When you are opting to take a credit card for the first time you should be very careful and gather all possible knowledge about the conditions that your Credit Card Company is providing you and how to use your credit card in a sound manner. It is good to have a credit card as it helps you to build credit and create a credit history. This is the basis of your financial activities in future as all banks and lender would check your credit scores while giving you a loan of any kind, whether it is mortgage, business loan, auto loan and so on. However, if you don’t use your credit card judiciously you would end up in credit card debts. You would then have to opt for consolidating your debt. In order to prevent yourself from falling into debt, you can follow the tips given below.

1. Read your credit card arrangement thoroughly – Most of the times you overlook to read your credit card’s terms and conditions in full. It is essential for you to read the fine print of your credit card’s policy before you sign up for it. This is because how much your credit card will actually cost you is disclosed here. The features that you see in the ads are only the best features to allure you.

2. Stick to your credit limit – Sticking to your credit limit does not only mean that you have to just not exceed your credit. It is advised that you should not use more than 30% of your available credit limit if you want an impeccable credit history. This would not only protect you from incurring more debt, it will also help you to have a good credit history.

3. Pay off your credit card balances completely each month – If you pay back your balances in full every month you will be exempted from paying interest. Even though there is a prevalent belief that a running credit card balance makes the credit card company increase your credit limit, but in reality you can get regular credit line increase even by staying within your credit limit.

4. Check the credit card statements regularly – As a credit card holder it is your responsibility to check the account statements regularly. If you find any unauthorized charges or errors, then you should contact your credit card issuer immediately.

Thus, as a first time credit card user, you should follow the above points for a debt free use of your credit card.

The deadline to apply to the IRS Voluntary Disclosure Program now over; however U.S. taxpayers still can file a voluntary disclosure under the IRS normal procedures.

In 2009, the IRS and U.S. Department of Justice began its highly publicized investigation into Swiss bank UBS AG and U.S. accountholders who hid these assets from the U.S. Government. However, the investigation did not end with UBS. The IRS made it clear that offshore tax evasion is still a top enforcement priority. The Department of Justice has gone after taxpayers regardless of the amount-even taxpayers with assets of ,000 or less in offshore accounts.

U.S. taxpayers with offshore assets and accounts are legally bound to disclose these interests to the U.S. government on their Form 1040, U.S. Individual Tax Returns, and file a corresponding Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts (FBAR). If IRS agents uncover that a taxpayer has not reported an interest in an offshore account or income accruing on such accounts during the course of an audit, the IRS may impose excessive penalties including the greater of 0,000 or 50% of the offshore account balance for willful failure to file an FBAR for each account. These penalties, compounded with interest and fraud penalties, can essentially wipe out the taxpayers foreign assets. In addition, taxpayers could be vulnerable to criminal prosecution and jail time for tax evasion.

The IRS announced in March of 2009 the creation of the IRS Voluntary Disclosure Program to motivate taxpayers to come forward and disclose their offshore accounts in exchange for lesser fines and the promise not to refer the case for criminal prosecution. As an outcome of the pressure on UBS and other offshore banks, thousands of U.S. taxpayers with previously undisclosed offshore accounts took advantage of the Voluntary Disclosure Program and applied before the October 15, 2009 drop dead date.

Although it may be too late to apply to the IRS Voluntary Disclosure Program, there is still time to file a voluntary disclosure under the IRS regular guidelines. There are a many positive outcomes to filing a voluntary disclosure as it is far better to disclose to the IRS than to have the IRS discover you. Almost identical with the Voluntary Disclosure Program, a traditional voluntary disclosure also allows taxpayers with previously undisclosed foreign accounts with a way out-potentially dodging the most severe civil fines and criminal prosecution.

Furthermore, those U.S. taxpayers with undisclosed offshore accounts should be aware the voluntary disclosure process is complicated and sensitive. U.S. taxpayers are encouraged to contact a tax attorney who is skilled at resolving disputes with the IRS as soon as possible to determine whether or not to file a voluntary disclosure with the IRS.

