Category Archives: Personal Finance

The Absolute Deed Intended as Security



Parol evidence is admissible to establish that a deed purporting to be an absolute conveyance of real estate was intended to serve as security for an obligation, and should therefore be deemed a mortgage. The obligation may have been created prior to or contemporaneous with the conveyance and need not be the personal liability of any person.

Intent that the deed serve as security must be proved by clear and convincing evidence. Such intent may be interred from the totally of the circumstances, including the following factors:

Statements of the parties

The present of the substantial disparity between the value received by the grantor and the fair market value of the real estate at the time of the conveyance;

The fact that the grantor retained possession of the real estate;

The fact that the grantor continue to pay real estate taxes;

The fact that the grantor made post-conveyance improvements to the real estate

The nature of the parties and their relationship prior to and after the conveyance

The conditional sale intended as security

Parol  evidence is admissible to establish that a deed purporting to be an absolute conveyance of real estate accompanied by a written agreement conferring on the grantor a right to purchase the real estate, was intended to serve as a security for an obligation, and should therefore be deemed a mortgage. The obligation may have been created prior to or contemporaneous with the conveyance and need not be the personal liability of any person.

Difference between absolute deed and conditional sale, note that Flack represents a pure “absolute deed”  transaction. The only writing we are confronted with is a deed from the grantor to the grantee. On the face of things, it appears that the grantor has “sold” the real estate to the grantee. Here parol evidence is used to establish that the deed did not reflect a sale transaction, but rather was intended as security for a loan or obligation. If grantor successes, she will be permitted to “redeem” the land by paying the obligation.

Sannerund, on the other hand, is usually described as a “conditional sale” transaction.   In this latter situation there not only is a deed to the grantee, but a second written document that normally purports to confer on the grantor the obligation or option to purchase the real estate described in the deed. Thus, unlike in the absolute deed setting, here it is clear from the second writing that the grantor has the right to reacquire the real estate.

Benefits of Personal Loans

personal loans

personal loans

If you are in a critical or emergency situation, you would surely wish to get instant money from someone.  These days, through the availability of loans such as the personal loans people will have the option where there can borrow money. For emergency situation and purposes, you can count on this type of loan. When you need it, you will certainly have it available to you.  There are several lenders offering favorable interest rates and more.

The Benefits of Having Personal Loans:

Easy to access

Several lending companies or banks will enable you to have a fast and easy access. As long as you have passed the requirements and qualify for the loan, the lender will process your application and you can obtain the fund the soonest possible time.

Low interest

This type of loan involves high interest rates. While some lenders offer lower interest rates to those borrowers who have good credit rating.  Each of your needs is truly vital that is why valuable low interest offers is really promising.

Enable to travel anywhere you want

If you are adventurous and want to know more about the world, applying for personal loans will help you in achieving it.  Through it you will be able to fly high and reach for your traveling dreams.

Offers luxury living

Several of you want luxurious. With this type of loan, you will be given the chance to experience the luxury that you desire in life.

These days, hard situations will never be avoided. In fact, no matter how organized you are in budgeting   times may come when you will face the consequences of emergency expenses. If you aren’t yet prepared for the chances or this occurrence in your life, and then you will surely be in trouble.  On the other hand, if you worry about money matters, personal loans will save you. Just choose loans having low interest rates and great terms. This type of loan can help in many ways, but you should not rely on it every time you need instant cash otherwise it will lead you to debt.


Business Finance

business finance

business finance

Key to Business Expansion

If the business industry is a complex world, then why have several people have continuously investing and engaging in it? Well, the answer is just as simple, there are several great opportunities to choose from in this industry. But before an individual can achieve success, you will first need to be efficient and very competitive.  Running a business is never easy within this industry and business finance may be one of the hardest and more complex type deals to handle.

Understanding Business Finance

What is business finance and what is its role in the whole business operation?  This is typically about the financial dealings of a particular company or business.  Specifically, it deals with a particular activity in business in which the capital funds conservation is and how acquisitions are balanced in order to meet every financial needs and entire goals of the business.

From Investors to The Company’s Operations

The company’s capital may come from its owners resources or it can also be coming from other sources like investors or loans. In order to keep the business performing and operating, the supply of products and services should be continuous.  This is why a business or firm often seeks for other financial or capital support. For a business to grow and become more successful there should be sufficient fund.

