Dear home 911,

My family bought a modest house two years ago in Marikina on a 10-year bank loan. During typhoon Ondoy, floodwaters reached up to the second floor of the house, damaging everything inside. The wooden floors and walls have warped and all appliances and furniture have been destroyed. Luckily, we all survived without physical harm. The problem is that with the extent of repairs to be done to make the house livable again, we just can’t afford to pay the mortgage. And nobody wants to buy a house that was damaged by Ondoy, even if you sell it way below the market value — and what value is the house and lot now anyway? It is more practical for us to rent an apartment. While we can still meet the basic necessities, we feel desperate about the mounting bills. It’s easier for us to just let the bank repossess the property. Can we just stop paying and abandon the house? What are the consequences?

Maya

Dear maya,

When I was watching and reading about the aftermath of Ondoy, my heart broke for the loss of lives and for all the hardworking families whose homes were destroyed. There haven’t been many reports about the middle class whose homes were destroyed and I can only imagine the hardship they are going through at seeing all those years of hard work literally being swept away by the floodwaters. Where do they go now? These families will not line up at the relief centers because they still have jobs to go back to, but how do they deal with the loss of decades of hard work, saving a little money here and there, denying themselves vacations or purchases — to eventually buy their own home? And then Ondoy happened. Now they have to face the realities: mortgage payments on a house that is now worth a fraction of what they are paying for. It sounds like a nightmare.

The first thing you have to do, if you haven’t done so, is to meet with your bank manager. Ask about a moratorium. Banks are in the business of making money, but what happened to the country in these past three weeks has so shaken everybody that perhaps they might have payment schemes for Ondoy victims.

I asked my banker friend who works in the loans department of a top bank in the country and this is her answer:

“If the house was damaged by Ondoy, the mortgage with the bank remains and the obligation of the borrower remains just the same. If the borrower opts not to settle, interest, penalties and charges will accrue, lalaki pa lalo ang utang. The bank will exert its effort to collect and if it is futile it will exercise foreclosure procedures. Once the bank has repossessed the property, the former owner will have a default credit record, the loan will still remain outstanding as far as the borrower is concerned but in the books of the bank it will be considered a bad debt. It may be best to sell the property and use the proceeds to pay off the loan.”

Obviously, with a bad credit record, you will not be able to take out a loan from a bank again. While this may seem like a small thing now, think of the future, when you might need to take out a loan for whatever reason and you can’t because of your record.

Source:www.philstar.com- Modern Living

We all know that making our home look more beautiful is not cheap. It requires money with enormous amount. No matter how practical we want to be, we are still driven by our high fashion sense for our homes. If that is the case, it will be unavoidable for us to have credits and debts in our pursuit to make our home look even better than before.

If we can’t avoid having debts, it will be great for us to know the concept of debt consolidation. We are aware that we have lost of bills to pay like our electric and water bills. If these come together with our credit card debt, it might be a great problem for us. If you are also availing for a loan for this purpose of home beautification, then it will be good for you to have payday loan consolidation. This is the process in which all of your debts are combined to one single list in order for payments to be made more systematic.

Beautifying our home is great for as long as it does not compromise us in nay form like having debts. But if in case this can’t be avoided, you should just practice the process of debt consolidation to minimize your problems.

The Yuletide season is very much fast approaching. We can sense this because the air is starting to become cold. This might be good at some point but if the coldness is that much, it will be a problem anymore. With this, there is a need for us to maximize the use of our heating machines in our house to make sure that we are safe from too much coldness of air. But doing this is not cheap. You may run out of cash at hand because there are lots of things that you need to finance during this season.

The aforementioned problem will be solved if you will avail payday loans. You can be sure that your money will suffice for wall of your needs. With regards to loans, of course you need them to be processed fast. If that is the case, Fastwire Cash will give you the money you need in just a short while.

It is not a good thing to run out of financial resources especially at times like these. You need to be ready always or you will really run into big problems. With regards to money assistance needs, Fastwire Cash is always here to give us a hand.

Getting a home loan is today far easier than it used to be even a few years back. Home loans are full and plenty. You can choose from a wide variety of home loans. If you are a homeowner you could look through some secured homeowner loans. Alternatively, home equity loans are also a good bet. But first of all, before you even decide to start looking for a perfect loan, make sure you have decided what use you will be putting that money to. You certainly don’t need me to tell you that you should not be frittering away borrowed money on pursuits that will give you no returns.

How do you make the best possible use of this money? One common purpose of taking home loans is to pay for higher education. Education, in the twenty-first century, is quite expensive, especially if one is considering the top rung colleges and universities. But, I am sure that you will agree with me when I say that no gifted student should have to bid farewell to a good college merely because of financial constraints. Loans help us pay for such contingencies. They are to help you pay for things that you cannot immediately afford. So, if you have own a house with a high equity, free that equity to pay for your son’s college education.

Of course, education is not the only outlay that a home loan can take care of. Haven’t you heard of home improvement loans? You might say that home improvements and renovations are a waste of time, that they are merely a way of pandering to your ego. But then, doing renovations to your home is yet another way of developing your property. It is a good way of enhancing the value of your home. So, if someday, you have to actually sell your beloved home, you will get a lot more for it, merely because you were eager to carry out renovations and repair work in your home.

There are a number of lenders that are eager to advance you a large amount with your house acting as collateral. There are hundreds of home loan types that you can choose from. If you are still in the process of repaying the mortgage that you took to buy your house, you could use the equity (that is, the difference between the value of the house, and the amount of money that is still due on the mortgage) to cover your other major expenses. Think about it. Loans are a great way to finance larger outlays in this day and age.