House prices nationwide have been declining for three years and are still falling. According to the most recent S&P/Case-Shiller index, house prices declined a record 19.1% in the first quarter of 2009 compared with the first three months of 2008. According to the index, prices in big US cities are back at 2002 levels and still falling.

The national level of mortgage debt is not, however, making a corresponding decline. Mortgage loan modification may be part of the answer to disproportionate mortgage debt levels, but the issue is complex. Although the amount of outstanding mortgage debt declined in 2008 for the first time since the Federal Reserve started keeping track in 1945, mortgage debt levels remain disproportionately high.

Injections of liquidity will not ease mortgage debt load

Injecting liquidity into the economy will do little to solve the problem of too much debt. According to government data, home mortgage debt was 73% of gross domestic product last year. That’s the third-highest reading on record. The debt problem can only be solved by paying down mortgages and rebuilding lost savings. How long it might take for Americans to do that is a key question for anyone trying to gauge the prospects for an economic recovery.

Whether or not the United States homeowners ever return to a more normal mortgage debt level (such as the 46% average of the 1990s), it unlikely that the sort of consumer-driven economic rebound that took place after the last few recessions can happen again given the current mortgage-debt level. Saddled with mortgage debt level of 73%, Americans may not easily be driven to spend more.

Increased consumer spending may bring further disaster

The mortgage debt problem goes beyond an inability to boost consumer spending. Not only are borrowers who are overstretched on their mortgages less able to spend money on other things without the help of unsecured loans, they are also more likely to fall behind on housing payments.  Increased consumer spending is likely to result in increased mortgage defaults which will mean increased loan write-downs for already troubled banks.

In a recent interview with Bloomberg’s Scott Lanman, Former Federal Reserve Chairman Alan Greenspan indicated that the financial crisis is not over, despite a decline in costs of borrowing. “There is still a very large unfunded capital requirement in the commercial banking system in the United States and that’s got to be funded,” he said. Greenspan also said that “until the price of homes flattens out we still have a very serious potential mortgage crisis.”

Disaster area?

A Florida county that has been particularly hard-hit by the housing crisis is seeking “disaster area” status.

In St. Lucie County, thousands of homes stand vacant or unfinished. A  county commissioner believes the crisis has reached disaster proportions. If the county is declared a disaster area, it could receive money from the government’s fund dedicated to providing relief in areas hit by hurricanes and tornadoes.

What constitutes disaster?

Instead of waiting for cash advances from the government, County Commissioner Doug Coward is pushing for the disaster area classification so his county can get some help.

“This is a man-made disaster,” County Commissioner Doug Coward acknowledged. But he said that is why “we’ve got to do something. Clearly, the economic crisis of the country far exceeds the ability of local governments to solve it, but we’re trying be a part of the solution.”

Why make declaration?

Doug Coward

In addition to being eligible for the disaster relief funds, the declaration would let the county sidestep the usual bidding process for construction projects. Then the jobs could go directly to local contractors.

Advocates are hoping that if more locals are put to work, they’ll be able to pay their mortgages and avoid even more foreclosures in the area.

Rise and fall

Port St. Lucie was the fastest growing large city in the United States just five years ago. However, the rapid growth led to a rapid decline.

Affordable housing, open space and a laid-back lifestyle drew residents to Port St. Lucie by the busload. But despite the seemingly low home prices, many people soon realized they couldn’t really afford their homes. They found themselves swept up in the nationwide mortgage crisis.

Hard facts

In St. Lucie County, 10,000 homes were foreclosed last year — more than double the amount of the year before. Unemployment is 10.5 percent, significantly higher than the nation’s 7.9 percent.

A scuffle between House Democrats has brought legislation to help debt-strapped homeowners to a halt. The bill would let bankruptcy judges reduce the principal and interest rate on mortgages.

The main point of contention centers on this question: Is it fair to help only those who are facing bankruptcy and not others struggling to make mortgage payments on homes that are now devalued?

Democrat vs. Democrat

Debaters seem to fall into two camps: traditional Democrats and moderate Democrats, including members of the business-minded New Democrat Coalition.

Coalition head Rep. Ellen Tauscher points out that the measure only helps homeowners facing bankruptcy and other extreme circumstances. The coalition says there are people out there who can make their payments, but still deserve help.

“There’s an equity question here,” said Rep. Ed Perlmutter, another member of the coalition. “The discussion has got to be, what’s the benefit to the guy next door who is struggling to pay the bills, is paying the bills and isn’t filing for bankruptcy?”

Third party problems

While the New Democrat Coalition is seeking more help for struggling homeowners, banks are lobbying for less. Last year, a banking industry lobbying effort managed to kill a similar bill.

They are still advocating that protection and aid only be extended to homeowners with subprime or other “exotic” loans.

Compromise

The mortgage industry argues that the costs the could incur from reducing existing mortgages will only cause them to have to raise interest rates for future borrowers.

Bank lobbyist have gotten House Democrats to agree to limit the measure to loans that have already been made. Also, borrowers must show they tried other ways of modifying their loans.

What now?

