Maximizing Credit Scores

Borrowing money today requires impressing an increasingly hard-to-please crowd. With creditors of all kinds more cautious than ever, you need an A+ application to land the best terms — and that means an A+ credit score, the number lenders use to judge your risk of default.  If your credit get hits you could be forced to take out a bad credit mortgage that carries a much higher interest rate.  Jason Cardiff businesses have always operted more effectively by leveraging with credit.

The most commonly used credit scoring system, called FICO, rates people from a very risky 300 to a pristine 850. And right now we’re in the middle of a credit score crunch: “You need a 750 or better today to have the same treatment you got with a 700 two years ago,” says John Ulzheimer, president of consumer education at Credit.com.

Know Your Credit Score. You have three FICO scores, based on your credit reports at the three credit bureaus: Experian, Equifax, and TransUnion. The numbers tend to be in the same ballpark, so pony up $16 to get one representative score at myfico.com. You can get an estimate free at Creditkarma.com. But the FICO score gives you a better sense of what lenders see. 

Look for Mistakes. Your scores are only as good as the information they’re based on. And a third of people who’ve pulled their reports have found errors, according to a Zogby poll. That’s good reason to read your report.

When you buy your FICO score, you’ll get a copy of the report it was based on. Get gratis histories from the other bureaus via annualcreditreport.com (you’re entitled to one free from each bureau every 12 months).

Spot an error? Request a correction, following the instructions on the bureau’s website. Let’s say the size of a credit line was misstated or an account was mistakenly marked delinquent. Getting the error fixed could raise your score as much as 200 points, says Ulzheimer, who has also worked for Equifax and FICO.

Never, Ever Be Late. As you’ll see in the pie chart on the right, the biggest chunk of your credit score comes from your payment history. Just one late payment can shave 100 points off a 750-plus credit score, says Ulzheimer. Lenders can’t tattle on you to the bureaus until you’re 30 days past due, adds credit expert Gerri Detweiler. But don’t risk it. For all your bills, enter recurring

Missed a payment? Get back on track within the next 30 days, and you should “get back the lion’s share” of points lost, Ulzheimer says. More than 90 days late? The damage can stick for years. If it was a one-off lapse, call your issuer and plea for a good-will adjustment to your credit report. (It’s a long shot.)

Along the same lines, 10% is based on “new credit,” but the effects of a new application can be positive or negative, depending on your history. Read the original article online.>  Keeping Credit Scores High

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Orange County Foreclosures Drop

Orange County home foreclosures declined significantly this spring, with some economists and home financing analysts speculating that most risky mortgage loans have worked their way through the system and the housing market may bottom by year end.   However, home financing advisor and   Cardiff said in a recent article that “We are not out of the woods until the neg ams and exotic mortgages disappear.  Banks seized 42 properties in the second quarter in Santa Ana’s 92701, which had the county’s highest ratio of foreclosures to existing homes at 8 per 1,000. Yet the 42 foreclosures represented a 65 % drop from a year ago.   More examples: Buena Park’s 90620 saw foreclosures drop 57 % to 29 homes seized. In Costa Mesa’s 92627 they dropped 37 % to 22, and in Ladera Ranch’s 92694, foreclosures dropped 40 % to 30.  Yet experts say government intervention has played a role in the declines. Read the original Foreclosures Drop in Orange County

Jason Cardiff Marketing Tips for SEO

Read the latest Make a Statement with Headlines

What do you want your website visitors and readers to do?  Read the Original 3 Direct Marketing Tips for SEO

Website Optimization and Testing

Online testing is all the rage right now. At a recent conference I asked the audience how many people worked for companies that do online testing (A/B, multivariate, or behavioral targeting); roughly 5 to 10 percent of the people raised their hands. That is about twice as many people who would have said yes 12 months ago. Then I asked how many people work for companies that plan to start a testing program over the next 12 months and nearly everyone raised their hand.  On-site testing makes sense. It focuses on making incremental site performance improvements in a very measureable way. It is a great way to increase revenue or profit and a great way to justify budgets managed by Web teams. While more people are getting comfortable with testing, it is often treated as a whole new approach to marketing. But testing is not new. Direct marketers have been performing tests offline for years.

