Category Archives: Home Mortgage
Bad credit is no longer a deterrent
Summary- Gone are the days when having a bad credit score meant you could no longer avail any loan. Sub-prime lenders nowadays provide unsecured loans to those with adverse credit score.
Loans rejected because of bad credit are past tense now. There are many lenders in the UK loan market who are willing to lend you money on interest despite your adverse credit history. Bad credit holders used to consider it a daunting task to avail loans, especially the ones without security.
But, the UK loan market has witnessed many advances in the technological sphere. The competition among lenders has accelerated and so is the variety of loan products in the market. The use of web media for advertising for and selling loans has revolutionized the loan market.
Unsecured loans are not backed by any security and this naturally invites risk for the lender. The lender has no security in the form of borrowers assets to fell assured. The only thing he looks at is the credit history of the borrower. It is indicative of the past repayment records of the borrower. On the basis of this, the borrower’s credibility is assessed. But, what if you have a poor credit history? What if past arrears, defaults and CCJs have stained your repayment history? Sub-prime lenders, especially the private and online are there to help you out with your financial problems.
Unsecured loans are high risk lending options for the lenders. Thus, they charge high APRs. The APR can be higher if the applicant suffers from bad credit score. The lender compensates the risk involved in the loan deal by charging a high APR. Availing unsecured loans at high interest rates is not a bad deal if you neither have any security to back your loan, nor a good credit status to boast of.
If the borrower has a good DTI (debt to income) ratio, he can expect to get a cheap unsecured loan. This is because DTI calculates the disposable income of the borrower. And if the lender finds that the borrower had a bad credit past but now he can afford to pay the loan installments, he happily grants unsecured loans.
How to Protect Your Home From Medicaid Reimbursement
All people wait for that red-letter day when they make their final mortgage payment. They look forward to owning their home without encumbrances. As long as property taxes are paid, their most valuable asset is safe. The property can be passed on to their heirs.
But let us not forget the Medicaid reimbursement official with a lien, ready to seize your treasured asset. Under the laws of most states they have the right to seek reimbursement for Medicaid payments. As long as you live in your home it is exempt from recovery. The moment you enter a nursing home, that protection is gone.
If you are married, your house will be exempted as long as your spouse lives in it. But if the spouse dies, the state can place a lien on your home. Then you can neither sell it nor refinance it without reimbursing the state for your Medicaid payments. If a situation arises where what you owe equals the equity in your house, your heirs will receive nothing from the sale of your home. To avoid such a situation, the following safeguards can be taken.
Obtain long term care insurance. It pays for in-home care like a stay in a nursing home or assisted living facility, so that Medicaid need not be resorted to. Statistics reveal that 69 percent of Americans who reach 65 will need long term care at some stage.
Gift your home to your children or loved ones. A lien cannot be imposed by the state on a home which is not yours. The gift has to be made more than 60 months before you enter a long term care facility. The recipient might have tax implications.
Your home can be transferred with a special power of appointment. The transfer could become effective immediately or after you die. If this is done, the state is kept away.
Consult an attorney who specializes in elder law.