In Rough Times, Cash For Structured Settlements Can Be A Life Saver

Image via WikipediaWe all have times in our lives where we experience hard economic problems. It can be loss of a job, your home in foreclosure, medical bills or any need for cash. You may have already borrowed from your credit cards, family and friends. You may have no other place to turn. If you are receiving structured settlement payments and they just aren't enough to cover your expenses, there still is a way out.

What Is a Structured Settlement?

A structured settlement is an agreement where you are compensated, in monthly payments, for a release of your claim of liability. It usually is the result of a personal injury lawsuit.

These payments are initiated through the purchase of an annuity from a life insurance company. The insurance company pays the settlement over period of installments. This can be monthly, yearly or other time frame.

How Can Selling Your Structured Settlement Help?

Selling your structured settlement payments can help you get the cash you need when your financial emergency occurs. A company will give you a lump sum for your settlement payments. The company will continue to receive your distribution and you will walk away with your money. No more waiting for that monthly check to come in. You can have the cash you need to fulfill your financial need. Even if there is no problem, you can use the cash to buy a home or start a business.

Issues To Watch Out For When Contacting A Company.

When you are ready to make the move of selling your structured settlement, the first thing you should do is contact a financial adviser. Many states have regulations and rules governing the sale of structured settlements. You may even have to go before a judge who will rule on your sale. Many companies are in the business of structured settlement purchasing. Many do a fine job for their clients, yet their are some that do not. There are companies like stone street capitol that could of done a better job.

Be sure to thoroughly check out the reputation of the company you are using. Even call several companies to get a feel of their professionalism and interest. Seeking the offers of a few companies, will help you to be sure your getting the maximum amount for your structured settlement. 

Prosper.com Now Offering IRAs and Other Tax Deferred Accounts

Prosper.com is the website that believes in the power of peer-to-peer lending, cutting out the middleman. Prosper.com puts together creditworthy borrowers who want to borrow money with lenders seeking consistent and predictable high-yield returns. At Prosper.com you can expect seasoned returns of up to 10.46%. Borrowers can apply for unsecured loans at rates starting at 6.59%.

With 1,250,000 members and over $311,000,000 in personal loans funded, Prosper.com has attracted much attention. The loan process and forms are all done online. Easy and quick for the borrower. The lenders see a high rate of return and the advantage of diversifying over several loans. There is relatively low risk associated with a peer to peer loan because lenders invest a small amount (as low as $25) in many different loans, there’s always some risk but you get to spread it around many loans.

Now, to make investing even sweeter at Prosper.com they are offering Traditional, Roth, SEP and 401(k) rollovers in a Prosper IRA. The minimum investment requirement is $5,000. The federal deadline to fund a Prosper.com IRA is Tuesday, April 17, 2012.

Benefits of a Prosper IRA are:

• Tax advantages: returns grow faster tax-deferred with the Traditional IRA, and tax-free with a Roth IRA.
• No fees: all fees for accounts with balances of at least $10,000 are paid by Prosper.com.
• Broad diversification: a portfolio of consumer loans helps reduce an investor's portfolio volatility.
• Easy reinvestment: Prosper.com’s Automated Quick Invest tool reinvests earnings so that returns compound over time.
• Personalized service: To ensure the best service, Prosper.com has partnered with Sterling Trust3, the self-directed IRA custodian with over $10 billion under custodial and retirement administration.

For more information, Prosper.com is hosting a free webinar on Thursday, March 15 at 7 p.m. ET / 4 p.m. PT. Prosper.com’s Chief Investment Officer, Joseph Toms, and Mike Kurka, Institutional Sales Executive at Sterling Trust will lead the conversation: “Boost Your Retirement Savings: The Advantages of a Self-Directed IRA for Your Peer-to-Peer Lending Investment.” Register here.

Personal loans at rates as low as 6.59% APR. No hidden fees. No pre-payment penalties

How Long Does A Foreclosure Remain On My Credit Report?

Foreclosure auction signs (Photo credit: niallkennedy)
Foreclosures are one of the worst things any family can go through. They not only turn your life upside down, they damage your credit for years to come. But as the years pass and by following the guidelines from the FHA, Fannie Mae, and Freddie Mac, you can become a homeowner again.

All the major government entities that have influence over the foreclosure rules in the U.S. wield a lot of power over banks. Though they are not direct lenders what they say is what the banks and credit lenders must do.

Many people don't even realize that the guidelines used in making their mortgage have been set down by the FHA, Fannie Mae, and Freddie Mac.

Here are the guidelines for your ability to apply for a new mortgage after foreclosure:

FHA Guidelines

Foreclosure.

• 3-year wait. 
• Reduced wait if borrower has re-established good credit and can show extenuating circumstances.

Short Sale

• No wait if not in default. 
• 3-year wait if in default at closing of short sale.
• Reduced wait if borrower has re-established good credit and can show extenuating circumstances.
• Deed in lieu of foreclosure
• Same as FHA’s foreclosure policy.