Think about the idea of someone doing direct mail and testing 15 different versions of an envelope to increase the chance that you open that piece of mail in your mailbox. Direct marketers try all sorts of different paper and offers on the outside. They test making the envelope look formal, making it look like it is hand addressed, or adding an actual stamp so it doesn’t look like it’s been stamped by a meter. And that is just the envelope.  Direct marketers test all sorts of versions of the content as well copy length, price points, and offers. We have all also seen it in catalogs we get as well. Is it better to offer a 10 percent discount, a free add-on, or free shipping? Which offer will return the greatest revenue and ultimately profit? Marketers have been testing these things for years to maximize their conversion rates.

Let’s take a look at the definition of direct marketing. I found several, but the definition on Wikipedia said it best:

Direct marketing is a sub-discipline and type of marketing. There are two main definitional characteristics which distinguish it from other types of marketing. The first is that it attempts to send its messages directly to consumers, without the use of intervening media. This involves commercial communication (direct mail, e-mail, telemarketing) with consumers or businesses, usually unsolicited. The second characteristic is that it is focused on driving a specific “call-to-action.” This aspect of direct marketing involves an emphasis on trackable, measurable positive (but not negative) responses from consumers (known simply as “response” in the industry) regardless of medium.

Let’s break down this definition a bit, looking at the two key elements:

Delivering Messages Directly to the Consumer

Online, more companies are tuning their messages or Web sites based on a visitor’s profile, previous activities, or anything else known about that person. While many sites are still “one size fits all,” more companies are getting smarter about the way they communicate with Web visitors. Think of some customized experiences you see at Amazon or timely calls to actions you see on other sites when you have been there before.

Driving a Specific Call to Action

This is a big one. What is it we want people to do on the site? Realistically there are a number of things that could define success for any given Web site. When you start to segment your audience, the number of things we want visitors to do on the site can get narrowed down. Your site can be more successful if you narrow down those choices based on your visitors and really look to drive interest in those activities. Think of a banking site when a visitor lands on the home page. If it knows that a visitor has previously logged onto its Web site during a previous visit, it should not dedicate 50 percent of the homepage to getting the visitor to sign up for online banking. It isn’t applicable and she won’t respond. Rather, the visitor may already have an account and the banking site may want to inform her of an add-on service or helpful piece of information about it. Just as the online banking promo might not be applicable to someone who is not a customer, the add-on service promo might not be applicable either. Because the message isn’t targeted, it won’t be successful. More important, the banking site is missing an opportunity to give each audience segment something that makes sense to it. Go back to the definition of direct marketing: the banking site is not giving the audience an applicable call to action to respond to, and thereby, not advancing the visitor as a customer.

But again just like the envelope examples above, the beauty of direct marketing is the idea of testing what works and what doesn’t in order to maximize ROI (define) and profit. Read the original Click Z article online.

Voice Broadcasting for Increasing Leads and Sales

In a recent article, Christine Harrell writes about the benefits that voice broadcasting can have for boosting sales and leads.  

Author is a writer for Unix USA which specializes in fax broadcasting and generating sales leads. For additional information about these services you can visit http://www.unixusa.net.  Article Source: http://EzineArticles.com/?expert=Christine_Harrell

10 Home Loan Tips for 1st Time Home Buyers

After years of declining home values, there are many new affordable opportunities for first time homebuyers to finance a new home.  If you are looking to make the move from a rented apartment to a home of your own, you are not alone. The convergence of low home prices, still-low mortgage rates and appealing tax incentives makes 2009 a good time to buy a home for many people. If you are looking to buy, here is what you need to know:

Home prices are low. Home prices dropped at a record annual pace of 18.7% this past March. That means discerning buyers can find real bargains. Mortgage interest rates are still good. While interest rates have risen from their historic lows earlier this year, they still are appealing. In mid-June, rates hovered around 5.70% for a 30-year fixed-rate mortgage.

