What Difference Does a Few Years Make?

For those that are young enough not to clearly remember the early 70's a quick trip down memory lane can serve an important purpose...it demonstrates what a difference a few years can make and why it is important to find passive sources of income early in life.

Bill Downey, an expert in commodities, recently published a quick spotlight that focused on prices as of August 15, 1971...just a few days short of 29 years from today.

Average cost of a new house was $25,250 versus $190,000 today (from a high of over $260,000 just two years ago). If you had purchased ten average priced BRAND NEW homes (with a mortgage payment of less than $275 each!), rented them out and allowed the mortgage to cover the expenses, today you would hold nearly $2 million dollars of real estate free and clear...and still be able to collect rents for as long as desired!

Average annual income was $10,600 versus $38,000 today. Notice, earning power has not kept pace with inflation. In fact, experts agree the average worker has lost purchasing power each and every year for nearly 30 years.

Average monthly rent $150 versus $820 today. Of course, rents for brand new homes would have been higher but imagine, even with a "high" mortgage of $275 for each house, you would still generate more monthly income from ten houses than the average employee working full-time...before paying off the mortgages!

Those of you who are older, take just a few minutes to imagine how different your life would be today if you had purchased a few average little homes 29 years ago. If you don't have at least 2 million dollars sitting safely in a retirement account while continuing to generate a monthly income, ask yourself why? On the other hand, those of you who are young should consider this...the United States entered a period of high inflation and rapidly escalating prices in the late 70's and early 80's yet it dwarfs the amount of spending taking place in the past six months of the current economic decline.

Money creation expands the supply of money and eventually leads to inflationary pressures - to date, that has been adjusted and dealt with but experts agree, the amount of new money creation currently in existence is unlike any in the history of the United States. If you make one investment in life then simply allow it to pay for itself, it could easily create a retirement income or source of revenue for you and your children well into the future....even as unemployment and actual wages shrink.

Anyone that had the foresight to invest in real estate during the early 70's would enjoy an additional $5,000 to $6,000 per month while having access to nearly $2 million dollars in their real estate portfolio. Instead, most Americans trusted their hard earned dollars to 401k accounts, savings bonds and other "trusted" sources that have left them high and dry when they needed it most. Here is a simple recipe for success...buy now, allow it to pay for itself and forget you even own it then reap the rewards in your old age. It's a time tested method that has led millions of average Americans just like you down the road to wealth. Consider this...the federal deficit is an estimated 2 Trillion for this year alone...with trillion dollar deficits projected for the next decade!

See you at the top!


Chris McLaughlin
http://www.shortsalesriches.com

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Is There Light At The End Of The Tunnel?

Is the end of recession is in sight?

According to the Blue Chip Economic Indicators survey of private economists, about 90% of the respondents believe the recession would end by the end of the third quarter of this year. However, economists were not so sure about the speed and timing of economic growth. Recent data from the government shows that economic output contracted at 1% in the second quarter after a drop of 6.4% in the first quarter. "Debate now centers on the speed, strength and durability of the recovery," the survey said.

Over 66% of the respondents said they expect the economy to go through a "U-shaped" recovery, while 17% said the economy would grow for some time only to falter again, before the long-term growth sets in. The second half of 2009 will see some economic growth on account of inventory liquidation, improvement in consumer spending, and investments by individuals. The survey respondents expressed pessimism on employment outlook. About 70% said the jobless rate will not drop below 7% until the second half of 2012 or later.

Bad loans continue to threaten the financial system

A report released by the Congressional Oversight Panel, which monitors the $700 billion bailout of the financial sector, says that toxic loans threaten to de-stabilize the financial sector. "If the economy worsens...then defaults will rise and the troubled assets will continue to deteriorate in value," the report says. "If the losses are severe enough, some financial institutions may be forced to cease operations." The panel, which comprises 5 members, is chaired by Harvard University Professor Elizabeth Warren.

