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Commercial Hard Money Loans

admin — Fri, 16 Jan 2009 19:58:14 +0000

Hard money loans are a specific type of asset-based loans. In this type of loan, a borrower receives funds that are secured by the value of a parcel of real estate. These loans are paid back with a higher interest rate than conventional commercial or residential property loans. This type of loan is rarely, if ever, issued by a commercial bank or other deposit institution.

Hard money loans are very similar to bridge loans. Bridge loans typically have similar criteria for lending. They also have similar costs to the borrower. The primary difference between a hard money commercial loan and a bridge loan is that a bridge loan frequently refers to a commercial property or investment property that is in transition. The property may not fully qualify for traditional financing yet. Hard money commercial loans refer not only to asset-based loans with a high interest rate but also loans for a financial situation that is possible distressed. Examples of this include cases where someone is arrears on an existing mortgage or where bankruptcy and foreclosure proceedings are already in process.

Hard money mortgages, both commercial and residential, are made by private investors. They typically make loans only in their local areas. The credit score of the borrower is not important because the loan is secured by the value of the collateral property. The maximum loan to value ratio is 65-70%. This means that if a piece of property is worth $100,000, the lender would give the borrower $65,000 to $70,000. This low LTV (loan-to-value) ratio gives the lender added security in the event that the borrower cannot pay and the lender has to foreclose on the property.

Commercial hard money lender programs are similar to traditional hard money loans in terms of the LTV requirements and interest rates. A commercial hard money lender is typically a strong financial institution with the deposits and abilities to make discretionary decisions on loans that are non-conforming. These borrowers do not conform to the standards of Fannie Mae, Freddie Mac, or other residential conforming credit guidelines. Since it’s a commercial property in question, the loan does not generally conform to a standard commercial loan guideline either.

Traditional commercial hard money loans are very high risk and have a higher than average default rate. Just like in a normal commercial loan, when a property owner defaults on a commercial hard money loan, he or she can potentially lose the property to foreclosure.

For more information on hard money lending, please visit http://www.pitbullmortgageschool.com.

Joseph Devine

Why Consider Personal Bankruptcy?

admin — Thu, 15 Jan 2009 14:37:25 +0000

Filings for personal bankruptcies are at an all-time high today. The reason is fairly obvious to anybody who has the vaguest idea about how family budgets work. I can explain the problem in two words: mortgage crisis!

Personal bankruptcy cases that were filed in the first quarter of 2008 were nearly double what they were last year, and the situation is not going to improve in the foreseeable future.

Subprime loans are the most likely cause of the mortgage crisis. Subprime loans were marketed aggressively during the real estate boom between 2000 and late 2006. Subprime adjustable rate mortgages started with low teaser rates that almost anybody could qualify for and have adjusted upward to unmanageable levels for borrowers. It doesn’t take a rocket scientist to figure out that a family cannot make a mortgage payment that exceeds their net income. Selling the home isn’t an option, either, because the inflated value that they paid for the home has now adjusted downward.

There’s plenty of blame to go around. Aggressive predatory lenders were part of the cause of the mortgage crisis, but there are other factors as well. Real estate speculators saw a way to make a quick and easy buck. They bought properties at values that they knew were inflated and then sold them at prices that were even more inflated to people who under other circumstances would never have been approved for a mortgage and who should have known better than to walk into the trap.

Meanwhile, both political parties and both houses of Congress debate the issue – and debate the issue, and debate it some more. There is no real resolution for the problem in sight. The solution – whatever it is, and whenever it comes – needs to help consumers without rewarding predatory lenders or real estate speculators. It’s a tall order. Don’t hold your breath.

Milos Pesic is a Debt Management consultant who runs a highly popular and comprehensive Debt Consolidation web site. For more articles and resources on debt management, debt consolidation programs, free debt counseling and much more visit his site at:

