Taxpayers should realize a profit when the government sells its remaining shares in Citigroup. Image from Wikimedia Commons.

After being lent billions in emergency loans, Citigroup may be the model that firms receiving bailouts should follow. Citigroup will end up turning a profit for taxpayers when the Treasury sells its shares. The company stands to have produced a net gain of $12 billion or more for the government.

Emergency loans to Citigroup pay off

More than two years ago, Citigroup asked the U.S. Treasury for some hefty emergency loans, saying it direly needed some instant cash or the firm would perish. The bailouts, and the Troubled Asset Relief Program or TARP, have been the subject of a lot of controversy. However, a recent announcement ought to please even the most ardent fiscal conservative. The Treasury will be selling the rest of its shares in Citigroup; it holds more than 2 billion common shares in the company, according to USA Today. The shares were given to the Treasury as a condition of receiving secured loans. If everything goes according to plan, taxpayers stand to profit about $12 billion from the loans to Citigroup.

Citigroup would net Treasury a 27 percent profit

The government held about 7.7 billion shares in Citigroup as a result of the bailout. The Treasury had sold 5.3 billion of those shares as of Monday. The remaining 2.4 billion shares are worth about $4.35 a piece as of Monday, and the sale of those remaining shares should net a quick payday of about $31.8 billion, plus another $2.9 billion in interest and dividends. Combined with the payments Citigroup has already made, more than $20 billion, the Treasury should take in an estimated $57 billion for the $45 billion in loan cash and guarantees to Citigroup. That’s a simple profit of about 26.7 percent.

Model bailout

If the sale of Citigroup shares by the Treasury does result in a profit of that much, or even close, that would make Citigroup a model bailout company.  Ideally, the shares of other bailed out firms, such as GM, will have a similar outcome.

Sources

USA Today

Fannie Mae and Freddie Mac made some investments that regulators are now questioning. Image from Flickr.

This morning, the Federal Housing Finance Agency announced that it will be investigating the investments of mortgage companies Freddie and Fannie. The subpoenas issued cover files on the secured loans and bank loan information used in securities purchased by the companies. The FHFA believes that some of the liability for these securities may be with the sellers.

Fannie and Freddie’s investments

The investments made by mortgage lenders Fannie and Freddie during the housing boom included many mortgage securities. These “packaged” securities saw huge drops in value when the market crashed. Many of these packaged securities included mortgage installment loans for people with bad credit. There is a belief that Fannie and Freddie fanned the flames of the bubble by being so willing to purchase these securities.

Subpoenas for loan information

The Federal Housing Finance Agency, which recently took over control of Fannie and Freddie, has issued 64 subpoenas to sellers of these poor credit loans. The agency has been attempting to get information on these loans for a while, but has encountered resistance. There is some concern that the sellers of these packaged securities obscured the reality of the risk behind the loans.

Possible result of the loan subpoenas

The subpoenas issued to sellers of these debt loans seek to determine whether some information was not shared. If the loan documents do reveal that information was hidden, the Wall Street firms that sold the securities could be on the hook. Thus far, Fannie and Freddie have lost more than $145 billion of taxpayer money. If there was obscured information or lies in the loan documents, the lenders might be asked to reimburse the taxpayers for money lost because of these loans. The most difficult thing will be actually recovering money, since many of the lenders offering these quick cash loan products are now out of business.

Is your hometown one of the Money Magazine "Best Places to Live?" (Photo: Flickr; Allen Armstrong)

It’s time for this year’s Money Magazine “Best Places to Live,” and the fact that small towns dominate the list of 100 cities should come as no surprise. Overcrowding in America’s modern metropolises presents a wide array of safety and logistical problems for families, not to mention exorbitant costs. CNN Money claims that the major criteria used to pick the Money Magazine “Best Places to Live” for 2010 included job availability, quality schooling, public safety, recreational opportunities and the x-factor of the city’s overall charm. Money Magazine “Best Places to Live” are intended to be America’s most family-friendly cities.

Top Five Money Magazine ‘Best Places to Live’

As a sneak peek at the full list of Money Magazine’s “Best Places to Live” for 2010, here are the five best places to live in America. Data provider Onboard Informatics provided CNN Money with stats on population size, median income, area sales tax and other categories to assist in the decision-making process. The overall rate of installment loan origination – whether they be secured loans or unsecured loans – is also below the national average in these cities, as job availability, average income and overall quality of life make financial emergencies somewhat less frequent.

1. Eden Prairie, Minn. (Pop. 64,000; Unemployment 5.1 percent)

One of several Minnesota cities in the top 100, Eden Prairie boasts rolling hills and access to many lakes. Outdoor activities are plentiful and schools rate highly. Economically, the city is four points below the national unemployment average and has a perfect AAA bond rating from Moody’s. With multiple major employers in town, it’s no wonder that Eden Prairie has as many as 50,000 jobs in town.

2. Columbia/Ellicott City, Md. (Pop. 155,000; 5.2 percent)

Diverse population, excellent schools, lots of affordable housing and an attractive downtown are just some of the best features here. The NSA and Fort Meade provide more than8,000 jobs, with thousands more to come. Baltimore and Washington D.C. are within commuting distance , where more job options exist.

3. Newton, Mass. (Pop. 82,000; 6.0 percent)

Boston College and Newton-Wellesley Hospital are major employers in the area, and a great deal of public transportation is available, thanks to Newton’s proximity to the Greater Boston area. Newton is divided into multiple “villages,” and each reportedly has its own New England charm.

4. Bellevue, Wash. (Pop. 124,000; 5.8 percent)

Microsoft, T-Mobile, Verizon and Expedia have brought new jobs to the area, making Bellevue more secure than nearby Seattle on the job front. Cultural activities and the natural beauty of forests and Lake Washington beckon families. While housing is far from cheap, everything else about Bellevue makes it a cinch for the Money Magazine “Best Places to Live” list.

