What caused the home mortgage rates to sky rocket, causing people being unable to pay their monthly mortgages?
Written by admin on March 7, 2010 – 7:04 pm -The recession was caused by people being unable to pay back their home mortgages because the mortgage rates were too high?
Banks were not getting their money back from home owners, causing a credit crunch, thus they were unable to lend money to big businesses.
Big businesses then had to cut back on expenses and began to lay people off the the thousands.
So what caused the mortgage rates to go up so high that started this financial mess in the first place?
Tags: being, caused, causing, home, monthly, Mortgage, Mortgages, people, Rates, rocket, Their, unable
Posted in Mortgage | 11 Comments »
Liens: What’s the Big Deal About Them?
Written by admin on March 7, 2010 – 7:04 pm -
Lien, in its simplest definition, is the term used to denote any charge or duty imposed against an item or property as security for payment of a debt or some other obligation.
There are certain liens that can complicate your asset protection planning. This is one of the ways that creditors can have a take on your assets. In order to know how a certain lien can affect your asset or property, it is crucial that you have a thorough understanding of the different types of liens available out there.
Liens can either be consensual, statutory or judicial liens.
Consensual liens are those types of liens that are substantiated by a contract between the creditor and the debtor. These are the liens in which you voluntarily consent to whenever you take out a loan or any other advance of credit that you require.
A homebuyer will agree to a bank taking a security interest in a home before a mortgage can be obtained. A consensual lien is also created when a cart buyer opts for car financing available at the car dealer. The car purchased secures the car buyer’s obligation to pay for the property.
Failing to do so may mean that the purchased property will be taken away from him. Examples of consensual liens are mortgages, car loans, and security interests in banks.
Statutory liens meanwhile are those that are ideally occurring in lieu of established statutes or as stated by common law. Non-consensual liens give the creditor the right to repayment security of a debt by imposing a lien on a property or an item once there is a determined relationship between the debtor and the creditor.
Sometimes, creditors make use statutory liens to get at your assets to satisfy a debt by the operation of state or federal laws. Examples of this type of lien include tax liens and mechanic’s liens.
A tax lien is placed upon properties by local, state or federal government as stated in established statutes as security for delinquent taxes, including property and estate taxes.
A mechanic’s lien will arise when a party fails to pay a contractor or mechanic for services rendered or work performed on a certain property or car. This usually occurs when a contractor installs a furnace on a home or a mechanic does some repairs on a car.
Failure of payment for the services rendered will give the contractor or the mechanic a security interest on the property. If the owner decides to sell the property, the contractor or mechanic will have a share on the proceeds of the sale to pay for the debt incurred.
Of the three type of liens, those imposed by a judicial ruling is the most dangerous for the asset or property owner but is also one in which an informed owner may be able to eliminate.
This type of lien is created when a judicial court grants a creditor an interest on the debtor’s property after a judicial ruling. This lien can arise in several circumstances.
An example would be if a negligent driver injures someone in an accident, it will follow that the injured party would likely sue the driver for damages.
In some instances that the driver’s insurance would not cover for the damages, a judicial lien may be placed upon the negligent driver’s property as a claim for payment to the injured person. The judgment on the lawsuit filed will provide for the basis of the lien.
If the debt is not paid, the injured party or the judgment creditor can seek the enforcement of the judgment. This can be done by garnishing wages, seizing a bank account or placing a lien on the negligent driver’s property.
This lien is the first step in the process that will consummately end in the sale of the property in order to pay for the damages.
A judicial lien cannot be imposed on a ruling or judgment based upon a pre-existing ruling as in the case of a judgment on a mortgage foreclosure. This understanding will greatly help the property owner in exempting his property from possible acquisition by the creditor.
James Monahan is the owner and Senior Editor of
www.LienCentral.com and writes expert
articles about liens.
Tags: About, deal, Liens, Them, What's
Posted in Lien | No Comments »
Produce the Note – Fighting Foreclosure – CNN
Written by admin on March 7, 2010 – 12:43 am -
Facing foreclosure? Info at www.consumerwarningnetwork.com may help. Your goal is to make certain the institution suing you is, in fact, the owner of the note. There is only one original note for your mortgage that has your signature on it. One such case is profiled on cnn’s Your Money.
Tags: Fighting, foreclosure, Note, Produce
Posted in Mortgage | 25 Comments »
Fine Line: Sub-Prime Decline – The Richter Scales
Written by admin on March 7, 2010 – 12:43 am -
A Richter Scales ode to the 2007 credit crunch, sub-prime implosion, and hedge fund blowups on Wall Street. www.richterscales.com Download the MP3 richterscales.com LYRICS There’s a fine, fine line between investment grade and junk There’s a fine, fine line between liquidity and a crunch And you never know ’til you settle up if the credit is benign There’s a fine, fine line between a gain and a painful decline There’s a fine, fine line between the theories and the facts And there’s a fine, fine line between what’s solid and what cracks And now my holdings badly misbehave and my losses aren’t confined ‘Cause there’s a fine, fine line between a gain and a painful decline For years I piled on debt and smiled as my profits soared (I even bought a solid gold toilet, yeah) Now I see that I can’t be levered this much any more (panicking, I’m panicking, I think I’ve soiled myself) Bernanke, please save me, cut rates, oh I implore… (please, even 50 bps) There’s a fine, fine line between a bull and a bear And there’s a fine, fine line between delight and despair I’m hoping I’ll avoid the pain to come from trades yet to unwind But there’s a fine, fine line between a gain and a crippling, crushing, mortally wounding decline (help me) www.richterscales.com Mixed by Tat Tong Inspired by Avenue Q
Tags: Decline, Fine, Line, Richter, Scales, SubPrime
Posted in Sub-Prime | 25 Comments »