The report says many of the Obama administration's efforts towards ensuring financial stability - such as infusion of new capital for banks, scrutiny of capital ratios, and "stress-testing" of large financial firms - are working. "These steps have ... allowed the banks to take significant losses while building reserves," the panel wrote in the draft report. "Nonetheless, financial stability remains at risk if the underlying problem of toxic assets remains unresolved." The report refers to the dangers faced by small and regional banks which are particularly vulnerable. Regional and smaller banks hold greater numbers of commercial real estate loans, "which pose a potential threat of high defaults." The report says the capital adequacy of small banks to bear losses hasn't been tested by the government.

Vayron Mirabal
A. B. Home Buyers LLC
Free Seminar: Tire Of Low CDs Rate?

Government Mulls Creating a "Bad" Bank To Hold Toxic Mortgage Loans

The Obama administration proposes to transfer delinquent mortgage loans from Fannie Mae and Freddie Mac to a new financial institution which will have the responsibility of going behind bad loans. The transfer will enhance the health of Fannie Mae and Freddie Mac. The government has pledged more than $1.5 trillion, including $85 billion in direct aid, to keep the mortgage market working through Fannie Mae and Freddie Mac. "It should come as no surprise that the administration is thinking through" significant changes to Fannie Mae and Freddie Mac, said Andrew Williams, a Treasury Department spokesman. "We are in the preliminary stage of the process, the systematic development of options has not taken place, and no decisions have been made."

The administration will make a final decision on the idea after discussions involving the White House, the Treasury, the Department of Housing and Urban Development and the Federal Housing Finance Agency. "The government's efforts so far have taken the risk out of those two firms," said Treasury Secretary Timothy Geithner. "The only question that remains is what form, what structure they ultimately will take."

Yeap! me again: Vayron Mirabal

First-time home buyers to have quicker access to tax credit

President Obama's economic stimulus plan, introduced in February, included a tax credit to the extent of $8,000 for first-time home buyers. However, home buyers could receive the tax credit from the Internal Revenue Service (IRS) only after the tax season or filing an amended return (which costs money and time). In an effort to incentivize home buyers, the Department of Housing and Urban Development has unveiled a policy change which will provide the tax credit up-front. According to the new policy, borrowers who avail mortgages from Federal Housing Administration (FHA) approved lenders can get advances from lenders in order to meet costs associated with home purchase.




This will enable borrowers to receive the tax credit in advance, so they don't have to wait to get the money from the IRS. However, the advance from the lender cannot be used for the 3.5% down payment that borrowers have to make for FHA loans. A typical loan has $3,000 to $4,000 in closing costs, title insurance, and other fees. The advance can be used by borrowers for meeting such costs. Keith Gumbinger of HSH.com, a publisher of mortgage and consumer loan information, says the program "could just grease the wheels for a couple more people to get into FHA." Shaun Donovan, Secretary of Housing and Urban Development, said, "What we're doing today will not only help these families to purchase their first home but will present an enormous benefit for communities struggling to deal with an oversupply of housing."

By : Vayron Mirabal
Source: Short sales Riches

My mind wondering.....Everything that occurs in life serves.

How it serves may well be beyond your grasp. You may not see it that way at all. I know I didn’t until now.

Some of you know what We are going thru, and it being crazy the last few months, some of you will like to kill me..lol, some are understanding and some of you will just hug me once you see me. I do appreciated you all. I read an article and it got stuck in my head.

When a beautiful rose wilts and withers, it goes to the ground and helps to nourish what will grow in its place the next year. You can mourn the passing of the rose, or you can think about the benefits the rose gave and gives and what further gifts will come from its existence and its seeming demise. It is very possible that this one rose will contribute to dozens more..

It is undeniable that a rose, every rose, no matter how beautiful, falls to the ground. It has its span, and a beautiful span it is. If roses lasted forever, they would not be roses. Is not their temporariness part of their charm? Are you going to choose a long-lasting artificial rose when there is a fresh one to pluck?. Why mourn, beloveds, the seeming end of the life cycle of a rose?

Is it not the ending of a rose as beautiful as the beginning? A beautiful rose is laid to rest, and essence of the rose continues. Rose-ness is forever. Why mourn the passing of that which is forever?

In Eternity, what is there to mourn? Only a certain point of view. Only attachment gives you cause for mourning. Love without attachment, beloveds. Love and appreciate and enjoy the rose while it blooms. When the rose ceases blooming, love it just the same. The most beautiful rose can only be a reflection of the love you hold it in.

