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Monthly Archives: March 2018

Mortgage Finance

Mortgage – Definition

It is a legal agreement that conveys the conditional right of ownership of an asset or property by its owner (the mortgagor) to a lender (the mortgagee) as security for a loan with the condition that the conveyance of the title becomes void upon the repayment of the debt.

Are Mortgages Legally Enforceable?

Yes, they are. In order to be legally enforceable, the mortgage must be for a defined period, and the mortgagor must have the right of redemption on payment of the debt or on before the end of that term.

Why is Mortgage Finance Common?

Here is a list of why it is the most common type of debt instruments:

>> They have a lower rate of interest (because the loan is secured);

>> They are straight forward and have standard procedures; and

>> They have a reasonably long repayment period.

What is a Security Document?

The document by which the agreement is effected is called a “Mortgage Bill of Sale” or simply just a “mortgage.”

What are the Common Mortgage Finance Types?

Real Estate Mortgage – Virtually any legally owned property can be mortgaged, although real property (land and buildings) are the most common.

Chattel Mortgage – When personal property (appliances, cars, jewellery, etc.) is mortgaged, it is called a chattel mortgage.

Second Mortgage – There are situations where it is possible to obtain finance when there is already an existing mortgage associated with the property. It is not unusual for real estate laws to require that the holder of the first mortgage agree to the creation of a second mortgage.

Who has the Right of Possession?

For real property, vehicles, and equipment, etc., the right of possession and use of the mortgaged item normally remains with the mortgagor. But, the mortgagee has the right to take possession at any time to protect his/her security interest.

What Happens in the Event of a Default?

In the event of a default, the mortgagee can:

>> Appoint a receiver to manage the property (if it is a business property), or

>> Obtain a foreclosure for a court to take possession and sell the property.

Identify Grant Writer Red Flags

A quick general way to determine if a website is likely to be from a grant scammer are in the words and text used. If the website contains any of the following phrases it is highly likely it is from a grant scamming source.

• Free Government Money
• Pre-approved for grant funding
• Money for all kinds of businesses and purposes.
• Fix-up your house
• Buy property

Grant scammers are more likely to be sales people only rather than a certified grant writer. They are more likely to make the first contact to a first time client by phone. It is common for professional grant writers to place advertisements and wait for potential clients to contact them. Scammers are more aggressive and will often make the initial contact to the potential client.

Scammers are likely to charge an inflated fee for their services. Some scammers will continue to add charges for extraneous reasons. If the grant writer asks for additional fees to pay off your taxes, parking tickets, or other personal items, they are almost certain a grant scammer.

The fees to write a grant and research for funding opportunities should be based on an hourly rate, or a flat fee which has some basis in an hourly rate. Most grants proposal or applications require about 50 hours of time or less to complete.

Scammers are not members of a professional association. Professional associations will monitor their members and will discipline or discontinue the membership of anyone not following the professional ethics and standards. Check out the suspected scammer’s name with a professional association.

Some Ways to Save Money

You will be surprised to see simple changes to your lifestyle make a big difference to your finances. Well, here is the plan;

  • Eat at home instead of eating out. If you buy lunch every day, start taking it from home.
  • Make your own coffee instead of buying Starbucks daily.
  • Buy the groceries in bulk as this will help you save money. Do not indulge in impulsive shopping. Carry a list while shopping for groceries. Shop once a week and never when you are hungry.
  • Save electricity by switching off lights, fans and TV.
  • Restrict your credit card use.
  • Rent a movie instead of going to the theater.
  • Discounts, rebates, coupons. Use them all and save plenty of money.
  • Use carpool and try walking to the office or the grocery chain if it is within two blocks from where you stay. You will save on money and gain in health.
  • Consolidate your debt and pay it off as early as possible. You can also transfer the debt to a new credit card. Interest free balance transfers are a good way to get rid of debt effectively.
  • Get rid of expensive membership fees. If you are paying for the gym that you hardly use, stop. Go for a walk in the park instead. You may also be able to make new friends.
  • Try and do things yourself. Wash your car, manicure your lawn and paint the house. You not just save money but also get fit as you are getting rid of your sedentary lifestyle.

Handle Finances With Care

Financial advisors suggest all individuals follow these six basic key principles for financial planning.

• Analyse your current financial status: To be able to plan for future you should first be very confident about your current financial position. Make a checklist of all the assets and liabilities and your income and expenditure. Having this information at hand, you would be in a clear position to understand how you can achieve your financial goals. Your total financial worth would help you to determine the ways to accomplish your set goals, which include paying for your children’s education, buying a new property or being ready for any financial emergency like the loss of a job.

• Chalk out your financial goals: In order to accumulate wealth, a lot of planning has to be done in order to achieve the desired goals. Setting goals would give you an urge to go ahead to achieve it. Your list of financial goals should be very specific, which would show that they are crystal clear in your mind.

• Plan for alternatives: You cannot expect your planning to go as per your wish, so you should always have a plan B at hand. After listing down your goals you plan for alternatives as well.

• Analyse the alternative options: You should ponder upon the feasibility of the alternative ways taking into account your social, personal and economic condition at present. The liquidity of your assets also matters in this regard.

• Creation and execution of your financial plan of action: Once you have planned about your alternative options and have analysed its feasibility, it is time for you to put these plans into action.