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World Wide Recession Caused By The Mortgage Melt-down.

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Real Estate & Mortgage 6 – Foreclosure Meltdown Fraud and Scams Dec08 – Recession & Inflation

Part 6 (Excerpt)

World wide recession caused by the mortgage melt-down. Is inflation far behind?

What their ratings were based on was simply that nobody thought real estate would go down again. They were just going to keep going up forever, doesn’t really matter if you call it AAA or BBB. Isn’t going to matter if the note never get’s called.

We certainly saw that for years in the mortgage industry. We would refinances somebody and a couple of years later they would call us up again and say hey my house went up $100,000 in value and I bought a car and a boat and my kids need to go to school and give me another hundred grand out of my property, and it just kept going up forever and ever and ever and as long as that was happening everything was just fine. But then as we know everything just stopped.

There’s only so much leverage that could exist out there and that is why the stop started if you will. Because as that leverage continued to balloon; how much more leverage can a Wall Street firm or a bank take on to buy up more mortgage backed securities? Oh I know we’ll carve out these tranches and we’ll sell them off overseas. So that is where it ballooned, how wide reaching and impactful has it been?

Well we see it now it’s a global recession. It’s not a US recession for that reason. And that is starting to clean itself up, not only by the Fed aggressively here at home, by working with other developed nations around the world with their equivalents of the Fed in those countries they are doing the same thing. They are acting aggressively and that’s great for the short-term but that is like putting a band-aid on a carotid artery that has been severed, it doesn’t work. That is okay for today and tomorrow, long term there are bigger issues, bigger issues translate into inflation. Where I am going with this is the fact that right now with money being cheaper than it has been at any other time in the history of the United States.

That’s your motivation, if you’re looking for a loan, if you are looking to refinance a loan, if you’re looking for a loan modification, whatever your circumstances are, this is your opportunity. I am of the opinion that five years from now we’ll look back on this time period and say, my gosh look at all the mistakes the Fed made.

One of the things I want to go back to is something you said earlier about how all these mortgage derivatives were broken up and put back together. And most of them certainly many of them got bought by hedge funds. A lot of them got bought up by foreign governments and whatever around the world. One of the things about where that’s coming in is it’s causing a massive structural problem, especially in the mortgage industry when it comes to the servicing aspect and a loan modification aspect.

These hedge funds are now coming along, and they are suing the servicers because the servicers are doing what they had a right to do under the contract that they signed with the hedge fund in the first place which was to modify these loans. While the hedge funds are saying if you’re going to modify the loan we want all the money and the servicers or the bank or whatever is saying, no we’re not going to so now they are getting into a big fight and I have a feeling we’re going to see a lot of lawsuits, which is only going to hurt the American homeowner, because unfortunately it’s only going to delay a loan modification process.

But it’s also one more reason why you want to have an attorney on your side negotiating with the servicers, negotiating with the bank, maybe even negotiating with the hedge fund for all we know. But negotiating with somebody on your behalf, somebody with the legal power, negotiating for you so if they need to go after the bank for lack of standing, because maybe that’s what it takes to get their attention, go after them and prove they have a lack of standing and say, oh great now that I have your attention let’s do something to help the home owner.

Well, I want to point something out here because Brett, Dan, and I have talked about this many, many times, every single case that we have that is a loan modification case through Velocity Financial and through the debt alliance law firms that we use. Every one of these cases where the people tried to do this on their own, eventually they gave up, they were told No. One case that we were successful in a loan modification was a case where they were told No three separate times by his servicer. Three times, they told him No. I have this case documented, I know this person well. He was told No three separate times and we sicked the law firm on them and we got that loan modification that has actually relieved him of about $30,000 in interim monies…

Getting the Best Interest Rate on Your Mortgage

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Buying a home is an expensive endeavor so getting the best possible interest rate should be one of your main priorities.
By deciding to get the best mortgage rate possible you will be making a positive decision to help you for many years to come. However, just deciding to get the best interest rate available is not going to get you the best rate available. Instead, you will need to learn the tips and tricks for negotiating with your mortgage lender in order to receive the best possible mortgage rate for your personal situation.

