Next Bailout Casualty Could Be the Biggest Yet

New York, NY (PRWEB) November 30, 2011

Popular e-newsletter Profit Confidential reports that an independent annual audit of the Federal Housing Administration (FHA) has concluded that its cash reserves have fallen so low there is a 50% chance that the FHA itself will need a government-led, taxpayer-paid bailout in 2012.

Mortgage payments on about 600,000 home loans insured by the FHA are three or more months past due. “This is unsustainable; something has to give,” writes Michael Lombardi, lead contributor to Profit Confidential.

Rising home-loan defaults amid falling home prices are responsible for bigger losses on the sale of FHA-mortgage-insured foreclosures. About one-third of the home mortgages issued in the U.S. in 2010 to buy homes were insured by the FHA.

“I hear the ringing; U.S. government debt is going up again!” says Lombardi.

In Profit Confidential, Lombardi writes, “Our government determined to move the Keynesian approach to economics by increasing the U.S. government debt and interposing in the marketplace with taxpayer money in a large way following the 2008 credit crisis. The government reprimanded, or took over, Freddie Mac and Freddie Mac. Thus, the government indirectly entered into the U.S. home mortgage business.”

Now, the next casualty could be the FHA, an agency that may have to enquire for a bailout for the first time in its three-quarter-century history. And, because of how the FHA is positioned up, it wouldn’t ask to go to Congress to get approval for a government bailout; it could but enquire the U.S. Treasury, heaping more onto the U.S. government debt.

Recent reports have stated that the FHA is currently leveraged at 300 to one; $ 2.6 billion in reserves to cover $ 1.1 trillion in liabilities.

According to Profit Confidential, when President Obama’s first four-year term is over, the U.S. government debt will have risen 50%, or about $ 5. trillion dollars, since he first took office. There is a huge problem with this statistic.

The U.S. government debt continues to rise at an alarming rate; meanwhile, the special debt-reduction committee in Congress failed to agree on government spending cuts or raising tax revenue.

According to Lombardi who writes in Profit Confidential, “The U.S. government debt will continue to rise, the U.S. economy is failing to turn around, and the Federal Reserve will need to do more to bolster the economy, resulting in a continued decline in the value of the greenback and rising gold prices.”

Lombardi has written extensively on this issue for Profit Confidential, including the insightful article entitled, Central Banks Back Buying Gold with a Vengeance.

Profit Confidential, which has been published for over a decade now, has been widely recognized as predicting five major economic events over the past 10 years. In 2002, Profit Confidential started advising its readers to buy gold-related investments when gold traded under $ 300 an ounce. In 2006, it “begged” its readers to get out of the housing market…before it plunged.

Profit Confidential was among the first (back in late 2006) to predict that the U.S. economy would be in a recession by late 2007. The daily e-letter correctly predicted the crash in the stock market of 2008 and early 2009. And Profit Confidential turned bullish on stocks in March of 2009 and rode the bear market rally from a Dow Jones Industrial Average of 6,440 on March 9, 2009, to 12,876 on May 2, 2011, a gain of 99%. To see the full article and to learn more about Profit Confidential, visit http://www.profitconfidential.com.

Profit Confidential is Lombardi Publishing Corporation’s free daily investment e-letter. Written by financial gurus with over 100 years of combined investing experience, Profit Confidential analyzes and comments on the actions of the stock market, precious metals, interest rates, real estate, and the economy. Lombardi Publishing Corporation, founded in 1986, now with over one million customers in 141 countries, is one of the largest consumer information publishers in the world. For more on Lombardi, and to get the popular Profit Confidential e-letter sent to you daily, visit http://www.profitconfidential.com.

Michael Lombardi, MBA, the lead Profit Confidential editorial contributor, has just released his most recent update of Critical Warning Number Six, a breakthrough video with Lombardi’s current predictions for the U.S. economy, stock market, U.S. dollar, euro, interest rates and inflation. To see the video, visit http://www.profitconfidential.com/critical-warning-number-six.

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Answer by South Side Chick
Your better off going thru a mortgage broker.They will charge you an origination fee and processing fee. It will probably end up costing less than an attorney would charge.Ps. You might be able to talk them out of the origination fee, if you tell them your story.

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Answer by I did your mom
house is a necessity, ppl who buy those such cars can usually cough up all the liquidate in one go

Add your own answer in the comments!

