Free Financial Advice by Brian Diez

2011-05-04T10:22:00.001-07:00

silver has corrected to $40. Buy more now. Here's why it came down: http://ping.fm/wUIoe

2011-04-28T07:27:00.001-07:00

Silver $49.07. Did you buy with me 2 days ago? If you did you're up almost 10% in 2 days. Got silver?

2011-04-26T14:29:00.001-07:00

Ron Paul for president: http://ping.fm/xBXEz

2011-04-26T07:40:00.001-07:00

Silver hit $50. Now its pulled back to $45.32. I'm a buyer here. Interesting read: http://is.gd/rrruwJ

2011-04-22T09:00:00.001-07:00

Silver $47.90. I own it. So should you. It's going MUCH higher. Buy American Eagles and take delivery. I buy from www.gainesvillecoins.com

2011-04-21T08:53:00.001-07:00

Silver $46.15. Got silver?

2011-04-20T07:28:00.001-07:00

Silver $44.95

2011-04-18T15:41:00.001-07:00

Silver $43.35. If you feel like its increasing by $1 almost everyday... it is. Got Silver?

2011-04-15T09:51:00.001-07:00

Silver $42.70. Inside scoop is that there are long delays in delivery. Potential cause for panic buying as silver goes ballistic.

2011-04-08T07:00:00.001-07:00

Silver $40.28. Its not too late to get in. Wait for a pull back and buy. Next stop is $50.

2011-04-05T14:22:00.001-07:00

silver $39.32

2011-04-04T07:13:00.001-07:00

silver hits $38.50

2011-03-28T07:10:00.001-07:00

Silver is pulling back. I'm a buyer < $36.50

2011-03-09T05:55:00.001-08:00

Silvers gone parabolic. The curious case for $936 an oz silver... http://ping.fm/ZT4UN

2011-03-07T07:47:00.001-08:00

Silver passes $36.20. Told you I bought last month at $27. Hope you're with me. The dollar is done for. Pensions and 401k's are doomed FACT

2011-03-02T14:33:00.001-08:00

How to start your own home based recession proof credit repair business with no money or experience: http://ping.fm/szy9U

2011-02-17T13:24:00.001-08:00

Silver's at $31.78. If you bought the pull back I mentioned last month, you're up 14%.

2011-01-21T05:35:00.001-08:00

Silver's price has dropped from $31 to $27.32. I'm a buyer on these kind of dips.

2011-01-15T05:59:00.001-08:00

My favorite place to buy silver: http://ping.fm/W2kvv

2010-12-13T19:34:00.001-08:00

Water, Meet Blood - JP Morgan Admits To, Reduces Massive Silver Short Position, Proves Millions Of Conspiracy Theorists Correct http://ping.fm/TMT8j

2010-12-08T09:03:00.001-08:00

2010-12-07T10:40:00.001-08:00

I'm speaking Dec 8th about flaws in the credit system. Its a free webinar. Come check it out http://ping.fm/gz1zz

2010-12-02T05:39:00.001-08:00

Learn the Constitution. Article I - Only CONGRESS can pass a law. So why is the DHS making laws the TSA is enforcing?

2010-11-25T07:25:00.001-08:00

Europe is organizing a bank run December 7th. Bring down the banks: http://ping.fm/53ep9

2010-11-24T08:11:00.001-08:00

Nationwide boycott of body scanners today. Let the airlines lose millions.

2010-11-24T04:47:00.001-08:00

Fed is openly trying to crush the dollar http://ping.fm/5R25k Buy gold/silver.

2010-11-23T07:34:00.001-08:00

Ireland's PM forced to dissolve government: http://ping.fm/sUuMN

2010-11-16T07:18:00.001-08:00

A wise man learns by the mistakes of others,
a fool by his own. - Latin Proverb

2010-11-11T08:53:00.001-08:00

2 predictions. Conflict in middle east within 6 months involving US or Israel. USD dead by 2012. Buy gold/silver.

2010-11-10T17:11:00.001-08:00

I just finished re-designing an artist's website.Take a look and tell me how you feel about it: http://officialtora.com

2010-11-08T06:02:00.001-08:00

"I find that the harder I work, the more luck I seem to have." Thomas Jefferson

2010-11-04T08:24:00.001-07:00

Today's words of wisdom... "If you cannot do great things, do small things in a great way." - Napoleon Hill

2010-11-03T11:33:00.001-07:00

The End of Liberty (Video) http://bit.ly/9qURrS

2010-11-03T09:49:00.001-07:00

All that is necessary for evil to triumph is for good men to do nothing. - Edmund Burke

2010-11-02T05:15:00.001-07:00

Today's words of wisdom... 'Never trade luck for skill.' -Author Unknown

2010-11-01T05:58:00.001-07:00

Today's words of wisdom...'If you see a bomb technician running, try to keep up with him.' - Infantry Journal

2010-10-29T08:46:00.001-07:00

There goes your 401K - Insider Selling Volume at Highest Level Ever Tracked: http://ping.fm/IPon0

2010-10-28T11:24:00.001-07:00

Just finished my free 10 step credit repair video course. Any comments? http://ping.fm/QZatM

FHA Short Pay Loan BIll

2008-05-02T09:48:00.000-07:00

MortgageNewsDaily.com - A key committee in the House of Representatives late Thursday passed legislation that would make up to $300 billion in federally insured mortgages available to borrowers facing foreclosure.

