Financial Services

All you need to know about Hard Money Loans

Financial Services

A hard money loan is an equity based loan that is used to finance the acquisition or development of properties. Usually, the target markets for a Los Angeles hard money loan are private realtors, corporations and sub-prime money borrowers who cannot meet requirements set by conventional financial institutions. Normally, no stringent guidelines that clients need to meet in order to qualify for loans. This is a fast solution to getting fast and creative financing.

Hard money loans process

To begin with, lending institutions require individuals to meet the tough guidelines in order to get financing. However, this is vital in order to ensure that the debtor does not default in payment. Hard money loans do not need to review most of the steps adopted by financial institutions such as reviewing the creditors past history on credit.

In addition to this, Los Angeles hard money loan borrowers are only required to own a minimum of thirty percent ownership of their real estate. Borrowers who meet this requirement are better placed. For those below this threshold, hard money lending firms are obliged to cross collateralize funds to other properties that borrowers have in any part of the country.

Normally, it only takes seven to ten days to process the hard money loan. This is because there is need to inquire is the property owned by the borrower has any liens and judgments attached to it. It also gives the firm time to process loans. Therefore, borrowers are advised to provide these conditions promptly in order to help in expediting the loan process.

Importance of refinancing your mortgage using hard money loans

First, refinancing the loan using hard money loans helps in budgeting one’s future finances. This is because most mortgages have high interest rates hence the need to reduce the loan amount significantly. This will help in relieving one the pressure that comes with paying mortgages.

Secondly, refinancing a mortgage using hard money ensures that one cuts down closing cost significantly. Typically, reducing this interest and closing cost is vital since a hard money loan has a longer period of repayment making it easier for one to plan their future finances. This gives borrowers a chance to view the impact of such loans to the future of their finances.

Thirdly, refinancing a mortgage using a hard money loan enables one get to a breakeven point in which they bought the home in the first place. It is unlikely for homeowners to reach breakeven point if the sell the home in order to recover their closing costs.

Benefits of hard money loans to new borrowers

To start with, most individuals cannot meet the tough conditions set by other conventional lenders. For hard money loan borrowers, no credit history is required. Only the proportion of ownership of estate one has is required.

On top of this, Los Angeles hard money loans have a shorter period of closing this loan. It is only under certain conditions, for example if the property has liens; it takes up to two weeks to get the financing. This helps one acquire property or make developments on them promptly.

Lastly, for those with distressed property, borrowers are required to submit such property to other investors. This is done on a pre-listing basis. This assists those facing bankruptcy charges.

Insolvency agreements are much easier to monitor

Financial Services

Insolvency and bankruptcy are the two remedies available for those who are bogged by debts. According to Fiona Cope, Chief Officer, Citizens Advice Bureau, North Somerset, since the recent past, there has been a reasonable increase in the number of people applying for insolvency. In fact, Fiona Cope points out that during 2014, in North Somerset alone, about 479 people applied for insolvency. This trend is noticed in various other countries also such as Australia, India and various other European countries. Such people prefer to file personal insolvency agreement Australia banks help to undertake so that they can they can buy peace of mind.

personal insolvency agreement australia

Insolvency a temporary phase:

As you know, insolvency is a temporary phase of your inability to repay the debts. For example, you are unable to pay the outstanding loans because you have not got the money that is due to you. In such cases, you would enter into personal insolvency agreement Australia banks undertake, and you would be allowed that extra time to repay the amount.  You can enter into an agreement provided your debts are over and above certain limits as fixed by the law of the land.

Bankruptcy:

Interestingly, the figure quoted by Fiona Cope only represents people who have applied for insolvency. You may be surprised that in addition to those who have applied for insolvency, there are many more people who are left with no assets. Such people would not be eligible for a personal insolvency agreements. In the alternative, such people may have to apply for bankruptcy. Bankruptcy is the last remedy available for those who are debt ridden. By this process, they may get rid of most of their debts.

