What Makes Bank Owned Foreclosures One of the Most Favored Real Estate Investments?

In the current times, the real estate market is seeing some interesting new trends with home buyers favoring bank owned foreclosures over standard properties on sale. One of the major reasons for this shift is the plummeting values of foreclosed properties which are hovering around nearly half of their actual market prices. Other aspects that have made bank owned foreclosures highly favorable amongst home buyers is their wide range of housing options, modest asking prices, safe transaction procedure, easy loan facilities and higher chances of negotiation.

Bank owned foreclosures are also known as REO properties and have gradually become one of the best investment options in today’s real estate market. At present these properties are mostly attracting first time home buyers who have been encouraged by their heavy discounts as well as several incentives for buyers. As foreclosures have swept throughout the country it has resulted in a large number of high end houses being reclaimed by banks over the past few months including top residential communities of Florida, Miami, Arizona and California. As the banks are very keen on recovering their losses they are putting up these houses at heavy discounts in order to attract buyers and clean their inventories.

Another major reason for the popularity of REO properties is the availability of a wide range of housing options under these foreclosures. Home buyers can take their pick from a multitude of modestly priced small homes and condominiums, to three bedroom family apartments and penthouses. The fact that these properties are located in some of the prime residential communities in the country has made them a very lucrative investment on the whole.

When it comes to bank owned foreclosures, they make for a very safe and sound real estate investment as all the properties reclaimed by the banks are cleared of liens and back taxes before being put in the market for sale. The buying process is also very transparent and ensures the home buyers a risk free investment. While most banks sell their foreclosed properties through real estate agents some of them also put them out for sale through auctions which are also a great platform to find and bid for some great bargain deals.

Apart from offering heavy rebates on REO properties, these banks are also helping home buyers in picking up suitable foreclosed homes through easily available bank loans. The housing loans have special schemes for buyers of foreclosed properties and are being floated at very low interest rates. Moreover the loans are also flexible which will help the buyers in making any modifications in the repayment plan in future. With the great price and housing features being offered by bank owned foreclosures it is no wonder that they have become one of the most favored real estate ventures in the present times.


Why Auto Insurance is Important

Many of us need automobiles to get from place to place, so we all know how useful they can be while also recognizing the fact that driving an automobile is dangerous. You might be careful in obeying traffic laws, but you never know when someone else will not and be the cause of an accident that involves you. Then again, mistakes do happen and you never know when something may occur that you will be at fault. These are reasons why it is important to have auto insurance.

However, auto insurance covers much more than just collisions. There are times when certain acts of nature may occur such as a hail storm or a falling tree that may cause damage to an automobile and it would cost too much money out of pocket to fix these things. The insurance will sometimes charge a small deductible depending on the type of accident that has occurred, but the cost is minimal compared to what it would cost to fix an automobile on your own.

A world without auto insurance

Just imagine what a world without auto insurance would be like. First of all, people who are at fault in accidents would be paying money to the accident victims out of their wages and other income for years to come. Those who have been injured in an accident at no fault of their own are entitled to have their medical bills, vehicle repairs, and other expenses paid by the insurance of the person who was at fault. If the person at fault does not have insurance, then they do have to pay those expenses out of their pocket. Many people have been known to lose major assets because they did not pay the minimal cost of having auto insurance to prevent such losses.

Then there are those natural disasters that we have absolutely no control over. There have been many overturned trees from high winds that have decided to fall the direction of someone’s brand new car. There have also been the occasional hail storms throwing golf ball-sized hail out of the sky at the many automobiles below. This can cause thousands of dollars in damage that goes beyond the scope of what most individuals can afford straight out of their pocket.

So why is it important?

It is probably already quite obvious to see why having auto insurance is very important. If not, then look at it this way:

o You are protecting your automobile, one of the largest investments you make in your life.

o You are able to pay for medical bills if an accident occurs.

o You don’t have to feel the biggest part of an accident-related lawsuit.

o Protects assets that you’ve worked hard for from being lost due to a lawsuit.

o Protects you from those motorists that may not have insurance of their own.

o Not only pays for accidents and weather-related incidents, but also pays for vandalism and theft.

o You know you are protected every single time you hit the road.

However, this brings about another point. It is very important that you review your auto insurance policy and make sure you understand all of it since every policy is different. Depending on a person’s financial situation, they may choose a certain type of coverage over another for a variety of reasons. This can be because they want to cut premium costs because they simply cannot afford higher coverage or another reason that they find they don’t need extensive coverage. These things should be considered carefully because you never know when one accident may be the event that causes you to lose many of your assets in order to satisfy the cost of a lawsuit settlement.


Easy Tips To Lower Your Auto Insurance

We all have to have auto insurance and in most states it is not only a necessity but it’s the law. The truth is, being involved in a traffic accident is bad enough but being involved in one and not having auto insurance could break the bank also. Having insurance on your vehicle however should also not be a reason for breaking the bank. Here are some easy tips that you could consider that may help in getting you the best rates on your auto insurance.

