Showing posts with label Strategy. Show all posts
Showing posts with label Strategy. Show all posts
Monday, January 25, 2010
Thursday, May 21, 2009
Friday, January 9, 2009
Citi Reaches Agreement on home loans
WASHINGTON (AP) -- Democratic lawmakers have reached a deal with Citigroup Inc. on a plan to let bankruptcy judges alter home loans in an effort to prevent foreclosures and urged other lenders to follow suit.
The lawmakers aim to attach the plan to President-elect Barack Obama's economic stimulus legislation, and said Thursday the change in bankruptcy law could ease the foreclosure crisis that has dragged the economy into the worst recession in decades.
The compromise between Citigroup and Sens. Richard Durbin of Illinois, Charles Schumer and Christopher Dodd of Connecticut, would be limited to loans made before the bill is signed. Obama has said he backs the concept.
Schumer said he received calls Thursday from several banks - which he did not name - indicating their potential interest in supporting the idea.
"This is a breakthrough day," the senior senator from New York said in a news conference on Capitol Hill. "We've been stymied because the banking industry opposed this simple provision, which is key to getting a floor to the housing market."
In a letter to lawmakers, New York-based Citigroup's chief executive, Vikram Pandit, said the change to bankruptcy law "will serve as an additional tool to the extensive home-retention programs already in place to help at-risk borrowers."
The so-called "cramdown" proposal has been backed by Democrats over the past year as a potential solution to the foreclosure crisis. Consumer advocates and Democrats say it would prod the lending industry to be more aggressive about modifying loans because of the looming threat of having a bankruptcy judge involved.
But the lending industry has battled fiercely against the idea, arguing it would force lenders to hike mortgage rates because they would have to charge more for loans that could be altered later by a judge.
"This would hurt the housing market at the exact time we're trying to stimulate it," said Scott Talbott, chief lobbyist at the Financial Services Roundtable, which represents large banks and insurance companies.
To qualify, borrowers would need to demonstrate that they have asked their lender for a loan modification before filing for bankruptcy.
Currently, a 1993 Supreme Court decision bars judges from altering first mortgages on primary homes, though such changes are allowed on loans for vacation homes, motorcycles, boats and other kinds of property.
Consumer advocates say that is unfair, while mortgage lenders contend it benefits the vast majority of borrowers who don't fall into bankruptcy because it keeps mortgage credit for primary residences cheap.
Other attempts by the government to deal with the surge in foreclosures over the past two years haven't made much of a dent in the problem.
A federal program, dubbed Hope for Homeowners, was intended to let 400,000 troubled homeowners swap risky loans for conventional 30-year fixed-rate loans with lower rates. But the early results have been disappointing, with fewer than 400 applications since the program's launch on Oct. 1.
In an interview earlier this week, a lobbyist for the mortgage industry vowed to keep the bankruptcy judge plan out of the economic recovery bill.
"We think that's an unwise move that could delay the stimulus package," said Francis Creighton, the Mortgage Bankers Association's chief lobbyist.
In a speech Thursday at George Mason University outside Washington, Obama asked Congress to work with him "day and night, on weekends if necessary" to pass an economic revival plan within the next few weeks so that it can be ready for his signature shortly after he takes office on Jan. 20
Obama promised to rewrite financial regulations and pledged to launch "a sweeping effort to address the foreclosure crisis so that we can keep responsible families in their homes."
The lawmakers aim to attach the plan to President-elect Barack Obama's economic stimulus legislation, and said Thursday the change in bankruptcy law could ease the foreclosure crisis that has dragged the economy into the worst recession in decades.
The compromise between Citigroup and Sens. Richard Durbin of Illinois, Charles Schumer and Christopher Dodd of Connecticut, would be limited to loans made before the bill is signed. Obama has said he backs the concept.
Schumer said he received calls Thursday from several banks - which he did not name - indicating their potential interest in supporting the idea.
"This is a breakthrough day," the senior senator from New York said in a news conference on Capitol Hill. "We've been stymied because the banking industry opposed this simple provision, which is key to getting a floor to the housing market."
In a letter to lawmakers, New York-based Citigroup's chief executive, Vikram Pandit, said the change to bankruptcy law "will serve as an additional tool to the extensive home-retention programs already in place to help at-risk borrowers."
The so-called "cramdown" proposal has been backed by Democrats over the past year as a potential solution to the foreclosure crisis. Consumer advocates and Democrats say it would prod the lending industry to be more aggressive about modifying loans because of the looming threat of having a bankruptcy judge involved.
But the lending industry has battled fiercely against the idea, arguing it would force lenders to hike mortgage rates because they would have to charge more for loans that could be altered later by a judge.
"This would hurt the housing market at the exact time we're trying to stimulate it," said Scott Talbott, chief lobbyist at the Financial Services Roundtable, which represents large banks and insurance companies.
To qualify, borrowers would need to demonstrate that they have asked their lender for a loan modification before filing for bankruptcy.
