7 Reasons to Use Land Trusts

The land trust is a very powerful tool for the savvy real estate investor. A land trust is a revocable, living trust used specifically for holding title to real estate. Each property is titled in a separate trust, affording maximum privacy and protection.

Here are seven reasons to use land trust for titling property to real estate.

1. Privacy. In today's information age, anyone with an internet connection can look up your ownership of real estate. Privacy is extremely important to most people who don't want others knowing what they own. For example, if you own several properties within a city that has strict code enforcement, you could end up being hauled into court for too many violations, even minor ones. Having your real estate titled in land trusts makes it difficult for city code enforcement to find who the owner is, since the trust agreement is not public record for everyone to see.

2. Protection from liens. Real estate titled in a trust name is not subject to liens against the beneficiary of the trust. For example, if you are dealing with a seller in foreclosure, a judgment holder or the IRS can file a claim against the property in the name of the seller. If the property is titled into trust, the personal judgments or liens of the seller will not attach to the property.

3. Protection from title claims. If you sign a warranty deed in your own name, you are subject to potential title claims against you if there is a problem with title to the property. For example, a lien filed without your knowledge could result in liability against you, even if you purchased title insurance. A land trust in your place as seller will protect you personally against many types of title claims because the claim will be limited to the trust. If the trust already sold the property, it has no assets and thus limits your exposure to title claims.

4. Discouraging Litigation. Let's face it, people tend to only sue others who appear to have money. Attorneys who work on contingency are only likely to take cases which they can not only win, but collect, since their fee is based on collection. If your properties are hard to find, you will appear "broke" and less worth suing. Even if a potential plaintiff thinks you have assets, the difficult prospect of finding and attaching these assets will discourage litigtation against you.

5. Protection from HOA Claims When you take title to a property in a homeowner's association (HOA), you become personally liable for all dues and assessments. This means if you buy a condo in your own name and the association asseses an amount due, they can place a lien on the property and/or sue you PERSONALLY for the obligation! Don't take title in your name in an HOA, but instead take title in a land trust so that the trust itself (and thus the property) will be the sole recourse for the homeowner's association's debts.

6. Making contracts assignable. The ownership of a land trust (called the "beneficial interest") is assignable, similar to the way stock in a corporation is assignable. Once property is title in trust, the beneficiary of the trust can be changed without changing title to the property. This can be very advantageous in the case of a real estate contract that is non-assignable, such as in the case of a bank-owned or HUD property. Instead of making your offer in your own name, make the offer in the name of a land trust, then assign your itnerest in the land trust to a third party.

7. Making Loans "Assumable". A non-assumable loan can become effectively assumed by using a land trust. The seller transfers title into a land trust, with himself as beneficiary. This transfer does not trigger the due-on-sale clause of the mortgage. After the fact, he transfers his eneficial interest to you. This latter transaction does trigger the due-on-sale, but such transfer does not come to the attention of the lender because it is not recorded anywhere in public records. This effectively makes a non-assumable loan "assumable".

As you can see there are many creative and effective uses for the land trust, limited only by your imagination!

How to Keep a Positive Perspective in a Negative Market

I am sure you’ve heard the expression, “Attitude is everything.” This is very true. Right now, it’s simply your attitude and mentality that will give you the edge over others who are trying to invest in this highly violatile market. You’ve undoubtedly heard the importance of thinking positive and having the right attitude. Most people are intelligent enough to know that this statement is true. Some people reading this will argue that a positive attitude doesn't always work. Well, maybe not, but I know one thing for sure - negative thinking and a negative attitude NEVER works! So your only choice and your only chance for success in this market are to pick the positive things in life and maintain a positive attitude at all times.

I once read a fortune cookie that said, “An optimist is someone who tells you to cheer up when things are going his way”. I know that if you are reading this article, times may be difficult and you need serious answers to your burning questions such as, “How I profit in a slow market”? There are many answers to this question, but first I need to impart to you some relative perspective.