For example, if a U.S. taxpayer has already been investigated and contacted by the IRS, it may be too late to file a disclosure. Therefore, time plays a significant factor as the IRS continues its pursuit of undisclosed offshore account holders. The window of opportunity is closing on the ability to receive the reduced penalties and possible incarceration for those who file. Seeking the advice of proper counsel truly is in their best interest.

There are many problems you can run into with the IRS. The following is an overview and helpful information on some of these confusing issues.

· IRS Penalties· Unfiled Tax Returns· IRS Liens· IRS Audits· Payroll Tax Problems· IRS Levies· IRS Seizures· Wage Garnishments

RS Penalties

The penalizes millions of taxpayers each year. They have so many penalties that it’s hard to understand which penalty they are hitting you with.

The most common penalties are Failure to File and Failure to Pay. Both of these penalties can substantially increase the amount you owe the IRS in a very short period of time.

To make matters worse the IRS charges you interest on penalties. Many tax-payers often find out about IRS problems many years after they have occurred. This causes the amount owed the IRS to be substantially greater due to penalties and the accumulated interest on those penalties.

Some IRS penalties can be as high as 75%-100% of the original taxes owed. Often taxpayers can afford to pay the taxes owed, however, the extra penalties make it impossible to pay off the entire balance.

The original goal of the IRS imposing penalties was to punish taxpayers in order to keep them in line. Unfortunately, the penalties have turned into additional sources of income for the IRS. So they are happy to add whatever penalties they can and to pile interest on top of those penalties. Your loss is their gain.

Under certain circumstances the IRS does abate, or forgive, penalties. Therefore before you pay the IRS any penalty amounts, you may want to consider requesting that the IRS abate your penalties.

Unfiled Tax Returns

Many taxpayers fail to file required tax returns for many reasons. What you must understand is that failure to file tax returns may be construed as a criminal act by the IRS. This type of criminal act is punishable by one year in jail for each year not filed.

Needless to say, its one thing to owe the IRS money but another thing to potentially lose your freedom for failure to file a tax return.

The IRS may file “SFR” (Substitute For Return) Tax Returns for you. This is the IRS’s version of an unfiled tax return. Because SFR Tax Returns are filed in the best interest of the government, the only deductions you’ll see are standard deductions and one personal exemption.

You will not get credit for deductions which you may be entitled to, such as exemptions for a spouse or children, interest and taxes on your home, cost of any stock or real estate sales, business expenses, etc.

Regardless of what you have heard, you have the right to file your original tax return, no matter how late its filed.

IRS Liens

The IRS can make your life miserable by filing Federal Tax Liens. Federal Tax Liens are public records that indicate you owe the IRS various taxes. They are filed with the County Clerk in the county from which you or your business operates.

Because they are public records, they will show up on your credit report. This often makes it difficult for a taxpayer to obtain any financing on an automobile or a home. Federal Tax Liens also can tie up your personal property, you cannot sell or transfer that property without a clear title.

Often taxpayers find themselves in a Catch-22 where hey have property that they would like to borrow against, but because of the Federal Tax Lien, they cannot get a loan. We can work toward getting the Tax Lien lifted so that you can borrow money on your property.

IRS Audits

The IRS can audit you by mail, in their offices, or in your office or home. The location of your audit is a good indication of the severity of the audit.

Typically, Correspondence Audits are for missing documents in your tax return that IRS computers have tried to find. These usually include W-2′s and 1099 income items or interest expense items. This type of audit can be handled through the mail with the correct documentation.

The IRS Office Audit is usually with a Tax Examiner who will request numerous documents and explanations of various deductions. This type of audit may also require you to produce all bank records for a period of time so that the IRS can check for unreported income.

The IRS Home or Office Audit should be taken more seriously because the IRS auditor is a Revenue Agent. Revenue Agents receive more training and learn more auditing techniques than a typical Tax Examiner.

The IRS audits should be taken seriously because they often lead to other tax years and other tax problems not originally stated in the audit letter.

Payroll Tax Problems

The IRS is very aggressive in their collection attempts for past due payroll taxes. The penalties assessed on delinquent payroll tax deposits or filings can dramatically increase the total amount you owe in just a matter of months.