The bill, H.R. 5830, the Federal Housing Administration (FHA) Housing and Homeowner Retention Act was passed out of the House Financial Services Committee and on to the full house by a bipartisan vote of 46 to 21.

Under the principle provision in the bill, the FHA will guarantee a new loan to a troubled borrower if the existing lender will agree to accept a short payment (i.e. less than the outstanding balance of the loan) in full payment of the old loan. The new loan would be limited to no more than 90 percent of the property's value and must have terms that the borrower can reasonably be expected to pay.

When the borrower sells or refinances the home the borrower will pay from any profits either an exit fee equal to 3 percent of the original loan amount or a declining percentage of any net proceeds attributable to home appreciation (from 100 percent in year one to 50 percent in years four and beyond,) whichever is larger. The government, therefore, would only be at risk if the borrower defaults on the new loan in which case he would lose the house.

Read more here: http://www.mortgagenewsdaily.com/522008_FHA_Short_Pay_Loans.asp

Best,
Brian Diez

Tel: 888-849-9339
Fax: 516-209-4553

P.S. Don't forget to leave a comment.

P.P.S. Pass this info along to a friend.

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How are you going to spend yours?

2008-04-28T08:42:00.000-07:00

Here in the U.S. our tax rebate checks start to arrive this week.

It is hoped you'll go out and spend your check on something OTHER than paying down your debt. The idea is to stimulate our economy. Yeah, right.

Personally, I think unless you can find a way to make your rebate check earn more than
the interest on your debt, pay off your debt.

This is also a good a time to remind you that large refunds are a waste of money.

If you get over $1000 back each year and you'd like to have more money in your paycheck each time, adjust your withholding and claim more exemptions.

There's no point in having a big refund check to pay down the credit card debt you accumulated because you didn't have the money to pay cash since you let Uncle Sam EARN all that interest on YOUR money instead.

Get on over to the calculator at: http://www.irs.gov/individuals/article/0,,id=96196,00.html

or ask your payroll administrator at work to help.

It's your money. Go get it and make it work for you.

Best,
Brian Diez

Tel: 888-849-9339
Fax: 516-209-4553

P.S. If you're a homeowner who's made all your mortgage payments on time and has at least 10% equity in your home, then I GUARANTEE I can save you at least $100,000.00 in interest payments or I'll send you on a FREE Cruise for 2 to the Bahamas. Click here for details.

P.P.S. Don't forget to leave a comment.

P.P.P.S. Pass this info along to a friend.

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Save $100 Instantly

2008-04-08T12:49:00.000-07:00

Did you know most credit card lenders will drop their interest rates if you ask?

Try this today and you'll be saving money by tomorrow.

Call your lender and tell them you've received a pre-approved offer for 1.99% until October on balance transfers. Tell them you're happy with their service, but you'd like to take advantage of this savings. Is there anything they could do to match?

When you called their system brought up your account. They can see how long you've had your account and whether or not you've paid on time. Assuming you are a customer in good standing, an offer will pop up on their screen automatically. They just never mention it unless you ask.

I did this with one card and got my 9.99% rate dropped to 1.99% until October on my full balance just because I asked.

Try it out and let me know how much you saved.

Best,
Brian Diez

Tel: 888-849-9339
Fax: 516-209-4553

P.S. If you're a homeowner who's made all your mortgage payments on time and has at least 10% equity in your home, then I GUARANTEE I can save you at least $100,000.00 in interest payments or I'll send you on a FREE Cruise for 2 to the Bahamas. Click here for details.

P.P.S. Don't forget to leave a comment.

P.P.P.S. Pass this info along to a friend.

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ATM Scam Revealed

2008-03-21T08:28:00.000-07:00

Do you have TIVO or DVR? They let you record your favorite
shows so you don't have to miss them or watch the
commercials.

I love it. I'm always on the lookout for my next favorite
show.

I recently came across a show called The Real Hustle.
It's a reality show about 3 real life con artists. They
actually video tape themselves taking their victim's money.

It's really a cool show, but scary. One of the latest episodes
was downright horrifying though.

They show how they add a card reader to any ATM machine and
scan your magnetic strip and video tape your pin code.
You'd never even realize it was there.