5. McKinney, Texas (Pop. 125,000; 7.8 percent)

A downtown area filled with lovingly restored 19th century buildings pops out when one visits McKinney. And with employers like defense contractor Raytheon in town providing jobs, the need to drive an hour to Dallas for work is far from inevitable, even during the recession. Add lots of parks and hiking trails, and you have a very nice place to live.

Sources:

CNNMoney.com

What do some people do for residency in expensive places like London? They squat – legally!

Electric car noise will be mandatory when the Federal Motor Safety Act goes into effect to prevent collisions with the blind pedestrians and other pedistrians. Flickr photo.

Electric car noise has become a problem. The problem is that electric cars make no noise. Hybrid cars in electric mode at lower speeds are nearly silent. With more hybrid cars on the streets, and more to come, hybrid cars have become silent but deadly. More pedestrians, in particular blind pedestrians, are getting run over. Bills to require automakers to add noise to hybrid cars have bounced around Congress since 2008. But on Wednesday automakers and advocates for the blind presented Congress with a proposal to build in minimum noise levels for future electric cars as part of the Federal Motor Safety Act.

Blind must hear electric car noise

Electric car noise is moving to the forefront of automobile safety. CNN Money.com reports that a study done last year by the National Highway Traffic Safety Administration (NHTSA) showed that hybrid cars hit pedestrians more often than other cars in situations where the approaching car cannot be seen. The National Federation for the Blind said blind pedestrians using a guide dog or cane need to hear the sounds of traffic to cross streets safely. People with sight also rely on sound to gauge the distance and speed of oncoming cars.

More hybrid cars hitting the road

Electric car noise, or the lack of it, emerged as an issue when mass production of hybrid cars began in 2000. A 2009 study, reported on topbits.com concluded that drivers have used financing like secured loans to buy more than 1.6 million hybrids since then. In 10 years, the number of hybrids on the road grew from a dozen to more than 1.6 million. This considerable rate of growth is expected to accelerate as more automakers set out to create more hybrids. Total U.S. hybrid sales for April 2010, as reported by hybridcars.com, were 23,561 — a 1.2 percent increase from the month before, and an 8.4 percent increase from April 2009 from one year ago. Sales of the Honda Insight increased by nearly 14 percent from last month.

The Federal Motor Safety Act

Electric car noise advocates include The Alliance of Automobile Manufacturers, the Association of International Automobile Manufacturers, the American Council for the Blind and the National Federation for the Blind. The groups recommended language to Congress they would like to see included in the Motor Safety Act of 2010, a bill now moving through Congress that would update national auto safety rules. The need for electric car noise first emerged in the Pedestrian Safety Enhancement Act of 2008–only to become the Pedestrian Safety Enhancement Act of 2009. Now the electric car noise issue appears to be gaining traction.

Hybrid car manufacturers making noise

Electric car noise is already being considered by leading hybrid car manufacturers. However, Nissan is preparing to enter the hybrid car market a step ahead of the competition when it comes to electric car noise. Bloomberg reports that three years ago Nissan instructed engineer Toshiyuki Tabata to re-create the sound of an engine. Tabata spent 30 years as a Nissan Motor Co. engineer trying to make gasoline-powered cars quieter. Now he’s consulting music composers to make electric cars noisier — and safer.

The art of electric car noise

To create the appropriate audio for electric car noise, Nissan consulted Japanese film score composers. Tabata and his team cooked up a high-pitched futuristic sound reminiscent of the flying cars in “Blade Runner,” the 1982 science fiction film starring Harrison Ford portraying an android bounty hunter in a dark, dismal future Los Angeles.

“We wanted something a bit different, something closer to the world of art,” Tabata said.

To produce the electric car noise, a sound system activates automatically when the car starts and deactivates when the vehicle reaches 12 miles per hour. At higher speeds, wind and tire noise are typically enough to make the car detectable.

Regulating electric car noisemakers

Car electronics manufacturers have also developed electric car noisemakers. Tokyo-based Datasystem Co. makes a device selling for $140 that emits 16 different sounds including a cat’s meow, a cartoon-like “boing” and a human voice saying, “Excuse me.” The language proposed by the electric car noise advocacy group would regulate these products. Their version of the bill would have the NHTSA create a new safety standard for hybrid cars establishing a minimum sound required at low speeds.  Drivers would not be able to customize the sound of their cars the same way they download ringtones for cell phones. Instead, hybrid car manufacturers would provide an approved sound or set of sounds for a given make and model.

GM electric cars

One of the most anticipated electric cars is the Chevy Volt. GM’s electric car uses different technology than the hybrid systems that power vehicles from the foreign manufacturers. As reported on greencarreports.com, Chevy said the Volt will be equipped with a driver-controlled system that produces an “automotive quality sound” that pedestrians would instantly recognize, described as a series of low horn audio signals or cues. GM’s electric car can travel 40 miles on its battery. Instead of kicking in at a certain speed, the Volt’s 1.4 liter, 4-cylinder gas powered engine fires up when the battery is depleted. A generator linked to the engine creates electricity and powers the electric motor, extending the Volt’s range up to 300 miles.

InterMune has been given a bitter pill to swallow. Image from Wikimedia Commons

The FDA has been having a busy week, after approving Provenge for use and taking Tylenol to task, it has given InterMune a cold shot. InterMune had previously submitted a drug to treat pulmonary fibrosis for approval, and the FDA has turned InterMune down.  The drug, called pirfenidone, was denied by the Food and Drug Administration because apparently it had failed to live up to expectations in a second clinical trial.  It sent InterMune stock plummeting, and investors may be sent scrambling for unsecured loans to get back to drawing board.

InterMune wonder drug deflated by FDA

The InterMune corporation had previously had soaring stock prices.  However, the FDA did not see sufficient evidence of efficacy in a second clinical trial, and this announcement and subsequent rejection sent prices plummeting.  For the last few months, the company stock had been on a high, and earlier this week had been trading at $45.44 a share, according the New York Times.  After the word from the FDA, InterMune stock, designated ITMN, was sent plummeting to the bottom, losing 80 percent of its value or $36 per share.