I believe that it is critical for a taxpayer to have an attorney for a representation in these situations. How you answer the first five IRS questions may determine whether you stay in business or are liquidated by the IRS. We always advise clients to avoid meeting with any IRS representatives regarding payroll taxes until you have met with a professional to discuss you options.

IRS Levy

An IRS Levy is the action taken by the IRS to collect taxes. For example, the IRS can issue a Bank Levy to obtain your cash in savings and checking accounts. Or the IRS can levy your wages or accounts receivable. The person, company, or institution that is served with the levy must comply or face their own IRS problems.

The additional paperwork this person, company, or institution, is faced with to comply with the IRS Levy often causes the taxpayers relationship with that person to suffer. Levies should be avoided at all costs and are usually the result of poor or no communication with the IRS.

When the IRS levies a bank account, the levy is only for the particular day the levy is received by the bank. The bank is required to remove whatever amount of money is in your account that day (up to the amount of the IRS Levy) and send it to the IRS within 21 days unless notified otherwise by the IRS. This type of levy does not affect any future deposits made into your bank account unless the IRS issues another Bank Levy.

An IRS Wage Levy is difficult. Wage Levies are filed with your employer and remain in effect until the IRS notifies the employer that the Wage Levy has been released. Most Wage Levies take so much money from the taxpayer’s paycheck that the taxpayer doesn’t even have enough money to live on.

IRS Seizures

The IRS has extensive powers when it comes to Seizures of Assets. These powers allow them to seize personal and business assets to pay off outstanding tax liabilities. This occurs when taxpayers have been avoiding the IRS.

This is one of the IRS’s ultimate weapons. They can seize cars, television sets, jewelry, computers, collectibles, business equipment, or anything with value which can be sold in order to acquire the money the IRS wants to pay off tax debts. If you are facing a seizure, you have a serious problem.

Wage Garnishments

The IRS Wage Garnishment is a very powerful tool used to collect taxes owed through your employer. Once a Wage Garnishment is filed with an employer. Once a Wage Garnishment is filed with an employer, the employer is required to collect a large percentage of each paycheck. The paycheck that would have otherwise been paid to the employee will then be paid to the IRS.

The Wage Garnishment stays in effect until the IRS is fully paid or until the IRS agrees to release the garnishment. Having wages garnished can create other debt problems because the amount left over after the IRS takes its cut is often small, so you may have difficulty with bills and other financial obligations.

Lance Wallach speaks at more than 20 conventions annually and writes for more than fifty publications about tax reduction ideas, abusive welfare benefit and retirement plans, captive insurance companies, cash balance plans, life settlements, premium finance, etc. He is a course developer and instructor for the American Institute of Certified Public Accountants and a prolific author. He has written or collaborated on numerous books, including, The Team Approach to Tax and Financial Planning; Avoiding Circular 230 Malpractice Traps and Common Abusive Small Business Hotspots; Alternatives to Commonly Misused Tax Strategies: Ensuring Your Clients Future, all published by the American Institute of CPAs. The CPA’s Guide to Life Insurance, and The CPA’s Guide to Trusts and Estates, both published by Bisk Education, and his latest book, Protecting Clients from Fraud, Incompetence, and Scams, published by Wiley. In addition, Mr. Wallach writes for various national business associations that sell his books to their members and others. He has been an expert witness on some of the above issues, and to date his side has never lost a case.Contact LanWalla@aol.com or visit http://www.reportabletransaction.com/IRSHelp.html

The information provided herein is not intended as legal, accounting, financial or any type of advice for any specific individual or other entity. You should contact an appropriate professional for any such advice.

Debt elimination programs will help consumers eliminate credit card debt and have become more favorable than ever for consumers who are in debt for ,000 or more. This is a very rare time in our history as the United States economy has never seen such a massive influx of government bailouts and federal stimulus money injected into the markets. Much of this stimulus money went to the large banking institutions which issue the majority of credit cards and as a result they have become much more flexible in negotiating debt settlements. This article will inform consumers on where to find the best debt elimination programs and how they can eliminate credit card debt.