This will encompass financial management such as the acquisition of funds, the distribution and how they will be organized.  The plans, analysis and vision are vital on how the company will qualify for the loan.  The type of assets that the company has will also be assessed.  Every financial affair is definitely vital to a company’s success.

Both small and big business needs to have support in order to be fully mature in the world of industry.  There is no easy way on having a highly efficient enterprise to call your own. It all starts from small up to obtaining big portion and position in business industry.  Business activities and dealings are all created to achieve a particular aim and to establish a name and become known in this industry.

Finance Information

finance information

finance information

As you grow older, your finances become more and more complicated. Hiring a financial adviser which is often thought of as something only millionaires or business owners consider, however, they can provide a wide range of benefits, some of which are often overlooked. Every now and then, we may make mistakes analyzing our finances ourselves which leads to problems that we don’t anticipate. Fortunately, with a financial adviser you receive all the benefits that come with one, and more. Below are just a few of the many benefits.

Simplification of financial information – Depending on your background, whether you’re a business owner, student, father, or long-time investor, your finances can be quite complex. A benefit is that your finances are simplified into something an average person can understand, and organizing in such a way that is most helpful for you. This can include the risks that come along with investments, the impacts of making a big decision such as purchasing a property, and others.

Access to information that wasn’t available before – Depending on your educational background and experience in finances, the available information you may be able to access could be limited. An adviser would, ideally, be an expert in their field and have knowledge of several techniques to convert data to useful information. If you’re looking to see the expected value of an investment and the risks, this may be out of your league, but not for the adviser.

Peace of mind – Whether you’re a father, a business owner, or have several personal responsibilities, organizing your finances can just be an unnecessarily tedious task. In fact, it is far more efficient to let an adviser handle your finances so that you can focus on what’s important.

Hiring a financial adviser provides a wide range of benefits, some of which are often overlooked. Handling your finances at times may seem simple enough, but with mortgages, business finances, and loans, things can start to get complicated and inefficient. In fact, at times the lack of expertise can lead to a false sense of understanding and cause future financial problems due to improper handling of finances. Don’t take the risk of mishandling your finances and consider the benefits of an adviser.

Consumer Loans

consumer loans

consumer loans

What you need to know about consumer loans

In today’s world unless you are already filthy rich or have received a huge trust fund from your parents, most of the time you will need loans in order to purchase things that we need but cannot pay for in cash. This  could be a home equity loan or another type loan called a consumer loan, which is the money lent from one person to another person that is not really that secured  by collateral. The people who get consumer loans are usually in need of short-term cash.

With consumer loans there are instances when it will be considered a secured loan which means that you would need to have a collateral or an asset in order to secure the loan. Depending on the bank or creditor the collateral may come in any form like real estate or other investments.

Consumer loans usually would not need a second guarantor to sign the loan. For the unfamiliar a guarantor is a person who signs as a secondary guarantor and basically guarantees that the borrower will repay the loan amount and if the person who borrows is not able to do so, the bank or creditor will have the right to pursue the  secondary guarantor for payment.

When applying for a consumer loan, the bank or creditor will require the borrower to submit several documents and other requirements. These will vary from bank to bank and from creditor to creditor. Usually, they would ask the borrower to submit a credit report, tax returns and pay-stubs.The terms of payment in a consumer loan would also vary on the offer made by the bank or creditor. It is usually longer and has a lower interest rate compared to business loans. And once the funds have been released to the borrower the bank or creditor will not usually do any follow up unless the borrower fails to meet the payments due on time.

Agents and Brokers

agents and brokers

agents and brokers

You should understand the difference between an agent and a broker. An agent is someone who represents the insurer and has the legal authority to act on the insurer’s behalf. If you buy insurance, you will probably buy it from an agent. However, there is an important difference between a property and liability insurance agent and life insurance agent. A property and liability insurance agent typically has the power to bind the insurer immediately with respect to certain types of coverage. In contrast, a life insurance agent normally does not have the authority to bind the insurer but must first submit the application to the insurer for approval.

In contrast to an agent who represents the insurer, a broker is someone who legally represents the insured. Brokers are extremely important in commercial property and liability insurance. Large brokerage firms have knowledge of highly specialized insurance markets and control the accounts of large corporate insurance buyers. However, unless you are operating a business, you probably will buy insurance from an agent and not from a broker.