Austin, TX (PRWEB) November 22, 2011

The National Association of Realtors has just released the October Existing-Home Sales figures which Homes.org has analyzed for its readers, highlighting the key takeaways and what buyers and sellers can likely expect in the months to come given the market performance in October.
The positive news is that sales of existing homes is up 1.4% from last month and up 13.5% compared to October of last year. The familiarized annual rate of home sales in October was 4.97 million showing the real estate markets are leftover steadily, however the improvements weren’t enough to make economists pronounce a turnaround in the markets, which they say would take 6 million monthly home sales.
“Home sales have been stuck in a narrow range despite several improving factors that generally lead to higher home sales such as job creation, rising rents and high affordability conditions. Many people who are attempting to buy homes are thwarted in the process,” stated NAR primary economist Lawrence Yun.
Another less encouraging finding in the October Existing-Home Sales report was that many contracts are falling through before they can close which is helping to suppress the progress of real estate markets. Homes.org has previously covered the issue of why contracts are falling through and the top reasons cited for the contract failures in October correlated with a number of their findings:

    Declined mortgage applications     Failures in loan underwriting due to appraisals coming below the contract price     Home inspections     Employment loss     Disruption in the National Flood Insurance Program     Lower loan limits for conventional mortgages that have led to higher interest rates The report found that contract failures was at 33% in October up from just 18% in September. Some of the factors, such as the National Flood Insurance Program, problems are temporary whereas some of the issues have been ongoing results of tightened lending. Given the change in conventional loans which contributed to the decline in closed contracts, it is likely that the FED will continue to do what they can to keep mortgage interest rates low. Though many people have been outspoken about the shortcomings of the new appraisal process, it doesn’t appear that the government will ne relenting on the Home Valuation Code of Conduct (HVCC) that went into effect in May of 2009.
To learn more about why real estate contract fall through and how to improve your odds of getting to close, please visit: http://www.Homes.org
About Homes.org
Homes.org is a diet growing real estate seeking portal that offer users much more than MLS listings. Homes.org gives users access to a rich collection of resources, including but not limited to, real estate listings, home owner finance tools, home service tools. Homes.org brings buyers, sellers and renters important information about the current markets and intelligent tools by partner with real estate professionals from around the country. Homes.org is a subsidiary of Star Nine Ventures, Inc. headquartered in Austin, TX.
About Star Nine Ventures®

Star Nine Ventures® is an Austin-based, marketing-driven venture creation accompanied targeting a wide range of national business-to-consumer online marketplaces. Star Nine’s core mission is to build businesses that rendering exemplary consumer experiences and unique customer service.

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More Mortgage Loans Press Releases

HomeStart Capital Website

Houston, Texas (PRWEB) November 20, 2011

HomeStart Capital, located in Bellaire, Texas, is a Houston-area mortgage broker specializing in home mortgage, mortgage refinance and construction loans since 2007. Their licensed mortgage lenders assist consumers in finding the right loan or mortgage product for their needs.

In an effort to create a more appealing image for today’s mortgage consumer, HomeStart Capital recently chose Houston web design and inbound marketing agency Adhere Creative to revamp their brand. Adhere Creative’s leading team of marketing professionals incorporates web design, graphic design and brand development expertise for a holistic approach to each brand redesign project.

In partnership with Adhere Creative, HomeStart embarked on a total branding makeover in an effort to attract potential clients and convert them into actionable leads. The project includes an updated website design, a fresh look for their marketing materials and a modern new logo.

All brand components such as business cards, envelopes and letterheads are now designed to reflect the new image. The retooled website design, created by the Adhere Creative team, is more user-friendly and visually attractive. Improvements include an easy-to-navigate home page where visitors can get instant access to rate quotes, a personal mortgage specialist and mortgage information. They can also make online payments or even apply for a loan quickly and conveniently.

Other new features include a blog page and social media access that allow visitors to get and share information about financial topics with the click of a button.

In addition, realtors interested in partnering with HomeStart Capital can now easily find the information they need to get started, right from the home page.

Daniel Jara, Partner at HomeStart Capital, believes that this brand redesign will help his company reach out more effectively to both new and existing customers. He states, “From all of us at HomeStart Capital we thank [Adhere Creative] for making our goal of rebranding our company and launching a new website a reality. It has been an awesome undergoing and we look forward to reconnecting with our current clients and marketplace with our new identity and web design.”

To the Adhere Creative team he saying, “Great work! We’re looking forward to working on future HomeStart Capital marketing projects with your team.”

The experience was also a gratifying one for the marketing specialists at Adhere Creative. Jon Feagain, Art Director at Adhere Creative, comments, “Working with HomeStart Capital on this project was a lot of fun. The team over there is full of energy and as a designer, it was a pleasure reflecting that in their new brand components.”