Minutes later they create their own card and pull all your
cash out of the ATM. They then chase you down and show you
your money.

See for yourself:
http://www.youtube.com/watch?v=OOiCufYGH9I

You'll never look at an ATM the same.

Best,
Brian Diez

P.S. Definitely pass this info along. This scam is too
easy to pull off. Everyone needs to SEE this for
themselves to see how real and easy an ATM scam is to put
together.
http://www.youtube.com/watch?v=OOiCufYGH9I

Brought to you by www.CreditScoringSecretsExposed.com

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Free Teleseminar Reveals...

2008-03-17T07:40:00.000-07:00

"Free Telephone Seminar Reveals Everything You Ever Wanted
To Know About LENDERS And Your Credit Report"

Lenders. You can't live with them. You can't live without
them. I know one thing for sure. They really know how to
ruin your day.

I can't tell you how many times I've butted heads with a
lender. They've charged me late fees when I sent my check
a week before the due date. They've reported me late after
changing their address. I'm not alone, right? You've been
there too... listening to the hold music or fighting with
their automated answering service, "Please enter your
account number followed by the # sign..." grrrrrrrr!

Haven't you always wondered what goes on over there? I
keep picturing gray cubicles and endless boredom. I
imagine customer service reps purposely torturing customers
for their amusement like that David Spade commercial for
Capital One. The one where he's teaching the new guy how
to keep customers from using their points. You know,
"What's in YOUR wallet?"

Are these companies too big and slow for their own good?
Who makes the decision how to handle my call? How do they
handle written disputes? Who do I have to sweet talk to
get some help? How do I get a human on the phone? Does
anyone over there really care if I'm unhappy?

Wonder No More!

I would like to invite you to a very special 60 minute FREE
Tele-Seminar. I've gathered a group of former customer
service agents from home, credit card, and auto financers
to reveal their inner most secrets.

Discover the insider secrets LENDERS don't want you to know
about!

Just click here to reserve your slot now:
http://www.thecreditaudit.com/collection.htm

Hurry! Slots are limited!

If you are one of the first 50 people who respond, you'll
also receive a free copy of my report, Avoiding Credit And
Charge Card Fraud. Here's What you're going to learn
on this special call:

* How to get lateness and charge offs deleted from your
credit report
* When and why they sell to collection agencies
* Who to speak with to get straight answers to solve
your problem
* What happens when they receive your complaints
* How long they keep their records

And much much more!

PLUS, you'll get YOUR single most important answered by
our mystery guests.

Please rest assured. Even though I'm not charging
anything to be on this call, there is absolutely no
obligation to buy anything. In fact, you couldn't buy
anything if you wanted to. This teleseminar stands alone
as a value in and of itself.

This information will be revealed: Wednesday, March 19th at
2PM EST

Just click here to reserve your slot now.
http://www.thecreditaudit.com/collection.htm

Hurry! Slots are limited!

WARNING: This invitation is being sent out to over 2000 of
my subscribers. I only have 150 phone lines reserved.
Please DO NOT procrastinate. (If you are NOT one of the
first 150 to respond, you will be promptly notified.)

Best,
Brian Diez

Tel: 888-849-9339
Fax: 516-209-4553

P.S. FREE tele-seminar reveals everything you ever wanted
to know about LENDERS and your credit report. Line
availability is limited. Reserve your slot NOW!
http://www.thecreditaudit.com/collection.htm

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Getting Credit When You're a Senior

2008-03-03T07:01:00.000-08:00

Applying for credit used to mean asking your neighborhood banker for a loan. Now, with national credit cards and computerized applications, the day of personal evaluations may be over. Instead, computer evaluations look at, among other things, your income, payment history, credit card accounts, and any outstanding balances. Paying in cash and in full may be sound financial advice, but they won’t give you a payment history that helps you get credit.

A major indicator of your ability to repay a loan is your current income. Those who consider income must include types of income that are likely to be received by older consumers. This includes salaries from part-time employment, Social Security, pensions, and other retirement benefits.

You also may want to tell creditors about assets or other sources of income, such as your home, additional real estate, savings and checking accounts, money market funds, certificates of deposit, and stocks and bonds.

If you’re age 62 or over, you have certain other protections. You can’t be denied credit because credit-related insurance is not available based on your age. Credit insurance pays off the creditor if you should die or become disabled.
On the other hand, a creditor can consider your age to:

* favor applicants who are age 62 or older.
* determine other elements of creditworthiness. For example, a creditor could consider whether you’re close to retirement age and a lower income.

