November 30, 2010
November 27, 2010
If I am 4 months behind in my mortgage, will my FHA loan be of help and paying the unpaid payments?
Mary asked:
I have an FHA loan on a mortgage that is 33 years old. During that time, I have missed 4 payments. Will FHA help me to bring the loan payments up to date?
Excuse my math! The loan is 27 years old rather than 33. Thanks to everyone for your advice. Most of the answers have been very helpful.
nope, not 27, the winning number is 23.
Sorry about that, I am just nervous about this whole situation.
Kathy
I have an FHA loan on a mortgage that is 33 years old. During that time, I have missed 4 payments. Will FHA help me to bring the loan payments up to date?
Excuse my math! The loan is 27 years old rather than 33. Thanks to everyone for your advice. Most of the answers have been very helpful.
nope, not 27, the winning number is 23.
Sorry about that, I am just nervous about this whole situation.
Kathy
November 26, 2010
Are loan payments by an LLC considered a business expense?
mainlandd asked:
My son is considering forming an LLC to purchase a percentage of the company he currently works for. He will own a portion of the company and receive profits commensuate with his ownership. The make this purchase possible, I am considering making a large loan to his LLC. If the LLC elects to be taxed as a corporation, are the payments of interest and principal of the loan expensed against the ‘profits’ he will receive from his partial ownership. Can remaining profit or a portion of the profit be retained by the LLC and taxed at a lower corporate rate? We’re trying to structure this purchase in a way to minimize income tax due while the capitalization loan is being paid off. Any help will be greatly appreciated.
Gregory
My son is considering forming an LLC to purchase a percentage of the company he currently works for. He will own a portion of the company and receive profits commensuate with his ownership. The make this purchase possible, I am considering making a large loan to his LLC. If the LLC elects to be taxed as a corporation, are the payments of interest and principal of the loan expensed against the ‘profits’ he will receive from his partial ownership. Can remaining profit or a portion of the profit be retained by the LLC and taxed at a lower corporate rate? We’re trying to structure this purchase in a way to minimize income tax due while the capitalization loan is being paid off. Any help will be greatly appreciated.
Gregory
November 25, 2010
Can You Afford To Hire A Plastic Surgeon?
Andrew Stratton asked:
You can apply for a personal loan with a bank, credit union, or financial institution. If you shop around, you should be able to find a low interest personal loan. You can finance your plastic surgery procedure for two to five years, and you will have to decide which term right for you. If you get a short term loan, you will pay less in interest and your loan payments will be higher. If you have a long term loan, you will pay more in interest over the life of the loan and your payments will be lower.
You can also apply for financing with plastic surgery financing companies. There are several financing companies out there, so you will have to shop around. If you want to save money, you should find a financing company that has decent rates. You can apply for financing with a plastic surgeon or online.
Some plastic surgeons offer payment plans and layaway plans. Some doctors require that patients make payments and get the surgery done when it is paid in full. Some doctors will allow you to make a down payment or pay half of the procedure, get the surgery done, and pay off the rest of the balance slowly. You will have to consult with plastic surgeons to find out if they offer in-house financing and layaway plans.
You can put the procedure on your credit card, but I do not recommend it because creditors charge a lot in interest. However, if you have a great job and you know you will be able to pay the credit card balance off quickly, than I don’t see a problem with it. When you find a good plastic surgeon, find out if he accepts credit cards.
If you want to save money in interest and fees, you should definitely start saving for the procedure. You should open a savings or checking account and put some money away each month. Cut back on your expenses and save as much as you can. In addition, keep in mind that you can put a large down payment on the procedure and finance the rest. If you finance half of the bill, you will pay the balance off quickly and save a lot of money in interest and fees. After you save some money, you should meet with a qualified plastic surgeon in person to discuss your concerns.
If you apply for a loan or financing with most companies, you will need decent credit in order to qualify. If your credit is terrible, you may want to consider applying with a cosigner. Just make sure you can afford the monthly payments because you don’t want to ruin someone else’s credit. With that said, you should make an appointment to meet with a board-certified plastic surgeon. A plastic surgeon will answer your questions and help you decide if plastic surgery is right for you.
Lori
You can apply for a personal loan with a bank, credit union, or financial institution. If you shop around, you should be able to find a low interest personal loan. You can finance your plastic surgery procedure for two to five years, and you will have to decide which term right for you. If you get a short term loan, you will pay less in interest and your loan payments will be higher. If you have a long term loan, you will pay more in interest over the life of the loan and your payments will be lower.