The House vote on the bill, which was originally scheduled for today, has been pushed to Tuesday. The Senate is expected to vote on the measure in about two weeks.

Two companies are working on making these signs less common.

Homeowners considering getting instant payday loans to cover their mortgage so they don’t get evicted might be able to hold off.

Moratorium on foreclosures

Payday loans are great for keeping your credit in good standing if you use them to make mortgage payments on time. However, if you are facing foreclosure, it’s probably too late to be worrying about your credit.

If your mortgage is held by either JPMorgan or Citigroup, you don’t have to worry about foreclosure, either. At least not for a month. So instead of getting instant payday loans, start saving now to make sure you have the money to keep your house next month.

Banks wait for word from Obama

JPMorgan Chief Executive Jamie Dimon says the company will not foreclose any owner-occupied homes before March 6. Citigroup won’t foreclose mortgage loans on homes that are the borrower’s primary residence.

Citigroup’s moratorium will last through March 12 or until the White House has finalized the loan modification program, whichever comes first.

Making an example

Fannie Mae and Freddie Mac, which are government-controlled, have already stopped evicting homeowners from foreclosed homes. The companies will continue to hold off through the end of this month.

Government intervention

Barack Obama’s administration is currently considering working on the loan modification deal. The program would use taxpayer money to lower monthly payments for homeowners facing foreclosure. However, that group of people is still growing.

More than 274,000 U.S. households received at least one foreclosure-related notice last month, according to RealtyTrac Inc.

Not everyone will be able to receive help, and it will be tough to decide who qualifies.

Stay off the street

For homeowners who are facing foreclosure, instant payday loans can keep you from becoming homeless, and there are usually no credit checks.

Related articles

• U.S. home foreclosure notices hit 274,000 in January (cbc.ca)
• Fannie and Freddie suspend foreclosures (money.cnn.com)
• Foreclosures Fall From December To January (huffingtonpost.com)
• White House may move to buy mortgages (msnbc.msn.com)
• Streamlined Loan Modification Now Available (azmortgageguru.com)
• Mortgage Modification Program (kristalsellsdenver.com)

As demand for payday loans continues to rise, demand for houses continues to fall.

Home prices are sinking lower and lower, and for some people that might make the “buy low” part of the old investment adage ring in their heads. However, MarketWatch has come up with a list of pretty compelling reasons why you shouldn’t buy a house in 2009. Here are a few.

Uncomfortable without a cushion

For any average American, the down payment on a house and other costs associated with buying will wipe out their savings account. MarketWatch argues that now is a dangerous time to be left without some extra cash.

“Given the recession and the fragile economy today … it’s wise to have a cushion to land on in the event you get hit with a financial broadside,” MarketWatch says.

You don’t want to end up needing payday loans in a financial emergency later because you spent your financial cushion.

Job insecurity

We have all seen the headlines every day announcing big layoffs at big companies as well as smaller ones. Perhaps you feel secure in your job because you are protected by a union contract or because the company you work for is doing well financially.

However, union contracts can change. As the recession deepens, more companies are being affected every day. Buying a home is an extremely long-term commitment. At this point not even experts know where the economy will be in a year or two years or even five years. Having a mortgage to pay off is not an ideal situation to be in if you lose your job.

Prices are still dropping

Home prices have been on the decline for some time now, but there is no sign of them leveling off yet. If you buy a home this year chances are it will depreciate even farther in value after you buy it. Granted, there is a good chance it will go back up later and you will end up making money in the long run. However, if you are looking at buying a home as an investment opportunity, it is best to wait  until prices are at their absolute lowest.

So don’t run out and get payday loans to cover your fees so you can shore up a mortgage; wait it out.

Amid record foreclosures, home prices continue to fall at record rates.

Homeowners who lost their homes or fell behind on mortgage payments may be comforted to know that no credit check payday loans can help them in times of financial crisis. However, homeowners who are still paying off their houses probably won’t like what I have to say next: The value of your home has fallen, and it is still going down.

Home prices in the U.S. broke records in November, when they fell 18.2 percent. That is the largest month-over-month  drop the U.S. housing market has seen.

A new reality

Composite data from cities that Standard and Poor has tracked show that home prices have fallen every month for 28 months. It used to be that homes represented good debt, meaning debt that would later create a profit or return on an investment. No credit check payday loans can represent a lucky break for people who have fallen victim to bad debt and gotten black marks on their credit reports.

However, now it seems that homes are in the same boat as cars: they drop in value as soon as you drive them off the lot. Or, in the case of homes, they drop in value as soon as  you sign the mortgage papers. Now would be a great time to buy a home in cash, but we all know that about 1 percent of the population has enough money to do that.

A little help

For homeowners who are in danger of foreclosure, there is a glimmer of hope. The Federal Reserve today adopted some new policies to prevent foreclosures. Specifically, the Fed will modify mortgages that were “rescued” from Bear Stearns Cos. and American International Group Inc.

For people with touchy credit who need to be rescued from overdrawing their bank accounts, no credit check payday loans can save the day.

Experts are suggesting financial education as a means of long-term national economic stability.

