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Should I Switch to a Credit Union?

admin — Tue, 22 Jun 2010 00:18:26 +0000

A credit union is a cooperative financial institution that is owned and controlled by its members and operated for the purpose of promoting thrift, providing credit at reasonable rates, and providing other financial services to its members. Many credit unions exist to further community development or sustainable international development on a local level. Worldwide, credit union systems vary significantly in terms of total system assets and average institution asset size, ranging from volunteer operations with a handful of members to institutions with several billion dollars in assets and hundreds of thousands of members. Yet credit unions are typically smaller than banks; for example, the average U.S. credit union has $93 million in assets, while the average U.S. bank has $1.53 billion, as of 2007.

The World Council of Credit Unions (WOCCU) defines credit unions as “not-for-profit cooperative institutions”. In practice however, legal arrangements vary by jurisdiction. For example in Canada credit unions are regulated as for-profit institutions, and view their mandate as earning a reasonable profit to enhance services to members and ensure stable growth. This difference in viewpoints reflects credit unions’ unusual organizational structure, which attempts to solve the principal-agent problem by ensuring that the owners and the users of the institution are the same people. In any case, credit unions generally cannot accept donations and must be able to prosper in a competitive market economy.

As consumers, we are doing all we can to make ends meet and start saving more cash. Interestingly, the one place people fail to notice they are losing cash is the exact same place they store their cash. Banks have been raising their fees and lowering their interest rates, leaving customers unsure of what to do. There is no chain binding you to your banking institution and may want to consider your other options.
Exploring Your Options

A credit union is one such option. Banks and credit unions do differ and you should take a look at what your local credit union have to offer you. There are over 90 million people who belong to credit unions across the country and nearly anyone can belong to a credit union because of their employer and other associations where the consumer belongs.

Exploring the Differences

Credit unions are owned by its members. When you open an account at a credit union, you essentially are part owner in the business. You are more likely to get better customer service that at your traditional bank. Credit unions are not designed to make a profit, therefore their fees are smaller and occur less frequently than at a bank. The profits that are made will then be divided up amongst account holding members. Banks keep adding fees in order to boost profits. Unlike bank, credit union ATM cards can be used at a large network of ATM’s for no fee. Some will even reimburse you for fees incurred from other ATM’s used.

Many consumers have joined credit unions only to get a good deal on a loan but then come to discover the other benefits, such as lower fees, better interest rates, and good mortgage rates. Many will find a credit union from information given out by their employer. Otherwise you can find a credit union for you here.

Deposits at a credit union are insured for at least $250,000 on each account. That coverage is provided by the Federal Deposit Insurance Corporation and backed by the federal government. If you haven’t taken a serious look at your bank policies lately, now is a great time to do just that. You may be surprised to see exactly how much your bank is costing you each month. You can always comparison shop with other local banks and see what kind of deal you can get, or even negotiate with your current bank to get a better deal but if you find that banks are no longer meeting your financial needs, check out your local credit union for more options.

news about Interest rates

admin — Wed, 17 Mar 2010 02:12:11 +0000

Interest rates fall after Fed stands pat: CHARLOTTE, N.C. — Interest rates fell in the bond market Tuesday after the Federal Reserve said it is still likely to keep a key lending rate at historic lows for an “extended period.”

The yield on the 10-year Treasury note maturing in February 2020 fell to 3.66 percent in late Tuesday trading from 3.70 percent late Monday. Its price rose 12/32 at 99 24/32. The yield of the 10-year note is linked to interest rates on mortgages and other consumer loans.

readmore:
Interest Rate Definition
An interest rate is the price a borrower pays for the use of money they borrow from a lender, for instance a small company might borrow capital from a bank to buy new assets for their business, and the return a lender receives for deferring the use of funds, by lending it to the borrower. Interests rates are fundamental to a Capitalist society[dubious – discuss]. Interest rates are normally expressed as a percentage rate over the period of one Gregorian year[citation needed].