=> http://debtpaid.info/

admin — Fri, 19 Dec 2008 03:08:53 +0000

titleManaged Forex Accounts – EUR-USD Outlook 2008, 1 of 3/titlepThe US dollar was the big story in 2007 – if you were selling it. Compared to 2001, the value of the dollar has gone down by 40 percent against the Euro. And values at the beginning compared to the ending of 2007 were significantly down: the dollar was down about 13 percent versus the euro, 10 percent versus the yen, and 8.5 percent versus the pound sterling. Its value was at such a record low that supermodels and popular rappers made public their preference for getting paid in Euro, no dollars, please. The US dollar did stop skidding towards the end of 2007, but the question now becomes: has the dollar bottomed out or will the slide continue in 2008?/ppWhy the Dollar Weakened in 2007/ppThe dollar seemed so weak in 2007 because the rest of the global economy continued to grow even as US growth stalled, due in part to steady demand from the Middle East, China and India markets. Countries acted more independently, as illustrated by the Australian central banks decision to increase rates to stave off inflation at precisely the time the US Federal Reserve was cutting interest rates. Before December in fact, interest rate cuts happened only in the US. In short, some sort of decoupling occurred in the global economy, and this was a key factor to the strengthening of the other currencies and the weakening of the US dollar./ppThere are signs, as we begin 2008, that the phenomenon will no longer obtain this year and the global economy will again move more closely in step. In the latter half of 2007, economic growth in the UK and Canada slowed down indicating that the two countries were being weighed down by the weak US economy. In addition, the shock waves of the US subprime mortgage crisis have also shaken the financial markets of many countries, particularly the UK, where growth in the past years has depended on housing, mortgages, and the public sector. There are also signs of strain in the Eurozone, notwithstanding the ECBs hawkish position on monetary policy. The pressure to reduce rates will increase if growth continues to weaken further in the US or in other countries. The pressure already forced the UK Bank of England to cut rates in December and more cuts are forecast for 2008./ppInterest rate cuts will be the thing to watch in the currency market. The US Fed has already lowered interest rates 100bp in 2006 and another reduction will be more in line with expectations; but if the Eurozone begins to lower rates, this would be a significant departure from current policy, which could signal a major change in the outlook for the euro./ppWhere US Economy Is Going/ppThe big question is whether or not the US economy is going into a recession, which would seriously impact global growth. Majority of the American public thinks the economy is already in recession, according to polls released in December. Public perceptions notwithstanding, economists think otherwise. A Business Week survey on 54 economists in December showed that the group believes the country will reflect a 2.1 percent growth by the end of 2008 (it registered 2.6 percent growth in 2007). They believe that although the first half of 2008 will be difficult, consumer spending will not stop, albeit more restrained. Fundamentally, the forecast of no recession rests on the assumption that the Federal Reserve will continue its round of rate cuts. Although financial losses in the subprime sector will continue, consumer confidence will depend largely on the Federal Reserves actions to support economic recovery./ppA a TARGET=_BLANK href=http://www.fx-forextrading.com/managed_forex_account.htmmanaged forex account/a can generate 10%* interest or more a month! Let our professional forex managers trade your forex account! With a a TARGET=_BLANK href=http://www.fx-forextrading.com/managed_forex_account.htmmanaged forex account/a you are always in control of your funds! a TARGET=_BLANK href=http://www.fx-forextrading.com/managed_forex_account.htmhttp://www.fx-forextrading.com/managed_forex_account.htm/a/pp*Past performance is no guarantee for future performance!/pbrbr

admin — Thu, 18 Dec 2008 15:54:58 +0000

titleA Guide to Mortgage Originators/titlepOf late, the importance of availing the services of mortgage originators, also known as bond originators, has been realized. You must have heard a lot about mortgage brokers or mortgage originators and the big roll they play in the home loan industry./ppWell, mortgage originator is the name given to the person who acts as a middle person between you and the money lending institution. He/she does everything on your behalf. There is complete ease and you dont have to do anything because these mortgage originators take care of everything. They keep track of the banking sector and also keep an eye on the mortgage deals offered by different banks. Their ultimate aim is to guide you on the best option for you./ppThey help you get the most lucrative option of loan with best rate of interest. Most of us are not even aware of how the banking sector works and it is our lack of knowledge that we fail to grab the right opportunities. It is here that the mortgage originator or mortgage broker comes into force to play a crucial role in our lives. They play the role of a mentor and stand at every step to guide us in the right direction. In case we go off the track, they alert us and then leave it on to us to take the final decision./ppMortgage originators do not charge anything from you but they take their commission from the bank itself that they recommend. Their benefits to the common men are innumerable and not using their free services does not make sense at all. They are experts in the banking area and they are in the best position to guide you on the most appropriate option./ppNowadays, a large number of people are considering the profession of mortgage originators, as there are bright prospects to grow and reach heights and also the money is good in this profession. To become a mortgage originator, you need to clear some certification exams and get the brokers license. You also need to undergo specialized training and then you can start your practice./ppBy now, you should understand the important role that the mortgage originator or mortgage broker plays in the life of an average person in helping solve their financial problems by giving them sound well thought out advice./ppBut, one fact you need to know is that you cannot rely on every person who claims to be a mortgage originator. Some people try to deceive you by recommending the banks where they get huge commissions for bringing prospective customers. If you want to find a genuine mortgage originator, then you need to bear in mind a couple of things. Ensure that there are sufficient evidences to support the credibility of the mortgage broker you are considering. Ask what sort of mortgage offers they can offer you. Make a comparative analysis of the offers given by different brokers and then whichever you find the most suitable, go for that one./ppTo conclude, we can say that the services of mortgage originator are valuable but you need to be smart enough to make the right choice of the mortgage broker./ppThe author is a a target=_new href=http://securebonds.co.zabond originator/a in South Africa. To learn more about South African a target=_new href=http://securebonds.co.zahome loans/a you can visit SecureBonds.co.za/pbrbr

