Things that You Never Want To Tell A Mortgage Company

Yes it is important to be honest when speaking to a mortgage company, however when you are starting or in negotiations with a mortgage lender in an attempt to stop or delay a home foreclosure there are some facts that you should never tell your mortgage company.

Personal Finances
Never discuss your household finances over the phone with the collection department. What you don’t know is that you are being qualified and not know it. This is the easiest and fastest way to get a turn down. Request a homeowners assistance package so that you can submit the require information.

Cash Flow
Never tell them you are broke. Even though you may qualify for a special forbearance or modification, you will still need legal fees and foreclosure cost. These fees cannot be put back into the loan. Your lender prepaid them to their attorney to start the foreclosure process.

Not Living In The Property
Never tell them you do not live in the property. Under FHA guidelines, before you are granted any workout, you must reside in the property. If you have moved out and your property became an investment property, you better get someone in there with a lease or rental contract before the sale date.

Employment Status
Never tell them you are not working, in most cases you will not be approved. Depending on your sale date, your mortgage lender may not be able to qualify you for a special forbearance because of the amount of time left. If you can’t find a job, I suggest you start a small business months before your sale date, make some money, deposit your income and prepare a Profit and Loss Statement to prove income. Telling them you get paid cash and you can’t prove it won’t hold water.

Money Management
Never admit the reason you fell behind is because you mismanaged your money. How do you expect for them to give you a workout when you still have the potential of falling behind again?

It is important to be honest with a mortgage lender, it is also imperative that when speaking of personal financial details you are giving such sensitive information to the correct department and person.

The manner in which your personal information may be used to either help or hinder your efforts to stop foreclosure is not always used in the same way.

If you are behind on the mortgage or the lender is starting foreclosure proceedings now is the time to act, and I mean act fast. Educate yourself on what the foreclosure process is and how it will progress. Learn who you need to talk to and in what order you should contact them. What other options are available instead of simply allowing the lender to foreclose and sell your home. Check out The Foreclosure Survival Handbook for answers to all these situations.

Dollar Rises Against Euro in Europe Global Crisis

The euro and dollar dropped to fresh multi-year lows Friday as emerging markets continue to flush investments with heightened fears of global recession.

The euro fell to a new two-year low of $1.2496 overnight and nearly a six and a half year low of ¥113.79. The dollar dropped to a 13-year low of ¥90.87.

Now one would think that the dollar, viewed as the source of much of the world's commodity price inflation this decade, rising from long-term lows would be a cause for celebration.

Not exactly.

While the dollar's rally against most of the world's other major currencies does mean commodity price pressures are likely to continue to subside -- and that's good news for inflation, economists say -- the dollar is nevertheless rising for the wrong reason. Namely, an economic slowdown in Europe.

Euro, pound plunge on recession concerns

"It's not so much as the dollar is strengthening but that the euro and pound are weakening on the likelihood that central banks in Europe will have to cut interest rates more to deal with a recession," economist Peter Dawson said. "Europe is also seen as later in the business cycle than the U.S., which means the U.S. economy is likely to recover sooner, which also helps the dollar. "

The dollar took full advantage of that sentiment Wednesday, surging two cents to $1.2837 versus the euro and three cents to $1.6407 versus the British pound. The dollar also rose 1.6 cents to $1.1672 versus the Swiss franc.

However, the dollar fell one yen to 98.91 versus Japan's yen on the relatively stronger Japanese economy. Japan's banks have only modest exposure to toxic assets, one major reason why risk averse investors are seeking out the yen, Dawson said.

Dawson's outlook for the dollar heading into Q1 2009? "The dollar will continue to strengthen. The focus in Europe and the U.S. has to be on stimulating the economy, and that includes more interest rate cuts, along with fiscal stimulus, and other measures," he said. "The U.K. and European Union are not likely to complain about their currencies weakening. They'll probably secretly cheer it because it will make their exports cheaper."

Forex / Economic Analysis: Indeed, all dollar rallies are not alike. And as economist Dawson noted, the focus on all continents is on jump-starting economies. The euro and pound will fall, since the two currencies strengthened to extreme levels during the commodities boom -- one of the major, unsustainable imbalances that existed in the global economy.