Interest rates targets are also a vital tool of monetary policy and are taken into account when dealing with variables like investment, inflation, and unemployment.

Effective Interest Rate Calculator

http://www.calculatorsoup.com/calculators/financial/effective-interest-rate.php

Most Overlooked Tax Deductions

admin — Mon, 15 Mar 2010 11:49:48 +0000

Overview
Tax deductions allow you to reduce your taxable income and also your tax bill. A tax deduction differs from a tax credit, which is applied directly to your tax bill, reducing it dollar for dollar.

Most people qualify for the standard deduction: $5,700 for Single and Married Filing Separately, $11,400 for Married Filing Jointly and Qualifying Widow(er), and $8,350 for Head of Household.

If itemized deductions are more than the standard deduction, itemizing will save you more.
You can claim above-the-line deductions whether you itemize or not.
Schedule C filers may qualify for additional deductions.

The standard deduction is a fixed dollar amount that reduces the amount of income on which you pay tax on your tax return. The amount of the basic standard deduction depends upon your tax return filing status. However, if you can be claimed as a dependent on someone else’s tax return, your standard deduction amount may be different. In some cases, the standard deduction on your tax return can consist of two parts, the basic standard deduction, and an additional standard deduction amount for age, blindness, or both.
If a person is born or dies before the end of his or her tax year, the tax year is considered to cover a 12-month period.

The effect of Financial crisis in India

admin — Mon, 12 Oct 2009 12:11:00 +0000

Impact of Global Financial Crisis on South Asia
The global financial crisis hit South Asia at a time when it had barely recovered from severe terms of trade shock resulting from the global food and fuel price crisis. The food and fuel price shocks had badly affected South Asia, with cumulative income loss ranging from 34
percent of 2002 GDP for Maldives to 8 percent for Bangladesh. Current account and fiscal balances worsened sharply and inflation surged to unprecedented levels.

India, South Asia’s largest economy, has been facing major challenges owing to the global financial
crisis. The immediate effects were plummeting stock prices, a net outflow of foreign capital, a large
reduction in foreign reserves and a sharp tightening of domestic liquidity. These caused a rapid
depreciation of the exchange rate and a surge in short-term interest rates. The second round effects
emerged from a slowdown in domestic demand and exports. Demand effects have been particularly
severe in housing, construction, consumer durables and the IT sector. As a result, manufacturing
production has taken a hit and activities in the organized services sector (housing, construction, IT)
are down sharply. Exports declined for two consecutive months in October and November 2008. A
recent government study estimates job losses to the tune of five hundred thousand between
October and December 2008. GDP growth rate is now estimated at around 7 percent for 2008,
down from 9 percent in 2007, and is projected to decline to around 5 percent in 2009.
The government of India has been highly proactive in managing this ongoing crisis with a slew of
monetary and fiscal measures to stabilize the financial sector, ensure adequate liquidity, and stimulate
domestic demand. The monetary policy measures have succeeded in stabilizing interest rates and the
availability of domestic liquidity. The exchange rate has also stabilized and capital outflows have
been contained, with foreign exchange reserves maintained at around $250 billion level. The
pressure on the financial sector has been eased, although there is some evidence of an increase in
non-performing loans. However, the financial sector has become more risk-averse. The decline in
global fuel and other commodity prices has helped the balance of payments and lowered inflation,
which has fallen sharply from a peak of 12.8 percent in July 2008 to below 6 percent in December
2008. This has created the space for monetary easing as well as providing better scope for the fiscal
stimulus. The monetary and fiscal stimulus package is expected to contain the downward
slide in demand in 2009 while providing a good basis for recovery in 2010.

Here are some excerpts of the interview.

Q. Whether the financial meltdown affected the trade and business developments between India and the UAE in 2008 and now?