Bankruptcy

Chapter 7 (liquidation):

• 2-year wait from the discharge date of the bankruptcy.
• 1-2 year wait if borrower can show extenuating circumstances.

Chapter 13 (repayment plan):

• 1-year wait from the discharge date of the bankruptcy.Fannie Mae

Fannie Mae Guidelines

Foreclosure

• 7-year wait from the completed foreclosure sale date.
• 3-year wait if borrower can show extenuating circumstances (additional underwriting requirements apply for 4 years after 3-year waiting period).
• 7-year wait for a second home, investment opportunity, or cash-out refinancing.

Short Sale

• 2-year wait if the borrower puts 20% or more down.
• 4-year wait if the borrower puts 10-20% down.
• 7-year wait if the borrower puts less than 10% down.
• 2-year wait time if borrower can show extenuating circumstances and puts 10% or more down.

Deed in lieu of foreclosure

• Same as Fannie’s short sale policy.

Bankruptcy

Chapter 7 or Chapter 11 (reorganization, usually involving corporations or partnerships):

• 4-year wait from the discharge or dismissal date of the bankruptcy.
• 2-year wait from the discharge or dismissal date may be accepted if borrower can show extenuating circumstances.

Chapter 13:

• 2-year wait from the discharge date or 4-year wait from the dismissal date.
• 2-year wait for a dismissal if borrower can show extenuating circumstances.

Multiple bankruptcies:

• 5-year wait if the borrower has filed more than one bankruptcy petition in the past 7 years.
• 3-year wait if borrower can show extenuating circumstances.

Freddie Mac

Foreclosure

• 5-year wait from the completed foreclosure sale date.
• 3-year wait if borrower can show extenuating circumstances.

Short Sale

• 4-year wait.
• 2-year wait if borrower can show extenuating circumstances.

Deed in lieu of foreclosure

• Same as Freddie’s short sale policy.

Bankruptcy

Chapter 7 or Chapter 11:

• Same as Fannie’s bankruptcy policy.

Chapter 13:

• 2-year wait from the discharge date of the bankruptcy.
• 2-year wait from the discharge or dismissal date of the bankruptcy if borrower can show extenuating circumstances.

Multiple bankruptcies:

• Same as Fannie Mae’s policy for multiple bankruptcies.

Source: FHA Handbook, Fannie Mae Selling Guide, Freddie Mac Selling Guide

Before taking any steps to rebuild your credit make the decision to seek out professional assistance. Look to professionals, such as a bankruptcy lawyer and a CPA specializing in bankruptcy provisions, before making major financial decisions.  

For HUD-approved counselors, go to: http://www.hud.gov/offices/hsg/sfh/hcc/fc/index.cfm. 

You can also call 1-888-995-HOPE for help from the Homeownership Preservation Foundation.

How to Amend Your IRS Tax Return

It's great to do your taxes early. All the stress and aggravation is long passed and your enjoying that nice fat refund check. But in the mail today came an additional W-2 income form. You completely forgot about it, what are you going to do now? The I.R.S. has just the solution to your problem. It's called form 1040X. With this form you can amend your incorrect tax return and satisfy your obligation to Uncle Sam.

Here are a few tips to help you with your 1040X:

1. When to amend a return You should file an amended return if your filing status, your dependents, your total income or your deductions or credits were reported incorrectly.
2. When NOT to amend a return In some cases, you do not need to amend your tax return. The IRS usually corrects math errors or requests missing forms – such as W-2s or schedules – when processing an original return. In these instances, do not amend your return.
3. Form to use Use Form 1040X, Amended U.S. Individual Income Tax Return, to amend a previously filed Form 1040, 1040A or 1040EZ. Make sure you check the box for the year of the return you are amending on the Form 1040X. Amended tax returns cannot be filed electronically.
4. Multiple amended returns If you are amending more than one year’s tax return, prepare a 1040X for each return and mail them in separate envelopes to the appropriate IRS processing center.
5. Form 1040X The Form 1040X has three columns. Column A shows original figures from the original return (if however, the return was previously amended or adjusted by IRS, use the adjusted figures). Column C shows the corrected figures. The difference between Column A and C is shown in Column B. There is an area on the back of the form to explain the specific changes and the reason for the change.
6. Other forms or schedules If the changes involve other schedules or forms, attach them to the Form 1040X.
7. Additional refund If you are filing to claim an additional refund, wait until you have received your original refund before filing Form 1040X. You may cash that check while waiting for any additional refund.
8. Additional tax If you owe additional tax, you should file Form 1040X and pay the tax as soon as possible to limit interest and penalty charges.
9. When to file Generally, to claim a refund, you must file Form 1040X within three years from the date you filed your original return or within two years from the date you paid the tax, whichever is later.
10. Processing time Normal processing time for amended returns is 8 to 12 weeks.

Links:

Form 1040X, Amended U.S. Individual Income Tax Return
Instructions for Form 1040X