A History Lesson on Real Estate Cycles

About every ten to twelve years, as an average, real estate values tend to double in most major metropolitan areas. For example, in the 1920’s, the original colonial homes sold for just under $2,500 in Long Island, New York. Since then, real estate prices have doubled almost eight times over the last 80 years. That averages out to a 100% increase approximately every ten years. An interesting note to this is that about every ten to twelve years, real estate values must correct before they enter their next “doubling cycle”.


It’s Not a Matter of If, It’s a Matter of When

The evolutionary process is three steps forward and one step backwards. For example, imagine a 100% increase occurring in three steps of one-third parts each. The last market cycle of the 1980’s was one in which real estate values doubled, followed by a correction of the early 1990’s, which equated to a 20-30% decrease over a three to five year period. This cycle was then followed by the post-millennium cycle boom of 100% from the last high point of the previous cycle. We are now in the naturally-occurring phase of a correction in the cycle. This essential and beneficial adjustment gives the market pause to reflect and re-gather momentum and strength for the next doubling cycle. This has occurred time and time again because the long-term demand for housing is growing an exponential rate based on population growth to almost double in the United States by 2050. This will continue to drive prices higher as it has for the last 100 years.

Since we now know based on history that nearly all real estate prices will double again, it’s not a matter of if, it’s a matter of when your existing houses will sell. Sharing these facts with your prospective buyers will put them in the right frame of mind to buy now versus next year if they plan on staying in the home more than five years. If a buyer is apprehensive about being the right time to invest, ask him if he’d like to buy his parent’s home for the price they paid for it – the answer will be obviously “yes”.

Maintain a Positive Attitude Assuming a Negative Result

In “Winning Through Intimidation” author Robert Ringer talks of the importance of maintaining a positive attitude through the assumption of a negative result. In other words, Ringer suggests that you be prepared for the worst case scenario while at the same time putting your best foot forward to get the best possible result. This will take the mental pressure off of you and allow you to focus on getting the job done. This approach, I believe, allows you to be positive and realistic in your mental assessment buying and selling houses.

If it Bleeds, it Leads

There’s an old expression in the media business, “If it bleeds, it leads.” In other words, the media loves to cover negative news more than positive because it sells better. When the real estate market is in turmoil, the media loves to run these negative headlines to keep reminding people how bad things are. When buyers hear the bad news, it affects demand because the negative news drives fear, which makes buyers worry about whether the time is right to buy a home.

Is the media simply reporting the news or does the media actually affect the news in this regard? The answer is obviously both. The media reporting negative news alone can’t shape a real estate market. However, since perception is often reality, when buyers are spooked, they may shy away from buying. This affects lenders, builders, real estate agents and other professionals who rely on the real estate business for their income. It becomes almost a self-fulfilling prophecy because things get worse and the media again reminds us how bad things are.

But, are things really as bad as the media reports? At the time of this article (October 2008) the numbers certainly do reflect falling home prices and rising foreclosures. When you hear that foreclosures have doubled or even tripled in a particular area, this may sound catastrophic at first until you realize that the vast majority of homes (97-99%, depending on the local market) are NOT in foreclosure. Despite the doom and gloom, there’s always a buyer for a well-kept home offered at the right price and terms. In short, don’t read the paper if you want to keep a positive attitude and sell your homes fast!

Ready Fire, Aim, Fire

Well done is better than well said – you have to take a whole lot of action to get your houses sold in s slow market. In a good real estate market, people can sell a house fast, so when things slow down, they figure, “Oh well, there’s nothing I can do.” Nothing could be further from the truth. Not only is there something you can do, but there’s a lot you MUST do to get your house sold. However, it’s not just about working hard, it’s about working SMART. You need to do things in the right order and in the right way to get the proper results.

However, don’t focus too much on perfection before you take action. You’re probably familiar with the phenomenon of the “C” student who outperforms the “A” student in real life. This is because the “C” student is often satisfied with doing a mediocre job at something, but just getting it done. The “A” student mentality often leads to paralysis of analysis and inaction. In other words, the bottom line is getting your house exposed to as many buyers as possible, not necessarily getting it done perfectly. For example, many sellers want to show their house only when it’s convenient for them and the house is in perfect shape to be shown, instead of when a buyer is ready. While showing a house in its best condition is a priority, it doesn’t make sense to put off a ready, willing and able buyer for too long.

