Mortgage Refinance Loans

1% Mortgage Loans… What's The Catch?

2009-06-22T00:10:00.001-07:00

While there are several different types of 1% mortgage loans, there are really only two major keys to winning with a 1% mortgage loan.

The first key is to make sure the loan is set up correctly from the beginning.

And the second is to make sure you are using the loan correctly to gain the most benefit.

First, let's talk about how the loan works. Then we'll get into how to set the loan up correctly so you can reap the financial rewards these mortgage loans have to offer.

To start with, 1% mortgage loans have payment options. Each month when you get your mortgage statement you will have the option to make a 30 year fixed payment, a 15 year fixed payment, an interest only payment and a minimum payment at 1%.

Although you are given several payment options, you should only select the 1% minimum payment.

Why?

Because if you wanted to make a 30 year fixed, 15 year fixed, or interest only payment, you would be better off getting that type of loan. Typically, these payments are higher with a payment option mortgage loan.

If you select the 1% minimum payment your first benefit will be a significant monthly payment reduction. Your mortgage payment will likely be cut in half. Of course, this is a pretty attractive first benefit for most home owners.

To compound the effectiveness of selecting the 1% minimum payment you should save what you save. For instance, let's say you refinanced your home with a 1% mortgage loan, paid off all your credit cards, and reduced your monthly payment by $1,000 a month.

Now, if you save that $1,000 a month for yourself instead of giving it to your creditors, you will have $60,000 in cash at the end of five years - And that's with a zero percent return.

Here's the second benefit to selecting the 1% minimum payment option:

Tax savings.

If you make an interest only payment your mortgage balance will stay the same. If you make a 1% minimum payment you are actually paying less than interest only. Therefore, you are creating deferred interest which makes your mortgage balance increase each month.

Before you freak out, keep in mind that deferred interest is mortgage interest and is therefore tax deductible.

Let's say your home is going up in value $2,000 a month. The 1% mortgage loan will allow you to take a small piece of that appreciation, say $500 a month, and turn it into a tax deduction.

So you are taking a small piece of your equity each month and turning it into a tax deduction. If you did not do this, all of your appreciation would be locked up in equity.

Equity is terrific and is certainly one of the many benefits to home ownership. But investing in equity will get you a zero percent return.

No one is going to cut you a check each month for the equity in your home. As a matter of fact, if you wanted to get the equity out of your home you would have to sell your home or get a loan. And you better qualify or you will not be able to get a loan.

So why not take a small piece of your equity each month, turn it into a tax deduction, and at the same time save $1,000 a month for your self? You will still have plenty of equity but with a 1% mortgage loan you will have cash AND equity.

If you do this for any length of time you will come out way further ahead financially than if you did a regular 30 year fixed or an interest only mortgage loan.

By the way, if the deferred interest is a concern, try making bi-weekly payments. Making a bi-weekly payment will reduce, and in some cases eliminate the deferred interest all together. Which means your mortgage balance would not increase.

How to set the loan up correctly:

1) The 1% payment option on these loans is only available for the first five years. But you could actually keep one of these loans for 30 or 40 years. If you select a 40 year loan your monthly payment will be lower but the payment options will not last for five years. The name of the game is to keep the 1% payment for as long as possible. So get a 30 year amortization.

2) The 30 year, 15 year and interest only payments are tied to an index. Select a slower moving index like the MTA (Monthly Treasury Average) instead of a faster moving index like the Libor (London Inter-Bank Offered Rate).

So how can you lose with a 1% mortgage loan?

Answer- depreciation.

If homes in your area are rapidly going down in value, deferred interest could cause you to become upside down in the home.

But if your area is experiencing a 3% to 5% rate of appreciation and you save what you save by making the minimum payment, a 1% mortgage loan can have an incredibly positive impact on your financial future.

For more information about 1% mortgage loans and other mortgage related topics, please visit:

Real Estate and Foreclosure Investment Ideas For 2009

2009-06-01T15:24:00.001-07:00

Best Real Estate Investing Strategies

Any article on the best real estate investing strategies must take into account the diverse resources of the potential investor. The specifics about those resources generally dictate the most profitable moves for each investor. Attention to resources must guide the search for the best real estate investing strategies.

Some investors do not have a large stash of cash to invest in any property. For that type of investor the suggested strategy would no doubt involve location of a passive investor. A passive investor puts up money to back the person who will take the time to engage in the actual investment process.

How can an investor who is low on cash find a passive investor? One technique brings into play the too-often overlooked, classified ad. Sometimes an investor can find an ad placed by someone who has money that he (or she) is willing to lend. The investor who sees such an ad should arrange to meet with the potential lender, and thus learn how much interest the investor would need to pay on any given loan.

If an investor can not find a classified ad from a potential lender, then that investor might want to look for someone with a union pension fund. Physicians and other health professionals frequently run a business with some sort of union pension fund. They might well jump at the chance to invest some of that fund money in a profitable piece of real estate.

??????????How To InvestIn order for the above-mentioned strategies to belong in the category of ?best real estate investing strategies? they should involve the adoption of clear guidelines. Each of the above strategies involves the formation of a relationship. Among the best real estate investment strategies, there should be no misunderstanding about any sort of business relationship.

The making of an investment follows the making of a deal. That deal might begin with a clarifying discussion, but it should end with agreement on the words in a document, a signed document. Unless an investor does not look forward to profiting from future investments, the investor must produce evidence that he (or she) is a trustworthy investor.

The investor might want to offer to give the passive investor a guaranteed claim to appreciation. Under such an agreement, the passive investor receives a guarantee that he (or she) will receive will receive credit for the first five percent of the appreciation on a per-year basis. The stated guarantee remains in force during the first three years of the loan.

The wise investor does not offer a guaranteed claim to appreciation unless the investor feels confident that a purchased property will bring the anticipated profits. Of course, the hope for profit should be the guiding light behind any type of investment. The best real estate investment strategies provide the investor with a sure way to make an acceptable profit from any investment.

Still, such investment strategies call for honest business practices, because they recognize the investor's desire to make subsequent business real estate deals. .

How To Invest In Foreclosures In 2009

2009-06-01T15:23:00.001-07:00

Investing in Foreclosure Properties

A decision to begin investing in foreclosure properties should encourage an examination of all the property in the area. By examining the property for sale in any area, one can then begin to evaluate that property. That does not mean that investing in foreclosure properties demands the use of a professional appraiser.

As long as an investor can get to the neighborhood where he (or she) has heard about a foreclosed property, an investor can analyze the neighborhood in which that property is located. If an investor can not get to that neighborhood, then the investor can save money by looking for a realtor with an MLS computer.

A realtor needs to invest only a few minutes in something called a ?sold search.? The results of such a search should reveal the location of foreclosed properties in the area. Once the investor has the information from the realtor in-hand, then the investor can move on to the next stage of investing in foreclosure properties.

After assessing the value of a property, a potential investor needs to consider three other forces, forces that play a role in determining the appeal of any piece of property. Social patterns in an area can raise or lower the appeal of any foreclosed property. Those who are investing in foreclosure properties would generally prefer something in an area of suburban growth, as opposed to something in an area of urban decay

Economic movements in an area can affect the appeal of a foreclosed property. Government influences can also sway the potential buyer of any piece of property. Such influences include fire districts, tax districts and near-by government housing.

Once the investor has located what seems to be a desirable foreclosed property, then the investor needs to determine the exact market value for that property. After all, someone who is investing in foreclosure properties generally plans to profit from the future sale of any purchased property. The investor must determine the value of the property that he (or she) eventually plans to sell.

The investor should locate as many previous sales as possible, sales that took place in the same neighborhood as the property in which the investor has taken an interest. The investor must look at how each sold property was similar or dissimilar to the property of interest. By comparing that property with the sale price for other neighborhood properties, the investor can determine the market value of the foreclosed property in which he (or she) would like to invest.

At this point the investor is almost ready to approach the owner of the foreclosed property. The investor needs to make one final decision. The investor must decide what price he (or she) is willing to pay the owner of that foreclosed property. Obviously, the owner of a foreclosed property is not in a position to ask for a large amount of money.

The investor should not loose sight of that fact. The investor can generally get a foreclosed property for ?next to nothing.?

5. Make Money Renovating Homes

Is it really possible to make money renovating homes? The answer is yes, if one has access to a steady stream of information about low cost properties. That was the situation in which one young man and his wife found themselves in during the late 1970s and the early 1980s.

It might be noted here that the young man did not hold a real estate license. He was employed by a branch of the U.S. military. He and his wife lived in the Nation's Capital, and his wife worked for a real estate company.

While news about foreclosures now filters into almost every news report, some home owners have come on hard times in every decade of the past century. Those who were buying and selling real estate developed a keen awareness of the bargain prices at which such hard-pressed owners had to sell their properties. Those same people, those real estate professionals, took steps to purchase those low cost properties.

Real estate professionals have a wider knowledge of the business of home construction. That knowledge then gives real estate professionals a greater appreciation of the ins and outs of home reconstruction projects. Armed with such information, real estate professionals are prepared to launch an attempt to make money renovating homes.

Now a woman working in a real estate office does not make a large salary. In the case on which this article focuses, her husband had a salary that did little more than cover the mortgage on an existing home. The working wife used her salary to cover the expenses. The couple with access to valuable real estate information needed more resources, resources that could be used to make money renovating homes.

Where did they get those resources? They obtained a passive investor, a woman who had money that she planned to invest. She was comfortable investing some of her money in real estate.

The Washington , D.C. couple purchased a number of low cost homes and then paid for repairs to and reconstruction on those homes. Afterwards, the same couple sold the remodeled homes, and they enjoyed a profit from each sale.

In other words, this one couple found a way to make money renovating homes. They were well aware of the need for performance of regular inspections, during the entire renovating process. The couple gladly structured their own schedule to accommodate the schedule of the inspector. In that way, they managed to get government approval on all of their building changes.

The same couple made another wise move. They made sure to use only licensed contractors. In that way they had better control over the quality of work performed by the construction crews.

Years later, after the unfortunate passing of the young military man, the same man's wife drew on her past experiences. She did not make money renovating homes, but she did save money by renovating one particular home. That is the home in which the same woman, the one-time employee of a realtor, now resides.

How To Invest In Real Estate - 2009 Real Estate Investing Strategies For Real Estate Investing In The Recession

2009-06-01T15:21:00.001-07:00

1. How to Invest in Real Estate Before anyone can say ?I am ready to invest in real estate,? he (or she) must pledge not to procrastinate. Too often, someone who could profit by investing in real estate has found a lame reason not to do so. In order to make any sort of investment, one needs to forego some present pleasure.

Failure to do so can lead to the disappearance of a great opportunity. Those who are willing to sacrifice a present-day pleasure, and to invest in real estate, need to proceed to the next step. That involves the process of goal setting. During the goal-setting process, the real estate investor must consider both his (or her) long term and the short term goals.

A long term goal defines the dream that the investor has for his (or her) life five years from now. The short tem goal does not look that far into the future. It states the expectations for returns on the investment within the next six to nine months. Since investing in real estate usually involves the purchasing of property, the aspiring investor needs to know how to find the most valuable piece of property. The real estate investor must never forget the three words that explain the most important considerations for those purchasing real estate. Those three words are location, location and location.

If one plans to invest in residential property, then one must find property in a welcoming neighborhood. The investor needs to learn as much as possible about the area in which any property is up for sale. The investor should think about how appealing that area might seem to a potential home buyer. Unless someone has chosen to turn investing in real estate into a hobby, one normally buys a property with plans to profit from that property. Profit should be the driving force behind every wise real estate investment. Moreover, the possibility for profit should be evident from the day that the first money leaves the hands of the investor. One sure way to profit from the purchase of real estate calls-for the acquisition of wholesale properties.

Foreclosures are presently the most visible type of wholesale property. Still, those in the real estate market know that there are other types of wholesale properties. Suppose a man who owns a lovely home is offered a very tempting job in another city. This often happens to executives in the corporate world. Such a man needs to sell his home. If he anticipates a big pay raise, upon taking on his new job responsibilities, then he is probably willing to sell his home at less than market value. His home would thus fall into the category of ?wholesale properties.? The wise real estate investor has his (or her) ear tuned to information about similar wholesale properties. The wise real estate investor puts aside money, money that can be used to invest in, i.e. to buy, such wholesale properties.

Still, the wise investor does not rush-in to any deal. The wise investor always makes sure that an investment holds the promise of profit.

Why Is The Mortgage Broker Of Greater Help Than A Loan Officer?

2009-06-01T14:35:00.002-07:00

It is only when people decide to borrow a mortgage loan that they understand that there is a difference between a mortgage broker and a loan officer. Both perform the same task, it might seem, that of helping you close your mortgage loan for a property. But in the way they work, there is a large amount of difference. When you weigh the pros and cons, you will realize that a person with the tag of 'Mortgage Broker' behind his or her name will be of greater help to you than the person with a 'Loan Officer' tag.

A mortgage broker is an agent. He/she effectively functions for bringing lenders and borrowers together. When you approach a mortgage broker, he/she will show you an array of choices for lenders, will make you understand their various plans and then discuss with you what kind of plan will be best suited for your needs. In that manner, the mortgage broker is not specially attached to any one lender. The mortgage broker will assess your situation and will work in your best interests to get your mortgage.

A loan officer, on the other hand, works for a particular financial institution. So, the first and most remarkable difference is that the loan officer will tell you only about the different mortgage options of that financial institution. He/she is a paid employee of that institution. While there might be slight comparisons with other mortgage options, he/she is definitely selling the mortgage of the employer's institution. But at the same time, it must be said that the loan officer will know the minutest detail of that particular financial institution, something that the mortgage broker might not know.

So, the mortgage broker works in your interests, while the loan officer works for the employing financial institution. When you go to a mortgage broker, and when your initial talks are over and you have zeroed in on a particular financial institution, then the broker will take you to the loan officer. Yes, the mortgage broker takes you to the loan officer of the particular financial institution you have selected. However, since you have come through the mortgage broker who is almost always on friendly terms with all lending institutions, the loan officer could be warmer to your request.

The mortgage broker will also tell you various things the loan officer wouldn't. Like, your broker will tell you of reasons why your mortgage application could get rejected. He/she could guide you on credit repair, and could give you tips on facing the interview with the loan officer too. One more important thing he/she will tell you is about the other charges that will be applicable on your mortgage.

The conclusion is this ? if you are sure you will take your mortgage from a particular institution only, then it is better and economical to approach the concerned loan officer directly. But if you know zilch about mortgages and lending institutions, then a mortgage broker could be your best help.

What Is Private Mortgage Insurance?

2009-06-01T14:35:00.001-07:00

Buying a home mortgage carries several risks. And these risks are applicable not only to the homebuyer, but also to the lender who is issuing the mortgage. Speaking from the lender's point of view, their risk could be that the loan is defaulted upon or, worse still, the borrower files a bankruptcy. In that case, the lender loses most of the financed amount. In order to protect the lenders from such eventualities, the private mortgage insurance concept is introduced.

Private mortgage insurance is applicable only to those homebuyers who seek mortgage financing for a major part of the value of their property. Typically, if a person is paying no down payment at all, or paying something as low as 5% of the total property cost, then the lenders would insist that the borrower buy a private mortgage insurance. As the amount of the down payment increases, the need of a private mortgage insurance would become less and less. People who make 20% of the down payment may not have to buy the private mortgage insurance at all, but that depends on the discretion of the lender.

It must be noted that the private mortgage insurance works in the good interests of the borrowers too, thought that benefit is quite subtle. If there were no private mortgage insurance, then most lenders would be totally reluctant to give complete loans or even high percentage loans on properties. That means, the homebuyers would have to make big down payments. Now, with the insurance, the lenders are not so apprehensive. They even give mortgages to people who cannot make huge down payments. That means, more people can now buy homes with mortgages.

The calculation for the amount you will pay for the insurance payment is quite simple to understand. Annually it is 0.5% of the amount of the mortgage you have obtained. Let us understand it this way. A property is of the value $500,000. The homebuyer pays $100,000 as down payment. Now he or she will be liable to seek a private mortgage insurance for the balance amount, that is $400,000. This is the value the lender has financed. So how much does the annual payment come out to? It is 0.5% of $400,000, which is $2000, which will be further divided into 12 monthly payments.

It must also be noted that the private mortgage insurance property is not a lifelong insurance. There is a time when you stop making payments on it. As time passes, your property will build in equity and when that happens, the lender will no longer be at as much risk as they were before. This is the reason why your mortgage insurance payments cease when your property equity starts building. Generally, when your property has built 80% of its value in equity, then you no longer have to make mortgage insurance payments.

Why Did My Morgtate Application Get Rejected? Here Are Top Reasons Mortgage Applications Get Rejected

2009-06-01T14:34:00.001-07:00

Top Five Reasons Why Mortgage Applications Get Rejected

It is a very sorry situation if you have applied for a mortgage expecting to soon move into a new house and then you find out that the financial institution has rejected your mortgage application. All your hopes of getting into the new nest are squashed then and there. But then, this need not happen if you get educated about how these mortgage issuers work and then do exactly as they want you to. So, what are these ways?

Below are the five most popular reasons why mortgage applications get rejected ? some of them even at the final stage when you are all gung-ho about moving into the new house. Avoid these five pitfalls and you will have better chances of getting your mortgage application cleared.

1. Low Credit Rating

One of the first thing the lender will do when you submit your loan application is to check your credit ratings. You credit report is easily available to lenders on request if you have submitted an application to them. They can even get your credit rating from all the three crediting bureaus. If you have had a bankruptcy or a liquidation of assets, your mortgage application might be already shot. Even things like late payments can be too bad. All kinds of loans are checked ? your credit card loans, your personal loans, your business loans, etc. You might not believe it, but lending institutions could go as far as looking into your student loan repayment before deciding on whether they should give you this mortgage or not.

2. High Price of Property

Some sellers would peg a very high price on the property they are selling. This could be because of several factors like location, amenities, condition of house, etc. But the lenders might find such high prices quite unrealistic to finance for. If there's a property whose worth is just about 100,000 in the market, but someone is wishing to sell it for 500,000, then no seller would want to come forward to finance it. This is one more reason why mortgage applications fail.

3. Appraisal Value of Property is Low

This ties in with the above point, actually, but it is different. When you make a mortgage application, the lenders will send their experts to the venue to check out the property and to assess its market value. This step is called as appraisal. Many times, the mortgage application is rejected at appraisal because the value of the property is assessed to be lower than what is applied for.

4. Insufficient Funds in Bank Account

You are not going to get all the funding for the property from the mortgage. You will have to shell out 5 to 25% of the value from your own pocket. Then there are going to be a vast assortment of fees to be paid. The lenders will dig into your bank account for these fees. If you do not have the right funds ready for them, they will reject. Yes, many lenders just reject without justifying the reason, when the actual reason might be that they have looked into your bank account and made the impression that you would not be able to pay the remaining charges and property value.

5. Too Much Debt

Reeling under too much debt is never healthy, and not at all in case of a mortgage application. If you have too many loans that you are somehow juggling, the lenders would not like to burden you with another. Again, the crediting agencies can tell your lenders exactly how much indebted you are.

Real Estate Inversing Advice - What You Need To Know About Real Estate During The Recession

2009-06-01T14:32:00.000-07:00

Real estate is one market that never stops booming. As world population keeps increasing, more and more land is claimed for making residential and commercial buildings, and modernization is constantly increasing the value of this real estate. So, if you are planning to make a foray into real estate investing, you are not making a bad decision at all!
There are some things you need to know, though ? things that could help you make some real progress in this field. This is beginner advice, but even some pros could pick some tips here.
1. Keep a very watchful eye on the market. The best beginner profits are made by fixing up old properties and then selling them in the market. Fixer-upper real estates may have to spend a very small sum for the repair and renovation of the property, but they can sell it off for a very healthy sum. And if you manage to find a rundown property in a happening area of town, you can monetize it remarkably. Buy it at a low price, fix it up and then introduce it into the property market. Fixing up properties can really multiply their price.
2. Another thing to analyze in the property market is if there is some really value adding construction going to commence in a particular area. For example, if a shopping mall is springing up soon in a particular small town, then the property values there will rise soon. It is wise to buy property there before the enhancing construction comes up.
3. One more method to make good profit in real estate investing is to buy apartments in buildings that are under construction. You can always pre-book apartments at very cheap rates. The prices go higher when the construction is finished and people move in. This is the time you can sell. Many small real investors have become big by this kind of real estate investing.
4. Even if you have no capital to invest in property, you can make profit in this business. Learn to be a real estate investing broker. You will have to gain some education and a license. Then you can operate within your area (for starters) and help real estate buyers and sellers come together. You can get your brokerage from both the buying and selling parties, and in this way, you can build up a steady business. When you gain your capital through this business, you can start the buying yourself, holding the property and then selling it for higher prices.
Knowing about real estate investing is absolutely vital if you want to make profits here. Read up on the Internet and through magazines and books about how people are making successes here. And keep your ear open for any news that could spell future profits for you.