Wonder drug to treat Pulmonary Fibrosis

The drug in question, pirfenidone, would have treated symptoms of pulmonary fibrosis, especially idiopathic pulmonary fibrosis.  Pulmonary fibrosis is a disease which causes scarring and hardening of lung tissue.  (Idiopathic means no known cause.) The disease is often fatal, and sufferers generally live only a few years after diagnosis.  The drug would have been sold under the trade name Esbriet.  The Times article indicated that the drug merely postponed death for a short period, without slowing any symptoms.  Therefore, there would be dubious benefit.

Back to the drawing board

Some feel the FDA should have been more lenient, considering the vicious nature of the disease. This isn’t entirely bad news, as it means that InterMune will likely return to work on the drug. In turn, this may lead to a more effective treatment than pirfenidone, which had only undergone the second round of clinical trials. Even in the first, it did not reverse the disease or damage caused by it.

If you are lucky enough to live in the path of the space shuttle landing, you could get quite the show. Image from Flickr.

NASA this morning announced that the space shuttle landing originally scheduled for this morning, April 19, was “scrubbed.” With two canceled landing attempts, the space shuttle landing will be attempted again tomorrow. The first attempt will be at 7:34 a.m. in Florida, and if needed the second attempt will aim for Edwards Air Force Base in California. Ideally, the space shuttle landing will be in Florida tomorrow morning, which will eliminate the necessity of low interest loans to pay for shuttling the space shuttle across the country.

Space shuttle landing show

This space shuttle landing will provide an airshow that is very rare. The path of the space shuttle landing will be visible from British Columbia, Montana, North Dakota, South Dakota, Iowa, Missouri, Arkansas, Tennessee, Mississippi, Alabama, Georgia and Florida. Anyone under the landing path should be able to see the streak of the landing space shuttle for up to a full three minutes. Take a break from your research into secured loans and go outside to take a look if you are in the path.

Space shuttle landing may be in California

The two scrubbed space shuttle landing attempts on Monday morning were canceled because of clouds over Florida. The low, thick clouds would have blocked visibility for the space shuttle landing. Because the space shuttle is basically a giant glider when coming in for a landing, it is very important that there is good visibility for the crew to be able to safely land the space shuttle.

Space shuttle landing leaves only three missions

Once this space shuttle landing of Discovery is completed, there will be only three space shuttle landings left. This mission, as well as the three planned missions after it, were focused on upgrading and re-supplying the International Space Station. After the Discovery space shuttle is retired, NASA will be moving into other areas, including developing a program and craft designed to land on Mars. The Russian space program will shoulder the burden of shuttling astronauts, cosmonauts, and supplies to the International Space Station until further plans are made.

Watch reports of the space shuttle landing

Sources:

Associated Press at http://www.google.com/hostednews/ap/article/ALeqM5g8gpZRl3t8mV2RxsVjIuPU75dJeAD9F676T80
WNCT

Benjamin Netanyahu will be meeting with President Obama at the White House today. Image from Flickr.

Israeli prime minister Benjamin Netanyahu is scheduled to meet with President Barack Obama at the White House this evening. The meeting is closed to reporters, but most reports indicate that the talks are most likely going to be focused on the recent Israeli announcements that an East Jerusalem settlement has been approved, pending the developer’s secured loans. Some politicians are also hoping that the meeting between Netanyahu and Obama will include discussions of the diplomat representing Israel being kicked out of Britain.

Netanyahu and Obama to discuss peace talks

One of the major topics on the docket for the meeting between Netanyahu and Obama will be the restarting of indirect peace talks with Israel and Palestine. Over the last few decades, the United States has mediated several peace talks between Israel and Palestine, though tensions in the region remain high. Israel, through their Prime Minister Netanyahu, has recently announced plans to allow 1,600 new settler homes in East Jerusalem. The United States, through Secretary of State Hillary Clinton, has condemned the plans, and tensions between Netanyahu and Obama have since been very high.

Netanyahu takes a stand on Jerusalem

Jersulem has long been a disputed district in the Israel-Palestine conflict. In a speech to Israel’s supporters in Washington, D.C., given before he met with Obama, Netanyahu stated that “Jerusalem is not a settlement. It’s our capital.” He also very carefully outlined that while the relationship between the U.S. and Israel may be strained, any attempts to break off the relationship would not work. Netanyahu has advocated on multiple occasions that the easiest path to peace between Israel and Palestine would be an “economic path” – relying on commerce and money loans to make peace.

Bejamin Netanyahu’s history as Prime Minister

President Obama is not the first United States President that Benjamin Netanyahu has met with. Netanyahu was originally Prime Minister of Israel from 1996 – 1999. After a turn in political fortunes and 10 years of political work in Israel, Netanyahu again became the head of a coalition government in Israel. In the past, Netanyahu has called U.S. led peace talks between Israel and Palestine a “waste of time.” In January of 2009, Netanyahu claimed he would continue the Israeli policy of not building new settlements in disputed areas. However, the recent approval of an Israeli settlement in East Jerusalem seems to contradict this act.

Sources:

Voice of America News
Guardian
The Jerusalem Post
Wikipedia

Even the Tin Man gets into St. Patrick's Day celebrations. Image from Flickr.

For Catholics, St. Patrick’s Day was once a holy day of obligation – and for Irish everywhere, St. Patrick’s day is a chance to celebrate this amazing little country that gets overlooked far too often the rest of the year. If you’d like your St. Paddy’s Day celebrating to go beyond some corned beef and cabbage on your dinner menu, give these ideas a try. For most of them, you won’t even need pay day loans – just a little planning ahead.