Fannie Mae Freddie Mac take over by government

What are Fannie Mae and Freddie Mac

Fannie Mae is the nickname of the Federal National Mortgage Association, while Freddie Mac is the Federal Home Loan Mortgage Corp.

Fannie Mae is the older of the two. It was created as a government agency in 1938 under U.S. president Franklin Roosevelt's New Deal. The idea was to give local banks federal money to finance home mortgages, since private lenders were leery of lending money. The government wanted to help more people buy homes, and encourage the building of affordable housing. In 1968 it became a private company.

Freddie Mac was set up in 1970 to expand the secondary mortgage market, and ensure there was competition with Fannie Mae's monopoly. Both companies buy loans from banks or mortgage firms, and re-sell these as mortgage-backed securities. Together they own or guarantee about half of U.S. mortgages.
The two were put under "conservatorship" by the U.S. Federal Housing Finance Agency on Sept. 7 - essentially a takeover by the government.

UK bank bail-out 64$ Billion to HBOS Barclays and Royal Bank of Scotland

Britain waded in with 37 billion pounds ($64 billion) of taxpayers' cash to bail out three major banks on Monday, in a move that could make the government their main shareholder.

Royal Bank of Scotland (RBS.L) said in a statement it will boost its capital by 20 billion pounds, including the UK government taking 5 billion pounds in preference shares and 15 billion pounds underwritten by the government.

HBOS (HBOS.L) and Lloyds TSB (LLOY.L) will also participate in the government scheme "upon successful merger," the Treasury said in a statement on Monday.

Barclays (BARC.L) said in a separate statement it would boost its capital by more than 6.5 billion pounds but expected to do so without government help.

Finance Minister Alistair Darling said extreme times called for extreme measures and that he was prepared to make even more money available if necessary.

Japan Global crisis financial sector

Japan, Asia most powerful country, has claimed its first financial crisis due to global economy crisis.

The Nikkei tumbled 11.4 percent at one point before it found its feet, with a surging yen adding to fears for Japan's big exporters.

Trading in key stock futures was briefly halted, as the Nikkei took its losses this year to 46 percent.
Escalating bankruptcies in the property sector and among small businesses, along with fears of a global recession, have dragged Japan's export-dependent economy into the crisis, sending blue chip shares sliding by a quarter so far this week.

"This is panic. New York, the currencies -- there's nothing left for us to trust," said Takashi Ushio, head of investment strategy at Marusan Securities, as the Nikkei share average slid more than 10%, following sharp falls on Wall Steet.

"Investors are scurrying to convert to cash. A lack of confidence is coupling with panic."

As unlisted Yamato Life Insurance failed, the government said that to help hard-hit smaller lenders it may revive a bank rescue law from the 1990s Japanese banking crisis. One newspaper report suggested Tokyo may set up a $100-billion fund.

Fearful selling also sent Hong Kong and South Korean shares down 7% while Singapore declared its first recession in six years as the US stock plunge heaped pressure on economic powers to halt a global spiral of financial distress and slowing growth.

Financial policy makers from the Group of Seven major industrial nations, including Japan, are to meet in Washington later on Friday to consider what to do next, as bank bailouts, liquidity injections and interest rate cuts across the world have failed to quell investor anxiety.

After arguing for months that Japan had avoided the worst of the global financial crisis, its leaders acknowledged they were increasingly worried about the stock falls.

"[Share prices] have fallen to the level where they can hurt firms' funding. So I have instructed the ruling coalition to come up with steps," Prime Minister Taro Aso told reporters.

IHSG Saham Indonesia suspended on Jakarta Stock Exchange

Indonesia Stock Exchange or IHSG (Indeks Harga Saham Gabungan) was suspended indefinitely Wednesday on the Jakarta Stock Exchange after shares plunged more than 10 percent on fears about the global financial crisis.

The benchmark JSX index tumbled 168.1 points, or 10.4 percent to 1,451.67 points before the trading halt was ordered just before midday.