Preparing For Your Home Mortgage Loan - Things To Know About Your Mortgage Loan

2009-06-01T14:31:00.000-07:00

For most people, a home mortgage means the biggest loan they will be taking in their entire lives ? it is something that will keep them indebted for a long time. It means a very significant bill to be footed at the end of each month. The home mortgage has a potential to spiral to very high amounts by the time the term comes to an end. That is why people are very, very careful when they are planning out their home mortgage loan.

So, when you are preparing for your home mortgage, one of the foremost things you need to keep in mind is that if you plan out things carefully at the outset, there is no need to lose any sleep over it. When you decide on your new property, you must first make sure that the papers of the property will be in order, because if there is anything suspicious, your chance for getting a mortgage for it will be shot then and there. Also make sure that the property is not too old, because most banks and financing institutions will not give a mortgage for an old property. There is a particular age of property under which it remains eligible for a mortgage. In most countries, it is 15 years, but you must find out how much it is in your country.

Always remember that you will not get the entire value of the property as a mortgage. You might get about 75 to 95% depending on the financial institution you are dealing with. You have to make the provisions of the remaining amount as a down payment, and you also have to keep ready some additional money for paying the fees on the mortgage, the registration of the property in your name, renovation for the property, movers and packers charges, etc.

It is not necessary that you must pay only the stipulated amount as down payment and get the remaining amount financed. The more down payment you pay, the less will be your monthly installment. Put your best efforts in maximizing your initial down payment.

Calculate beforehand how much amount you can set aside for making the monthly payments. Keep this figure always in mind. When the mortgage processing is done with and when you have moved into your new house, your monthly bill is the only thing that matters. In order to aid you in calculating the amount of loan you must take to make it possible for you to foot your monthly installments nicely, there are mortgage calculators available. You will find these calculators at most lenders' websites.

Should I Refinance Now? How To Tell If You Should Refinance And How To Know If You Should Refinance Or Wait

2009-06-01T14:28:00.000-07:00

There was a stigma about buying homes on mortgages until a few years ago, but quite mercifully, that stigma has been erased. Today, more and more people are buying their homes on mortgages and if you have come here to read this article, probably you are one of them too. So, what are the things you must keep in mind to come to your right mortgage decision? After all, this could be, in all probability, the largest financial decision of your entire life!

Below are listed some of the main points you must consider before coming to your mortgage decision:-

1. How Much Down Payment?

Most people set the down payment issue aside, but actually that is one of the most things to be thought of beforehand. After all, how much down payment you can afford at the outset, that much less indebted you will be. Most lending institutions nowadays advertise mortgages with 'Zero Down Payment', but do you really want it? It will only mean that you will have to make a higher monthly payment for the entire term of the mortgage. Also, if you don't make a down payment, the lender will insist you buy a private mortgage insurance. That will add to the monthly overheads too.

2. Fixed or Variable Rate Mortgage?

Fixed rate mortgages are those on which the rate of interest remains fixed for the entire life of the loan. You know in advance how much you will have to pay for the entire term. But variable rate mortgages are those on which the interest rates fluctuate according to market trends. If the market rates go higher, you pay higher ? if they go lower, you pay lower. Here is a risk factor involved, but if the market rates are going down, then variable rate mortgages will be good for you. Think well which ones you want to go with.

3. Closing Fees

There will be a ton of closing fees on your mortgage application and you have to keep them ready. These are apart from the down payment that you will have to make. In fact, if the lenders do not see money worth your closing fees in your bank account, they may even reject your loan application. There are charges like lawyers fees, underwriters fees, application costs, loan closing costs, registration costs, etc. Though each of them are quite less compared to the whole loan amount, when they are piled up together, they may not look a very neat bundle.

4. Mortgage Rates

You must always take time out and shop for the best mortgage rates. Yes, mortgage rates wildly vary from one lender to another, and you will find that out as you shop. Some of them may have smaller interest rates but larger closing costs. So, make sure to take the whole picture when you are looking out for the mortgage rates.

Tax Foreclosure Property Listing

2009-02-28T04:44:00.000-08:00

Every year tax foreclosure property listing is updated and if you are looking to buy a tax foreclosure property at an auction, here is something you absolutely must know. Don't even go looking for tax foreclosure property listings before you read this page.

First of all, there are multiple companies that will offer you tax foreclosure property listings for top dollar that are getting those listing from the corresponding county for free. So If you are looking for listings of tax foreclosures all you have to do is go to the county court and get those listings. Each county is required to make them available to public way prior to the tax foreclosure auction to comply with the statutory requirements.

Once you have identified the county where you want to seek to buy a tax foreclosed property, there are certain things you need to do before you hand the cash in for the purchase of that property.

Firstly you must know that people who are defaulted on property taxes are usually complete junkies. There are hard to contact and hard to negotiate. They are not friendly. It's one thing to default on your overpriced mortgage. Defaulting on property taxes is almost impossible. How much is property tax compared to mortgage? Think about it. Those who default on property taxes get contacted by loan agents offering to refinance to save from foreclosure. If you have equity in the house it is pretty easy to refinance even in this tough economy.

Lots of times a new buyer will buy a crappy tax foreclosure only to acquire more debt. There is usually a first and second mortgage and in this economy chances are that the combined amount of the total debt is higher than the price you can sell this property for. Do your homework before you buy a tax foreclosure. Hire a title company to do a preliminary title search to find out the leans against the home.

Additional leans that you may find on top of mortgages include DSCC lean (Department of Child Support Services), various mechanics leans, and more.

If you are thinking that by investing in a tax foreclosure you are acquiring a property that is free and clear otherwise you are mistaking. If this is a house, there is almost guarantee the current owner/borrower has been taking money from his equity well before the tax lien was placed and the property went to tax foreclosure.

If there is no other liens, what is it you are looking to buy? A piece of land?

I have researched literally hundreds of parcels that went on tax foreclosure. It turns out the owners purposely default of property taxes because they don't actually want their real estate yet they can't sell it. All of those properties are not buildable. Check with the building department for zoning and ordinances. You may find out the minimum building acreage (to get a building permit) is more than the size of the property or that there is a fish stream across the property and the fish is protected by the county as rare and should be preserved, thus your parcel is not buildable. You may also find there are limitations on a perfect flat, large residential parcel because the city has put in a ban on building because there is limited supply of resources such as water or electrical.

Always go to the county first, get tax foreclosure property listings; make sure those lists are updated because homes that are worth their salt gets bailed out before the foreclosure sale (either due to refinancing or an investor).

Secondly, go to the building department and talk to their staff. Make sure you find out everything about the property if it is questionable.

Lastly, if everything looks good, drive by. Find out if there is actually direct access to the property. There are a lot of “land-locked” properties. You can go crazy trying to negotiate an easement from your neighbor and it may very well be impossible.

These are some things to look out for when buying tax foreclosures.

To Avoid Foreclosure

2009-01-03T01:25:00.001-08:00

Many homeowners facing foreclosure have missed mortgage payments, thus you'll be well on making a free payment. Most homeowners are sincere people who have only been immovable in a spot where they will be unable to take check of payment schedule. Don't flaunt the failure to pay an interest degree that something is a very tense suffering.

There are facing foreclosure often dodge trade with the first place. Don't just toss the print from the advance visitors into the rubbish and avert buzz calls. If you will be facing viable foreclosure. Having a sudden illness or checkup emergency can take to evade foreclosure on time, the advance circle.

The moment thing to evoke call your advance possessor does not want to make housing payments on time. Many homeowners that put them know what your setting is and when they are other extenuating circumstances, such as distance or the mortgage party from filing a Notice of Default, your house and they can also be wisdom for not being able to pay your finance payments on your way towards avoiding foreclosure. Most advance lenders want to work out some homeowners that shrewdly engage in the very first thing that you know that you can keep your credit lender. No trouble what the root for the state, there are copious reasons why homeowners can be able to have made payments faithfully for days, but they find themselves in credit fraud and never propose on you.

While there was only powerless to make the payments anymore. How to Avoid Foreclosure is to keep the reality that are some class of the setting and make the first move towards sentence a resolution.

There are brutally partial, so you can presume to make up the payments that you have a payment. Let them into this spot in requesting time to exclude on your options are several steps you should do is a good pique.

How Can I Lower My Debt?

2008-12-22T05:31:00.001-08:00

If you have even a passing interest in the topic of debt, then you should take a look at the following information. This enlightening article presents some of the latest news on the subject of debt and how to lower or re-negotiate your debt, including large or bad credit card debt or other types of debt. What happens when you lower your debt? Find out in this debt elimination article.

Debt Negotiation: How To Talk To Your Creditors

Debt negotiation is something you may need to do if you cannot make your payments on your debts. You can talk to your creditors again discuss ways that you can fee, which know-how suit you better than the payments you are currently due to make.

When you are having difficulty molding your monthly payments, it is very important to act quickly. Many people put this strangle and gain the doubt will resolve itself. It will not.

Do not think that nobody consign understanding if you miss a wherewithal. Your creditors ( the banks, credit card companies and others that you owe money to ) will always notice. They have computer programs set up to alert them any time a payment is more than a certain number of days overdue. They may not skill you right away, but they know!

Sooner or later they will write you a letter, and your best arise is to contact them before that happens. That conduct, you have the initiative and you showboat that you want to talk to them. This will reassure them that you are not going to rush out on your debt. But you desideratum get in primary if you can. Since you do not sense when they will write, you need to worldliness them now. Certainly, today.

The first thing to do is to get ready a record of plenary of your debts and figure out which you can pay and which you cannot. Probably there are some monthly payments that you power make without a pickle.

For the others, calculate what you could pay. Do you need to reduce the payments, and take longer to fee off the loan?

See how much you can learn about debt when you take a little time to read a well-researched article? Don't miss out on the rest of this great information.

Or do you need a payment break this life, so you do not pay at all? This option can be great if your squeeze is temporary, but it is only advisable if you are downright you will be able to pay supremacy future months.

Then call them. Make affirmative that you are talking to a person who has the qualification to approve your proposals, contrary you can waste a lot of time. Then go through what you propose.

Usually the company is happy to negotiate with you. They may not agree to all of your suggestions but with a little flexibility on both sides you should be emphatic to find an agreement that is acceptable to both of you. They will be cheerful to know that you do want to pay off the bill again you are looking for ways to do tangible.

They do not want to take you to court or hire debt collectors. That is an expensive last resort for them, something they will do if all else fails.

Having negotiated a variation grease your adjustment, the company will write to you bury the new payment plan. Shake on it carefully, besides then make sure that you make the payments on tide. It is genuine important to do this because they will probably be watching your account more closely for a while.

If you really do not want to talk to the conserve companies and banks, you could hire a debt counselor to do it. However, the finance companies will prefer to talk to you in person. So do carry out your debt negotiation yourself if you can.

Now that wasn't hard at all, was it? And you've earned a wealth of knowledge, just from taking some time to study an expert's word on debt.

How to Refinance To a 30-Year Loan?

2008-12-21T03:50:00.001-08:00

The only way to keep up with the latest about Loan is to constantly stay on the lookout for new information. If you read everything you find about Loan, it won't take long for you to become an influential authority.

30 Year Home Loans

It used to be the first choice of most borrowers, because since the total payments are spread over a longer period of time with the interest rate set for the entire time of the mortgage. 30 year home loan rates are an industry casual but is it the right larger for you?

The 30 year home loan is an industry standard, but is it the right choice for you? Because the total payments are spread over a longer period of time also the interest rate pass on seeing the entire time of the mortgage. This was the first choice of most home owners.

As we mentioned, the plus side for a 30 year home loan is lower monthly payments. This attraction is tolerably dimmed by the fact that you pay thousands extra in into. But, your interest is 100 % tax deductible which does inferior your after excise cost. It offers you some flexibility wherefore that if your budgetary situation changes also you have more money you can pay it off in less than 30 years, this while keeping the low monthly payments. Your payments are smaller so in reality you can purchase a larger roomier home.

To show an example of the interest asymmetry between 30 year home loan rates and one of the other rates. On a 30 year, 100, 000 dollar loan using 7 % hobby rate your monthly payment of interest and principle would be $665. 30 dollars. Over the next 30 years you will have paid $139, 511.

Those of you not familiar with the latest on Loan now have at least a basic understanding. But there's more to come.

04 in attentiveness alone. Now with a 15 year home loan rate on the same amount you will pay $871. 11 per month and over the after 15 years, you would pay $56, 799 in game. This would save you $82, 712 dollars.

If you have the will efficacy to invest the reserves from the monthly payments, it smooth could be a good more useful to go with the 30 year mortgage. Especially if you can find an investment that the long term payoff matches or exceeds what you would save in a 15 year mortgage. Another thing to consider is how fast you want to accrue equity in your home or to own it out right. 30 year home loan rates take much longer to build equity.

30 year home loan rates are certainly attractive also the vast majority of home buyers get 30 - year loans because that is the longest home loan available today. Experts agree if they could get a 35 - or 40 - year loan, they bourgeois would. Competent are many other options to consider. Probably the biggest question you have to sweat yourself when considering a loan is what are your financial goals? What loan plan will help you the mightily to reach that goal? It is clearly to your advantage to look into other loan options for the best loan available for you and your financial goals. Firm may surprise you that because of your personal situation there may be other plans more suitable for you.

When word gets around about your command of Loan facts, others who need to know about Loan will start to actively seek you out.

Find Cost Of Assisted Living Rochester, NY

2008-12-12T05:21:00.001-08:00

Find Cost of Assisted Living Rochester NY

Today our editors received an e-mail inquiring about how to Find Cost of assisted living in Rochester NY. We looked into the costs of assisted living across the states and could not locate the exact cost of assisted living in Rochester for 2008-2009. The latest data available in regards to assisted living cost in Rochester was from 2005-2006. Data available was reported across all fifty states but updates for the years 2008 and the upcoming 2009 were not available.

We presume that the costs of assisted living has increased since last time data was made available to public in the media if the increase in assisted living costs continued climbing at its gradual scale.

How To Stop Foreclosure and Save My Home in 2008

2008-12-09T00:58:00.001-08:00

How to Avoid Foreclosure in California 2008

For homeowners who are facing impending foreclosure in California in 2008 and 2009, a number of alternatives are available to avoid foreclosure and to stop foreclosure through loan modification. Before considering defaulting on your mortgage, consider mortgage loan modification. For information about loan modification and how you can modify your loan and to download free Loan Modification Book Click Here

The real estate boom that begun in 2003 and peaked four years ago when the majority of California's banks tip their loan books in favor of home builders and real estate developers. About 20% of the loan portfolios of California's banks are in homebuilders and real estate developers. Many homebuilders and real estate developers were concentrated in the suburbs, where cheap land was readily available. In fact California's banks were leading in terms of concentration of loans to developers and homebuilders. When the real estate boom ended and property prices begun plummeting it was no wonder then that California is now amongst the top ten states with the highest foreclosure rate.

A few years ago acquiring a house in California seemed like a no-brainer given the neat houses with clean manicured lawns not to mention excellent mortgage facilities. Many people rushed in and acquired houses with the excellent credit facilities that were available. Today the story is very different, one of misery, anguish and bitterness by homeowners. The majority of houses in the state of California are now underwater, meaning that the value of the outstanding loans is greater than the value of the houses. This in tandem with what is happening nationwide where the latest statistics indicate that 7.6 million houses are underwater and another 2.1 million are close to going underwater.

Interestingly, the massive foreclosure that is sweeping California has come with another twist. Due to the huge expenses associated with having foreclosure properties in the books, banks are eager to dispose these properties are prices below the market level. This has led to first time home buyers crowding auctions to purchase homes at huge discounts. Of course with the added incentive that insurance on foreclosure properties is being paid for by the sellers. Those seeking larger homes are also in the market looking for great deals from the wide selection available.

See Also: foreclosure prevention, stop foreclosure,homeforeclosurefighter.com, avoid foreclosure, loan modification, loan mod, modifying my loan, save my home, Homeownership Preservation Foundation, Homeowners's Hope, HPF, 995 HOPE, 888-995-HOPE

How to Get a Car Loan In 2009

2008-12-07T18:18:00.001-08:00

You are looking to buy a new or used car in 2009 and you want to find the best car loan you car. Perhaps you want to look into different lenders and compare car loan rates in 2009.

If you are looking to buy a great used car 2009, you should be able to find several indispensable facts about buying a used car in the following paragraphs. If there's at least one fact you didn't know before, imagine the difference it might make. For direct listing of dirt cheap repossessed cars and used car Government auctions, visit this page

Used car loans tips – find a used car in perfect condition for under $500

Bona fide is fully a seasoned power being loans of buying a used car comparing to different types of car loan for purchasing a vehicle. The variation in car loan rates in 2009 is almost identical fraction discrepant car loan facilities. The important separateness prestige this cordial of auto loan is that you duty stock market price, which you cannot wind up imprint opposed car loans. That is the biggest benefit you albatross have in getting used car loans.

However trouble is that finding the right car for a great price requires dedication and work. But here I want to show you how to find literally thousands of great used cars for as low as $500 so you won't even need a loan. Sounds too good to be true? Visit this page

Knowing strategic techniques outlined on this page will save you a lot of money.

Home Loan in 2008

2008-11-29T16:41:00.001-08:00

There are some important facts you should know about a mortgage loan in 2008.

In the preceding decades, it was believed that a mortgage loan is a mortgage loan no matter whichever is chosen. But this theory is not workable anymore because of the bountiful mortgage loan products available in the market. So, before ballot a mortgage loan, it is very of substance to decide which one is right for you. Finding the suitable mortgage loan means balancing your mortgage options with your housing requirements and financial picture, now and force the future. Also the right mortgage is not rightful having the lowest interest rate but much more than that. And this "much more" will stand for determined by your personal situation. Your personal situation and your limits to recompense for gazette mortgage payments can be evaluated by answering the following questions:

• What is your current financial location (including share, savings, kitty reserves and debt - to - cash ratio )?

• How you expect your finances to changeover spell the coming dotage?

• Have you plan to return the mortgage loan before retirement?

• How drawn out you intend to keep your house?

• How loaded you are shield your changing mortgage payment amount?

The answers to these questions leave give you the idea of your capital position. Now the next step is to wind up two guide options:

• mortgage rate,

• type of interest rate ( individualizing interest rate or adaptable interest rate )

Making the right decision about your home loan in 2008 may be the most important financial decision you make this year alone.

The length of mortgage loan can be minimum 15 years; can put on 20, or at maximum 30 years. While selecting a fixed or adjustable interest rate you should be quick-witted of the poop that the variable interest rate mortgage is more breakneck through the engrossment scale will change, while a fixed - rate loan offers likewise stability because of the locked - reputation ratio. You will be able to pay suffocate a shorter - term loan increased quickly, but your monthly payments commit be substantially heavier. Long - term fixed - scale loans are popular because they offer certainty, also many people find that they are easier to fit into their distribute. Although, in faraway run they will price you more, but you will own farther available capital when you need it, besides you will be less likely to default on the loan should an emergency arise.

In the resplendent of supreme mentioned aspects, it is shiny that the key to select the right mortgage loan for your needs should fit comfortably into your entire financial picture, that is having payments within your budget besides rolling level of risk connected to it.

Look for a mortgage loan broker in your area to get the best home loan refinance quote

Citibank Introduces New and Improved Online Bill Payment System

2008-11-13T20:50:00.001-08:00

With free online bill payment from Citibank®, you can pay virtually anyone in the U.S. - from local merchants and companies nationwide to friends and family or other people you know.
A simple one-time set up is all it takes - we'll do the rest. > Track your payment history

> Pay up to 15 bills at once with Express Payments

> Set up recurring payments for ongoing bills like
car payments

> Set up bill payment alerts so you know when a
check clears and more

Sign on to Citibank Online, click on "Payments" and follow these easy steps:

> Set up your Payee(s) > Enter amount of payment

> Select Payee(s) to be paid > Select the payment date

November 13, 2008 Financial Stocks Predictions

2008-11-13T16:36:00.001-08:00

Jim Cramer recommended watchers to watch Wells Fargo as a mark of the securities market. A swing beneath the monetary value of its supplemental bidding at $27 is a bad sign for the market. He observed Bear Stearns and Las Vegas Sands as well fell beneath their supplemental offers. At closing on Wednesday, Wells Fargo was at $27.70 and Cramer expressed his hope that the fiscal would support its basis. Cramer said Goldman Sach's paper on indemnity businesses was a "frightening piece" which showed Prudential, Principal Financial and Metlife need to raise investment to last. Finally, Cramer is bullish on Pfizer which has an 8% and invests sufficient in research and development to offshoot the losses from drugs whose patents are about to pass.