With options like payday loans, credit cards and all kinds of lending sources out there, some analysts are wondering whether financial advice should be part of the effort to repair the economy.

An economist and columnist for the New York Times, Robert Shiller,  points out that Americans making bad financial decisions was a big contributor to the economic crisis. The blame game has shifted responsibility between so-called “predatory lenders” and people who took out mortgages and other loans they couldn’t afford.

He suggests that a good step toward preventing another economic crisis is to fund more government programs that help people become financially literate.

Existing programs and efforts

There already are a few government-funded efforts in place geared toward financial education. These include the Office of Financial Education and the Advisory Council on Financial Literacy. Both programs mainly distribute financial education through outreach to schools.

Some states have taken it upon themselves to require financial literacy as a high school graduation requirement. So it appears that efforts are being made to ensure that the next generation will be more financially literate in the future. But what about the current generation? They aren’t going anywhere any time soon. And many of them don’t even understand how payday loans work.

Help for everyone

Shiller suggests that the government should subsidize financial advise because most people get their advise at the same time they are getting a sales pitch. People who took out subprime mortgages relied on the advise of the people who were profiting from those mortgages, and catastrophe ensued.

This is why Shiller suggests that there should be financial advise available from parties that are not involved in financial transactions. With con artists, defrauders and financial predators out there, the government could help keep individuals’ finances stable. This, in turn, would help keep the nation’s finances stable.

More reasons to educate the  masses

The Federal Housing  Administration is in charge of making sure that mortgage lenders are legit and ethical. However, the FHA admits that it is understaffed and unequipped to screen the high number of lenders who are applying for government approval.

Furthermore, if the government employes financial advisers, that will create jobs and help stimulate the economy. So, in regard to addressing the withering economy, it’s a win-win.

Obama’s economic plan

Barack Obama has said many times that his economic stimulus package is designed to stimulate the economy in the short term as well as build financial stability in the long term. If funding is included to employ public financial advisers, the initiative will achieve both long-term and short-term affects. it will immediately create jobs for those financial advisers, and it will give individuals the tools to ensure their own long-term financial stability.

Educating people about their options, such as teaching them the benefits of using payday loans instead of credit cards, would certainly make for a more financially healthy nation as a whole.

Showing the money

On the same day House Democrats unveiled their version of the economic recovery plan, Congress agreed to release the remaining $350 billion slated for bailout money to ease the mortgage crisis.

Barack Obama secured his first legislative victory before he even took office when Congress agreed to allow access to the remaining $350 billion in TARP funds.

Thought Barack Obama is not officially president yet — he will be inaugurated Jan. 20 — congress released the money to him. The money is part of the Troubled Asset Relief Fund.

Narrow victory

The vote in the Senate on whether to release the bailout money was close. But in the end, the movement to release the funds passed 52-42. Many Senators on both sides of the asile sought to block the funding because they were angry with the way the first half of the TARP funds hand been handled.

The Treasury did not carefully track where all of the funds went. Also, the majority of the home loans that were modified after the bailout ended up in default anyway.

Avoiding crisis

Passage of the measure to give Obama the bailout money mean an awkward situation has been avoided. Obama requested the funds last week. After many Democratic leaders in Congress expressed the desire to vote down the motion, Obama threatened that he would veto the vote to block access to the funds the day he became president.

In other financial news, obama has said that when he takes over office he is considering placing federal restrictions on the payday loan industry. A few states have already put interest rate caps on payday lenders, and Obama wil consider whether to make those caps nationwide.

Bringing change

Obama has promised that the remainder of the TARP funds will be handled differently than the first half. He will require more stringent monitoring of where the money goes. He has also said that a large portion of the money will go toward preventing foreclosures.

he also assures the public that the process will be transparent, and that American citizens will know  what is being done with the bailout money. Democratic leaders are also calling for regulation to limit the amount of money tha tgoes to salaries and compensation for financial institution executives.

Senators chime in

Democratic Senator Claire McCaskill supported handing the money over to Obama, saying she is giving the incoming administration the benefit of the doubt. But Republican SenatorJim Inhofe was vehemently against it, calling the vote “egregious.”

Casting their last votes of their Senate careers, Vice President-Elect Joe Biden and Secretary of State-Designate Hillary Clinton supported giving Obama access to the funds.

Obama’s two cents

Obama said he was “gratified” that the vote went in his favor> he renewed his promise to handle this half of the TARP funds more responsibly than the Bush administration had handled the first half. He said he will proceed with the plan in a “new and responsible way.”

This article was provided by your payday loan source.

History tries to repeat itself

The Federal Housing Authority says it doesn’t have the resources to police predatory lenders. Officials from the Department of Housing and Urban Development say the FHA needs more staff, better technology and added legal authority if it is going to stop another wave of shady lending practices from hitting the country.

The Troubled Asset Relief Program, which so far has spend $350 billion, was put in place to aid lenders by giving them federal funds. The FHA is charged with screening people who apply for bailout money or otherwise try to get involved with federally backed loans. However, recent examples have shown the FHA is ill-equipped to do so. Too bad a payday loan can’t help.