Some agents are independent. An independent agent is a businessperson who represents several insurers. The independent agent has authority to write business on behalf of these insurers. In contrast, the agent may be an exclusive agent. An exclusive agent is an agent who represents only one insurer or group of insurance under common ownership. For example, an agent for State Farm is an exclusive agent. Finally, some insurers sell directly to the public and do not employ agents. These insurers are called direct response insurers since they sell through the mails or other mass media, such as radio, television, and newspapers. Applications for insurance typically have access to a toll free telephone number to request an application for insurance. Examples of direct response insurers include Government Employees Insurance Company, AMICA Mutual Insurance, and Teachers Insurance Annuity Association. Since marketing costs reduced, the cost to the insurance consumer often is dramatically reduced.

In summary, private and government insurance plans are extremely important in the financial planning. You should also understand the different types of insurance policies and amounts of insurance to buy, how to select and insurer an agent, how to compare policies issued by different insurers, how to file a claim and what to do if your claim is denied and common errors to avoid in buying insurance.

Loan Provisions


loan provision

Consumer debt has a language all its own. It is important to “speak the language” before you apply for a consumer. The principle is simply the amount of money that you borrow and on which you pay interest. The maturity, as explained earlier, it is the duration of the loan. Thus, if you borrow $3000 and agree to repay the money you borrowed in three years, the loan principal is $3000, and a loan maturity is three years. If you repay $1000 of the loan one year later, the loan principal is now $2000, and the loan maturity is now two years.

Finance charges, are interest payments you most make to compensate the lender for the use of the funds. Finance charges are determined by the maturity of the loan, the principal, the interest rate charged, and the method of calculating finance charges.

There are three common methods of the terminating finance (interest) charges on consumer loans: the simple interest method, the discount method, and the add-on method. Under the simple interest method, interest is charged only on the amount that you actually owe at any point in time. Thus if you borrow $3000 at 10 percent interest for one year, the interest charged under this simple interest method would be $300.

At maturity, you will pay $3300, consisting of $3000 in loan principal plus $300 and interest. You might also be charged simple interest on an installment loan. As with a single-payment, simple interest loan, you only pay interest on the outstanding balance at any point in time under a simple interest installment loan. Simple interest installment loans require equal periodic payments. Although the installment payments are equal amounts, the portion of each payment that is repayment of principal increases with each payment, whereas the portion of each payment that represents interested decreases.

A second method of calculating finance charges is the discount method. Under the discount method, finance charges are calculated based upon the loan principal, and then are deducted from the principal, with the borrower receiving the net amount.

The interest rate charged varies with economic conditions, the duration of the loan, the type of loan, and the creditworthiness of the borrower. Several financial publications print current representative loan rates.

Although the timing of loan payments is detailed in the loan agreement, you may have the funds necessary to repay the loan early. If you pay off the balance due before the loan matures, you might be able to reduce your finance charges since the money is not barrowed for as long.

Sources of Consumer Loans

sources of consumerr loan

sources of consumer loans

Suppose you want to borrow money to purchase a new car. Where can you get a loan? Consumers can borrow from a number of sources. The most important sources of consumer loans include deposit-type financial institutions, consumer finance companies, sales finance companies, life insurance policy loans, real estate equity loans, friends and family, and pawnshops.

Deposit-type Financial Institutions

Deposit-type financial institutions include commercial banks, savings and loans associations, mutual savings banks, and credit unions. Such institutions have a ready source of loanable funds: money that has been deposited by savers. Regulators require these institutions to hold a portion of the deposits accepted on hand, but surplus funds can be used to make loans. Commercial banks are that leaders in consumer lending, followed by credit unions, and other savings institutions.

Commercial banks

Commercial banks are the most numerous and widespread deposit-type financial institution. At year-end 1994, outstanding consumer installment loans from commercial banks totaled $434 trillion. Commercial banks offer secured and unsecured loans for a variety of purposes, including personal loans, auto loans, home improvement loans, and student loans. Interest rates on commercial bank loans are favorable to borrowers because commercial banks have a ready source of funds (deposits), and commercial banks are selective in granting loans. Although you are not required to be a depositor of the commercial bank where you apply for a loan, some preference is given to regular customers of the bank, especially when the supply of loanable funds is tight.

Credit Unions

Credit unions are the deposit-type institution that serves members who have a common bond, such as working for the same employer. Credit unions offer some of the best credit terms available to their members. Credit unions can offer favorable loan terms for three reasons. First, as a deposit -type financial institution, the credit union has deposits on hand from which loans can be made. Second, many credit unions are nonprofit, cooperative entities. Finally, credit unions are characterized by low expenses.