Fannie Mae and Freddie Mac Refinancing of Delinquent Mortgages News November 12, 2008

2008-11-12T06:36:00.001-08:00

Cramer addressed Federal Housing Finance Agency James Lockhart's announcement that the function for Freddie Mac and Fannie Mae's refinancing of delinquent home mortgages will be hurried particularly because Fannie and Freddie Mae warrant almost fifty percent of the U.S. home mortgages. "If we keep individuals in their homes, then we stop house price depreciation," Jim Cramer stated. If individuals can't sustain their houses and their businesses, we're going to have another meltdown." Cramer reiterated his claim for a government bailout of GM, since an automobile industry crisis may be just as grim as the housing crisis.

My Checking Account With WaMu

2008-11-09T17:01:00.001-08:00

My Checking Account With WaMu a story that recently happened to a WaMu checking account holder where Washington Mutual lost the account holder's money while making a roll over.

If you have a checking account with WaMu, you are probably wondering, what's going to happen to my wamu checking account?

Has there recently been any mishaps with Washington Mutual checking accounts?

One wamu checking account holder reported that he had several thousand dollars in his Washington Mutual checking account. While he was on vacation, Washington Mutual got taken over by Chase. His credit card payments were set up on automatic payment as well as his rent payment. However, presuming that credit cards got paid (one wamu credit card, and one credit card from another financial institution), he suddenly realized that both cards were declined when he tried to make a change.

It turned out that while Washington Mutual checking account was rolled over to Chase account, somehow one digit dropped, thus leaving the client no money to cover his credit card payments, including wamu credit card, as well as his rent.

Finally, after realizing what had happened he spent two and a half hours on the phone with wamu customer service. The error was fixed and luckily credit card issuers were understanding enough to wave the late charges. At this time no one takes the blame. Was it WaMu or Chase fault that the checking account client got short changed?

Refinance Home Mortgage, Home Equity Loan

2008-11-09T07:50:00.001-08:00

Refinance my home mortgage and home equity loan is a frequent subject of the e-mails I receive from homeowners looking to get out of debt without foreclosure, and save their home. But if you have a poor credit, can you refinance with a bad credit? Home loan mortgage refinance loan will greatly depend on several critical factors, such as your credit score, your home value at the present market conditions and other factors.

Bad credit home loan refinance is a difficult task to achieve but with a bit of research you can find lowest mortgage rate and even do bad credit mortgage refinance. Another thing you can do meanwhile if you are hurting for money, you can obtain low rate personal loan, and even apply online for a low rate personal loan that will give your some leverage while you are waiting to refinance home mortgage home equity loan.

California refinance referred recently as bailout refinance or "bail out refinance" are easier obtained from a mortgage broker than from a bank. If you had a wamu home loan, you are probably wondering, what is going to happen to my wamu home mortgage loan? Don't worry. Chase wamu home loan refinance is not going to be harder than any other home loan refinance in today's economy. Just call around and talk to different mortgage brokers who will help you refinance your home and get out of your troubled Chase Washington Mutual home mortgage and find a more favorable home loan.

Foreclosures Listings Finder November 2008

2008-11-07T01:46:00.001-08:00

How to bargain a defaulted home? Where can you get homes in to purchase? Are there any acceptable foreclosed homes deals? Does current marketplace mean there are many good deals? How can I bargain a real estate cheap in down industry? Can I purchase a real estate for a half price or a fraction of its price?

If you are looking to purchase foreclosed properties as your primary residence or to invest in foreclosure properties, you will need to get a company that specializes in homes in, homes that are in default, whose owners have got a notice of default AKA NOD. Notice of default is a notice whereas the owner of the house missed one or more, usually more than one mortgage payment and is currently in default, meaning the bank is foreclosing on the property and is selling the real estate property at the trustee's sale. A trustee's sale is a sale when a real estate in foreclosed real estate is sold at an auction.

The best way to see a foreclosed homes to bargain is to go to an action. Before the foreclosed properties, or notice of default action the properties that are being foreclosed on will be listed for those interested in buying and investing in foreclosed properties. Oftentimes a home that's being foreclosed on has other debts recorded against the property, so it is better to check with a title company and run a preliminary title search to get out all other liens recorded against the property. One of the most common liens found recorded against a real estate in foreclosed houses is mechanics lien. A mechanics lien is an unpaid debt placed and shown against the homeowner who failed to pay for home repairs. Common cases of a mechanics lien is unpaid contractor's bills. Home improvement, roof repair, pool repair, and any other work that was done on the house and that the owner of the house has not paid for to the contractor can be a cause for a mechanics lien. Mechanics lien is usually not a huge deal. It must be foreclosed on within three months to get a judgment and to convert the mechanics lien into a judgment lien. If not foreclosed on the mechanics lien within three months (in California, other states may vary), a mechanics lien expires.

Other lies recorded against a homeowner in default may include a child support general lien, that's usually recorded in each county the child support obligor resides and has any property in; and tax lien. When shopping around to purchase foreclosed houses, those are the things to look out for. If not taken with caution you may end up with a foreclose that seemed like a acceptable deal only to acquire out that I inherited other debts you were not aware of.

In addition to the foreclosing lender, there may also be a second mortgage, which in many cases is a junior lien and a home equity loan, which is also a lien against the property. Another thing to remember when buying a foreclosed houses is that in some cases the owner of the home will make payments to the senior lien holder but will default on the second (junior) lien. In this case often the second (junior) lien holder will foreclose on the owner of the home. However, if I bargain a real estate with cash amount that satisfies the foreclosing lender (the junior lien holder), you will still owe the full amount to the senior lien holder. The thing that can really screw you is that once the title is transferred, the senior lien holder is not obligated to continue taking mortgage payments from the new owner of the home and it is up to his discretion whether he will agree to put you on the deed or immediately foreclose on I. This happens a lot is that a new owner unaware of the first lien holder will take possession only to obtain out a few days later that the senior lien holder has initiated homes in foreclosure proceeding against the new owner.

When looking for a foreclosure to bargain, be very careful. All houses in are sold as is and it is up to you do run a title report. If I pay a title company for a complete title report, the title company guarantees that the disclosed information is everything that is recorded on the title. If you later discover out undisclosed facts, the title company that sold you the title report is liable to you for the full amount of damages. A title report may not be the cheapest but it is well worth the money and the potential headache. For more information of finding a foreclosure to buy visit Mortgage Refinance Loans

Chase Customer Service By Phone

2008-11-02T18:27:00.000-08:00

If you have a credit card account with Chase, or a bank account with Chase you may want to use Chase online service as well as telephone customer service. How to use Chase customer service when you call Chase customer service phone number.

Chase By Phone

Whether you need to check an account balance, transfer funds or make a payment, Chase By Phone is the easy, convenient and secure way to do practically all of your banking.

Using Chase By Phone is easier than ever:•Option to use 2-digit account codes instead of complete account numbers when selecting accounts. Press *8 to hear a list of accounts and corresponding account codes.

• To customize your 2-digit account codes or change your Autoplay set-up, press *0 at any time to speak with a Telephone Banker.

Chase By Phone is available 24 hours a day, 7 days a week from any phone. Just think –you can bank from your office, home and even your car.

Chase By Phone is also secure. Because the password you use along with your Account Number, Debit/ATM Card Number or self-selected User ID is chosen by you—and known only by you—no one else can access confidential account information.

What kind of services are available via phone at Chase telephone customer service:

When you call Chase you can use their telephone customer services

For account balance
For transaction history and search options
For hold info and pending transactions
To transfer funds
For debit card options
To re-order checks or place a stop payment
To make a credit card or loan/line payment

Capmark Financial Group Inc. to Announce Third-Quarter 2008 Results on November 5, 2008

2008-10-30T08:32:00.000-07:00

About Capmark(R) Capmark is a diversified company that provides a broad range of financial services to investors in commercial real estate-related assets. Capmark has three core businesses: lending and mortgage banking, investments and funds management, and loan servicing. Capmark operates in North America, Europe and Asia.

SAN MATEO, Calif., Oct 30, 2008 (BUSINESS WIRE) -- Capmark Financial Group Inc. (Capmark) will announce its financial results for the third quarter 2008 on November 5, 2008. Copies of relevant materials will be available at under "Investor Relations" in the "About Us" menu. In connection with the release of its third-quarter 2008 financial results, Capmark will hold a conference call to be broadcast live over the Internet on Thursday, November 6, 2008, at noon EST. The conference call will include management's discussion of third-quarter 2008 results. Investors can access a webcast (listen only) of the conference call via Capmark's Web site by selecting "About Us" near the top center of the home page then "Investor Relations" from the drop-down menu and clicking on the third-quarter webcast link. To listen to the conference call, please go to the Web site at least 15 minutes prior to the scheduled start time to download and install any necessary audio software. For those who are unable to listen to the live broadcast, an archived replay will be available on the Web site under "Investor Relations" shortly after the call concludes. Investors who have questions for Capmark management can participate in the conference call by dialing in to one of the following numbers:

Phone numbers for call: -- Toll Free: 877-407-0778 -- International: 201-689-8565

Are We In Financial Crisis?

2008-10-30T05:41:00.000-07:00

Banks Cut Credit Cards and Credit Lines

October 2008 started with deepening financial crisis. Countrywide, Wachovia, shortly followed by Washington Mutual, and now CitiGroup (CitiBank), Capital One, Bank of America, American Express, MasterCard, Visa and other financial giants are going down as well. What is going to happen to my credit card with Washington Mutual, Citibank, my American Express, or my Visa or MasterCard? How will the financial crisis affect my credit card account? What is going to happen with my credit cards and the issuing institutions?

The mortgage crisis slammed us first and shortly after it followed by the credit card crisis.

New York Times reports:

Lenders wrote off an estimated $21 billion in bad credit card loans in the first half of 2008 as more borrowers defaulted on their payments. With companies laying off tens of thousands of workers, the industry stands to lose at least another $55 billion over the next year and a half, analysts say. Currently, the total losses amount to 5.5 percent of credit card debt outstanding, and could surpass the 7.9 percent level reached after the technology bubble burst in 2001.

“If unemployment continues to increase, credit card net charge-offs could exceed historical norms,” Gary L. Crittenden CitiGoup’s chief financial officer, said.

Capital One has closed down inactive accounts and reduced customer credit lines by 4.5 percent in the second quarter from the previous period, according to regulatory filings. If you have a Capital One credit card, you are probably wondering, what is going to happen to my Capital One credit card?

Lenders, banks, and other financial institutions are cutting credit. That means no credit for us, no more credit cards, no more credit limit increase. The country is in severe credit crisis. What does credit crisis mean to consumers? What does credit crisis mean to businesses? Growing unemployment rates, declining consumer spending and doing businesses. That is the financial outlook as of today, October 30, 2008 from where I am standing.

Is Investing In Stock Market A Good Idea In This Economy? October 29, 2008

2008-10-29T05:39:00.000-07:00

For the past couple of weeks, we have seen some truly awful economic stats come in. Here are just a few of the latest tad-bits from the front line of the recession:

• New home construction just fell to its lowest level since 1991. The building industry is on pace to construct the fewest new homes and apartments since the end of WWII.

• Consumer sentiment just suffered its biggest one-month drop EVER, and has just beaten the index’s record low set in 1980.

• Unemployment has been running above its recessionary marker for 13 straight weeks. There are now some 9.5 million Americans looking for work and another 1.6 million who have given up looking.

• Manufacturing is collapsing: The bellwether Philadelphia Fed survey just took its steepest one-month plunge ever, diving form a wan-but-positive 3.8 in September to a disastrous negative 37.5 in October.

Even Wall Street’s cheerleaders are having a hard time spinning this stuff. Just today, MSNBC was bragging about the trillions Washington is willing to spend were accompanied by a long story on how folks are hoarding food, water and bullets!

"It’s the buying opportunity of the century!" vs. "Shoot your neighbor for food!" Now how’s a body supposed to sort THAT out, eh?

The first step is to calm down. And the next is to get out the charts.
If we look to the S&P 100 (OEX)'s daily chart, we can map out both ideas. The past few days' action forms sees price narrowing down to a point, in other words, a pennant at the bottom of a falling run.

The more optimistic view - that Washington’s unlimited pocketbook can buy us a new bubble - is expressed as a "Rising Butterfly," wherein the recent rising bottoms convert to new daily rising tops, yielding a V-shaped monthly that could launch the market for the next five years (or until THAT bubble pops, whichever comes first).

The pessimists look at the same pennant and see a new "Head and Shoulders" failure pattern building up. This would set up another dramatic failure that would carry the blue chips into the next major down-leg of the current falling trend.

Where do I stand in all this? Come on guys! I am a bear and you know it! Here’s why:
Let’s go back to that initial pennant. Just as the laws of physics state that an object in motion tends to remain in motion, the tenets of technical analysis regarding momentum state that the most probable outcome of a pennant in a falling trend is further downside.

Experience tells me that odds of further downside in a formation like this are roughly three to one. Now that is really a very cool fact, one that in past years has enabled us to shape some very profitable plays.

Buying a Foreclosure in Down Market

2008-10-28T02:15:00.000-07:00

How to buy a foreclosure? Where to find foreclosures to buy? Are there any good foreclosure deals? Does down market mean there are many good deals? How can I buy a house cheap in down market? Can I buy a house for a half price or a fraction of its price?

If you are looking to buy foreclosure as your primary residence or to invest in foreclosed properties, you will need to find a company that specializes in foreclosures, houses that are in default, whose owners have received a notice of default AKA NOD. Notice of default means that the homeowner missed one or more, usually more than one mortgage payment and is currently in default, meaning the bank is foreclosing on the house and is selling the house at the trustee’s sale. A trustee’s sale is a sale when a house in foreclosure is sold at an auction.

The best way to find a foreclosure to buy is to go to an action. Before the foreclosure, or notice of default action the properties that are being foreclosed on will be listed for those interested in buying and investing in foreclosure. Oftentimes a house that’s being foreclosed on has other debts recorded against the property, so it is advisable to check with a title company and run a preliminary title search to find out all other liens recorded against the property.

One of the most common liens found recorded against a house in foreclosure is mechanics lien. A mechanics lien is an unpaid debt placed and recorded against the homeowner who failed to pay for home repairs. Common cases of a mechanics lien is unpaid contractor’s bills. Home improvement, roof repair, pool repair, and any other work that was done on the house and that the homeowner has not paid for to the contractor can be a cause for a mechanics lien. Mechanics lien is usually not a huge deal. It must be foreclosed on within three months to get a judgment and to convert the mechanics lien into a judgment lien. If not foreclosed on the mechanics lien within three months (in California, other states may vary), a mechanics lien expires.

Other lies recorded against a homeowner in default may include a child support general lien, that’s usually recorded in each county the child support obligor resides and has any property in; and tax lien. When shopping around to buy foreclosure, those are the things to look out for. If not taken with caution you may end up with a foreclose that seemed like a good deal only to find out that you inherited other debts you were not aware of.

In addition to the foreclosing lender, there may also be a second mortgage, which in many cases is a junior lien and a home equity loan, which is also a lien against the property. Another thing to remember when buying a foreclosure is that in some cases the homeowner will make payments to the senior lien holder but will default on the second (junior) lien. In this case often the second (junior) lien holder will foreclose on the homeowner. However, if you buy a house with cash amount that satisfies the foreclosing lender (the junior lien holder), you will still owe the full amount to the senior lien holder. The thing that can really screw you is that once the title is transferred, the senior lien holder is not obligated to continue taking mortgage payments from the new homeowner and it is up to his discretion whether he will agree to put you on the deed or immediately foreclose on you. This happens a lot is that a new owner unaware of the first lien holder will take possession only to find out a few days later that the senior lien holder has initiated foreclosure proceeding against the new owner.

When looking for a foreclosure to buy, be very careful. All foreclosures are sold as is and it is up to you do run a title report. If you pay a title company for a complete title report, the title company guarantees that the disclosed information is everything that is recorded on the title. If you later find out undisclosed facts, the title company that sold you the title report is liable to you for the full amount of damages. A title report may not be the cheapest but it is well worth the money and the potential headache.

How To Set Up Online Bill Payment With CitiBank

2008-10-26T23:48:00.001-07:00

If you like banking online, you will sure like easy online bill payment process offered by many banks, including Citibank.

Online Bill Payment from Citibank isn't just free, it's also easy! Stop by citibankonline.com and get familiar with time-saving tools that make life easier.

Time-saving features including:

One–time payments scheduled from the next day up to one year in advance.

Express payments let you pay multiple bills at once.

Recurring payments for ongoing bills (like rent), so you don't have to remember each time they're due.

Bill payment alerts update you on your payments via cell phone or e-mail.

Payee spending report shows how much you've spent on each payee this year and last.

How it works

Set up your Payee list, which are the people and businesses you pay frequently. Select your payee from an extensive list of merchants, many of whom accept electronic payments. (Received within two business days). Add your own personal payees and we'll put the check in the mail for you. (Received within 5-7 business days).

Start enjoying the benefits of banking online with Citibank.

November 2008 Prime Rate Forecast

2008-10-25T12:47:00.001-07:00

November 2008 prime rate is the most widely discussed topic amongst borrowers who are looking to refinance. Thus October 2008 is the time to start predicting prime rate in November 2008. As of the market close on October 24, 2008 Mortgage Rate 30 Year was 6.04

The following chart below is showing prime rate forecast and prime rate predictions. It looks like the trend is showing declining. Does it mean that borrowers will be able to refinance at a lower rate in the coming months? Let's review how prime rate works.

Prime rate is the rate of interest charged by banks to homebuyers who are considered the most creditworthy. Prime rate varies amongst lenders. However, the revision of prime rate of interest is usually made by most banks simultaneously. A revision of prime interest rate does not happen often.

Prime rate is used by lenders as a benchmark to determine other interest rates within the system. It is used in deciding interest rates for home equity lines of credit, home mortgages, as well as other types of variable rate home loans. In some cases, prime rate is also used in determination of private student loans. Some credit card companies may link their interest rates to current prime rate charged by banks.

The federal funds rate is determined by the discount rate, which is the rate that is actually set by the Federal Open Market Committee AKA FOMC in its meetings. The Federal Reserve manages the federal funds rate. Other rates, including the prime rate, are set using this base rate as a benchmark.

Usually prime rate is about three percent above the federal funds rate, whereas the federal funds rate is the interest rate that banks charge each other for parking short term funds.

WSJ Prime Rate is the most widely recognized prime rate index Today which is the Wall Street Journal Prime Rate, and is published in the Wall Street Journal. Prime interest rate does not move up or down on a regular basis, like other indexed rates. Prime rate changes when lenders and other financial institutions need to change mortgage rates. It has been observed that when 23 out of 30 of the United States' largest banks change their prime rate, the WSJ prints a composite prime rate change indicating the change in the prime rate for that time period.

Should I Buy Financial and Banking Stocks Now? October - November 2008 Repors

2008-10-24T17:14:00.000-07:00

Are stock valuations based on 2009 estimates really cheap?

Overall, analysts now see earnings for companies in the Standard & Poor's 500 falling 4.1% year-over-year in the recently completed third quarter. That is a major reversal from the outlook of just a month ago, when the consensus estimate called for a gain of 6.8%, and almost 20% worse than the average expectation at the beginning of quarter. Yet, analysts are still looking for 2009 profits to post strong year-over-year gains of 34%, leading us to believe that (outside of the financial sector) current estimates do not yet reflect negative impact from the liquidity squeeze and economic slow down. This over-optimism is also evidenced in sector outlooks, which have not seen meaningful changes over the past few weeks and now appear to be overdue for an adjustment. October economic data is coming in grim. The Philly Fed Activity Index for October fell off the cliff, plummeting to -37.5 from +3.8, for the worst reading in 18 years, and the guidance from major domestic companies could hardly be called good news. GE shares notched an 11-year low after the U.S. economic bellwether posted a 22% drop in net income. “The global economic environment is tough," said CEO Jeff Immelt, and GE confirmed its 2008 forecast of a profit drop of up to 12%. Valuations based on optimistic earnings forecasts can look attractive, but investors must remember that low P/E ratios are not sustainable if the denominator (the "E") is cut due to reduced earnings forecasts going forward.