Why mourn anything? Why mourn love, beloveds?

Love is more than a hop, skip, and jump. Love is a kind of rose. Love gets passed on and meets itself coming and going. Love is eternal. No matter how fragmented you may think love is, it is eternal. Love is definitely more than a passing fancy.

Look outside your window right now. Perhaps you see a fruit tree in bloom. Tomorrow the wind may sweep all the blossoms to the ground. In another cycle, a last-minute snow may cover all of the straggling blossoms. What does it matter? The tree blossomed. The blossoms were. The blossoms slid into your heart. Have they left your heart?

The blossoms were like a kiss from the Universe. Would you regret a kiss from the Universe? Would you rue a blossoming tree because it will not stay as it was? You were given a gift. Love the gift. Love the gift while you have it. Treasure it even when it is no longer apparent and let it go. The gift made a mark in your heart, and that mark is indelible.

Does it make no sense to you at all that a rose and blossoms bloom and do not stay blooming? Isn’t that what life is filled of, beloveds? Life is filled with roses and blossoms and promises that come true. They have been given, and they were given to you. Is this not cause for rejoicing?

Something is yours for a moment in Earth-terms. And what a moment it is! It is not at all that something is taken from you, beloveds. It was yours for a short-time only. Its brevity is not a secret kept from you. It is not a surprise. The very brevity is part of the gift, will you agree?

Make sure to spend more time with those loves one, Family & true friends are here but not for long.
I wish wealth, health, happines, & blessing on everyone of you.

Loan Modification Part3

PART 1

PART 2

REMEMBER:

STEP 1

Make sure to know were you are with your finances. Determine your monthly income, get all your bills together and see how much you are paying and where you can cut costs. Ask a NON-PROFIT Counseling service to help you put together a financial sheet. Get the counselor to help you negotiate with your lender. To find a non-profit counseling service the Consumer Credit Counseling is a good place to start.

STEP 2

Contact your lender. Get the Loss Mitigation Department on the line and explain your situation & your possible solutions.

STEP 3

Have answers ready for the lenders questions. Have a proposal of how you will repay the loan. You are better off submitting an initial proposal. It will open the door.

STEP 4

If your hard ship is temporary, ask the lender for forbearance, or postponement of payments, for a couple of months. Make sure you get your finances in order.

STEP 5

If your situation is due to an adjustable rate, that have reset and you can not meet the higher monthly payments, request to have your rate fixed. Show them that you can comfortably pay a fixed rate mortgage.

Loan Modification Part 2

Ok, so what is a Loan Modification (Loan Mod as know in the industry)?

A loan modification is much like a mortgage refinance in that the objective is to find you a more affordable mortgage payment for your financial situation. Or a permanent change in one or more of the terms of a mortgagors loan, it allows the loan to be reinstated, so the home owner can afford it.

TIP:

Hire an attorney firm working in this kind of situations.

How do I start the Process of a loan modification?

You can hire a Loan modification company, attorney, realtor, mortgage broker, do research online. But I think the first thing to do is to contact your mortgage company, it is amazing to me that there are thousands of delinquent borrowers who never have to courage to just call and talk to their lender, you will be surprise of the result if you do so.

Do not spend too much time with the customer service rep, or give them explanation, ask for the Loss Mitigation Department. Once on the phone with the Loss Mitigation Rep, get their full name, position title, get their direct number, this will help you on your follow up. Don’t be too aggressive, be friendly but firm, don’t give them excuses come up with some ideas of how you can repay the loan back, have a plan even if you think it will not work, it show that you want to solve the situation.

TIP:

Keep a log of all phone calls, date, promises, etc…You need to over-communicate to them that the problem is serious and needs immediate attention.

They will ask you some personal but basic questions. Be HONEST, you want to be frank in your assessment of your financial situation. If you are the eternal optimist now is not the time to be upbeat about your financial wherewithal. Within the bounds of honesty you must show that you are in a bad financial place, but you could afford to keep your home. You most prove that a modification is going to improve your situation to a point where you will be an acceptable risk for them.

