Generating greater profits (or avoiding loss) from your real estate is simpler than you can imagine. If you want to get the most out of it, you don’t have to worry about the big things but the small things that require you to apply a bit of common sense.
That said, here are 3 simple mortgage tips that can go a long way in eliminating fees too:
#1: Make extra principle payments
Making extra principle payments will ensure that you reduce the amount of interest you pay – let’s say – over a period of 30 years. This means even making small ones over a period of time as this will significantly reduce the interest you have to pay. This is for the simple reason that interest is charged on the outstanding balance owed.
#2: Saving Money on Late Fees
If you are in danger of having to pay late fees, one way to avoid this is by sending the payment via overnight mail. In fact, the cost is much lesser than the late payment that you might have to make otherwise. For instance, if there is a 5% penalty on a $1000 payment, it’ll cost you about $50. Sending it by Federal Express will ensure that you pay less than that amount – less than $15.
#3: Dealing with Bankruptcy
If a borrower is bankrupt, they will go into Federal court to have the foreclosure proceeding halted against them. When this petition is filed in federal court, an automatic stay occurs when it comes to the state court foreclosure proceeding. All you need to do is ask your attorney to ask the court to lift the stay. If the debtor files for chapter 13 reorganization, you’ll have to accept a payoff plan. One way or another, you will get paid.