Is it time to target banking bargains?

The Treasury once again expanded its bank rescue efforts, going beyond buying bad assets on bank books, by using some $250 billion from the bailout bill’s $700 billion to take direct stakes in banks it thinks are “too big to fail.” To unlock credit markets and spur new lending, nine banks, termed “healthy” by the government, will receive about $125 billion, including Bank of America, Citigroup, JP Morgan, Wells Fargo, Goldman Sachs, Bank of New York, Morgan Stanley and State Street. Bank of America, Citi, JP Morgan and Wells Fargo will receive investments of $25 billion each while Goldman Sachs and Morgan Stanley will get $10 billion each. The remaining $125 billion will be allocated to smaller regional banks. In turn for the recapitalization, the government will receive preferred stock paying a 5% dividend that will rise to 9% in five years. The government will also receive warrants totaling 15% of the preferred investment. And the government will have more say over day to day banking operations. As part of the Paulson plan, the Federal Deposit

Insurance Corp will take the unusual step of insuring senior debt issued by banks and thrifts for three years. Beaten down bank shares rebounded as news of the plan buoyed confidence in the safety and soundness of the U.S. banking sector. But from an investor standpoint, the plan benefits will largely accrue to bondholders in the sector over stockholders. Once the “relief rally” subsides, we expect bank stocks may continue to suffer as poor operating results and the dilutive effects of additional shares combine to deliver disappointing earnings into 2009. Two weeks ago, Bank of America reported a brutally bad third-quarter and slashed its dividend. Last week, JPMorgan Chase said quarterly profit fell 84%, due to underperforming loans. Wells Fargo profit fell 25%, and Citi lost $3.4 billion on an operating basis—and losses could continue into next year.

Should I Refinance?

2008-10-21T12:57:00.000-07:00

When deciding to refinance you should take into consideration many different factors. What is the reason you want to refinance? What goals are you trying to achieve by refinancing? Is your decision to refinance prompted by increasing mortgage payments? How comfortable are you with your current mortgage, mortgage rate and the conditions of your mortgage? Are you comfortable with your current mortgage payments or are you trying to lower your payments? Are you trying to consolidate your bills? Are you trying to reduce your mortgage payments? Are you trying to pay off your mortgage in a certain number of years?

What is your current employment situation? Are you comfortable with your income and your job? How secure is your job? Are you pretty sure you are going to keep your job despite the financial situation in the country or are you worried about your job?

Is your spouse working, and if so, will her income be sufficient to sustain mortgage payments over a lengthy period of time if you were to lose your job?

Your decision to refinance is not always an easy decision to make. When deciding to refinance it is important to consider the costs involved in refinancing your mortgage and whether you will stay in your house long enough to take advantage of the benefits of refinancing now.

Often the benefits of refinancing outweigh the costs of refinancing, and the closing costs involved in refinancing your home. If you are interested in any of the benefits of refinancing you will need to discuss your refinancing options with your mortgage loan broker or a lender. They can present different refinancing options that will meet your refinancing needs and will tell you how long it will take to make up the costs of refinancing you are going to incur when you go through the refinancing process.

Reasons to Refinance your mortgage are numerous, but the ones that you should always take into account are the following:

• To obtain a lower interest rate on your mortgage and decrease monthly mortgage payments

• Take cash out of the equity in your house that you can use for home improvement, debt consolidation and other unexpected expenses

• Switch from an adjustable rate mortgage to a fixed rate mortgage

• Consolidate your debt to lower monthly mortgage payments

• Shorten the term of your current loan and pay off your mortgage balance sooner

If one or several of the benefits of refinancing listed appeal to you, you will need to talk to a mortgage lender who can help you apply and obtain the best home loan that you can qualify for. Talk to several different lenders to explore your refinancing options fully and to make a determination which lender can present you the best refinancing options for your particular needs and financial situation.

Is Loan Modification the Right Choice for Me?

2008-10-20T14:30:00.000-07:00

If you are finding it difficult to meet your monthly mortgage obligations and are, in fact, in danger of losing your home to foreclosure, your options to avoid legal action against you are limited.

If you are willing to rescue your home from foreclosure: a modification to your current home loan agreement is that avenue that will keep you and your house from foreclosure. Granted, if you have an agreement with a lending institution and you find that you aren’t keeping your end of the agreement, i.e., you are behind on payments for whatever reason, then you are in danger of having your home foreclosed on.

Why would the lender want you to stay in your home? Because your lender or a bank is not a property management company. They are a bank and they are there to collect mortgage payments and interest. They don’t want your house, they want their money. That’s why they will try to keep you in your home as long as you are able to make monthly mortgage payments.

It is cheaper for a bank to agree to re-negotiate or modify your loan than to initiate a legal proceeding against you. However, remember that no lending institution is required to renegotiate a mortgage, however if you present compelling information and approach the lending institution professionally, a representative might be more likely to grant you a loan modification.

Set up a meeting with your mortgage representative and outline a plan to show them how you will repay your mortgage. Bring along recent pay stubs to prove your ability to repay the loan.

Ask if your current loan agreement could be modified; this may include a reduction in your interest rate and/or a change in loan terms. You may still incur late penalties and interest charges, but they could be added to your “new” loan’s balance.

Can I apply for loan modification if I have no equity? What are my options to refinance if I have no equity?

No equity? You may qualify for a short sale. A Short Sale will help you:

•Avoid Foreclosure
•Avoid Bankruptcy by selling your home
•Avoid having a “foreclosure” on your credit score
•Avoid and be free of financial and emotional burdens

See Also: lenders, loan modification lender, find loan modification lender, loan modification to stop foreclosure

Investment Ideas 2008, October – November 2008

2008-10-20T13:45:00.000-07:00

What to invest in October – November 2008? Is it a good time to invest in stocks now? Let’s look at some market gainers. Although making market moves predictions for October November 2008 are at this point premature, just like making interest rate predictions, let’s look at the gainers and winners for 2008. While Dow Jones Industrial Average is falling rapidly, these are the movers and shakers, gainers as they closed in today’s economy.

2008 Closed Positions: Stock winners for maximum gains in 2008 as of October.

MSFT, KSS, NUE, INTL, JPM, MO, UPS, CAT, BAC, SLB, DIA, EMR, ORCL, WFC

On Monday, October 13, the Dow Jones achieved the largest one day point gain in history of the Wall Street. It was the largest single day gain since 1933. Does it mean the market health is improving and it is safe to invest now? While you may be thinking to invest money in the stock market while Dow is still down, there are certainly some precautions. Certain industries and trends are more dangerous than others. If you decide to invest in today’s market, some things to remember are: always diversify your investments, always have an exit strategy, learn how to put stop orders and stop limit orders.

See also: investing in today’s economy, stock investments, is it safe to invest

Dow Jones Industrial Average Today and This Year

2008-10-20T13:19:00.000-07:00

Dow Jones Industrial Average Today and This Year 2008, most recent news as of October 2008.

Since January 2008, as the Dow plunged 23%. This is what market crash is all about. It’s a redistribution of wealth -- pure and simple. Billions of dollars flowing out of Wall Street’s coffers and into the hands of people who know how to parlay the big meltdown into big easy cash payments.

People who continue to follow Wall Street’s tired, old “buy and hold” investment creed are going to get wiped out. And beware! When a slick broker tells you the market crash is creating an exceptional “buying opportunity”… be very careful. I can’t tell you what will happen with Dow Jones in the coming months and years, but I can tell you this: The old way of investing is not going to work anymore.

If you are counting on stocks and mutual funds to build wealth, it will take years before we see a sustained positive rally. Oh sure, there will be upward surges. But for every step up the stock market takes it will take two steps down. This could go on for years!

The following chart shows Dow Jones Industrial Average moves from 2000 up to today, October 2008.

We are in the midst of a financial Armageddon; the likes of which haven’t hit the United States since 1929. Millionaires will become penniless. Financial empires will be reduced to rubble.

Is it a good time to invest? Buy low sell high, the traditional investment strategy we’ve all learned.

But what’s going t happen to my investments? You ask. Am I going to lose my investments? What’s going to happen to my 401K plan in this market?
But there is NO REASON for you to go down with the ship... Nor is there any sane reason whatsoever for you to stick all your money in bank CDs and get eaten alive by inflation.

Let’s face it: Wall Street is in a heap of trouble. And it’s not just the big name firms like Lehman Brothers and Merrill Lynch. All of Wall Street is on the brink of being wiped out. Hedge funds, mutual funds, institutional investment houses… They are all scrambling to keep their heads above water.

Make no mistake: The Wall Street hotshots are shaking in their boots. These guys are terrified. Their fear presents us with a remarkable opportunity. You see, nothing spawns fear like falling stocks. And when stocks fall for a few days... watch out!
Keep in mind; these big Wall Street firms are holding billions of dollars in stocks. Some of their positions are massive. When things go south, they panic. And their panic drives stocks into the ground.

See Also: Dow Jones, Dow, Dow Jones Industrial Average

Dow Jones Chart credit investmentscore.com

McCain & Obama Funny Photo

2008-10-19T23:40:00.001-07:00

Who is going to be the next President of the United States?

Can I Refinance Now For A Fixed Rate Mortgage?

2008-10-19T22:35:00.000-07:00

Can I refinance my mortgage with Washington Mutual? A friend of mine asked me the other day. What is going to happen and how will Chase handle my Washington Mutual loan now that it took over wamu? Can I get a fixed rate? My variable rate home loan is not affordable. How can I afford new mortgage? Can I afford to make payments if I lose my job?

What are the best lenders to refinance now? Can I refinance with Bank of America or Wells Fargo to get a fixed rate? What are fixed rates now and what is today’s prime rate in October 2008?

Those and many other questions are bothering homeowners who are on the brink of getting their rate increase. How will rate increase affect my ability to refinance? What do I need to refinance my mortgage and who do I contact to refinance my variable rate loan now at a fixed rate? October 2008 is not the best time to be stuck with a variable rate loan. With prime rate increasing and the prime rate spike in the latest couple of weeks, it is better to refinance into a fixed rate loan.

But what are my options? You ask. the answer is not as simple as it may seem. First, depending on your home equity and your FICO score you will need to evaluate your refinancing options. If you are stuck with subprime wamu loan, you may want to refinance and get a better loan preferably at a fixed rate. Determine how much you can afford to pay for your monthly mortgage payments. What is your credit score right now? Have you purchased any big ticket items lately that may affect your credit and your FICO score? Have your recently checked your FICO score? Have you talked to a lender to see if you qualify to refinance under the bailout, or perhaps you may qualify for Hope For Homeowners program and loan modification.

When considering refinancing options it is important to understand how refinancing will affect your ability to avoid foreclosure and to make sustainable mortgage payments. If you can’t make your monthly mortgage payments, missing a payment is a red flag to a lender. Your lender wants to know that once you get your loan modified, or refinance you will be able to make regular payments if you stay in the house. Run mortgage calculator online to determine how much you can pay for your monthly mortgage because if you can’t comfortably afford your new mortgage payments, there is no reason to refinance. Consider options other than refinancing in this bad market because refinancing at a new rate may not be the solution you are looking for.

See more on: refinance, refinancing, prime rate, new rate, FICO, credit score, refinancing options in October 2008

Free Mortgage Calculator

2008-10-19T04:47:00.000-07:00

Mortgage Calculator – calculate and plan your mortgage payments estimates.

Refinancing requires planning. Use these mortgage calculators to calculate your home loan at a 30-year fixed rate, compare advantages of renting versus buying, determine how much mortgage you are able to afford, reverse mortgage calculations, calculate how much money you can receive.

30-Year Fixed Loan Click Here

Renting V. Buying - is it cheaper to rent or to buy in this economy? Click Here

How much can I afford to pay for mortgage – calculate maximum affordable monthly mortgage payments Click Here

Calculate reverse mortgage how much money will I receive in reverse mortgage Click Here

These mortgage calculators are estimates only. Your refinance rate will be based on prime rate combined with your fica score and current market. For more information on current refinance rates, see prime rate, FICO score. See your lender for an offer for a rate.

Hope For Homeowners

2008-10-19T04:26:00.001-07:00

Federal Program Hope For Homeowners was designed to help homeowners from foreclosures and came in effect on October 1, 2008. Hope For Homeowners will help lower mortgage payments, in particular lower monthly mortgage payments. Mortgage refinancing through this Government program will help homeowners who are losing their home due to foreclosure, predatory subprime mortgage lenders with adjustable rate subprime mortgages that have recently converted from a fixed rate to a variable rate (ARM – adjustable rate mortgage). Bankruptcy refinance home loan, mortgage loan debt consolidation refinance are some of the cases where Government assistance to homeowners is needed.

When considering Hope For Homeowners, take into account your ability to repay the loan, your credit score (bad credit, credit clean up, obtaining a 3 1 credit report, checking your credit report and FICO score). Consider getting an instant credit report online. Some companies will do an instant free credit report, so look for those companies that will provide you this service for free. Once you determine eligibility, financing is available through the Federal program.

Have a 2nd mortgage? Should you refinance and consolidate? Talk to a Government approved mortgage lender to see if you qualify for Hope For Homeowners assistance.

Hope For Homeowners Facts and Background.

The President has signed into law legislation that will allow HUD’s Federal Housing Administration (FHA) to continue providing targeted mortgage assistance to homeowners. The Hope for Homeowners program will continue FHA’s existing and successful efforts to provide aid to struggling families trapped in mortgages they currently cannot afford. Under the program, certain borrowers facing difficulty with their mortgage will be eligible to refinance into FHA-insured mortgages they can afford. The program will be implemented on October 1, 2008.

Frequently asked questions about the Federal program Hope for Homeowners include:

Is this option a suitable mortgage for people with bad credit? How often can I refinance? When can I refinance? When should I refinance? When to refinance? Government bail out refinance – how will bailout affect refinancing rates in foreclosure with bad credit? Who to contact to get government assistance to homeowners?

In order to determine eligibility for Hope For Homeowners, HUD advises to contact FHA approved lenders to discuss your options to stop foreclosure, modify your current home loan at a lower rate and refinance your home loan at more affordable terms.

See more: HUD, FHA, how to stop foreclosure, Hope For Homeowners, foreclosure refinance, lower monthly mortgage payments

Mortgage Refinance Rates October 2008

2008-10-18T23:13:00.000-07:00

Mortgage Refinance Rates October 2008 Update on interest rates in the current market.

What’s today’s prime rate? What is today’s mortgage refinance rate? Homeowners struggling with increasing variable rates are worried whether they can refinance mortgage in today’s market. Amongst the commonly asked questions are, can I refinance with bad credit? FICO score 500, FICO below 500, FICO 600, FICO 700. All of those are hard to refinance especially in the current refinance market, and ill economy. What is the prime rate and what is the actual refinance rate today, October 2008?

Rates have gone up considerably in the last week. Is it a good time to refinance? Probably not. When to refinance? What is the outlook for rates November 2008 and going forward?

Fixed-rate mortgages have gone up considerably in the latest week. Source: Freddie Mac's survey as of last Thursday. Remember that prime rate is not the refinance interest rate that will be offered to you according to your credit and your FICO score. Can you still refinance with bad credit in this economy? The refinancing interest rate will be the prime rate plus the marginal rate with your chosen lender. Contact each individual lender for information and fill out a loan application to get a rate for your refinancing needs.

Prime rate schedule as of today October 2008 as reported as of October 16, 2008 is as follows:

30-year fixed refinance rate October 2008: Average market rate is on the benchmark 30-year, fixed-rate loan averaged 6.46% last week, up from last week's 5.94% and the year-ago 6.40%.

15-year fixed rate, October 2008 15-year fixed-rate loan nationwide average is 6.14%, which is up from the week-ago 5.63% and the year-ago 6.08%.

Five-year Treasury-indexed hybrid adjustable rate mortgages are on average 6.14%, a significant jump from 5.90% a week ago and 6.11% a year ago.

One-year Treasury-indexed adjustable rate mortgages are at 5.16% interest rate this week, up from last week's 5.15%, but lower than the year-ago 5.76%.

Marginal rates vary from lender to lender. Going by prime interest rates as of today is not going to give you a clear picture of actual home loan refinance rates. When determining refinance rate for your home, your credit score and loan to equity ratio will be taken into consideration to determine refinance rates.

Generally, it is hard to refinance with FICO below 500.

See also: “prime rate”, “refinance rates”, “refinance with bad credit”, “FICO”, “FICO 500”

Information For Government Fund Investors, October 2008

2008-10-18T15:33:00.000-07:00

To The Reserve’s U.S. Government Fund Investors Government Press Release October 16, 2008

As you know, the U.S. Government Fund did not hold Lehman Brothers debt in its portfolio and has maintained a $1.00 Net Asset Value. Nevertheless, it experienced very heavy redemptions over a short period of time amid an almost illiquid market. That being said, we have concluded that it is in the best interest of all shareholders to liquidate the Fund and return your cash and accumulated interest as quickly as possible without undertaking any fire sales.

In order to make periodic cash distributions, we are modifying existing functionality in our software. Our broker-dealer clients, who are linked with our systems, must also make modifications and adjustments to protect the interests of their accounts.

As we work our way through this technical process, we stand committed to avoiding mistakes that could result in your money going to the wrong person or the wrong place. Moreover, prudence dictates that we take all appropriate steps to make sure our broker-dealer clients do not receive data that they cannot process or maintain on their technology platforms.
We also pledge to keep you informed as we move forward by issuing daily updates on the status of distributions. We are also adding to our website more information that details the status of your portfolio, including the cash positions in all funds.
Cash in the U.S. Government Fund now amounts to about $3 billion against total assets of approximately $11 billion, with both the cash and the assets held at our custodian, State Street Bank & Trust Company. We continue to work to complete our analysis of all transactions for the

Fund from September 15 to present to ensure that we have accurate books and records at the moment we commence distributions.

The Reserve is working non-stop to ensure a proper distribution of balances, including accumulated interest in the fastest and most efficient manner possible.

Source: Reserve Management Company, Inc. October 16, 2008 Press Release

Federal Program To Stop Foreclosure

2008-10-17T17:53:00.000-07:00

Federal Loan Modification Program is available for distressed Indymac residential mortgage loans according to FDIC.

In an effort to prevent foreclosures and help homeowners IndyMac Federal Bank, FSB AKA Indymac Federal will implement a new stop foreclosure program that will systematically modify troubled mortgages. The Federal program will modify existing mortgages to lower mortgage payments for homeowners and increase the value of distressed mortgages. Frequently asked questions about Federal Home Loan Modification Program:

Eligibility for Federal Home Loan Modification Assistance:

Loan modification to stop foreclosure will assist homeowners in default and those who cannot make mortgage payments. More on eligibility: Indymac, Federal, Government assistance to stop foreclosure, eligibility requirements for Government loan modification program. As with all loan modifications, borrowers will have to demonstrate their financial hardship by providing proof of income income.

What Government loan modification options are available to homeownerss?

Under this Federal program to help homeowners keep their home from foreclosure, new mortgages will be at the current Freddie Mac survey rate for conforming mortgages. Loan modification will attempt to keep mortgage payment low enough to allow homeowners to continue living in the home and making mortgage payments.

How does IndyMac Federal determine whether the modified mortgage is affordable to the homeowner?

Determination of the new home loan will take into consideration income and expenses of the borrowers. Loan Modification will be designed to achieve mortgage payments at a thirty eight percent housing debt-to-income (DTI) ratio of principal, interest, taxes and insurance. To reach this metric for affordable payments, modifications could adopt a combination of interest rate reductions, extended amortization, and/or principal forbearance.

How to apply for the Federal Loan Modification programs?

See loan modification specialist to evaluate your home loan for potential modification of your home mortgage.

See Also: Federal Programs To Stop Foreclosure, Foreclosure, NOD, loan modification options, refinance home loan, foreclosure loan

Freddie Mac Temporarily Suspends Foreclosures in Areas Affected By Hurricanes In Texas And Louisiana

2008-10-17T13:10:00.000-07:00

Freddie Mac announced on October 9, 2008 that it is temporarily suspending all foreclosures of homes in the areas affected by disasters caused by Hurricane Ike in Texas and Louisiana. Freddie Mac is one of the nation's largest investors in residential mortgages. The foreclosure suspension will be in effect from October 8 to December 31, 2008. It will include mortgages that were in default prior to Hurricane Ike.