10- Drink an Irish beer

The history of beer in Ireland goes far beyond getting a little tipsy in a pub. For a very long time, most water was simply unsafe to drink. Many monasteries as well as households brewed their own beer as a way to have a safe beverage to drink. The alcohol killed bacteria that would otherwise be dangerous. Breweries in Ireland have a long history, sometimes going back hundreds of years. Sip a dark Irish brew and appreciate the fact that without beer, life would have been much more difficult in the dark ages.

9- Try a new stew recipe

Corned beef and cabbage is not actually a traditional Irish meal; beef was too expensive for Irish peasants. Instead, try giving a good, thick Irish stew a try. Layer a pound of carrots with two small onions, a pound or two of potatoes, frozen peas, and two pounds of lamb or mutton, and beef broth or water in your crockpot. Set it on low and let it stew for 8-10 hours while you’re at work. You’ll be able to come home to a truly traditional St. Patrick’s Day feast.

8- Wear green

The wearing of green on St. Patrick’s day started with a political statement in 1790. Irish soldiers wore full green uniforms in hopes of making a statement about Irish nationalism.

7- Travel to Butte, Montana

If you’ve got some extra money from secured loans, then you should try traveling to Butte, Montana for its St. Patrick’s day celebration. It’s not the largest celebration in the country, but this little mining town has a St. Patrick’s day party that is worth the travel. There are even bars in Billings that open only for St. Patrick’s day – and if you’re lucky, you’ll see the governor of Montana delivering their liquor license.

6- Enjoy an Irish drama

Check out your local theater to see if you can see an Irish playwright on the stage – Samuel Beckett, Paul Vincent Carroll, George Bernard Shaw, Oscar Wilde, and W.B. Yeats all hail from the Emerald Isle.

5- Find Irish music

Stepdancers or not, you can almost always find good Irish music around St. Patrick’s day. Call around to pubs, bars, and performance spaces to find a rousing concert to celebrate the day.

4- Have a leprechaun visit

If you’ve got wee ones in the house, then set up a “leprechaun visit” for them to discover when they wake up or come home from school. Use baby shoes and washable paint or green construction paper to put footprints all over the house. If you want to make it extra special, have one trail of footprints lead to a rainbow with chocolate “gold” at the end of it for them to find.

3- Curl up with a good book

No matter if you love fiction, fantasy, or semi-autobiographical books, Irish authors have you covered. Pour yourself some Irish whiskey and celebrate St. Patrick’s day by reading James Joyce, Jonathan Swift or George Moore.

2- Watch an Irish movie

OK, so they may not be entirely “authentic,” but what could be more fun than watching movies with a “touch o’ the blarney” to celebrate St. Patrick’s Day? “The Luck of the Irish”, “Far and Away”, “The Departed”, “Finian’s Rainbow”, or even the new movie “Leap Year” all showcase the people, places, or feelings of the Emerald Isle.

1- Plant potatoes

St. Patrick’s day also marks the beginning of Spring in many parts of the world. Celebrate the coming growing season and have never-to-be-topped fresh potatoes for your table throughout the fall by planting your own Irish Gold. Your local seed store or online sources offer seed potatoes, and potatoes can be grown anywhere you’ve got (or can put) a square foot of dirt.

Secured online loans

Many different situations could give you a reason to get a secured loan. A secured loan is a loan in which you need to put up collateral or an asset in order to receive money back from the lender that is allowing you to borrow money from them. The coloratura or asset is something like a car or boat. It could also mean putting up your house for collateral if you need a large enough loan or need to get a second mortgage to pay those bills. You may think that you do not need a secured loan, but a secured loan has a lower interest rate than that of an unsecured loan. Plus, with a secured loan, you have up to twelve months to pay it back. Just remember that the first two payments you make on your loan is usually interest on the loan. So if the loan amount is borrowed at a longer time, it is really ten months plus two months of interest that the cash advance company will charge you with for letting you borrow money.

It cannot happen to you?

Everyone thinks that nothing bad will ever happen to them, until something happens. That is when a secured loan comes in handy for everyone involved.

The title company makes money and you get the extra money you need for whatever reasons that may come along. It’s not like anything will happen, but being prepared and knowing where to go in case something does happen and taking care of your what if’s in life will be a big relief off your shoulder. Taking care of your problems and making an easy solution for them is what a title company loan place is there to do. It is there to make the problem disappear for a little while so you do not have to worry about it.

Start your loan application HERE!

A personal loan could be your best solution to fast cash

Since a personal loan is usually cheaper than other types, they may require collateral, such as is required with a secured loan. Collateral can be taken away at any time when payments are missed. Even so, anyone who maintains a clean financial history, or cleans up the messy one that they have, can enjoy low interest rates as long as they are able to follow all of the loan’s requirements. Besides, getting accepted for this brand of money loans depends more on trust between you and the lender than anything else.

Unsecured loans, or no collateral personal loans, are more lenient, but in return, require you to follow stricter guidelines like a higher interest rate and a shorter repayment term.

Taking out a good low-interest personal loan is a give-and-take

Unlike payday loans, which provide a greater acceptance rate, low-interest personal loans require you prove that you are able to pay the loan on time. They will usually look into your employment and credit history, taking note of any prior loans that you have taken out. For instance, if you are currently paying off a loan, then they will look at whether you have met all of your payments. It is a good idea to choose a bank or financial institution that you have previously done business with as long as you have a good track record with them.

Loans for people with bad credit are harder to come by, but a personal loan is still available, except you will not benefit from low interest rates. So whether you want fast cash or need to borrow money for school, you are covered. Practicing good money management skills, like following good spending habits and making all of your payments on time, is the key to your success in taking out the best low-interest personal loan.

Start your quick personal loan application HERE!

It’s time to file tax returns and as part of the stimulus bill the IRS is offering some new credits that could save you big money. Naturally, you the taxpayer are supposed to do your part for the “greater good” — not just of the United States but of all mankind — by spending the tax dollars you “save” out there in “our struggling economy” on “consumer goods” you don’t really need.

