By year’s end an estimated 3 million of them will lose their homes. Disproportionately, they will be black and Latino, an unfortunate effect of the marketing practices of subprime brokers and lenders. [tag]Home Mortgage Disclosure Act[/tag] data from 2005 reveal that more than 50 percent of black and 46 percent of Latino home buyers received subprime loans, compared to 17 percent of white borrowers. Many of the minority borrowers could have qualified for more favorable terms. Though the softening of the home market and the rise in interest rates have affected all homeowners to some degree, they have a profound impact on those who hold [tag]subprime loans[/tag]. These high-risk loans go to borrowers with marginal credit, many of whom have already refinanced to the point they have no equity.

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Alex J. Pollock recently wrote,“If private investors want to take [tag]credit risk[/tag], and [tag]borrowers[/tag] want to take a chance in order to own a house, should they be allowed to, even if it might lead to consequences … . I’d say they should. Credit is a central force in a market economy, and boom and bust cycles are the unavoidable price of achieving the long-term growth that markets — and nothing else — create.” Should builders consider Pollock’s opinion as they look towards the future? Is the current subprime lending scenario as bad as the media make it out to be? Can the real estate marketplace endure $1.3 trillion in mortgage delinquencies and defaults? “[tag]Builders[/tag] are uncertain about the consequences of tightening mortgage lending standards for their home sales down the line, and some are already seeing effects of the subprime shakeout on current sales activity,” said [tag]National Association of Home Builders[/tag] Chief Economist David Seiders.

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About 2.4 million holders of [tag]subprime mortgage loans[/tag] made between 1998 and 2006 will lose their properties to foreclosure, according to a report from the Center for Responsible Lending, a non-profit policy and advocacy organization for home owners.Worse, that will result in a net [tag]home ownership[/tag] loss of one million households. CRL’s analysis rebutted the mortgage industry’s claims that the increase in subprime loans has opened up home ownership for millions of low income buyers. Instead, CRL contends, relatively little subprime lending is used for first-time home buying. Testifying before the House Finance Committee today, CRL’s president, Michael Calhoun, said the primary reason for the jump in foreclosures is “the abandonment of underwriting standards.”

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Some homes take longer to sell than others, adding anxiety to sellers who absolutely have to get a transaction closed within a specific period of time. And, when it rains, it pours. For example, I recently got a call from a former college classmate who had taken a new job in a different state. After his home sat on the market for months, he finally struck a deal with a potential buyer. For weeks the deal appeared to be headed to closing, and the seller, feeling confident with the [tag]buyer’s borrowing power[/tag], had even made a [tag]down payment[/tag] on another home. The seller became upset, however, when the buyer walked away from the deal because the buyer would not agree to a “soft prepay” loan provision offered by a national lender.

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Are there people with [tag]subprime loans[/tag] in [tag]Asheville NC[/tag]? Yes. Are some of those people going to have problems when their mortgages readjust? Yes. And if you think you are one of them, we encourage you to contact your lender sooner than later to explore your options. Remember, the people who are predicted to face the greatest problems are those in states with stagnant or declining real estate values where it will make it difficult to impossible for an owner to refinance into a conventional loan. Expect to see the most significant impact in states like California, Florida, Arizona and Nevada, where real estate prices had a huge run-up or in the industrialized states like Michigan, which have had heavy job losses.

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At the risk of being all subprime, all the time, this week we look at what I think are the real risks for the economy as a result of the subprime debacle. How can one side say it is a contained risk (and in one sense it is) and not a problem for the economy while another side says it will drag the US into a recession and thus be a drag on the world economy? The answers will give us a handle on the whole issue, as we look at how the problem developed.

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No one takes any responsibility for their actions. True, banks and [tag]mortgage companies[/tag] have put many borrowers at risk with their loans. But where were the public, the bank regulators, the real estate agents, the mortgage brokers? [tag]Real estate agents[/tag] should know about [tag]financing[/tag]. Many are also [tag]mortgage brokers[/tag]. And the public, what were you thinking when your income was exaggerated, or you bought a home you could not afford? Doesn’t anyone question how their loan works? Jobs were made up because they were not verified. I did these [tag]interest-only loans[/tag] back in the late 1980s and we educated the borrowers and they did not have a problem.