Fear

Many people reading this are prone to inaction because of fear of doing it incorrectly. Remember, it’s not a matter of doing it perfectly, but putting forth your best effort. As I discussed earlier, a lot of effort at a “C” level beats doing less things at an “A” level.

Lack of knowledge certainly makes it difficult to sell a house fast in a slow market, and in fact is probably the single biggest drawback for the average person. Most people only have the opportunity to sell a few houses in their lifetime and often rely on professionals to do the work. Thus, the average home seller does not have enough practice to get really good at the job. In fact, most real estate agents who sell houses for a living are hardly good at it. The top 5% of agents in any market do the vast majority of the business.

Taking the time to learn what to do is a very important part of the success in selling a house. In the classic book “Think & Grow Rich”, Napoleon Hill writes about the importance of learning the right things. He distinguishes between general knowledge and specialized knowledge. Certainly, there’s a lot of general real estate knowledge in bookstores and floating around the Internet, but this book is unique because it offers the very specialized knowledge of how to sell a house … QUICKLY! Our experience in selling thousands of homes will reveal the very specialized knowledge you’ll need to get your house sold fast and at the highest price you can get for your market.

Owner Financing Mechanics

To sell a house quickly, it must be attractive and so should the terms. By fixing your home to present it in the best light and offering flexible terms as well, you have in fact given your buyer an "offer they can't refuse." When offering your house for an all-cash purchase only, you limit your market. If you’re flexible on the financing terms of the property, you increase your pool of buyers and thus the demand for your house

Let’s discuss the mechanics of the owner financing, which is different if the seller has existing financing on the property.

Property Owned Free and Clear

Let’s begin the discussion with a simple explanation of owner financing with a property that is owned free and clear of any mortgage liens; that is, there is no debt owed on the property. Let’s say Sally Seller owns her home “free and clear” — that is, she owes nothing to the bank and there are no mortgage liens on the property. Sally agrees to sell her property to Barney Buyer for $100,000, with the terms of 5% down and owner-financing for $95,000 (95% of the purchase price). At closing, Barney tenders $5,000 in cash and signs an I.O.U. (known as a “promissory note”) for $95,000. Sally executes and delivers a deed (ownership of the property) to Barney. The promissory note is secured by a mortgage that is recorded against the property as a lien in favor of Sally. In this case, Sally is essentially acting as a lender to fund part of the purchase price of the house.

Sally can set a balloon date in the promissory note by which the loan has to be paid in full, at which time Barney must either sell the property or get a new loan from a traditional source such as a bank or mortgage lender. When the new loan is obtained, the loan to Sally is paid off and the mortgage lien is removed from the property. In some states a different form of mortgage called a “deed of trust” is used. A state-by-state list can be found in the resource directory in the appendix of this book.

2. Seller Has a Mortgage, But Some Equity
The preceding example is for illustrative purposes only, because if you’re reading this manual you probably owe money to a lender secured by a mortgage lien on your property. Let’s consider a more common example — a house that has some equity because it has appreciated since it was purchased, or was purchased with a sizeable down payment.

Let’s say Sammy Seller owns a property worth $100,000 that’s encumbered by a mortgage of $80,000. Sammy agrees to sell the property to Betty Buyer for $100,000. Because there’s $20,000 in equity ($100,000 value minus the $80,000 loan), Betty offers to pay $10,000 down and borrow the balance of the $90,000 from Manny Mortgage Lender. At the last minute before closing, Manny decides that Betty Buyer’s eyes are the wrong color and refuses to fund her loan. Instead, Manny offers to lend $80,000, which is $10,000 short of the amount Betty needs to close. One choice is for Sammy to drop the price of $90,000. Another choice is for Sammy and Betty to part ways and for Sammy to put the property back on the market to find another buyer.