The United States national debt is increasing at an amazing .8 billion per day. This is a result of massive government spending and bailout plans which were initially only thought to have benefited large financial institutions. Well, the effects have finally trickled down to Main Street and consumers who find themselves in ,000 or more in debt can eliminate much of this without really hurting their credit score. The best debt elimination programs will be able to eliminate nearly 60 – 70% of your outstanding balance and there are some cases where they have been able to eliminate credit card debt up to 90% of the owed amount.

While you might be able to negotiate with your creditors, debt elimination programs are significantly advantaged in debt negotiation and should always be used for consumers who are ,000 in debt or more. If you are under ,000 in debt then it might be wise to try and negotiate by yourself. Debt settlement will not be this advantageous for consumers forever and it is strongly recommended that consumers take advantage of this economic market and eliminate credit card debt.

If you want to get out of debt and hire a debt elimination program for debt negotiation on your behalf then I have a important piece of advice. Do not go directly to a particular debt settlement company but rather first go to a debt relief network who is affiliated with several legitimate debt companies. In order to be in the debt relief network, the debt settlement companies must prove a track record of successfully negotiating and eliminating debt. They must also pass an ethical standards test. Going through a debt relief network will ensure that the debt company you are provided with is a legitimate and respected company. This is the most efficient way in finding the best debt companies and increasing your chances of eliminating your debt.

To find a debt settlement company through a debt relief network check out the following link:Free Debt Advice

When getting a loan with bad credit, a borrower has to carefully deliberate before going through with it. The terms and conditions of most mortgages for bad credit are not the same as those of the usual loans. Refinancing home mortgage will lower interest rates and monthly payments. But that is going ahead too quickly. Bad credit will inevitably encounter obstacles in the attempt to refinance. Mortgage lenders normally heap high interest rates on borrowers with bad credit; which in effect negates refinance value. There are also devious lenders who will not think twice about scamming borrowers.

It is best to look around and check out several mortgage lenders before deciding to refinance one’s mortgage. You can visit lenders’ offices, call them on the phone, or visit their websites. There are sites that have comparison charts on lenders that you can use to come to a better decision.

If you decide to send an application online for a mortgage loan refinance, on your submission form choose a term with a fixed rate like 20 or 25 years. Also put in the current value of your home, your mortgage loan balance, the name of your lender, and the name of the bank which currently has both your saving and checking accounts.

Do not withhold any information regarding your credit history no matter how low your credit score is, the instances when your home was foreclosed, and if you had been bankrupt before put in the exact date you declared it. It is better that you do not choose the option that allows you to take a cash-out when refinancing the mortgage loan on your home.

Lenders naturally have different offers on mortgages for bad credit, do some research and compare, looking for the best rates and terms. Go for the loans with fixed rates with interest rates smaller than what your loan currently has. ARMs or adustable rate mortgages have cheap introductory rates but these will increase soon. Find out if a penalty is required down the line to pay for your mortgage. See to it that the monthly payments plus interest, insurance fees and taxes are well within your ability to pay. If not, seek a mortgage that has a longer term.

Always check with the Better Business Bureau (BBB) the mortgage ratings offered by creditors you are not familiar with. Never accept offers by creditors not on the BBB list. You can call the BBB office for this or just go their official website. Lenders don’t have to be endorsed by the BBB, but they should have respectable ratings with complaints filed against them all resolved.

Be aware of your rights as a borrower according to the law. The Truth in Lending Act or TILA was made into law specifically for the purpose of protecting debtors who take up mortgage loans. Mortgage creditors should always make known vital information like their identity, the amount of money involved in financing, and the amount of monthly repayments. In refinancing mortgages, a borrower has up to three days to cancel a mortgage contract provided the TILA disclosure form was made available by the creditor. If not, a borrower has three years to withdraw from the deal.

Never be taken in by slick advertisements that intend to deceive borrowers, especially those offering incredibly cheap mortgage rates. There are creditors who offer particularly low rates on mortgages for bad credit that actually are merely introductory rates. These inexpensive payments could also turn out to be interest-only payments. Unscrupulous lenders also employ misleading terms to deceive you, making you believe a mortgage has a fixed rate when in truth it has an adjustable rate.

Why Are Short Sales Taxed?