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Having a [tag]good credit score[/tag] is important because it helps you get better terms and interest rates on loans and credit. It’s also good because you’ll typically have more loan options available to you. That’s why, even if you don’t have excellent credit, it’s important to keep your score at least above 620. Recent changes in the mortgage market have caused mortgage lenders to tighten their credit standards. This has meant that folks with impaired credit, who were able to get home financing in the past, may find that getting a mortgage now may be more difficult. This is all the more reason why improving one’s credit score is so important.

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rEager to cash out of their real estate or businesses, some property sellers are being drawn to a new strategy to help put off paying capital-gains taxes. The recent approach, called a [tag]structured sale[/tag], is being marketed more aggressively by some financial firms in the wake of the recent Internal Revenue Service clampdown on another tax-deferral strategy called a private annuity trust. The IRS and tax courts haven’t yet opined specifically on structured sales. Some tax lawyers believe the strategy is likely to pass muster if it is implemented carefully, although there’s always a risk the deals may be disallowed. The IRS declined to comment on the strategy.

The market for structured sales is still small. But Allstate Corp., which began offering structured sales in recent years, says it expects the overall market to grow to about $14 billion within five years from about $100 million last year. Another big insurer, Prudential Financial Inc., also offers structured sales. A host of small financial firms around the country typically act as brokers to arrange the deals with individual consumers. Critics say the strategy doesn’t make sense for many property sellers. Costs can add up: The broker putting the deal together earns a commission, which is usually 4%, and there are typically set-up fees of between $500 and $1,500, plus legal and accounting fees. What’s more, the seller’s proceeds are essentially locked up in an annuity that currently pays about 4% to 5% (which is net of the commission). (more…)

Out of 131 million 1040s filed for 2004, there were 4 million math errors. If you make one of those 4 million errors, then mailing off your return is only the beginning of your headaches. Ernst & Young compiled a list of common errors. Some errors are simply careless. The easiest error to check if found with a a double-check of your math, the IRS does not give partial credit for getting the right formula but adding wrong. You might have done everything right, except for forgetting to carry a one, but the IRS doesn’t care. It will fine you for the difference. If, on the other hand, your careless math error leads you to overpay, who knows whether you’ll get that money back. It certainly could take a while.

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The United States Congress is re-visiting the mortgage banking laws, with the idea of further regulation of the lending industry. Consumers are experiencing financial problems from excess borrowing. Should lenders not allow borrowers to take mortgages that aren’t suitable for them? Should lenders who do allow it held liable? This series of articles from Mortgage 101 will attempt to answer the question “should lenders be liable for mismatched home loans?”

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Would you take out a 30-year car loan? Okay, you’re probably thinking that sounds outrageous, so let me take it down a bit. How about a 10-year auto loan? If you’re financing the purchase of a car with the equity in your home, that is exactly what you could be doing — paying for a car over 10 or even 30 years. The use of [tag]home-equity loans[/tag], [tag]lines of credit[/tag] and [tag]cash-out refinancing[/tag] to purchase automobiles grew in the last decade as interest rates dropped and property values soared.

It also has become popular as lenders hype the fact that interest on a home loan is tax-deductible, unlike interest on a [tag]vehicle loan[/tag]. In 2006, about 24 percent of homeowners used a [tag]home equity line of credit[/tag] to purchase a car or truck, according to Synergistics Research, a financial services market research company based in Chamblee, Ga. About 8 percent of homeowners took out a second mortgage specifically to buy a vehicle, says William H. McCracken, chief executive of Synergistics. But is buying a car or paying off your remaining auto loan balance with the borrowed equity from your home a good financial move? (more…)

I was asked by my friends at The Wall Street Journal Prime Rate to review their website.

A first look shows that the site concentrates on displaying the current Wall Street Journal Prime Rate, which is explained by the site as the “interest rate charged by banks when they lend money to other banks, or to their prime business customers”.

Further discussion informs me of the history of the prime rate since December 1, 1947, which is table of facts that I did not readily know.

After reading a portion of the site’s discussion concerning the financial term “prime rate”, my interest was piqued to the extent that I did some research on the subject.