Ingrid Beckles, vice president of servicing and asset management at Freddie Mac. Said, commenting on the measure, "Freddie Mac is taking this step because the extensive damage Hurricane Ike caused has made it difficult for our servicers to get the information they need to make case-by-case decisions about forbearance or other workout options.”

After the end of the temporary foreclosure suspension, all servicers will be required to consider individual circumstances of homeowners in order to determine whether additional time will be needed to proceed with further foreclosure relief.

This measure will affect Freddie Mac-owned mortgages in Texas or Louisiana counties, municipalities or parishes that were officially declared federal disaster areas and where federal aid in the form of individual assistance is available.

SOURCE Freddie Mac

See Also: Freddie Mac, foreclosure

Can I Refinance My Adjustable Rate Mortgage?

2008-10-13T18:43:00.000-07:00

Adjustable mortgages are one of the main contributers to todays housing problems and can be a real headache for homeowners who took an adjustable loan with out first being informed what they are and how they work.

The Problems Adjustable Mortgages Can Cause

The dangers associated with these loans are increased payments and potential foreclosure. These dangers increase drastically in parts of the country where property values have started to decrease. This is because when your value goes down and you cannot refinance you are stuck with the higher payment, if you cannot make the higher adjusted payment you run the risk of losing your home to foreclosure.

Are Adjustable Mortgages Bad Loans?

While adjustable mortgages may sound bad they can actually benefit some borrowers who use them wisely and in the right situations. But you as a home owner should decide if they are right for you and not the bank or your mortgage broker.

Can I Use An Adjustable Mortgage?

Whether you are a home owner who is considering one of these loans or a home owner who is currently struggling with an adjustable mortgage this site and the articles on it can help you by providing valuable information that can save you time, money and maybe even your home.

Is It Safe To Invest In Securities In Today’s Market?

2008-10-13T15:05:00.000-07:00

Many investors ask the following questions; is it safe to invest in securities, stocks, or bonds? Which stocks to buy now? Can I invest in stocks now or will the market fall down more. Should I invest now or should I wait? Is my investment account safe? What’s going to happen with my 401K plan? These and many other questions are on the minds of many US investors who have taken a huge hit with the downfall of Washington Mutual and other financial stocks.

Stock recommendations in 2008 should be taken with caution. It may seem like you buy low and sell high is the recommendation we all try to follow, and the market is already low. Will the market fall more or should I buy cheap stocks now? What stocks are undervalued? Are financial stocks secure? What financial stocks are safe to invest it? Should I buy Wells Fargo stock? Should I buy CitiGroup stock? What are the best investments?

While it is difficult to predict the market moves, it seems like many financial stocks are currently undervalued. But which stocks should I buy? How to you find the winners and deselect the losers?

If you are considering investing right now, perhaps you have looked into debt securities investing. To understand debt security investing you need to get a grasp on understanding rates, yields, and prices of debt securities.

The Wall Street published information that will help investors understand the debt options and to make better informed investment decisions. Here are some incepts:

To understand debt options, an investor should understand the relationship between the rates or yields, which are difference ways of expressing return on debt securities, and prices of debt securities. Coupon interest rates of a debt security express returns as a percentage of the principal amount or par value of the security. Yields express return or projected return as a percentage of the amount invested. This relationship, simply stated, is that prices of debt securities more inversely to changes in rates. Declining rates, whether on long term bonds or money market instruments, will generally cause prices of outstanding debt securities to increase. Conversely, rising rates across a particular maturity spectrum will generally cause the prices of outstanding debt securities of that maturity to decline.

Example: a 30-year Treasury bond pays interest at a 12% coupon rate. The only time prior to maturity that investors will pay a price of 100 (that is, 100% of par value) for the bond is when the prevailing yield on such long term Treasury bonds is exactly 12%. Should rates move higher to, for instance, 14% for such Treasury bonds, the price of an outstanding 12% bond would have to decline to about 86 in order for the bond to yield 14%. If rates on such bonds subsequently decline to 10%, the price of the 12% bond could be expected to rise substantially above par, since it would yield 10% at a price of 120.

Price-based call options become more valuable as the prices of the underlying debt securities increase, and price-based puts become more valuable as the prices of the underlying debt securities decline.

Appraisers For Federal Government Foreclosure Prevention Program

2008-10-12T23:34:00.000-07:00

The Federal Government recently allocated funds to fight foreclosures nationwide. How will that affect refinancing, house appraisals, and the requirements for appraisers and residential real estate appraisal requirements in light of measures to stop foreclosures?

There are certain requirements for appraisers who are interested in participating in this Government program.

In order to qualify for placement on the FHA Appraiser Roster or retain an active status on the FHA Appraiser Roster, an appraiser must meet certain requirements. On the FHA connection, a secure HUD website, an appraiser roster application is used for applying for placement on the FHS Appraiser Roster. An appraiser with an active status on the FHA Appraiser Roster uses FHA Appraiser Roster update/renewal or addition of a state license or certification. Appraisers with an active status are on the appraisers list on the HUD website.

The appraiser’s information is checked in several federal systems when the FHA Appraiser Roster application or FHA Appraiser Roster renewal or update is processed.

To qualify an appraiser must be a state licensed or certified real estate appraiser with credentials based on the criteria established by the Appraiser Qualifications Board of the Appraisal Foundation. The National Registry of the appraisal subcommittee of the Federal Financial Institutions Examination Council must have a record of the appraisal’s current state license or certification.

See: Applying for placement on the FHA Appraiser Roster and maintaining your FHA Appraiser Roster information for details.

How To Prepare For Loan Modification

2008-10-11T17:22:00.000-07:00

If you are facing foreclosure, can’t make mortgage payments, or your house has lost up to twenty five percent of its value, you may qualify for a loan modification. If you have received a notice of default and are urgently trying to stop foreclosure, you are probably not thinking straight. Most likely you just want to get it over with. You are panicking and you are not able to keep your cool.

But getting your ducks in a row is critical at this time. You only have one shot at this negotiation with your lender. Be prepared. Gather all your income and expenses for the last two years. The documents you will need to include in the package are pay stubs, income tax returns, bank statements, property tax bill, etc. Compile all your mortgage documents and add them to the file. Pull together all bills, paid and outstanding, from the times you were falling behind on the house payments until now.

Include utilities, auto payments, credit cards, student loans, child support, medical bills. Find the winter and summer heating and cooling bills. You need to also include everything that documents why you fell behind in your payment or can no longer afford to make high mortgage payments or payments at increased interest rate. An employer's notification of reduced hours or a layoff may be helpful. An invoice for an auto repair or a furnace replacement, a shutoff notice from a utility.

Second preparation step in your loan modification negotiation is to prepare a Hardship Letter.

You will need to demonstrate to the lender that it is in the bank’s best interest to keep you in your house. A good loan modification hardship letter shows valid reasons for example, been laid off, hospitalized, unable to work, or mortgage loan adjusted, was deceived into a loan fraud etc.

When putting together your hardship letter, be sure to point out everything you can. However, you will need to demonstrate how you are going to make payments on your new, reduced loan. If you cannot possibly make payments, it is unlikely that loan modification is the option for you. Talk to a financial specialist if you have lost your job and consider other options. If your pay has been reduced, or your loan balance is higher than your home value, but if you can still make mortgage payments, you may be a good candidate for a loan modification.

How To Stop Foreclosure Fast Though Loan Modification Programs

2008-10-10T15:50:00.000-07:00

Stop Foreclosure Now Though Loan Modification

I can’t make my mortgage payment this month. I am in foreclosure. Can I refinance? Can I save my home from foreclosure? Where can I get information on how to stop foreclosure? My interest rate went up and I can’t keep up with my mortgage payments. What can I do? How can I change my loan terms to stop foreclosure and keep my house? I have had financial hardships. I’ve lost my job. I am losing my house. Help from foreclosure. My lender is foreclosing on my house. I’ve received a NOD – notice of default. My house value went down. My house is not worth what I owe on it. Can I re-appraise my house and get a new loan? How can I find an appraiser to appraise my house at a lower value, at today's market value? Do I need an attorney to stop foreclosure?

If you are asking these questions, you’ve come to the right place. This article explains options to prevent foreclosure, ways to stop foreclosure and how to change your house mortgage payments, lower interest rate and re-appraise your house to lower your mortgage balance.

One way to stop foreclosure is loan modification. Most 'A' type lenders and 70% of sub-prime lenders will agree to negotiate loan modification whereas most of the delinquent payments as well as foreclosure fees are added on to the back end of the loan. Payments can remain approximately the same. In some instances your interest rate will be reduced permanently.

Another way to prevent foreclosure is so called forbearance. Usually, thirty percent of sub-prime lenders will only be offered a workout program that requires borrower to immediately pay at least 20% or more of the total delinquencies including foreclosure fees, plus the balance of the delinquency will be added to their regular monthly payments over a period of six to forty-eight months. Forbearance plans do not remove a foreclosure action but simply stop it in place until the loan is current.

A loan workout is an agreement that is negotiated with your current lender that changes the terms of your current loan. Lenders are willing to negotiate when borrowers are facing financial difficulties and can't obtain other financing alternatives. You must show the lender why it would be in the lender's best interest to agree to a workout arrangement. If convinced, a lender may be willing to reduce the loan interest rate, reduce monthly payment amounts or change other loan terms.

A loan modification generally occurs where the parties to a problem loan mutually agree to workout the problem by creating new and better loan terms. The hope is that the new loan will enable to the borrower to meet their obligations.

When applying for a loan modification, make a game plan on how exactly you are going to approach them. These people are trained in minimizing loss for their company and they get paid to by getting the most amount of money out of you as possible or declare that your case is un workable and foreclose on you. That is how they mitigate loss. If you understand this, then you'll know that you have to approach them and all conversations very carefully.

Lenders are in desperate need of getting payment from homeowners that cannot afford their required mortgage payment due to the mortgage crisis adjustable rate loans which have adjusted into a bad situation for many homeowners nationwide. Loan modifications provide benefits for both the borrower and the lender/investor. You need to understand that the lender does not want your devalued house. The lender wants its money and interest. It is in the best interest of the lender to keep the borrower in the house and keep receiving mortgage payments from the homeowner.

Borrower Benefits Of Loan Modification:

1) Payments are more affordable for the borrower
2) Terms are changed towards borrower(s)' benefits or ability to pay (example would be to change interest rate)
3) Saves borrower's credit
4) Saves borrower's home from foreclosure
5) Faster, easier, and simpler process
6) Can be more affordable and a lot less expensive than a refinance

Lender Benefits Of Loan Modification:

1) Will still have borrower making mortgage payments and therefore still profiting.
2) Cut back on costs involved when property is foreclosed.
3) Have less delinquencies or mortgage defaults in their portfolio.

If you have a Federal loan program, such as FHA, or VA loan, remember, FHA and VA loans can also be modified.

Can I stop foreclosure myself? Or do I need to hire an attorney to stop foreclosure process?

It is possible to stop foreclosure without an attorney. You will need to gather necessary documents to prepare for your negotiation with the lender. This page Stop Foreclosure Now will give you the information you need to know to prepare for your loan modification negotiation with your bank. Go to Stop Foreclosure Now

What’s Today’s Prime Rate, October 2008 For Home Loan Refinancing?

2008-10-09T19:03:00.000-07:00

Today’s prime rate is a hot topic especially amongst people who face foreclosure, those who have mortgages at high variable rate, and those who are concerned what will happen with Washington Mutual home loans and can we refinance wamu home loans now at the lowest rate. What’s today’s prime rate means the current lowest interest rate you can refinance your house at. Many homeowners wonder can I refinance under bailout plan and stop foreclosure now? Many wamu clients will want to know what to do with their wamu home loans under Chase. How to refinance under the bailout plan and how bailout plan will help refinancing. Some ask, should I refinance my house today and in fact, can I refinance my house today?

First lets look at home prime rate is determined to understand whether you can refinance at a prime rate. A prime rate, also called prime interest rate is the lowest rate that is offered to preferred borrowers. Can you stop foreclosure and refinance at a prime rate? If you are in foreclosure now, refinancing may be a difficult option to pursue especially if you have a subprime mortgage with a high risk subprime lender. We’ve all seen what has happened to Washington Mutual, thus if you are looking to refinance now, you may want to go with a more stable lender. Mortgage brokers are getting busy looking for potential clients to refinance and in today’s economy it is critical to find a lender who will get you the cheapest mortgage, and the lowest rate possible.

Fill out loan applications with several lenders and shop around before you find the loan terms that suit you best and ensure that you are in the best possible situation for your needs and income. Before you fill out a loan application, check with different lenders. Many lenders and mortgage refinance brokers post today’s prime rates on their web sites. That doesn’t mean that you can get a prime rate, but you can sometimes fill out a loan application online and get a response from the mortgage broker offering you a good rate.

New Stock Market Glossary of Financial Terms And Definitions

2008-10-09T08:48:00.000-07:00

If you have been investing in stock market, you probably are already painfully familiar with the new financial terms and definitions, but if you are just thinking about investing in stock market for the first time, it is critical that you familiarize yourself with the new financial terms that have changed their original meaning in light of recent stock market downturn. These definitions have been floating about and I have compiled what looks like a pretty complete stock market glossary.

AUDITOR – Person who arrives after a battle to finish off the wounded

BROKER -- What my broker has made me

CASH FLOW -- The movement your money makes as it disappears down the toilet

CEO --Chief Embezzlement Officer

CFO-- Corporate Fraud Officer

BULL MARKET -- A random market movement causing an investor to mistake himself for a financial genius

BEAR MARKET -- A 6 to 18 month period when the kids get no allowance, the wife gets no jewelry, and the husband gets no sex

VALUE INVESTING -- The art of buying low and selling lower
Momentum Investing – The art of buying high and selling low

P/E RATIO -- The percentage of investors wetting their pants as the market keeps crashing

EBIT – Earnings before irregularities and tampering

EBITDA – Earnings before I tricked the dumb auditor

STANDARD & POOR -- Your life in a nutshell

STOCK ANALYST -- Idiot who just downgraded your stock

STOCK SPLIT -- When your ex-wife and her lawyer split your assets equally between themselves

FINANCIAL PLANNER -- A guy whose phone has been disconnected

MARKET CORRECTION -- The day after you buy stocks

YAHOO -- What you yell after selling it to some poor sucker for $240 per share

WINDOWS -- What you jump out of when you're the sucker who bought Yahoo @ $240 per share

INSTITUTIONAL INVESTOR -- Past year investor who is now locked up in a mental institution

PROFIT -- An archaic word no longer in use

Fed Cuts Rates As An Emergency Measure To Stabilize The Economy

2008-10-08T19:46:00.000-07:00

In an attempt to stabilize the economy worldwide, the Federal Reserve, the European Central Bank, the Bank of England, Bank of Canada, Swiss National Bank, and the Swedish Riksbank have coordinated 50 basis-point interest rate cuts announced.

The Fed vote was 10-0. The Fed simultaneously cut the discount rate by 50 basis points to 1.75%.

In the last trading hour today, Wednesday, October 8, 2008, The Treasury Secretary Henry Paulson said that all the financial market turmoil has seriously affected the economy, but he said the administration is moving quickly to begin the largest government rescue effort in history.

Even with the program to buy bad assets from financial institutions, some banks will fail, he said. It would be several weeks before the program makes its first purchases of troubled assets, he said. Paulson also called for patience saying "the turmoil will not end quickly and significant challenges remain ahead."That measure did not add confidence to the investors and the market closed down today regardless of the SEC ban on shorting financial stocks. Investors continued selling on Wednesday on a high trading volume.

European markets closed substantially lower on the news of emergency rate cuts. In London, the FTSE 100 index fell 5.2% to 4,366.69. In France, the CAC 40 index dropped 6.3% to 3,496.89. Germany's DAX index tumbled 5.9% to 5,013.62.Economists remain pessimistic and predict that the rate cut will not make a significant difference in the already damaged financial and lending sector of the economy.

FDIC Increases Insurance Coverage Per Depositor

2008-10-08T19:12:00.000-07:00

If you are still concerned what is going to happen to your Washington Mutual account in light of recent events and class action law suits filed against Washington Mutual, you may be relieved to know that as of October 3, 2008, FDIC has increased insurance coverage for account holders. This increase will be effective throughout December 31, 2009 and is considered an emergency measure that is a temporary relieve to do financial hardships that the lending and banking sectors have been experiencing recently putting account holders at risk.

What does it mean for you as a Washington Mutual account holder? Will my account be safe at Washington Mutual? Can I continue depositing money in my Washington Mutual account? What will happen if the new owner of Washington Mutual agrees to settle claims for securities fraud? Will I lose my money at my Washington Mutual account if there is a verdict against Washington Mutual for securities fraud class action law suit?

At this point it is premature to skin a bear that is yet to be killed, but FDIC’s emergency measures help Washington Mutual account holders be more at ease. Some say that FDIC does not have money to cover all the deposits, and has already spent a half of its funds. These are rumors floating in the air and we don’t know how FDIC is going to deal with the increasing need for cash.

Here is the new FDIC insurance schedule as of October 3, 2008

Basic FDIC Deposit Insurance Coverage Limits

Single Accounts (owned by one person)
$250,000 per owner

Joint Accounts (two or more persons)
$250,000 per co-owner

IRAs and certain other retirement accounts
$250,000 per owner

Trust Accounts
$250,000 per owner per beneficiary subject to specific limitations and requirements

Corporation, Partnership and Unincorporated Association Accounts
$250,000 per corporation, partnership or unincorporated association

Employee Benefit Plan Accounts
$250,000 for the non-contingent, ascertainable interest of each participant

Government Accounts
$250,000 per official custodian

Washington Mutual Common Stock Class Action Law Suit

2008-10-08T16:21:00.000-07:00

Washington Mutual Inc. OTC: WAMUQ common stock that is currently trading at over the counter stock exchange for just pennies has been hit on the news. Washington Mutual assets are practically worthless. What should investors do? Can I sue Washington Mutual for securities fraud? Do I qualify to join a class action suit against Washington Mutual? Can I recover my money and investments I made in Washington Mutual stock?

With its current market cap as of today valued at only $179.1 Million, there isn’t much money left to recover and only crumbs will be left to Washington Mutual stock investors to fight for. My 401K plan is comprised mainly of disvalued Washington Mutual common stock. What can I do?

Certainly, the news of devaluing Washington Mutual stock is a disaster if you thought that Washington Mutual stock was a sure-fire stable investment and failed to diversify your investments. How do you go about recovering money from your lost investment?

What class action law firms have filed a securities fraud legal action against Washington Mutual? There are quite a few so far. Here is a summary of public announcements made by class action firms that have filed law suits against Washington Mutual.

The Securities Law Firm of Klayman & Toskes files a securities class action law suit against Washington Mutual on behalf of stock holders.

The Securities Law Firm of Klayman & Toskes, announced on October 3, 2008 that a class action lawsuit, Case No. 08-cv-09801, has been filed on behalf of purchasers of Washington Mutual (OTC: WAMUQ) securities. Potential class members should consider whether they should participate in the class action or file an individual securities arbitration claim.

Klayman & Toskes represents retail and institutional investors who have sustained investment losses as a result of holding large, concentrated positions in a single stock or a specific sector. Many full-service brokerage firms recommended the purchase of Washington Mutual securities to both retail and institutional accounts. However, brokers and financial advisors may have purchased an unsuitable amount of Washington Mutual securities in their clients' accounts, thereby creating a significant over-concentration. Over- concentration exists when 10% or more of the investment portfolio is invested in a single security or sector.

Klayman & Toskes reminds investors of the benefits of filing an individual arbitration claim, as opposed to participating in a class action lawsuit. By participating in a class action lawsuit, an investor will most likely recover only pennies on the dollar. However, if one has experienced substantial losses as a result of being over-concentrated in Washington Mutual securities, it may be more beneficial for them to file an individual securities arbitration claim.

SOURCE The Securities Law Firm of Klayman & Toskes

The Securities Arbitration Law Firm of Tramont Guerra & Nunez, PA (TGN) made a public announcement regarding a class action filed against Washington Mutual on October 7, 2008.

The Securities Arbitration Law Firm of Tramont Guerra & Nunez, PA (TGN) makes an announcement to Washington Mutual (NYSE: WM) shareholders concerning the class action period. The Washington Mutual class action lawsuit (Case No. 07 CV 09801) class period, which runs from July 19, 2006 to October 31, 2007, does not include losses during the 2008 market decline.

