Hotel Lawyer on restructuring distressed condo hotels: Restructuring distressed condo hotel projects and loans secured by them is moving to the top of the list for many lenders, owners and investors. Condo hotel deals are so complex and varied that there is no single "silver bullet" to take care of all problems.

Combining JMBM's legal and business experience in advising on more than 100 condo hotel and hotel condo deals with a veteran condo hotel expert, here is a 3-part article to explain: Part 1: the background and structure of the typical condo hotel, Part 2: critical differences between condo hotel restructurings and those with traditional hotels, and Part 3: a unique approach to working out some troubled condo hotel projects.

Long-term we are very bullish on well-conceived and executed condo hotels. The problem is that stakeholders have to survive through the short-term, and except in exceptional situations where there is unusual sponsorship, unique windows of financing, and special demand factors, the next few years will be very tough sledding. Properly structured condo hotels that have gotten financing for construction and end user sales, and completed their sales efforts prior to the housing bubble's bursting are fine. There is nothing inherently bad about condo hotels

JMBM's hospitality lawyers believe that condo hotels have earned an enduring place in hotel mixed-use development. They are viable. They make sense. They will continue to be very useful. Damning failed condo hotels in the current downturn is like bashing single family residences in the housing bust.

There is nothing fundamentally wrong with this type of property -- when it is structured properly and built in accordance with sound economics of supply and demand. Yes, there are a lot of poorly conceived and executed condo hotels that deserve their fate, but many sound projects are suffering now too.

A landscape littered with distressed condo hotel opportunity (and danger)

Although there is nothing wrong with the condo hotel concept, the landscape is littered with stalled condo hotel sales construction projects frozen in the financial deep freeze. Construction lenders, like Lehman, have reneged on binding loan commitments, and end-user financing has virtually disappeared. Many great projects are now in deep distress. Most condominium buyers are hiding under the bed at home, saving their money and hoping they don't lose their jobs. Most lenders are ignoring even great projects because they are hoarding capital to cover their capital depletion from derivative losses, no documentation home loans and investments with the likes of Bernie Madoff.

As the optimist said, "Somewhere in here there has to be a pony!" The question is: Can you find it? read more

Susma Patel is chairwoman and chief executive officer of First National Bank of Central Florida.

First National Bank of Central Florida is a locally owned community bank with six offices in Florida. The bank’s corporate headquarters is in Winter Park. The bank has approximate assets of $500 million, a $400 million loan portfolio and $400 million in deposits.

Patel has served as chairman of the bank for about two years and became CEO in July following the retirement of Charles W. Hall, who led the bank since October 2000.

First National Bank of Central Florida was founded in 1985 as a full-service commercial bank in Longwood. In 1999, the bank relocated its headquarters to downtown Winter Park. The bank’s income property financing programs include construction, acquisition, rehabilitation and refinance transactions for retail, office, and industrial properties for owner users. Additionally, the bank extends revolving lines of credit, equipment and vehicle loans, and letters of credit to qualified businesses. Its consumer programs include automobile, boat, airplane, CD and securities secured, home equity, and Visa/MasterCard.

The bank has a stated commitment to provide its customers with cutting-edge banking technology. This includes remote deposit capture, e-mail statements and CD ROM statements, Treasury Services, Positive Pay, Internet Banking and Bill Pay.

In May, First National Bank of Central Florida opened its newest branch in Apoka.

This year, Patel led the bank in a “green” campaign by offering business casual days the entire month of August for all of its employees and ensuring the air conditioning at each of its branch locations and departments throughout the organization are turned up two degrees higher than normal to conserve energy. The bank also began using scanners to create electronic copies of documents and a secure e-mail system to reduce paper consumption.

Patel, who is from Greenwich, England, came to the United States in 2001. Her background is in law and she was a practicing lawyer with Clintons, an entertainment and media law firm in London prior to joining First National Bank of Central Florida.

In the late 1990s, Patel became a majority shareholder of First Bancshares Inc., which is the parent company of First National Bank of Central Florida. She served as a director and then chairwoman of that holding company before assuming her role with the bank.

Source

At best, we are in recession. At worst, spiralling somewhere worse: a slump or depression or another negatively descriptive scenario.

Meanwhile, professional investors will be looking for opportunity - as for them, the definition of the word 'crisis' is when wealth is handed from the fearful to the brave.

Brave but not stupid. The professional investor, starts by looking at the overall macro-economic cycle. From growth to boom, boom to retraction, retraction to recession, and from bust to recovery, the professional investor will be looking for the strategies most likely to survive in those environments.

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For recession and worse, the world of opportunity starts with buying "distressed" assets. The world will see the first wave of institutional and HNW buying simply because that world recognises that to make money, you need to "buy low and sell high".

Anything likely to have a higher price during an economic recovery might fit the "distressed" tag, with fund managers adding in titles such as "opportunity fund"; "event driven" and "value-based."

Equity Bridge Capital's (EBC) Warren Mal-schinger's view is that their arbitrage and opportunity fund is an early "distressed opportunity" founded in the US housing market.

Malschinger says the fund is "ready to turn investment into rewards fairly quickly due to favour-able restructuring incentives to homeowners and the will of government to underwrite further decline in the mortgage market; philosophically, the market has already turned". So what does it do?

read more

In danger of losing your home? Don't give up; learn from Gilbert Ramos' example, and negotiate.

The thunderheads of Tucson's foreclosure storm have been gathering since the end of 2006. Whether they will soon disperse--or grow--remains to be seen.

Whatever happens will be of little consolation to the thousands of Tucson families who have already lost their homes to foreclosure. It will also offer little solace to those who managed to save their homes from the foreclosure process.

"There's a lot of stress, and you can't sleep at night," recalls 67-year old Gilbert Ramos of his foreclosure experience. Ramos was one of the lucky ones; with help, he kept the home his family has lived in for 15 years.

Most people facing foreclosure aren't so fortunate. While the local housing market hasn't suffered from the extraordinary foreclosure rates that cities like Las Vegas or Phoenix have, the area has been setting local records. The number of foreclosures in metropolitan Tucson nearly doubled from 2006 to 2007--and will almost double again in 2008, approaching an estimated 8,600.

The causes behind this dubious distinction are numerous. Both nationally and locally, the current financial storm was preceded by a period of rapidly rising home prices and the use of "creative" mortgages which seemingly allowed almost anybody to buy a house. read more

The government has been trying to stabilize the housing market for over a year with no luck. Here are three fresh ideas from the private sector that just might work.

What can the government do stabilize the housing market?

Policymakers have been searching for an answer to that question for the past year as the tally of home foreclosures continues to surge and home prices continue to plunge.

So far, the Troubled Asset Recovery Program has been a disappointment, focusing more on shoring up the banking system than on addressing the problems of homeowners. While Federal Deposit Insurance Corp. chief Sheila Bair has been an outspoken advocate of mortgage modifications via rate reductions and term extensions, the Fed and the Treasury have been more intent on providing cheap mortgage financing via Fannie Mae (FNM, Fortune 500) and Freddie Mac (FRE, Fortune 500), and cutting interest rates in a bid to make monthly mortgage payments more affordable.

