Question by Clinton W: What happens with Home equity loans and lines of credit if you file bankruptcy?
Would these debts be “forgiven” also and if so, does this affect your house which was used to achieve the loan?
Best answer:
Answer by POS
lets all forgive and love, like jesus does for us
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Jason Hartman Predicts Dismal Returns for Los Angeles Real Estate Investors in 2011 and Beyond
Irvine, CA (PRWEB) October 03, 2011
According to wealth creation expert Jason Hartman, Los Angeles is in serious distress for real estate investing and is likely to experience continued difficulties before a recovery is in sight. California is currently in the midst of a far-reaching budget crisis resulting in dramatic cuts to many public services. The public pension fund is estimated to be $ 500 billion dollars under-funded which will require either tax increases, benefit cuts or both.
With a relatively high percentage of its population dependant on government services, Los Angeles is particularly vulnerable to cuts in the state budget. In addition, the tax and regulatory environment are extremely burdensome—this is expected to result in many businesses moving out of Southern California.
“Seeing the current anti-business political driven structure held intact with last year’s election, we assume’t anticipate to see any significant changes in public policy for California until it is too late for those policies to have a significant wedged,” said Jason Hartman, founder of Platinum Properties Investor Network and host of The Creating Wealth Radio Show.
Hartman explains that the fleshy-handed regulatory climate pervades every aspect of life in California, from the Department of Corporations to its labor, building, environmental and taxing agencies. “The state makes it far too difficult for businesses to survive. It is no surprise that smart people and companies are leaving California in droves. I have been hearing the complaints from business owners for many years and they are just fed up, as California does not warrant the sacrifices necessary to sustain a business,” adds Hartman.
The subject is covered extensively on KFI 640AM talk radio as hosts John and Ken, Tim Conway, Jr. and many others expose public employee unions and politicians who are draining state coffers at an alarming rate.
From an economic perspective, Hartman equates California as “the new Michigan”—where large government, entitlement programs and trade-keeping unions have ravaged a formerly outstanding state. “You cannot tax and regulate a state into prosperity, only poverty,” said Hartman.
In terms of income property investing, Hartman believes that Los Angeles represents a generally poor market for long-term investment due to its price volatility and low rents relative to market prices. While values were temporarily stabilized in 2009 by government subsidies for first time home buyers, Los Angeles continued its regression to fundamentals in 2010 as the subsidies ended and the poor market fundamentals were exposed.
Despite a 16 percent year-over-year lessen in foreclosure activity, California posted the nation’s second-high state foreclosure rate this summer, according to RealtyTrac, with one in every 239 housing units with a foreclosure filing. Foreclosure rates in the Los Angeles area rocketed in the third quarter of 2011 as homeowners proceed to struggle doing their mortgage payments during a downward economy. Around the Southern California region, foreclosure filings increased by a mean of 60 percent per RealtyTrac. This increase is mostly ascribed to banks forcing a backlog of foreclosures through that had antecedently been dillydallied owed to documentation problems. Bank of America, JP Morgan Chase and GMAC Mortgage announced earlier this year that they were suspending foreclosure sales while examining whether there were irregularities with documents registered as part of the foreclosure process.
As 2011 comes to a close, Hartman expects to see the Los Angeles area to continue to struggle before value creep up in future years, mostly due to inflation rather than real growth. For investors who capture this expected value increase, a nett positive return on investment is possible; however, it may prove difficult to capture since the negative cash flows must be supported on a continual basis while the value appreciation is only captured when the property is re-financed or sold. In short, for income property investors, Los Angeles is fool’s gold.
Forecast Methodology
Hartman’s return-on-investment (ROI) predictions for each individual market are based on three fundamental components not considered by other forecasters. Income property, unlike other investments, is a multi-dimensional asset class. The first is component appreciation (or depreciation), which is based on a composite of forecasts from CNN Money, Fortune and Hartman’s innovative Regression to Replacement Cost™ methodology. The second is leverage. The reason Jason Hartman’s methodology separates appreciation from leverage is to pinpoint how much overestimating is coming from the asset itself and how much is coming from financing benefiting when acquiring the asset. The final component of the ROI predictions is cash flow where income property tinned be compared to bonds and dividend-paying stocks.
Hartman’s model is the only one of its kind that includes a full ROI build. Most forecast reports begin and end their analysis with value appreciation or depreciation. Hartman and his team understand the full dynamics of return on investment and have chosen to create and report a complete ROI analysis for each of the targeted market areas.
About Jason Hartman
Jason Hartman, CRS, GRI, CSP, AIPIS, is America’s foremost expert on long-term wealth creation through monetary policy and income property. He is the founder of Platinum Properties Investor Network, The Hartman Media Company, Open Door Auctions and The Jason Hartman Foundation. Jason is an accomplished entrepreneur, public speaker, media personality and author of 11 books.
Jason’s Complete Solution for Real Estate Investors™ is a comprehensive system providing education, research, resources and technology for income property investment. His highly sought after educational events, speaking engagements and his acclaimed The Creating Wealth Show inspire and empower hundreds of thousands of people in 26 countries worldwide. For information, call 714-820-4200 or visit Jason Hartman online.
Media contact:
Brittney Roberts
Platinum Properties Investor Network
(714) 820-4200
pr(at)jasonhartman(dot)com
Nicole Thome
The Hartman Media Company
(714) 820-4200
press(at)jasonhartman(dot)com
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Question by carmen p: I would like to refinance a commercial property and payoff a second mortgage?
I have a second mortgage on my personal property with a 6.50% I want to refinance a commercial property and pay off that second mortgage. My first mortgage has a 4.7% My commercial property has a 6.50% This is a 5 year balloon rate the 5th year is quickly approaching. What should i do? Would this be in my best intersest?