From early times, “prime rate” has been the interest charged by banks to their most credit worthy customers. Although the “prime rate” itself is now a rate of return that bears little relationship to the creditworthiness of the banks’ commercial borrowers, the “prime rate” still varies little among banks. Adjustments are usually made by most all North American banks at the same time. The frequency of change normally happens on a quarterly or semi-annually basis.

So, if banks no longer base their “prime rate” on commercial lending data, just how do banks set their lending rate? Since the mid 1950’s, banks have been advertising their lending rate as a function of the “prime rate” which is technically “The Federal Funds Rate”. That data point is decided at Federal Open Market Committee (FOMC) meetings by the Board of Governors of the Federal Reserve.

Jay

Jemima and Ricardo Sanon, 30 and 29, saw the possibility of trouble before they ever signed their mortgage documents in 2004. The Sanons had diligently saved $5,000 in preparation to buy their first home, but the sum was just enough to cover the [tag]closing costs[/tag]. So to finance the $290,000 purchase price of a Waltham, Mass home, they took one loan for $232,000 and also a [tag]piggyback loan[/tag] for $58,000, both from [tag]New Century Financial[/tag], a [tag]subprime lender[/tag].

The smaller of the two mortgages didn’t worry them. The terms were fixed for 30 years at 10.7 percent, and the monthly payment of $538 was something they felt they could handle. But the larger loan was fixed for just two years. After that, the rate would adjust every six months, which is typical for [tag]subprime borrowers[/tag]. “I worried about how we would make payments when they increased,” said Jemima, a medical assistant. “The mortgage broker [at New Century] told us we could refinance.” A spokeswoman for New Century declined to comment on the specifics of the Sanon’s case citing privacy issues, but she did issue this statement: “New Century is offering special programs that are designed exclusively for current New Century borrowers who are most susceptible to payment shock at the reset of their loans.” (more…)

H&R Block Inc., the largest U.S. tax preparer, said on Wednesday its decision to write down the value of its Option One Mortgage unit, a subprime lender now up for sale, increased the company’s third-quarter net loss by $15.5 million. The company also disclosed in a regulatory filing that it does not expect Option One to meet covenant terms for eight warehouse credit facilities when its waivers expire at the end of April. The unit did not meet net income requirements as of January 31, but obtained waivers from lenders through April 27. Without the waivers, warehouse facility providers would have the right to terminate future funding obligations, Block said. The company expects it can get waivers from enough lenders to continue certain activities.

“While this termination could adversely impact OOMC’s ability to fund new loans, we believe this risk is mitigated by options available to H&R Block,” the company said. The increased third-quarter loss came after H&R Block on Tuesday trimmed the book value of Option One by $29.2 million before taxes. That increased the net loss for the quarter ended January 31 to $60.3 million, or 18 cents a share. “In light of the extreme volatility in the mortgage market, we conducted a rigorous review of the carrying value of all the assets of our [tag]Option One Mortgage[/tag] Corp. subsidiary,” H&R Block Chief Executive Mark Ernst said in a statement. Shares of Kansas City-based H&R Block dropped to $18.31, the lowest level since May 2003, before trading down 22 cents, or 1.1 percent, at $19.83 at mid-afternoon. H&R Block showed signs of the current meltdown in the [tag]subprime mortgage[/tag] market last year, when it began reporting rising defaults from mortgages extended to people with poor credit. Block also was forced to buy back sour loans it had sold to Wall Street banks. These setbacks, and pressure from shareholders, prompted Block in November to announce it would consider a sale of the [tag]mortgage[/tag] unit. Block says there has been a lot of interest in the business, which it expects will fetch more than its $1.3 billion carrying value. (more…)

Your home means a lot of things to you, most of them good. Your home gives comfort and protection to you and your family, and it could well embody all your material hopes and dreams. But houses have become much more than just places to live. Your home is probably your biggest asset, and the price you could ask for it today is almost certainly much higher than what you paid for it back whenever.