A third choice is for Sammy to accept a promissory note for $10,000 as part of the purchase price. At closing, Betty will pay Sammy $10,000 down, borrow $80,000 from Manny and give Sammy a promissory note for $10,000. Sammy signs over to Betty a deed to the property, and Betty signs a mortgage lien for $80,000 to Manny, who will possess a first lien on the property. Betty also signs another mortgage lien to Sammy, who will have a second mortgage on the property. In a year or so, Betty gets a new loan for $90,000, paying off both the first (Manny’s) and second (Sammy’s) mortgage liens. In the meantime, Betty can make Sammy payments of interest on the $10,000 promissory note, which is a nice income stream for Sammy.
3. Seller Has a Mortgage, and Little or No Equity
If the seller has little or no equity but a reasonably low payment on his note (whether a fixed-rate loan or fixed for a few more years), he can sell the property by using a wraparound transaction. A “wraparound” or “wrap,” is an arrangement wherein you sell a property encumbered with existing financing by accepting payments in monthly installments, leaving the existing loan in place. The seller uses the payments he collects from the buyer to continue making payments on the underlying mortgage note.

For example, Susie Seller owns a house worth $100,000 and she owes $90,000 to First Federal Financial on a favorable 6%, 30-year, fixed-rate loan. Her principal and interest payments on the loan are roughly $600 per month. She can sell the property for $100,000 for cash, but this might take a few months and $6,000 or more in broker fees and concessions, leaving breadcrumbs on the table after Susie pays off her loan. Susie advertises the property as for sale by owner (FSBO) with owner financing and sells the property to Barry Buyer for $100,000, taking $5,000 down and carrying the balance of $95,000 at 8% for 30 years. Susie doesn’t pay off her underlying loan, but rather collects payments from Barry (roughly $700 per month) and continues to make payments on the underlying loan (roughly $600 per month). Susie collects $100 per month cash flow on the “spread” until Barney refinances.Mechanics of a Wraparound Transaction

A wraparound is commonly done with an installment land contract. The installment land contract is an agreement by which the buyer makes payments to the seller under an agreement of sale. The transaction is also known by the expressions, “contract for deed” or “agreement for deed.” The seller holds title as collateral until the balance is paid. In many ways, the installment land contract is similar to a mortgage, in that the buyer takes possession of the property, maintains it and pays taxes and insurance. However, the deed remains in the seller’s name until the balance of the debt is paid by the buyer.

An installment land contract usually contains a forfeiture provision, under which a defaulting buyer may be evicted like a defaulting tenant. Under the contract, legal title remains in the seller’s name until the purchase price is satisfied. When the buyer satisfies the indebtedness, legal title passes to the buyer.

Financial Goals

bet you wrote down your goals in January 1st this year. Is that all? Did you re-think them this month and write it down again? If you don't know what your goals are, how are you going to measure whether you've reached them. And, I would bet that if you didn't write them down at all, you are in the same financial position as you were on January 1st. Ouch!

Is it time for a change of strategy? Maybe so, read on...
Take the most accurate archer, the best in the world. I guarantee that I can do a better job of shooting than he can...IF...you first blindfold him and turn him around a few times. You might think, why that is ridiculous. How is he supposed to hit a target he cannot see? Here's a better question: How are YOU supposed to hit a target you don't even HAVE?
When investing in real estate, in order to succeed, you need to set financial goals. Here's how to go about it.

Make sure your goal is something you really want, not something that just sounds good. People say they would like a yacht. But do you really? Many yacht owners joke that a yacht is a hole down which you pour tons of money.

Be specific. Wrong: I want lots of money. Right: I want to be earning $5,000/month by one year from now.

Be detailed. When the subconscious mind has detailed instructions, miracles happen.
Shoot for the moon, but, at the same time, be realistic. “I want to make $500,000 the first year will most likely take a miracle. Five figures (on the high end)is much more realistic
Make your goal measurable. What gets measured gets done.

Write your goal down. This sets an unconscious process in motion to get your goal accomplished.
Write your goal in positive, not negative, terms. Write down what you want, not what you don't want.Wrong: I want to leave my present job. Right: I want to replace my current income so I can work from home.

Include a deadline for achieving your goals. This prevents procrastination. It also separates your goals from your dreams.