Tax credits will help. 1^st time homebuyers can get money back from tax credits implemented as part of the 2009 American Recovery and Reinvestment Act. An $8,000 credit is available to first-time buyers for homes purchased before December 1, 2009. Home financing legislators are considering increasing the credit to $15,000 and expanding it to include other home buyers

Credit scores matter. While houses are widely available, home financing is limited to those with good credit. Credit scores range from 300 to 850, with the median U.S. credit score about 725. A score below 680 usually results in a higher interest rate or denial of credit. Check your credit score before you make any home buying decisions. If your score is lagging, wait a few months and work to improve the score by paying every bill on time, paying down as much debt as possible and disputing any erroneous information on your report. Note that it can pay to do your homework researching FHA mortgage rates and lenders — credit scores do not decline if multiple similar credit report requests are submitted within a close time period (usually a few weeks).

You must have savings. A down payment is essential today. Ideally, you can put down 20% of the purchase price (see #7 regarding PMI). If not, talk to your mortgage lender about your options.  Do not stretch too far. Standard underwriting guidelines call for keeping housing expenses below 35% of total income. Breathing room in your budget will help you keep your home even if something unplanned does occur. If you are uncertain, wait to buy.

Understand private mortgage insurance (PMI). Home mortgages with less than 20% home equity (which means a 20% down payment for those purchasing a home) require PMI in case the owner defaults on the home loan. When the home owner pays a conventional home mortgage down to 80% or less of the home’s value, the home owner can request the home lender to cancel the PMI and then be able to stop paying the additional amount. Meanwhile, PMI is tax-deductible, at least through 2010.

Know the real costs of buying. The principal and interest on a mortgage payment are only the beginning of home-related costs. Escrow payments - the funds withdrawn to cover home insurance and taxes - and PMI can add a few hundred dollars per month to a mortgage payment. In addition, home owners must pay for repairs and maintenance. A rule of thumb is to budget 1% of the home’s purchase price per year for upkeep.

Know whether you can pay off early. If the mortgage loan has a prepayment penalty, borrowers face hefty charges if they pay it off early. This provision also can apply to future mortgage refinancing, so be forewarned. Review Truth in Lending disclosures to find out.

Buyer beware. Some of the lowest prices on homes today are “fixer-uppers” or homes sold “as is” because of foreclosure. Invest in a home inspection before agreeing to purchase any home. The inspection will inform you of any faults in the home and help you determine the approximate cost to remedy those problems.

For many Americans, the time is right to take advantage of today’s excellent home buying opportunities. If you are among

Jobless Rate in Western US States Rises Above 10 Percent

Over the years the unemployment rate has been a key indicator for measuring the US economy.  However theses numbers are easily scewed and remember self employed people who are out of work are not factored into this number.

The AP reported unemployment rate in the West jumped over 10% last month, the first time that regional threshold has been broken in about 25 years. On the state level, eight set record-highs and only two Nebraska and Vermont did not report increases.

The Labor Department reported Friday that 48 states and the District of Columbia saw employment conditions deteriorate last month. The fallout from the longest recession since World War II, was the worst in Michigan as automakers cut tens of thousands of jobs. Its unemployment rate rose to 14.1%.

The West region reported the highest jobless rate at 10.1%. The last time any region had a rate of at least 10% was September 1983, when the country was emerging from a severe recession.  The region is home to California, where the jobless rate rose to a record 11.5 % last month, Nevada, where it’s a record 11.3%, and other states that have been slammed when the housing boom went bust snatching jobs and wealth.  

Short Sided Mortgage Reform Bill

Freddie Mac’s most recent mortgage market survey shows that a thirty-year home loan with fixed interest rates that dropped to 4.80% this week.  At the same time, congress is putting their finishing touches on HR 1728, the Mortgage Reform and Anti-Predatory Lending Act of 2009 that claims to address several aspects of the mortgaged origination, loan securitization and servicing process. The mortgage bill was debated Thursday at a House Financial Services Committee hearing.  HR 1728 would require loan officers to determine a borrower’s ability to pay back a home loan, and only extend mortgage refinancing when there is a “net tangible benefit” to the borrower. Loan officers would no longer be able to collect yield-spread premiums or other compensation that many critics say served as incentives to steer borrowers into higher risk home mortgages that cost the consumer higher fees and terms that benefit the mortgage lender.

