Baby Boomer Credit Fitness-Avoid Bankruptcy Double Jeopardy
Posted by LVM on November 2, 2009
Our guest author for this post is Morlino and Lathea Morris on How to Avoid Bankruptcy Double Jeopardy
As more people remain unemployed and layoffs continue, more and more consumers are finding themselves unable to pay their bills and forced to file Chapter 7 bankruptcy. Although you expect your credit score to take a hit when you file bankruptcy, you shouldn’t be penalized twice. But many consumers who have filed bankruptcy and anxiously applied for financing soon after their bankruptcy is discharged, are shocked to learn they have been denied only because the credit bureaus have failed to do their job. Credit bureaus sometimes don’t update consumer credit reports to show debts that are included in the bankruptcy. A court ruling requires the three credit bureaus – Experian, Equifax and TransUnion to report all debts that are discharged through Chapter 7 bankruptcy to be listed as such on consumer credit reports. Delinquent debts that were discharged through bankruptcy that still appear on your credit report not updated will negatively impact your credit score. Why? These debts will be looked upon as current debts and will appear to a potential lender that you still owe these debts.
Reverse Mortgage For Your Parents?
Posted by Rosie on July 16, 2009
I honestly do not know much about reverse mortgages. However, I do know that many baby boomers have different opinions about them. I am posting an article from a guest blogger. However, I welcome other articles on this subject that may or may not be in agreement. I also welcome your comments and experiance with reverse mortagages.
My goal is to present information that will add clarity for baby boomers who are exploring this option for their parents. Thank you
A Mortgage That Will Bring a Smile to Your Parents
Courtesy of By Sam Telford from Reverse Mortgage Advisors
Here’s an interesting and informative bit of news for “Baby Boomers” looking to make their parents’ life happy and peaceful without taking a burden on their shoulders! You can take a reverse mortgage loan for your parents if they own a home, this will ensure that they live the rest of their lives with pride and honor. By doing so, you ensure that you continue saving your hard-earned money and at the same time do not compromise with your parents’ lifestyle. Amazing, isn’t it! Surely you would like to know more about reverse mortgages, how exactly they work, and how your parents as well as you can benefit from them. So here goes!
If the borrower is above 62 years of age and needs a constant source of income to sustain a decent lifestyle, he/she can go ahead and apply for a reverse mortgage. A reverse mortgage is a special type of loan that assists senior citizens to convert a portion of their home equity, built up over the years of mortgage payments, into ready cash. Unlike other types of mortgages, the borrower does not need to make any repayments as long as he/she continues using the home as his/her primary residence. In case there is an existing mortgage on the home, it needs to be paid off using some of the proceeds from the reverse mortgage.
Surely, if you are a “Baby Boomer,” you would not qualify for a reverse mortgage as it requires the borrower to be above 62 years of age. However, this special type of loan is ideal for your parents. Reverse mortgages are rapidly becoming popular in the U.S. because of the benefits that it offers. For all senior citizens, a reverse mortgage can assist them in:
- Maintaining a decent lifestyle and being financially independent
- Paying for long term care while living at home
- Leading a secure life with the comfort that they are not a burden to anybody
- Paying off their daily bills that includes the telephone bill, electricity bill, and grocery bill as well as maintaining their home
- Staying in their sweet home for the rest of their lives and without any restrictions on how to use the received money
- Retaining total ownership of the home and ensuring no tax deduction on the proceeds
- Living with pride and honor as well as purchasing gifts for children and grandchildren
- Traveling to various destinations without having to ask for money from children
With so many benefits for senior citizens, a reverse mortgage is a blessing in disguise. In addition, it is a government-backed procedure that ensures no one loses in the bargain. Not only this, reverse mortgage also offers a lot of benefits to all you “Baby Boomers” who encourage your parents to go ahead for reverse mortgage.
- Without paying a penny from your pocket, you ensure that your parents live a decent lifestyle with pride and honor.
- You continue saving your hard-earned money while ensuring that your parents pay off all their bills without having to depend on you.
- The home continues to be in your parents’ name; therefore, they never need to look for a residence.
- You continue to have a healthy and happy relationship with your parents without ever feeling that they are a burden.
- After the home is sold off and the existing debt is paid off, all the extra money comes across to you
However, one fact that you should know about; is that reverse mortgage is a loan that has increasing debt and decreasing equity. This means that the longer thr reverse mortgage lasts, the less will be the equity of the home. Therefore, when the home is eventually sold off, you as an inheritor will get less money. However, the abundance of benefits that reverse mortgage offers to senior citizens as well as their children overshadows this meager fact! Moreover, such a fact should never stop you from encouraging your parents to go ahead for reverse mortgage. For all the pain and compromises your parents made to ensure that you are entitled to a decent lifestyle, this is the least that you can do for them; make sure that they live comfortably in their own home for the rest of their lives.
For a reverse mortgage quote contact Reverse Mortgage Adviser