What's worse, even mortgages that have been modified often go back into default within six months, the Office of the Comptroller of the Currency said this week.

"Modifying mortgages is an unbelievably labor-intensive thing," says Len Blum, a managing director at New York investment bank Westwood Capital. "Each case is different." read more

The credit crisis profoundly affected the home loan business. Lenders' underwriters now scrutinize every aspect of the mortgage approval process, including the property appraisal.

Most lenders now require that buyers make a down payment to ensure they have an equity stake in the property. Lenders are also concerned about declining property values.

Freddie Mac and Fannie Mae guidelines, which set the standard for the appraisal industry, require that an appraiser use comparable sales that closed within the last six months. However, today most underwriters want appraisers to limit their comparable sales to those that closed within the last two to three months.

Lenders' underwriters also ask appraisers to provide more information about the local home sale market than was the case a few years ago. They want information about comparable listings that are pending and those that are currently on the market. A pending sale is one where the seller has accepted an offer, but the sale has not yet closed.

Closed sales, even if they are relatively recent, might not reflect current market value if the local market is declining. If the list prices of comparable properties that are active or pending are lower than the recent closed sale prices, this would indicate that the market has declined. An appraiser will take this into account in his or her valuation. read more

onstruction has stopped and owners of the half-finished race track west of Bakersfield have defaulted on their loan, placing the future of the track in jeopardy.

Track owner Alan Destefani planned on financing track construction from the sale of some 36-hundred acres of farmland to developers.

But the deal with Los Angeles investors fell out of escrow in the summer of 2007, partly because of the housing slump.

Destefani later secured new financing, and construction resumed, but now Destefani farms has defaulted on the 4.5 million dollar construction loan.

"The default was caused by us exhausting all the cash resources that we had available to us. The stock market, the housing market, it's all kind of a perfect storm. Stopping making those interest payments caused the default," said Chief Financial Officer for Destefani Farms Tim Elrod.

The default could lead to foreclosure, but Elrod says the Destefani family is pulling out all the stops to find additional financing to not only finish the track but to pay subcontractors some two-million dollars they're owed.

Source

Dilapidated, neglected properties driving down housing prices

Taunton —Condemned. Foreclosed. Neglected.

Properties generally considered to be eyesores fall under one of those three categories.

Whether it’s due to foreclosure, rental vacancy, health hazard or a negligent owner, the fact is no one appreciates sharing a block with a blighted property.

“This used to be a nice neighborhood at one time. It’s too bad the way it is now,” a frustrated John Bisio said.

Bisio, 82, lives on Myrtle Street in a modest but neat house he bought from his mother some 40 years ago. During that time, he’s installed siding, new windows, painted the place and kept a small grape vine in his back yard.

More recently he’s begun erecting a brand new fence in the front yard.

If only everyone else on his short thoroughfare were nearly as conscientious.

Bisio pointed to two single-family houses on the other side of the street.

In the backyard of one, and clearly visible to passerby, a huge tree trunk that obviously had been cut down lay on its side amongst other assorted refuse.

“Would you want to live next door to that?” he asked.

Bisio said the woman who lives there has a good job and has been trying to sell.

But “it’ll never sell fast the way it is,” he said.

Next door to that is another single-family house, this one with a couple of old mattresses leaning against its back side, and a backyard that is likewise messy. read more

A likely cut in lending rates by banks may fall short of borrowers’ expectations. While some banks may do a token rate cut this week, and

lower the rates for small-ticket home loans, many banks will take a call on bringing down rates across the board after the advance tax outflow, which takes out the liquidity from the system.

Most banks are expected to bring down interest rates

by end-December. Rates on home, auto and consumer loans may come down less than the one percentage point cut in key policy rates announced by RBI on Saturday.

Till now, only ICICI Bank has announced a cut for a category of home loans. While the interest rate has been lowered by as much as 1.5 percentage point, the lower rate is only for new borrowers taking loans up to Rs 20 lakh. Most banks are not in a hurry to lower lending rates for retail customers considering that delinquencies on retail, SME and corporate loans are rising. read more

If the Wall Street executives who ignored ethical lending standards had a theme song, I imagine it would be "For the Love of Money" by The O'Jays: "For the love of money, people will lie, Lord, they will cheat. For the love of money, people don't care who they hurt or beat."

Unlike the fate of the people in the O'Jay's anti-greed ballad, Treasury Secretary Henry "Hank" Paulson rewarded the Wall Street executives who wrecked our economy with a $700 billion handout -- while millions of regular folks are losing their homes, jobs, nest eggs, retirement accounts and college funds. Families lucky enough to still have the money to pay their mortgage are watching their equity implode as housing prices plummet.

Nevertheless, addressing the immediate and crushing problems of the average American family paying for the $700 billion bailout, says Paulson, a Wall Street multimillionaire, wouldn't be a good investment. Paulson will be removed from the Treasury Department come Jan. 20, 2009.

Unless we address the tsunami of foreclosures still sweeping through every town and city in America, the forecast for the financial health of the average American family will be even bleaker. According to Credit Suisse, a minimum of 2 million family homes will be lost to foreclosure in 2009. That's on top of the 700,000 homes already lost to foreclosure. Almost 3 million families -- that's approximately 12 million men, women and children in America kicked out of their homes. read more

Figure out whether lower rate will still save money after you factor in closing costs.

The Federal Reserve's decision to buy up mortgaged-backed securities has caused mortgage rates to fall and created new opportunities. But it has also raised a question: Should you refinance your mortgage now?

Before you rush to refi, take a few minutes to determine if it's the right move. Refinancing involves starting over and applying for a new loan. Whether homeowners deal with the original lender or a new one, the new loan will pay off the old loan and the borrower then makes payments according to new loan terms.

Good reasons to refinance include getting a lower interest rate, shortening the term of the mortgage to build equity faster, lowering monthly payments or switching from an adjustable rate to a fixed-rate mortgage.

Even if you just secured a new mortgage recently, it might make sense to refinance. Homeowners should consider refinancing if, in the long run, it will save them money.

First you have to find out the cost of getting the new loan. Refinancing can cost around 2 percent to 3 percent of the total loan amount. To determine if it will save you money, calculate your break-even point. You can calculate it by dividing the mortgage fees by the monthly savings. The answer you get tells you how many months it will take for you to break even. read more

The estate agent I signed up with to sell my house demanded double the money when the first buyer pulled out and it had to be re marketed. Do I have to pay him?

The likelihood is yes, but you should refer to the contract you signed with the estate agent for clarification. It is common for a contract to state that payment is due only upon conclusion of missives. But as the first buyer withdrew, he should be responsible for the costs. Pass the matter to his lawyer as part of your claim for damages in terms of the buyer's breach of contract.