The IRS records the amount forgiven on a short sale as part of the seller’s income. When a bank cancels part of your debt, the government takes it to mean that you earned money from the short sale process, even if you didn’t pocket anything. Your bank usually sends you a 1099 form come tax season, which will tell you how much “income” was gained in the home short sale and how much you will have to pay.

Can Taxes Be Avoided?

The Mortgage Debt Relief Forgiveness Act of 2007 exempts home short sale sellers from tax consequences. It applies to residential homes sold in a short sale process from 2007 to 2012 and is good for debts of up to million. If you’re part of a married couple and you plan to file separately, you will be exempted for up to million each.

What If I Don’t Qualify?

The most common way to avoid taxes during the short sale process is to negotiate it with your lender. You can get your bank to waive the debt cancellation and not send you a tax form. In exchange, however, you give them the right to go after you for the debt you still owe, since it was no longer cancelled. Depending on state law, lenders may be allowed to seek deficiency judgments, meaning the court will order you to pay the difference.

What If The Bank Claims The Deficiency?

The deficiency claim covers the difference between your remaining balance and the home short sale selling price. When you ask them to waive the income, they are free to sue you or ask to claim any of your assets to pay the difference. Most sellers choose to pay the tax instead because a deficiency claim reflects badly on their credit report, on top of the score drop already caused by the home short sale.
 

1. Search for a reliable and trustworthy website such as E-Loan, to make comparison shop for potential lenders who can refinance your home loan. In the available online submission form, choose a fixed rate term between 15 and 40 years for your mortgage loan refinance and provide your home’s current value. Also, include your mortgage lender, your current mortgage balance and your bank where you are having your checking and saving accounts. For best and proven result, do not choose any option to take cash out as you are considering home mortgage loan refinancing. Provide all disclosure of your bad credit history, with inclusion of times your home has been foreclosed or you have been declared bankruptcy.
2. Compare the offers made by the lenders on your mortgage refinancing request. Below are what to look out for in lenders offer:

(i) A fixed rate loan
(ii) Interest rate that is lower than your current rate;
(iii) Stay away from ARMs (Adjustable Rate Mortgages)
(iv) Do not consider mortgages with a low introductory rate which will later go up.
(v) Check if there is any penalty to pay off or refinancing of mortgage again.
(vi) Also, weigh the monthly mortgage payments (including interest), taxes and insurance and ensure they are within your financial capacity.

So if they are not, a mortgage loan with a longer term application should be considered. If E-Loan lenders do not suite you or they decline to make you an offer, then you can try another creditable site like MortgageLoan (it specializes in provision of loans for people with bad credit).

3. Visit Better Business Bureau website to check the rating of any mortgage lender that you do not recognize. No matter how sweet and favorable a lender offer is, never accept any deal with him, if it is not listed on BBB website. However, it is not compulsory that the lender should be accredited by the BBB but it should have a good rating and every complaints made should have been satisfactorily resolved. Never, think or assume to consider a bad lender simply because you have bad credit.

4. Protect your right under the law

TILA (The Truth In Lending Act) was meant to guard borrowers when they benefited or acquired a mortgage loan. Credible mortgage lenders must provide information such as their identity, the amount they will be financing and monthly payments clearly. Normally, you will have to rescind the credit contract until midnight of the third day if a TILA disclosure form was provided when you are refinancing your home loan. You have 3 years to rescind the agreement if the lender does not make provision for TILA disclosure form.
5. Be suspicious of scam and misleading advertisements from mortgage lenders offering delightful and exceedingly low mortgage rates if you refinance. Some of these lenders are trying to lure homeowners with bad credit with lower rates which usually turn out to be only an introductory rate. They can also offer you very low payments, and not disclose that payments are interest only. Also, in some cases, lenders may hide the fact that a loan is in ARM (Adjustable Rate Mortgage) instead of a fixed rate mortgage

In recent years, there is one type of fund that has hit the commodities market creating a major impact. This comes in the form of exchange traded funds. United States markets alone hold more than billion in assets, as of 2009. The investor has many choices when it comes to using these funds. They use them to purchase exposure to individual commodity sectors, gold, oil, broad-based commodity futures indexes, and silver. What makes these funds so popular is the fact that they are very easy to purchase. They are purchased as an exchange-traded fund as an investor would purchase any other security. Exchange traded funds are considered very affordable because there is no commission charge for purchase and they cost approximately 75% less than a commodity mutual fund.