A. No negative effects of the global financial meltdown on India-UAE trade relations have been seen so far. They may emerge, after a year or so, if oil prices continue to fall in tandem with business decline in the West. India and UAE have good economic and trade relations which are growing further. The UAE is India’s third largest trade partner in the financial year 2007-08.

Q. Has the flow of Indian expatriates travelling to the UAE gone down due to the economic downturn, and it resulted in job losses of many in the UAE who toil in construction fields?

A. The current economic crisis is unlikely to have any significant impact on the recruitment of Indians as the major energy, infrastructure and real estate projects being pursued in the country would not be halted, keeping in view the readily available financial support for such projects. Major real estate developers have also assured that ongoing projects would not be slowed down or delayed.

Q. What new improvements have been gained in the two way trade ties between the two countries in 2008?

A. Non-oil trade between India and the UAE has crossed $29 billion in the financial 2007-08, up 24 per cent compared to the last fiscal year, making the UAE India’s third-largest trading partner after the US and China. India’s non-oil exports to the UAE in 2007-08 rose to $15.47 billion from $13.61 billion, a year earlier whereas, India’s non-oil imports from the UAE were valued at $13.56 billion, higher than $9.79 billion in 2006-07.

Q. What was the growth rate of Indian and UAE investors in both countries, has it been affected due to unstable developments in India ?

A. India’s main area of priority for investment is the infrastructure sector where more than $500 billion are required over a period of five years. Apart from it, the other areas for investments are telecom, energy and agriculture. Major UAE companies like Emaar, Nakheel, ETA ASCON are investing in the sectors like real estate, hospitality and tourism. DP World is actively engaged in the development of six different ports on the vast coastline of India.

UAE side has also shown interest in agriculture and food processing, and in utilising India ‘s experience for developing the consumer sector in the UAE. The UAE is supporting development of small and medium enterprises (SME) in order to develop entrepreneurial spirit in its young generation. Given India’s strengths in the SME sector, this is an important area for Indian companies. The sectors of priority interest to the UAE are: industry, services and alternative energy.

Q. Which Indian companies are investing in the UAE?

A. Indian companies like L&T, Punj Lloyd, Hinduja Group, Pioneer Cement, Oberoi Group of Hotels, have bagged projects in the UAE. Following the emergence of Dubai as a major re-export centre, Indian companies have emerged as important investors in the free trade zones such as Jebel Ali FTZ, Sharjah Airport and Hamariya Free Zones and Abu Dhbai Industrial City. Again with Dubai positioning itself as a service centre, many Indian Service Providers and leading IT companies such as Infosys, Wipro, have opened their offices here.

Q. Who are the new investors from UAE to India and what is the growth rate in health tourism sector from UAE to India ?

A. Many joint ventures have been set up by the UAE-based companies in India in recent years including those by Emaar, Dubai Ports World, ETA Ascon. With regard to health tourism, the idea of travelling to India at low-cost but for world-class medical treatment, is gaining in popularity. India has some of the best hospitals and treatment centres in the world with the best facilities. Emiratis going on self-expenses are already utilising Indian health services, including the Ayurvedic establishments and Spas.

Q. How the historical ties keep both nations attached to each other and what major events are planned for 2009?

A. From the firm mercantile foundations of the past when dates, pearls, clothes and spices were the main items of trade, commercial ties between India and the UAE have in recent years, acquired a new level of substance. Indians were present in UAE long before the oil was discovered and have played a vital role in the development of the UAE. Along with commercial relations, political and defence relations are also on the upswing.

In 2008, the India-UAE relations got new impetus by the visit of External Affairs Minister, Pranab Mukherjee and Minister of Commerce and Industry, Kamal Nath to the UAE. In June 2008, the second India-UAE Joint Defence Cooperation Committee meeting took place in Abu Dhabi . The first ever India-UAE Joint Air Forces exercise took place in September 2008 at Al Dhafra base in Abu Dhabi.