WHATS NEXT

If your situation qualifies for a loan modification you will be receiving an information package with a worksheet to calculate your monthly expenses. Keep in mind that most lenders have not set-up processes to handle the high volume of loan modification. This can lead to request being bounced around or even lost until it is too late to avoid foreclosure.

Today there is a lot of pressure for banks to modify loan terms and keep borrowers in their home. If you look at the current housing market and the declining home values, lenders are finding that performing loan modifications is more financially attractive than the expenses of foreclosure.

What does the bank need from you?

The bank is in business to make money regardless of any situation, it is your objective in presenting your loan modification request is to show that it is in the best interest of the bank to modify your loan.

• You have had a material change in your financial circumstances
• You have mad every effort to make your mortgage payments
• You have been cooperative and responsive in working with them
• You are not in anyway purposefully defaulting to get a loan modification
• You are willing to be open, honest, and provide all necessary documentation
• You own and occupied the property as a primary residence
• Not filed bankruptcy
• Paid stub, bank statement, hard ship letter
• If using an attorney make sure he sent all documentation need it on his letter head, mortgage lenders will usually give more credit to letters from a law business than from a regular home owner or any other regular firm.

TO BE CONTINUE.....

Loan Modification Part 1

To do, or not to do? To pay or not to pay? Now that’s the question?

Some people are going to hate me cause of this article, but it have to be done enough is enough!

After I had finish writing this I emailed my wife, to get her opinion, she asks me why am I writing this? I got a little upset and reply, “Why am I writing this? You act like you don’t know me? HELLOOOOO! It look like everyone is an expert on loan modification now days, they even have books to prove it, and a small fees to teach you how they do it. I’m sick and tire of decent people getting rid off by this MOTHER FLOWERS.” Of course she laugh, my question to her was, if this people need help why can they get it for free?

This topic came up in our last seminar and it got me really, really f@#$% upset. Long story. It took some time for me to come down and start writing this. My company only done a few of this to help a few home owners not to lose they homes, it has being my experience that the bank are willing to work something out, isn’t that the purpose of a loan modification?

When I first started researching to help our clients there was not one mortgage or real estate professional that was offering loan modifications assistants for free. I did found an eBook entitled “The Mortgage Relief Formula” this book walks you through how to modify your loan, saving costs and headaches of false promises of loan modification companies. I read the book and was highly impressed (which it is hard to do) with some of the ideas expressed in it. I am not an affiliate of the book; it is a great tool to use.

Now that the subprime snake oil is gone, it looks like the new oil of choice is loan modifications. Baster stop charging people for this…sorry is me getting upset again.

Ok, there are good hearted people out there that are doing the right thing and helping people out even though they charge a fee, just be careful and research the heck of the company and individual.

Loan Modifications are beginning to be a very trendy financial tool in the U.S. This is so far a few explanations: Home prices are dropping, so this is causing people to see themselves in situations were the value of they home are lower than what they still owe. Yet many home owners have found themselves in difficulty because they have chosen loan modification companies with no real expertise. Remember this just starting happening about 2-3 years ago and loan modification didn’t actually came to place into late 2008 or earlier 2009. How much experience will anyone have on this field?

Most of these companies are composed by the same mortgage brokers that gave them the crazy home mortgages that putting were they are today.

Tax credit lures nearly half of all first-time buyers

According to a survey conducted by Harris Interactive on behalf of Zillow.com, 18% of prospective first-time homebuyers said extending the credit from Dec. 1, 2009 to Nov. 30, 2010 would be the “primary influence” in their decision to purchase a home. An additional 25% said it would be a “significant influence,” 27% said it would have “some influence,” and 31% said it would have “no influence.” Zillow projects 1.86m home buyers stand to take advantage of the program if it is extended, and if all potential buyers took the full tax credit, extending the program could cost $14.86bn.

Zillow.com chief economist Stan Humphries said of all home buyers expected under the 12-month extension through 2010, only one in five home buyers will enter the market specifically because of the extended tax credit. In other words, 334,000 mortgages will open because of the tax credit extension. “While 334,000 may seem like a small number relative to the total number of home buyers who would claim the credit, their addition to the market next year could make the difference between a robust annual increase in home sales next year and a flat or negative change in home sales relative to this year,” Humphries said.