Exchange-Traded Funds Linked to Individual commodities Futures

Futures are very popular with investors, which can be considered the home of commodities-linked exchange trade funds. The way this works is that this type of fund will buy futures with leverage, but they will only offer a small part of the cost of the contract. Then the remaining balance will go to treasuries, who will in turn generate income from the interest that is accumulated. When an investor begins to inquire about the return he or she will get on their investment, the answer can be increasingly complicated. This is because it is based on many different contingencies that begin with roll yield, collateral interest income, and ends with any changes in spot price.

Exchange-Trade Funds Taxes

This can be a very tricky subject when it comes to exchange-trade funds. Essentially, the IRS requires investors to sell their exchange-traded funds by December 31 of each year. It is important to remember that if the fund is up then taxes will be owed. This is because there is no deferment when it comes to gains on commodity futures. It is vital to remember that all gains are taxed at a rate of 60 percent for long-term gains and 40 percent for short term; this is true not matter the holding time period.  There is also a tax on the interest. Capital gains also cannot be deferred and they are taxed to a maximum of 23 percent.

Exchange-Traded Funds Linked to commodities Indexes

There are only two broad-based commodity indexes; ishares GSCI Commodity Index and Trust DB Commodity Index Tracking Fund. When researching these funds, an investor will find that they use futures, including collateral and yield interest loans, which charge the same expenses. There are some differences between the two funds. The first difference is that DB Commodity Index Tracking Fund only tracks six commodities while ishares GSCI Commodity Index Trust will track a more simplified  index of 24 components. Half of DBC is made up of energy, however, it accounts for over 75% of the benchmark and dominates ishares GSCI Index.

The roll strategies between the two indexes are another difference. DBC will look at 13 months for the highest yield, instead of rolling the expiring differences to the next month available. iShares, on the other hand, uses a five year contract, known as CERF kind of futures contract. The advantage to this is that CERF contracts will reduce trading costs.

While both funds will require taxes to be paid on their interest income, the GSCI Commodity Index fund are benefited with special long-term contracts where the annual tax can be dodged. It is important to mention that there is some controversy on this subject, however, the IRS has not issued their final ruling on its capabilities.

Exchange-Trade Funds Linked to Commodity Equities

Commodity-focused equities are considered a good investment for those who are looking for corporate upside or leverage. This type of fund is also high in oil exposure. It is important to remember that there is a high risk of corporate malfeasance, even though the fees are low with this type of investment.

What Should You Do During the Foreclosure Process

Mortgage Payments Sending You Reeling? Here’s What to Do

[Note: This article is taken from the Federal Trade Commission Site.]

The possibility of losing your home because you can’t make the mortgage payments can be terrifying. Perhaps you’re having trouble making ends meet because you or a family member lost a job, or you’re having other financial problems. Or maybe you’re one of the many consumers who took out a mortgage that had a fixed rate for the first two or three years and then had an adjustable rate – and you want to know what your payments will be and whether you’ll be able to make them.
Regardless of the reason for your mortgage anxiety, the Federal Trade Commission (FTC), the nation’s consumer protection agency, wants you to know how to help save your home, and how to recognize and avoid foreclosure scams.
Know Your Mortgage
Do you know what kind of mortgage you have? Do you know whether your payments are going to increase? If you can’t tell by reading the mortgage documents you received at settlement, contact your loan servicer and ask. A loan servicer is responsible for collecting your monthly loan payments and crediting your account.
Here are some examples of types of mortgages:
Hybrid Adjustable Rate Mortgages (ARMs):
Mortgages that have fixed payments for a few years, and then turn into adjustable loans. Some are called 2/28 or 3/27 hybrid ARMs: the first number refers to the years the loan has a fixed rate and the second number refers to the years the loan has an adjustable rate. Others are 5/1 or 3/1 hybrid ARMs: the first number refers to the years the loan has a fixed rate, and the second number refers to how often the rate changes. In a 3/1 hybrid ARM, for example, the interest rate is fixed for three years, then adjusts every year thereafter.