As far as major events in 2009 are concerned, there are plans to organise an exclusive India Trade Fair in Abu Dhabi in December 2009 by India Trade Promotion Organisation (ITPO) in association with Abu Dhabi National Exhibitions Company (ADNEC). This fair will showcase India’s industrial products and will also provide space for India ‘s services sector including IT, health, education and financial services.

Q. What are the new strategies for strengthening cultural and traditional bonds between the two nations?

A. An exclusive Indian Film Festival was organised in November 2008 by the Embassy in association with Abu Dhabi Authority for Culture and Heritage (ADACH) where eight Indian films in different languages were screened along with short UAE documentaries.

The Crisis and India
The impact of the global crisis on India can broadly be divided into three different aspects: (1) the immediate direct impact on its financial sector; (2) an indirect impact on economic activities; and (3) potential long-term geopolitical implications. Fortunately, India, like most of the emerging economies, was lucky to avoid the first round of adverse affects because its banks were not overly exposed to subprime lending. Only one of the larger private sector banks, the ICICI, was partly exposed but it managed to counter the crisis through a strong balance sheet and timely government action. The banking sector as whole maintained a healthy balance sheet and, over the third quarter of 2008 –a nightmare for many big financial institutions around the world–, India’s banks reported encouraging results and witnessed an impressive jump in their profitability.

However, the indirect –or second-round– impact of the crisis has affected India quite badly. The liquidity squeeze in the global market following Lehman Brothers’ collapse had serious implications for India, as it not only led to massive outflows of Foreign Institutional Investment (FII) but also compelled Indian banks and companies to shift their credit demand from external sources to the domestic banking sector. It thereby exerted pressure on domestic market liquidity, thereby giving rise to a credit crunch. Coupled with the ensuing loss of confidence, this increased the risk aversion of Indian banks, hurting credit expansion in the domestic market.

Additionally, given the recession in the developed world, the demand for Indian exports in their major markets has almost collapsed. Merchandise exports shrank by more than 17% from October 2008 to May 2009. The decline in exports has accelerated, with a drop in May 2009 of 29.2% compared with May 2008. Likewise, exports of services are also facing a steep downturn. In the third quarter of 2008-09, growth in services exports declined to a mere 5.9%, compared with 34% in the same period a year back. Earnings from travel, transport, insurance and banking services have contracted, while the growth of software exports declined by more than 21 percentage points. The real shock came in the fourth quarter of 2008-09 when services exports contracted by 6.6% over the same period a year back.

The effect of the economic Crisis on the global Shipping industry

admin — Mon, 12 Oct 2009 11:59:16 +0000

Introduction:
World Economy crisis – effects on shippingworld: a serie of linked financial and economydownturns that are badly affecting theshipping market:-Lack of financing for new projects andnewbuilding. Results: contracts cancellations,g,delayed deliveries, higher costs – Low chartering rates – low market values:longer return on investment for new and oldships.- Lowered assets values: vessel being deliveredhtk t l th t’h lhave a current market value that’s much lessthan building contract value.Ettt d f- Excess tonnage: recent years trend of a veryspeculative ships resale and newbuildingmarket Peak of conventional ships deliveriesmarket. Peak of conventional ships deliverieswas expected in 2012. Excess of tonnage offer.

The impact of the shipping industry has been severe. Check out symbols EGLE or DRYS, large shipping companies. The declines in these stocks over the late September early October has been severe.

Shipping industry will ride the storm of financial crisis
Dubai: As the turbulence of recent weeks has rocked the previous complacency that had become embedded in the fabric of a western society that the righteous have already dubbed as irresponsible, the marine industry has begun to batten down in preparation for rough weather ahead.

While the consumer world fattened itself on the produce of its spending, shipping, too, enjoyed a smooth voyage while it supplied the needs of the spenders, automatically reaping the benefits bestowed by the boom. Such is the nature of this business.