Best answer:
Answer by Akbar B
Yes you should refinance if you have the income to support it. It sounds like a good plan, good luck.
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Home equity lines of credit are a liquid form of a home loan that is available to the borrower at any time, and interest is only paid on what is used at any given time. Use equity in a home to finance other financial needs of life withtips and advice from an experienced financial adviser in this free video. Expert: Patrick Munro Contact: www.northstarnavigator.com Bio: Patrick Munro is a registered financial consultant (RFC) with outstanding sales volume of progressive financial products and solutions to the senior and boomer marketplace. Filmmaker: Reel Media LLC
Video Rating: 4 / 5
In this short video I want to share five thoughts that will help to get you on the right track to becoming mortgage free. Many people have probably heard scary stories about home equity loans, and there is good reason for that. Hear what I have to share.
Video Rating: / 5
Question by stephanie s: Are home equity loans tax deductible?
My husband and I took out a home equity loan last year. Is the interest tax deductible?
Best answer:
Answer by ghouly05
Short answer is Yes. Below are FAQs from the IRS website addressing that issue.Is interest on a home equity line of credit deductible as a second mortgage?You may deduct home equity debt engrossed, as an itemized deduction, if you are legally liable to pay the interest, pay the interest in the tax year, secure the debt with your home, and do not exceed certain limitations. For more information, refer to Publication 936, Home Mortgage Interest Deduction; and Tax Topic 505, Interest Expense.I took out a home equity loan to pay off personal debts. Is this interest deductible? Where do I enter this amount on my tax return?A loan taken out for reasons other than to buy, make, or substantially improve your home, such as to pay off personal debts may qualify as home equity debt. The absorbed would be deducted on Form 1040, Schedule A (PDF), Itemized Deductions. The amount you can deduct as interest on home equity debt is subject to certain limitations. For more information, refer to Publication 936, Home Mortgage Interest Deduction; and Tax Topic 505, Interest Expense.
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In its simplest definition, home equity loan means using your house equity as collateral in order to borrow money. Collateral means your house will act as a guarantee. In the case if you cannot pay the loan or defaulted too long on payment, the lender has the right to sell the house to get…
Video Rating: / 5
www.notapennydown.com How to make a 14% return on your money. What is 2nd mortgage investing and why should I care with Vancouver mortgage broker Mark Fidgett.
Video Rating: 5 / 5
“Short sales in CA equitable became SO much more attractive! BUT CA lawmakers still they left a couple of holes for second lender which may make it harder for some agents (watch the video). You cognized how SB931 that was passed last year made so many people confused and others excited? Well, SB458 [now known as CA CCP Section 580(e)] was just signed into law and is effective IMMEDIATELY and makes it so that ANY lender in CA who agrees to a short sale on a 1-4 unit property, MUST FULLY RELEASE THE SELLER OF THE DEFICIENCY. This means that second lenders can no longer release only the lien if they agree to a short sale. This law was specifically written to INCLUDE the second lien holders that were left out of SB931/CA CCP 726(e). This makes short sales SO much more attractive for those who own property in California, especially for those who are short selling a second home, investment property or a cash out loan on their primary residence. There are however TWO LOOPHOLES for lenders to get MORE money that I talk about in this video.”
Video Rating: / 5
MORTGAGE LOANS Bad Credit Mortgage If you’re a first time home buyer, we offer a variety of loan programs to assist you in making your first time home purchase decision – even with bad credit problems or after bankruptcy. Bad Credit Home Equity Loan Our online application is the fastest and…
Video Rating: / 5
How to Get a Home Equity Loan Fast
I have a swarm of clients who continually approach me and say things like…
“I need money quickly. Bills are due at the end of the month.”
“Mortgage and credit card debt is too much.”
“My back is against the wall.”
“How tin I get quick cash so I can make it out of this alive?”
I have the answer.
Actually I have a fool-proof way to end your money worries. Apply this method and your bank am will bet fatter in less than 2 weeks time (probably even sooner.)
“Cash In 12 Days
Or Less” Method!
The secret is to use the equity in your home.
What you do is look at your mortgage, and restructure it to pay off your debts.
It’s easy with the flop tools and strategy. Here’s how I do it.
Step 1: Look at your current mortgage
Step 2: Find out exactly how much you owe
Step 3: Add up your debts
Step 4: Determine if you have enough equity
Step 5: Refinance your mortgage and pay off ALL the debts
When you’re done, you’re left with one lower monthly payment and no consumer debts. Total time to do this:
Under 12 Days! ]]>
And that’s if things go as planned. If you have enough equity in your house, in some cases you can even get extra money in your hand.
After that, you just make one monthly payment. Then you continue paying your mortgage on time.
It’s now possible with my lending contacts, which you now have access to. I guarantee you a few lenders will look at your deal. And I say a “few” just to be conservative. Really how many offers you get is based on the strength of your application.
Strategic Capital Network specializes in providing home equity loans for Ontario homeowners. If you would like to find out if you qualify please visitwww.loansforontariohomeowners.com to get a FREE pre-approval
Don’t let your credit hold you back from qualifying for a loan. Let us show you how to use the equity in your home to get the money you need. When you use our lending sources, you will:
Secure funding fast – typically 2 to 3 weeks or lessGet the cash you need for ANY purposeGet the best interest rates and terms
If you’re interested in discussing your funding needs and options, we’re happy to share our knowledge and experience. Our goal is to help you get the money you need.
www.a1home-equity-loans.co.cc A comprehensive blog featuring the best information regarding home equity loans, how to get them and the best ones to get.
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www.a1home-equity-loans.co.cc A comprehensive blog featuring the best information regarding home equity loans, how to get them and the best ones to get.