Category: Mortgage
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…
The most successful companies in the world choose words carefully when they create their advertising taglines. You can learn from their advertising strategy and experience. Treat your mortgage tagline as a critical part of your marketing campaign and choose your words very carefully.
In case you don’t know what a tagline is…it’s a short (usually one line) advertising blurb that aids in establishing credibility for you. Your mortgage tagline helps customers and prospects to feel that calling you and working with you is a “safe” choice. Your tagline can help drive business for you.
The really nice thing about taglines other than they work, is…they’re absolutely free! Once developed, they sort of tag-a-long and enhance all of your mortgage marketing material and summarize your advertising message in one short sentence.
How much more effective could your advertising be if you treated your tagline as a sales opportunity? With just a few additions and small adjustments, you could significantly improve the power of the tagline in your ads, and improve your return on your advertising investment.
Here are a few examples of some highly profitable taglines: Coke – “The Real Thing”, Pepsi – “The Choice of a New Generation,” Maxwell House Coffee – “Good to The Last Drop,” Budweiser – “The King of Beers,” All of these companies know that their tagline is a sales opportunity, and they use every word carefully to take full advantage of that opportunity.
One thing to keep in mind is that the key to creating your very own “mortgage brand” or “mortgage tagline” begins with creativity. You want people to think of you when they think of mortgages. Make sure your brand has an emotional ring to it. The right choice makes people want to do business with you and actually creates customer loyalty. The right brand tugs at their heart strings and says “buy me.”
If your business card says “Vice President” that’s great…except it really doesn’t describe exactly what you do, does it? Instead let’s use the title “Home Loan Consultant” or “Investment Specialist” instead.
Now, not only do you have a great title, but the title describes to folks exactly what you do and what you’ll be talking to them about. There’s no mistake here…you don’t work for an Automobile Dealership, or a Dry Cleaner, or whatever. You are involved in loans and mortgages.
If you’re having a problem getting started, just Google your competition and the consumer goods industry, then convert their marketing campaign and sales message into your very own mortgage business strategy. Work your chosen tagline into every single facet of your business plan and marketing program.
By simply improving the power of your tagline, you can improve the response to your marketing material, improve the return on your advertising investment, and improve your mortgage business. Go for it!
What is a reverse mortgage? This is a question that is being asked by a lot of people. The answer is that this type of mortgage is for anyone that is over sixty two years of age that owns their home free and clear.
These are the two main factors that determine whether you are eligible for reverse mortgage or not. Basically you can get cash from the equity you have in your home. You can get a small loan or a larger sum of money depending on what you need to survive everyday easier.
This type of loan was put into place to help the elderly survive when their income becomes reduced drastically and most are unable to work.
There are two ways that the money can be paid to you: in one lump sum or as scheduled payments. There will not be a monthly payment that is required for getting money this way. The payments will begin only when one of three things happen which are below:
1. When the person who owns the home passes away and the house is sold on the market. Selling the house will ensure that the loan is paid off using the proceeds of the sale.
2. If you decide to sell the home before passing away then the same will hold true. The loan will be paid off using the proceeds from the sale of the house.
3. When the person who owns the home has to be put into a full time care facility the loan will be need to be paid in full. Again this can be achieved by selling the house. You also have the option with this to rent or lease the property instead and then the payments will be made to the holder of the loan.
Before deciding to get this type of mortgage loan you need to do your research on it and be sure you understand as much as you can about it so you can decide if this is your best solution to secure the money you need to survive. Also talk to a mortgage lender to help you make the smartest choice possible.
Now that you know the answer to the question what is a reverse mortgage; you will be better able to make an informed decision to help you in your time of need. If you are over the age of sixty two and own your home free and clear than taking advantage of this type of mortgage could mean the different between you surviving easily or struggling to survive.
Believing on relatives and friends for funding is sometimes broken your confidence when it is urgent to take funds for ending up financial hassles at the weekend. Looking for exterior financial funding is really a tough task since you need a big amount of times to spend that is not with you. As the name suggests, weekend payday loans fast are great economic financial friend in financial troubles.
