Loan Saver Debt Consolidation Blog

Six months ago it was much easier for a self employed person to get a low doc loan, but try getting one today and you will find it much more difficult. The following is a basic description behind the logic that has made low doc loans hard for Melbourne mortgage brokers or any mortgage broker in Australia to place.

As most people would have heard to some degree in the last year or so, we have been going through a credit crisis in Australia as well as the rest of the world. Similar to The USA, our banks and other lenders for the past few years have been very flexible on their credit criterea that decides elligibility for a loan. For a lender it is all about the risk involved in lending money; this is also what dictates the rate of interest you will be charged. For the past number of years lending criteria has been quite relaxed, where banks have been offering loans based on relaxed credit criteria.

However, this bubble has now burst. Alot of people in the USA have struggled to repay their loans and the banks and other lenders have lost money as a result. The overflow has carried on the Australia resulting in much tighter lending policies. This in effect has made Lenders more cautious who they will lend money to over the recent months.

As a mortgage broker in Melbourne, I have realised that the Low Doc or self employed category of mortgages has become one of the more difficult to place. in difficult economic times like we seem to be entering, the likelyhood of small to medium businesses not surviving also increases. Therefore, this category of loan is seen as one of the more risky for the lending institutions and the inverstors who provide the funds.

Where there is a need, a lender will provide a product.  It simply means the product will become increasingly more expensive, and the criteria to obtain a low doc loan will be much more restruictive. By doing this Lenders and Investors also limit the overall risk with lending low doc funds.

There are however ways to improve your chance of getting approval for a low doc loan. Keeping thorough accounting records is the first tep to proving you have a solid business that the banks will consider safe enough to lend to. Other factors they consider is your annual turnover, fixed costs and the length of time you have been in business for.

Other loan types similarly affected are bad credit mortages and other bad credit loans. Any loan where the risk of default is higher than a standard loan.

If you need this a loan like this, talk to Loan Saver Network or your mortgage broker.

If you have any opinions on this post please do not hesitate to leave a comment here.

If you need Help when Behind on Mortgage Payment you are not alone! Statistics show that even though we are behind on Mortgage Arrears rate compared to the United States, people behind on Mortgage has doubled in the past 3 years, with the greatest number of Arrears being in the NSW region. With those who have borrowed around 2003 boom being the most at risk.

The rise in Mortgage Arrears or being behind on your mortgage has increased with the lowering of Credit standards and policies, with higher LVR ratios and the ability to borrow more for your $$$ being a possible factor.

Contact Us if you are looking for Help when Behind on Mortgage Payment or Simply Apply for a Loan now.

If there is one thing that everyone across the world unanimously strives for is Peace of Mind. Whatever we do in our lives, work, start a business, start a family, ultimately it all boils down to one question: Are we really happy or can we really say our lives are stress free? Well, the unfortunate truth for many of us today is that the answer is a sad NO.

One of the biggest reasons for unrest is unfortunately tax debt. Today more and more people are getting into the tax debt trap which has led to the local taxation offices breathing down their necks causing severe panic and stress. So much so that the tax authorities are resorting to new measures and recruiting more resources for recouping these debts. Some of these measures include making their telephone staff to ring you after hours or recruiting external debt collection companies to knock on your door. Enough to make you lose your sleep.

Click here for more information on Tax Debt Loans

Debt Negotiation is the art of negotiating loans and debts to an a lower than original figure. Debt Negotiation is required in circumstances where there is insufficient equity to consolidate debt into a mortgage, or even to reduce the level of debt (when consolidating) to an acceptable repayment. Debt Negotiation and Debt Consolidation work closely together at Loan saver Network. Below is a true life example of how Debt Negotiation and Debt Consolidation loans can work hand in hand to give a very effective result.

John and Teresa had been through a string of business and investment disasters, that had left them in a situation where they had $135,000 in credit cards and personal loans. They werte both on very good incomes but they were struggling to get make their home repayments and had fallen behind on most of the credit cards and other loans. They were being faced with selling thier home and starting again, but they would have still been left with a sizeable number of debts. They were paying only $1100 on their home loan, but $2600 each month on their other debts totalling $3700 pcm. Loan Saver Network took a look at their situation and effected a Debt Consolidation Refinance and Debt Negotiation. We found their properties was valued at $240,000 with only a $130,000 loan against the property. The lending policies at the time only allowed in their circumstance a loan up to $216,000 giving them $86,000 available to consolidate all of their debts. The outstading debts required a debt negotiation from $135,000 to $86,000, a reduction of $49,000.

The end result is that we used Debt Negotiation to negotiate the debts, and refinanced the home loan with a Debt Consolidation loan. Their final loan repayment on $216,000 is $1710 per month. We saved them $49,000 on their loans, and $1990 each month on their repayments.

See Debt Consolidation for more information or Contact Us for more information.

David was a fully employed office worker in his mid-thirties on a salary package which comfortably supported his day to day expenses and that of his family including his month mortage payments on the family’s home, car loans and minimum payments on his credit cards. Unexpectedly he developed a gall bladder problem which caused him to lose control of his bowels. Because of the nature of his condition, he was forced to take six months off work for treatment until he was fully recovered. During this six month period with no income coming in, the family was forced to pay for their daily living expenses with credit cards. David was not in a position to pay his loans and defaulted on his mortgage and car loans. His loans looked like the following:- Mortgage: $202,000 at $1550pcmCredit Card: $22,000 at $660pcm. Also in default with debt agreement to pay $10,000 to close account.Car Loan 1: $13,000 at $390pcm (3 months behind)

Car Loan 2: $29,000 at $900pcm (3 months behind)

The critical things to consider in this situation were:

• Bank was ready to foreclose on his home and both car loans
• Credit card company was willing to take 10k to close the account.- Home Value: $330,000
• Total Loans: $ 254,000
• Current repayments: $3500 Upon his recovery, David assessed his situation and realised that it was impossible for him to try and pay off all his defaulted loan repayments, credit cards as well as interest and penalities etc associated with each of his loans. After being refused loans from a number of possible lenders and being faced with the possibilty of losing his family home, David was advised by a close friend to approach a debt consolidation specialist. Having looked at David’s loan particulars and record, the debt consolidation expert worked out the following deal for him:

Refinance all Davids loans into one facility.
Loan: $254,000

Repayment: $2438

David reduced his outgoings by nearly $1000 per month, but best of all now has all the lenders off his back. He is now able to put the past in the past and move forward.

Debt Consolidation Loans are saving various families like David’s from losing everything they have worked hard for. It is hence imerative that if you are in a similar situation to know how a Debt Consolidation Loan could help you. Consult a Debt Consolidation specialist to get expert guidance on consolidating all your debts into one single debt for your future financial well being.

Contact Us for more information on Debt consolidation - The Facts