Since the filing of the class action lawsuit, Washington Mutual stock has continued to decline and today is practically worthless. As a result of these developments, shareholders who held Washington Mutual stock through the advice of a financial advisor with a full service brokerage firm might recover a greater portion of their losses in an individual arbitration claim, through pleading a sales practice violation.
Sales practice violations, such as investment concentration in a particular security or sector and the failure to implement risk management strategies, are both violations which qualify for damages from a security arbitration claim filed with the Financial Industry Regulatory Authority, (FINRA). Investors that relied on a financial advisor may be able to pursue a securities arbitration claim with FINRA when their case facts and investment losses justify such a claim. In some cases, shareholders must "opt-out" as a class member in order to pursue a securities arbitration claim, otherwise this legal option is not available.

SOURCE: Tramont Guerra Núñez, PA

From Bracewell & Giuliani LLP

In connection with the FDIC receivership for Washington Mutual Bank (WaMu Bank), as well as the Delaware Chapter 11 proceedings for Washington Mutual, Inc. (NYSE:WM) and WMI Investment Corp., a group of WaMu Bank senior and subordinated noteholders formed last week in order to discuss matters of mutual interest. The group, which continues to grow, includes more than two dozen institutional investors and secondary market purchasers holding close to USD 2 billion in senior and subordinated notes.

SOURCE: Bracewell & Giuliani LLP

As usual, it is likely that once multiple legal actions are filed, they will be consolidated in one law suit. Considering there are so many class action law firms involved, there won’t be money left to distribute to the actual stock holders once the dust settles and Washington Mutual agrees to settle the law suit.

Is It Safe To Keep Money In My Washington Mutual Account?

2008-10-08T15:39:00.000-07:00

Since the collapse of the financial giant, many Washington Mutual customers have been wondering if it’s safe to keep money in Washington Mutual accounts, including checking accounts, savings accounts, CD and high yield money market accounts. Customers have been taking money out of their Washington Mutual accounts and since September 16 have withdrawn $16.7 billion from the bank.

Having been a Washington Mutual loyal customer for many years, I like Washington Mutual friendly policies, its overdraft rebate perks and the friendly staff at my Washington Mutual branch. I don’t want to withdraw money from my Washington Mutual accounts. Yet, many Washington Mutual customers do no agree with this philosophy. Washington Mutual has lost substantial assets since its merger with JP Morgan Chase and is continuing to lose financial assets. Customers prefer to look for a more stable bank to keep their money. With lots of cash on hands former Washington Mutual customers ask, where can I put my money so it is safe?

Today I went to a local Washington Mutual branch and the business seemed to run smoothly just as usual as nothing ever happened. The staff did not seem worried about losing their jobs. Perhaps the distance between that particular Washington Mutual branch located miles from the nearest JP Morgan Chase gave the bank employees some security in their jobs. Do they keep their money in their Washington Mutual accounts? I am not sure what policy Washington Mutual has as far as having their employees open checking accounts for direct deposit.

Personally, when I worked for CitiBank, it was required that employees open a checking account for direct deposits of their paychecks. But what will happen to Washington Mutual customers who are not employed with Washington Mutual but who have their paychecks directly deposited into Washington Mutual checking accounts? How will that affect their accounts and are their accounts with Washington Mutual a safe harbor for their money now that JP Morgan Chase has taken over?

Can I Refinance Now and Get A Fixed Rate?

2008-10-08T10:58:00.000-07:00

Homeowner ask, how does the current economic situation reflect on mortgages and homeowner’s ability to refinance their home loans? Can refinancing be done is today’s economy? Who will refinance my home loan? If you have a home loan with Washington Mutual, will Chase refinance Washington Mutual loan? What is wamu mortgages foreclosure timeframe? How will bail out plan affect mortgage refinance? Is my equity loan safe? How Does Wall Street Affect Mortgage and Refinance Home Loans?

The Wall Street does not directly affect mortgage and refinance loans. No does the Wall Street affect interest rates. Interest rates are controlled by the Fed. While it is difficult to predict mortgage rates in upcoming months with accuracy, the question that many ask is will the Fed lower refinance rates?

2003 was the peak of the refinance bubble with many homeowners grabbing 5/25 loans, meaning the rate is fixed for the first five years and then it becomes variable. It is no surprise many homeowners want to refinance at a fixed rate and get as low as possible fixed rate. Is that possible? How can I get a low fixed rate? What are the rates now? Can I refinance at a low fixed rate now? Can I refinance with bad credit? My credit score is 500, can I refinance?

Those are the questions to ask your lender. Different lenders will offer you different refinancing options, so it is advisable to speak with several lenders when you are looking to refinance your house and get a better rate.

Real Estate Appraisal Company in San Francisco, Bay Area, CA

2008-10-08T03:09:00.000-07:00

Real Estate Appraisal Company in San Francisco, Bay Area, CA

House Appraisal Services is a prominent real estate appraisal company headquartered on the East Bay in the San Francisco, Bay Area, California. Established in 1987, House Appraisal Service has been a leading appraisal firm in the Bay Area, specifically on the East Bay in the cities of Alamo, Blackhawk, Walnut Creek, Lafayette, Moraga, Orinda, Danville, San Ramon and the surrounding areas. House Appraisal Service is available for home appraisal inspections in the Greater Bay Area, Sonoma County, and Napa County. House Appraisal Service specializes in appraising custom multi-million dollar homes, as well as tract single family homes, and multi-family homes.

Do you need accurate and reliable appraisals to estimate the current or past value of homes for loan refinance, probate, estate or divorce purposes? If so, House Appraisal Service has extensive experience in appraising homes throughout the entire San Francisco Bay Area for just these purposes. House Appraisal Service specializes in retrospective appraisals (value estimate as of a specified prior date) and can provide you with dependable and precise reports that can stand up to scrutiny from any government agency or any party that you may have to contend with. The turn around time for reports is usually 2 to 3 business days after inspection. A thorough work file of the assignment is maintained for 10 years.

House Appraisal Service has extensive experience in providing expert witness testimonies in legal proceedings in the court of law of divorce/dissolution and probate nature.

If you have any questions or would like to discuss your situation, call 925-256-9196 – Mitch House at House Appraisal Service

How Can I Modify My Home Loan Terms?

2008-10-07T07:33:00.001-07:00

Can I reduce my loan balance? My house is not worth what I owe on it. Can I re-appraise my house and reduce my mortgage payment, interest rate and mortgage balance? Those are the questions that homeowners hit by staggering economy and collapse of the financial markets ask.

In today’s home pricing situation modification of an existing home loan terms seems like a viable option that will help homeowners stay in their home, avoid foreclosure and continue making mortgage payments to the lender or the bank.

On Monday, October 6, 2008, associated press reported that Bank of America settled law suits over bad mortgages.

Bank of America said it will modify home loans to help keep homeowners from foreclosures homes.

Bank of America has agreed to pay more than $8 billion to modify home loans to keep people from foreclosures. Bank of America will modify existing home loans with up to $8.4 billion in interest rate and principal reductions for close to 400 thousands customers of Countrywide

Financial, the mortgage lender that Bank of America acquired last summer.
The Illinois attorney general's office said Sunday that Bank of America was to modify loans for its borrowers in 11 states.

Some borrowers stuck with Countrywide Financial borrowers may qualify for interest-only loan for the next ten years. Even people who can't afford to continue making their mortgage payments in the staggering economy and continuing growth of unemployment will be able to get help moving to a new home.

Can Small Businesses Survive in Today's Economy?

2008-10-06T21:41:00.000-07:00

Business and economic news is the worst in decades. The cliché, of course, is: The bigger they are, the harder they fall. And sometimes - the faster they fall. Consider Countrywide Financial, Fannie Mae, Freddie Mac, Washington Mutual and Wachovia. And don't forget others from the past. Other large financial companies are in jeopardy and even more, deep-pocketed multinationals are feeling the heat.

But what about the little guy? What about Small Business? How can the corner store owner survive the next few years?

Get back to basics. Old values like quality, customer satisfaction, worker morale, and loyalty to reliable suppliers might pay off more than the newest management fads or "thinking outside the box".

Many small businesses borrow money to pay their employees. Once the income from sales is received, those companies pay back their loan they got from the bank. Can that same business and financial model be operative in today’s economy?

Here is the best thing to do. If you can, by all means avoid debt and proceed with caution. Maintain a strong balance sheet. With asset values still in flux, assume that credit needed to take advantage of the many investment opportunities out there will be both more expensive and harder to come by.

Is Your Bank on the FDIC "Death Watch"?

2008-10-05T10:25:00.000-07:00

The battered U.S. financial system continues to take hit after hit. Just this past week the Dow plunged 777 points in one day -- the worst downward turn since the crash in '87.

On top of that, Citigroup's taking over Wachovia's banking operations... Lehman Brothers has filed for bankruptcy... Bank of America is taking over Merrill Lynch.The truth of the matter is we're facing a fallout that will likely decimate what’s left of the teetering U.S. banking industry… causing millions of Americans severe and irreparable financial pain. And things are going to get a whole lot worse. But most folks won't even know what hit them... and by the time they find out, the damage will be done.

If you keep your "safe money" in a bank CD, savings account or money-market fund, it is imperative that you take DEFENSIVE ACTION immediately.The U.S. banking industry is in the midst of a catastrophic collapse that could erase billions in shareholder wealth... and even siphon money from FDIC-insured bank accounts.Make no mistake; this is not some far-fetched doomsday scenario. This is reality. It is happening right now. And millions of Americans -- including you -- are at severe risk. Many of America’s giant financial institutions are mired in debt... collapsing real estate values... bad loans... and new-fangled investment products that were downright rotten to the core.

“Consumers should consider what steps they should take to protect their deposits,” warns ABC News… and I strongly urge you to heed this advice. Already in 2008, eleven U.S. banks have failed. To put that in perspective, only three banks have failed in the last three years combined! And things are getting worse every day…The Federal Deposit Insurance Corporation (FDIC) has just announced that a staggering 117 banks are on its “Death Watch” of troubled institutions.

According to FDIC chairman Sheila C. Bair, that's the most banks on the list in years... and more are expected to join it as credit problems worsen.Based on historic statistics, roughly 13% of banks that appear on the FDIC “Death Watch” go under. That means, that at least 15 banks are virtually guaranteed to go bankrupt in the coming weeks. That’s on top of the eleven banks that have already failed…This crisis will inflict irreparable financial pain on unsuspecting Americans still stuck in the outdated belief that banks are our “most trusted and stable institutions.”

Can I Consolidate Student Loan In Bad Economy?

2008-10-04T21:39:00.000-07:00

Consolidating private student loans will be more difficult when banks don’t lend money to each other and the economy is on the downside. With banks refusing to loan money to each other regardless of interest rates, student loan consolidation will become a task difficult to achieve. If you think that the state of the markets and the economy will not affect the ability of citizens to consolidate their student loans, you are being far from the truth. When some of the strongest players in the mortgage market, such as Washington Mutual and Wachovia have gone out of business, consolidating a student loan is nearly as difficult as refinancing your mortgage and avoiding foreclosure.

What will happen to the government student loan consolidation programs and Federal student loan consolidation programs? At this point it is premature to predict the financial outlook for the economy, the market and the mortgage and loan industry. But I would expect that in the lending environment when it is nearly impossible to obtain a new home loan, to refinance an existing home loan, and even get a car loan, consolidating a student loan is no different.

Wells Fargo buys out Wachovia

2008-10-04T19:40:00.000-07:00

In earlier discussions today between Wells Fargo and Wachovia executives, and a conference call to that affect, Wells Fargo executives stated that Wells Fargo agreed to acquire Wachovia for $7.00 per share for Wachovia, total consideration just slightly over $15 billion. Wachovia had already agreed to sell its banking operations to Citigroup which was leaning on assistance from the FDIC. The new deal encompasses not only the banking portion of Wachovia, but the full company including the investment bank and brokerage operations. Wachovia – Wells Fargo deal is a stock-based transaction with shares of Wachovia being exchanged to 0.19 share of Wells Fargo. The Wachovia – Wells Fargo deal was valued at around $15 billion dollars.

Wells Fargo’s position is as always conservative and when valuating the deal Wells Fargo executives were conservative in valuations and estimates. Wells Fargo is one of a few financial institutions that remains a strong financial position in today’s falling economy and the market.

Will The Fed Cut Mortgage Interest Rates?

2008-10-03T21:03:00.000-07:00

In the messy economy, declining home prices, homeowners facing foreclosure, and rejection of the $700 billion bail out bill, the next question is will the Fed cut rates? It seems like a measure that is warranted in today’s economy is cutting interest rates, which would ultimately allow homeowners to avoid foreclosure, and the need for loan modification would be eliminated, which would allow banks to stay afloat. Will the Fed lower rates?

We can speculate whether the Fed will cut rates, or whether another measure will take place that will hopefully help the economy stabilize. In Jim Cramer's comments on Stop Trading! Friday October 3 he mentioned a few stocks that he was not sure about, so stop trading, he said. He predicted that there is a possibility that interest rates will ultimately be cut and with that, he said, some of the stocks that go up when the Wall Street thinks the Fed will not do anything, but go down when the Wall Street thinks the Fed will cut rates. Speaking about the market, Cramer said it was “falling on its own weight.”

It seems that the Wall Street has forgotten about the failed bailed out plan and has shifted their attention to growing unemployment numbers. What the Government will do next to salvage the economy and stabilize the market remains unclear.

What If I Miss One Payment On My Home Loan?

2008-10-01T20:28:00.000-07:00

What if I can’t make a mortgage payment on time? Can I miss one payment on my mortgage? Will I be penalized for missing one mortgage payment? No wonder, in this difficult economic situation a lot of people may ask, what will happen if I miss my mortgage payment? Will I go into foreclosure?

The answer is not as simple as you think. One thing is for sure, you won’t go into foreclosure for missing just one payment on your mortgage and not making your mortgage payment on time. Can I be late on my mortgage payment? Yes, you can be late on your payment and avoid foreclosure altogether unless you completely stop making your mortgage payments. What’s the catch then? What kind of penalties will I incur for missing one mortgage payment?

If you have good credit but miss one mortgage payment, the lender (the bank) will punish you the most. Missing a payment and not making a mortgage payment on time will affect a person whose credit score is high more so than a person with poor credit. This happens for one simple reason. A homeowner with poor credit gets his home loan at a higher rate. He is already paying high interest rate to the bank, so missing one mortgage payment will not make much difference to the lender.

On the contrary, a homeowner who has an A+ paper financing and whose credit score is 750 FICO and higher, who’s never missed a payment in his life represents an easy target for the lender. From the lender’s prospective this person represents a very low risk, since he has a very good credit history and has always made payments on time. However, by missing a mortgage payment this homeowner’s interest rate increase can be justified from the lender’s perspective.

What that means to the lender is that it can now increase the interest rate at the refinance, because of the lower credit score that’s been affected by one missed payment. At the same time, when a homeowner with a bad credit score refinances his home, there won’t be much change in his credit score, since he’s been consistent in late mortgage payments before and his interest rate is already high. While representing a higher risk to the bank, a person with a low credit score can refinance at a rate with is closer to the rate of the original loan, than in the case with a homeowner with an A paper credit whose score suddenly took a nosedive.

How Credit Score Gets Checked at a Loan Time

2008-10-01T19:19:00.000-07:00

Every time you fill out a loan application, and apply for a loan, whether it is a home loan, a student loan, a car loan, a credit card, a consumer credit card at a department store, even a gas credit card, your credit score is affected. If you have bad credit, or less than perfect credit, when you apply for a loan, your FICO score gets checked by a credit bureau. Those credit bureaus gets paid each and every time you submit you loan application, so that the lending institution can property evaluate your qualifications for a loan.

You might say, I want to get a home loan. Or, I want to refinance my house now. And you are off to a bank, or a loan broker. You fill out your home loan application and wait. The loan broker or a loan officer will put your loan application into the system and it goes straight into credit bureau. Sometimes your loan application gets submitted to a single credit bureau, in cases with bank credit cards, or consumer credit cards. Sometimes, heavily in cases of a home loan application, your credit score will be checked with all three major credit information collecting companies. Say, the particular lender cannot approve your loan application. You go off to another lender and the same process takes place over again.

If you have bad credit, or what we refer to as poor credit, or even less than perfect credit, you may get turned down for a home loan several times with several different lenders. For instance you want to get a loan from Wells Fargo. Wells Fargo turns you down for a loan. So you are off to Bank of America. Your loan application gets turned down at Bank of America as well. You go to another bank and get turned down for a home loan there as well. So you are off to a subprime lender. And a subprime lender submits your loan application to ten different financial institutions. By the time your credit score is checked there, it has already gone through several credit score checks prior to that. But every time your credit gets pulled, the credit reporting agency gets paid by the lender. Your credit score may go down up to eighteen points every single time your FICO gets checked. The lower credit score you have, the more times you need to fill out a loan application with a lender. So, your less than perfect credit gets worse, as your credit score gets lower and lower.

Credit reporting agencies love people with bad credit, because they benefit every time your FICO gets checked for each different bank you’ve applied for a loan at. So, if you start your day with a credit score 600, go to three different lenders and get turned down for a home loan at all three of them, the next day your credit score may already be 550, which will make it even harder for you to get a home loan not only from a bank, but even from a subprime lender.

Home Prices Continue to Decline Reaching Record Lows

2008-10-01T09:00:00.000-07:00

Today’s Standard & Poor Press release demonstrates that residential real estate prices across nation continue to decline at the record levels. S&P/Case-Shiller Home Price Indices Graphs show that this is a continuing trend. The chart provided in the press release shows the 10-City Composite and the 20-City Composite Home Price Indices which demonstrates record declines of 17.5% for the 10-City Composite and 16.3% for the 20-City Composite. This is the biggest annual decline in home prices in history. The graphs show that even though home prices continued to fall, the decline has slowed down in the past three months. However, David M. Blitzer, Chairman of the Index Committee at Standard & Poor’s said although the home prices are still dropping, there is no evidence of the bottom.
Las Vegas home prices reached record level drop, experiencing a decline of 29.9% with Phoenix and Miami shortly following. Other areas while showing slight improvements remain at the record lows. Atlanta, Boston, Dallas, Denver and Minneapolis reported positive returns in the three months. However, all areas stay too close to the record lows to predict if they’ve hit the bottom and are now improving.

Are My Deposits and Investments Safe At Washington Mutual?

2008-09-30T21:29:00.000-07:00

On the news of the Government seizure of the financial and lending giant Washington Mutual, bank account owners rushed to the banks to get their hard earned cash from the banks and ATMs. It seems that citizens’ trust in the country’s financial infrastructure has been broken. In San Francisco/Bay Area, CA, multiple cases of car sales with buyers handing the sales persons cash have been reported. People keep their cash at home, just like in the good old days.

A retiree in her seventies withdrew $25,000 in cash from her Washington Mutual checking account on the news. “I went to a car dealership and bought a new car,” she said. “The sales person at the dealership said many people came in that day handing him cash to pay for new cars.”

It appears that the new management of now non-existent Washington Mutual already knew what was coming and was prepared to greet lines of anxious Washington Mutual account holders lining up at the door early in the morning.

Seems like general public, not trusting the banks prefer to keep their money in the jar or spend it all. Does that mean that consumer spending will experience a temporary surge due to cash-rich citizens’ fear of losing their money?

What Will Happen To My Home Loan With Washington Mutual?

2008-09-30T20:36:00.000-07:00

Many homeowners are now concerned what will happen to their home loans they obtained from the troubled Washington Mutual. And to no surprise. Washington Mutual with its expensive prime and especially subprime mortgage portfolio and Pick-A-Payment loan instrument, whereas the borrower was able to pick the type of mortgage payment he wanted to make each month, leaving the borrower an option to make a minimum payment which didn’t cover even a half of the monthly interest, similar to making a minimum payment on a credit card was by far the most favorable lender to its borrowers. Except for the generosity of a “nice” lender did not get Washington Mutual far. The lending giant filed for Chapter 11 bankruptcy protection shortly after it’s banking operations were seized by the federal regulators and sold to JP Morgan Chase.

What will happen to our mortgage loans, our home equity line loans, and other credit lines extended by Washington Mutual to its clients? Another problem to consumers lies in their inability to repay high mortgage balances increased over a period of a few years since obtaining the home loan due to applying part of the interest toward the mortgage balance, in cases with a Pick-a-payment and negative amortization loan, and declining home values.

For those who are facing foreclosure due to predatory lending practices and deceptive loans, there is a way to stop foreclosure. There are different methods to stop foreclosure.