You can take help of these loans at any point of time whether your cash need arises at the weekend or at other special day. Weekend payday loans fast take responsible to offer you financial support as per your need conveniently. Money that you access through these loans will help you handle almost all short term purposes whether these include medical bills, light bills, bank overdrafts, room rents, credit card payments, due loan installments, extra shopping, traveling expenses and many more.
There are two prime mediums through which you can apply for the loan. You can apply either offline or online according to your choice. However, you are advised to get funds instantly. Online is an excellent and amazing way to get weekend payday loans fast without faxing documents and prolonged paperwork. You are required to complete a simple online application form with the required details related to your name, address, gender, account number, phone number, email id et cetera and you have to submit it. After awhile the money is sanctioned directly into your active bank account.
For getting approved for fast money, you should be UK resident and at least 18 years old of age. In addition, you must have a fulltime job herewith stable monthly earning and you have a valid running bank account. Even though you follow these preconditions then you are able to enjoy weekend payday loans fast without any trouble. Youre also not deprived from taking advantages of these loans because of your poor credit performances. These loans are also offered to people tagged with bad credit factors such as late payments, CCJs, IVAs, loan defaults, foreclosure, bankruptcy and all that.
Weekend payday loans fast are short term financial succor offered to all people for rooting out all financial troubles right on time. With these loans you can get the amount in ranging from 100 to 1,000 with the repayment time range of 14 – 31 days. You are not required to place any sort of collateral and so the rate of interest charged is a bit high.
The procedure of getting a mortgage is able to be tremendously difficult because of the many procedures which one requires going through particularly on the service provider being a small sized company. Mortgage outsourcing Companies has made the procedure a lot easier, so, making small firms deliberate on more money-making ventures. Mortgage outsourcing entails employing a firm having competent personnel who recognize the procedure and know the way of reducing the time taken and making it additionally manageable.
Among the benefits in appointing the services of an outsourcing company is:
1) The lender getting to save much money that they would be spending on not having involved the firm. This happen to be in order to the plan of the mortgage lender company as they now just focus on seeking additional clients, and bettering the additional services which they provide to their clients.
2) A company ought to make sure that they are spending less and earning more, a feature which the mortgage outsourcing companies assist the lenders attain. The firms not engaging services of mortgage outsourcing companies require employing everlasting staff to deal with such matters. This is having a cost inference to it on a month- by- month basis so that the firm requires paying their wages if or not they are having work in that month. Mortgage outsourcing companies just come in on being needed, and are paid just for the work that they do. The acquisition procedure of a mortgage is a lengthy one, for the lenders as well as the customer. To go through the procedure might be taking up time which the firm is able to make use of for additional income making ventures.
Mortgage outsourcing companies, in contrast, take up an extremely brief time that in a number of cases is able to be inside 24 hours. The procedure of mortgage achievement has need of the services of legal representatives, to guarantee that the procedure followed is not having any legal irregularities, underwriters for ensuring that the land is in the correct state ahead of the documentation making its way to the lender and professionals for looking after the foreclosure. All such activities and more would be costing the company much money that Mortgage Outsourcing companies of good reputation would be saving for the company.
3) Besides completing the procedure in record time, clients and lenders are having the guarantee that the work quality which they would be getting is exceptional, to make the lending corporation have an enhanced reputation amongst clients. On a firm dedicating its hours and reserves in reporting on the client mortgage request, they would be spending time which they could have used for additional business in the process. The work distribution amongst diverse players guarantees that a firm can serve many clients in a speedier and much more efficient way. In situations in which the lenders take on all of the work themselves, mistakes take place which are able to be avoided if Mortgage outsourcing companies had been used.
Mortgage outsourcing companies are crucial business partners to have for all mortgage lenders irrespective of being small / medium sized, as they look after all facets which would be expensive and lengthy for them.