money sectionmoney sectionDebtors who fail to pay certain debts, such as income tax, or those who have a legal judgment against them risk losing their property to repay the debt. An attachable asset is personal or real property one owns that is subject to attachment. The court can take into custody these items owned by a debtor, on behalf of the creditor.
When you arrange a short sale, you gain permission from your lender to sell your home for an amount less than the balance of your mortgage. Your lender cannot force you to liquidate your assets prior to arranging a short sale, but neither can you force your lender to agree to a short sale.
Investors purchase many types of assets, from stocks and real estate, to collectibles and precious metals, hoping to sell those assets for a profit in the future. If the investor cannot find anyone to buy his asset when he wants to sell it, he might have difficulty converting the asset to cash. Liquidity is a term that describes how readily an asset can be purchased or sold.
In financial terminology, assets are items that have value. They are the opposite of debts, which signify money that is owed. When debts start to outweigh assets or become more than a business or individual can afford to repay, it may be necessary to liquidate assets in order to remain financially stable.
Consumers and businesses often invest money in assets such as real estate, stocks, bonds and physical goods that leave little cash left over to pay debts. Liquidation is the process of selling assets to access cash. The term liquidation is closely tied to bankruptcy because filing for bankruptcy under Chapter 7 of the Bankruptcy Code calls for liquidating assets to pay back creditors.
A short sale is an agreement between a borrower and a lender allowing a borrower to sell a home short of his mortgage balance to the bank. In certain cases, a lender can file a deficiency judgment, allowing seizure of borrower assets.
Short selling, or shorting, is a profitable trading strategy in bear markets. Essentially, you borrow a stock that you do not own to sell at its current market price, then buy it back later at a lower price, and pocket the difference. A potential hazard when shorting stocks is that since you borrowed the stock, you owe any dividend payment to the person from whom you borrowed the stock, which can significantly reduce your return. And the longer it takes for the stock you sold short to fall to your target price, the more dividend payment you owe. With some…
A short sale occurs when a mortgage company allows a homeowner to sell his home for less than the loan payoff amount. Private Mortgage Insurance or PMI is implemented to protect a lender in the event the borrower defaults on the home loan. The Homeowner's Protection Policy is a federal law that requires lenders to disclose information regarding PMI. Any loan that is associated with Fannie Mae and Freddie Mac may have PMI added if requirements are not met. There are ways to avoid paying PMI on a short sale.
Short sales are a viable alternative for many homeowners who want to avoid foreclosure For a homeowner who wants to stay in his home, a short sale is not an option. If you are 90 days or more behind on your mortgage and you want to avoid foreclosure, there are options available to you to stop foreclosure and avoid a short sale, making it possible to stay in your home.
There are a number of ways that a homeowner can avoid the need to short sell her house. These include efforts to remain in the home and to continue to pay the mortgage bill, as well as efforts to increase the market value of the home.
Gregory Salsbury, in his 2010 book "Retirementology," says too many Americans are paralyzed by the amount they supposedly need to save for retirement, and their financial planning suffers as a result. Salsbury asserts that no one really knows what that magic number actually is. Diligent effort and consistent attention to retirement plan contributions combined with sound financial habits overall can go a long way to ensure your retirement income is stable and you will not come up short.
Homeowners who can no longer make their mortgage payments often enter the foreclosure process. Foreclosures result in loss of the home, a negative 10-year public record on the borrower's credit report and a possible liability on any loss incurred to the mortgage company. As an alternative to foreclosure, most lenders allow short sales of homes. A short sale involves selling the property at a loss with the lender's approval. Some lenders require the borrower-in-default to take some liability of the difference between the loan amount and the sale amount. Short sales occur if the expected proceeds from the sale are…