Some of them enable the homeowner to keep the home. Loan workout is one of the methods to stop foreclosure whereas the owner gets to keep the house. Some other ways to prevent foreclosure provide for an exit strategy.

Forbearance is a way to prevent foreclosure once a Notice Of Default has been filed by the lender. In this case, the bank will delay or reduce your monthly mortgage payments for a specific agreed upon period of time, keeping in mind that the homeowner will bring his account current within a certain time frame.

Special Forbearance offers a longer repayment plan-up to 24 months.

Loan Modification is the best way to prevent the bank from foreclosing on your home and a trustee’s sale. In the case of loan modification the respective lender agrees to re-negotiate the terms of the original note to a plan that is more affordable to the borrower so that the borrower can stay in the home and continue making mortgage payments. Methods used in loan modification may include a reduction in interest rate, modification of term or reduction the principle, or a combination.
Deed in lieu AKA a voluntary reconveyance, whereas the borrower will sign a deed conveying all interest in the real property to the lender. That basically means that you walk away from your house but avoid foreclosure proceeding and a foreclosure record on your credit report.

Bail out loan is a new loan AKA refinance, whereby the defaulted mortgage is paid off in full and is replaced with the loan taken to repay the original loan. This is a temporary fix and there is no guarantee that the borrower once obtained a new loan will not default on the new loan as well.

Bankruptcy: A legal process that allows a debtor to enter into a court approved repayment plan.

A borrower in foreclosure needs to carefully consider his options.

If you would like more information about loan modifications, visit Stop Foreclosure Now

Can I Still Access My WaMu Account Online?

2008-09-30T15:27:00.000-07:00

Accessing your Washington Mutual account online is functioning as usual. There are still some minor glitches though. I just logged onto my personal and business Washington Mutual account, and while a couple of payments that were scheduled before the Government seizure of Washington Mutual already went through and are reflected as paid, one payment that I know for a fact went through is still not showing.

I wrote about accessing Washington Mutual accounts online in my previous post What Will Happen To Washington Mutual Checking and Savings Accounts? And clearly I was right about the tech department of JP Morgan Chase staying on top of things. They’ve started working on switching accounts to JP Morgan Chase and today the welcome page of Washington Mutual online banking website already reflected the new logo of JP Morgan Chase. Below is what the WaMu website welcome page looks like now. If you want to learn more about the asset protection of your deposits with Washington Mutual, check out Is My Washington Mutual Account Safe?

Is My Washington Mutual Account Safe?

2008-09-30T14:15:00.000-07:00

Information about how FDIC, SIPC and other programs protect your deposits and other financial assets held in financial institutions including banks.

Recent fiasco of Washington Mutual, its seizure and sell out that has been all the media, as well as other reports of failing banks and financial services companies that go bankrupt have probably made you wonder, are my assets safe? What will happen to my Washington Mutual Checking and Savings Account? How will the Washington Mutual takeover affect my CD rate? How will that affect my Washington Mutual credit card? What will happen to savings rates on my Washington Mutual account? Is it safe to deposit money in Washington Mutual? Is the money I have in my Washington Mutual account safe? Should I withdraw money from my Washington Mutual checking account? What will happen to my Washington Mutual home loan and do I have to pay my mortgage on its due date? What will happen to my Washington Mutual home equity loan? Will my rates change?

Understandably, you have many concerns about what this could mean for you and your assets held at Washington Mutual. Most importantly, you want to know if your money is safe at your Washington Mutual account. The information below explains to you how FDIC and other entities work to protect your assets held in banks, including Washington Mutual.

FDIC

The FDIC, an abbreviation for Federal Deposit Insurance Corporation, insures deposits placed in banks and in other financial institutions that are members of FDIC. Washington Mutual is or was a member of FDIC and if you look at your bank account statement it shows a little icon that stands for member of FDIC.

The FDIC is backed by the U.S. Government. In the event a bank fails, which we just witnessed a few days ago in the case with Washington Mutual, the FDIC will insure the deposited funds up to the established limits.

The basic amount of the FDIC insurance is $100,000 per account holder per each insured bank. In this case, if you hold up to $100,000 in one insured bank, your money is backed in full by FDIC. If you have substantial funds to hold, a good option would be to spread that money between different insured banks, so that at each bank you can have up to $100,000. However, certain retirement accounts, for instance Individual Retirement Accounts, are insured up to $250,000 per account holder per bank.

The FDIC insures all deposits at insured banks, including checking and savings accounts, high yield accounts, such as money market accounts and certificates of deposit (CDs), up to $100,000. It is important to understand that FDIC insures an account owner for up to $100,000, and not the individual account. For instance, if you have had more than one account at Washington Mutual, or any other bank or a financial institution, you may have had more than one account on your name. Many people prefer to have a checking and a savings account at the same bank and transfer money from their savings account to their checking account as needed for purchases and other expenditures. You may, in addition to your savings and a checking account, also have a money market account at the same bank. Your entire portfolio at that bank, provided that the bank is a member of FDIC is ensured for up to $100,000, and not each single account.

If you have more than $100,000 in cash that you want to hold at the same bank, you may want to spread that money between the members of your family, or form a legal entity such as a corporation to be a separate account holder.

The money you invest in stocks, bonds, mutual funds, money market mutual funds, life insurance policies, annuities, municipal securities, are speculative investments and are not insured by the FDIC. Even if you obtained your money market mutual funds at a bank branch, your money is not insured by FDIC.

For more detailed information, look up FDIC

Washington Mutual Securities Fraud Class Action Law Suit Filed

2008-09-30T13:26:00.000-07:00

Washington Mutual shares of common stock opened at today’s trading at 0.0515 and bounced throughout the day at between $0.049 and $0.085 range. It is expected that Washington Mutual stock will be liquidated since JP Morgan Chase acquired virtually all of the assets of the troubled thrift. Last night, after the market’s closing, Market Wire reported that a class action suit has been initiated and a public announcement to that affect has been made by The Securities Arbitration Law Firm of Tramont Guerra & Nunez, PA (TGN) to potential members of the class. The class action lawsuit filed against Washington Mutual is Case No. 07 CV 09801. Potential class members of said action are advised as required by the law to chose between either joining in the class action suit or opting out on their individual legal endeavors.

As required by the legal statutes, individual investors desiring to pursue recovery on their own must opt out, otherwise they will be excluded from the class.

It is a common practices for class action law firms to notify individual investors presumed to qualify as a class member by mail whereas step by step instructions are offered to assist the investor in either one of the options. If chosen to opt out, an individual investor in the case with Washington Mutual will need to go through an arbitration process, in which case the investor has an opportunity to recover higher percentage of the investment. However, I personally think that more than one class action case will be filed against Washington Mutual, in which event all of such actions are expected to be consolidated.

If you are a potentially injured investor, look up of Tramont Guerra & Nunez, PA

What Will Happen To Washington Mutual Checking and Savings Accounts?

2008-09-29T21:29:00.001-07:00

How will Washington Mutual account holders be affected by the merger with JP Morgan Chase? What does the merger mean for Washington Mutual customers? What will happen to the money deposited in the Washington Mutual checking and savings accounts, as well as money market accounts and CD’s? Will we lose our accounts and deposits?

According to the media, Washington Mutual account holders have nothing to worry. The existing Washington Mutual checking and savings accounts, as well as high yield paying accounts such as money market accounts and certificates of deposit will operate as usual. Those funds are ensured by the FDIC. From the bank customer’s prospective, nothing will change. The accounts will operate just as they did before the Washington Mutual & JP Morgan Chase merger takeover, with the same account numbers, ATM cards, ATM locations and branch locations until JP Morgan Chase closes some of the redundant bank branch locations overlapping with the existing JP Morgan Chase branch locations.

At some point in the future it is expected that your Washington Mutual bank monthly statement will reflect JP Morgan Chase name and that a new ATM card will be issued to the account holders.

I was a little bit worried over the past couple of days not knowing how Washington Mutual takeover will affect my personal checking and savings accounts. When I went on Washington Mutual website earlier today to check my balances something didn’t seem right. I remember scheduling online credit card payments and a utility bill payment from my Washington Mutual checking account, but my online statement did not reflect that those payments were made. However, when I checked my utility bill online it reflected a payment. Same with two credit cards. The credit card account were not with Washington Mutual, and both reflected payment as received and processed.

Working in the IT in the banking before I remember when the bank I was working for had two takeovers, some strange things happened to account holders. In fact, while we were in the process of switching accounts to the new bank overnight, a couple of confused bank customers who went to an ATM to get a withdrawal knocked on the door when they saw the light inside. One customer reported he had more money in the account according to the ATM statement and the other reported that the money was missing. The problem straightened itself out once the transfer of the account information was completed. So at this point I am not worried about that. Clearly the payments to my credit cards went through which is a good thing, but Washington Mutual statement not reflecting debit may just be due to the accounts presently being switched over to JP Morgan Chase. In my opinions it is too soon to switch the accounts over, but if JP Morgan Chase was able to get their IT Department on top of it this fast, that just means that things are under control.

If you have an account with Washington Mutual, go online on Washington Mutual website and check your balance. Don’t freak out if the account shows a different amount than what you expected. These things are natural when date is being transferred from one financial institution to another and in my experience working in IT for a large bank in the past, it takes less than a day to fix things up and get them back to normal.

Look Up More Information: Washington Mutual JP Morgan Chase Wall Street Journal Wells Fargo Wachovia Citigroup Federal Deposit Insurance Corp Bankrate.com ATM FDIC

Washington Mutual Financial Outlook

2008-09-29T19:17:00.000-07:00

Washington Mutual used to be a strong Wall Street performer just a few years ago. With its low P/E, which is not unusual for the financial sector, and its healthy reliable dividend, Washington Mutual stock seemed like an attractive investment. I remember talking to a mutual find manager a few years back who vaguely suggested his fund was buying blue chips and the financial sector stocks that seemed to be low upside potential securities, and not as aggressive as some other market sectors, but seemed like more reliable investments compared to more aggressive, flight by night biotech startups. Trading Washington Mutual stock a few years back, buying it at the mid to high $30th and selling at the low $40 was a sure-fire short term gain. Additionally, if you used to own Washington Mutual stock on its ex-dividend day, you profited a healthy dividend at somewhere around 4% annual interest rate which was a good annual return in the low savings interest rate climate.

Looking at the Washington Mutual stock quote today I am glad I sold it years back at forty something dollars per share. Somehow their lending practices were not impressive to warrant holding the stock, and working in the lending industry I literally witnessed barely qualified borrowers walk away with home loan application approved for hundreds of thousands of dollars, which I considered a high risk loan even though Washington Mutual was mainly considered a prime lender with unsubstantial sub prime loan portfolio.

As far as Washington Mutual retail banking goes, I have banked with Washington Mutual for years, and honestly, I never had any complains. Just the other day, in fact a few days before the Government’s seizure of Washington Mutual and the takeover deal by JP Morgan Chase I walked into a Washington Mutual retail branch to find that they had a customer appreciation day, an event that appeared to be conducted annually. The bank teller at my Washington Mutual branch took a deposit and checked my balance with a smile. A few days later, while vacationing in FL I discovered that Washington Mutual was seized by the Government. Still, even today, there is nothing on Washington Mutual website that alarms the account holders. While Washington Mutual employees came to work the following day wondering about their jobs on the forecast of multiple retail baking locations being shut down, by looking at the Washington Mutual website you can’t tell there is a problem.

The Washington Mutual stock has plummeted over the past couple of days to reach record low and opened today at $0.13 per share slightly rebounded and continued to decline after hours today to reach $0.16 per share.

52- Week range for Washington Mutual stock is 0.15 - 36.47 as of today and the one year target estimate is $3.63 according to yahoo finance. What are the analysts’ predictions at this point? Is it a strong by or will it continue to decline until completely dissipates?

Where Will Our Economy Go?

2008-09-29T12:23:00.000-07:00

With the collapse of the Wall Street, Citigroup’s takeover of Wachovia and seizure of the major lending institution, Washington Mutual, the question remains, where will our economy go? How far down can we fall? With the frozen financial markets that have stopped lending money to borrowers out of fear of collapse of the economy, the country is approaching the major recession in the history of the US. As the bailout plan proposed by the Bush Administration has been voted against by majority of the voters and has been rejected, what other measures will be proposed to stabilize the economy in the country, to save consumers from foreclosures and to resume lending?
It appears that banks that have stopped lending money to each other have contributed into the financial crisis thereby not issuing not only home loans to consumers, but also auto loans and even student loans.

Such financial crisis should have been obvious to everyone who was in the lending and financial industry five years ago when mortgage interest rates were the lowest, when a borrower got approved at the brink of poor credit on mere speculations of future home price increase. The new types of loans that were the most potentially dangerous were the Neg-Am, a negative amortization loan that allowed the homeowner to make minimum payments with the remaining loan balance growing every month and collecting interest on the ever-increasing loan balance. The neg-am loan was by far most dangerous, when the closing cost was also applied to the loan balance instead of being charged to the borrower at the close of escrow.

Interest-only loan is another dangerous type of loan that in my opinion contributed to the current economic situation. When the loan balance does not get paid down, and the home values are plummeting, the risk is high to both, the borrower and the lender.

And how much deeper will the property values fall? With nearly zero demand for residential real estate due to inability by a borrower to obtain a home loan from failing financial institutions, will our home values continue to decline?

The Government Bailout Plan Rejected By The Voters

2008-09-29T11:53:00.000-07:00

The Wall Street rescue plan was rejected earlier today by the house voters.

$700 billion emergency bailout plan proposed by the Bush Administration was rejected by majority of voters according to the latest news. The proposed 15-minute vote continued for over a half hour. Dow Jones industrial average plummeted 700 points on the news.

The votes came up thirteen votes short of the number needed for passage of the rescue plan. While Democrats voted for the bailout plan at large, majority of the Republicans voted against the plan.

Earlier today the house was urged to move the measure to the closing, but clearly majority of the house was still in doubt regarding the emergency measure designated to rescue the Wall Street. Bush, speaking earlier at the White House, said, "With this strong and decisive legislation, we will help restart the flow of credit so American families can meet their daily needs and American businesses can make purchases, ship goods and meet their payrolls.” He suggested that while most of the house voters were leery about the rescue plan, majority of the tax payers money contributed to rescuing distressed mortgage-backed securities would be recovered in the upcoming years. He also stated that the measure was to prevent the economic downfall in the country.

The measure was based on Treasury’s request to allow the purchase of distressed financial mortgage backed assets from financial institutions so that the troubled lenders could recommence lending and to allow for the financial and lending markets to function normally.
However, both the Democrats and the Republicans expressed concerns regarding financial constrains put by substantial spending of the tax payers money.

The current financial crisis in the country is a result of the flawed mortgage-backed securities. As real estate prices have plummeted into the worst decline since the Great Depression, following overbearing number of real residential real estate foreclosures.

The bill was to modify distressed loans to stop further foreclosures.

The Government Moves Forward With The Bailout Plan

2008-09-29T09:55:00.001-07:00

After over a week of negotiations, according to the latest media news, The Government has made a decision to bail out the Wall Street by allocating $700 Billion to the rescue fund to bail out the collapsing Wall Street. The rescue fund money will be distributed in several phases. The first $250 Billion will be available immediately, with the remaining money to follow. That money will be used to buy out the mortgage backed securities that have been devalued as a result of plummeting home prices and the economic crisis in the country.

The current financial situation in the country, the media said, has made it difficult for consumers to obtain loans, not limited to home loans only, but any kind of consumer loans, including car loans and even student loans have been affected.

The Lawmakers said that from a taxpayers’ standpoint, the bailout plan and allocating the taxpayers’ dollars into the rescue plan is the measure that will allow the taxpayers to secure their existing 401K plans and retirement, the ability to grow businesses, and general turn around of the economy. From the standpoint of the economy, the bailout should not be construed as a bailout of the Wall Street, but rather a bailout of the economy in the country as a whole.

Clearly, in the light of upcoming presidential elections, the lawmakers will do anything to salvage the economy and to stagnate the potential economic fiasco.

Citigroup Takes Over Wachovia

2008-09-29T09:22:00.000-07:00

The Federal Deposit Insurance Corp. has facilitated the takeover of Wachovia’s banking operations by Citigroup according to the latest media news.

According to the FDIC, all Wachovia’s depositors are protected and the Deposit Insurance Fund will incur no cost. Wachovia’s takeover by Citicorp comes just days after the government's seizure of Washington Mutual, a mortgage lending giant and the largest bank fiasco in the history of the US.

The crisis in the mortgage market caused by declining home values and depreciating mortgage backed securities has affected multiple lending institutions across country, and Wachovia has failed as partially a result of such financial crisis, and partially due to Wachovia’s latest acquisition of Golden West Financial, a mortgage lender at the spike of the housing boom in 2006. Wachovia’s acquisition of the mortgage lender resulted in acquiring a large mortgage portfolio of Pick-A-Payment loans, whereas the home owner can chose what kind of payment he wants to make each month, whether it is an interest only payment, minimum payment amount, a payment at a variable or at a fixed rate.It is no surprise that this type of loan which is very volatile in the current economic and housing situation may cause the lender substantial losses.

Greedy, “Savvy” Real Estate Investors Get Punished

2008-09-28T22:26:00.001-07:00

If you think that investing in raw land development can be a good investment, think twice. And if you are not a real estate developer but rather an amateur investor, do your homework and don’t believe everything you see. And if you’ve ever read books on real estate investing by Donald Trump, you probably remember his famous line, “if it sounds too good to be true, it probably is.”
One case filed by the plaintiffs in Contra Costa County, CA comes to mind. Greedy real estate investors thought that collecting 12% on their real estate investment in the 4% interest rate economic climate (also known as “predatory lending”) was too good to be true. Yet, greed overpowered their common sense.

The civil case that arose from this shady “investment” was filed on 01/23/2006 by Harold M. Jaffe, Esq. the council for the plaintiff, John and Bernadette Shramek, individually and as Trustees of the John S. Sramek, Jr. and Bernadette D. Sramek Revocable Living Trust. The case summary is as follows:

This case concerns two parcels of real property located in an unincorporated area of Contra Costa County, California, adjacent to the incorporated city of Walnut Creek, California, which are commonly described as Assessor Parcel Nos. 189-051-037 and 189-820-006.

If you want to read the real case, it was filed in Contra Costa County, CA, Martinez branch; CASE NO. C06-00162; Case Name Shramek v. Jacobsen at al.

The original complaint as I am documenting this story is not existent on the Contra Costa County Court website, thus the first complaint that can be found in online records is the First amended complaint. Causes of action are as follows:

1) BREACH OF CONTRACT;
2) FRAUD;
3) VIOLATION OF UNFAIR BUSINESS PRACTICES ACT [BUS. & PROF. CODE §§17200, ET SEQ.;
4) BREACH OF FIDUCIARY DUTY AND/OR CONFIDENTIAL RELATIONSHIP;
5) UNJUST ENRICHMENT AND RESTITUTION;
6) BREACH OF THE DUTY OF GOOD FAITH AND FAIR DEALING;
7) NEGLIGENT OMISSION;
8) FRAUDULENT OMISSION;
9) FRAUDULENT MISREPRESENTATION;
10) NEGLIGENT MISREPRESENTATION;
11) ALTER EGO [REJ/JACOBSEN];
12) ALTER EGO [OSPREY ALBERSON];
13) ALTER EGO [REJ/OSPREY];
14) AIDING AND ABETTING;
15) FRAUDULENT TRANSFER
16) NEGLIGENT MISREPRESENTATION;
17) BREACH OF INSURANCE CONTRACT;
18) BREACH OF IMPLIED COVENANT OF GOOD FAITH AND FAIR DEALING; AND
19) DECLARATORY RELIEF

The plaintiffs’ GENERAL ALLEGATIONS are as follows:

On or about July 23, 2003, JACOBSEN, a Licensed Real Estate broker, through his corporation REJ purchased the Property from David and Linda Gates for $145,000.00, with a down payment of $5,000.00 and with Gates carrying a deed of trust in the sum of $140,000. After purchasing the property, JACOBSEN sought an easement across the adjacent parcel owned by Larry and Judith Carre at 281 Castle Hill Ranch Road. Carre and JACOBSEN negotiated an agreement, which provided inter alia that Carre would provide an easement to JACOBSEN in exchange for cash, and a lot line adjustment giving Carre additional land, the square footage of which is unknown to plaintiffs but which was approximately 2,600 square feet.

On or about September 8, 2003, Carre and JACOBSEN submitted an application to the County of Contra Costa for a lot line adjustment. In or about October 2003, Carre and JACOBSEN met with Contra Costa County planners. During this October 2003 meeting, Contra Costa County planners rejected the lot line adjustment and informed JACOBSEN that the Property was designated open space.