Having pictures of the things you will have and do with the money you make helps. Use a scrap book with color pictures of cars, homes, vacations, etc. you want.

Your goals should be action-oriented. What steps do you need to take to reach your goals?
Break down your goal into manageable steps. With each activity, ask yourself: Does this activity take me closer to my goal?Keep your goals to yourself. You avoid any negative people around you who might sabotage your efforts. Some people cannot stand to see you succeed. And some spouses hate the idea of making a change, believe it or not.

Motivational tapes, played in your car on the way to work, can help dramatically. The ones by Nightingale-Conant are especially good.

Be prepared to review and restate your goals, as you reach a certain level, or your situation changes, and you realize that you have not reached high enough.

Zero In On Motivated Sellers

When investing in real estate, you want to focus your efforts on motivated sellers. This is true especially if you are just starting out. and dealing with motivated sellers makes the process go even faster, which means cash in your pocket sooner rather than later.

Motivated sellers are people who MUST sell their homes. So...what motivates a seller to have to sell his home? Financial distress for one. Maybe he is behind on payments. Maybe he is facing foreclosure. Maybe even bankruptcy. Maybe he is facing a huge medical bill. Or a divorce settlement is looming on the horizon.

Positive reasons can force the need for a quick sale. A job relocation and not wanting to deal with a vacant house, let alone rent it out and have the value plunge. Getting married and having no need for two houses.

You may think you are taking advantage of these homeowners. Actually, you are doing them a favor. Think what happens if the homeowner does not make the sale. He could be foreclosed upon, or worse, forced into bankruptcy. Or an empty house could be destroyed by vandals. Renters could wreak havoc on the value of the house.

It's easy to see, then, that these sellers need you. You are, in fact, a savior of sorts.

O.K., now how do you find these motivated sellers? Some tips:
1. Build a website, or have one built for you, announcing that you buy houses. Not a techie? Then have someone from www.elance.com build one for you.
2. Run classified ads in your local newspaper. Place your classifieds in dailies, weeklies, even free newspapers. Hint: advertorials(looks like editorial copy; reads like an ad; purports to educate but is really an ad)

3. Set up bandit signs, those little signs on stakes and phone poles, announcing that you buy houses for cash, fast. Warning: Don't get carried away creating these until you find out they are legal in your area. If they are not, you can always place them after 5P.M. Friday evening through Sunday evening, because the sign police are not out and about then.

4. Put signs on your car. You are now a rolling billboard. You'd be surprised how many people will approach you when you are parked somewhere.

5. A bit more expensive, but take out a Yellow Pages ad. Hint: Use the advertorial approach to stand out from competitors.

6. On line, go to classified ad sites, especially free ones, like www.Craigslist.org

7. Once you get going, and can afford it, going the direct mail route can be quite profitable. Mail to people within a zip code (shotgun marketing) or get a list of particular people, such as those in foreclosure (targeted marketing).

The bottom line is you can't sit around waiting for deals to come to you, you must go out and find them and/or do things to get people to call you. 90% of sellers are not motivated, so be patient and be willing to weed through a lot of unmotivated sellers before you get that one that is dying to sell his home for cheap.

Disclose on Short Sale Flips?

Short sale flips - the process of shorting a property then reselling it for a cash profit in a simultaneous closing has been taking heat lately from title companies and real estate brokers. Realtor blogs are filled with drivel about how these transactions are illegal or unethical. What's the real truth?

The Basic Process
The process of the short sale flip works as follows.
Step 1: Investor signs a contract to buy a house from a seller who is behind in payments.
Step 2: Investor contacts seller's lender to negotiate short sale
Step 3: Investor gets lender to approve short sale
Step 4: Investor lines up backend buyer
Step 5: Investor closes with seller, paying off lender, then resells to backend buyer in simultaneous closing for a profit.

In essence, this is no different than a regular wholesale flip except instead of paying off seller's lender in full, investor pays off seller's lender at a discount.

The Hoopla

Some Realtors and title companies think there should be full disclosure to the lender and seller about the resale of the property, otherwise the bank and seller are being "defrauded". In order to be defrauded, someone must be owed a legal duty of disclosure.