“Secured Personal Loan Finance Uk-Features & Benefits”

admin — Wed, 10 Dec 2008 07:39:51 +0000

This Article is aimed at those Uk clients undecided whether to Remortgage or take out Secured Personal Loan Finance. Lets examine the Generic features of why someone may choose secured Personal Loan Finance:-

Combine all monthly credit outgoings into 1 single monthly payment

High interest rates on existing credit is unmanageable

Those requiring to quickly raise funds as Remortgaging is slower

People that have heavy Mortgage redemption penalties to exit existing Mortgage Lender

Been declined a Remortgage due to low Income multiples

Home loan is based on affordability not income multiples

Existing Mortgage rate is highly competitive & do not wish to Remortgage

May not wish to pay potential upfront fees for a Capital Raising Remortgage

Existing credit profile is poor & you do not wish to fully remortgage to a Sub Prime Lender

You wish to wait until your poor credit is out of date before remortgaging again

Declined a Remortgage by their Mortgage Lender due to their Loan to Value property rating

Mortgage arrears currently & existing lender will not advance further funds to remortgage

Note these features are for guidance purposes only & are not to be seen as a personal recommendations.

We act as Secured Personal Loan Finance Introducers only to professional brokers authorised & regulated by the FSA and FISA therefore we do not give advice. Credit subject to status. This will give you an idea of what may be possible.

Thank you for reading this article. Need Secured Personal Loan Finance Broker help on this subject – please click on the link below.

http://www.creditfinancecentre.co.uk/secured_personal_loan_finance.html

Martyn Spencer Bcs (Hons) Cert PFs – has 25 years experience in UK Financial Services. He is Director of the UK Credit Finance Centre, a unique website allowing customers to access UK Brokers for those looking for Mortgages, Loans, Debt Consolidation & Insurance.

4 Ways To Increase Your Credit Score Rapidly

admin — Tue, 09 Dec 2008 16:43:01 +0000

A credit score is a number assigned to your credit history; that means that a credit score is not built overnight. It reflects your financial actions over time and cannot be repaired magically or through “tricks.” It is possible, however, to raise your score in a reasonable amount of time by using credit responsibly and wisely.

Do not overspend. Credit cards are not designed to be used as a way to finance an extravagant lifestyle, so if it is going to take you a long time to pay off your debt, don’t charge that expensive luxury.

Pay off your credit cards or other revolving credit as quickly as possible. It is best if you can pay the balance on your credit cards in full each month, but if you sometimes can’t, don’t backslide and give up. Pay as much as you can – never less than the minimum – and keep paying until the balance is gone. While paying your balance down, avoid using the card for new purchases.

Avoid opening up several accounts at once. Each time you apply for credit, your credit history is checked. Too much activity over a short period of time decreases your score and is seen as risky behavior by lenders.

Pay everything on time. That includes your mortgage or rent, your utilities, your cell phone bill, and your secured and unsecured debt. By far, showing that you can pay what you owe will help improve your credit rating and make your financial life easier in the long run.

If You Can Read and Write at The 5th Grade Level I Can Show You How to Raise Your Credit Score Up to 249 Points in 90 Days! Raise Your Credit Score Now is the place to visit.

Check Out our Blog For More Informative Articles! Credit Repair Facts is a must.

Why Congress Needs to Approve a Banking Plan That Makes Sense

admin — Mon, 08 Dec 2008 04:15:41 +0000

The recent defeat of the “bailout” plan by the House of Representatives is shortsighted, and may prove harmful. Responding to feedback from their constituents, House Republicans defeated a proposal that would allow the transfer of tainted mortgages from financial institutions to a governmental agency that would administer these troubled mortgage loans.