Finding ways around the law

The first example seems to be simply of slipping through the cracks. An FHA lender in New York was debarred five  years ago. That lender was somehow able to go back into the business, and it continued using the same fraudulent practices that got its license taken away in the first place.

A lending company in Arizona had its license suspended and then filed for bankruptcy. The company promptly resumed operations by putting the company under a different owner’s name.

Evaluating evaluators

The FHA isn’t just in charge of screening lenders. It is also responsible for screening appraisers, people who assign value to homes or property. Right now the government’s list of appraisers still names 199 who have been disciplined by the states. The list also includes 3,480 with expired licenses.

As home prices continue to fall and property taxes continue to rise, homeowners are challenging the appraisal value of their property. Appraisers are being overloaded with requests for re-evaluating a home’s worth. The more appraisers are hit up with these requests, the more bogged down the FHA will become.

Get on the right track

In my opinion, it is imperative that these organizations immediately get the staff and the technology they need in order to be able to properly screen requests for federal funds. Obama has requested access to the remaining $350 billion in TARP funds. If the FHA’s problems aren’t fixed before the government starts handing out money again, Americans will be vulnerable, once again, to predatory lending practices. And this time it’ll be our own government paying those shady lenders.

The first step toward fixing these problems comes with double benefits: Hire people! If some bailout money is used to pay more staff it will have the added affect of giving jobs to part of the 7.2 percent of the population that is unemployed right now. Add that to preventing more of the same mistakes that caused the mortgage crisis in the first place, and we have a winner. I think getting the proper technology for these organizations would be a worthy investment, as well.

This article was brought to you by your payday loan source.

Many on Main Street don’t recover after rescue

After $350 billion was pumped into relieving the mortgage crisis, the majority of homeowners who modified their loans still ended up in default, CNNMoney reported last month.

The original bailout plan seems to be failing homeowners more than it is helping them. However, that’s not stopping Federal Reserve Chairman Ben Bernanke from asking the government to throw more money at struggling financial institutions.

Fighting debt with debt

In 2008, banks began modifying home loans in the midst of a high level of foreclosures. Within six months, 53 percent of the loans that were modified in the first quarter ended up back in default. Fifty-one percent of the loans modified during the second quarter ended up back in default within six months as well.

Obama has requested that Congress allow access to the other $350 billion that was slated for the Trouble Asset Relief Program. Bernanke is saying that additional capital will likely need to be injected into financial institutions in order to provide lasting economic recovery.

Where would extra money go?

In order for the economy to recover, Bernanke says, troubled assets must be removed from banks’ balance sheets. They also need more debt guarantee, he says.

He conceded that better regulation and new global policy needs to be put into place. But he also stressed the need for immediate action to keep financial institutions and the economy from further turmoil.

“It’s good advice in general if there’s a fire burning, you try to put it out first, and then think about the fire code,” Bernanke said.

He also recommends that the Fed leave its key interest rate near zero for now. The Federal interest rate does not directly affect the payday loan industry, but some states are pushing for laws to set interest rate caps for short-term loans.

Moving ahead

Evidence shows that the initial $350 billion in bailout money is not helping the majority of homeowners. Furthermore, the Treasury was lax in keeping track of where the money was being spent. A Congressional panel last week criticized the Treasury for both ineffective and vague use of the bailout funds.

Obama has assured the public that he plans oversight reform to be applied to the remaining funds. He also want to toughen conditions placed on financial  institutions that receive rescue money.

More money, more problems

Bernanke made his statements about needing more bailout money at the same time he said he believes that Obama’s $800 billion stimulus plan will be effective, to an extent. At this point, none of the stimulus package funds are slated for helping financial institutions.

In short, at this point the remaining $350 billion in TARP funds is the only money dedicated to continuing to fix the mortgage crisis. Both Republican and Democratic lawmakers have expressed frustration with the way the initial $350 billion was spent and monitored. Democratic leaders have made it clear that reducing foreclosures must be a primary goal in using the remainder of the funds.

Check back with your payday loan source for more news on the economy.

The Troubled Asset Relief Program was meant to aid homeowners in avoiding preventable foreclosures, the panel says, and there is no evidence that the bailout money went toward that effort.

Poor bookkeeping

The $700 billion program, TARP, was approved in mid-October. The oversight panel, headed by Elizabeth Warren, says the Treasury hasn’t even released a strategy for stabilizing the financial system.

“Treasury needs to be clear as to what, if anything, it has done,” Warren said.

Warren says Congress gave $350 billion to the Treasury and specified it was meant to help borrowers refinance their homes. The Treasury set up the system and did not put in place a tracking mechanism to monitor whether it was meeting Congress’ requirements. Homeowners, with mortgages that exceed the value of their homes, may still be taking out payday loans to pay their mortgage so they don’t get thrown out of their houses.

The other half

In order to access the other $350 billion, the Treasury needs congressional approval. Whether the Treasury requests these funds remains to be seen. And whether they receive the funding will be up to the discretion of President-elect Obama’s administration. Obama’s economic team is now overhauling the remaining fund to speed the flow of credit to consumers.