Or not

If, however, you’re sick and tired of that propaganda, perhaps you can simply use the money for day-to-day living expenses. Perhaps, if you qualify for a couple of these credits, you’ll be spared having to take out more secured loans or unsecured loans for quick cash just to tide you over between paychecks.

Five new tax credits

In either event, here’s the line-up: five money-savers to keep in mind when you file for 2009.

Homebuyer credits. Deadlines for home-buyer credits have been extended to include homes purchased by April 30, 2010. Qualified first-time home buyers can claim credits of up to $8,000 and repeat buyers who have lived in their present homes for at least five years can claim credits of up to $6,500. Income limits for the homebuyer credits have been raised. If your modified adjusted gross income is $125,000 or less, you may be eligible for the full amount of the credit. If your income is between $125,000 and $145,000 you may qualify for some reduced portion of the credit. Even if you’ve already filed your 2009 return, if you close on a house by April 30, you can amend it to claim the credit.

American Opportunity Credit. To lighten the burden of skyrocketing tuition costs, the IRS is offering a credit for college tuition, text books, computers and other educational expenses. The credit, which temporarily replaces the Hope Credit, can be claimed for the tax year 2009 or 2010 whether or not you owe taxes. Taxpayers with incomes of $80,000 or less may qualify for a credit of up to $2,500 a year. The credit can now be claimed for four years of post-secondary schooling, not just two.

Residential Energy Property Credit. This credit is designed to motivate homeowners to make energy-saving upgrades. The credit was originally supposed to expire in 2007, but has been extended through 2010. Under the new law, taxpayers can claim up to 30% of certain home-improvement costs. The maximum credit for improvements made in 2009 and 2010 has been increased to $1,500. Improvements qualifying for the credit include insulation, energy-saving windows, and high-efficiency heating and air-conditioning systems.

Making Work Pay Credit. This credit provides up to $400 for single persons with incomes of $75,000 or less, and up to $800 for joint filers with combined incomes of $150,000 or less. Most people will have already received the credit in their wages because of adjustments to their income-tax withholdings, but they still need to claim the credit in order not to end up owing the money back.

Vehicle Credits. On your 2009 return, you can deduct state and local taxes paid on new vehicles purchased between Feb. 17 and December 31, 2009. Qualifying vehicles include passenger automobiles, motorcycles, motor homes, and trucks weighing less than 8,500 pounds. The deduction is available for taxes and fees paid on a purchase price of up to $49,500. If you bought a car that time frame under the Cash for Clunkers program, you stand to save again with a vehicle credit.

In an effort to encourage car buyers to conserve energy, the IRS is also offering a new credit of up to $7,500 for certain electric plug-in vehicles purchased after Dec. 31, 2009. And don’t forget the other tax credit for buying hybrid and other low-emissions vehicles that has been offered since 2005.

Secured loans are causing much concern with financial experts. They are reporting that no matter how much banks lend, their transactions are almost always risk-free. Their money is guaranteed by the federal government through the insurance fund. The insurance fund is money that comes into play when various “bad” things happen to borrowed money. For example, when a property goes into foreclosure and the owner had no heir, the insurance fund covers the lending institution’s investment. Or, if the sale of a home is much less than its mortgage value, the insurance fund covers the loss to the bank. Homes falling into these two categories alone make up about $109 million in claims against the federal insurance fund from financial institutions.

Homes that are nearing their lending limit

Another huge cut of the insurance fund comes from loans that have neared their limit. The bank can be reimbursed by the fund once the balance owed reaches 98% of the loan’s maximum lending limit. The maximum lending limit is a cap determined at the time the mortgage is approved. The FHA pays the lender 98% of the loan and it takes the responsibility of managing the loan. Reverse mortgages are making up a huge portion of the loans that reach the 98% lending limit. In fact, they total about $1.36 billion.

The trend with new loans

There is a concerning trend with newer loans entering the market. A study of the lending market showed that loans issued in 2005 were more than two times as likely to result in a claim on the insurance fund as loans issued in 2002. The trend suggests that borrowers are using their equity more readily than in previous years. As a result, the government may need more bailouts in the future to handle the added financial strain. Borrowers are the ones who pay for the federal insurance to back these loans, but lenders are the ones who directly benefit. Some borrowers pay up to $6,000 in up-front fees and that equals about 0.5% of the principle amount of the secured loans every year.

How HUD plays a part

In past years, income from insurance premiums paid by reverse-mortgage customers was sufficient to cover the payouts to settle claims to the insurance fund. That is quickly changing. HUD is requesting more money from the government and that suggests that the fund may be depleted in the near future. So far, there is an $800 million in reserve funds requested to cover loans. Senator Claire McCaskill said, “We are talking about a huge growth in the potential liability to the American taxpayer. If this is a good lending tool and a good value for the federal government, then why isn’t there a proprietary market for reverse mortgages now?”

The future of the insurance fund

Experts are projecting that the insurance fund will experience a considerable growth in claims in coming years. The reason is that more borrowers are expected to have difficulties paying for their home’s upkeep, taxes, and insurance coverage. Secured loans in the form of mortgages are expected to balloon in the near future and the strain may make it difficult for the insurance fund to remain an option for backing financial institutions.

Start your Secured Loans application HERE!

Reverse mortgages are secured loans that come with a catch. Just ask Ernest Minor of Marysville, California about them. He had a reverse mortgage and hoped it would pay for his wife’s medical bills. She eventually passed away and his loan came due. He received a bill for $200,000 from the mortgage company. Because of the recession, the home is assessed at $130,000. Minor admits that he most likely will be evicted from the property because he doesn’t have the funds to make a balloon payment on his mortgage.