Last week, Fed Chief, Ben Bernanke talked about the need for government regulation to protect homeowners and American consumers. The central bank had approved new home financing regulations aimed at curbing abuses on home mortgages. The mortgage lending revisions would restrict mortgage lenders from offering home mortgages without proof of a borrower’s income and would require lenders to make sure risky borrowers set aside money to pay for taxes and insurance.  As FHA loan market-share grows, so does the risk for defaults, foreclosures and more “egg on the face” for mortgage companies that originate FHA mortgage loans.

The mortgage reform bill would also drop the trigger for mortgages to be considered “high cost” and subject to the more stringent requirements of the Home Ownership and Equity Protection Act (HOEPA). Mortgage lending companies remain adamant that home loans subjected to HOEPA are difficult or impossible to securitize and sell to secondary-market investors.  To encourage responsible lending, the bill would also create a limited “safe harbor” from lawsuits for “qualified mortgages” prime, fully documented, thirty-year mortgage loans. Those mortgages would be exempt from some of the bill’s requirements.  I find that “exemption” very interesting.  Let me tell you this smells like a short-sided mess that enables the politicians to pat themselves on the back while enhancing their image as “tough” on mortgage crooks.  From a distance it looks great, but they appear to be tacking this bill on poor legislation that lacks the foundation we need for fair and responsible lending.  - Commentary written by

HUD Updates FHA Mortgage Letter and Cracks Down on Lenders

The Dept. of Housing and Urban Development recently released an important FHA Mortgagee Letter that is imperative for mortgage brokers, lenders and finance companies that plan to see FHA loans in their future.  In an effort to protect the public trust and the FHA Insurance Fund, HUD is enforcing that mortgagees are accountable for their lending practices. FHA expects each mortgagee to exercise the same level of care in originating, underwriting and servicing an FHA insured home loan as it would for home financing in which the mortgagee would be entirely dependent on the property as security to protect its investment.  When a mortgagee fails to comply with HUD’s policies and procedures, HUD will take the appropriate action.  For example, brokers or lenders that materially violate FHA program statutes, regulations and handbook requirements may be referred to the Mortgagee Review Board for appropriate sanctions, which may include termination of mortgagee approval.

HUD believes that many lenders have not lived up to the ethic codes and high standards required with FHA underwriting guidelines. HUD believes that many FHA lenders have not lived up to the ethic codes and high standards required with FHA underwriting guidelines.  That could become a problem because home mortgages that do not meet FHA mortgage lending standards to the letter are likely to result in foreclosure or a home loan default that cause FHA insurance to rise. Assistant Secretary for Housing, Brian D. Montgomery recommends that if you have questions regarding this Mortgagee Letter, please call the FHA Resource Center at 1-800-CALL-FHA (1-800-225-5342).  Read the complete FHA lending article > FHA Mortgage Loans Update with New HUD Rules for Lenders.

Does Credit Report Study by FICO Consider the High Cost Regions?

The father company that created credit scores, FICO released new results of a credit line study measuring the breadth of credit card limit reductions as well as the subsequent impact to consumer’s FICO credit scores. The study is the first of its kind since credit card issuers began to heavily ramp up their credit limit reduction activity in early 2008. Let’s consider some note-worthy points of the credit report study by FICO: 16% of the U.S population had their overall available revolving credit reduced between April and October of 2008. With credit bureau databases holding 200+ million consumer credit files, this would seem to indicate that at least 32 million cardholders lost some of their credit limits during the study timeframe of April 2008 through October 2008.

Bad credit mortgage options remained non-existent for struggling homeowners seeking home refinancing with fixed rates and lower loan payments.  Millions of homeowners have been turned down by mortgage lenders across the country, because of low credit scores, delinquent mortgages, negative equity or employment instability.  Some homeowners may qualify for loan modification plans if they happen to have their mortgage collateralized by Fannie Mae and Freddie Mac.  However, only conforming home mortgages qualify for the federal mortgage modification program.  Jumbo home loans do not qualify for a federal or FHA mortgage that ensures foreclosure prevention through a loan workout or mortgage refinance loan.