The initial deadline for approval for bailout money was Dec. 31. The Treasury has extended the deadline to Jan. 15, five days before Obama’s inauguration. This gives regulators extra time to process and approve requests, and it potentially gives more financial institutions time to apply for funding. So it will likely be a while before we find out just exactly what the Treasury did with the money.

Hello? Anybody home?

To aid in drafting its report, the panel had submitted 45 questions to the Treasury. Several of the questions were not answered, according to the panel.

A Treasury spokesman gave no comment in response to the panel’s report, which was released today. He said he had not seen it.

Keeping an eye out

The Treasury apparently has nothing to say in response to the report at the moment, but sometimes these things take time. I’ll be watching the news for a response, so check back for updates.

My thoughts? It may be too late for the bailout funds to help average Americans keep their homes. Sure, home foreclosures have gone down since TARP was approved, but is that just because so many people have already been kicked out? The funding still may be able to help some people, but now that the deadline to approve institutions for funds has been extended, there are probably some panicked homeowners out there taking out payday loans so they can pay their overpriced mortgages.

The official news is finally in regarding the recession that the American economy has been enduring.

Experts with the National Bureau of Economic Research said that the U.S. has been in a recession since December 2007.

This may not sound like news to most as many have likely felt the impact of America’s latest recession in their day-to-day life already. Many consumers have had to rely on payday loans or other financial strategies a time or two just to avoid excessive late payment penalties on their home mortgages; that is if they still have a home.

Foreclosures are being reported in record numbers, bank fees are rising to cover the lost revenue from mortgage defaults, and unemployment numbers are up from failing businesses closing their doors, or downsizing to brave the pending storm ahead.

Will You Lose Your Job?

What started as a mortgage crisis may become like that of the Great Depression or worse!

It is reported that over 1.2 million jobs were lost in the first ten months of 2008 and that number continues to grow rapidly as businesses fail to cope with the ripple effect of the mortgage crisis.

November, the eleventh month of 2008 is showing an estimated loss of 325,000 jobs. This is a staggering number which shows that this recession may be far from over.

Companies Are Crashing

Below is just a small list of the many well known and reputable businesses that have been forced to downsize or close their doors due to current economic pressures.  They couldn’t get bailout payday loans because they weren’t on Wall Street.

Circuit City (filed Chapter 11)

Ann Taylor -closing 117 stores

Lane Bryant, Fashion Bug, and Catherine’s – closing 150 stores

Eddie Bauer- closing 27 stores

Cache – all stores closing

GAP – all stores closing

Footlocker – closing 140 stores and more after January

Zales – closing down 82 stores and 105 more after January

Disney closing 98 stores and more after January

Linens and Things – all stores closing

Movie Galley – all stores closing

Pep Boys- closing 33 stores

Sprint / Nextel closing 133 stores

Ethan Allen – closing 12 stores

Wilson Leather – all stores closing

Sharper Image – all stores closing

K B Toys – closing 356 stores

And many more….

Could another Great Depression be just around the corner?

The current economic downturn is one of the longest since the Great Depression of the 1930’s. Only two of the past 10 recessions since the great depression have lasted longer than a year. Is a depression like unto the Great Depression likely to occur again and if so just how bad will it be? We will attempt to answer these questions below.

Is an Economic Depression Possible?

According to U S news,

By any measure, our current economic suffering pales in comparison with what the nation endured from 1929 through 1939. Still, most economists are predicting a long, difficult period ahead. Could it eventually become a depression? It’s possible — but not likely.

If so, how bad will it be?

A Depression Today Would Be Worse Than That of the Thirties

When comparing societies today with that of the great depression era, we have to take into consideration how society has shifted from agricultural farming to the big cities.

At the beginning of the 20th century, 95% of the population was involved in agriculture or worked their own lands for some, if not most, of their provisions. Today the roles have been reversed with only five percent of the population in agriculture and 95% in the cities. Because the Great Depression effected primarily business and industry, it was those in the cities who were affected the most. The same would occur if a depression on the same scale were to hit our economy today, and in that case, payday loans couldn’t even come close to covering the effects.

The short answer to this question is that a Depression today would be a lot worse.

What to do in the meantime?

Until elected and government officials try to work their magic to soften the blow or try and pull us out of the recession we are currently in, we will have to wait and hope for the best.

White House Deputy Press Secretary Tony Fratto said that even though the recession is now official, it is more important to focus on the steps being taken to fix the economy.

“The most important things we can do for the economy right now are to return the financial and credit markets to normal, and to continue to make progress in housing, and that’s where we’ll continue to focus,” he said. “Addressing these areas will do the most right now to return the economy to growth and job creation.”

It would be considered well advised however to take steps to prepare for the worst such as stocking up on non perishable food items in the event you may need them later due to job loss or a real depression. This is sound advice no matter what the time or season.

Also, as in any crisis there is opportunity. This may be the chance many have been waiting for. With stocks hitting lows it may be the best time to buy.

If an animal isn’t adopted soon enough, it will have to be put down.