As far as disclosure to the seller, I see no issue because the seller is not getting any money out of the deal either way. His lender will not agree to a short sale while the seller walks away with money. So any profit made by the investor is fair game. As far as disclosing to the lender that you plan on reselling the property for a profit, of course you are going to do that. That's what investors do - they make a profit. If you planned on keeping the property as a killer rental instead of flipping it, there would be no issue. If you fixed the property up and sold it 3 months later, there would be no issue. For some reason everyone gets upset because you are flipping it an hour later for a profit. In order words, what exactly triggers a duty to disclose to the lender that you intend to make a profit?

Disclosure

Chances are this will end up in court someday and a jury will have to be convinced that failing to tell people you are reselling your property for a profit is somehow a fraud upon the lender or the seller. Nobody wants to be the test case, so I think that to be on the safe side, your contract with the seller should clearly disclose that you intend to resell the property for a profit.

"Buyer may resell the property in a simultaneous closing for a higher price and make a profit."
This covers the seller, but what about the lender? Well, the lender gets a copy of the contract in the short sale package the investor submits to the lender. This puts the bank on notice (We all know that the package is 100 pages long and the bank's loss mitigator is probably not going to read the contract in detail, but who's fault is that?). Should you further disclose in your cover letter to the lender that you have a buyer lined up to resell the property to at a higher price? Maybe. Maybe not.

Delays hit some PPI paybacks as lending firms go bust

Delays hit some PPI paybacks as lending firms go bust

Borrowers wrongly sold expensive payment protection insurance policies by specialist loans companies are facing huge delays when they claim for compensation. Most lenders sold PPI, which is designed to pay out if borrowers lose their income through redundancy or illness, and many are now paying back thousands of pounds to people who claim the plans were inappropriately sold to them for various reasons.

Many of the payment protection insurance policies were sold to customers who were not entitled to take out the insurance due to their age or pre-existing health restrictions. There are also cases of consumers either not knowing the insurance was included or being told it was a requirement of the loan or credit agreement being approved.

The sales staff selling the policies, whilst making vast commissions were not following any key facts process or due dilligence required in the recommendation of these types of products. But some lenders - especially smaller firms specialising in riskier borrowers - have gone bankrupt or dissolved themselves, effectively eluding the liability for any PPI mis-selling.

Consumers may face long delays in receiving money back on mis-sold PPIs from these types of lenders. In these cases claimants must appeal for refunds of premiums to the Financial Services Compensation Scheme, the organisation that pays out when financial companies fail.

This process can take years and consumers have no redress against the company for the sale of the PPI unless they go to the Financial Services Compensation Scheme which is a lengthy process that can take up to a year.

High street bank Alliance & Leicester was fined a record £7 million today for

High street bank Alliance & Leicester was fined a record £7 million today for "serious failings" over selling techniques for payment protection insurance (PPI).

The Financial Services Authority (FSA) said telephone sales staff at the bank failed to make clear that the insurance for its loans was optional, and they were also trained to put pressure on customers when they queried the inclusion of PPI.

FSA enforcement director Margaret Cole said: "The failings at A&L (Alliance & Leicester) are the most serious we have found. This is reflected in the record PPI fine."
The failings occurred between 2005 and 2007, the FSA said, when A&L sold 210,000 policies at an average price of £1,265.

PPI covers people taking out loans against risks including unemployment or serious illness.
A&L chief executive David Bennett said the bank would pay back any customers found to have lost out unnecessarily from the mis-selling.

Mr Bennett said: "I apologise sincerely for our shortcomings. We will be writing to every customer concerned and will be working with independent accountants and the FSA to ensure that we put right any disadvantage identified.

"Customers can be assured that we are taking this matter very seriously and that we have reviewed and tightened up our processes from December 2007 to ensure that all customers get the right information and advice."

A spokesman for A&L said "it was impossible to say" at this stage how much might have to be paid back to customers.