Interest Rate Tip #1 Origination Fee
Your mortgage rate might be low in your mind, but you must take the origination fee into account as well because this can increase your APR. Lenders frequently charge 1%, but you can always negotiate the mortgage rate origination fee lower, usually with a little higher rate. Also, if the origination fee is much higher than 1% you need to either negotiate it down, or find another lender with a more favorable overall origination charge.ge.

Mortgage Rate Tip #2 Lock in the Rate
When negotiating your mortgage rate, make sure your lender is prepared to lock in your rate for at least 30-60 days. This way you will be guaranteed a particular rate even if rates skyrocket the next day. Another trick many individuals are not aware of is to include a clause that also will allow you to take a lower rate if rates fall during this period. This is a great mortgage rate tip because you get your mortgage rate locked in so it can’t go any higher, but if the average mortgage rate goes lower you receive the lower rate.

Mortgage Rate Tip #3 Fight
If the mortgage rate drops significantly and you have already signed a deal locking in a particular mortgage rate and don’t have a clause that ensures you will receive the lower rate, then you need to fight. You simply need to call your lender and say that while you signed the lock in agreement you want the lower rate. This will take some negotiating , but your lender wants you business and might be willing to negotiate the mortgage rate with you.

If you want to find the best Mortgage Banker/Lender for your situation, try this website:
www.mortgageseeker.biz Scott is a Financial Professional with over 18 years in the Mortgage industry and the Debt Relief industry. He has written many article on the subjects of Debt Relief and Mortgage Financing.

Mortgage Arrears! What You Can Do If Your Mortgage Payments are in Arrears

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The past few years have been very tough for many Ontario homeowners. Skyrocketing costs of food, gas, home heating, in addition to credit card and personal debt has left many families strapped for cash and wondering how they will make ends meet each month.

The absolute last thing you want to have happen is to have your mortgage payments fall into arrears. When mortgage arrears occur you can become at risk of losing your home. Also, when mortgage arrears compound they can become so high that they become difficult to pay up to date.

Before you can deal with your mortgage payment arrears you must first explore what led to the arrears in the first place. The tools that you can use to deal with mortgage arrears are the same tools that you can use to deal with other financial problems that are fuelling the issue.

If your mortgage arrears were caused because your personal expenses to maintain your home have increased and that combined with payments to credit cards and loans have become impossible to pay each month, will be crucial to come up with a strategy to reduce your overall monthly payments.

Bankruptcy trustees and debt counsellors promote Federal Government programs and debt consolidation to reduce interest on debt and monthly payments. The problem is that the vehicle used to achieve this is often a debt settlement or consumer proposal which will have a devastating impact to your credit and will permanently destroy relationships with creditors that you have built up over the years.

If you want to reduce your monthly payments and reduce relationships with your creditors and preserve your credits, you must pursue debt consolidation options that honour your obligations to your creditors but also reduce your monthly payments.

If you do not yet have mortgage arrears but know that things are headed in that direction, you must act fast because your options will change once your mortgage payments are in arrears.

Using your home is the fastest and most affordable way to consolidate debt and reduce monthly payments. You may be thinking that your bank has already said no but the bank is not the only option. There are many other lenders like trust companies, credit unions, mortgage investment companies and even private lenders that will offer mortgage financing when the bank won’t. A good Mortgage Broker will have access to these financial resources.

Once your mortgage payments are in arrears your options will be less. Most mortgage lenders will require that your mortgage payments are up to date before they will extend mortgage financing. The only lenders that will make a concession in this scenario are lenders who offer equity only mortgages. This means that they will lend to you based on the amount of equity you have in your home, not based on your personal credit. In this case, you will require a little bit more equity in your property.

If you are in this situation, the best thing you can do is take the steps to resolve your mortgage arrears or impending mortgage arrears before you put your house at risk.

Good And Bad Are A Matter Of Perception

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There is an infinite balance in the universe that equilibrates the ups and downs of life evenly and equally at all times. Like gravity or magnetism the balance is invisible to the eye and has to be examined and studied, to be brought out of obscurity into understanding. Sir Isaac Newton observed, for every action there is an equal and opposite reaction. While Newton was referring to the laws of physics his theories extend beyond the commonly accepted science to include the very fabric of the universe and govern the lives of each and every person living on the planet.