The purpose of a reverse mortgage

Reverse mortgages are not bad loans; they are just loans that benefit a specific consumer. They can be a great tool for senior citizens who want to remain in a house, have equity and need to get rid of a mortgage payment. The reverse mortgage allows them to trade some equity for cash and receive it in the form of monthly payments. The problems start when consumers are attracted to the “cash out” option, but don’t fully understand the details of what a reverse mortgage is. There are complicated rules to them and interest rates can balloon to unmanageable amounts. A consumer who isn’t careful can end up with no equity left in their home and no way to maneuver unexpected costs later in life.

Lenders like the reverse mortgage

Many lenders are pushing the reverse mortgage in the market. The good news for them is that consumers are trading in their equity. Baby boomers everywhere are attracted to the reverse mortgages because they are wooed by the possibility of taking pricey vacations, buying new cars, and purchasing other luxury items their equity can cover. In fact, the problems with these loans are spreading so quickly that legislators and regulators are taking notice. Senator Claire McCaskil said, “The people who are making these secured loans and advertising them so heavily to seniors on cable TV get the rewards but escape the risks that come with them. It is going to be the sequel to the subprime-mortgage mess.”

Reforms in the reverse mortgage industry

Many legislators are beginning to make a push for changes in the reverse mortgage industry. Some of the main reasons for the changes are:

• A consumer investigation showed that loan bailouts have soared over the past few months. The annual sum of reverse mortgages taken over by federally-insured funds has more than quadrupled over the past four years.
• Taxpayers are subsidizing reverse mortgages. In the past, insurance premiums paid by borrowers have covered bailouts of mortgages. Now the Department of Housing and Urban Development reports that $798 million in taxpayer money is going towards covering potential losses that won’t be covered by the premiums.
• Borrowers are being taken in by reverse mortgages in record numbers. Lenders are pushing various mortgage products to the consumer market, such as deferred annuities and reverse mortgages, without assessing accurately the specific needs of the consumer. Mortgage counseling is sorely lacking in the consumer market, and that is hampering wise decision-making in the world of personal finance.

These problems are calling for much reform in the world of reverse mortgages. Now that there are such a large number of borrowers falling prey to the mortgage products, legislators are moving quickly to educate and protect homeowners.

The world of the reverse mortgage

When it comes to handling secured loans, there are complex rules to understand. Though the reverse mortgage’s advantages may seem like a good idea, consumers are cautioned to not act quickly but, rather, do research and understand what they are getting into. To secure a healthy financial future, it’s crucial to understand the terms and conditions of a home loan. Immediate purchasing power may sound good, but future consequences may be too much for homeowners to stomach.

Start your Secured Loans application HERE!

Secured loans can be a welcomed answer for consumers with credit problems. One form of secured loan is the secured credit card. A secured credit card is a card offered in which the consumer deposits money to their account and then their credit limit is the amount they deposited. It’s a great way for companies to safeguard themselves, because if the consumer tries to make a purchase more than the credit available, the charge is denied. They work just like debit cards and protect consumers from overcharging, and over-limit fees. The best thing about the secured credit card is that it helps consumers build or rebuild their credit. Normally after about a year of on-time payments, the lender issuing the card will offer the consumer unsecured credit cards.

Where to find a secured credit card

Secured credit cards are available from various lending companies. Consumers can do searches online and get lists of places that offer the cards. It pays to do research, however, because there are drawbacks to some of the cards. Some lenders offer the cards, but at a pricey application fee. They can also tack on monthly credit-watching fees and annual fees. A good secured lender will waive most of these fees. There may be a small annual fee and that’s normal, but they can vary drastically from company to company. Do some comparisons and find cards that offer the following:

• Low annual fees
• Reporting to all three credit bureaus
• Waived application fees
• Rewards

With the number of credit cards out there, there are many options. Consumers should never pick the first card they see, but rather do a good amount of research and find the card that costs least.

How much should be deposited

Most lenders require deposits of $300 to $500. The credit limit will then be dictated by the deposit or a small percentage above that amount. The amount a consumer deposits has no bearing on how they are reported to credit bureaus. The lending company reports the customer’s payment history alone. Some companies offer specials for depositing certain amounts, so consumers should look into the deals out there and choose the best one for them.

Banks and unsecured credit

In past years, banks were great places to get secured loans through credit cards. Today’s credit world is quickly changing and the trend in the market is for banks to cut back on secured cards and push unsecured cards with lower limits and higher interest rates and fees. For consumers with bad or little credit, however, these are not always an option. It’s best to apply for the secured cards, rebuild credit, and then move to the unsecured options. Anyone who is rebuilding after a life event, like job loss, illness or divorce, can benefit from the secured credit card.

Cautions with secured credit cards

There are some things to watch out for with secured loans. Howard Dvorkin, president of Consolidated Credit Counseling Services, referred to secured credit cards as “a Clint Eastwood movie-the good, the bad and the ugly. Some are good. They have low fees and treat customers as customers instead of cattle. The bad ones, though, take advantage and extort the clients because of their situations. Then there is the ugly, which are despicable. They will give you the card, but you have to buy this insurance policy for $55 a month.” There is a wide variation in credit cards out there, and any consumer in the market for them should be very careful. They should research various companies, read their terms and conditions, and then choose wisely.

Apply today for fast Secured Loans online HERE!

Image from Flickr.

The airline industry has been through a lot lately. Recession, terrorism, gas prices — and now it’s just slow travel season. So what is an airline to do? Well, Delta has decided baggage fees are the place to try to bring up profits. Now, Delta baggage fees are as follows: The first bag is $25, and the second is $35.

I have read about seven stories on the new Delta baggage fees, and none says anything about a third bag, so I’m thinking that Delta will cut you off after two bags. Of course, if you can’t fit everything you need into two bags, you might want to re-examine your priorities. Maybe you should trade in some of your stuff for secured loans.

Internet advantage

You can save a little bit of money by checking in online and mentioning your bags when you do so. If you check in your bags online the first is $23 and the second is $32. So if you are checking two bags, you can save $5 by checking them in online. Still, paying $55 to check in your bags, on top of the price of your airline ticket, is a little ridiculous, right?

