Buyers with a foreclosure history have more to prove to the banks; hence getting loans might be tough. Below tips will help them get through the hurdles and secure financing for foreign property investment.

Are banks scared to give loans to boomerang buyers?

Applying for a loan after a foreclosure, if you're a property buyer in the US, is not a piece of cake. The lender wants to be sure of one thing: You are able to pay the loan and have learnt from your mistakes. If you're planning to buy a foreign property, getting financing becomes harder. If you do get financing, you might be immersed in a lot of paperwork.

Banks will want you to prove your income. They will look closely at your bill payment records after the foreclosure (hence the need to rebuild your credit). If you have a traditional job for which you receive a W-2 form, your lender will want to see it and verify your income with your employer. Boomerang buyers (property buyers with a foreclosure history) who work several part time jobs or are self-employed will face more scrutiny. They will have to show their income with several years of tax returns and other documents.

Yes, you might have a lot to prove to the bank when applying for mortgage as a boomerang buyer. This is why Realtor.com recommends including a letter in your mortgage application that explains the reason for foreclosure.

What Most Foreign Banks Require Before Giving Mortgage

Requirements for mortgages will vary from country to country as each country flaunt different taxation structures. Some countries will require you to open a bank account, get a tax identification number or get approval from Government housing agencies before you'd be allowed to buy a home.

You need to be conversant with the taxes that apply in your destination country. For example, foreign property buyers in Spain have to pay a wealth tax (patrimono in Spanish). Countries like South Africa also mandate a building insurance for foreign buyers.

The important thing when applying for a mortgage either as a buyer with foreclosure history or not is your ability to document everything. Mortgage has come a long way from the crisis periods and banks are more proactive. They want to verify any financial information provided.

Tips To Secure Financing for Foreign Property Investment after Foreclosure

Having a foreclosure history shouldn’t stop you from your dream of owning property abroad, here are three tips to get financing as a boomerang buyer.

1. Get equity from your US home.

Your friendliest partner will always be your property of the United States. You could get a second mortgage with 2.8% APR, only a fraction of what you will pay overseas

2. Home Collateral.

If you own a property in the United States, lenders in some countries, particularly international banks, will allow you to put that into collateral. You will have to establish that the property is free from liens. A lien will be dissuasive to the approval of your mortgage application.

3. Focus on International Banks.

When you begin to explore your financing options abroad, you must first visit the branches of foreign banks in the area where you are buying. If the same bank operates in the United States, they will have a better understanding and access to the facts related to your financial situation back home. You can even visit their branches in the United States to know your options.

These options would be effective if you work on your credit. You need to improve your credit rating when applying for a mortgage in the United States after foreclosure. The same is true anywhere in the world.

Over the years, real estate has been pushed as a better investment to stock. With so many differences as wide as the fact that real estate is a solid, physical good while stock isn't, it's hard to see the similarities between both types of investments. An investment in real estate is similar to stocks, in the sense that, there are both negatives and positives, there is an amount of risk involved and there are no guarantees. However, comparing real estate and stocks over many decades, real estate has performed better in generating consistent wealth and long term appreciation for millions of people. But as mentioned earlier, there are no guarantees. Here are five important factors new investors should consider when buying a home abroad.

Factors To Consider When Buying A Home Abroad

1. Availability of good real estate agents. Hiring a good real estate agent is the single most important thing you'll do as a foreign property buyer. Hence you need to verify that these agents can deliver excellent service. This service will usually include post-purchase assistance. Your real estate agent should be able to help with service connections, home improvements and other requirements after the sale. A good real estate agent will also provide practical help and support. So ask questions and verify what your agent can help you with to ensure smooth purchase process.

2. Insurance. Few things done right will save you the hassles when buying property abroad. One of those things is getting coverage. This is particularly true of vacation home owners who might have to leave the property in someone else's care and investors dealing with tenants. Building insurance is a must for foreign property owners in some countries e.g. South Africa. But don't stop there! Get insurance for the contents of your home. While seeking insurance cover, check around. If you can find an insurance company with base in your home country, then go for it. If not, then settle for local insurers.

3. Property improvement. It's a given that you might not like some of the props and arrangement of your new overseas property. So, many new investors go along with renovation ideas and plans. However, home improvements can eat up your savings. Hence, before buying any overseas property, get a reputable appraiser. Don't expect to meet the property in tip-top shape. But if you'll be spending too much on repairs and renovations, then it's a bad deal.

4. Security. How secure is your new property? If there have been record of burglaries in the house, then having a big padlock might not cut it, you might need to move on. You need to determine how secure the area is. Your real estate agent might not disclose this information, so personal research is necessary.

5. Climate. You don't want to buy in an area prone to floods. Regions of extreme hotness or coldness are also out of the question. Look beyond how cheap the property is and get a house in an area you'd be able to 'survive' in.

These are just some basic factors you already know you should consider. But it's easy to take them for granted.

Money-saving tips for work-related travel

Travel is exciting, whether for work or personal reasons. While traveling for work should sound stressful, strangely it usually isn't for many millennials. Add in the perk of having your trip financed by a third party, probably your company or client, and it might get way too exciting. So much so that you start dipping into your own cash reserves.

While you may not be the one spending the money. Traveling overseas for work presents a great opportunity to save up some cash, probably enough to travel again in the future.

The first step as with any frugal spending approach is to sit down with pen and paper and examine your budget; what is essential and what is trivial. What can you live without and what is crucial. Keep these four money tips in mind when next you're traveling for work.

- Consider going for cheaper accommodation. An economical option might be opting for short-term Airbnb units instead of expensive hotels. There are also services, like Homestay, which allows you to stay with a host in your destination for a reduced price. Often, you get to mix with the locals and actually experience what living in that city or country feels like. However, ensure to find out if this wouldn't be in violation of company policy.

- Check out cheaper airlines. You can snag a deal on flights and other essentials with a service like Lowfares that allow you to compare rates on airfares, hotels, and car rentals. Another tip is to travel during off-peak periods.

Generally, weekdays, especially midweek, are a great time to secure cheap rates. FareCompare CEO, Rick Seaney, in an article on USAToday https://eu.usatoday.com/story/travel/columnist/seaney/2018/01/02/best-and-worst-days-fly-2018/995658001/ , puts Jan 9 - March 16 as the cheapest times to fly through Europe. Since prices drop as much as 40% over holiday fares.

- Cut back on restaurants and drinks. Money spent on food per day can easily add up, especially when you're not the one spending. However, it only takes a little discipline to be thrifty and get some cash saved. One tip is to plan out what you'd eat every day and how much you want to spend. Don't get too cut up in the local cuisine, while ignoring your pocket. An advantage of a service like Homestay is that it allows you to spend little on food.

- Teach a language or offer a service. You can try a service like Diverbo, which will cover some of your vacationing costs and in exchange, you help locals with their English. AdventureWork shows listings of jobs in the adventure space. Folks literally pay you to teach skiing and snowboarding etc. You can also babysit or teach a language. https://www.forbes.com/sites/laurabegleybloom/2016/07/27/23-companies-that-will-help-you-travel-the-world-for-free-and-maybe-even-pay-you-to-do-it/#4e5d1881e0fd . So, if you have some free time on your hands, you can consider offering a service or volunteering.

There are also discount services or loyalty rewards on hotels and fares. You can take advantage of these if you frequent the same location multiple times a year.

Traveling overseas for work presents an opportunity to work, have fun and maybe get enough money saved up to finance your next travel.