I have been working for a firm for four years but do not have a contract. I have asked my boss for one but I'm getting nowhere. I also tried to claim out of pocket expenses as other employees do, but have been told I can't as I don't have a contract. What can I do?

You are entitled to a written contract within two months of your employment commencing and as the company has not provided this, you have the right to take the matter to an employment tribunal. The tribunal would also decide whether or you have a right to expenses. read more

More than two months after the abrupt closing of the Sylvan Learning Center on North Main Street, owner Mitchell J. Kupperman, of Longmeadow, has filed for Chapter 7 bankruptcy.

The East Longmeadow, Glastonbury, Conn., and Madison/Clinton, Conn., centers were franchises operated by Northeast Learning Center Inc., based in West Springfield. Most parents learned the East Longmeadow center had closed when they read a sign on the door Sept. 25 stating the building was "temporarily closed."

"No one ever informed us personally," said Steven Koldys, the father of a 7-year-old boy who took courses at the East Longmeadow center. "We were left to deal with the corporate offices."

Representatives from Sylvan Learning's offices in Baltimore, Md., encouraged parents to transfer their children to another location.

The closest centers to East Longmeadow are in Hadley, Vernon, Conn., and West Hartford, Conn. Another option is to enroll children in Sylvan's reading and math programs online.

Sarah Hollman, director of the East Longmeadow center at the time of the closing, said there were at least 79 students receiving tutoring.

Kupperman, represented by Springfield lawyer Edward V. Sabella, filed for Chapter 7 bankruptcy Nov. 26 at the U.S. Bankruptcy Court for the District of Massachusetts Western Division. read more

Research and Markets ( http://www.researchandmarkets.com/research/ebc8b4/uk_nonstandard_un) has announced the addition of the "UK Non-standard Unsecured Personal Loans 2008" report to their offering.

The recent depressions in the financial markets have affected consumer lending significantly, not least in the non-standard segment. As the country's economy wanes, the number of non-standard individuals is set to increase, but what does this really mean for non-standard unsecured lenders and the related market? This report provides the answers.

Scope

Sizes the UK non-standard population, the UK unsecured loans market and home collected credit market and presents five year forecasts for each. Discusses competition in the UK unsecured loan market and provides market share data for the major competitors in the home collected credit market. Gives insight into the future challenges of these markets.

Highlights of this title:

With economic growth waning slightly, 2007 brought further increases, spurred on primarily by changes in employment status. As the credit crunch starts to impact the economy, particularly through mortgage defaults and repossessions, the non-standard population looks set to increase dramatically going forward. The non-standard unsecured loans market recorded yet another subdued performance in 2007 as the cost of lending increased due to the freezing up of the wholesale money markets. The market is now bracing itself for some very difficult challenges as factors that have previously driven this market are declining significantly. The competitive dynamics of the home collected credit market are set to change, as some lenders seek to reduce exposure while others continue to mop up additional market share. While this market has continued to perform poorly in financial terms, lenders remain upbeat. read more

The owners of Duncanville's Cherry Pit swingers club face foreclosure on the home where they have hosted sex parties for hundreds of Dallas-area swingers.

According to a case filed in Dallas County's 116th District Court, Jim Trulock is six months late on payments to his $163,600 mortgage. He owns the Cherry Pit along with Julie M. Norris.

The foreclosure hints at the couple's financial difficulties stemming from a slew of legal trouble that began last year when the city of Duncanville approved an ordinance outlawing the sex club operation.

Mr. Trulock, 60, recently posted a message on the Cherry Pit Web site asking for investors to donate $100 to help with legal fees and court fines imposed on the couple.

"In the past we have asked for donations for the legal defense fund to fight the illegal activities of the city of Duncanville," it says on the Web site. "Now we seek investors, both large and small, who want to invest in our defense and get a return on their money when the civil suits are settled against the city.

"If you cannot invest," the posting continued, "think about people you know who might be interested in investing in a landmark swinger's case and making a good return on their investment." read more

ARM with a long fixed-rate term gives homeowner time to plan

Question: I have a mortgage that is 12 months into the loan. The mortgage is an interest only jumbo, 6.5% fixed for 10 years, then it is adjustable for the next 20 years. I have been paying on time and my credit score is 820. Do you think I can get the bank to agree to give me a new loan fixed for 30 years with interest and principal? I worry that after the 10-year, interest-only period, the payment will shoot up to a point that I might not be able to pay. I am self-employed. A no-doc loan was recommended because it was easier to get approved. I worry that I won't be able to stay in house when it comes time to retire. Mat.

Answer: Calm down there, Mat. You have nine years to go before the loan switches to an ARM. That's a long, long time in the mortgage rate world, and no one -- I repeat, no one -- has even the slightest clue what loan costs will be in 2017. Hopefully, by then things will have settled down to a point that resembles normalcy. Hopefully, they will settle down sooner, much sooner.

Also, I want you to look at your loan documents to see if there is an interest-rate cap. Usually, there is a ceiling above which your rate cannot go, no matter what the market does. Typically, it's two percentage points above the market rate at the time you took out your loan. The cap is your fail-safe point. You will never, ever be charged more than that rate. So at least you know what your worst possible situation can be, and you can proceed from there.

For the time being, watch rates closely so that if they drop down to a comfortable level, you can try to refinance. But be forewarned, the jumbo market is all but closed, even to folks with superior credit. If you were lucky enough to find a lender who is dabbling in that sector, the cost is very expensive, probably one or two points about the rate for conventional conforming mortgages. Also, since you are self-employed, you'd probably be hit with a risk premium that would take your rate higher yet. read more

Two North County hard-money lenders, Hurst Financial and Real Property Lenders, and real estate developer Kelly Gearhart are the subject of a criminal investigation, Deputy District Attorney Steve von Dohlen confirmed Thursday. The state departments of Real Estate and Corporations, the District Attorney’s Office and the FBI are cooperating in the high-profile investigation.

A criminal investigation into a third lending company, Estate Financial Inc. of Paso Robles, led to arrests in October of the principals of that firm — Karen Guth and Joshua Yaguda. They face more than 20 felony allegations for crimes such as fraud. They remain in County Jail, with bail for each suspect set at $5 million. The arraignment for the pair has been continued to Dec. 12.

All three companies — Hurst, Real Property and Estate Financial — pooled investors’ money to fund high-interest loans to real estate developers. Lending was based on the value of real estate used as collateral. The companies charged higher interest rates than banks because the deals were considered riskier, and typically did not conform to bank standards. read more

This month, the stock market dropped precipitously after the announcement that the emphasis of the Troubled Assets Relief Program would be shifted to direct equity infusions into banks and away from buying their "toxic" mortgages. This change was especially confounding because, when he first proposed TARP, Treasury Secretary Henry Paulson suggested that the financial crisis would not end until the mortgage market stabilized. The favorable reaction to the plan to backstop Citigroup's mortgage portfolio, as well as the government's announcement yesterday that it will buy additional mortgage-backed securities, is powerful evidence that Paulson had it right the first time.