According to FICO, “Credit utilization rate has proven to be extremely predictive of future repayment risk, so it is often an important factor in a consumer’s credit score.  Credit holding companies started taking a pro-active approach to borrowers who access a significant proportion of their credit available because they are much more likely to default on their credit card terms with debt settlement, credit counseling or bankruptcy. However people maintaining lower credit utilization levels whose credit cards and home equity lines of credit are not maxed out are much more likely to continue making their credit debt payments as agreed.

5 % of the population, or 10 million consumers, saw their limits reduced because of some sort of risky credit activity including late payments, accounts in collections, or a negative public record added on their credit reports. The credit score decrease is likely due in part to an increased credit utilization percentage, while the score increase is likely due to the reduction of credit card balances. News reports also indicated that the home loan defaults and credit card debt negotiations have caused the credit repair industry to explode.

Read the complete credit report article > Thousands of Credit Card Consumers Report Credit Line Reductions in 2008.

Outside of the Advertisement Thought

Why should it be accepted that the only way to generate revenue for your site is to bombard your audience with ads that your audience eventually ignores?  Far too often, publishers have come to the conclusion that making money has to come at the cost of compromising user experience. The crafty publisher has realized this and embraced new forms of monetizing their traffic that their audience actually welcomes.

Free offers such as free magazines subscriptions, white papers, free downloads for trials for software, podcasts and webinars have proven to be an extremely lucrative way for publishers to not only generate an incremental revenue stream, but also reward their visitors for their continued support.  Tapping into human nature and the impulse of requesting something that is free has turned the traditional revenue generation model on its head for many publishers.

Gone are the days where you constantly have to rely on selling your audience something or sending them to a site that’s only going to ask for their credit card shortly after visiting. Think about it…giving your audience a free subscription to Oracle Magazine or sending them over to Amazon to buy a book on Oracle. What do you think would perform better?

The conversion rates on free products are statistically off the charts in comparison to traditional commerce/transactional based affiliate programs. While many publishers realize this to be the case, they struggle to find ways to monetize free content efficiently. Read the full article> Article was written by David Fortino for NetLine.  Get more financing and investing tips at tips online.

Steve Forbes Hammers Obama Financial Plan

Economic Critics Blast Obama

Bill Plante reports on Obama’s swift action on the economy during his first fifty days gets pans from detractors, Harry Smith talks to Steve Forbes, Peter Morici and the Financial Times’ Chrystia Freeland.

Keeping the Feds Out of the Banking Business

Take a look at this Video from Forbes reinforcing and emphasizeding that the US government needs to oavoid nationalizing banks.

Steve Forbes Video Keep Feds Out of Banking Business

Chairman, CEO of Forbes and Forbes magazine editor-in-chief Steve Forbes says the government should stay out of the banking business.

Fed Chief Considers Lessons of First Great Depression for Capitalism Survival

Watch the Federal Reserve Chief, Ben Bernanke as he reviews the mistakes made in the First Great Depression. Bernanke takes a question from Arnaud de Borchgrave about whether capitalism has failed.  Borchgrave asks the Fed Chief if they have become a casino, divorced from productive activity with social utility.

Fed Chief Bernanke Considers the Great Depression

Bernanke analyzes the Great Depression, but does not criticize the casino aspects of Credit Default Swaps that led to the current situation. It seems obvious that the financial sector is a large machine with nothing real to invest in, as the real economy has been destroyed or off shored so the financial class are left to invent artificial ‘innovations’ aka derivatives that sucker in investors to invest in things of no real productive value, aka financial weapons of mass destruction. Watch more videos on

Is the FHA Planning to Penalize Borrowers?

When it was passed last year as part of the FHA reform package, the Hope for Homeowners program was a federal mortgage refinancing plan designed to help some 400,000 people who now have toxic loans. In fact, the program has been a complete bust. As of January 31st, HUD figures show that there have been 465 Hope for Homeowners applications — and not one approval from the government.

Hope for Homeowners has gone nowhere because it’s complex. It requires lenders to take a loss and borrowers to share profits and make big payments to Uncle Sam. While the intention is good, the program is just too complex to succeed.