Concerned citizens listed a number of reasons for their displeasure for the bill, among them:

• The bill is seen as a reward for firms that engaged in deceptive lending practices, or that encouraged speculation in the Real Estate market

• The bill would allow executives in companies that made bad decisions to collect excessive salaries and bonuses for their poor performance

• The legislation would come at the taxpayer’s expense, and would force ordinary citizens to subsidize practices that they neither condoned nor benefitted from

• Passing this legislation offers no guarantees that the underlying economy will recover

A number of these points are valid, but generally, they point to a desire to assign blame or fault for the current economic situation facing the country, and do not address the issue of how to restore confidence in our banking system. For this reason, I believe that Congress should focus on two separate bills to address the crisis.

The first bill should seek to correct the issues facing the liquidity crisis. This legislation needs to be passed quickly, to prevent a crisis of confidence which we witnessed on Monday, September 29, 2008. It should provide relief for mortgages that had turned bad, and should also provide relief for individual homeowners. A lending fund should be established that would allow homeowners to re-finance balloon loans with affordable fixed-rate loans, homeowners whose houses are facing foreclosure to obtain loans at more reasonable rates, and finally provide an effective auction-style processing of homes already in foreclosure, and returning the proceeds to a governmental agency. This agency should be empowered to re-sell these mortgages, when viable, at rates that produce a long-term profit for the agency.

These funds should then be returned to taxpayers as the mortgages are sold off at a profit. New mortgage funding practices should be drafted into the legislation which would require licensing of mortgage lenders, in much the same way as licensing is required for real estate agents, CPAs, Certified Financial Planners, etc. Effective licensing of mortgage lenders, along with stricter lending rules, would prevent the types of abuses that allowed anyone to become a “mortgage lender.”
The second piece of legislation that Congress should consider could be done in a more reflective manner. This piece of legislation should consider how to limit excessive executive compensation for firms that were involved in the “bailout.” Similarly, legislation should address abuses that can be shown to have occurred and appropriate fines and penalties enacted for the firms that contributed to abusive practices. Thirdly, where executives at abusive firms contributed or profited from abusive behavior, they should face the prospect of fines, penalties and jail-time for the abuses. Finally, a separate agency, similar to the Financial Accounting Standards Board (FASB) should be established that would be charged with developing best practices, guidelines, and oversight for the mortgage industry.

By separating out the legislation into two separate pieces, Congress can provide quick relief to the credit markets, provide assistance to taxpayers, and enact legislation at a later date that will address taxpayer concerns about accountability, regulation, and governance.

Author Biography

Peter Ponzio, the author of Children of the Night, is a CPA with over 30 years experience in Corporate Finance, holding positions as divergent as Treasurer, VP of Sales Administration, Vice President of IT, and General Manager of an internet start-up company in the late 1990s, and CFO at a subsidiary of a Fortune 100 company.

Mr. Ponzio graduated with a degree in English literature from Loyola University of Chicago, and an MA in Literature from Northwestern University.

Peter’s website can be reached at http://www.peterjponzio.com

How to Choose an Independent Financial Adviser

admin — Fri, 05 Dec 2008 18:51:22 +0000

We tend to turn to all manner of people for advice and often take pot-luck on whether the person we have asked is especially knowledgeable, whether we can rely on them to be giving impartial and independent advice, or whether their answer starts with the phrase “If I were you…” When it comes to seeking reliable advice about making your own money work its hardest for you, however, there is no need to leave so much down to mere chance and the luck of the draw – you should consider choosing an Independent Financial Adviser.

The title says it all. An Independent Financial Adviser will be independent – he will not be in the employment of a single company whose financial products he sells on commission or for any other consideration. His financial advice will be just that – advice based on an up to the minute and extensive knowledge of the many and varied financial products available on the market. He will not tell you what to do or what decisions to make, but will place before you all the well-reasoned options from which you can make your own informed choice.

Your search for a reliable and fully competent Independent Financial Adviser is made easier by the fact that each one has been licensed and continues to be regulated by the Financial Services Authority. You can be reassured by the knowledge that such recognition does not come easily, but is a measure of the individual adviser’s professionalism and the qualifications he has had to earn.

When choosing an Independent Financial Adviser, therefore, you might want to check out the particular qualifications he or she has been awarded. These can come from a number of well-established and respected institutions, of which some of the best known are the Chartered Insurance Institute (CII), the Chartered Financial Analysts (CFA) Institute, the Personal Finance Society (PFS), the Pensions Management Institute (PMI), the Institute of Financial Planning (IFP), the Securities and Investment Institute (SII), and several others, all of which demand comprehensive knowledge and high-level training in financial services and management. What is more, continuing recognition as an Independent Financial Adviser demands a constant updating of that expertise and knowledge as different financial products come onto the market.