The market wants to understand the dimensions of the losses that banks face from their mortgage holdings. We believe that using a significant portion of TARP's remaining assets for its original purpose -- buying distressed mortgage assets -- is the fastest and most reliable way to achieve that. read more

Hoping to earn $50,000 in three years to help pay for their son's college education, an Iowa couple joined what was described as a risk-free housing investment program run by a Springfield company -- only to find their lives in financial ruins two years later.

"From excellent credit to bankruptcy, you can't imagine the stress," said Tammy Speidel of Bettendorf, Iowa.

The lives of the couple -- and other investors in Greenleaf Company of Springfield -- have been unraveled by Greenleaf's failure to get enough occupants into the homes it had persuaded the investors to purchase during the housing boom.

Whatever money it receives these days from paying occupants, Greenleaf uses to keep itself afloat -- rather than remitting the money to investors who own the homes so those people could meet their own mortgage obligations.

Some investors have seen their homes foreclosed on, and occupants often have little clue their homes are being lost to foreclosure.

Greenleaf is blaming the mess on a soured economy, and company officials have been telling investors and others for months that help is on the way, although they declined to provide specifics. read more

I watched a middle-aged widow lose her home recently. Her story was familiar. She owned her simple brick residence outright until four years ago, when a mortgage broker stopped by and offered her a loan too good to be true. In exchange for taking on a modest monthly payment, she could make some needed repairs and consolidate other debts.

More sophisticated than many borrowers, she realized she was getting an adjustable-rate mortgage. What she didn't realize was that, in the biggest "bait-and-switch" ever pulled by an entire industry, her ARM was not tied to the prime rate or any other index, as adjustable-rate mortgages have traditionally been. Her rate adjusted periodically, ever upward. When it hit 14 percent, her social worker's salary could no longer cover the payments.

I watched this story unfold in court, from my seat in a bankruptcy judge's chair. While a Chapter 13 filing temporarily stopped the foreclosure on this woman's home, it did little more than buy a few months' time.

Under existing law, bankruptcy courts cannot modify the terms of home mortgages. To keep her home, this debtor needed to demonstrate sufficient income not only to make her ongoing payments but also to cover the payments she had defaulted on. Her proposed plan was clearly not feasible based on her salary, so I had no choice but to lift the stay and allow the foreclosure to continue. read more

U.S. banks and thrifts are launching an offensive against a proposed federal rule that would boost costs on one of their last reliable sources of funding for loans.

Financial institutions have sent more than 100 letters to the Federal Deposit Insurance Corp over the past month protesting a proposal that the government agency says would help restore its deposit insurance fund.

The FDIC charges U.S. banks to insure their deposits. The agency is considering boosting fees on banks that fund loans in significant amounts through secured borrowing from institutions such as the Federal Home Loan Banks rather than through deposits.

The rule is meant to ensure that banks pay insurance fees that are proportional to the risk they pose to the insurance fund. Under current rules, a bank that borrows from a Federal Home Loan Banks pays smaller insurance fees than one that relies on deposits, even though risks of failure and costs to the FDIC may be the same, the agency said.

Bankers say loan advances from the Federal Home Loan Banks are now one of their few reliable sources of funds. The proposed increase of up to 50 percent over current assessments could stifle lending at a time when credit is already at its tightest in years, and economists say a long U.S. recession appears inevitable. read more

Sixteen people were charged in a grand jury indictment that was unsealed on Nov. 19 with bilking mortgage lenders out of more than $13 million dollars in loans in connection with approximately 28 Long Island properties, according to federal prosecutors. Three of the defendants charged with mortgage fraud were also indicted for participation in a cocaine distribution ring, says a spokesman for the U.S. Attorney for the Eastern District of New York.

Immigration and Customs Enforcement investigators, along with members of the Organized Crime Drug Enforcement Task Force, uncovered the two separate fraud schemes and the drug ring. The complex scams involved mortgage brokers, real estate appraisers, loan processors, and a bank employee, Gloria Espenas, the former vice president of a JP Morgan Chase branch in Nassau County.

In the first alleged scheme, Robert Guerrero, owner of Property Cash in Greenlawn, and Gary Jacques, owner of Home Cash in Huntington Station, used their companies to purchase Long Island real estate. In some cases, the men would trick homeowners who were in danger of defaulting on their mortgages into signing over their property titles to Home Cash or Property Cash, after promising the victims they could prevent their homes from being foreclosed upon, prosecutors say. read more

It's a massive problem affecting thousands of Indiana homes and, no matter where you live, it's happening in your neighborhood, too. 13 Investigates takes you inside the area's dangerous - and even deadly - foreclosure crisis.

From starter homes in Greenwood to million-dollar mansions in Geist, tens of thousands of homes throughout central Indiana are now vacant, abandoned or in foreclosure.

While some of the properties are being well maintained, most are not.

The high weeds, garbage, neglect and abuse outside the homes create an eyesore for neighbors, but what lies inside the houses can be even worse.

Open door policy

Because many of the properties are not properly secured, WTHR found many homes with doors, windows and garages that provide easy access. In fact, some are wide open.

13 Investigates' tour of abandoned homes found properties that have been ransacked and vandalized. Others have collapsed ceilings. Rotten food, mold and mildew create foul odors that neighbors call "unbearable."

Janice Banks lives across the street from two foreclosed and vacant homes on Villa Avenue in Indianapolis. She says it's been years since she has seen anyone care for the unsecured properties, which are now surrounded by high grass and weeds and littered with trash.

"Somebody's got to do something," Banks said. "It's a mess and I don't want to live across from that."

City officials tell WTHR they have not received any recent complaints about the Villa Avenue properties, but after seeing the homes firsthand, they admit the homes do need attention. read more

The current Real Estate market stinks. Selling your property will require a discounted value and a long time to sell. When their is so much supply and little demand, basic economics falls into play. The current free fall of housing values, increase in foreclosures and no process to borrow has created the "Perfect Storm". The American Dream has become the American Nightmare. How can you survive in this market?

Lets examine the different approaches the homeowner can take to survive in this current economy. If you want to sell your property ,but the price of the house has declined by 10% to 30% what can you do. The conventional approach will not work, So lets examine different approaches. The Lease Option Conversion Program allows the owner to market to a potential buyer who can make payments but needs time to save up the downpayment. Example, if the rents in the area are $1,500.00, the a Lease Option will generate about $2,200.00. This amount should be enought to cover the mortgage payment, the option money would be about $5,000.00 and over a 2-3 year period the potential buyer can save up enough with credits, to exercise the contract. The Contract of Sale program allows the seller to market their property to buyers who make good income but need to repair their credit. With so many foreclosures potential buyers who need tax benefits, can purchase while they repair their credit..

