Personal Finance
The 700 Billion Dollar Solution, U.S taxpayers request help
Preface:
Special thanks to Gabe Houston for his proposed “SOLUTIONS” document on the subject. After months of encouragement, Mr. Houston has memorialized our collaborative thoughts and conversations to paper. The proposed SOLUTION is a response to a letter sent from Leo W. Gerard of the United Steel Workers Union to Treasury Secretary Paulsen, dated October 28, 2008. In this letter Mr. Gerard clearly outlines the short comings of the actions taken by the Congress with the $700 billion dollar bail out.
This document provides an economically responsible and realistic solution that was ignored in the frenzy of the last actions of an exiting administration.
Mr. Houston and I have first hand knowledge of the banking sectors’ unwillingness to take losses and liquidate their non-performing assets. There have been an innumerable amount of investors standing in line offering to buy billions of non-performing REO assets from the banks holding the properties. These investors are simply seeking to assume the risk and gain any potential profit in converting non-performing assets into fully performing investments.
The greed of the banking sector prevailed as banks were unwilling to liquidate their REO holdings for relatively small realized losses. The banks refused offers by fund managers, portfolio managers and individual investors to purchase both individual properties as well as bulk REO portfolios at 50-75 cents on the dollar. The banks to date have refused to liquidate their losses at any amount below 80-95 cents on the dollar. Thus plunging the credit market into what the banks conveniently and erroneously label “liquidity problems”. Lack of liquidity implies there are no willing buyers for a willing seller. The current “lack of liquidity” in the housing market is simply a result of the banks unwillingness to sell their REO holdings to the market at current market prices. Today’s prices are deemed “too low” by the banks. Selling at the current bid price requires the banks to take a loss on their investment as a result of their poor and irresponsible investment underwriting. Instead of realizing these losses, the banks sought and received a governmental bailout on the backs of the U.S. taxpayer.
Charlottesville Insurance Agent and Disaster Relief
Whether due to a family vacation or routine business travel, we all have times when we are away from our homes for an extended period of time. And, if you are like me, you probably leave a spare key with a trusted neighbor or family member so they can collect your mail, water your plants, or feed your pets.
And although the possibility is remote, an accidental loss from sources like a broken pipe may occur while you are away from home. Especially from water losses, it is extremely important that these issues are immediately addressed so that they do not get worse and cause even more damage.
By simply adding your insurance agent or insurance claims department phone number to your emergency phone list, will help in getting this matter started or even completed before you return from your vacation. Can you imagine coming home to find out that your neighbor not only watered your plants, but shut off the valve to your hot water heater, contacted your claims department, had ServiceMaster come in to start drying your floor and subfloor and you know this because a check for $4000 is sitting on your breakfast counter. Someone is getting more than a gift card to the Olive Garden.
Although the above is an extreme and would probably only work in the movies. The idea of having the correct information at your fingertips is what I am stressing. You can play the devil’s advocate, and say that a non resident member is making claims against your homeowners policy. And instead of giving that Olive Garden gift certificate you are slapping them with a lawsuit. But we all know that the trusted neighbor or family member will hopefully do the first step in shutting off the water and then call you. How many of us have our insurance agent on speed dial? Wouldn’t it be nice to get a call from the trusted neighbor, get the bad news, and then ask them for the number to the Matthew Taylor Insurance Agency on your emergency phone list?
Your Mortgage Crisis Does and Dont’s
Unfortunately this is an extremely difficult subject for homeowners. With the emotionals ties to the home and in many cases a strong moral convictions to abide by the rules; good people still find themselves
Google Aids Mortgage and Insurance Underwriters in Secrecy
Here is a bit of information I think that will be valuable to consumers who are looking for mortgage financing or are applying for new homeowners insurance. I bet you didn’t know that Google Maps “street view” may be playing a part in whether you are approved and or may increase your insurance premium.
This issue is similar to those applying for new jobs as well. The top HR departments and underwriters are Googling you. So don’t be surprised if you are declined for a job, mortgage financing, or insurance based on your internet search engine audit trail.
In real estate and finance this is becoming more and more apparent with the credit crunch. Underwriters are taking a deeper and deeper look at you and you collateral (your home) based on the images from Google Maps “street view.” If your appraiser misstates the quality or uniqueness of your home or you embellish the truth on an insurance application you may find difficulties getting financing or higher insurance premiums.
Savvy underwriters are seeing your home in high definition right from the front curb. They are not just seeing the overhead view. They even have the opportunity to drive up and down your streets and check out the neighborhood with stunning clarity via cyberspace.
It is becoming easier and easier to scrutinize new customers in secrecy. Keep that in mind if and when you decide to embellish the truth on a mortgage or insurance application.
New Conforming Loan Limit Calculator by Zip Code.
We are now getting a glimpse of how investors(mortgage providers) will be treating the new Fannie Mae/Freddie Mac conforming loan limits which were part of the national stimulus package. The first of many investors are coming out with general underwriting guidelines. It appears they are moving cautiously. This may speak volumes on their attitudes on the subject of increased loan amounts. Moreover it appears that they will be categorizing these loans in a different conforming product bucket. (Conforming Jumbo Loans)Below is a conforming loan limit calculator as well as some highlights of the guidelines.
Calculate your new mortgage loan limit by Zip Code. Click Here
Simple Stock Investment Strategy
Dollar cost averaging allows young investors to purchase stock investments consistently over a longer period of time. This stock market strategy works especially well with broad-based market index investments like the mutual funds and ETF’s that mirror the return of the S&P 500. This is an
Financial Education Changes Lives
Today the financial odds are stacked against your children. Every day, more Americans are falling victim to runaway personal debt, an empty savings account, and inadequate retirement planning all because they lack a practical financial education. It’s not taught at school so this is where you come in. A recent study by the Government Accountability Office (GAO) predicts that one out of every three workers will have
As requested. Here are the Phone Numbers.. Let me know how they work out.
30+ days late:
800-799-9250
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I'm looking for the lost Mitigation for GMAC Mortgage, I can only get to the collection department. They will not ...
So true!! Great article. Any stuff you can post on Google pagerank. 
Thanks....that link rocks! 
Great site!! Thanks for the online auction info.