With much of the U.S. well into a [tag]real-estate recession[/tag] it’s unlikely that homeowners in once-booming areas will see a return of skyrocketing prices anytime soon. “Real-estate investments suffer serious and sometimes prolonged downturns,” writes economist W. Van Harlow in a new study of [tag]home equity[/tag] and retirement from the Fidelity Research Institute in Boston. “A real-estate ‘bust’ could be quite damaging to an investor nearing retirement who relied too heavily on home equity.” It may be late for a lot of homeowners to read this, but here it goes anyway: It’s risky and bad planning to have too much of your net worth in your principal residence. No prudent stock-market player would put 60% or 70% of a portfolio in just one stock, but millions will hold that much or more of their total net worth in just one house. (more…)

The [tag]Federal Bureau of Investigation[/tag] is cracking down on mortgage fraud like it’s organized crime, because, well, it is. And the agency’s message is clear for would-be perps who can’t do the time or pay the fine: don’t commit the crime. In it’s latest effort to stem the tide of [tag]mortgage fraud[/tag] — 436 investigations in 2002, 1,036 investigations now — the agency has been working closely with the [tag]Mortgage Bankers Association[/tag]. Late last week the FBI provided association members with a reminder that mortgage fraud is a federal crime punishable by up to 30 years in a federal pen or up to $1 million in fines — or both.

The advisory didn’t single out only mortgage lenders, but also served as a reminder that consumers who knowingly engage in fraud could also have to dig deep and long if found guilty. “It is illegal for a person to make any false statement regarding income, assets, debt, or matters of identification, or to willfully overvalue any land or property, in a loan and credit application for the purpose of influencing in any way the action of a financial institution,” the advisory says, pointing to nine federal provisions that could snare [tag]mortgage scammers[/tag]. The FBI’s mortgage fraud section of its “Financial Crimes Report To The Public Fiscal Year 2006″ says crooks cost the mortgage industry from about $1 billion to more than $4 billion last year as scammers furiously worked two basic types of mortgage fraud. The agency said fraud for property amounts to 20 percent of mortgage fraud and occurs when a home buyer lies about income, debt or other information in order to buy a home. More prevalent is fraud for profit, typically involving mortgage industry insiders, multiple loan transactions and several financial institutions conspiring for financial gain. (more…)

I want to purchase a home that my parent own. It has a [tag]mortgage[/tag] in the amount of $250,000 and has been appraised for $499,000. My parents want $200,000 out of it. Should I ask them to refinance and get the money they want and then just arrange to put the house in my name? Or should I purchase the home and give them the money? I want to put an addition on the property and would like to have money to do this without stressing out financially.

We have to analyze this from two points of view: you and your parents. I do not know what your parents paid for the property, but if they have owned and used it for two out of the five years before you buy it, they will be able to take the entire up-to-$500,000 exclusion. Since the price you plan to pay will not exceed $500,000, it would appear that your parents would not have to pay any capital gains tax. If your parents [tag]refinance the property[/tag], how can you be sure that they will get the $200,0000 they want? They currently own $250,000, which means that they will have to get a refinance loan in the amount of $450,000 in order to take out that amount of money. And even if their credit is pristine pure, I doubt that a lender would agree to such a large loan. Furthermore, your parents will have to be concerned about a gift tax. Currently, each of your parents gave give you (tax free) up to $12,000 per year. However, if they give you the house, that clearly exceeds the free gift amount and they must determine how this will impact on their own tax and financial situation (more…)

Is the housing slump really that bad? After all, the S&P 500 last week fell more in a single day (3.5 percent) than home prices have fallen in the past year nationally (3.1 percent). Still, it could be years before home prices regain the peaks seen before the current stumble – and even that’s optimistic. “I expect prices and sales to be modestly growing by June in most of the country,” said David Lereah, the chief economist for the National Association of Realtors and perhaps the most bullish housing economist. “But we’ll have to go into 2008, maybe even 2009 before we get even close to the peaks we saw in late 2005 or early 2006.”

Two big factors could prolong the slump: the glut of homes on the market after a record building boom, and the fact that prices saw unprecedented gains during the white-hot real estate market of the first half of the decade. Another worry is rising mortgage defaults, especially in the subprime sector, that could lead lenders and regulators to choke off the credit that fed the previous booms. Celia Chen, director of housing economics for Moody’s Economy.com, says she thinks it will take until 2009 for prices nationally to reach the peaks hit in 2005. Take inflation into account, she said, and a full recovery could take more than 7 years. (more…)

Investors are waiting to find out how just how bad their hangover will be as thousands of loans made to home buyers with spotty credit histories have begun to look dubious in the sobriety that followed the housing bubble. Wall Street is roundly punishing companies whose business is making so-called [tag]subprime loan[/tag]s and analysts say a purge of such loan makers would not be unusual. Shares of companies such as [tag]Novastar Financial Inc[/tag]. and [tag]New Century Financial Corp[/tag]. have been hit hardest — their stock is down 80 percent and 90 percent for the year, respectively.