People and pets have been left stranded by the mortgage crisis, but payday loans and loving families can be a solution for people and pets. Animal shelters across the country have seen a significant increase in abandoned pets since the beginning of the mortgage crisis. Foreclosures are forcing people from their homes, and these people are then forced to make difficult decisions about what to do with their pets.

Limited Options

Because of the subprime mortgage crisis, foreclosures are on the rise across the country. Obviously, the people that foreclose on their homes are already in a great deal of financial trouble. Caring for a pet is just one more thing for them to worry about. When someone’s house is foreclosed, more often than not, that person is forced to downgrade to an apartment. Most apartments do not accept tenants with pets. Because people are unable to afford their pets and not allowed take them along to their new home, the pets are abandoned. Police often find pets that are left behind at a foreclosed home, and other animals are left to wander the streets.

When pets are left behind they become scared and confused. Some animals die because they’ve been left unattended without food and water for too long. Other animals, dogs in particular, become a hazard to society because their fear manifests as aggression. These dogs often have to be put down by animal control units.

Animal Shelters

Although it can be heart wrenching to part with one’s pet, it is a much better solution for the pet to be brought to an animal shelter than to be abandoned. At least if an animal is brought to an animal shelter, it has a better chance for survival. However, a pet’s future at an animal shelter can be bleak as well. If an animal isn’t adopted soon enough, it will have to be put down.

How You Can Help

If you are in the process of losing your home, and you have pets, be sure to bring them to an animal shelter. Abandoning your pet is the worst thing you could do. In addition, if there is a no-kill animal shelter in your area, it’s best to bring your pet there because it will guarantee your pet lives until it is adopted.

If you aren’t in any danger of losing your home, you can still help. The majority of animal shelters are overcrowded. More animals are being brought in than are being adopted. If you have the resources to adopt and properly care for a pet, you should consider taking that step. Animals from your local shelter or humane society can make the best pets. If you buy a dog from the humane society it would cost you less than at the pet store or from a breeder, and you would be doing the country a favor. An adopted pet is a great idea for a gift, especially during the holiday season. Adopt a pet, and save a life.

If You Need Help

People and animals are being negatively affected by the financial crisis. Abandoned pets have hope for a better life thanks to the loving people that have the resources to adopt shelter animals. However, if you’re in no place to adopt a pet and are feeling lost financially, there’s hope for you, too. Payday loans can be a short term financial solution to help you cover some of your costs. Abandoned pets have the hope of adoption, and you have help from payday loans.

(AP:COLUMBUS, Ohio) Democratic candidates in two high-profile congressional races in Ohio are pointing fingers over the mortgage crisis.

Your Payday Loans News Source Quoted With Edits From: Ohio candidates focus on predatory lending (INO News)

The Blame Game

If you’re a Republican, the country’s problems are no doubt caused by the Democrats. If you’re a Democrat, the country’s problems are certainly the fault of the Republicans. It doesn’t matter what the issue is, the Democratic and Republican parties tend to point fingers at the opposing party for current political problems. The same is true in Ohio, where the Democratic candidates of two crucial congressional races are blaming their Republican opponents for failing to put an end to predatory lending.

Beware of the predators

A Difference of Opinion

Predatory lending is frowned upon by both parties. However, the Democrats want to eliminate payday loans entirely, while Republicans want to maintain the people’s right to financial freedom. So in this case, the Republicans and Democrats agree that predatory lenders should be reined in, but their opinions differ on how much involvement the government should have in people’s personal finances.

Republicans and Democrats will continue to blame each other for the nation’s problems because they will never see eye-to-eye on all the issues even when it comes to payday loans.

Mortgage bankers are discussing the future of their industry.

Your Installment Loans News Source Quoted With Edits From: Mortgage bankers meet in SF (KGO-TV Bay Area)

Repairing the Mortgage Industry

On October 19th, 2008 over two thousand bankers from across the country met at Moscone Center West in San Francisco for a national conference. First on the agenda was coming up with ways to improve the mortgage banking industry. The bankers discussed the prohibition of predatory lending and the elimination of foreclosures. David Kittle, incoming chairman of the National Mortgage Bankers Association, said he is optimistic about the future of the housing market.

Look into the Crystal Ball

In my crystal ball, I see... Installment Loans

Davide Kittle may see a bright future for the housing market in his crystal ball, but with the way the economy is right now, it’s hard to look that far ahead. Most people have economic and financial issues that they have to deal with right now and they could use installment loans. It’s too much to think about buying a house in the next few years, when you’re struggling to pay bills, buy groceries, and fill up your gas tank. Not to mention, if an unexpected cost pops up.

Then what? Maybe your long term goal is to own a home, and if things start looking up, that can be possible in the future. But if, for right now, covering all your costs is a constant battle, you can always apply for installment loans to help shoulder the burden of bills until you get your paycheck.

The state agency that provides mortgages to moderate-income families in Ohio will slash its home-loan volume by as much as 75 percent after $150 million in bonds failed to sell on Wall Street this week, the latest domino to fall in the mortgage meltdown.