You can also apply for financing with plastic surgery financing companies. There are several financing companies out there, so you will have to shop around. If you want to save money, you should find a financing company that has decent rates. You can apply for financing with a plastic surgeon or online.
Some plastic surgeons offer payment plans and layaway plans. Some doctors require that patients make payments and get the surgery done when it is paid in full. Some doctors will allow you to make a down payment or pay half of the procedure, get the surgery done, and pay off the rest of the balance slowly. You will have to consult with plastic surgeons to find out if they offer in-house financing and layaway plans.
You can put the procedure on your credit card, but I do not recommend it because creditors charge a lot in interest. However, if you have a great job and you know you will be able to pay the credit card balance off quickly, than I don’t see a problem with it. When you find a good plastic surgeon, find out if he accepts credit cards.
If you want to save money in interest and fees, you should definitely start saving for the procedure. You should open a savings or checking account and put some money away each month. Cut back on your expenses and save as much as you can. In addition, keep in mind that you can put a large down payment on the procedure and finance the rest. If you finance half of the bill, you will pay the balance off quickly and save a lot of money in interest and fees. After you save some money, you should meet with a qualified plastic surgeon in person to discuss your concerns.
If you apply for a loan or financing with most companies, you will need decent credit in order to qualify. If your credit is terrible, you may want to consider applying with a cosigner. Just make sure you can afford the monthly payments because you don’t want to ruin someone else’s credit. With that said, you should make an appointment to meet with a board-certified plastic surgeon. A plastic surgeon will answer your questions and help you decide if plastic surgery is right for you.
Lori
November 24, 2010
The Cost of Missed Loan Payments
Paul Hockney asked:
Have you recently missed a loan or credit card payment?
A lot of us have been late with such a payment simply because we’ve overlooked it. Although it may not do you much harm just yet it may show up on your Credit Report but lenders will see that it is just a one off.
But be warned that several missed payments will start to show multiple entries on your credit record and this is where lenders will be become very wary. As a result you may well find it increasingly difficult to get a loan or a new credit card as lenders deem you a higher risk. Another side affect is that some lenders may be willing to offer you a loan or credit card but at much higher interest rates.
Credit History
If you miss payments then this can stay on your credit report for up to 3 years. However if you are unfortunate enough to have a County Court Judgment (CCJ), or worse still, have become bankrupt then this still stay on your credit report for up to 6 years.
Plus if you are deemed to be what’s known as a reckless bankrupt then expect this to remain on file for up to 15 years.
Having a CCJ will cost you dearly in the long run as a lot of the high street lenders will not be willing to provide you with a loan. However, there are specialist lenders or sub-prime lenders who are willing to provide a loan so not all is lost. Expect interest rates from these lenders to be at least 2-3% higher than normal loan rates.
As you can see having a good credit history is key to getting a loan at the normal market rates. Also note that having a bad credit history may also affect you getting a job. This is especially relevant to the financial sector where employers expect and demand that you have a clean credit history.
Missing mortgage payments can also be seen the lender as a red flag on your account. Especially if you normally pay by direct debit and if you miss a few payments the lender may feel you have taken on too much of a mortgage. And as your mortgage tends to be one of your biggest financial commitments it is very important that you keep up with repayments, and on time too.
If you have a partner and a joint bank account then this can really affect your credit history in the event that your partner has a poor credit history. It can mean that you get turned down for credit so it’s vitally important that you are aware of your partners credit history. And always make sure to shut down any joint-accounts with ex-partners just in case their credit history gets worse after you split.
No excuse for missing payments
There really is no excuse for missing any payments given the ease in which we can access our bank accounts. Being able to check online in seconds and now some banks will send you a text message to let you know when your current account drops to a certain level.
Of course the most effective way to ensure you don’t miss any payments is to setup direct debits. Whether it’s for a loan or credit card the options is always there from the lender so no more forgetting to send the cheque for that months repayment.
And of course remember there is a double-sting to a late payment. Not only can it get onto your credit record but you can also get a late payment charge.
What to do if you don’t have the funds to pay
In this situation you should not bury your head in the sand. Contact your lender straight away and explain the situation. It may well that that your life situation has affected your finances e.g. divorce, redundancy or illness. Most lenders will be happy to accept reduced payments or even reschedule payments to help with your situation.