Tax benefits go to the buyer and fee title stays with the seller. Under the contract the vendee/buyer pays the underlying mortgage, property taxes, insurance and all expenses. The short sale is done after all other methods to sell the property have been tried. The short sale is where the seller is either going into foreclosure or has to sell. The seller can not receive any proceeds but can stay in the house while it sells. The house sells at a discount, the homeowner is relieved of the debt and under current hardship laws is forgiven. The homeowners credit is hurt but not as bad as a foreclosure/bankruptcy. Finally, if you want to leave the house, but it cannot be sold, try to interact with the lender and offer a Deed in Lieu of foreclosure. The mortgage company might take back the house if you co-operate, rather than go through the foreclosure process. read more

Hammer on nail formed the economic drumbeat in McHenry County for many a year.

For more than a decade, growth spelled boom times for trades people, Realtors, developers, building material suppliers and retailers. It pumped millions of dollars into the local economy through wages, purchases and sales taxes. Government coffers reaped a steady flow of the funds that come with increasing property values where new homes replaced cornfields.

The dust flew as bulldozers tore into the earth, carving thousands of foundations for homes and the businesses that follow rooftops.

In Huntley alone, 1,157 single-family home permits were issued as recently as 2003.

Lately, though, the silence is deafening. Through October of this year, Huntley has seen just 100 detached single-family home permits pulled. The story resounds in communities throughout McHenry County, from Cary, where four permits were issued during its last fiscal year, to Woodstock, where 32 permits had gone out this year through Sept. 1. read more

DBS are proud to announce the launch of 12 new niche sites aimed at specific areas of the UK secured and unsecured loan market. The company has enjoyed sustained success over the last 4 years and felt with the current economic situation to adopt a growth strategy to provide a better and more tailored service to specific loan seekers.

DBS Finance use advanced RSS and XML technology to find the widest selection of lenders within the UK, with emphasis on speed and efficiency in getting back to their clients. As soon as an enquiry is submitted to our core site or any of the niche sites, our technology process kicks in to action. A series of technology steps ensures the secure movement of data in to a system where master brokers get to work by calling the client back. An extensive needs analysis is conducted and all relevant information collected to generate a credible loan application. read more

The economy’s deep troubles are pushing a growing number of already struggling consumers into bankruptcy, often with far more debt than those who filed in previous downturns.

Plummeting home values, dwindling incomes and the near disappearance of credit have proved a potent mixture. While all the usual reasons that distressed borrowers seek bankruptcy — job loss, medical bills, divorce — play significant roles, new economic forces are changing the calculus of who can ride out the tough times and who cannot.

The number of personal bankruptcy filings jumped nearly 8 percent in October from September, after marching steadily upward for the last two years, said Mike Bickford, president of Automated Access to Court Electronic Records, a bankruptcy data and management company. read more

A hard freeze crippled the credit market in September, leaving borrowers scrambling for mortgages.

But with the huge moves that the federal government has made to encourage banks to make loans, mortgage lending has thawed in recent weeks.

Buyers with mid-level or even damaged credit are now able to get mortgages by going through the sometimes complex Federal Housing Administration loan guarantee program. Even those buying second or investment homes are getting loans.

The region's lenders, Realtors and mortgage brokers attribute the thaw to a return pre-boom lending requirements: proof of income, a stable job and a down payment.

"We had those lending practices for years and years and years, but then anyone who was breathing could get a loan," said Lee Wetherington, who builds luxury homes from a base in Lakewood Ranch. "That is when it all went to hell." read more

Auctioneer Nancy Steffen conducts a foreclosure auction on a house on St. Cloud Avenue in Lynchburg on Wednesday.

You wouldn’t expect a $1 million home on Easy Street on Smith Mountain Lake to end up in the same situation as a $20,000 house from inner-city Lynchburg.

One was built as a lakeside mini-mansion in 2006. It has 5,200 square feet, granite countertops, cathedral ceilings and geothermal heat.

The other was built in 1892 with a wood frame and siding. Its 1,500 square feet are warmed with electric baseboard heaters.

Both met the same fate this year.

Foreclosure.

So did more than 200 other homes in the Lynchburg area. After homeowners failed to make mortgage payments, lenders ultimately took the homes to foreclosure auctions.

An examination by The News & Advance of land records in Lynchburg and the counties of Amherst, Appomattox, Bedford and Campbell show that more people have lost their homes this year than last year, up 33 percent overall.

From January through August, local property owners — including individuals and a few businesses — lost 211 properties to foreclosure. Records showed 159 foreclosures over the same period in 2007. read more

Desperate times call for desperate measures.

Small-business owners across the Valley have adopted that attitude as the ongoing credit crunch shows little sign of easing.

They are wiping out their personal savings, outsourcing work and cutting salaries.

Other owners are opting to throw in the towel by shutting their doors or filing for bankruptcy.

The credit crunch has a direct economic effect on small businesses in Arizona - a state where 97.3 percent of employer firms are classified as small businesses, according to the U.S. Small Business Administration. Employer firms are businesses that have employees and are not sole proprietorships.

Businesses that can't obtain credit often nix expansion projects, freeze hiring and cut back on the number of employees.

Companies with healthy balance sheets and stellar credit histories say they've had luck obtaining bank financing. Still, the credit crunch, plummeting home values and the rising price of goods have pummeled consumers, who are the lifeblood of most small businesses. That has made it harder for them to maintain strong balance sheets. read more

A litany of troubles drives a Brooklyn bus company into Chapter 11; nightly visits from the repo man

It's hard to lose a school bus. But when a driver for Caravan Transit scoured the company's Brooklyn yard early one morning in August, he couldn't find his vehicle.

So he called General Manager Edwin Maldonado. "You're blind, it's gotta be there," Mr. Maldonado said to himself. "Just check again," he told the driver. The driver checked again. No sign of his bus.

Mr. Maldonado rushed to Caravan's headquarters and soon realized that 24 other buses were missing. The wire for the security camera perched above the front entrance had been sliced. The steel chain that secured the yard's sliding gate had been cut. He called the police.

But it turned out that creditors, not criminals, were the culprits. The buses had been repossessed.

When another 13 buses vanished in the middle of the night less than a month later, Caravan owner Jeffrey DeStefano realized his time was running out. Some $2 million in debt, he filed for Chapter 11 bankruptcy protection last month. read more

Part of the current banking crisis is due to the deregulation that Congress brought in known as the Gramm-Leach-Bliley Act of 1999 or the Financial Services Modernization Act. But that deregulation was part of a general movement during the 1990s, approved by piecemeal government regulations and deregulations, that allowed both investment banks and banks to become universal banks.

As universal banks, bankers could engage in all manner of highly questionable financial activities and expansions that are totally inconsistent with the safety of bank deposits. Given the government’s guarantees of bank deposits, these sorts of activities should never have been allowed. When there are such guarantees combined with the central banking money system, market discipline is greatly eroded. No doubt, lobbying efforts and contributions to politicians have much to do with this deregulation and erosion. There are big bucks to be made by gaming the system of government regulation.

