.

Second, read the loan's terms and conditions and ensure that when you save enough money to pay off the loan earlier, you will not be left with an early settlement fee. You can search for important matters such as this on the phone, Internet or having a one-on-one talk with a financial advisor.

And of course, before taking out new loans or refinancing existing ones, be sure that you are completely happy with the decision you are about to make and again, check the terms and conditions.

As we all know, the credit score will always the biggest part when searching for that low interest rate. You will be relieved if you know that you have kept all of your payments existing and your previous loans updated. Now, if a loan company hesitates to give you a lower rate, don't be afraid to ask why and ask for an advice to how you can be considered for such a low rate.

If your existing loan has a high interest rate then you may want to consider taking out a zero percent interest free credit card and moving the loan onto the credit card. But if you do this, make sure you know when the zero percent free rate will end as you may realized that you are paying a higher rate of interest after this point.

The handling fee that is charged by the credit card company should not outweigh the savings that are made by having the loan moved.

If you are taking out loans mortgages although the interest rates on a variable rate mortgage may seem appealing, always remember this rate can go up or down. Although a fixed rate offers you the security for a certain length of time knowing that you will not be affected by a sudden increase in interest rates of loans mortgages, you may find that the rate drops and you are paying more than you are happy with.

About the Author:

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Get The Best Home Mortgage Loans

By John Bear

There are different options available if you plan to refinance your current mortgage. Now, why would homeowners want to refinance their mortgage? There are actually many reasons for that, and the most common are: to receive cash out at closing, eliminate private mortgage insurance, and obtain a fixed rate.

Refinancing a home loan involves getting a new mortgage and thus, you are required to present the mortgage company with various documentations. However, if you prefer privacy, there are also ways to obtain a loan with minimal documents.

The best way to have some privacy is getting a no doc refinance loan. However, not all lenders are the same as some are okay with granting a refinance with no documentations, there are also others that are not willing to take any chances. In getting a no doc loan, the process is quite easy; the homeowner will just have to give out their social security number and loan amount on the loan applications. Now, it is entirely up to the lender to give loan approval that is based on the credit scores. In simple terms, to have a no doc loan, your credit score should be very high.

So as not to be confused, low document home mortgage loans are different from the no document loans in several ways. First, you need to state your income and employment history in low document loans. You are also asked to submit recent paycheck stubs or income tax returns for the past two years. Second, low document loans are beneficial to contract and self-employed employees and to those who receive cash payments.

Obtaining a no document refinance loan is ideal for individuals who would want to maintain their privacy. Some people are hesitant to offer lenders detail information about their income, employment, and finances.

Traditionally, lenders do not just approve loans with little or no documentation but just by looking at a very good credit report, they reason that an applicant wouldn't just do anything bad to tarnish their perfect credit report. So they approve a no doc loan to this type of applicant.

Since low doc and no doc home mortgage loans undergo a faster process, the applicant has to be prepared to pay a higher interest rate on his loan. Of course, a higher rate would be fine as long as it offers the individual some privacy and speed.

However, if your primary reason for refinancing home mortgage loans is to obtain a lower interest rate on your mortgage, a no doc refinance may not be the best option. Before refinancing, do get a quote from a lender and compare the no document refinance rate with your current interest rate.

About the Author:

Student Debt Loan Consolidation, Mortgage Loans, Refinance Loans - Lowest Rates in Years. Go Here Now

Home Equity and the Reverse Mortgage

By Mortrev Vanrock

The reverse mortgage can be a fabulous tool to solve a financial issue and not be obligated monthly to repay the lender. The borrower simply needs to understand that it is a negative equity mortgage.

At the end of the mortgage is when the lender recoups the investment and makes a profit. Interest simply compounds on to the principal loaned to the borrower.

The scary part for the borrower is the interest accruing so much that it eats away at all of the equity in the home. This is a fair thing to be concerned about.

Many things are going on in this process, and borrowers should take heed of this. Some factors consume equity while others grow equity.

Certainly the accruing interest cuts into the borrowers equity. Conversely, real estate appreciation greatly slows this process.

In most cases normal real estate appreciation adds to the homes equity, even with the accrual of interest against the home from the reverse mortgage.

Most people qualify for a certain amount of money based upon the value of the home. Most dont take all of this money. Most let a good deal sit in a line of credit where it isnt accruing interest against the homes equity.

But lets assume the borrower uses all of it immediately. Lets say the house is worth $200,000 and they qualify for $130,000. And they take it all out right now.

The one hundred and thirty thousand dollars will immediately begin to build interest. In this example, you can see how that interest will compound rapidly, taking away from the equity.

With a fixed rate of 6.09% building interest against the equity, and 4% appreciation, it will take over twenty years for the loan to gather enough interest to consume the equity!

In the same example, lets say the borrower only used $100,000 immediately. In twenty years there would still be over $100,000 in equity. In the latter example the borrower actually had a net gain.

When looking at the downside of the reverse mortgage, it is prudent to consider how valuable and beneficial appreciation can be.

About the Author:

Thinking about a HECM or boning up on the California reverse mortgageget a good guide at former link or this link which leads to an excellent informational source for the California reverse mortgage.