Involves paperwork:

Insolvency can affect any individual, whether rich or poor as well as companies and corporate. If you are affected by insolvency, then you may avail the services of any registered or an official trustee. They will guide you in the entire process of insolvency proceedings. As you know, the process of entering into personal insolvency agreement Australia trustees help with is quite complicated, and it involves a reasonable amount of paperwork.  But, the trustees will ensure that the proceedings are hassle free and also completed in the earliest possible time. However, if you are a company or corporate, then you will be guided by the Corporations Act 2001 of Australia. Check them out at https://www.debtmediators.com.au/personal-debt-solutions/personal-insolvency-agreements/

Advantages to debtors:

If you are an individual and when you apply for insolvency, the trustees normally suggest you to enter into the agreement under Part X of Bankruptcy Act. According to the registered and official trustees, personal insolvency agreement part x offers various benefits to the person applying for insolvency. In the first place, by applying for insolvency under Part X, you can avoid going bankrupt. Further, until the disposal of your application, the creditors are prevented from taking any other steps to recover the loan. It also allows you to clear the debts in an ordinary manner.

Advantages to the creditors:

The personal insolvency agreement process is also found to be beneficial to the creditors.  The creditor will get back the amount due much sooner than if the debtor is declared bankrupt. Further, the creditor can get a higher amount than when the person was declared bankrupt. The cost administering the trustee is much lower as compared to the proceedings for administering bankruptcy.

4 Steps to help you Declare for Bankruptcy in Australia

4 Steps to help you Declare for Bankruptcy in Australia

Featured, Financial Services

It is not easy to declare yourself for bankruptcy and for that matter, it is not something that needs to be rushed. Although declaring yourself bankrupt could get rid of all your unsecured debt, there are certain consequences you need to know before you make any hasty decisions. Before you file for bankruptcy in Australia, it is crucial to weigh your options carefully and seek expert advice.

Read on the four paramount steps you need to take before you file for bankruptcy in Australia.

Carefully assess your options

Before you file for bankruptcy in Australia, you need to consider all the options in every angle. You should not take your decisions for granted and assume filing for bankruptcy is a simple matter. As a matter of fact, filing for bankruptcy should be your last resort. The first thing to do is to talk with your creditors on how you can make payments or formally via a personal insolvency agreement or debt agreement. If truly you can’t manage to pay your debt and you don’t own any assets which will be disposed in bankruptcy, then the best option for you is voluntary bankruptcy.

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Are you eligible?

It is also important to find out the criteria for bankruptcy. You first of all need to be insolvent and you must be living in Australia when filing for bankruptcy. The AFSA – a government agency, will first assess your applications to determine if you’re insolvent. The first thing that the agency will do is to check if you are in a position to clear your debts in full within the stipulated time. Another thing, the agency will review your address to confirm if it is legit. For your application to be approved, your address should be from Australia. If you are an Australian national but you are living abroad, you will have to return to Australia to apply for bankruptcy.

Get expert advice

To get bankruptcy help, you need to seek for advice from a registered bankruptcy trustee. A bankruptcy expert knows the dos and don’ts of filing for bankruptcy in Australia. As mentioned earlier, filing for bankruptcy is a complex process and hence you need to talk to a qualified and experienced expert. When talking to the bankruptcy  expert trusted, ensure that you disclose your situation fully. If you don’t disclose all the relevant information or if you hide your assets, your bankruptcy may be prolonged up to eight years instead of the usual 3 years. If you give full details about your finances and assets, an expert will able to find the best solution for your situation.Read More at Debt Mediators

Complete and lodge your bankruptcy forms

Lastly, make sure that you complete and lodge your bankruptcy forms with the AFSA. To file for bankruptcy in Australia, you need to fill the statement of affairs, debtor’s petition and prescribed details. Take as much time as you need, to fill out these forms to ensure everything is correct.

Last but not least, if you are looking for bankruptcy help Australia market has for you, you can get help from Debt Mediators Australia. Debt Mediators Australia will help you file for bankruptcy in Australia and ensure your debts are cancelled. For more information on how to get help, go to https://www.debtmediators.com.au/bankruptcy/