The Indonesian Stock Exchange suspended trading for a second straight day Thursday following a drop of more than 10 percent amid a rout in global markets.ADVERTISEMENT

"Hopefully the market will resume (Friday)," said the exchange's president director, Erry Firmansyah.

The exchange suspended trading for only the second time in its history on Wednesday after the main index plunged 10.4 percent. It fell by a similar margin on Monday.

The only other time trade had been halted was when a bomb exploded in the basement of the exchange in 2000, killing 10 people.

Stocks Saham IHGS Indonesia Turun Tajam Tumbled

Stocks in Indonesia is called Saham. Saham in Indonesia tumbled or anjlok turun tajam in this few months. IHSG or Indeks Harga Saham Gabungan is the stocks indicator in Indonesia.

Indonesia's key stock index tumbled 10 percent Monday (06 October 2008), its biggest one-day drop ever, on worries that fallout from the U.S. credit crisis is spreading around the globe.

This pasar saham anjlok (Stock Index Tumbled) is the biggest drop since the terrorist bombing attacks on Bali in 2002, over fears from investors that the $700-billion U.S. government bailout plan will be unable to resolve its financial crisis.

Resuming trading after a four-day break last week to mark the end of the Islamic fasting month of Ramadan, the benchmark JSX index shed 183.77 points, or 10.03 percent, to close at 1,648.7 points.

Indonesian investors had lot of news to digest after the long holiday. Sentiment also was hurt by the announcement of a 12-percent jump in consumer prices for September, a two-year high.

Decliners led gainers 209 to 10 with heavyweight commodities shares, which make up around 40 percent of the index, leading the drop.

Mining company Bumi Resources shed 32 percent, followed by coal miner Bukit Asam and palm oil manufacturer Astra Agro, which both lost 23 percent.

Indonesia's decline came after other Asian markets dropped last week in response to the deepening financial crisis, which appears to be spreading to Europe.

Indonesian President Susilo Bambang Yudhoyono convened high level Cabinet meetings to discuss the impact a global downturn would have on the economy, Southeast Asia's largest.

US Senate approves $ 700 billion rescue plan

How much is 700 Billion? 700 Billion or in Indonesia is 700 Trilliun, has 11 zeros. A super-duper great huge money. And this fresh money will be used to rescue US economy.

The American Senate approved the 700 BN bailout plan put up by the Bush administration and the Treasury secretary, Henry Paulson. Both Paulson and George W. Bush welcomed the decision and asked the House of Representatives to follow the example as soon as possible.

"The legislation, approved last night on a 74-25 vote, authorizes the government to buy troubled assets from financial institutions rocked by record home foreclosures. It contains two provisions favored by House Republicans: One raises the limit on federal bank-deposit insurance; the other reiterates the authority of securities regulators to suspend asset-valuing rules that corporate executives blame for fueling the crisis", Bloomberg.com reads.

Both presidential nominees, Democrat Barack Obama and Republican John McCain, returned from the campaign trail to vote in favor of the plan.

Tax provisions in the new version of the plan are expected to win the necessary votes in the House of Representatives, several politicians declared for the US media and the international press agencies.

But the questions here arises Is it enough to heal the economy?. However some financial experts says that US$ 700 billion dollar is still not adequate to bring back the financial condition back to its previous state but it can help to recover from current crisis. The crisis are so deep that the company like AIG is helpless and preparing for bankruptcy which was later helped by US$ 85 billion to carry on its business. One of the major reasons why the Fed rescued AIG was to prevent a fall in the value of bank assets, a fall that would in turn expose their true net worth and cause (it is generally believed) a run on banks that would decimate the entire banking system. As long as the AIG can keep paying the banks’ losses for their suspect (but insured) investments, those banks don’t need to reappraise their true values.

It’s just a line of zeroes. It’s merely 700,000,000,000, and if you look closely and blur your eyes just right and then hit yourself in the face with a brick, you’ll soon see that each and every one of those cute little circles is filled with goodness and candy and the sweet sighs of puppies and pie. The rescue plan of 700 billion dollars still does not buy all the bad mortgages. The main concern is now how the 700 billion will be allocated.