Now we find an effort to revamp the Hope for Homeowners program and the betting here is that few FHA loans will result.

Under H.R. 1106: The Helping Families Save Their Homes Act of 2009, the program will become MORE restrictive if the legislation passes as it is now written. Huh? How can that help anyone?

Once again, the intention is good but the result is doomed to failure. For instance, the legislation requires that a borrower does not “intentionally defaulted on the existing FHA home loans or mortgages.”

Translation: If you’re stuck in an over-priced house you can’t buy a replacement home and then default on house #1. This seems logical, except that when someone applies to buy that second home they have not yet defaulted on the first house. If default comes at all, it will come later.

Here’s another one: You can’t get a Hope for Homeowners loan if you have “knowingly, or willfully and with actual knowledge, furnished material information known to be false for the purpose of obtaining the eligible mortgage to be insured.”

What’s remarkable about this section is that it ought to apply to all loans. The simple solution here is to require that EVERY home loan applications must be fully documented. That’s the case with FHA mortgage applications and one reason the program is successful. If a borrower can’t come up with some tax returns and proof of employment and income why would you give that person several hundred thousand dollars? It makes no sense.

However, my favorite section goes like this:  “BAN ON MILLIONAIRES — The mortgagor shall not have a net worth, as of the date the mortgagor first applies for a mortgage to be insured under the Program under this section, that exceeds $1,000,000.”  I’m not making this up. The home financing bill would actually ban financially-strong borrowers from the program.  Now — just thinking out loud here — wouldn’t it make sense to get borrowers with a net worth of $1 million or more to participate in the program? You know, folks who might pay their bills and, if they don’t, could be sued by the government for any shortfall?

Read the complete article > Should We Ban Millionaire Borrowers?  

Get more

Lower Your Property Tax

Whether you live in Orange County, California, Broward County, Florida, or Detroit Michigan, there is an opportunity nationwide for homeowners to reduce their expenses by making an effort to lower your property taxes. might be facing exorbitant hikes in property taxes. In one of the more extreme cases, residents of West New York, N.J., are fighting a planned 27% bump in their property tax rates.

What gives? Squeezed by foreclosures and falling revenues, many local governments are facing unprecedented budget shortfalls. To fill some of the gap, more municipalities will have to raise property taxes, says Sharon McCabe, associate director of the Graaskamp Center for Real Estate at the University of Wisconsin. While homeowners would have a hard time fighting the local government on such increases (although West New York residents are certainly trying to), there are ways to reduce the impact of the hit. Like most homeowners, your property’s value has most likely fallen off a cliff over the past year. If your assessment is based on a higher valuation from several years ago, it’s probably time to get it reassessed, says Stuart Gabriel, director of the Ziman Center for Real Estate at UCLA. The end result could save you hundreds of dollars a year. However, this move isn’t right for everyone.

If you decide to hire a lawyer or property tax consultant to help you, for example, you could lose much of the savings you’d otherwise reap to their fees. Here are a few things to consider before seeking a reassessment:

Your Town’s Methodology

While some municipalities revalue properties annually, others do so every five years, says McCabe. There’s also wide variation in how towns assess properties. Homeowners should visit their assessor’s office or check their web site for information about when assessments can be done, what period they cover, and how and when homeowners can appeal those decisions.

You Can Do It Yourself

You may get mailed solicitations from realtors or attorneys offering to help lower your property taxes by filing for a reassessment. But most homeowners can manage the appeal process on their own, says Tara-Nicholle Nelson, a real estate broker. Lawyers and consultants typically charge a percentage of your first year’s tax reduction sometimes as much as 50%.

Check for Errors

Mistakes on property assessment records often mean homeowners are taxed at higher rates than they should be. The record might say, for instance, that your lot is one acre when it’s three-quarters of an acre, or your house has four bathrooms when it has three.

Check Out Similar Home Sales

Towns typically make assessments based on market value. But sometimes those figures aren’t very realistic. If you don’t think you can sell your home at the value your town pegs, find out what comparable homes in your area have been selling for, says McCabe.

