In 2012, the U.S. saw 2,300,000 foreclosures and 700,000 home repossessions. Nobody wants to lose a home to foreclosure, yet it’s become a reality for many Americans. Surely, the question, “How can I avoid foreclosure?” is coursing through the brains of thousands of Americans even as you’re reading this article. Whether they’re struggling to make mortgage payments or looking to build equity by refinancing at a lower rate, there are many options to avoid foreclosure. Freddie Mac offers five ways to avoid foreclosure that homeowners can pursue with their bank lenders: refinance, forbearance, reinstatement, repayment planning, and modifications.
Refinance to Avoid Foreclosure
Refinancing mortgage tips will reveal that there are two major options. If you have an adjustable-rate mor (more…)
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After rising every year from 2004 to 2011 – from just over 1.2 million to nearly four million – the number of foreclosures in the United States in 2012 dropped to 2.3 million. While there are lots of factors that come into play, including the fact that it has become a bit more difficult to get a bank loan and there is a lot of help to avoid foreclosure available, the number of people who lose their home is still quite high. One concern that banks and lenders alike might have is stop foreclosure fraud that could be problematic in a number of different ways.
When it comes to trying to stop foreclosure fraud could be a serious problem for homeowners because, quite simply, it makes it difficult for them to make the proper payments. In the United States, there are more than 11.5 million fraud vict (more…)
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About 1 in every 72, or 1,800,000 U.S. homes, filed for foreclosure in 2012. Foreclosure happens when a borrower, the home owner, is unable to make good on their payments, and the creditor has to recover the balance of the loan by repossessing the house. Have you heard about alternative options, if you find yourself in this position? There are several ways you can get help to avoid foreclosure. Here are the facts of the matter.
1. Can Bankruptcy Stop Foreclosure?
Many people are probably holding their breath for the answer to this question. The answer is yes, in many cases, it can. Bankruptcy, of course, is not an option to be taken lightly. It will be on your credit history for many years, and requires court appointments as well as a repayment plan. If you file for Chapter 7 or 13 bank (more…)
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Owning a home is always expensive, no matter where someone lives. In fact, the average cost of a home is more than $150,000, and, in order to pay it off, homeowners will have to make costly monthly mortgage payments. Fortunately, there are certain mortgage insurance premium deductions and dedications for home insurance that people can use in order to offset the cost of owning a home. In fact, there are lots of deductions that people can use to cut down on their cost of living.
1. Moving Expenses
Many individuals will want to buy a new house because they just landed a great job in a new city. If they move more than 50 miles, they might be able to deduct some of those moving expenses. The IRS website lists eligible expenses in an easy to read .pdf for anybody who thinks they might be (more…)
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As you might be aware, mortgage insurance is insurance used to compensate investors or lenders in the event of a default on mortgage loans. This insurance is usually used in lieu of a 20 percent standard down payment, since some people, especially first time home buyers, cannot afford that.
These insurance policies came under increased scrutiny after the subprime US mortgage crisis. It is possible to get mortgage insurance premium deductions, but not everyone is eligible. Here is how to determine if your insurance can change how much you pay in taxes.
1. Is your adjusted gross income less than 100 thousand dollars? You are applicable for putting this as a Schedule A itemized deduction. However, this is only for primary residences, not second homes. Higher incomes do not apply for this or ha (more…)
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Buying a home can be pricey enough without having to worry about the cost of mortgage insurance premiums. With the cost of a down payment, closing costs, and that monthly mortgage payment, buying a home can be incredibly taxing on your wallet. There are some dedications for home insurance premiums that could help you out with mortgage insurance costs.
If you search around there are things you can do to get dedications for mortgage insurance premiums. If you applied for your mortgage loan later than 2007, have a yearly income of less than 109,000 dollars, and the residence is a primary or secondary home that is not rented, you may qualify.
Dedications for mortgage insurance premiums are something most of us don’t think about on the daily. However they could cut costs quite a bit and save you some (more…)
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A mortgage insurance premium can range from anywhere between 0.3 percent to 1.15 percent of the loan amount per year. Mortgage is required by lenders when the down payment you make on your new home is less than 20 percent of the sales price, and acts as a safety net for the lender should you default on payments. Buying a home comes with plenty of expenses, but there are certain ways to receive deductions for home insurance which will help cushion the financial blow.
Mortgage insurance premium deductions are in effect as a part of the Tax Relief and Health Care Act of 2006, and the mortgage insurance premium became tax deductible in 2007. Since the recovery of the housing market was slower than anticipated by lawmakers, polices for mortgage insurance deduction were extended through 2013, and could be further extended by congress (should they decide a prolonging of the tax break is warranted).
There are, however, complications to keep in mind when claiming a tax deduction for your mortgage insurance premium. The first thing to note before looking into whether or not you are eligible for a mortgage insurance deduction is the date on which you took out your mortgage. If that date happens to be prior to the first of January, 2007, you will not be able to receive a tax deduction on your mortgage insurance premium at the end of the fiscal year.
Another restriction of premium deduction pertains to refinancing your home. Be cautious when refinancing. Mortgage insurance premium deductions can only be applied to refinancing costs up to the amount of the original loan amount, not any extra money that a second loan may accrue. The government has committed itself to certain dedications for home insurance payments, but you have to know exactly what they are in order to benefit from them!