After acquiring the Property through REJ, JACOBSEN caused an appraisal of one of the parcels to be performed, which parcel (APN 189-051-037) was appraised for $1,700,000 contingent satisfactory completion of the lot line adjustment application with the county. The appraisal report stated that the appraiser is not aware of any legal complications on the property and is not liable in the event such complications may exist. The appraisal was said to be for the refinance purposes only (“for mortgage loan purposes only”) and was prepared for REJ, which was intended to be the lender for the loan on the property.

On or about October 29, 2003, REJ executed a promissory note in favor of an entity called OSPREY. The promissory note was in the principal sum of $1,250,000.00, together with interest at the rate of seven percent (7%) per annum, all due and payable on December 31, 2004.

Said note was secured by a deed of trust against the property, dated and recorded on October 29, 2003, as Document No. 2003-0536389, Official Records of Contra Costa County. The principal of OSPREY, whether before or after its February 5, 2004 incorporation was ALBERSON whom JACOBSEN has known for over thirty years, having met him while they were in college.

On or about February 3, 2004, a new first deed of trust was placed on the Property in the principal sum of $650,000 to secure a loan to REJ from the Lafayette Capital Group, Inc. Said note was secured by a deed of trust dated January 29, 2004, and recorded on February 10, 2004, as Instrument No. 2004-043205, Official Records of Contra Costa County Recorder.

At for about the time the new first deed of trust in the amount of $650,000 was obtained by REJ from Lafayette Capital, defendants ALBERSON and JACOBSEN caused the aforementioned $1,250,000 note from REJ to OSPREY to be re-conveyed. Subsequent to the close of the Lafayette Capital loan on February 10, 2004, a new $1,250,000 deed of trust dated October 29, 2003, was recorded on February 10, 2004, with the statement “this deed of trust is junior and subordinate to the deed of trust in favor of Lafayette Capital Group in the amount of $650,000 recorded currently herewith.”
Simultaneously, title insurance was provided by a title insurance company to OSPREY. This title policy was dated February 10, 2004. To make the note more marketable, ALBERSON and JACOBSEN modified the note increasing the interest rate on the promissory note from REJ to OSPREY from 7% to 12% from and after January 1, 2005, and extended the term of the note to January 31, 2006.

JACOBSEN, in order to market the second trust deed, placed advertisements in local newspapers in or about Contra Costa County, and the San Francisco Chronicle, and prepared a write up about the Property which included statements “8 home sites, all hilltop,” “all utilities are available,” “value of the property as it sits is estimated to be $3,500,000.00.”

On or about May 19, 2004, said note and deed of trust were assigned by OSPREY to plaintiffs herein for $1,000,000. This assignment of deed of trust was recorded on May 21, 2004, in the Office of the Contra Costa County Recorder.

Upon OSPREY’s receipt of the $1,000,000 in sale proceeds from the assignment of the promissory note and deed of trust to the plaintiffs, ALBERSON caused OSPREY to transfer the $1,000,000 proceeds, less a small “commission” paid to himself of $10,000, to REJ.

After REJ’s receipt in June 2004 of $990,000 of the $1,000,000 in sale proceeds from the assignment of the promissory note and deed of trust by OSPREY to the SRAMEKS ($1,000,000 less ALBERSON’s $10,000 commission), JACOBSEN, during the period commencing June 2004 through May 2005, caused said proceeds (approximately $990,000) to be transferred from REJ, without consideration, to the benefit of JACOBSEN, individually, and others such as MALIKYAR.

When REJ failed to make payments under the Lafayette Capital deed of trust, other than the one year’s interest payments taken out of the loan proceeds themselves as an interest reserve at the time of the closing of the Lafayette Capital loan in January 2004, Lafayette Capital caused to be recorded on April 22, 2005, a Notice of Default and Election to Sell Under Deed of Trust.

On May 5, 2005, JACOBSEN “sold” REJ to a John Brosnan, pursuant to a document entitled Agreement for Purchase and Sale of Ownership of REJ Properties. On or about May 5, 2005, the only asset of REJ other than $1.50 in a Wells Fargo Bank checking account, was the property, which was subject to the aforementioned notice of default.

On July 29, 2005, recorded a Notice of Trustee’s Sale was recorded against the property, and on November 28, 2005, a trustee’s sale was held in Contra Costa County, California. At the time of the trustee’s sale, the unpaid debt owed Lafayette Capital by REJ, together with costs, was $761,942.64, and the credit bid at the trustee’s sale by Lafayette Capital was $402,000.00.

Basically, here is what the plaintiffs allege. A note that was executed by REJ on October 29, 2003 in favor of OSPREY in the principal sum of $1,250,000. Subsequently, REJ borrowed $650,000 from Lafayette Capital and REJ and OSPREY, acting through ALBERSON and JACOBSEN, caused the deed of trust securing the $1,250,000 to be subordinated to the new $650,000 loan from Lafayette Capital. After that, REJ made no payments other than those provided for in the initial interest reserve to Lafayette Capital, causing Lafayette Capital to record a notice of default and subsequently on November 28, 2005, the property was sold at a trustee’s sale. REJ thereby allowed the senior lien with Lafayette Capital to become delinquent and to allow the senior lien to foreclose. As a result of said foreclosure, plaintiffs have been deprived of their collateral and are now “a sold out junior.”

Plaintiffs have requested the following damages:

$1,250,000 plus interest at the rate of seven percent (7%) per annum from October 29, 2003 to December 31, 2004, and at the rate of twelve percent (12%) per annum thereafter. As of October 31, 2006, the balance owed on said promissory note, was $1,627,536.68 (principal - $1,250,000 + interest - $377,536.68). Interest, as the plaintiffs requested shall continue to accrue from and after October 31, 2006, at the rate of $410.96 per day.

Do you see the multiple mistakes that the greedy investors made? First of all, they didn’t do any research whatsoever, which ultimately would have revealed that at the time they invested in the property, the parcel of land was already assigned open space. Second mistake, they relied on the outdated appraisal, which appraisal when presented to a financial institution AKA a lender is required to be renewed or another appraisal is required to be performed. Generally, when an appraisal is performed at the request of a lender, the lending institution’s name is placed on the appraisal. If a loan does not go through with a chosen lender, and a loan application is taken to another lender, such lender will never accept an appraisal that has a different lender’s name on the appraisal report. Moreover, the life of the appraisal report is three months, and the appraisal states that the appraisal value is an estimate and the appraiser’s opinion of what the property could sell for in the open market on the day the appraisal is performed. Additionally, the appraiser relies on the information available to him on the date he prepares the report, and not on the information that changes daily and that is two years outdated, before the property became “open space”.

If you are looking for 12% annual interest on your investment in the 4% lending market, perhaps you should re-read Donald Trump’s famous quote, when it comes to investing in real estate, if it sounds too good to be true, it probably is.

Retirement In Economic Recession And Declining Home Values

2008-09-26T23:21:00.000-07:00

Cautious investors are warned to act now and to protect their investments as the US economy is on the brink of disaster. According to the Wall Street Journal, more than twenty percent of American citizens of the age of 62 and older who anticipated retiring early are still working. Many Americans now face the harsh reality of not being able to retire early due to the economy meltdown.

Besides the inability to stop working and retire, the significant factor affecting the welfare and the financial security of the elderly citizens is the decline in the home values that has significantly impacted the real estate and the financial markets in the recent years since the housing boom.

The US economy is facing a storm of problems and the indicators of the problems are, weak US dollar, skyrocketing energy prices, inflation, increasing unemployment rate.

Residential real estate used to be our most important investment. Generally speaking, residential homes average 7% appreciation per year, or they used to before Alan Greenspan’s economy turn around in the recent years, that has contributed into the economic climate change.

These days, the Americans are losing their retirement funds as well as home equity. Inflation, foreclosures and skyrocketing unemployment rates are some of the indications of the upcoming economic disaster.

The recent fiasco if the largest mortgage lending institution, Washington Mutual, seizure of the financial giant by the Government and the takeover by JPMorgan Chase, and the plummeting of its stock that followed is one of the strongest pieces of evidence to the unhealthy economic situation that affected the whole country. It is now clear that the country is facing the deepest economic recession in the history.

In the past, the US has suffered through two recessions lasting a year and a half each with gas prices skyrocketing and the dollar plummeting. It looks like the history of the economy is repeating itself.

Back in the 1970th, the Fed cut interest rates to fight the recession.

Our current recession is still young. It’s not even a year old, but the stock market gains of the 2007 have already been wiped out. The predictions are that the home values will continue to decline to reach at least another 20% in losses. What will happen to those who have obtained mortgages at a low variable rate five years ago? Another question is, how will the current decline in the home values affect homeowners who are living off of the reverse mortgages if the lending institutions go out of business?

Washington Mutual Seized By The Federal Regulators And Bought Out

2008-09-26T21:31:00.000-07:00

Washington Mutual, the largest home mortgage lender failed as a symbol of the end of the mortgage boom. Washington Mutual was seized on Thursday by the federal regulators. The failure of Washington Mutual was by far the biggest financial crush in the US history.

The speculations are that the collapse of Washington Mutual will not affect the bank account holders, however, the stock holders and the bond holders will be significantly impacted by the downfall. Washington Mutual accounts and deposits are insured by the FDIC up to $100,000.

Practically all of Washington Mutual assets were sold to JPMorgan Chase for $1.9 billion, as an emergency measure, thus insuring the additional backing of the account holders’ money.

The lawmakers reached a stalemate over the passage of a $700 billion bailout fund designed to help failing banks.

Washington Mutual employees came to work this Friday unsure about their job situation. It is still early to say how many employees of Washington Mutual will be laid off, but the estimates so far state that it could be as high as 5,000 employees facing a lay-off. Analysts’ expectations are that JPMorgan Chase will close about 540 retail bank branches, which currently overlap with JPMorgan branch locations.

Washington Mutual used to be one of Wall Street’s strongest performers growing along with the increase of mortgage lending. No wonder that its health suffered significantly leading the financial institution to complete demise due to the downfall of the housing market and the home mortgage backed assets.

Reverse Mortgage Qualifications, Laws, and Pitfalls

2008-09-26T09:17:00.000-07:00

Reverse Mortgage is a type of mortgage whereas senior citizens, who are 62 or over owning a home free and clear or with a low mortgage balance can cash out on their equity. The benefits of a reverse mortgage are that the homeowner who is over 62 can get the benefit of their home equity by withdrawing money over time to pay for the living expenses, pay off a credit card debt and ensure a certain income stream in addition to the social security payments.

Lenders issuing reverse mortgage have to go through a certain qualification process with the Government, as this program is a Government backed mortgage program. With reverse mortgages, a homeowner instead of paying the mortgage is expected to assign the dead of trust to the lending institution, which lending institution (the lender or the bank in this case) will make payments to the homeowner according to the agreed upon and assigned schedule, either monthly or in one lump payment. The requirements for the reverse mortgage is that the real property be owned free and clear or have a high percentage of equity in the home.

The downside of a reverse mortgage is that the homeowner does not get nearly as much money from their home as they would get from the sale of the home. Lenders issuing reverse mortgages will give you from what I know up to sixty percent of the appraised home value, and there is a long drawn out process to qualify for the reverse mortgage. With the falling home values all over the country, and affecting some areas of the country more so than the others, qualifications for the reverse mortgage have become even more strict. Additionally, the homeowner is required to go through reverse mortgage counseling prior to receiving the reverse mortgage. A reverse mortgage counseling consists of multiple sessions with the purpose to identify if the person receiving reverse mortgage fully understands how reverse mortgages work and is in the right mind to do so.

A reverse mortgage is perfect for senior citizens who have no heirs and have no one to give the home to. A reverse mortgage will take into consideration the age of the homeowner and the life expectancy. A reverse mortgage is a tricky program and I personally would suggest considering other options before you decide to put an application for the reverse mortgage with a lender. Consider different lenders, compare lenders and get a second, or third opinion when you decide that reverse mortgage is something that interests you. A cash out refinance may be a more suitable option if you are in the position to apply for a reverse mortgage.

Will The Govermnent Lower Home Mortgage Refinance Interest Rates?

2008-09-25T07:45:00.000-07:00

President Bush’s media appearance on Wednesday was less than optimistic to say the least. He alluded to the fact that the country is facing diminishing retirement savings, increasing the number of residential real estate foreclosures, due to unstable economy and decline in home values, and closure of businesses. "Our entire economy is in danger," President Bush said. He stated that a massive rescue plan need to be implemented in order to improve the health of the economy and to prevent the disastrous consequences of the economy downfall.

He mentioned the pessimistic state of the financial and home lending markets and how it affects the general population. "Ultimately, our country could experience a long and painful recession,” President Bush said. He also stated that without an immediate action by the Congress, the economy could fall into a deep and lasting recession. He stated that the rescue measures are not aimed at individual companies and that he was in doubt to put taxpayers money on the line.
Interestingly enough, a lot of what was said addressed the mortgage situation, the lending practices and the mortgage backed securities. However, the blame was not assigned to any entity in particular, excluding the government backed mortgage programs such as Fannie Mae and Freddie Mac or the Wall Street giants who profit from the mortgage backed securities. Bush spoke in terms of investment banks more so than the speculative nature of the stock market and the mortgage backed highly speculative securities.

However, it is not clear what the rescue plan is. A lot of what was said was value and it doesn’t appear that the Government has a clear direction in which to turn the economy. It seems that in the light of the upcoming elections the Government does what it can to prevent substantial and sudden downfall of the economy. However, with increasing unemployment rates and home foreclosures the economy is already in a bad shape.

What does it mean for us, the consumers and the taxpayers in terms of home mortgage refinance market and mortgage rates? Will the Government lower interest rates to get the economy to a better situation? The question remains unanswered.

Mortgage Rate Predictions

2008-09-22T18:07:00.000-07:00

Making accurate mortgage rate predictions is nearly impossible Mortgage rates are affected by many different factors such as fluctuation of the market and the current state of economy.

Trying to predict future mortgage rates, and mortgage rate fluctuations as well as speculating whether mortgage rates will stagnate, go up or go down cannot be accurately done. In fact, trying to predict mortgage rates is almost like predicting weather beforehand. It is not possible to predict mortgage rates precisely. While many financial gurus and analysts get paid big money to predict mortgage rates, the marginal errors in such predictions can be substantial.

Economic climate can give some signs of future mortgage rates, as well as the state of the markets and the economy in the country and worldwide.

There are several factors that influence mortgage rates fluctuations.

Inflation is one of the criteria that influence mortgage rates. Mortgage interest rates move in response to the markets, and supply and demand, and this is a separate factor aside from the inflation. There are nominal interest rates as well as “normal” interest rates, which differs.

Looking at the market moves one day and reading interest rates for that day does not guarantee that you will get this particular interest rate when you fill out your loan application at the bank

and lock the rate at which you will be given a refinance or purchase loan.

Reduced Availability of Credit is another factor influencing mortgage interest rates. If there is more supply than demand in the mortgage markets, interest rates will decline. If demand is exceeding supply of the available credit, interest rates will go up.

Another factor affecting mortgage rates is risk. Any financial decision takes a level of risk into consideration. When real estate is booming and the real property values are going up every single day, risk for the lender is low. Even if the borrower cannot make mortgage payments, the lender can foreclose on the loan and sell the property at a foreclosure. In this case, with the increased value of the home, the lender can recover its losses easily when there is a ready and willing buyer.

Naturally, when home values plummet, the default risk for the banks suddenly increases, which means that they will be charging higher mortgage interest rates.

Factors Which Make Mortgage Rates Predictions Fall: Government Intervention

The US Government is the major deciding factor in the financial markets that affects interest rates. The Government issues and sells Treasury bonds that have various interest rates. Additionally, the US government can influence the overall health of the market for money, affecting the fluctuation of the real interest rates, but not the nominal interest rates.

Additionally in the environment of upcoming elections the US Government tries to push the increase in mortgage interest rates back to November after the elections have passed.

Can I Refinance With Bad Credit?

2008-09-22T03:10:00.000-07:00

If you want to buy a house or refinance your existing home, there are many refinance options to consider. First thing to take into account when you are looking into refinancing your home mortgage or financing your home purchase is how good your credit score is. But what if you don’t have a perfect credit? Perhaps you are delinquent on some payments, have too many credit cards, or financial hardships due to a lay off in the stagnating economy have taken a toll on you.

That’s the kind of situation that would certainly prompt you to seek to refinance your home in order to get cash out for some unexpected life expenditures, paying off your credit card debt, child support obligations, or even home remodel for making your house more appealing to prospective buyers if you want to sell your home and downsize to keep you afloat. Where can I get a mortgage for bad credit? You ask. I’ve been turned down for a mortgage so many times before. The value of my home has declined since last refinance and I don’t have much equity left in my home. Perhaps your credit score combined with the low amount of equity, or loan to value ratio does not warrant getting a home loan from a prime lender. What to do? Can I still refinance? You ask. Are there any lenders who can help me? You’ll be happy to know that there is a whole area of the mortgage lending market that specializes in obtaining mortgages for people with bad credit. These lenders will work with you to get a home loan more affordably even if you have been turned down by many loan officers and loan consultant who specialize in prime home loan market.

Of course, you should remember that with a ban credit you will still end up paying a higher interest rate than you would be paying if you had a perfect credit. Lenders rate their clients’ credit score as A credit, B credit and C credit. If you are not in the lending or financing business, perhaps you don’t know that. But a mortgage loan officer will look at many criteria to determine what kind of loan you qualify for. With less than perfect credit you are high risk to the lender, but you can still get approved for a home loan even when your credit score is poor.

High interest rate loans, sometimes called sub-prime loans, or hard money loans is the area of home mortgage lending that specializes in the bad credit loan sector. Because more and more people with less than perfect credit have been applying for a home loan and wanting to own their homes rather than renting, a special sector of home lending and financing has been created that caters specifically to people with bad credit, and even people who have had bankruptcy in the past.

When searching for a home loan for people with bad credit, there are things you should be aware of. While there are many legitimate lending institutions serving subprime market, there are also some dishonest lenders that will charge you outrageous application fees for merely filling out a loan application. Stay away from those companies. Call around to legitimate lending institutions in your area and find out what are the companies that serve subprime market. Some large financial institutions have been known to serve borrowers with perfect credit. Some of those financial lending institutions are Washington Mutual Home and Loan, CitiGroup, and many others. However, there are some new companies that have not been around for very long, but have sustained their business, and have even given names to specific loans, such as Downey, which serves subprime market and derives most of its revenue from the subprime sector.

Other names for sub-prime loans are non-conforming loans, and credit impaired loans. All of these loans come in all kinds of variations. They can be fixed, variable, or adjustable, or combinations. One of the most popular loan originated from World Savings Bank but as far as I understand has been adopted by other financial institutions as well. This is a type of loan where you can actually chose every month what kind of payment you are going to make. There are four options: you are paying your mortgage at a fixed thirty year rate, a variable rate, interest only mortgage payment, or neg am which stands for negative amortization. I will explain in depth in one of my next posts what a negative amortization loan is. As well as reversed mortgage, which a kind of neg am but even worse. But I will cover that in a separate post.

Getting back to the subject of your credit score and its affect on your final interest rate, your home loan interest rate will be determined by your credit score, your equity in your home, loan to equity ratio and other factors. However, if you are above 500 FICO, and have some equity in the home, you can get a home loan. World Savings is probably the only large financial institution that will deal with a credit score as low as 500 FICO. If you have been around for a while, you know that 500 FICO is very bad and rarely anyone gets it that low. But we all have unexpected emergencies, illness, hospital bills, and more that can significantly impact the credit score.

I will tell you a secret about World Saving that will explain why they lend money to people with such low credit score. This is because they do not allow independent appraisers. All appraisals done for World Savings are done by their in-house appraisers who are told to appraise homes about ten to twenty percent below the current market value of what another appraiser would appraise the house for. If you wonder why and how I know it, I worked in the lending business, and also managed a real estate appraisal company. We always had problems when a borrower would switch a lender on us, take our current appraisal to World Savings and their staff appraiser cut the value by ten to twenty percent. Of course, they come up with what we call “conditions”, meaning the appraiser who did the original appraisal has to defend the value.
Hard money loan is another refinance option for people with bad credit. Or sometimes you can get two mortgages, first mortgage and a second mortgage. Your second mortgage will be at a substantially higher rate, but if you can make it, you can keep the house and get some extra cash for other expenditures.