In the beginning

“The Sun Also Rises” a famous quote, but for the majority of Americans who bear the pain of Bad Credit, it is nearly impossible to imagine that the “American Dream” of home ownership is actually possible for them. I know that pain well, I’ve “been there and done that…” a few times in my life. I would like to share a few thoughts on the subject based upon my Personal Experience with credit problems, and my many years of Professional Experience helping clients overcome their bad credit situations and achieve the “American Dream” of owning their own home. In fact, there is a special process that I have developed over the years, that guides people through not only buying a home despite having bad credit, but a step by step method of overcoming the entire trauma surrounding credit problems. This special process leads one through how to buy a home, overhaul (repair and restore) your credit, and return, to financial health!

A Journey of a Thousand Miles Begins with a First Step. Therefore, First, and Foremost, let me declare that Bad Credit is NOT a Terminal Illness! If I have learned anything in life, it is the fact that This Is America and You Can Start Over Not Matter What! The miracle of this country is that one can make a committed decision and by following a written plan, overcome virtually any setback or misfortune! This especially applies to those with bad credit, bruised credit, no credit, or miscellaneous credit problems in general. Bad Credit Mortgages are obtainable… so let’s take the first step.

“You Must Be Born Again!” What does this famous Bible quote have do with me? Well, a lot, actually Starting over again, rebuilding, renovating, overhauling anything is indeed the purest form of “rebirth.” Thus it is with Bad Credit. The Good News is that it is actually possible! Just think of a few famous and successful Americans have you ever thought of the behind the scenes details of their life? Has it occurred to you that their path to success wasn’t “all gain and no pain?” Take, for instance, Fred Smith, President and Founder of FedEx. Did you know that he was nearly bankrupt and was considering suicide, and that FedEx nearly never “Got Off The Ground?”

Can you imagine what his credit report looked like? How about Colonel Harlan Sanders, founder of KFC? Did you know that he was in his 70’s and chose to reinvent his financial status when he started KFC. Ray Kroc, founder of McDonalds was middle aged milkshake machine salesman, and had a few financial problems of his own when he discovered a small hamburger stand in California, and had an idea and the determination to start over. Rich DeVos and Jay Van Andel, founders of the Corporate Giant, Amway, had begun with several failed businesses. If you only knew how many people have suffered the same type of setbacks as you and managed to overcome, you would and should be greatly encouraged! Approximately 33% of Americans have a Credit Problem, so cheer up, you are not alone!

Join The Club Since we all have heard that “membership has its privileges,” well, I guess you’ll need the secret passwords then. They are; Income, Equity, and History. These are the four most important “passwords” needed to join the home ownership club. We will explore these in more detail, even revealing the most important password of all, in my next article in the “Life After Debt” series, Buying a Home With Bad Credit — The Secret Passwords. Stay Tuned for more

About the Author:
Ronald Farrell Black is President of Independence Mortgage Capital, and an Expert in working with Home-Buyers and Home Owners with Bad Credit and other special issues. His mission is to help folks through the trauma brought on by Financial Setbacks, Bad Credit, Bankruptcy, etc., and to provide resources for Home Mortgage Financing, Debt Management and Debt Relief. Helping others to overcome financial problems and to restore and rebuild their credit. For more information on Bad Credit Mortgage Loans, and “Life after Debt” visit his website: http://www.debtconsolidationstore.net

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Debt Consolidation for People with Bad Credit
Overwhelmed by credit card debt? If so, a debt consolidation loan may be answer. A debt consolidation loan does “not” hurt your credit score. In fact, it can actually help your overall credit score.
Debt Consolidation for People with Bad Credit

A debt consolidation loan affords you the opportunity to restructure your debt. Thus, saving thousands of dollars while you are gaining control of your debt. A nice feature is you only have to make “one” payment a month.

What is Debt Consolidation?
Debt consolidation is the process by which your current debt is negotiated with all of your creditors to obtain the lowest monthly financial obligation needed to satisfy all of your current accounts.

With a debt consolidation loan, you simply make one “lump sum” monthly payment. This payment is then forwarded to all of your creditors (often at a greatly reduced rate, sometimes as high as 50%).

One of the most important benefits of a debt consolidation loan is that it can afford a fresh start to a more healthy financial future. You can eliminate stress while taking back control of your life.

Debt Consolidation vs. Debt Settlement
Debt settlement programs negotiate a payment amount with your creditors that will satisfy your creditors at the best rate possible for you. Debt settlement services can quickly eliminate your debt and financial stress.

These programs can eliminate your debt in as little as 12, 24, or 36 months. Harassing phone calls from creditors will disappear, as well as the high interest rates you previously paid. Not only are late charges and over limit fees eliminated, your monthly payment will drastically drop.

However, keep in mind with a debt settlement program all information, including settlements and accounts paid in full, are reported to the credit bureaus by your creditors upon settlement.

Get Out of Debt
Over 70% of the American population is in serious financial debt. There are debt consolidation companies who can help consolidate your payments and work with your credit card companies to get your interest rates down.

Like with any decision that can have a major impact on your financial future, do your homework. Many people have lost money and ended up having to file bankruptcy because a debt consolidation company was not legitimate. Make sure you know what you are getting into and understand your contract completely.

How to Choose a Debt Consolidation Company
You should research different companies in order to find the most reputable one.

The first thing you should do is check with the Better Business Bureau that the company doesn’t have any complaints on record. Ask family, friends and colleagues to see if they have used similar companies or if they know of a good one.

Be aware of the following:

If you are having them pay your payments for you it will show up on your credit report.

These programs usually lower your credit score.

Being in debt does not necessarily mean all is lost or that you will have to file bankruptcy. The options listed above are just a few that can help eliminate your financial stress. The main thing is to not give up. Thousands of people have been in debt and gotten out of it.

Carlos Ugalde is the founder of http://www.informedcreditsolutions.com and dedicated to giving access to all people with less than perfect and troubled credit through a variety of reputable, honest lenders that in conjunction with ICS will allow clients to understand and improve their credit situation through a variety of services free, no obligation services and online educational material.

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Mortgage insurance provides lenders a form of financial guarantee which protects the lender in cases in which the borrower defaults on a loan. For those looking to buy a home, agreeing to loan terms which include mortgage insurance, increases the purchasing power of the buyer a great deal. Agreeing to buy mortgage insurance allows individuals the opportunity to buy a home with a down payment of only 5%-10%, as opposed to the 20% that is often required when the lender does not have the guarantee of mortgage insurance.

Buyers typically purchase and pay for mortgage insurance in three different ways. These ways include paying in annuals, monthly premiums, or singles. We are going to take a closer look at the available mortgage insurance payment options below:

1.) Annuals: The annuals payment option allows the lender to collect the first year’s premium at closing and then all subsequent payments are made on a monthly basis.

2.) Monthly Premiums: This payment option requires the buyer to only pay for one month at closing and all remaining payments are then made on a monthly basis.

3.) Singles: The singles payment option requires the buyer to make a one-time single payment that is typically financed as part of the mortgage amount.

Mortgage insurance ensures the lender is covered in cases in which the borrower can no longer pay the loan and defaults on it. It is also a powerful bargaining tool for potential borrowers who are unable to come up with a large down payment. Offering to pay mortgage insurance can decrease the amount of ones’ down payment by 10% to 15%. But it is important to note that mortgage insurance does not have to be paid forever. After a certain period of time and when certain conditions are met, mortgage insurance is no longer required to be carried on the mortgage.

For more information on better Mortgages as well as great Mortgage Broker tips, tricks, and techniques and money-saving info visit www.lenoxnationalmortgage.com

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