The system we have is the furthest thing from lawful free markets. It is not "financial capitalism," as France’s President Sarkozy would have it. To be fair to him, Mr. Sarkozy’s views require separate elaboration. We will be hearing more from him, I am certain. Like De Gaulle, he may want a place for gold. For the moment, statements like these "Laissez-faire is finished" and "The all-powerful market which is always right is finished" should be recognized as incorrect and misleading. We have not experienced either laissez-faire or an all-powerful market. How could we when we have not had monetary freedom at any time and especially since 1913 and then the New Deal? read more

Last time, I gave some background on the financial system bailout. This column I will go into a little more detail.

First of all, I think that whoever coined the term "bailout" to describe the plan did the entire country a huge disservice. When you say bailout, I picture a government giveaway program - and judging from the response of a majority of Americans, I am not alone - but that is not an accurate description of the plan.

Initially, the plan was for the government to buy some of these undervalued assets (primarily pools of loans) from institutions, thereby creating a market for them, and allowing the institutions to generate some much-needed cash that could be used to make new loans and strengthen their balance sheets. The government would buy the assets at a discount, then hold them until the loans paid off or resell them at a later date after other investors re-entered the market. read more

The Federal Deposit Insurance Corp. may revise a $1.4 trillion debt-insurance program to address complaints that it would spur an exodus from the $250 billion market for overnight loans between banks.

The FDIC is considering charging different fees depending on the maturity of the debt, instead of its previous plan for a flat fee. Companies including JPMorgan Chase & Co. and Bank of America Corp. said the original proposal threatened to make the overnight federal funds market too costly compared with alternatives such as direct loans from the Federal Reserve.

``We are definitely thinking through how to respond to some of the concerns that have been raised,'' Art Murton, director of the FDIC's insurance and research division, said in an interview. ``Complexity is somewhat inevitable. We're doing our best to take away unnecessary confusion.''

The FDIC today announced it would take up the issue at a board meeting set for 2 p.m. on Nov. 21. The agenda calls for the final rule to be discussed and voted on. read more

A WOMAN who forged a credit union loan document has been warned by a judge that the forgery could have resulted in imprisonment for contempt of court.

Start Mortgages Ltd secured an order for possession of a house at Old Callan Road, Kilkenny, against Eileen Tynan but a stay was placed on the order for a month.

Ms Tynan had secured a mortgage of €174,000 in December 2005 and there were arrears of €33,000, the High Court was told.

Ronan Murphy SC, for Start Mortgages, said that on October 24th, Ms Tynan had produced a letter in court purporting to be issued by her credit union which indicated a loan application for €45,000 had been approved. read more

Your specific needs and requirements are bound to change with the time. You are always on the lookout to make your life more comfortable and hassle free. For the same you can go to any length, if necessary you will not think twice before availing financial assistance. Loans are only a medium, which assist you to realize your dreams and wishes. Non secured loans are a part of the medium, which mainly offers financial assistance, so as to help you meet your small time monetary requirements.

Like any other conventional loans, these loans are mainly offered by lenders such as banks and financial institutions. While applying for the loans, there is no need to pledge any valuable asset as collateral for its approval. The collateral free condition of the loans is in fact a boon for the borrowers such as tenants and non homeowners, who do not have any asset of their own. Besides, asset owners who do not want to risk their priceless assets can also make use of the loans. you are free to use the loans to serve various needs like consolidating past debts, purchasing a car, renovating home, educational purposes, wedding, going for a vacation and many more. read more

Self-builders enjoy a 35 per cent equity gain the day they move in. And they save on Stamp Duty. Laura Howard reports on a bright spot in the market

For years, the term "negative equity" barely featured in the vocabulary of the modern homeowner. But things have changed. The Bank of England revealed last week that 1.2 million homeowners are likely to find themselves trapped in a home worth less than the mortgage secured against it as prices continue to tumble. But one type of homeowner could be better equipped to fight the return of negative equity than the rest – those who build the homes they live in.

Self-builders benefit from an average 35 per cent equity gain from the day they move into the property, according to John Hay, marketing director at self-build specialist BuildStore. "When the house is complete, it should be worth around 35 per cent more than the total cost of the land and the build. This cushion against negative equity means that now is the perfect time for self-build." read more

Faith's house was sold at auction last week on the front steps of the Catawba County Justice Center.

The Newton woman, who asked not to be identified to protect her privacy, said making payments on the three-bedroom house had been a struggle from the time she bought it nearly five years ago. A second mortgage and payments on a home equity line of credit put the 51-year-old divorcee in debt and kept her there.

When her lender started foreclosure proceedings in late summer, Faith did what many people in similar circumstances do. She walked away from the house without even talking with her lender. read more

Would-be landlords are increasingly turning to unsecured home improvement loans to make their properties more attractive to tenants, reports Credit Problems No Problem. Letting property or even a spare room within the family home is becoming more popular as families seek to raise cash in the recession.

Newton Abbot, Devon, UK (PRWEB) November 2, 2008 -- Would-be landlords are increasingly turning to unsecured home improvement loans to make their properties more attractive to tenants, reports Credit Problems No Problem

Letting property or even a spare room within the family home is becoming more popular as families seek to raise cash in the recession.

But many need to invest in home improvements first to make their properties stand out from the crowd amid burgeoning competition among landlords.

And for those with poor credit, home improvement loans can be difficult to source.

Some 18.1 per cent of applicants seeking fast cash loans from Credit Problems No Problem cite 'home improvements' as the reason for borrowing.

"Home improvements have always been popular among our applicants," said a spokesman for Credit Problems No Problem, which specialises in loans for people with a poor credit rating.

"However, now the difficult housing market conditions are making unsecured loans more attractive to landlords - particularly those new to the letting market."

UK house prices are now 14.6 per cent lower than they were 12 months ago, according to latest figures from Britain's biggest building society, Nationwide.

The price of the average UK property fell to £158,872 in October - £27,172 lower than it was a year ago. read more

With the passage of the Emergency Economic Stabilization Act of 2008 (“EESA”), the twin housing and mortgage crises have now forced the government to directly battle, with massive financial intervention, the systemic implications for our banking (and shadow-banking) institutions. Notwithstanding the magnitude of government support that EESA will bring to the resolution of the credit and banking crises, the financial and social implications arising from the housing bubble, for homeowners and the broader economy, require the consideration of additional unconventional solutions that are not inconsistent with the rubric of our system of laws and property rights. Such solutions must also place less reliance on direct intervention from a heavily extended government (and its taxpayers). The Freedom Recovery Plan (the “Plan”) is a structured package of government and private-sector measures that amount to a national “workout” of the residential real estate elements of the overall crisis in the capital markets. The housing sector’s ongoing meltdown presents unique challenges that were not front and center in prior boom and bust cycles. Accordingly, special actions are necessary to limit the damage to vast population segments and the knock-on effects of such damage to our normally resilient financial sector and economy. That such actions should endeavor to maximize the role of the private sector should be self-evident to those with lingering concerns about the total costs to which the government has already committed. read more
Source:http://www.rgemonitor.com/financemarkets-monitor/254085/the_freedom_recovery_plan_for_distressed_borrowers_and_impaired_lenders

EACH one is a poignant reminder of hopes dashed and dreams shattered.
On the Wilson Auctions website last week at least 13 of the 45 properties for sale were advertised as being owned by the organisation that provided the mortgage – a clear sign that the homeowners who purchased the property back in the heady days of low interest rates had long departed the place that they wanted to call home.