Your Quick Payday Loans News Source Quoted With Edits From: Mortgage crisis stops down-payment help (The Columbus Dispatch)

Mortgage Crisis continues to put pressure on the economy

As the nation is still trying to understand just how much $750 billion dollars is we continue to see more fallout from continuing mortgage crisis.

Many, Americans have already had there credit lines lowered as banks take precautionary actions to protect their financial affairs. This comes at a time close to the holiday shopping season which may bring further abuse or more people taking out quick payday loans in our already battered economy.

“Americans take advantage of their credit lines more during the fourth quarter of the year than at any other time” said one local business owner ailing over the effects the economy has had on her bottom line.

To make matters worse, the mortgage crisis has now stopped down payment help for those who are trying to get into homes. This cascading ripple effect continues to put more pressure on the fragile state of our economy. And the crisis is far from over.

A look back on our economic past.

Our economy hasn't seen nothing yet.

It’s widely believed by experts that the trouble we have seen up to now are just the beginning. There is far more to come. Talks of global recession and or another great depression are becoming more real each day. For most of us it’s hard to imagine tougher times. Some might remember the 16 month recession back in 1982 when the stock market saw a twenty percent drop and unemployment rates peaked at 9.7%. Between 73-75 their was also a 16 month recession that saw a 29% drop in the market and 9% unemployment rates. This one was better remembered by the gas shortage. At least in our time we have quick payday loans to cover financial emergencies.

Count your blessings

Current national unemployment rates are at 6.1%. It’s possible that we may brave the store. 6.1 percent pales in comparison to the 31.7% unemployment rate of the great depression. Let’s hope the current status of our economy isn’t downgraded.

In his October 14 analysis of Ohioans for Financial Freedom’s anti-Issue 5 television advertisement “Washington Mess,” Siegel takes a number of thinly veiled shots at the payday loan industry. If he were on target, perhaps his work would inspire me to say something other than, “You fill me with inertia.”

As it stands, here are a few shells that Siegel loads in the chamber. However, he proceeds to leave his gun at home:

The ad’s attempt to link the national mortgage crisis to the payday lending rate is absurd

You’re correct that the 1968 Truth in Lending Act (TILA) required lenders to disclose rates, but that isn’t the issue here. If anything, the mortgage lending crisis has been and continues to be much worse than anything to come out of the payday advance industry.

Home buyers were promised that they would be able to refinance their adjustable rate mortgages for more favorable terms. As housing prices fell, refinancing became much more difficult. Defaults and foreclosures were soon to follow, as borrowers could no longer afford their high mortgage payments.

To its credit, the ad does lead off with this:

Washington regulators who brought us the mortgage mess are making a mess of Ohio’s economy

Our government could have quelled the mortgage crisis years ago, but didn’t. Not only that, but important figures like Congressman Barney Frank (D) of Massachusetts’ 4th District even advised that people invest in Freddie Mac and Fannie Mae. He claimed the mortgage lenders were “not in danger” on July 14, 2008.

Then the bottom fell out.

Mind you, I don’t normally agree with Bill O’Reilly of Fox News, but here’s a great “discussion” he had with Frank about misleading the public when it comes to the mortgage crisis:

Clearly, if Washington regulators feel the need to stick their noses in where they don’t belong and regulate away emergency loans that payday advance lenders offer, we’re in for a bumpy ride. As the ad encourages in closing:

In the economic storm, keep all your loan choices

And don’t be fooled by the APR shell game

OK, I get it. The Federal Reserve insists on making lenders and credit card companies list their rates as annual percentage rates. For a credit card, home loan, vehicle loan, student loan or any other large-scale loan, it’s appropriate to express them under the annual rate banner.

However, payday advance loans do not fit the “apples-to-apples” comparison that the Fed and journalists like Jim Siegel seem to enjoy. They are two-week loans. If the fee is $15 per $100 loaned, that’s 15 percent interest you’ll owe, not 391 percent for an entire year (which is a superfluous stat). No one loan can be held that long, and plentiful evidence exists that about 78 percent of customers use no fax loans once per year to as high as once per month. In addition, more than half of customers take loans six or fewer times per year (all data per the Community Financial Services Association). That’s hardly a vicious “cycle of debt,” considering that most loans are paid on time, typically within a two-week period.

Here’s the deal

Considering the above information, how could the “average” customer of payday loansbe someone who takes out more than 12 loans a year, as Siegel suggests. Payday advance loans are two-week loans that the majority of consumers pay off when due. Hence, they aren’t borrowing more than they can afford. How ya like them apples, Mr. Siegel?

Federal bank regulators fought over turf with state agencies while America’s mortgage lending system grew increasingly unstable and then fell apart.

Your Online Cash Advance Source Quoted With Edits From: Mortgage system crumbled while regulators jousted (Seattle Post-Intelligencer)

The Mortgage Crisis. Who’s To Blame?

Everyone is up in arms and pointing fingers at who and what has caused the mortgage crisis that we and our entire economy is currently enduring. Wall Street and its firestorm selling of bad mortgage securities is primarily what has got the blame for our trouble yet there is some interesting information that has come to light that shows they weren’t alone.