(US) Financial Crisis in America

admin — Mon, 12 Oct 2009 11:46:19 +0000

We have a big financial crisis in America.
It’s not the weak housing market, rising unemployment, inflation, the collapse of Bear Stearns or Lehman Brothers, fallout from the subprime mortgage fiasco, declining home prices, stock market volatility or geopolitical unrest in the Middle East. Sure they have made front page news; however they’re not the real issue. They are symptoms of the “spending crisis” in America. They are symptoms of the real issue – that we are a country of financially illiterate people.

In the June 2008 issue of the Journal of Financial Planning, Elisabeth Donati, founder of Creative Wealth International said, “The statistics on financial well-being and young people are alarming. There’s a rise in college suicides because of credit card and student loan debt, young adults under 25 are now the fastest-growing age group filing bankruptcies, and more kids now see their parents file for bankruptcy than file for divorce. Less than 10 percent of our high school graduates take any courses on money management or wealth creation. Most of our country’s social problems stem from financial problems.”

Some questions of Financial Crisis in America:
CEO Q > How Did We Get Here?
Med Yones > The U.S. economy got here due to spending money we do not have and not producing enough to pay back the credit. It’s like luxury-living on credit cards, at some point the lenders want their money back. Not to forget that in a new open global economy, the U.S. does not have a competitive monopoly on knowledge, technology, manufacturing, services or marketing anymore. Therefore, the growth rate of U.S. production (cars, airplanes, electronics, IT …) is not keeping up with the growth rate of the debt. The housing bubble, subprime mortgage defaults, and associated financial crisis are all symptoms of the core problem of too much debt-based spending and over-extended leverage (debt-based investing). We cannot sustain debt-driven economic growth forever.

CEO Q > When Do You Think the Economy Will Recover?
Med Yones > The timing of the economic recovery depends on several factors, the most important are the effectiveness of the new economic policies in establishing trust in the U.S. economy (such as reducing budget and trade deficits, etc.), and the performance of corporate America (profits, job creation, etc.) . The markets need at least 2 consecutive quarters of business growth and profits, so that CEOs, investors and consumers will establish the confidence to invest again and reverse the negative cycle. However, we will not see the hugely inflated stocks and real estate prices anytime soon.

Thomas Jefferson wrote “If the American people ever allow private banks to control the issue of their money, first by inflation and then by deflation,the banks and corporations that will grow up around them (around the banks), will deprive the people of their property until their children will wake up homeless on the continent their fathers conquered.”
The first has occurred now the question is whether we will get the predicted result..
We can weather this though it will be rough and stormy. More in my next article including how to prepare for hard days coming over the next few years. With luck we may have some extra time. With prayer plus a wake up of the American people to action, we might find the Leaders and together the ways to clean up the “mess”.and work together to rebuild, revitalize America … and I mean the United States of America and NOT the North American Union as our Country!

If I use an installment loan to pay down my revolving credit card balances, Can it affect my credit score?

admin — Fri, 18 Sep 2009 07:31:31 +0000

Credit card debt consolidation comes as a great relief to all those who are plagued by multiple credit card debts. If new to credit card debt consolidation, all it does is to club up all your debts from multiple credit cards into single more manageable and easy to repay debt, which helps the credit card holder tremendously. Credit card debt consolidation has many benefits but the four listed below are typically more popular. If you are waiting to get rid of your multiple credit card debt, credit card debt consolidation might be the panacea for you. Here are the four great reasons.

To reduce the debt burden
This is the first and foremost reason of credit card debt consolidation. Too many credit cards, multiple credit card debts, varying repayment dates- all become too overwhelming , can rupture your financial well being and and impose a lot of burden. Credit card debt consolidation eases all this complexity and all your debts become one single entity and are now easier to repay.
The first, as we just mentioned, is because your current credit card or cards are costing you far too much in annual fee or APR.

Save on annual fee
If all your credit cards have some annual fee, these numbers add up quickly and can appear quite a sum. When you consolidate your credit card debt you also get rid of all these multiple annual fees and might end up saving a lot of money.