They were not just properties at the cheaper end of the market either. One was a four-bed duplex penthouse on Edinburgh Waterfront, where developer Gregor Shores last week went into administration.

It was a home that, at the height of the property boom, could have fetched a sum approaching seven figures. It was sold at auction last month for around the guide price of £225,000. Someone, somewhere, got a major bargain. read morehttp://www.blogger.com/post-create.g?blogID=3397713675279201980#

Source:http://scotlandonsunday.scotsman.com/comment/Repossession--leaves-thousands-out.4606858.jp

Question: I was wondering if you have any thoughts on who is to blame for the current financial crisis? I don't need a political answer. I need a business answer.
-Barbara, Phoenix

Answer: Thank you for being quite blunt with me. As an independent, the only answer you will get from me is a business answer. I believe that there is plenty of blame to go around for the current financial crisis. So, let us round up all the suspects.


• The U.S. Congress: It is not a Republican or a Democrat problem. The entire Congress is to blame. Congress enacted the Glass-Steagall Act in 1933, which prohibited banks and investment banks from combining. This combining had supposedly contributed to the crash of 1929. The Congress repealed this law in 1999, setting up the scenario for the current crisis. Apparently, after 70 years we had forgotten the lessons of 1929.
read more
Source:http://www.azcentral.com/arizonarepublic/business/articles/2008/10/19/20081019biz-asksteve1019.html

Equity release is a way of gaining a cash lump sum secured on your home with repayment put off for decades.

There are two main types of equity release scheme: lifetime mortgages and home reversion plans.

Lifetime mortgages

These are the more popular of the two schemes and allow a homeowner to receive a cash sum and stay in a property, with the loan repaid from the sale of the home after death, or if the borrower moves into care. The principle is that rising property values will cover the interest on the original debt. Borrowers with lifetime mortgages typically don’t make monthly repayments, but defer or “roll up” the interest and capital so that it is repaid when the home is sold.

Interest rates are slightly higher than “mainstream” mortgages to reflect the “no negative equity” guarantee that they now offer as standard.

The older the homeowner, the more they can borrow. For example, a 55-year-old can typically borrow 15 per cent loan to value, while an 80-year-old can raise nearly half the value of their property. read more
Source:http://www.ft.com/cms/s/0/a23d683c-9c78-11dd-a42e-000077b07658.html?nclick_check=1

The number of home owners facing repossession has reached its highest level since the worst years of the early 1990s property crash.

Figures from the Ministry of Justice reveal that lenders have applied to county courts for a repossession claim in nearly 80,000 cases during the first six months of this year.

With the housing crisis getting worse with each passing month that could see the annual total exceed 160,000. In 1991, the total number of claims reached 186,649. The following year the number fell to 142,162.

Repossession claims are the first step in the legal process which can ultimately lead to a home being seized by a bank or building society. read more
Source:http://www.telegraph.co.uk/finance/financetopics/financialcrisis/3222736/Court-action-against-home-owners-at-highest-level-since-90s-housing-crisis.html

Grandson of Mexican immigrants and a former mayor of this town, Henry G. Cisneros has spent years trying to make the dream of homeownership come true for low-income families.

As the Clinton administration’s top housing official in the mid-1990s, Mr. Cisneros loosened mortgage restrictions so first-time buyers could qualify for loans they could never get before.

Then, capitalizing on a housing expansion he helped unleash, he joined the boards of a major builder, KB Home, and the largest mortgage lender in the nation, Countrywide Financial — two companies that rode the housing boom, drawing criticism along the way for abusive business practices. read more
Source:http://www.nytimes.com/2008/10/19/business/19cisneros.html?_r=1&bl&ex=1224561600&en=7c34162074e34513&ei=5087%0A&oref=slogin

The blame game is already under way. Five masters of the universe have already fallen on their swords as part of the price of the taxpayers' unprecedented bail-out of our stricken banks. But the enforced departures of those who ran HBOS and RBS are only the start of the story.

As an angry, bewildered public search out the culprits, no one would be too surprised if Threadneedle Street comes to resemble some latter-day Appian Way, lined with crucifixions of the bankers, brokers and traders who brought our economy to its knees.

But perhaps we all bear some share of the blame. The banks and finance houses bombarded us with credit cards, personal loans, mortgages and remortgages up to ludicrous multiples of annual income, and elastic overdrafts. No one made us take the money. Many of us were happy to rack up debts comforted by the thought that ever-rising house prices would float us off the rocks of personal bankruptcy. read more
Source:http://www.telegraph.co.uk/opinion/main.jhtml?xml=/opinion/2008/10/20/do2004.xml

Another new law that may do more to help homeowners in trouble.

New federal regulations designed to prevent the kind of home loan abuse that led to a $1 trillion bailout, ironically may have fallen under the radar because of all the bailout and economic meltdown news.

Less dramatic than spending hundreds of billions of dollars to bail out the nation's economy, Federal Reserve Board amendments to the "Home Ownership and Equity Protection Act (HOEPA)" could have a much more lasting effect.

That's because the new HOEPA rules outlaw abusive mortgages, specifically to eliminate future runs on bad home loans. What's more, with the loans removed from the market, consumers will be forced to change misdirected savings, budgeting and mortgage shopping habits. read more

Source:http://www.consumeraffairs.com/news04/2008/10/homeowner_hope.html

Mortgage firms are abandoning fixed interest rate schemes for flexible options that can offer them room to manoeuvre the changing market conditions as runaway inflation and a raging global financial turmoil shifts economic fundamentals in the lending environment.

Analysts said this policy shift coming from the big lenders is the latest signal that Kenya is yet to find a suitable interest rate-fixing mechanism away from the current dependence on public debt instruments.

Fixed mortgage rates were introduced in the Kenyan market four years ago after the benchmark Treasury Bill rate fell below five per cent – the lowest in nearly three decades and the Narc Government assured the market of a stable economic environment on the domestic front. read more
Source:http://www.bdafrica.com/index.php?option=com_content&task=view&id=10695&Itemid=5812

Bank Mutual Corporation (NASDAQ Global Select Market® : BKMU) reported net income of $1.6 million or $0.03 per diluted share for the three months ended September 30, 2008, compared to $3.7 million or $0.07 per diluted share for the same period in 2007. Earnings in the most recent quarter were impacted by a $2.3 million impairment loss on a mutual fund that invests in mortgage-related securities, a $1.4 million impairment loss related to Federal Home Loan Mortgage Corporation (“Freddie Mac”) common stock, and a $1.0 million loss provision related to a loan secured by a completed condominium development project. The after-tax impact of these developments was approximately $3.1 million or $0.06 per diluted share.