Airlines usually lower ticket prices during January because very few people actually want to travel this month. However, the lower ticket prices get canceled out really quickly if you start paying to check your bags.

Alternative plan

One reason a lot of people check bags is because of the restrictions that don’t allow you to carry liquid onto the plane. However, think about it this way: it would be cheaper to buy that stuff — shampoo, hairspray, facewash, whatever you need — once you get to your destination rather than paying $55 or $60 Delta baggage fees to check your bags.

Carry-on only is the best way to go. It saves tons of time at the airport and gets you out of paying Delta baggage fees or anyone’s baggage fees. When you’re traveling, only bring what you absolutely need. Think of stuff that you can easily buy on your trip rather than packing it.

The Morgan Stanley Building in Times Square, NYC (Image from jimyi, Flickr.com)

As a corporation, Morgan Stanley can only be termed as gigantic because at the end of the second quarter, they had assets in the area of $213.2 billion. Here was a company that was good enough to meet any of their obligations made by its operating units. Morgan Stanley, however, defied logic by announcing earlier this month that they would turn over their five buildings located in San Francisco to their lenders, rather than pay off the debt on them, which is also known as a Strategic Default. If any homeowner who had borrowed money on their home and taken the same option on this, they would have been reminded about their moral obligations of meeting their debts rather than just walking away. Does this sound fishy? Well, if fish could ever walk the street, even they would say that there are two sets of laws: one for the billionaires and the other for the masses.

Why Did They Do This?

Morgan Stanley had paid top dollar for these commercial properties during the huge real estate boom in 2007. Two years down the line, the market crashed and Morgan Stanley could no longer afford to hold on to the buildings. The prices of the properties had gone with the wind and tenants were hard to come by, yet they had not faced any foreclosure or defaulted on any repayments. They had enough money to meet all necessary payments, but they just chose to walk away from the properties, returning them to their lenders. They used a slang especially created for the situation called a Strategic Default. The moral obligation that applies to millions of Americans did not apply to Morgan Stanley, who just walked away from their obligations. What they left in their wake were millions of Americans talking.

Uneasy Future

Millions of Americans took out secured loans or borrowed money on the equity of their homes, and have done so on new homes as well as previously owned homes. They are perfectly capable of meeting all their obligations, and have not foreclosed or defaulted on their loans. However, if these people chose the strategic default option and returned the properties to their lenders, a tsunami of disasters would soon follow. People who had borrowed money did so when prices of the properties were high. They would be walking out of a debt at a time when prices have plummeted, preferring to treat the money already paid as a loss. However, this would probably be lower than facing a foreclosure.

Can the average person have the same option? This cannot be an option, as they just do not have the financial backing to get the same privileges as the filthy rich have. They are, after all, part of the millions that are only supposed to talk. They do not have the authority to walk like the billionaires and are obliged to meet their moral obligations. Banks and lenders may just be quivering in their seats wondering what they can do if a situation like this came up on them in the near future. It will be the specially anointed billionaires who will have to listen.

Start Your Secured Loans Application HERE

A few years back, it was difficult to plan to buy a car, home or to go on holiday to a favorite destination. Now personal loans are making it possible for everyone to borrow money for any kind of requirement. Personal loans help to reconcile the financial needs of any borrower. Personal loans can be borrowed from any of a variety of lenders who can be accessed through Personal Money Market. According to numerous recent studies, there has been an increase in the consumer demand for personal loans, so we see that it is no fad.

Personal Loans: Secured and Unsecured

The two types of personal loans are secured and unsecured personal loans. Secured personal loans are those loans which are given against the property of the consumer, usually a car or home. The collateral placed is the security against which the personal loan is supplied and this collateral acts as the security which guarantees the repayment of the loan.

On the other hand, there are unsecured personal loans. The main characteristic of unsecured personal loan is that there is no collateral. Unsecured personal loans are known to provide financial assistance when you don’t have any collateral. These loans are like rain when you are going through a financial drought. However, lack of collateral or security leads to high interest rates in loan borrowing terms. This could make secured personal loans a more viable option than unsecured, depending upon the borrower’s financial situation.

Personal Loans for Any Purpose

Uses of personal loans are endless. They can be put to use for any purpose and there is no restriction by the lender as to how you should use the personal loan. Mostly, personal loans are used for car purchases, vacations, home improvement, weddings, etc. Personal loans are much cheaper than other alternatives available like checking overdraft, revolving credit card debt, etc.

Personal Loans: Borrow if Affordable

While taking any kind of personal loans, think whether it is necessary to borrow. Personal loans should be used only if they are affordable. Personal loans are required to be paid back and a lender can pursue you through civil procedure if you fail to repay. This may lead to your collateral being at risk.

Unsecured personal loans charge a relatively high rate of interest which can lead to high monthly payments if a loan isn’t paid upon maturity. It will increase your financial burden if you are increasing the loan term. The interest rates on personal loans depend upon the lender and the amount you borrow. Be sure to pay when due to avoid excess charges.

Bad Credit Personal Loans for Impaired Credit

Bad credit personal loans are optimized for the benefit of the borrower. Yet if you fail to pay any installments or make payments on a previous loan, it can cause problems. Use personal loans for emergency situations like avoiding mortgage arrears, credit card default or other circumstances which goes along with creating a bad credit score. Allow personal loans to help you avoid bad credit; that’s one reason why they’re sometimes called bad credit loans. Not only can they help improve bad credit, but they can also build positive credit status. They’re also called bad credit personal loans because you don’t have to have perfect credit to apply.

Therefore, personal loans can be taken if your kitchen sink is leaking or your saving are bottoming out and your car is not functioning. It can also help you buy something, but the ideal use of personal loans is emergency situations. If you want to increase your spending power, try setting aside more in your budget.

Apply for Personal Loans HERE!