Investors are concerned that New Century Financial Corp. might soon be felled by the credit restraints that are revisiting the market, and that they will take down similar companies faced with a growing number of defaults on home loans. New Century, which traded at around $30 per share just over a month ago, closed at $3.22 on the New York Stock Exchange Friday after falling another 66 cents, or 17.6 percent. Investors are fleeing on concerns of a possible bankruptcy. Lenders may now find themselves holding deeds to homes in a flat real estate market as risky borrowers are overwhelmed by mortgage payments that ballooned when tempting teaser rates expired. New Century, already the target of shareholder lawsuits, alarmed investors Thursday when it announced one of its financial backers had turned off the funding spigot. The company said last month it had failed to keep tabs on how frequently borrowers missed payments. Wall Street is now looking for signs that the problems of New Century and other subprime lenders will branch outward as even more banks pull back on funding. “We’re definitely going to see fewer small companies in this space,” said Bose George, an analyst at Keefe, Bruyette & Woods Inc. “I think that happens with a combination of mergers, probably some bankruptcies as well. We’ve already seen a lot of bankruptcies of smaller lenders,” (more…)

Are you confused with the content of all those [tag]mortgage solicitation letters[/tag]. Some letters twice tout a 30 year fixed rate of 1.95 percent. But the fine print estimates the initial APR at 4.981 percent and reveals that the rate is only fixed for the first 12 months, adjusting “upwards 7.5% of the payment amount annually … .” Okay, is this a [tag]30 year fixed rate[/tag] at 1.95 percent or not? I decide to make a call to the fellow who signed the letter. I ask for him by name and I’m told he’s at lunch. The guy on the phone offers assistance. So I tell him that I received this letter and I’m fairly knowledgeable about mortgages but confused by the letter. How can you misinterpret a 30 year fixed rate of 1.95%?

The actual interest rate is very likely fixed for 30 years, and can probably be locked in at around six or 6.50 percent. The 1.95 percent is how the minimum payment is calculated. For example, on a $300,000 loan, the minimum payment would be calculated as if the interest rate is 1.95 percent. This would make the minimum payment $1,101. But if the actual interest rate on a $300,000 loan is 6.50 percent, the monthly interest is equal to $1625. Making the minimum payment $524 less the interest charged. The borrower’s balance will increase every month. This is negative amortization. So this guy is trying to convince me that this shell-game-of-a-letter is a product of federal regulators. The letter’s words are plain: “a 30 year fixed rate of 1.95%.” Nowhere does the letter mention a payment rate. Nowhere does it mention that making the minimum payment will result in an ever-increasing mortgage balance. And these clowns boast about being honest. (more…)

Ty and Kimberly Mitchell refinanced their home loan. They allege that the loan holder violated the federal Home Ownership and Equity Protection Act (HOEPA) by charging excessive “points and fees” exceeding 8 percent of the amount borrowed, or $400, whichever is greater. The Mitchells argue the $455 appraisal fee, $821 title insurance fee, $67 phone bill and the $1,178 overstatement of the payoff amount for their old refinanced mortgage should be included in the total points and fees calculation of their new Beneficial mortgage. Beneficial replied that the appraisal fee, title insurance fee, $67 phone bill and the $1,178 overstatement of the [tag]payoff on the old mortgage[/tag] were paid to third parties so they should not be considered as “[tag]points and fees[/tag]” charged for the new Beneficial mortgage.