To put it simply good and bad exist in harmony together at all times and in all places, but it is a persons perception and perspective that create the illusion of things being either good or bad. If people understood perfectly the laws of physics that Newton uncovered they would begin to see that for every perceived bad circumstance, event or situation there is an equal and opposite good perception waiting to be identified and vice versa.

The economy may be down and people have lost jobs, but that is only the beginning. The housing markets have dropped because of the foreclosure rate that may be bad for those that have been forced to find alternative places to live, but on the opposite side of all the perceived negatives are the positives. People forced to move out of homes that they could not afford are finding that they can now manage their finances better as people that once thought home ownership was beyond their reach are buying homes that are now available at discounted prices. Even the banks and lenders are benefiting again by the drop in interest rates that are allowing people to take advantage of low mortgage rates and refinancing options that they could not expect to see before the economic downturn.

Veteran loans and refinancing options are helping people to have the good amid the bad and turn the economy around by extending home loans to people that are taking advantage of the positives with lower interest rates and home prices that may appear to be negative to some but that demonstrate an equal and opposite balance in reality.

While things have been dark there has always been an equal amount of light shinning in the darkness for those that have the wisdom to see both sides of good and bad and are able to see the balance that exists between the two polar opposites with unbiased perspective. Look for the opposite, believing that it exists and you will being to see the truth of Newtons law pertaining to the there being an equal and opposite force or action to every event, every situation and every circumstance that comes into existence. Reality is the balancing of perceptions and understanding that both opposites must exist together in order to sustain the unseen laws of the universe that support life.

Portugal Mortgage Intro

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Portugal Mortgage Finder is a company headed up by Justin Whitelock who spent many years in the Spanish market place before making the move to Portugal. Starting out he managed what became largest broker on the Algarve for just over two years before setting up business for himself.

Below you will find some outlined information on Portuguese mortgages, the dos and donts when it comes to looking for a property and acquiring the services of a mortgage broker.

The Portuguese mortgage market is quite condensed in terms of product and options when it comes to acquisition mortgages for that first holiday home or the overseas investment youve been dreaming about over the past few years. Only a hand full of banks have a worthy product range when it comes to a non residents needs in comparison with the UK, that said each bank has different requirements in terms of what they want from the client with regards meeting the criteria of there own risk assessment dept. This is why the use of an experienced mortgage broker can be vital in getting the mortgage approval needed with the terms and conditions required. Portugal Mortgage Finder not only has the experience but also ultimate confidence in finding its client the right product and meeting there financial needs. So much so there is no upfront broker fee, no approval fee or any other fee for that matter associated with them helping you set and arrange the mortgage you require. They do receive a payment of course, but this comes directly from the bank and only after the mortgage is signed. So if youre not happy with what you have been offered simply look elsewhere without feeling trapped.

First point to address is anyone thinking of buying a property should first seek the assistance of an experienced mortgage broker. Understanding what your options are in terms of lending, along with the type of documents required and level of income expected to achieve the property purchase in mind is paramount to the success of turning your dream into a reality. In the current market even people with the cash to make an outright purchase should look at obtaining mortgage advice. With the weak pound and the very low interest rates offered at present, making use of a Euro mortgage now and having the flexibility of repaying the loan back when the pounds strengthens might be a much better options than waiting to purchase until this happens as more than likely the property price will reflect this.

The advice to people thinking about buying property is do your homework, set yourself a realistic budget. Once you have the kind of property and price in mind then make sure you get some credible mortgage advice. Looking at property before you are absolutely sure about what you can afford or what your income level will allow you to afford can be both a cruel and costly mistake. Having the mortgage amount in place or at least the knowledge of what you could borrow can be vital when making that purchase decision.

To find out more information or to sign up for the monthly news letter giving helpful information to buyers and owners alike got to Portugal-Mortgage.com

Remember, if a company wants to charge you a fee before doing any work then the outcome will more than likely be you being unhappy but as you have already paid you feel trapped to move elsewhere