The website redesign for HomeStart Capital is another success story for Adhere Creative, and a fresh start for the HomeStart brand. By giving customers better access to the products and services they need to doing smart financial decisions, this brand makeover will help HomeStart improve their service to Houston-area residents, and make the dream of home ownership an affordable one for both first-time buyers and refinancers.

Adhere Creative, a Houston web design, branding, and inbound marketing agency, specializes in results-driven marketing initiatives for the Houston business community.

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Orlando, FL (PRWEB) November 16, 2011

Covendium, the nation’s largest debtor-side commercial loan restructuring and advisory firm, has entered into an alliance with commercial real estate services firm Colliers International South Florida, offering Colliers’ clients market-leading commercial debt consulting and advocacy to help them sell or lower the cost to lease or operate their commercial properties.

Stephen Nostrand, CEO of Colliers International South Florida, points out, “By partnering with Covendium, our clients can lower their commercial debt payments or principal balance, which allows them to realize the underlying value of their assets. This results in stability and the opportunity to operate in alignment with the market.

Covendium’s team of professionals works directly with entrepreneurs to identify the most efficient capital and operating structure based on current market values, lease rates, the restructuring capability of their lender and the interest of outside investors to provide incremental debt or equity to the business. Covendium’s five billion dollar experience in commercial debt, along with its unrivaled experience in dealing with the widest variety of national, regional and community banks, will help Colliers clients sell or lease their property at values that make economic sense.

“Like Colliers, we believe that to get the economy moving again, we postulate to create an environment where entrepreneurs feel confident in buying or leasing commercial space,” says Doug Long, President of Covendium. “Artificially eminent lease and property values will not only delay our economical recovery, but will delay much-taken property maintenance and improvement, which depresses vacant properties another 30-40 percent. In many instances, legacy Covendium clients are more profit-making in this economy than they were at the height of the bubble – and certainly have more time to focus on their business as opposed to worrying about their debt.”

For more information about the partnership with Colliers International or any of Covendium’s services, call (407) 965-3535 or go to http://www.covendium.com.

About Covendium
Covendium specializes in comprehensive commercial debt resolution, restructuring and business consulting for clients whose financial model has been compromised by the economic downturn and the bank liquidity crisis.

For some clients, all they need is an experienced negotiator to provide their lender with the reality of the financial situation and the tool-set to restructure their obligations. For other clients, Covendium provides business consulting and access to non-bank funding sources.

Their team of professional advisors has successfully restructured billions in transactions, with dozens of banking institutions (including major national, regional and community banks) and over 30 separate non-bank financial counterparties.

Bad things happen to good people. Covendium is a premier national debt resolution firm that helps their clients with everything from commercial foreclosure to debt management to commercial debt restructuring to private debt placement.

About Colliers International
Colliers International is the third-largest commercial real estate services company in the world with 12,500 professionals operating out of more than 500 offices in 61 countries. A subsidiary of FirstService Corporation (NASDAQ: FSRV; TSX: FSV and FSV.PR.U), it focuses on accelerating success for its clients by seamlessly providing a full range of services to real estate users, owners and investors worldwide, including global corporate solutions, brokerage, property and asset management, hotel investment sales and consulting, valuation, consulting and appraisal services, mortgage banking and research. Commercial Property Executive and Multi-Housing News magazines ranked Colliers International as the top U.S. real estate company and the latest annual survey by the Lipsey Company ranked Colliers International as the second most recognized commercial real estate brand in the world.

With offices in Miami, Fort Lauderdale and West Palm Beach, Colliers International South Florida is the single source provider of comprehensive commercial real estate services to local, regional and international owners, occupiers, investors and lenders.

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Related Mortgage Loans Press Releases

Chicago, IL (PRWEB) November 15, 2011

Clopton Capital is a semi truck financing provider and is located in Chicago, IL. They primarily focus on commercial mortgages, SBA loans and niche financing mechanisms such as gas station loans and owner operator financing. The founder of Clopton Capital is Jake Clopton and this press release is part of Clopton Capital’s consistent effort to remain involved with the public, namely their future clients. Clopton Capital can be contacted at CloptonCapital.com.

Clopton Capital has recently entered the planning phase of marketing, field underwriting and issuing commercial truck insurance as an added service to their already existing semi truck financing services. The belief of the firm is that financing a semi truck is their primary goal, selling a truck in tandem to financing it is the second priority and insuring the said semi truck is an ancillary service to increase profits further. The insurance products will be source throughout multiple providers in an effort to be competitive with the other online insurance retailers in the same market. “I’m really excited to expand operations into a market that is so lucrative and has so little competition on the Internet. You rarely hear of anyone competing in the business of commercial truck insurance”, said Jake Clopton, the founder of Clopton Capital.