The bank said that, during the period concerned, 41% of personal loan customers took out PPI with their loan. More than 80% of claims made during the period were paid, it added.
All customers who took out PPI loan insurance following a phone call between January 14, 2005 and December 31, 2007 will be written to.

"The letter will set out the issues and they will then have the opportunity to raise any concerns," A&L said.

The FSA said the failings resulted in "unacceptable levels of non-compliant sales and a high risk of unsuitable sales" over the three-year period.

Ms Cole said: "Customers should be able to rely on impartial advice based on their individual needs and demands. It is particularly unacceptable for a firm to train its advisers to put pressure on customers when recommending insurance cover which they have not asked for and may not need."

The FSA has previously taken action against 18 firms over poor PPI selling techniques.

Institutions fined include Liverpool Victoria Banking Services for £840,000, HFC Bank for £1,085,000, Loans.co.uk £455,000, Capital One Bank (Europe) plc £175,000 and Land of Leather for £210,000.
Ms Cole said: "It is very disappointing that, after three years of regulation, we are still finding serious problems in PPI sales."
The FSA's fine came on the same day that A&L's £1.2 billion takeover by Spanish bank Santander was given the legal green light by the High Court.
The FSA said A&L's agreement to settle at an "early stage" of the investigation and carry out the comprehensive customer check had saved the bank from a £10 million fine.
As well as being the biggest ever PPI-related fine, the £7 million is the third biggest FSA penalty.
The watchdog said the enforcement action started after a visit to the bank in May last year which was part of an industry-wide PPI survey.

Investigators subsequently checked 100 randomly-selected sales calls covering an 11-month period from February to December last year and found that "very few calls appeared fully compliant with its requirements".

"The likelihood is that those findings will have been replicated throughout the relevant period," the FSA said.

Which? Chief Executive, Peter Vicary-Smith, said: “It’s great to see the FSA hitting companies where it hurts. This record PPI fine should send out a clear message to other companies that mis-selling will be severely punished.

“Now the fine has been set, we want everyone who was mis-sold to get their money back. This can be done by ensuring that any communications to consumers are clear and straightforward about their rights.

“Anyone who has a personal loan or credit card should check whether they have a PPI policy and, if they think it was mis-sold to them, should consider making a complaint*.”

Easy Credit Restoration

If you are interest in learning about the credit repair process then you will want to read this article. We will be discussing the two key components of credit restoration. After reading this article, you should have an understanding of what you need to do to improve your credit score.
Clean Up Your Credit Report

Did you know that 89% of all credit reports contain errors? Because the credit bureaus are not required to confirm information in your credit file unless you file a credit report dispute, it is critical that you look at your credit report frequently. If you know you are going to make a major purchase, like a home or a vehicle, then you should look at your credit at least six months before to doing so.

If there are mistakesis incorrect data in your credit file, you will want to dispute these with each of the three major credit reporting agencies. Once they receive your dispute, the creditors will have 30 days to respond. If they fail to verify the account or fail to respond, the credit bureaus must delete the account from your credit file.

Establish Good New Credit

Establishing new credit with an excellent payment history is something that many people neglect to do when working on credit repair. The reality is that creating new credit is just as important as eliminating derogatory items. There are several ways that you can create new credit even if your credit is bad.

A Secured Credit Card

Guaranteed credit cards are a great way to reestablish credit. You place a deposit with the lender and they issue you a credit line equal to your deposit.
CD Loans

A Certificate of Deposit Loan is a loan with your bank or credit union that is secured by a certificate of deposit held at that lending institution. The term of the loan and the certificate of deposit are typically the same.

Department Store Credit Cards
Retail stores typically have more lenient underwriting guidelines as compared to a usual unsecured MasterCard and Visa. The reason for this is of course that they want you to spend money in their stores.

Gas Cards

Like department store credit cards, gas companies have more lenient underwriting because they want you to spend money with them. Since gas is something you are going to spend money on anyway, this can be a great way to establish a payment history.