ARMs: Mortgages that have adjustable rates from the start, which means your payments change over time.

Fixed Rate Mortgages: Mortgages where the rate is fixed for the life of the loan; the only change in your payment would result from changes in your taxes and insurance if you have an escrow account with your loan servicer.

If you have a hybrid ARM or an ARM and the payments will increase – and you have trouble making the increased payments – find out if you can refinance to a fixed-rate loan. Review your contract first, checking for prepayment penalties. Many ARMs carry prepayment penalties that force borrowers to come up with thousands of dollars if they decide to refinance within the first few years of the loan. If you’re planning to sell soon after your adjustment, refinancing may not be worth the cost. But if you’re planning to stay in your home for a while, a fixed-rate mortgage might be the way to go. Online calculators can help you determine your costs and payments.

If You’re Behind On Your Payments
If you are having trouble making your payments, contact your loan servicer to discuss your options as early as you can. The longer you wait to call, the fewer options you will have.

Many loan servicers expanded the options available to borrowers during 2008 – it’s worth calling your servicer even if your request has been turned down before. Servicers are getting lots of calls: Be patient, and be persistent if you don’t reach your servicer on the first try.

You also may want to ask if you qualify for the “HOPE for Homeowners (H4H)” program. Congress created H4H to help those at risk of default and foreclosure refinance into more affordable, sustainable loans. The program provides a new, 30-year fixed rate mortgage insured by the Federal Housing Administration (FHA) if you and your lender agree to certain conditions. The program expires September 30, 2011. For more information, see www.hud.gov/foreclosure.
Avoiding Default and Foreclosure
If you have fallen behind on your payments, consider discussing the following foreclosure prevention options with your loan servicer:
Reinstatement: You pay the loan servicer the entire past-due amount, plus any late fees or penalties, by a date you both agree to. This option may be appropriate if your problem paying your mortgage is temporary.

Repayment plan: Your servicer gives you a fixed amount of time to repay the amount you are behind by adding a portion of what is past due to your regular payment. This option may be appropriate if you’ve missed a small number of payments.

Forbearance: Your mortgage payments are reduced or suspended for a period you and your servicer agree to. At the end of that time, you resume making your regular payments as well as a lump sum payment or additional partial payments for a number of months to bring the loan current. Forbearance may be an option if your income is reduced temporarily (for example, you are on disability leave from a job, and you expect to go back to your full time position shortly). Forbearance isn’t going to help you if you’re in a home you can’t afford.

Loan modification: You and your loan servicer agree to permanently change one or more of the terms of the mortgage contract to make your payments more manageable for you. Modifications may include reducing the interest rate, extending the term of the loan, or adding missed payments to the loan balance. A modification also may involve reducing the amount of money you owe on your primary residence by forgiving, or cancelling, a portion of the mortgage debt. Under the Mortgage Forgiveness Debt Relief Act of 2007, the forgiven debt may be excluded from income when calculating the federal taxes you owe, but it still must be reported on your federal tax return. For more information, see www.irs.gov. A loan modification may be necessary if you are facing a long-term reduction in your income or increased payments on an ARM.

Before you ask for forbearance or a loan modification, be prepared to show that you are making a good-faith effort to pay your mortgage. For example, if you can show that you’ve reduced other expenses, your loan servicer may be more likely to negotiate with you.

Selling your home: Depending on the real estate market in your area, selling your home may provide the funds you need to pay off your current mortgage debt in full.

Bankruptcy: Personal bankruptcy generally is considered the debt management option of last resort because the results are long-lasting and far-reaching. A bankruptcy stays on your credit report for 10 years, and can make it difficult to get credit, buy another home, get life insurance, or sometimes, get a job. Still, it is a legal procedure that can offer a fresh start for people who can’t satisfy their debts.

If you and your loan servicer cannot agree on a repayment plan or other remedy, you may want to investigate filing Chapter 13 bankruptcy. If you have a regular income, Chapter 13 may allow you to keep property, like a mortgaged house or car, that you might otherwise lose. In Chapter 13, the court approves a repayment plan that allows you to use your future income toward payment of your debts during a three-to-five-year period, rather than surrender the property. After you have made all the payments under the plan, you receive a discharge of certain debts.