Lack of suitable public transportation and roads in India makes two wheelers important. Secured loans play a big role in financing such purchases. (Photo: flickr.com)

India is a vast country with a billion-plus population. Unfortunately, public transport has been a neglected sector for this developing country. People are forced to use transport that is either bad or in certain cases does not exist at all. Bad roads make life even more difficult for people looking to travel from one place to another. This is a fact about not just the villages, but also some of the major cities. With the easy availability of secured loans from banks and reduced interest rates, bachelors are looking to splurge on two wheelers in a big way.

Easy Loan Availability: A Boon to the People

Even though the recession has seen cuts in the job market, the situation is not completely grim in this country. Urban bachelors are still able to find jobs that pay well and leave them with disposable incomes in their accounts. Since travel time to commute to and from work is a major problem, these bachelors are looking to invest their money in vehicles that will give them the comfort of a hassle-free travel facility. Banks and institutions are more than willing to lend the money, as the loans are secured. With interest rates coming down in the month of October, a surge in sales was anticipated by manufacturers. Their anticipation was not unfounded. An increase in sales was seen in the month of October and continued into November as well.

No Issues with Credit Checks

India does not have a centralized system where credit scores of borrowers are monitored. As loans against vehicles are secured, banks are inclined to approve applications overnight. The only criteria that they seem to apply are an age limit of 24 on a person applying for the loan. Apart from the age factor, banks would also look for proof of employment and residence from the applicant. In the absence of proof of employment, a cosigner for the loan will also suffice. The applicant will have to make a down payment of 15 to 25 percent of the cost of the vehicle, apart from the costs of comprehensive insurance, vehicle tax, etc. The bank will also request direct debit facilities from the borrower’s accounts for repayment of the loan.

Vehicle to be Hypothecated With the Banks

The dealer selling the vehicle will have the name of the bank financing the deal on the original papers of the vehicle. This ensures that the Regional Transport Authority that completes the registration makes a note on the registration card that the vehicle is the primary property of the bank financing the deal until the loan is repaid in full.

Low Pre-Payment Charges

Borrowers of secured loans in India are spared from bearing high pre-payment charges. They are free to close the loan at any time that they find convenient. There are cases where borrowers have defaulted and paid additional charges. Banks find it easier to reach a negotiated settlement in such cases rather than apply a foreclosure on the vehicle. Current surveys certainly show that India’s banks are in for some good times in the days to come.

If you need large amount of money to help you out, then you can turn to installment loans, which can help in achieving your goals. Many people love these types of loans because installment loan help consumers take out a large chunk of money and pay it back over time with monthly installments. There are different types of installment loans that you can take out to help you through a rough patch, make a purchase or for any other reason at all.

You are Agreeing to the Lender’s Terms

When you are taking out installment loans, you are agreeing to pay the loan back on the lender’s terms. Whatever is covered in the agreement you have reached with the lender is what will determine how much you pay back, how long the loan will be and what the rate of interest shall be. You should make sure to read all the details of the contract between you and the lender before taking installment loans. That way, there are no surprises.

Do You Have Credit Issues?

Are you searching for installment loans but have credit issues? If so, then you may want to consider no credit check installment loans. Here is an option that will not generally require a credit check. If you can obtain a loan through your bank, that’s great. However, the next best option for getting a loan without a credit check is to get a payday loan or cash advance. Online companies like Personal Money Market can connect you with lenders who give money based on applicant income, and they rarely ever check credit. These loans are different from installment loans and range from $100 to $1,500, but they have to be paid within a shorter duration of time. If you find you can’t pay, you may extend the loan for a small fee like three to five percent of the loan amount, but this varies by lender.

Notice the Do’s and Don’ts for Secured Installment Loans

Secured installment loans, as the name suggests, are loans secured against an asset. Obtaining secured installment loans requires that the borrower have some collateral so it can cover the risk factor. If there is any default in paying the loan amount, the collateral is seized by the lender. Any asset such as a car, house, property or other valuable property can serve as security to a lender. Secured loans have many advantages, such as lower rates of interest, and are offered for a longer period of time. The loan amount that you can borrow is also relatively higher than unsecured loans.

Even though secured installment loans have many advantages, secured installment loans can be a threat to your collateral. If you are not able to pay back the loan amount, then the collateral is seized by the lender. So always pay your installments on time. To be safe, make some schedule and strictly adhere to it. If you strictly follow the schedule and pay back your installments on time, then there will be no chance of default.

Apply for Installment Loans HERE!

If you think secured loans are the only way to get quick cash and that you have to put your personal property in jeopardy to get a loan, have I got good news for you! You can get payday loans and installment loans online with no down payment and no collateral.

Payday lenders charge a simple, one-time fee that’s due at the time your loan is due. Plan to pay back your loan and lender’s fee when you get your next paycheck, and you’re on the road to financial stability. You don’t have to risk losing an expensive possession, and online payday loans are much more convenient than secured loans.

Secured loans versus online payday loans

Usually, taking out a secured loan means you have to go to a pawn shop and exchange something that belongs to you for quick cash. Another form of secured loan is a car title loan, which gives the lender the right to take your vehicle if you don’t pay back your loan on time.

Pawn shops usually give out loans with 90-day terms, but they charge fees every month. Payday lenders give you quick cash that you agree to pay back when you get your next paycheck — usually two to four weeks. You don’t have to have an expensive item to put up for collateral. With pawn shops, you have to be able to show up to the store during business hours to pay back your loan in person and retrieve your item.

The entire payday loan process can be completed online. You can fill out your application, have your money electronically transferred to your account and pay back your loan electronically, too.

How soon can I get a payday loan?

If you start your payday loan application now, you could have cash in your bank account in as little as two hours. It takes only minutes to fill out the application and find out if you are approved. There are no credit checks, so once your application is approved, you just need to accept the loan terms.

If you need quick cash but don’t have collateral to get secured loans or don’t want to leave your valuable items in a pawn shop, START YOUR APPLICATION NOW.