However if you find that you need additional money and are considering a loan then make sure not to apply for too many loans at once. As if you get refused for a loan then this can appear on your credit report and also for subsequent loan application rejections. Multiple rejections flag to the lender that you may be desperate for finance and as such are a very high credit risk.
The importance of your credit report
It’s vitally important that you keep a close eye on your credit report to see where you stand in the eye of potential lenders. You can easily get a copy for a small fee from agencies like Equifax, Experian and Call Credit.
If you find any entries on your report that are not good then you need to ensure you do enough to clear that entry if possible. It may well be that it’s not a major problem but at least it could show up any unforeseen or un-expected stains which you were not aware of previously.
Conclusion
Missing payments either due to lack of funds or accidentally can cost you dearly in the long run. Take more time with your finances each month and keep all that well earned money in your pocket rather than that of your lender.
Eric
Have you recently missed a loan or credit card payment?
A lot of us have been late with such a payment simply because we’ve overlooked it. Although it may not do you much harm just yet it may show up on your Credit Report but lenders will see that it is just a one off.
But be warned that several missed payments will start to show multiple entries on your credit record and this is where lenders will be become very wary. As a result you may well find it increasingly difficult to get a loan or a new credit card as lenders deem you a higher risk. Another side affect is that some lenders may be willing to offer you a loan or credit card but at much higher interest rates.
Credit History
If you miss payments then this can stay on your credit report for up to 3 years. However if you are unfortunate enough to have a County Court Judgment (CCJ), or worse still, have become bankrupt then this still stay on your credit report for up to 6 years.
Plus if you are deemed to be what’s known as a reckless bankrupt then expect this to remain on file for up to 15 years.
Having a CCJ will cost you dearly in the long run as a lot of the high street lenders will not be willing to provide you with a loan. However, there are specialist lenders or sub-prime lenders who are willing to provide a loan so not all is lost. Expect interest rates from these lenders to be at least 2-3% higher than normal loan rates.
As you can see having a good credit history is key to getting a loan at the normal market rates. Also note that having a bad credit history may also affect you getting a job. This is especially relevant to the financial sector where employers expect and demand that you have a clean credit history.
Missing mortgage payments can also be seen the lender as a red flag on your account. Especially if you normally pay by direct debit and if you miss a few payments the lender may feel you have taken on too much of a mortgage. And as your mortgage tends to be one of your biggest financial commitments it is very important that you keep up with repayments, and on time too.
If you have a partner and a joint bank account then this can really affect your credit history in the event that your partner has a poor credit history. It can mean that you get turned down for credit so it’s vitally important that you are aware of your partners credit history. And always make sure to shut down any joint-accounts with ex-partners just in case their credit history gets worse after you split.
No excuse for missing payments
There really is no excuse for missing any payments given the ease in which we can access our bank accounts. Being able to check online in seconds and now some banks will send you a text message to let you know when your current account drops to a certain level.
Of course the most effective way to ensure you don’t miss any payments is to setup direct debits. Whether it’s for a loan or credit card the options is always there from the lender so no more forgetting to send the cheque for that months repayment.
And of course remember there is a double-sting to a late payment. Not only can it get onto your credit record but you can also get a late payment charge.
What to do if you don’t have the funds to pay
In this situation you should not bury your head in the sand. Contact your lender straight away and explain the situation. It may well that that your life situation has affected your finances e.g. divorce, redundancy or illness. Most lenders will be happy to accept reduced payments or even reschedule payments to help with your situation.
However if you find that you need additional money and are considering a loan then make sure not to apply for too many loans at once. As if you get refused for a loan then this can appear on your credit report and also for subsequent loan application rejections. Multiple rejections flag to the lender that you may be desperate for finance and as such are a very high credit risk.
The importance of your credit report
It’s vitally important that you keep a close eye on your credit report to see where you stand in the eye of potential lenders. You can easily get a copy for a small fee from agencies like Equifax, Experian and Call Credit.
If you find any entries on your report that are not good then you need to ensure you do enough to clear that entry if possible. It may well be that it’s not a major problem but at least it could show up any unforeseen or un-expected stains which you were not aware of previously.
Conclusion
Missing payments either due to lack of funds or accidentally can cost you dearly in the long run. Take more time with your finances each month and keep all that well earned money in your pocket rather than that of your lender.
Eric