You will know when you have found the right Independent Financial Adviser for you when you are in a position to take – or choose not to take – the advice offered. The Adviser’s role is, in fact, a difficult one to get right. In draws a fine line between on the one hand instructing the client what to do and on the other hand expressing a view that comes across as no more than a disinterested opinion. Rather, the advice required of a professional Independent Financial Adviser is the “best advice” from the client’s perspective. What the Adviser must try to do is to put himself into the client’s position for a moment and base his advice and recommendations purely on what is “best” for his client. This is the final and most difficult test of the independence and objective impartiality of the truly competent Independent Financial Adviser.

Sean Horton is a Director of Enhanced Wealth, a whole of market mortgage broker and independent financial adviser specialising in mortgage advice and the associated areas of income protection, mortgage protection, and mortgage life cover.

Ability to Pay

admin — Tue, 02 Dec 2008 15:11:46 +0000

Can I get a side of fraud with my loan documents?

It turns out that consumer credit reports alone are not the best indicator for a successful mortgage loan. What happened to underwriting? Did financial institutions failed to verify income and the ability to pay before they approved home loans?

It seems nobody was worried about verifying income in the mortgage loan sector. During the past years it was very common to get a mortgage loan without any proof of income. Loan brokers would often help tweak the numbers to make a no income check loan work. This has caused many unqualified borrowers acquired homes they couldn’t afford. Even when a bank wanted to verify these borrower’s documents there were not validity certainty. Many risky mortgages in the “suprime” subsector were approved during the past years without any proof of income and without checking the ability to pay for it. For a topic to be discussed later there was quite a bit of document manufacturing that was occurring. This at the same time that documentation hurdles were being lowered almost everyday.

Unfortunately, banks that originated loans were not too concerned with borrower’s ability to pay because they would sell off the loans quickly. These bad mortgages ultimately became the reason why many financial institutions holding this paper are now facing bankruptcy. There is a moral hazard that exists to this day because originators are not holding the paper. The U.S. financial industry now needs stricter regulation regarding income verification for all mortgages. This lack of honest underwriting actually fueled the rapid housing boom in Florida and California. Now 60% of all foreclosures in the U.S can be traced back to those two states.

Everyone knows that 90% of consumer credit files are inaccurate. If you want to read more about how to fix this mortgage mess please click here to check out abilipay.com to learn what important Americans have to say about toughening income verification and the ability to pay for all in the United States.

Ways on Finding Your Dream Home – Few Tips

admin — Mon, 01 Dec 2008 02:22:22 +0000

In finding for a real estate agent, ensure the agent is a buyer’s agent. Buyer’s agent is an agent that represents the buyer for the deal in Florida real estate market. Buyer’s agent can absolutely help you in looking for the right property in Florida real estate market. Certainly, the agent can aid you in your buying process.

Assign few of your time and effort in locating the right real estate agent. Ask for reference to the persons you trust such as your family, friends and investors. Contact few agents, maybe at least three real estate agents and schedule each for interview. Evaluate their expertise and experiences, and then choose.

Most buyers’ mistake is that they typically start by finding for their dreams home. They seek and visit some homes, they even spend some money just to get their dream home right away. They do these things without even making sure that they will be getting an approved mortgage. So they end up getting bad news at the moment that they already locate their dream homes and already spend some of their money. It is too annoying and nerve-racking on their part right!

But in planning to purchase a home in Florida real estate market, there are stuffs that you must settle and consider in order to make your home buying successful.

Your finance is one of the factors that you need to consider and resolve at first. You can work with a mortgage broker in finding the right mortgage in buying a home in Florida real estate market. Mortgage broker do not work with a particular mortgage company but the broker have plenty of contacts with different lenders. So working with a mortgage broker is a beneficial.

When it comes to purchasing a home in Florida real estate market, you have to ensure that you have systematically inspected the house before purchasing it. You can hire a professional to do the inspection in order to guarantee that even the private wells, mold issues, gas levels, septic systems, and so on where inspected. With this, you can save yourself from any trouble later on.

Certainly, Florida has a lot to offer, so finding a home in Florida real estate market has a lot of advantages. You will have the change to explore the beauty of Florida. And positively have the privilege to use the striking amenities the place has to offer.

Article Author Eliza Maledevic from http://www.Jump2top.com, a SEO Company.