Read original article written by Lisa Scherzer  

Wave Good Bye to Credit Card Debt

Credit card debt continues to plague our nation. When it considering credit card debt statistics, you can choose to remain on the growing list of compounding interest or you can make some changes that offer new freedom to you and your family.

Read the debt relief article listed below and you will find yourself on the path to becoming debt-free.  Stop paying interest to the finance companies that hold your credit cards and pay off your debts and you can start saving for the future. Read the Debt Relief for Credit Card debt Article >

Get more tips for better financial management at

Why Should I Pay My Neighbor’s Mortgage?

Last week’s long-awaited foreclosure relief effort from the Obama administration touched a nerve among homeowners who didn’t get in over their heads in the borrowing frenzy. Or who are also struggling to make their payments but do not want or expect government help.    Why, they ask, should my taxes be used to help pay my neighbor’s mortgage? 

John Berlau on Obama’s Mortgage Rescue Plan

How will the homeowner bailout affect responsible borrowers such as myself? I purchased my condo two years ago, borrowed what I knew I could afford considering my budget, and am not at risk of foreclosure. It seems unfortunate that we are bailing out those who did not borrow responsibly or did not truly understand their mortgages before signing them. So on top of me not seeing any advantage from the housing bailout, my taxes will most likely increase as well.

— Lars M., Evanston, Ill.  You’re not alone in wondering why your taxes should be used to help your neighbor make their mortgage payment.  The Obama administration’s plan to use $75 billion of tax dollars help some homeowners pay their mortgages touched off a huge backlash. Apart from a flood of mail to the Answer Desk inbox, the outrage was galvanized by CNBC’s Rick Santelli, who covers the commodity markets in Chicago. On Thursday, Santelli gave voice to that outrage in an on-air rant that — among other things — called for a “tea party” this summer to protest the administration’s plan to “subsidize losers’ mortgages.”   It was apparently a rant heard ’round the world — or at least ’round YouTube. On Friday, White House press secretary Robert Gibbs felt the need to respond directly to Santelli’s attack on the Obama’s foreclosure relief plan by noting that many homeowners facing foreclosure won’t be eligible for help, including investors and people who “long ago knew they were in a house they couldn’t afford. Instead, he said, the plan is targeted toward helping people “who aren’t yet in trouble keep from getting in trouble.”  Gibbs also pointed out that millions more Americans will benefit from the government’s comprehensive effort to drive down mortgages rates, allowing homeowners who aren’t in trouble refinance to a better rate and save money.  Preventing foreclosures also pays benefits to anyone who owns a home by slowing — and possibly stopping — the ongoing slide in home prices. Each new foreclosed property — sold at fire sale prices — drives down the value of every other home on the street.  “If you live in a home that’s near one that’s been foreclosed, your home value likely has dropped by about 9 %, which for the average home is about $20,000,” Gibbs told reporters Friday. 

According to the U.S. census, there were about 75 million owner-occupied homes at the end of 2008. By our math, that means that the $75 billion being spent to prevent foreclosures works out to about $1,000 per owner-occupied home. Which means you’re spending $1,000 in taxes to head of the loss of $20,000 on the value of your house. These days, that doesn’t seem like such a bad investment.  Gibbs invited Santelli to the White House to go over the plan and explain why it helps all homeowners.  “I’d be happy to buy him a cup of coffee,” said Gibbs. “Decaf.” If my home is already in the foreclosure process, can the homeowner bailout help? Or is it too late? — Alicia O.  It’s not necessarily too late if you meet the criteria and your mortgage lender is willing to extend a loan modification. Many mortgage lenders have agreed to stop foreclosures already in progress until they have a chance to review them to see if the home can be saved with the help of the new plan.Unfortunately, not everyone is going to be eligible for help.

