Good advice about partner's bankruptcy

Bankrate.com's bankruptcy adviser has a timely article on the effect of your partner's bankruptcy.

Dear Bankruptcy Adviser,
I am going to marry someone who has filed bankruptcy. He gave up his house as part of the bankruptcy and came to live with me. His bankruptcy has since been discharged. My house is all paid for, and I have no debts other than a car loan, which I can easily cover. I have an excellent credit rating and have never gotten into difficulties financially. Will there be any problems for me once we are married?

Excellent question, I think.  Here's more,

It's smart to be concerned that your positive financial credit history could be affected by his negative one. I would suggest not putting him on any of your accounts for the foreseeable future. You might want to open up a joint checking account, but try to keep your finances separate until he has recovered his credit rating.

At the end of the day, the goal is to rehabilitate your partner's credit without dragging you down into the muck an mire.

Read more: Make Sure Fiances Bankruptcy Wont Affect You

For your next title order or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Stephen's Title Agency, LLC

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-227-4724 - Fax 973-556-1628

E-mail Stephenstitle AT comcast.net - www.stephenstitle.com

Buying a property at a foreclosure auction – are you tough enough?

Bankrate.com has a wonderful article, “Hassles of buying foreclosures at auction,” written by Clark Palmer.

We get calls from time to time from prospective foreclosure property bidders who just can’t pass up a bargain. The article will set you straight.

Highlights:

• The process has plenty of snags to snare the unwary foreclosure buyer.
• The condition of a foreclosed home is a mystery; it could be plumbing-free.
• Consider the time and expense of repairing a handyman's special.

“

An expert's single word of advice for folks who dream of buying a foreclosed house at auction: Don't.”

"’I caution anyone who isn't in the (real estate) business: Buying (at auction) can be one of the worst decisions you'll ever make," says Jim Hamilton, a Realtor in Los Gatos, Calif. Another bit of counsel from Hamilton: If you want to buy foreclosures at auction, plan on making that your full-time job.”

If you consider that “buying a house is like navigating an obstacle course, then buying a foreclosure is like crossing a minefield.”

Traps for the unwary.

First of all, you have to pay cash.

“And you're paying for all of the loans, back interest, taxes and attorney's fees on the property. So if the house is worth $300,000, the opening bid could actually be $400,000. By the time you outbid everyone, you could be paying a lot more than that.”

If the homeowner files bankruptcy on the day of the auction, or, in New Jersey, within 10 days of the sale, you won’t get your deed and will have to wait for return of your deposit.

A perfect house for stargazers. Even if you work out those issues, you don't know the condition of the property.

People could still be living there. The house could be gutted -- missing copper and plumbing fixtures, or even roofless, Weintraub says.

Finally, “the bank isn't going to tell you all that much about the house.” Inspect on your own if you can.

And, if you find them, who will fix the problems?

Ask yourself if you have the money, time, patience and support from the people around you to repair any problems with the house. "You need to be realistic about those questions. If the answers to any of those questions is 'no,' this probably isn't the house you're looking for," Hamilton says.

Read the full article.

For your next title order or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Stephen's Title Agency, LLC

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-227-4724 - Fax 973-556-1628

E-mail Stephenstitle AT comcast.net - www.stephenstitle.com

From Bankrate.com - 2 steps to finding credit after bankruptcy

Justin Harelik, a L.A. attorney writes about bankruptcy for Bankrate.com. A reader posed this question about life after bankruptcy-

Dear Bankruptcy Adviser,
I have had really good credit for the past 20 years and recently went through a bankruptcy and am wondering how to "start over." I did keep my two cars and my house, but they still show up as discharged in a bankruptcy on my credit report and, according to my lender, that will continue for three to six months after the bankruptcy is discharged. How do I explain that to potential creditors?
-- Terri

The answer-

Dear Terri,
"As you begin the credit repair process, you will need to explain yourself to potential lenders over and over and over again. Yes, it will get to a point where you just might give up. But you cannot!"

Lenders today are quick to say "no" to anything out of the ordinary. Credit dings, especially ones as big as a bankruptcy, give the lender all the incentive needed to reject you for a loan or financing. You must remember that you can get credit again, but it will take some time. Here's a two-step process to follow.

Here are the two steps:

Tell your story. Research shows that the vast majority, more than 80 percent, of individuals who file bankruptcy have dealt with an illness, a divorce or a period of unemployment. You need to prepare a 30- to 40-second sound bite, explaining why you filed for bankruptcy. Even the most sympathetic loan officer or underwriter will not want to hear you tell your life story. Be concise, but thorough.

Interview your lenders. You don't want unnecessary credit inquiries showing up on your credit report after a bankruptcy. You will want to know whether you have the option of a loan after bankruptcy before you even fill out an application.

Bankruptcy does not mean your life has come to an end. It may seem that way, but never, ever, let them get you down.

Read the full article from Bankrate.com.

If you have questions about what you see here,
contact Stephen M. Flatow
Stephen's Title Agency, LLC
StephensTitle@comcast.net
973-556-1628 Fax