Bank Mutual Corporation also announced net income of $11.0 million or $0.23 per diluted share for the nine months ended September 30, 2008, compared to $13.0 million or $0.23 per diluted share for the same period in 2007. The earnings comparison between these periods was impacted by the developments described in the previous paragraph, as well as an additional impairment loss of $2.1 million in the second quarter of 2008 on the mutual fund mentioned above ($1.4 million or $0.03 per diluted share after income taxes). read more
Source:http://www.istockanalyst.com/article/viewiStockNews+articleid_2714178.html

Citizens Republic Bancorp(Nasdaq: CRBC) announced today a net loss of $7.2 million for the three monthsended September 30, 2008, compared with a net loss of $201.6 million for thesecond quarter of 2008 and net income of $31.8 million for the third quarterof 2007. Diluted net income (loss) per share was $(0.07), compared with$(2.53) for the second quarter of 2008 and $0.42 for the third quarter of2007.

For the first nine months of 2008, Citizens recorded a net loss of $197.7million, or $(2.36) per diluted share, compared with net income of $72.9million or $0.96 per diluted share for the same period of 2007. The decreasewas primarily the result of the goodwill impairment charge, credit writedownand fair-value adjustments in the second quarter of 2008 as well as a higherprovision for loan losses. read more
Source:http://www.ibtimes.com/prnews/20081016/mi-citizens-rep-ern.htm

The government's effort to boost bank lending to end the credit crisis is hurting one of the areas critical to the nation's recovery: mortgage rates. In the past week, the average mortgage rate on a 30-year fixed home loan has jumped more than one half a percentage point to 6.74%, according to Bankrate.com. That might not sound like much, but it is the biggest one-week rise in the normally stable lending rate in 21 years. Some economists say mortgage rates could soon top 7%, a level they have not seen in more than six years.

"Certainly the moves the administration have made so far are not directly attacking the financial issues that affect American homeowners," says John Vogel, a finance professor at Dartmouth's Tuck School of Business. "We need to refinance million of homeowners into affordable mortgages, and if rates go up that makes that job just much harder to do." read more
Source:http://www.time.com/time/nation/article/0,8599,1851203,00.html?imw=Y

NEW ways of thinking are necessary as Australia weathers the worst financial crisis in our lifetimes. The path forward as we navigate the fallout from the subprime-induced credit meltdown will be a suite of new measures to deliver greater transparency and tougher financial sector regulations, along with innovative solutions to assist working families in financial hardship.

In many cases, the horse has already bolted and we cannot undo the damage that will emerge from predatory lending. Action is urgently needed on special measures to help Australian home owners at risk of foreclosure.

For young families struggling to meet high mortgage or rental costs, a sudden reduction in income caused by a slowdown in the economy, pregnancy, illness or the loss of a job can risk the roof over their heads through foreclosure or eviction.
read more

Source:http://business.theage.com.au/business/reform-to-help-owners-facing-default-20081016-52fj.html

HDFC, the country’s largest housing finance company, reported a net profit of Rs 534 crore for the quarter ended September 2008. This is
an increase of 32% over last year’s second quarter net profit of Rs 403 crore. If the exceptional items from the sale of BPO arm Intelenet in 2007-08 were included in last year’s profit, this year’s Q2 net profit would be down 17% over last year.

While the profit growth is healthy and in line with market expectations, the rate of disbursements has slowed down marginally. Disbursals grew 23% to Rs 10,584 crore in the second quarter, while approvals rose 26% to Rs 14,184 crore. The slower growth reflects reduced lending to corporates and builders. According to officials, the retail loans grew at a healthy 31%. Analysts fear a slowdown in retail loan growth if troubled builders stall projects. read more

Source:http://economictimes.indiatimes.com/News_by_Industry/HDFC_net_up_32_to_Rs_534_cr_in_Q2/articleshow/3610236.cms

Heritage Oaks Bancorp (HEOP:6.75, -0.50, -6.9%) , the parent company of Heritage Oaks Bank, today reported that following a $3.2 million provision for loan losses, it earned $534,000, or $0.07 per diluted share for the third quarter of 2008, compared to $1.6 million, or $0.23 per diluted share, in the third quarter a year ago. For the first nine months of 2008, net income was $2.9 million, or $0.37 per diluted share, compared to $4.9 million, or $0.70 per diluted share, in the first nine months of 2007. Earnings per share was impacted by the October 2007 acquisition of Business First National Bank of Santa Barbara, in which Heritage Oaks Bank issued 850,213 shares, resulting in an 12% increase in the number of average diluted shares outstanding compared to the third quarter of 2007.

"Our core business remains sound as is evidenced by our improving efficiency ratio," stated Lawrence P. Ward, President and CEO. "Although our increased provision for loan losses put a drag on earnings, our strong operating results allowed us to take a large provision while still remaining profitable. We will continue to move away from balance sheet growth and focus on asset quality and capital preservation, as we work through these credit quality issues." read more
Source:http://www.marketwatch.com/news/story/heritage-oaks-bancorp-reports-third/story.aspx?guid={6A65A684-678E-4915-9688-2D8843181E48}&dist=hppr

United Financial Bancorp, Inc. (the "Company") (UBNK:13.99, -0.51, -3.5%) , the holding company for United Bank (the "Bank"), reported net income of $2.4 million, or $0.15 per diluted share, for the third quarter of 2008 compared to net income of $1.3 million, or $0.08 per diluted share, for the corresponding period in 2007. The Company's improved results were largely due to a significant increase in net interest income, driven by net interest margin expansion and growth in average earning assets, and to a lesser extent, growth in non- interest income. The quarterly operating performance was also affected by increases in the provision for loan losses and non-interest expenses. For the nine months ended September 30, 2008 the Company's net income was $6.3 million, or $0.39 per diluted share, compared to net income of $3.1 million, or $0.18 per diluted share, for the same period in 2007. The Company also announced a quarterly cash dividend of $0.07 per share, payable on December 1, 2008 to shareholders of record as of November 6, 2008. read more
Source:http://www.marketwatch.com/news/story/united-financial-bancorp-reports-earnings/story.aspx?guid={0B4456E2-7252-4BB5-ADD4-179129B60A7B}&dist=hppr

Lowering your interest rate
Adjusting the length of your mortgage
Changing from an adjustable-rate mortgage to a fixed-rate mortgage
Getting an ARM with better terms
Getting cash out from the equity built up in your home
When is refinancing not a good idea?
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What will refinancing cost?
What is "no-cost" refinancing?
How do you calculate the break-even period?Refinancing calculators
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Source:http://foodconsumer.org/7777/8888/Other_N_ews_51/101707522008_Mortgage_Refinancing.shtml