Preparing for a Home Loan With Debt Consolidation

When bills go unpaid and are allowed to accumulate into a major issue it is a problem of titanic proportions for most individuals in the United States of America. With the focus of an entire nation on the sub prime mortgage debacle it is imperative that we speak about an issue that is going to be a part of the lives of so many millions of Americans in some point in time. That issue is home ownership. Today we’re going to look at how you can prepare to dive into the turbulent waters of today’s mortgage industry and be better-prepared than ever before with a debt consolidation experience.Getting ReadyCredit card and other unsecured debts that go unpaid can damage your credit and make it difficult to obtain a home loan. In most cases concerning Americans today it is highly-recommended that before obtaining a home loan the borrower should consolidate or pay off his debt. With the current economy and the job loss situation the latter regarding paying off the total debt is a no-go and something very few can entertain. This point’s us right back to the first option and that is to consolidate the debt.Home Ownership is the American DreamThe role of debt consolidation is to lower your monthly payments while at the same time increasing your credit rating and laying the groundwork for a brand-new home loan. While that is a great benefit for debt relief and for the millions of individuals that will entertain that loan instrument and industry, it is not the topic of this review here today. We are focusing on preparing for that mortgage loan experience and having debt consolidation lead the way in that regard. The benefits and the value of this form of experience will come into play and be brought into light as soon as the collection calls and the late letters stop filling the mailbox and the voice mail box as well.QuicklyPlease allow a debt consolidation professional to speak to you today about paying off some or all of those past credit card debts as well as any other unsecured debt scenario that you may have been currently dealing with for decades at a time. The American Dream is to be a homeowner and do not let the dark shadows of today’s economy slowdown or mask that dream any longer. In this way you will be helping your family out while helping the country out and getting the nation back on track as soon as possible.Debt Consolidation Resources

Home Ownership and Equity Protection Act

The Home Ownership and Equity Protection Act (HOEPA) were established by The Federal Trade Commission in 1994 as an amendment to the Truth in Lending Act (TILA). It is very essential to know the rights both for a borrower and lender. This law sets rules and standards to ensure that all customers get a fair deal.The house owner with loans of first or the second lien is favoured in the Home Ownership and Equity Protection Act of 1994. Mortgages should also have protected equity loans whose closing costs is greater than $579, the rate of 2010, or almost 8% of the complete borrowing. On a home the first equity loan is the first-lien loans which should have an annual rate percentage that is 8% higher than the U.S. Department of Treasury’s rate of securities of similar maturity. A home’s second equity loan is the second-lien loan. This should be almost 10% higher compared to the U.S. Department of Treasury’s rate. The acts rules include home equity instalment loans as well as refinancing which have high fees and rate. The act does not cover loans acquired for building a house, reverse mortgages or other line of credit. Once the loan satisfies all the rules as required by the act it requires a minimum of three working days to be materialized. Prior to finalising on a home formal notices in writing have to be sent to the borrowers by the creditors informing them if the loan isn’t officially finalised and they can also back out even though the application is signed. The notice should also caution the borrower if the payment is not made the borrower could lose the house as well his money used for it.The notice should mention the loan amount which is inclusive of the credit insurance premiums, the APR Annual Percentage Rate and the amount which is to be in regular intervals. In case of loans with variable rate, any changes, the monthly payment and the maximum month payment should be mentioned in the notice.Borrowers must receive the notice which includes the TILA rules which has to be received before the closure of the loan. Certain practices are restricted under this Act such as HOEPA is useful is controlling certain loan terms for high-cost loans as they indulge in default lending practices. These terms include short-term balloon notes, prepayment penalties, non-amortizing payment schedules, and higher interest rates upon default. Creditors are restricted in default calculation which is less favored than the actual method without regard to the borrower’s capability to clear the loan.