Merchandise Cards

Merchandise Cards are another way that you can build credit. These are catalog companies that issue you credit so that you can shop in their catalog. You do need to be careful and make sure that you buy smart from them as many of their items can be overpriced. The biggest down side is that most merchandise cards only report to one or two of the credit bureaus

Various of Mortgages

Whether you’re applying for the first time for a mortgage or changing lenders, there are important things you should know that could save you money. It is possible for you to obtain the home or business financing you need! Consider the advantages of extending your home mortgage payments over a thirty-year period. Another option is a 30-year mortgage, which offers affordable monthly payments, low fixed rates, and access to home equity cash and stability and predictability.

Another choice is an adjustable rate mortgage, your choice or acceptance of an adjustable rate mortgage, can and will have a profound effect on any future mortgage payments. Financial hurdles which often seem difficult to manage can be navigated successfully with the assistance of our experienced and skilled loan specialists.

Now that you have made the smart decision to purchase or refinance your home or commercial property, let one of our financial lending experts assist you in navigating the ins and outs of the process. A commercial mortgage can help you achieve your business goals by providing the capital you need to start a business or restructure your existing business. If you are a homeowner and need money, you can use your home to obtain a second mortgage.
A second mortgage is an excellent way to get quick cash for unforeseen expenses such as, emergency expenses, or home repairs. An interest only mortgage offers the homeowner the opportunity to make a lower than customary monthly mortgage payment. An experienced and qualified lender will be able to assist you in the various aspects of loan amount determinations and down payment options; however, having something in mind ahead of time can help expedite the loan process when seeking mortgage refinancing.

Types of Mortgages you should consider:

30-year mortgage
Adjustable Rate Mortgage
Debt Consolidation Mortgage
Bad Credit Mortgages
Commercial Mortgage
Second Mortgage
Interest Only Mortgage
Lowest Mortgage Rate
Mortgage Refinancing

Shopping around mortgage websites, comparing and negotiating are the tools for success when it comes to obtaining the lowest mortgage rate. There are many factors which can influence your interest rate including your credit score (FICO), your source of financing, type of mortgage (fixed or adjustable rate), location, lenders fees, income source, as well as employment history, amount of down payment, etc.

Our lending specialists are skilled in helping borrowers obtain financing in a variety of areas including home financing, refinancing, debt consolidation and home equity loans, etc. There are a number of financial institutions more than willing to lend you the money you need, but proceed with caution. While it is true that rates are low, you have to consider other costs when thinking of taking on a second mortgage, interest only mortgage, commercial mortgage, adjustable mortgage, or a 30-year mortgage.

The way of bank foreclosure homes for sale

If buying a home for investment purpose is underway, it is a brilliant idea to buy from foreclosure homes this time? You may not realize but there are numerous bank foreclosure homes for sale enlisted in foreclosure homes listings, available online.

When you refer to the long list of bank foreclosure homes for sale, you would come across three types of mortgage real estate opportunities, namely 1.Pre-foreclosures 2.Foreclosures for sale and 3.REO properties

These three types of investment opportunities in the foreclosure listings are actually the three phases that each foreclosure property goes through. You can buy foreclosure homes at any one of these phases.

The prospects of buying pre-foreclosures

Pre-foreclosures involve interacting with the homeowner directly and in fewer cases, with the lender of the property. It is a highly lucrative bargain for both the parties. The home owner wishes to make a quick sale and you wish to buy this property (under consideration for foreclosure) at a significant concession.

By buying a pre-foreclosure, you may secure a discount up to 35% and the sale agreement may be much more flexible. You can research to your heart’s content and seal a deal for low cash down payment.

The prospects when you bank foreclosure homes for sale in auction

To buy foreclosure homes in the auction can be the most profitable way to buy a mortgaged property. It can, alternatively, turn into a bad deal in the heat of the moment, as you compete with other investors and lenders while bidding.

These property deals can bag you up to 45% discount on the market value of the property. The entire procedure, however, may end up wasting a lot of your valuable time and give you no time to research.

The prospects of buying a REO property

REO or Real Estate Owned properties are easiest to buy because lender is in possession of the property and wishes to cut the losses. The motivation to sell the property is apparently high. The property is already free from all liens and with a clear title. The savings are, however, milder; barely up to 15% savings on the market value.