The Upside Down Mortgage Exit Strategy: House Short Sale

By Charnell S. Bellison

If you are like the rest of us, your home has recently dropped in value by a whole lot. There comes a time when you have to ask yourself if it makes sense anymore to continue the monthly agony of pouring money, time and effort into a never ending black hole. It may be time for you to look at some of your exit options, short of foreclosure. Here's how I determined my position, and how I decided if I need a house short sale.

1) Interview Realtors: Find one that you can trust who either specializes in house short sales, or has done at least 30 of them. An added bonus would be a degree in finance, such as an MBA and a real estate brokers license. The license gives them addition legal responsibility to act in your best interest. It might be wise to consult a CPA and real estate attorney as well, but it will be your realtor that creates and finishes the deal. Please make sure you don't get swindled by one the companies that asks you to send them the money up front. A legitimate realtor will pay ALL the fees including marketing costs, and get reimbursed when the lender pays the commission.

2) Find the Present Market Value: You need this to figure out just how upside down you are. Do not spend the money on an official appraisal. They cost $300-$500 and they won't be any good in a few months anyway! Your realtor will give you a good idea of the what the home is worth, and how much it can bring in as a distressed home. The more upside down you are, the better your chances of a successful house short sale. So forget about the nice drapes and all the sweat you put into your lawn. Just let the straight numbers do the talking.

3) Now Do Some Figuring: Here's where I figured out if I needed a short sale. You can follow along with your own numbers: Take your total loan amount, and subtract the present value of the house. Not what it's worth, but how much you can get for it TODAY. This is how much your "Upside Down" in the loan. Then, figure your annual expenses including a year's worth of payments, taxes, insurance, maintenance, and repairs. This is your "Yearly Cost" to keep the house. Now, take the amount your upside down and multiply it by 8%. We will assume the best case scenario. In a FAST appreciating market, this is how much your house value would go up each year, if the housing bubble was over today. (yeah right!) We'll call this number: "Appreciation per Year." Finally, divide the Upside Down amount, by Appreciation per Year. This is how many years it will take just to break even with the amount you owe on your loan. No profit, no realized appreciation. Now look at your Yearly Cost to Keep the House. Is it worth it to keep it for that many years?

Here's an example: A house was purchased with a $800,000 loan. In one year it has depreciated drastically and will sell for only $600,000. (these are real California scenarios!). Should the owner short sell the house?

Upside Down: $800,000 - $600,000 = $200,000 Annual Costs: Includes all yearly expenses = $60,000 Appreciation: Assuming a booming market = $200,000 x .08 = $16,000

Verdict: It will take 12.5 years of appreciation at 8% per year, just to break even with the original value of the property, and to get there, it will cost $60,00 per year! In addition, after 12.5 years of suffering, full ownership of the house is still far away and over $750,000 will have been paid in mortgage payments and expenses.

You don't have to guess what I decided to do. My numbers we're very similar to these. I know I'll take a hit on my credit, but for me, 2 -3 years to rebuild my credit is a lot better than 12.5 years of suffering. I'm going to call it quits and live to fight another day.

About the Author:

If you liked this article, then please come visit my blog at HouseShortSale.org. It's free and there's no sign up, just my story about how I dealt with my house short sale!

Negative Credit History Timeline

By William Blake

If you have seen (or heard) the recent commercials about getting a free credit report, then you know it's important to have good credit and to monitor your credit line. This is the only permanent record that you need ever be worried about. Having a negative credit report can affect your borrowing ability, your interest rates, and even your employment.

The good news is that if you have negative credit, all is not lost. This record is not really permanent. Most of the bad information will be removed from your credit history after seven years from the last infractions.

Even though financial mistakes that damage your credit report can be fixed, it will require seven years. In order to avoid waiting seven years to have better credit, you need to take good care of your credit history now.

Your credit history will be negatively impacted by late payments on rotating credit and loans. For that reason, paying such debts in a timely manner is very important. Having proof that you have been able to pay bills on time for one entire year is important when you meet a lender to borrow money. Some people are not organized and thus have a hard time making on time payments. If this is the case for you, be sure to pay off your bills as soon as possible.

There are times when you get behind on the payments and work out a payoff arrangement with credit card companies or store cards. This is a smart thing for you to do in the long run (but only if you cut up the cards and don't get any more credit lines), but it could be a negative strain on your credit history in the short run. Settlements of any kind will put a mark on your credit history.

Filing for bankruptcy causes serious negative repercussions to your credit history. Doing so will remain a part of your credit history for more than the standard seven years.

When lenders are trying to decide whether or not you can be trusted to pay back the money you wish to borrow, they will judge you by your credit history. Bankruptcies filed under chapter 13 stay on your credit history for seven years, much like other negative information. If you file for chapter 7 bankruptcy and thus do not have to pay back debts you have racked up, that information will remain a part of your credit history for ten years.

Loans are often offered to people with a negative credit history at interest rates three or four percent higher than normal. The financial decisions you make now can potentially affect you for the next seven or even ten years, so make sure that you take care when it comes to your finances.

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Thinking of trying to lower your payments or the balance owing by negotiating credit card debt? Be sure to visit the Debtopedia website to get some helpful tips first.