Overcoming Financial Difficulty

Life is unpredictable and ending up in a difficult financial situation due to circumstances beyond our control is not only possible, but very likely to happen to anyone, sooner or later.

This is not to say that we are not responsible for what happens to us; in fact, we are very much the makers of our fortunes and misfortunes, but there are situations that are simply unavoidable, despite how hard we try to keep ourselves on the right path. Falling ill, for example, or losing a job due a sudden economic downturn, or simply making a human mistake cannot be foreseen or prevented despite our best efforts and wishes.

However, most of the time what drags us into trouble is our lack of wisdom and vision; our ignoring the alarms that our subconscious mind (or simply put our "gut feeling") sends us. That inner voice is our safeguard.

When we ignore it, trouble happens. Sometimes it is minor, but sometimes it is major. And when it is major and it is financial, it may leave us, and whoever shares life with us, dealing with serious and painful consequences.

What can we do about it? First of all, we owe it to ourselves to listen to our inner wisdom. Leading psychologists suggest that there is a very practical way to do so: talking to ourselves in the mirror with an open heart and an open mind. It may feel silly, but it may just help.

When you face yourself and start your inner dialogue, you make peace within and you'll be able to ask all the difficult questions. You'll be surprised to discover that your inner self already holds the answers you're seeking.

Next, you'll find that creating a plan of action to improve your situation becomes a lot easier. The difficult part is to bring about the necessary changes to implement the plan.

Despite what most people think, the strength and the courage to make changes are within everyone; what is lacking sometimes is the motivation to go through the process because it is as painful as doing spring cleaning.

A positive moral boost, a sign confirming that what you're doing is making a difference can work miracles at this point. For example, if you have finalized your financial plan as part of the changes you need to implement and have discovered that you're in need of a bit of cash to kick start your recovery and consolidate some debt, you might want to think about a car title loan. Since these loans are secured by the value of your vehicle, they are easier to obtain than standard loans and your credit history or situation won't matter very much at all. In addition to the extra cash you will have to consolidate your debt, these loans, if paid on time, will help you to begin boosting your credit rating once more.

Once you see that something is working out, achieving the next goal in your plan becomes suddenly easier. Remember that it is important to set realistic goals. Set small ones to start so they can be achieved and then work hard to achieve them. Go to the mirror and congratulate yourself on any small victory, for they are the ones that really count. Soon you'll not only be out of trouble, but also on the road to success.

BHM Financial is one of the most trusted names in the Canadian car title loan industry. For more information about secured loans, please visit our Bad Credit Loans website. Visit our blog for more articles about Bad Credit and Debt.

Ways Banks Are Limited on Deficiency Judgments

Homeowners are often worried that the foreclosure process will never end. The bank will sue them, publish their personal financial problems in the newspaper, take their home back, evict them, and then sue them again for any deficiency from auctioning the property. With the anticipation of a deficiency judgment, borrowers may feel like they will never be able to restart their lives and move on after foreclosure.

However, this is most often simply not the case. The potential for a deficiency judgment, while it exists, can be microscopically small. For a variety of reasons, banks do not pursue homeowners after foreclosure, even if there is a deficiency. As well, there are numerous state and local statutes and court decisions that place limits on how much money a bank can even obtain from this type of lawsuit.

First of all, many lenders decide not to sue for a deficiency judgment because they know that homeowners are unlikely to have any other assets with which to pay the debt. Most borrowers default on their home due to financial hardships such as a job loss or major medical expense. It is probably safe to assume that families in this position do not have the income or assets to pay a judgment for tens of thousands of dollars.

In many cases, the bank, in order to obtain such a judgment, will have to spend several hundred or thousand dollars out of its own pocket. Court fees must be paid if another lawsuit is to be brought into court, and attorney costs will be paid out of pocket by the bank to proceed with the deficiency lawsuit. After losing so much money from the foreclosure and auction of the home, banks most often cut their losses instead of look for a deficiency.

State statutes regarding deficiency judgments also come into play and can dramatically affect how much the bank is able to sue for or recover from the former homeowners. However, borrowers should also be aware that most anti-deficiency judgment statutes apply only to purchase-money mortgages, and second mortgages or refinances may not be affected by these particular laws.

In fact, some states have simply banned deficiency judgments against borrowers when the foreclosure was done nonjudicially through a power of sale clause in a deed of trust. Borrowers in these states can be completely safe from being sued after foreclosure. Although the nonjudicial process affords the fewest legal protections during the foreclosure, it may offer the best chance of avoiding being sued again after the auction.

Other states place restrictions on how much a lender can recover from a deficiency by limiting the amount of the judgment. This is done by giving borrowers a credit for the "fair value" of the property. The fair value is determined by figuring out what the property is actually worth, and this will most often be defined by the statute itself. It may not mean the sales price at auction or the market value of the home, so it is important to read to the state law on the issue.

Another restriction that has been placed on banks seeking deficiency judgments is strict time frames in which the judgment can be initiated. If banks were able to wait years before suing the former owners, it may be nearly impossible for the family to get on with its financial life. Instead of having borrowers live with the threat of a lawsuit, states have decided that deficiency judgment suits must be pursued almost immediately after foreclosure, or the opportunity to do so is eliminated.

Lenders may also have procedural restrictions placed on their ability to sue borrowers after foreclosure. In some cases, the bank may have to provide additional notices to the owners informing them of the intent to seek a deficiency judgment. As well, the bank may be required to seek a determination of deficiency in the original lawsuit, rather than bring a lawsuit seeking the judgment after the sheriff sale has been conducted.

Many of these restrictions may come into play at the same time, while banks will run into one after another in other foreclosures. These limitations and additional requirements, along with the likeliness of never being able to collect on the judgment, ensure that the majority of homeowners are safe from being sued for a deficiency. While it is not impossible to be sued by the bank, the legal hurdles to overcome in pursuing this lawsuit make it somewhat rare in the world of foreclosures.

Nick writes articles to give advice to homeowners who are the in the process of stopping foreclosure on their properties and learning how to repair their finances afterward. His other articles describe various solutions to foreclosure, including mortgage modification, obtaining a foreclosure refinance, and even fighting a foreclosure complaint to get more time from the courts to work out a better alternative. Visit his site today to read more about how foreclosure works and how you can stop he process while you still have time: http://www.foreclosurefish.net/