If you were the judge would you rule that the mortgage holder charged excessive “points and fees” in violation of federal law? The judge said no! “[tag]Appraisal and title insurance fees[/tag], if bona fide and reasonable, are excluded from HOEPA’s definition of total points and fees,” the judge began. Neither did these fees violate the federal [tag]Real Estate Settlement and Procedures Act[/tag] ([tag]RESPA[/tag]) because they were paid to unaffiliated third parties for services performed and Beneficial derived no benefit from the payments, he explained. As for the $67 Verizon telephone bill, he continued, evidence shows this was paid by Ty Mitchell after the loan closing so Beneficial never received that payment nor was it incident to the extension of mortgage credit. The alleged $1,178 overcharge for the mortgage payoff demand of the previous first mortgage was not a finance charge because it was not an incident to extending credit, the judge emphasized. Therefore, there were no excessive loan points and fees that would make this mortgage subject to [tag]HOEPA’[/tag]s regulation provisions, the judge ruled.
(more…)

As the housing market softens, flipping, or purchasing a property for investment purposes and reselling it within a six-month period, has become less popular — and less profitable — in California, says a Los Angeles Times article. Among home resales across the state last year, 3.2% were [tag]flips[/tag], down 1% from 2005, and nearly 25% were sold at a loss, versus only 7.5% in 2005, the Times says. While flipping is harder these days, buyers can [tag]turn a profit[/tag] if they follow a few strategies, the Times says. A few noted by the newspaper include: targeting “desperate” sellers by finding properties that have been sitting on the market for a while.

The spring selling season has made an early appearance in New York’s Westchester County, a tony suburb of Manhattan, according to a New York Times article. Real-estate agents and brokers are hoping that the increased exuberance shown by buyers is a sign of a market recovery — the article says that open houses are attracting large numbers of potential buyers and agents are reporting increased buyer interest, the newspaper says. Boosting the market is an apparent “dose of reality” among sellers who are apparently more open to lowering their price demands — the median sales price in the county as of December 31 was $630,000, 3.4% less than the median price 12 months earlier — $652,250, the paper says. The median price could fall even more, possibly 3% to 5% by March 31, the article notes. Positive factors in nearby Manhattan are stepping up buyer demand, namely large Wall Street bonuses, low unemployment rates, and a healthy condo market — which is allowing some homeowners to sell their city abodes to pursue one in the suburbs, the Times says. (more…)

If you re a real estate investor who chooses to defer paying capital gains taxes on the sale of your investment property and roll those gains into the next investment, then you re probably very familiar with the mad rush to identify a replacement property to purchase. Current tax laws require that those who choose to use the [tag]1031 exchange[/tag] vehicle have to select a replacement asset within 45 days and then close on it within 180 days.

That’s part of what is making the concept of owning a small part of a larger asset a growing trend. The [tag]tenant-in-common[/tag] ([tag]TIC[/tag]) program offers fractional ownership of commercial real estate, allowing as many as 35 owners per deal to own a portion of properties, such as apartments or factories. This opens the door to commercial real estate for investors who might not otherwise be able to afford the property. “A lot of investors who are doing a 1031 exchange love the TICs because they are pre-packaged. Essentially an investor could study the available property and could be invested within a matter of weeks,” says Kathy Heshelow author of Effortless Cash Flow: The ABC’s of TICs (iUniverse, 2006). Heshelow adds that it is a big time-saver and a concept that is growing in popularity. In 2002, the Internal Revenue Service clarified the status of TICs as real estate and not partnerships; that ruling also made TICs qualify for Section 1031 exchanges. Today, billions of dollars are being poured into these types of investments. (more…)

My fiancé and I disagree on whether or not we should purchase our [tag]first home[/tag] outright or get a [tag]mortgage[/tag]. Our situation is this: He has a nice nest egg of $900,000 cash and a home he purchased with a business partner for $1 million (they each paid $500,000 cash) in [tag]North Carolina[/tag]. I think we should get a mortgage, but his rationale is why should he pay the bank approximately 6%? He says a mortgage only makes sense for people who aren’t cash rich. Assuming we purchase a home for $300,000, we will still have $600,000 in the bank, which is plenty in case of an emergency, and we always have the option to borrow against the house once we purchase it. What should we do?

It helps, I think, to think about spending in its simplest terms. That is, if you pay for something now, what won’t you be able to buy in the future? The money you put into your house is an investment. Whatever you spend on it can’t be “grown” in other investments, like stocks, bonds, rental properties or a cousin’s plan to open a chain of organic fast-food eateries. So you need to compare what you’d pay on a mortgage against potential returns in other investments. In other words, if you take out a 30-year fixed-rate mortgage at 6%, your other investments will have to average more than a 6% return over three decades for the mortgage to be worthwhile. Of course, there are other factors to consider, too. On the “don’t pay cash” side: Many popular alternative investments, namely stocks and bonds, can be sold much more quickly than a house — especially in a sagging housing market like we’re in now, where supply far outstrips demand. So if you find yourself in a financial pinch, you can cash out other investments more quickly than you can liquidate the assets in a home. And the interest paid on a mortgage is tax-deductible. (more…)

I was asked to review Payday Loans ABC by the developers of their website.