Clopton Capital’s future plans involve developing and promoting a website specifically for commercial truck insurance and becoming a well known name for both semi truck financing and semi truck insurance throughout the trucking community. There are currently no plans to expand the offerings within the realm of semi truck services any further, but the firm is open to that in the future.

Clopton Capital can be contacted at their website CloptonCapital.com or at 866.647.1650 during regular business hours central time. Their website contains more specific information about their commercial loans. Their website dedicated entirely to semi truck financing is SemiTruckSource.com.

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More Mortgage Loans Press Releases

Answer by Carolinahomerates.com
fix it! i have never heard such a thing……and i mean doctoring it by putting it in a fixed mortgage.What is the rate? and the loan amount?

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United Foreclosure Attorney Network

Roseville, California (PRWEB) November 11, 2011

On Tuesday October 25, 2011, United Foreclosure Attorney Network (UFAN) filed suit in Superior Court in Sacramento (case # 34-2011-00112919) on behalf of borrowers allegedly injured by the lending practices of Aurora Bank and others believed to have misled borrowers.

The complaint alleges that Aurora was one of the major players in a scheme to make fast, easy profits at the expense of proper mortgage underwriting procedures. By packing subprime loans into mortgage backed securities that were sold to investors, a bank could recoup the funds lent immediately. The suit argues that this process encouraged lenders and mortgage brokers to aggressively push high-cost subprime loans on anyone they could convince to sign on the dotted line.

According to court documents, plaintiffs argue that because of the sale of their loans, they did not receive the benefit of the contract for which they bargained. Plaintiffs, believing they would be placed into a traditional Lender/Borrower relationship, later found that they did not have a “lender” with whom they could deal. Servicers are limited in making changes to contracts when circumstances are unforeseeably changed. Furthermore, loan servicers have an incentive to foreclose whereas a lender has the incentive to modify a loan if it would be more profitable in the long run. If many of the homeowners were still in the traditional lender/borrower relationship, they could have restructured the mortgage for a more desirable result for both parties. In the current situation, the only entity profiting is the loan servicer. The complaint details how many Plaintiffs diligently sought modification of their loans but were denied either because the servicer had no authority to grant a modification or because the servicer chose not to grant a modification.    

Court documents show that Aurora is alleged to have used a variety of tactics to generate the highest amount of fees possible without regard to the injury it would cause borrowers. One tactic is “equity stripping,” which refers to making a loan based on home equity without regard to the borrower’s ability to pay. These loans are set up to fail and lead to subsequent foreclosure. Aurora is also accused of “flipping” which refers to encouraging frequent refinances by homeowners. Borrowers receive cash up front but do not realize that the fees added to their existing loan balance often exceed the amount of cash received – gradually increasing the amount owed over time. Unsophisticated borrowers are especially susceptible to these types of loans because lenders and brokers often use aggressive sales tactics and represent that they are the only type of loan available.

The complaint alleges that, in addition to harmful loan types, appraisers used by Aurora were encouraged to inflate property values in order to give borrowers higher loan amounts. The higher the loan amount, the more money Aurora was able to make on the sale of the loan to investors. It is argued that the bank incentivized appraisers to falsify property valuations in order to secure a higher loan to sell to investors. The complaint alleges that Plaintiffs borrowed excessively in reliance on inflated appraisals and other false statements.

The complaint further alleges that the ownership of Plaintiffs’ notes is unknown, thus questioning, among other things, Aurora’s right to enforce the notes. The complaint requests declaratory relief on several matters relating to the parties’ rights and duties under the contract.

UFAN has currently has lawsuits pending against Bank of America (case # 2:11-CV-02413) and Wells Fargo (case # 2:11-CV-02684) in Federal Court for the Eastern District of California, and against JP Morgan Chase (case # C-11-02390) in Superior Court of Contra Costa County on behalf of borrowers alleged to have been injured by these banks. UFAN will continue to fight for the rights of its clients.

ABOUT THE UNITED FORECLOSURE ATTORNEY NETWORK

UFAN Legal Group, PC dba United Foreclosure Attorney Network (UFAN) is a Roseville, California-based law firm providing bonding litigation and other debt related legal services. The dedicated attorneys and staff at UFAN work tirelessly to seek justice and fight for the rights of its clients. For more information call toll free 1-866-400-4242.

This release may represent attorney advertisement. The information in this release and on the UFAN website (ufanlaw.com) is for cosmopolitan information purposes merely. Nothing in this release or on the UFAN website should be taken as effectual advice. Prior successes are no guarantee of future performance. Litigation is inherently incertain and results in litigation are ne’er insured.

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Answer by bostonianinmo
Of course not.How do you “arrest” a company??

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