To learn more about Chapter 13, visit www.usdoj.gov/ust; it’s the website of the U.S. Trustee Program, the organization within the U.S. Department of Justice that oversees bankruptcy cases and trustees.

If you have a mortgage through the Federal Housing Administration (FHA) or Veterans Administration (VA), you may have other foreclosure alternatives. Contact the FHA (www.fha.gov) or VA (www.homeloans.va.gov) to talk about them.

Contacting Your Loan Servicer

Before you have any conversation with your loan servicer, prepare. Record your income and expenses, and calculate the equity in your home. To calculate the equity, estimate the market value less the balance of your first and any second mortgage or home equity loan.

Then, write down the answers to the following questions:

What happened to make you miss your mortgage payment(s)? Do you have any documents to back up your explanation for falling behind? How have you tried to resolve the problem?

Is your problem temporary, long-term, or permanent?

What changes in your situation do you see in the short term, and in the long term? What other financial issues may be stopping you from getting back on track with your mortgage?

What would you like to see happen?

Do you want to keep the home?

What type of payment arrangement would be feasible for you?

Throughout the foreclosure prevention process:
Keep notes of all your communications with the servicer, including date and time of contact, the nature of the contact (face-to-face, by phone, email, fax or postal mail), the name of the representative, and the outcome.

Follow up any oral requests you make with a letter to the servicer. Send your letter by certified mail, “return receipt requested,” so you can document what the servicer received. Keep copies of your letter and any enclosures.

Meet all deadlines the servicer gives you.

Stay in your home during the process, since you may not qualify for certain types of assistance if you move out. Renting your home will change it from a primary residence to an investment property. Most likely, it

1. Fixed Asset data conversion via FA Integration Utility.  If you have existing items that you would like to bring to Dynamics GP Fixed Asset module, you should export them into text files from your legacy Corporate ERP application and organize them into several files, according to Source file structure, described in FA Manual in the section “Importing Asset Records”.  The idea is like that: each file line has prefix: General (here FA import utility will assume that you are importing FA master records or assets in other words), Book (Asset-Book values, including such important features as Depreciation Method and Averaging Convention.  Just to remind – Depreciation Methods are Straight Line, Declining Balance and others) and less likely you may also decide to import Lease, Ins (staying for insurance) and User (user defined info).  We recommend you to create macro from each import, as this should help you to repeat the same process (and you can also alter Macro logic to further advance data conversion scenarios).  We recommend you to try FA import in the Test company, as you should expect several iterations

2. Fixed Asset Data Import via Custom Macro.  In some cases we had to do direct macro recording, and then reviewing macro anatomy and preparing final macro in Excel.  What you do is this – you record macro (entering new Fixed Asset General Record), then you open it in text editor and parse into logic portions and the Data Fields (where you enter data manually – Fixed Asset ID, Description, for example).  Then you place these parsed sections in separate Excel Columns and reproduce similar macro Excel rows for all the rest of your records.  This macro is more flexible and you have absolute control over its logic in Excel

3. Historical Depreciation or Amortization.  We recommend you do not import it from your legacy ERP application and rather try to depreciate it in Great Plains to current date and then compare with your legacy numbers

4. Fixed Assets new acquisitions.  Here you have three options.  First one is simple – you enter new fixed asset general record directly in FA.  Second – you can associate FA acquisition with AP Vendor invoice (if you change Purchase Distribution account to FA specified account) and the third – if you do Purchase Receipt (on FA Purchase account, or by marking item as Capital Item on the Purchase Order)

5. FA Data Repair.  There are known issues when you are closing your FA year several months after your Fiscal Year is closed.  In this specific case your depreciation inquiry and summary might be off – should be easy fix for Dynamics GP consultant

6. FA Reporting.  If you think that existing Report Writer reports are not covering your needs, Fixed Assets could be opened for Crystal Report or Microsoft SQL Server Reporting Services (SSRS)

7. Small article genre requires us to finish it here.  However we would like to hear from you about your FA implementation needs.  Call us: 1-866-528-0577, help@albaspectrum.com