A Testimony to Federal Incompetency

The article linked above gives a chilling testimony to the failure of our government to properly regulate our financial infrastructure. It seems that many of these predatory lenders were pursued locally by state officials before being told by federal regulators to politely take a hike. This left state officials with there hands tied. Much like an emergency situation can leave your finances tied up requiring you to take an online cash advance.

With the rise of predatory lending the last few years, people have suffered great losses as they have entrusted there greatest asset, their home, into the hands of those who have manipulated policy, procedure and paperwork for their own personal gain.

Freedom vs Regulation?

Is regulation necessary to protect American families?

Despite the controversial subject of government regulation, many feel it is needed even though in tends to clamp down on many civil liberties among consumers and business owners

Predatory lending has yet to be truly defined in the law books to date but legislation is in the works so as to protect consumers from being fraudulently coerced into an agreement that is not to there advantage.

Until then it is strongly advised that consumers seek multiple opinions when pursuing their financial options as one lender is likely to find problems with another lender to obtain the consumers business.

Eventually, the wrinkles will get ironed out but until then we have a responsibility to voice our concerns and our opinions as to when and how much government regulation we need to protect ourselves while keeping our freedoms in tact.

Remember you can iron out the wrinkles of your budget by applying for an online cash advance.

Bank of America Corp. agrees to nation’s largest mortgage-workout program to settle charges of lending abuse. An estimated 125,000 Californians who are struggling with risky mortgages from Countrywide Financial Corp. may get their loans modified and payments reduced under a program to be announced today.

Quoted With Edits From: Countrywide mortgage pact may be worth $3.5 billion to California loan holders (Los Angeles Times)

The Largest Predatory Lending Settlement In History

$8.7 billion dollars. That’s the number for what is now the largest settlement in history against lenders.  Countrywide financial Corp, the company against whom the lawsuit was brought, was claimed to have taken advantage of hundreds of thousands of homeowners by raising fees, manipulating paperwork and giving access people access to loans of which they couldn’t possibly afford, which in some cases resulted in more people taking out payday loans.

The settlement is part of a plan to examine over 400,000 loans across the nation, 125,000 in California alone. Bank of America who recently purchased Countrywide has agreed to settle charges brought against Countrywide by several state, and no they won’t be using payday loans to handle the matter.

How will the settlement aid the victims?

The program will help restructure Countrywide’s mortgage portfolio, reworking loans to make them more affordable to the victims. This may include taking customers on variable rate loans and moving them to fixed rate loans or reducing their interest rate and or principal.

Bank of America who acquired Countrywide for $2.5 billion in stock last July has be very cooperative in it’s approach to handle the bad business practices of it’s new investment. The increased number of mortgage defaults that countrywide has had has left Bank of America with their first quarterly loss in twenty five years.

This just serves to remind us of the troubled state of our economy has been undergoing since the housing bubbled popped between 2005 -2006. Consumers can expect more difficulty in obtaining housing loans as banks tighten the qualification criteria for doing so. The so called “credit crunch” that we are currently undergoing has led many banks and other creditors to lower the credit lines of there current customers. Perhaps, to limit their liability as economic pressures force people to spend funds they don’t have and then rely on payday loans to make ends meet.

Countrywide Financial has agreed to the largest program ever to modify home loans as part of a settlement with officials in 11 states, including California. Countrywide, the nation’s largest lender and loan servicer that was recently acquired by Bank of America, had been sued by the states over what they said were predatory lending practices.

Your Payday Loan News Source Quoted With Edits From: Lender settles mortgage lawsuit (San Diego Union-Tribune)

And the Winner Is…

Countrywide Financial Corp. King of Predatory Lenders

How would you like to own the title of the nations biggest predatory lender. This title has been given to
Countrywide Financial Corp who recently agreed to settle with officials in eleven states including California. The settlement is the largest settlement in history against a predatory lender topping $8.7 billion dollars.

Bank of America who recently acquired Countrywide Financial Corp, has been more than cooperative in the settlement and will be restructuring the loan portfolio of Countrywide. The funds from the settlement will go to help over four hundred thousand victims by reducing the principal amounts and interest rates on their existing loans. Many of the victims who are on variable rate loans will be switched over to fixed loans.

This resolution comes at a good time as the mortgage crisis sweeping the country has badly damaged the economy. Many home owners who purchased their homes at the height of the market between 2005-2006 currently owe more on their mortgage ( that a payday loan won’t cover) then their homes appraisal value.

Is There An End In Site?

Home prices aren’t expected to rebound soon, but there is some optimism that if the democratic nominee Obama becomes president the country may pull out of it’s recession a little sooner. This optimism is primarily based on the history of Wall Street’s four to six percent gains after the election of a democratic president .

Advising consumers to be frugal with there incomes at this time seems to be the most appropriate and prudent course of action but may also be counterproductive. The current economy is betting on it’s consumers to spend money as normal through out the holiday season thus keeping their bottom lines out of the red zone and from needing a payday loan.

We can only wait and see!