Change Insurance Carriers

Switching insurance companies is a good choice if you have outstanding credit. However, if your credit is less than desirable, you probably should stay with your current insurance provider. The fact is consumers who have bad credit can pay twenty percent to fifty percent more for their premiums than others who have good credit.

If you are considering switching your auto insurance from one carrier to another, you should carefully analyze the other companies. Talk to your family members or friends about their experiences with other companies that your considering. Ask them things such as did they ever make a claim and how did that process go for them.

Do your due diligence on your prospective companies by accessing information gathered on them through the Better Business Bureau. You can also contact your state to check on any complaints that may have been files against insurance companies. If you find that a company has a grocery list of issues it would be best to pass and to continue your search. You do not need to hassle with a difficult company when it comes to filing a claim with them.

Use Discounts to Your Advantage

Switching auto insurance providers could save you hundreds, but it is also important to know the advantages of staying with your current company. Your insurance company, for instance, may give you a loyalty discount if you have been with them a year or more. They may also offer you discounts for having a good driving record, for operating your vehicle with certain safety equipment, being a senior citizen and for completing a course for safe driving to name a few.

Consider Raising Your Deductible

When you raise your deductible you will have lower premiums to pay. However do not opt for this if you think you will have trouble paying the deductible should a claim arise. You could set aside some money for this higher deductible in a savings account as long as you don’t use it for something else. Once you determine that you can handle the higher deductible then it would be a safe option to use in order for you to save some money on your premiums.

Consider Dropping Some Coverage

If your current vehicle you are driving has higher than average miles on it or is older than 5 years old, then you could consider changing your comprehensive and collision coverage and opting for liability insurance coverage only. You could be paying more on your premiums than what the current worth of your vehicle is. It is also important to consider that if your vehicle is stolen you will not get anything from your insurance provider for it. You will also have to pay one hundred percent of any type of repairs if your involved in an accident and it was shown you were at fault. Having cheaper auto insurance is better for your long-term savings; however do not underestimate the risks involved and how this may hurt you also.


Smart Investing

Investment is a financial term, broadly implying the channelization of money to earn profit. With shaky economies, some irrational business decisions at macro level, and uncertain job markets, investing well slips into the block of present day life’s necessities. You can invest in one or more of the key instruments given below. Please note that each channel has some advantages and disadvantages. Therefore, it’s better to go for a wide spread and invest in diversified tools. In addition, make sure you read and fully understand all the investment documents & the associated legalities. Here are your main options:

  • Real Estate: One of the high yield investment methods, property investment is easy to understand and make. Because of this, it is most popular among people of all economic levels. As a standard, land yields more returns than a built-up property. Real estate investment usually requires a huge capital and a relatively long timeframe for yielding profit. But, whatever time it takes, the returns are almost assured and are multiplied. Just make sure the documents are all genuine and legally correct.
  • Stocks: With the pitching of employee class into stock investing, it is one of the fastest growing sectors. Futures, options, and equities are the key category here. As a standard, you buy stocks when it’s bearish (at a low rate), but is likely to go bullish (high rate) in the near or mid-term. You sell and reap profit when those shares go bullish. However, the market may or may not behave the way we expect. In fact, stock market sentiments are said to be highly irrational and this makes it a risky bet. Still, since the capital requirement is low, shares are popular. Low to medium level investment is ideal for salaried people as well as the business class. Proper understanding or professional help and constant tracking of the market can be helpful in wise investment or disinvestment to reap profits or to avoid/minimize losses. The timing of transaction is very important here as the stock prices move through the stock exchange timing.
  • Insurance: Life insurance and medical & accidental insurance are yet another way of ‘safe’ investing. Actually, they are tools for preventing financial losses, or for providing the saved money at the most needed times. If not offered by the employer, then one must have these insurances done to financially cover up for the health related exigencies. People, who cannot afford financial stakes elsewhere, should go for insurance policies for retirement, children’s education, etc.
  • Gold: This has always been the safest of ‘long term’ investment tool. It almost never sinks your investment. At the most, you won’t get profit, but you may not incur loss also. Interestingly, largely, the economic slowdown triggered the rise of gold prices. People from all over the world are investing in gold and expect moderate profit in the next few years down the line. Gold is a safe and affordable investment even for the economically weak people.
  • Mutual Funds: These are more like hedged investment. Several investors’ money is used to buy different securities, forming a portfolio. The holdings are so chosen that the losses are none or only minimal. Accordingly, the returns are also moderate only. It is better to go for professionally managed fund rather than building your own portfolio without an in-depth understanding of stocks fluctuations. It is better not to invest too much money in mutual funds, as the scope of returns drops in any economic or financial disturbance. The other tools are sturdier than these funds.