Currently, a 1993 Supreme Court decision bars judges from altering first mortgages on primary homes, though such changes are allowed on loans for vacation homes, motorcycles, boats and other kinds of property.
Consumer advocates say that is unfair, while mortgage lenders contend it benefits the vast majority of borrowers who don't fall into bankruptcy because it keeps mortgage credit for primary residences cheap.
Other attempts by the government to deal with the surge in foreclosures over the past two years haven't made much of a dent in the problem.
A federal program, dubbed Hope for Homeowners, was intended to let 400,000 troubled homeowners swap risky loans for conventional 30-year fixed-rate loans with lower rates. But the early results have been disappointing, with fewer than 400 applications since the program's launch on Oct. 1.
In an interview earlier this week, a lobbyist for the mortgage industry vowed to keep the bankruptcy judge plan out of the economic recovery bill.
"We think that's an unwise move that could delay the stimulus package," said Francis Creighton, the Mortgage Bankers Association's chief lobbyist.
In a speech Thursday at George Mason University outside Washington, Obama asked Congress to work with him "day and night, on weekends if necessary" to pass an economic revival plan within the next few weeks so that it can be ready for his signature shortly after he takes office on Jan. 20
Obama promised to rewrite financial regulations and pledged to launch "a sweeping effort to address the foreclosure crisis so that we can keep responsible families in their homes."
Wednesday, September 17, 2008
Friday, August 29, 2008
New blog site for foreclosures
I would like to announce a new website that will help in educating families and individuals who may be struggling to make their mortgage payments on time.
www.JJStopsforeclosure.com
This site is a wonderful resource to educate yourself on your options if you are struggling with a mortgage due to an adjusting rate (ARM), divorce or any other financial catastrophy that you may be enduring.
If you are not struggling, you may know someone that is. Pass on this much needed information.
www.JJStopsforeclosure.com
This site is a wonderful resource to educate yourself on your options if you are struggling with a mortgage due to an adjusting rate (ARM), divorce or any other financial catastrophy that you may be enduring.
If you are not struggling, you may know someone that is. Pass on this much needed information.
Monday, May 26, 2008
Happy Memorial Day
For those that have served, are serving and especially those that have given the ultimate price in the service of our great nation, I want to give my sincerest appreciation.
Wednesday, November 28, 2007
Realtors Can Help Sellers Market Their Homes!!
Posted by J.J. Chapa under For Buyers, For Sellers, General Information
Though there are other avenues available, experts consider it critical that someone interested in selling a home locate a Realtor to make sure the matter runs smoothly. A real estate agent should have a good working knowledge of the marketplace as well as the asking price of comparable homes. Realtors also should be able to provide a competent marketing strategy for your home.
When evaluating real estate agents, ask how they plan to market your home. Marketing your home includes ensuring that other real estate agents are exposed to it – statistics show that in some markets as many as 50 percent of real estate sales are cooperative efforts, that is a real estate agent other than the one you’ve hired brings in the buyer.
A real estate agent also will know the most effective ways to advertise your property. It may be listed in the local newspaper or featured on a home show. The agent also will know how much to advertise the home because too much advertising can, according to experts, give the impression the property has some problems.
The real estate agent provides many consolatory services to the seller. The agent will help you choose the best proposal or assist you in writing a counteroffer. An agent also can smooth the way for the appraisal, inspection and financing processes, help set up the closing and recommend reputable service providers. The seller also can rely on an agent to work in his behalf on paperwork that can be taxing if an unforeseen snag develops in the negotiating process.
Finally, a real estate transaction typically averages $100,000, a huge financial undertaking. Experts say it is as wise to have an agent help with the process of one of your biggest financial transactions.
Though there are other avenues available, experts consider it critical that someone interested in selling a home locate a Realtor to make sure the matter runs smoothly. A real estate agent should have a good working knowledge of the marketplace as well as the asking price of comparable homes. Realtors also should be able to provide a competent marketing strategy for your home.
When evaluating real estate agents, ask how they plan to market your home. Marketing your home includes ensuring that other real estate agents are exposed to it – statistics show that in some markets as many as 50 percent of real estate sales are cooperative efforts, that is a real estate agent other than the one you’ve hired brings in the buyer.
A real estate agent also will know the most effective ways to advertise your property. It may be listed in the local newspaper or featured on a home show. The agent also will know how much to advertise the home because too much advertising can, according to experts, give the impression the property has some problems.
The real estate agent provides many consolatory services to the seller. The agent will help you choose the best proposal or assist you in writing a counteroffer. An agent also can smooth the way for the appraisal, inspection and financing processes, help set up the closing and recommend reputable service providers. The seller also can rely on an agent to work in his behalf on paperwork that can be taxing if an unforeseen snag develops in the negotiating process.
Finally, a real estate transaction typically averages $100,000, a huge financial undertaking. Experts say it is as wise to have an agent help with the process of one of your biggest financial transactions.
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