Prevent your credit ratings from getting worse
If your existing credit card debt repayment burden is causing too many repayment defaults and as a result your credit rating is getting quite a beating, credit card debt consolidation will bring welcome relief. It will salvage your credit history and prevent any further damage due to all those nagging credit cards.

There are incentives too
In fact, credit card debt consolidation can help you make some money up front. Believe it or not the competition in the credit card market is so fierce today that many credit card debt consolidation companies offer you discounts, and incentives to consolidate your credit card debt with them.

For example:
We are currently planning on purchasing a house and another car. I pulled my credit scores and am currently sitting at 665 671 and 687. I have about 20k in debt with 8k on my car and the remainder on revolving and installment accounts. Also a majority of my credit cards balances are pretty high. I recently got a new card and did a balance transfer from one card to a new 4.99% maxing out the new card but the new balance has not yet appeared online affecting my score. In three months I will be able to pay my credit card balances down to about 30% of their limits. I was wondering if I took out an installment loan and paid down my balances now to 30% then pay off the loan in three months would that be better or worse than waiting the 3 months and pay then? I’m looking for the best solution to preserve and increase my scores.
Expert answer:
Since you already have some installment loans it probably won’t help or not much. Keeping your revolving balances low might help some but raising your installment loans will hurt so it may be a wash. Avoid buying a house until you get out of debt then don’t buy a car for a long time if you can wait.

Knowledge about refinance mortgage

admin — Fri, 10 Jul 2009 14:05:01 +0000

Refinancing refers to the replacement of an existing debt obligation with a debt obligation bearing different terms. The most common consumer refinancing is for a home mortgage.

Refinancing a mortgage means paying off an existing loan and replacing it with a new one. There are many common reasons why homeowners refinance: the opportunity to obtain a lower interest rate; the chance to shorten the term of their mortgage; the desire to convert from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage, or vice versa; the opportunity to tap a home’s equity in order to finance a large purchase; and the desire to consolidate debt. Some of these motivations have both benefits and pitfalls. And because refinancing can cost between 3% and 6% of the loan’s principal and – like taking out the original mortgage – requires appraisal, title search and application fees, it’s important for a homeowner to determine whether his or her reason for refinancing offers true benefit.

Some questions about Mortgage Refinancing:
When Is A Good Time To For Mortgage Refinancing?
If you want to get a lower interest rate, you want to make sure rates are low at the time. If you’re refinancing for other reasons, such as getting money out, consolidating debt, or simply replacing an adjustable rate mortgage with a fixed loan, it all depends on your specific situation. Shop around and consult lenders for details, but be sure to let them know the reason why you want to refinance. It will help them help you make the right decision.
When Refinancing My Mortgage, Do I Have To Use My Original Lender?
No. You can refinance your loan with any lender who will give you a loan. However, your original lender might be able to work out a better rate just to keep your business. It also eliminates the need for a new property appraisal, title search, etc.
Is Mortgage Refinancing A Viable Solution To Consolidate My Debt?
Yes. Many people consolidate their debt via mortgage refinancing. However, you need to map everything out and make sure that a mortgage refinance is the best solution for consolidating your debt. Learn more about mortgage refinancing and debt consolidation loans.
What are the benefits of refinancing?
By refinancing your home, you can take out extra cash from the home’s equity to consolidate debt, pay off credit cards, buy a new car, or make home improvements. It’s a good opportunity to increase your home’s value – using equity from your home to make significant home improvements and therefore sell your home for more.

Queation about your car insurance when you lend it to your friends

admin — Sun, 05 Jul 2009 12:33:04 +0000

Case one: I have liability insurance. If I lend my car out to a friend, will my insurance pay in case of an accident?

Case two: If I lend my car to a friend and they have an accident that they caused and they have car insurance, will their insurance cover damages or liabilties, or will responsibilty be on my insurance?