If you can’t show that you have enough income to cover the revised loan modifications, the plan can’t help.   The main provision of the plan is a series of financial incentives (payments) to lenders who agree to cut your monthly payment. The   The main provision of the plan is a series of financial incentives (payments) to lenders who agree to cut your monthly payment. The two most common ways to do this are to lower your interest rate to the current market rate or to stretch out your payments for 40 years. (You’ll still pay as much; you just get longer to do so.)   So if you live in the home backed by the mortgage you want to change, and if you’re current interest rate is much higher than the market rate (about 5.25% at this writing), you may be a good candidate for a new, more affordable loan. Even if you are already in foreclosure.  The goal is to come up with a monthly payment that amounts to no more than 31% of your monthly income. If, after cutting your rate and stretching out your payments, you still don’t have enough income to meet that 31% threshold, the plan probably won’t work for you.  Aside from the burden of unaffordable monthly payments, many homeowners are carrying a mortgage that’s bigger than their home is worth. In some cases, lenders may be willing to reduce the principal down to the level of your home’s current value. After all, if they foreclose, they’re going to lose that money anyway.  But that’s up the lender or the company “servicing” your mortgage for the investors who own it. The program is entirely voluntary.  Read the original article.

Ben Stein on Cash Really Is King

The night before Dr. Martin Luther King, Jr., was assassinated in Memphis, he gave a memorable, inspiring speech. At its end, he said, “I don’t know what’s going to happen with me now. We’ve got some difficult days ahead….”  Unfortunately, this is true now about the American (and global) economy. I wish I could say I knew what was going to happen in the future. I have learned that I do not. I was not given the gift or the burden of foresight. I thought that our government would not let the bottom fall out. I was wrong. I am sorry.

So given that I do not know the future, what can I tell you that will be useful? Actually, quite a bit.

Cash Really Is King

First, taking the advice of my dear pal Ray Lucia, rock and roll star and investment guru, I can tell you that, no matter what happens, it will be good to have a nice chunk of money in cash or near cash. Yes, I know we may soon have inflation. But if we do, the rates on money market funds will rise. Cash is just a lovely thing to have in almost situation. Cash or near cash offers a level of comfort that even a large portfolio of stocks does not offer.

Taking a cue from my dear pal Phil DeMuth of Conservative Wealth Management, I can tell you that, if you think we are definitely at a bottom, you might be fooled. While Phil’s research tells us that we may be near a bottom by postwar metrics of price, price to earnings, and price to dividends, we may have ( as Phil puts it ) “jumped the tracks of history.”

My own view is that we have been fooled so much in the past 15 months about what real earnings are, what real book value is, that we cannot trust the data given to us. Yes, by current price-earnings measures, stocks look fairly reasonable. But we don’t really know what true earnings are. That is the vicious truth. So if we are in the quicksand of not being able to rely on the data our companies give out, then anything can happen. Yes, we may be at a bottom or near it. Or we may not be anywhere near a bottom.

Anything Can Happen

Just to illustrate, who would have dreamed a few weeks ago that Citi would be in the kind of trouble it is in, even after a $45 BILLION infusion from the federal government? Anything can happen in the treacherous world in which we find ourselves.

Third, taking counsel from my pal Barron Thomas, very possibly the best salesman on the planet, I will tell you a rule of indisputable value in this or any economic situation: WORK.

Barron is in the real estate and private plane businesses. These are both highly impacted by the economic slowdown. How does Barron deal with it? He gets up at 5 a.m. every day and works the phones from 7 a.m. to 7 p.m., goes home, makes notes, and then sleeps well until he starts all over again. And he closes the deals. There are still plenty of people who will make the deal at the right price.

Keep on Working

Next, from yours truly: Work is deeply therapeutic. It makes us feel better. It gives us a much better attitude about ourselves. It makes us feel as if we are worth something. A middle class person who works has a far better self image than a rich person who does not work. Work is a gift, a sacrament, a true blessing. Plus, people who work are generally going to have higher incomes and higher standards of life than people who do not work.

If times are tough, work harder than ever. You will get through the rough patches and learn how strong you really are. Do not seek to avoid work — embrace it.

Then, finally, I will tell you something I do when I feel buffeted by the markets. I dig into the 12-step program that has saved my life for the past 20 years. Using its precepts, I say to myself, “I am powerless over the stock market. It is all up to God. I do the very best I can, and after that, it’s up to God.”

Read the original article> http://finance.yahoo.com/expert/article/yourlife/135453

Jason Cardiff Video Discussing Kelly Media Marketing in 2009

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