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A mortgage insurance deduction is something that you should consider carefully so that you can get the most competitive possible rate when you are paying taxes. Your mortgage insurance premium deductions will vary depending on how much you spend on your home as well as what sort of home you have and what other charges you face on your tax bill. It is important that you look for information about deductions or dedications for home insurance so that you will be able to find out about how you can take advantage of your mortgage insurance deduction during tax season when you need to save as much money as possible.
When it comes to your mortgage insurance deduction and premium payments, it is best to consult with a specialist so that you can receive guidance from a tax professional that is properly versed in what is needed to help clients with their mortgage premiums. You will also be able to learn about the mortgage insurance premium itself and why you have to pay it under the guidelines of the FHA. In some cases, certain homeowners may be eligible to cancel their mortgage insurance premium, which can save them money. Insurance on loans from the FHA are often more costly than other types of loans that come from the USDA or the military. A tax professional will talk to you about your mortgage insurance deduction and premium and help you get a better idea of how to handle this bill so that you are well aware of how you can reduce your monthly housing payment, if possible.
Once you find a mortgage professional to rely on, you should explain to them the situation that you are facing and get their advice on how to deal with this issue. Talk to them about your finances and see what steps they may be able to take to reduce or even cancel your mortgage insurance premium. When dealing with mortgages and insurance, paperwork is very important. You should bring your mortgage professional all of the paperwork that you have regarding your home mortgage and mortgage insurance policy so that you can be certain that they have what they need to successfully understand your mortgage insurance deduction situation. Getting help with a mortgage may take you some time, but the time that you spend will be worth it in the end once you are able to save money on your housing payments so that you can conserve as much of your budget as possible.
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A mortgage insurance premium is a tough sell for people today. After all, they are already paying top dollar to live in their homes by paying their mortgages, and now they have premiums on top of what they owe. But with a helpful and trusted mortgage lending professional, they can ease their concerns, their fears and their worries. A mortgage professional knows everything there is to know about earning a mortgage insurance premium deduction, about handling mortgage insurance premium deductions and about handling many other facets of home insurance too.
Earning dedications for mortgage insurance premium costs can greatly benefit people who are very concerned about the money they are paying to their lenders to begin with. In earning these deductions and dedications for home insurance and for the costs of their monthly mortgages, they can earn a mortgage insurance deduction to cover their expenses and to get their monthly costs lowered ideally as well. This facet is of very significant importance even to today’s homeowners who worry less about where their next mortgage payments will come from. Everyone today has concerns about money, and knowing how to obtain deductions and dedications for home insurance and for mortgage payments can greatly reduce people’s worries and can lead them down stronger paths toward lower mortgage payments or more manageable ones at the very least.
These deductions and dedications for home insurance premiums and for mortgage payments as well basically can be evaluated by trusted mortgage and insurance professionals who have lots of industry experience and who can identify which programs are best suited for which homeowners. Lots of homeowners like to try their hand at this on their own, and the Internet provides a valuable resource in their journeys toward finding the answers they seek. But for most, letting this fall into the hands of valued and trusted members of the mortgage and finance community is a no brainer. They need to know that their insurance and homeowners’ needs are met and that they are not missing payments or falling behind in any way, so they obtain help with their dedications for home insurance.
Thus, when these dedications for home insurance are evaluated, these mortgage and lending professionals can help assuage concerns and right the ships for these clients. They charge for their services, of course, but they also create more positive change and experiences. This, above all, helps homeowners confused about their payments and about their insurance needs as well.
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When tax season arrives, it helps to have a list of all of the deductions which are available for your tax bill. A mortgage insurance premium deduction could actually help you to save hundreds of dollars at the end of the year when filed properly, but the best way to find out whether or not you are eligible for dedications for home insurance is to read a guide or speak to a professional about the subject. When it comes to finding out more about mortgage insurance premium deduction eligibility, getting the word of a professional can help you to avoid questionable tax situations or audits. You want to save money, but you also want to make sure that you are within the law when you claim a mortgage insurance premium deduction on your tax return at the end of the year.
Some mortgage insurance premium deduction eligibility will be determined based on the type of mortgage that you have taken out, and the amount that you have paid up front. Your deduction can also differ from state to state. Both federal and state mortgage insurance premium deductions could help you to save a great deal of money, especially if you have invested heavily into ensuring that you have the proper rate at the beginning of your loan term. Other factors which can effect your eligibility for dedications for mortgage insurance premiums can include the year in which your mortgage was filed, how timely your payments have been, and whether or not you have done any refinancing. Again, speaking with a professional about your mortgage insurance premium deduction could help you to organize the proper paperwork and make a more accurate estimate of what that deduction can or should be.
Mortgage insurance deduction worksheets are also available through tax refund agencies, or online. You can use a calculator program to work out what your mortgage insurance premium deduction should be at the end of the year, and add it in with other deductions that you may be eligible for in relation to improvements that you have done to your home. The more that you know about mortgage insurance premium based deductions, the easier it could be to afford owning a home and maintaining it to retain or increase its value. Speak with a tax specialist about your mortgage insurance premium deduction possibilities to get more personalized information.
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