Depends on the laws in your locality, but the general rule of thumb is that the insurance follows the vehicle and not the driver. That is most commonly the case. Typically, it goes like this: your insurance is the primary for liability/damages, if your liability limits are exhausted then the secondary insurance applied is that of your friend (if they have a valid policy), if both exhaust the liability limits then the third line is the insurance of the accident victim from their underinsured/uninsured motorist coverage (if they have any), and finally when all liability limits are exhausted then a judgment to pay damages will be handed down to either you, your friend, or both (again, this varies by locality).

Seems pretty impossible for that to happen, but it does a lot more than most people realize. Especially, when one cannot count on the fact that parties 2 (friend) and 3 (victim) even have insurance. The other scenario is that everybody is carrying the minimum required by law. For example let’s say your bodily injury/property damage liability had limits like this: $25,000 payable to one injured party/$50,000 payable to more than one injured party/$25,000 payable for property damage.

Okay, so your friend has a wreck and hits a new Mercedes Benz and totals it, guaranteed $25k property damage won’t be enough to cover property damage liability. And if they took out a telephone pole or damaged other property besides the car then that must be paid for too.

Say there are 2 people in that car and they are badly hurt (or really good actors/hire an aggressive attorney) and they sue for a $1,000,000 and win. That $50k limit is a drop in the bucket. Even with all 3 parties insured, you can see how quickly the money runs out.

So most all auto insurance Liability policies will cover a licensed driver who drives with your permission and conversely, your liability insurance generally will cover you if you drive a friend’s car as secondary insurance. Some car insurance policies will however state specifically that no other person is covered when driving your car or have other exclusions. It is always best to check your policy and even with your agent before allowing a friend to drive your car.

Tips of you get into buying foreclosed homes or homes at auction

admin — Wed, 01 Jul 2009 09:01:57 +0000

If you think that buying a foreclosure is a good deal, there are a few important facts you should know before you decide to purchase one. Learn why houses are foreclosed, and what you can expect if you decide to pursue a foreclosure.
Buying Foreclosures – Tips for Foreclosure Profits
Buying foreclosures has its drawbacks, but also offer big profits for buyers and investors. Not every foreclosure will be a great deal. How to protect yourself when buying foreclosures. As a seller, how to avoid foreclosure, and alternatives for dealing with lenders.

There are three ways to buy a home in foreclosure. You can buy a home from seller before the foreclosure is final, at the county courthouse steps during the auction or you can buy the home after foreclosure, directly from the bank. Foreclosure procedures vary from state to state.

Question about buying foreclosed homes or homes at auction:
Best Answer
I have bought and sold many foreclosures. I started in the 1980′s when many fewer people were doing it. The process varies from state to state. In both FL and NC the auctions are held on the courthouse steps, in the county seat. In FL, lets say the home is sold for $100K. If you don’t research the title, you may be purchasing a second mtg. You would then be responsible for the first mtg and the second. It is very important to do your homework. Then, you will need 5% down in the form of cash or a chashiers check made payable to the clerk of the court. The balance will be due after 10 days also in the form of cash or cashiers check. Not very often, the owner will be able to hold off the foreclosure process in that 10 day period by filing for chapter 7, 9, 11, or 13. When that happens, the courts will refund you your money but it takes about 4-6 weeks. In NC, you also need 5% down on the day of the auction but now the 10 day period after the sale is open to anyone that wants to still put in an “upset bid”. This process continues until a 10 day period goes by without anyone bidding again. Then the balance is due in the form of cash or cashiers check. All other mtg’s are wiped clean in NC. The process is different from state to state. I would suggest you go to the courthouse and lookup the upcoming sales (they are posted somewhere just ask) and watch the process. Then, contact and pay an attorney for advice on how it works in the state you are in. I should say I have all but left the foeclosure business because of the volitility of the market. Be very careful, do your homework, and make sure you know what you are buying.