Credit unions concentrate their lending efforts on consumer loans and offer competitive interest rates. At year-end 1994, outstanding consumer installment loans from credit unions totaled $121.7 trillion. Credit unions offer a variety of types of loans, including secured and unsecured loans and single-payment and installment payment loans. Credit unions commonly extend personal loans, auto loans, and home improvement loans. Most credit unions also provide the borrower with “free” credit life insurance.

Gross Income

gross income

gross income

Gross income is the starting point for determining the total amount of income tax due. Gross income is all income you receive from money, goods, property, and services that is not exempt from taxation. Unless the item is specifically excluded in the Internal Revenue Service (IRS) code, you must include it in gross income. Thus, gross income includes wages and salaries, commissions and fees, profit from a business, interest, dividends, rents, capital gains, royalties, tips, prices, gambling winnings, pension income, and similar items.

For most workers, wages and salaries are the largest component of gross income. Certain items are excluded from gross income, including gifts and inheritances, life insurance death benefit, workers compensation benefits, tax exempt interest on securities issued by state and municipalities, and certain other items.

During the current tax year, Michelle received $40,000 in salary as a marketing analyst, $350 in interest and dividends in a stock brokerage account, $50,000 as beneficiary of her mother’s life insurance policy, and $500,000 as her share of her deceased mother’s estate. The salary, dividends and interest must be included in Michelle’s gross income. However, the IRS Code excludes life insurance proceeds and inheritances from gross income.

Adjustments to income

After gross income is terminated, it is reduced by certain deductions to arrive at adjusted gross income. Adjusted gross income is gross income less certain deductions. The fallowing deductions can reduce gross income: Individual retirement account (IRA) contributions, allowable moving expenses, one half the self-employment tax, self-employed health insurance deduction, Keogh retirement plan and simplified employee pension (SEP) contributions, penalty for early withdrawal of savings, alimony paid. Adjusted gross income is an important calculation since it is the base for calculating certain itemized deductions, such as medical expenses and miscellaneous deductions.

Taxable income

The next step is to determine your taxable income. Taxable income is the actual amount of income that is subject to taxation for a giving year. Taxable income is calculated by subtracting the standard deduction (or itemized deductions) and all exemptions for adjusted gross income. The standard deduction is a specific amount that taxpayers who do not it itemize their deductions may deduct from adjusted gross income. Itemized deductions are deductions for various types of personal expenses. You should use the standard reduction if it exceeds the total of your itemize deductions. Most taxpayers filing individual returns take the standard deduction. The amount of the standard deduction depends on your filing status and age.

Obtaining a Consumer Loan

obtaining aconsumer loan

obtaining a consumer loan

You may decide to purchase an asset, start a business, or go back to college. If you do not have the required financial resources on hand, you will have to try to obtain a consumer loan. How do you go about obtaining a consumer loan? The first step is to determine if you are going to purchase the asset, remodel your home, take a vacation, start a business, or enroll in college, that is, spend the money now. You may decide to postpone spending until a later date or not to spend the money at all. In the case of a car, you might need to decide whether to purchase or lease. If you decide to make the expenditure, you can either pay cash for the entire amount or borrow part or all of the money needed. If you decide to borrow the money, you must first select a lender.


The selection of a vendor involves several factors. Some sources of loans can immediately be eliminated. For example, you need an equity position in real estate or a cash value life insurance policy tomorrow from these sources. There may not be any mutual savings banks in your area, you may not be a member of a credit union, or a certain lender may be unwilling to offer a loan for your intended purpose.


Selecting a lender involves some “leg work”. Logic dictates that you should start with the lender that makes the type of loan that you desire and that provides the most favorable terms (for example, lowest interest rate, desired long duration). Phone calls and visits to lending institutions can provide the general information you will need. You should also consider more than one lender in the desired category. For example, if you determine that a commercial bank is your best source of funds, you should contact several commercial banks to compare loan terms. Lending institutions sometimes offer special loan deals for qualified applicants during specific time periods.


Just because you decide but one source of consumer loans is best for you does not guarantee that the lender will concur with your conclusion. The lender must determine if it should loan you the money. As a first step, the lender will provided a loan application form for you to complete, much of the information required on a credit card application is also required on a consumer loan application.

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