Mortgages and Real Estate

Increased "Section 202" funding good news for senior citizen housing

Charles Feldman Jan 3rd 2010 @ 5:00PM EST Filed Under: Borrowing, Budgets, Mortgages

Happy New Year, senior citizens! 2010 should be a good year for you, thanks to an increase in funding for what is known as the Section 202 program. For the first time in six years, Congress approved a hike in the Section 202 program, which takes effect with the new year. It is a $60 million increase in fiscal 2010.

The Section 202 program, reports the Associated Press, "provides grants and rental help through nonprofit sponsors of low-income senior housing." Under the Section 202 program, a person usually pays no more than about 30 percent of their income on rent, according to the AP.

Continue reading Increased "Section 202" funding good news for senior citizen housing

Virginia's State Employee Loan Program has a downside

Zac Bissonnette Dec 30th 2009 @ 1:00PM EST Filed Under: Borrowing, Debt, Personal Loans

In an op-ed piece (subscription required) in the Wall Street Journal, Virginia governor Tim Kaine explains a new loan program being offered to state employees: the Virginia State Employee Loan Program, "a unique partnership between the Virginia State Employee Assistance Fund and the Virginia Credit Union."

Continue reading Virginia's State Employee Loan Program has a downside

Chan Ho Park sues Chad Kreuter over loan gone awry

Zac Bissonnette Dec 29th 2009 @ 12:00PM EST Filed Under: Borrowing, Debt

Chan Ho Park, who pitched in relief for the Philadelphia Phillies last year, has filed a lawsuit against former Texas Rangers catcher Chad Kreuter over a personal loan gone bad.

Continue reading Chan Ho Park sues Chad Kreuter over loan gone awry

House greenlights creation of consumer credit watchdog agency

Martha C. White Dec 15th 2009 @ 8:00AM EST Filed Under: Banks, Borrowing, Credit Cards

It's not law yet, but it's come a long way. On Friday, Dec. 11, the House of Representatives passed the Wall Street Reform and Consumer Protection Act of 2009, which includes a provision for creating a new agency aimed at protecting ordinary Americans from predatory lending practices. The new Consumer Financial Protection Agency would regulate credit cards, payday lenders, and home, auto and student loans and their underwriters. The Senate will create its own version of this bill, and a final draft would probably be signed into law by next year.

The bill is not without its detractors. Not one Republican lawmaker voting on the bill elected to approve the Act, and the banking industry has been vocal in its disapproval of what it depicts as a power grab by the government that interferes with its business model.

Continue reading House greenlights creation of consumer credit watchdog agency

Mortgage payoff pitch is no panacea

Martha C. White Dec 14th 2009 @ 4:30PM EST Filed Under: Borrowing, Home, Mortgages

Someone recently sent WalletPop a press release detailing what claimed to be one of those "eliminate your debt" strategies.

This one hinges on something called a "mortgage checking account." It's similar to a mortgage elimination scheme that proliferated in Australia a few years back and hopped onto our shores under a different name.

In this 2007 article, the Boston Globe explored what was then being called a "line-of-credit" mortgage and concluded that the scheme was more about marketing than merit.

The plan pitched to us by a company called MoneyDesktop purports to let you pay off your mortgage via a home equity line of credit (HELOC). In theory, you take out a home equity line of credit, deposit your paychecks into that line of credit instead of a checking account, and write a check paying down your mortgage in the amount you've just deposited.

Continue reading Mortgage payoff pitch is no panacea

Dumb personal finance mistake #1: don't get a car loan

Zac Bissonnette Dec 14th 2009 @ 9:30AM EST Filed Under: Borrowing, Transportation, Video

It always amazes me how many people think borrowing money to buy a car can be part of a responsible, intelligent, long-term financial plan.

News flash: It can't.

But don't take my word for it. Watch the Dave Ramsey video below for a powerful explanation of just how stupid buying a car with borrowed money is.

Treasury Dept. 'SWAT teams' to move in on mortgage industry: War or a joke?

Charles Feldman Dec 1st 2009 @ 12:00PM EST Filed Under: Borrowing, Home, Real Estate, Mortgages, Refinancing

The theater darkens. The coming attractions are over. The movie studio logo (your choice) appears. The screen explodes into brilliant light. Music thunders and soars. Vans marked "SWAT" fill the large screen. The "SWAT team" jumps out and rushes into ... the bank, to pressure officials there to step up mortgage modifications. The title of the film appears: " Mortgage SWAT -- The Movie." The audience laughs. Yes, I said the audience laughs. Or should!

And just as a movie audience should laugh at such a silly idea for a film, people should laugh even harder since this is no movie script but real life (no, not real life television ... real, actual, life! (The type with no syndication rights!)

Continue reading Treasury Dept. 'SWAT teams' to move in on mortgage industry: War or a joke?

Senate bank bill could allow 'too big to fail' banks to grow even bigger

Bob Cesca Nov 30th 2009 @ 5:30PM EST Filed Under: Banks, Borrowing

The chain grocery store where my wife and I shop has a bank in it. There's the frozen food section, the bakery section, the pharmacy and ... the bank. It's not even a particularly large grocery store, but there it is. A bank. With a vault, a sit-down area and everything.

I'm not sure how common this is, but it certainly represents the trend here which appears to be rapidly nearing a ratio of more banks than people. Or at least, more banks than McDonalds, Subways, Starbucks, Walmarts and Targets -- combined. That's not an exaggeration. Within short walking distance of my very suburban neighborhood, there are four banks not including the one in the grocery store. Two of those banks are directly across the street from each other.

And, by the way, there are fewer community banks and credit unions here.

With that in mind, I had no idea that there were local laws regulating how many branches a bank can open in a particular states. Oh, and, according to Ryan Grim, Congress and the Treasury Department is trying really hard to undermine those laws.

Continue reading Senate bank bill could allow 'too big to fail' banks to grow even bigger

If you can't afford mortgage, don't borrow to send kid to college

Zac Bissonnette Nov 23rd 2009 @ 4:30PM EST Filed Under: Banks, Borrowing, Money College

When I can't think of anything else to write about, I sometimes like to pick up a copy of US News & World Report's America's Best Colleges, and spend about 30 seconds flipping through to find one piece of really, really, really horrible advice.

And so here it is, from an article by Kim Clark:

The federally backed parent PLUS loan can cover the student's entire cost of college (less any other financial aid). But PLUS loans can cost as much as 8.5 percent a year plus a fee of 4 percent of the loan amount, for a total annual percentage rate of as much as 9.4 percent. Shoppers can find discounts, however. Those who borrow directly from the federal government and make automatic electronic payments are charged just 7.65 percent in interest. (After fees, the APR totals 8.55 percent.) And the eligibility criteria are comparatively forgiving, even for parents who are a little behind on their mortgages.

Continue reading If you can't afford mortgage, don't borrow to send kid to college

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