My first impression is that the site is easy to navigate, provides the company objectives in a clear, concise fashion and brings understanding to the subject of obtaining quick, emergency funds.

Payday Loans ABC is a provider of easily obtainable cash by circumventing the sometimes arduous process of loan qualification. The steps couldn’t be made easier – complete the application form indicating your chosen lender, then respond by email directly with the lending organization.

Requirements for approval include an active checking account, a monthly income of no less than $1,000, no outstanding payday loans, (confirmed by Teletrack) and a copy of the most recent bank statement dated within one month (30 days) of the filed application.

The company will normally request your most recent pay stub, a copy of your current bank statement and a voided check (for customers with a checking account).

Once your loan is approved, the lender will wire the money directly into your bank account.

And, not until your next pay period arrives will all fees and amounts owed the lender be deducted from your checking account.

Payday Loans ABC provides a lengthy page of customer testimonies which serve to support their claims of quick, secure and professional services.

If you are in need of “quick cash” then Payday Loans ABC is certainly worth considering.

Jay S

With the local [tag]real estate market[/tag] uncertain and little free time, the couple are not eager to go through the work of selling their home and shopping for a new one. So Russell is using technology to test the market for him: He’s used a service by real estate web site Zillow.com to drum up interest in their home without officially putting it up for sale.

[tag]Zillow[/tag] is typical of a new generation of real estate web sites that offer gee-whiz visual appeal and much more information than just property listings and cool maps. With customers demanding more accurate information and competition heating up among sites sporting more sophisticated and powerful technology, today’s real estate Web services are trying to do more of the heavy lifting around marketing and selling a property. “Things have changed a lot,” said Celia Chen, director of housing economics at Moody’s Economy.com. “Ten years ago you couldn’t go in and stick in a zip code to find out how many houses are for sale.” In addition to one-year-old Zillow, other sites include: [tag]Cyberhomes.com[/tag], a research and appraisal tool; [tag]Trulia.com[/tag], a real estate search engine; and [tag]Redfin.com[/tag] and [tag]My-Currency.com[/tag], Web portals for buying and selling homes in select US markets . Zillow has generated the biggest buzz. Its “Zestimate” service, which uses proprietary algorithms to calculate an individual property’s valuation, was a hit on the cocktail circuit, as neighbors and acquaintances could gossip about house values. (more…)

Mortgages are nearing 6 percent for the first time since last Thanksgiving, pulled down by a general flight to high-quality assets (yes, U.S. agency-guaranteed “A” mortgage paper is still high quality). The 1[tag]0-year T-note[/tag] at 4.5 percent has again priced in a Fed easing by summer (wrong several times in ‘06, might at last have it right). For cause of the global stock-market ker-plunk, we have all sorts of offerings. The most entertaining is the “Tales From the Crypt” version, blaming former Federal Reserve Chair Alan Greenspan’s mention of end-of-cycle recession possibilities. Any minute we’ll get Vincent Price on subprime, and Edgar Allen Poe on inflation.

Home prices are not “falling fast,” as in the media shriek, but OFHEO’s flat-price stats are backward-looking and mask deterioration underway. There is a large overhang of [tag]unsold homes[/tag] whose discounted prices will not show up until sold, and it takes years for flat prices to fully expose unfortunate and ill-advised homeowners. The media and even regulators are mesmerized by their discovery that most [tag]subprime lending[/tag] has been predatory. However, subprime per se is not the problem: the trouble is little or no down payment, or total equity extraction by refinance, both coupled with foolish underwriting. Little or no equity and a dead stop to prices … that’s big trouble for any loan type. How many low- or no-equity households are out there? Nobody really knows, not even the Fed. If prices retreat even a modest 5 percent, how many more low/no households? Then, even if not in job/health/marital distress, how many households will tough out high payments with no equity to defend?

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[tag]