While a creditor cannot take your age directly into account, a creditor may consider age as it relates to certain elements of creditworthiness. If, for example, at the age of 70, you apply for a 30-year mortgage, a lender might be concerned that you may not live to repay the loan. However, if you apply for a shorter loan term, increase your down payment, or do both, you might satisfy the creditor’s concerns. (mymoney.gov)

Best,
Brian Diez

Tel: 888-849-9339
Fax: 516-209-4553

P.S. If you're a homeowner who's made all your mortgage payments on time and has at least 10% equity in your home, then I GUARANTEE I can save you at least $100,000.00 in interest payments or I'll send you on a FREE Cruise for 2 to the Bahamas. Click here for details.

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What You Need to Know About Credit And Divorce

2008-02-06T08:22:00.000-08:00

Susan and Jim recently divorced. Their divorce decree stated that Jim would pay the balances on their three joint credit card accounts. Months later, after Jim neglected to pay off these accounts, all three creditors contacted Susan for payment. She referred them to the divorce decree, insisting that she was not responsible for the accounts.

The creditors correctly stated that they were not parties to the decree and that Susan was still legally responsible for paying off the couple's joint accounts. Susan later found out that the late payments appeared on her credit report.

If you've recently been through or are considering divorce you may want to look closely at issues involving credit. Understanding the different kinds of credit accounts opened during a marriage may help illuminate the potential pros and cons of each.

There are two types of credit accounts: individual and joint. You can permit authorized persons to use the account with either. When you apply for credit - whether a charge card or a mortgage loan - you'll be asked to select one type.
Individual or Joint Account

Individual Account: Your income, assets, and credit history are considered by the creditor. Whether you are married or single, you alone are responsible for paying off the debt. The account will appear on your credit report, and may appear on the credit report of any "authorized" user. However, if you live in a community property state (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, or Wisconsin), you and your spouse may be responsible for debts incurred during the marriage, and the individual debts of one spouse may appear on the credit report of the other.

Advantages/Disadvantages: If you're not employed outside the home, work part-time, or have a low-paying job, it may be difficult to demonstrate a strong financial picture without your spouse's income. But if you open an account in your name and are responsible, no one can negatively affect your credit record.

Joint Account: Your income, financial assets, and credit history - and your spouse's - are considerations for a joint account. No matter who handles the household bills, you and your spouse are responsible for seeing that debts are paid. A creditor who reports the credit history of a joint account to credit bureaus must report it in both names (if the account was opened after June 1, 1977).

Advantages/Disadvantages: An application combining the financial resources of two people may present a stronger case to a creditor who is granting a loan or credit card. But because two people applied together for the credit, each is responsible for the debt. This is true even if a divorce decree assigns separate debt obligations to each spouse. Former spouses who run up bills and don't pay them can hurt their ex-partner's credit histories on jointly-held accounts.

Account "Users"

If you open an individual account, you may authorize another person to use it. If you name your spouse as the authorized user, a creditor who reports the credit history to a credit bureau must report it in your spouse's name as well as in your's (if the account was opened after June 1, 1977). A creditor also may report the credit history in the name of any other authorized user.

Advantages/Disadvantages: User accounts often are opened for convenience. They benefit people who might not qualify for credit on their own, such as students or homemakers. While these people may use the account, you - not they - are contractually liable for paying the debt.

If You Divorce

If you're considering divorce or separation, pay special attention to the status of your credit accounts. If you maintain joint accounts during this time, it's important to make regular payments so your credit record won't suffer. As long as there's an outstanding balance on a joint account, you and your spouse are responsible for it.

If you divorce, you may want to close joint accounts or accounts in which your former spouse was an authorized user. Or ask the creditor to convert these accounts to individual accounts.

By law, a creditor cannot close a joint account because of a change in marital status, but can do so at the request of either spouse. A creditor, however, does not have to change joint accounts to individual accounts. The creditor can require you to reapply for credit on an individual basis and then, based on your new application, extend or deny you credit. In the case of a mortgage or home equity loan, a lender is likely to require refinancing to remove a spouse from the obligation.

Best,
Brian Diez

Tel: 888-849-9339
Fax: 516-209-4553

P.S. If you're a homeowner who's made all your mortgage payments on time and has at least 10% equity in your home, then I GUARANTEE I can save you at least $100,000.00 in interest payments or I'll send you on a FREE Cruise for 2 to the Bahamas. Click here for details.

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CoSigning a Loan

2008-01-29T12:07:00.000-08:00

What would you do if a friend or relative asked you to cosign a loan? Before you answer, make sure you understand what cosigning involves.

Under federal law, creditors are required to give you a notice that explains your obligations. The cosigner’s notice states:

You are being asked to guarantee this debt. Think carefully before you do. If the borrower does not pay the debt, you will have to. Be sure you can afford to pay if you have to, and that you want to accept this responsibility.

You may have to pay up to the full amount of the debt if the borrower does not pay. You may also have to pay late fees or collection costs, which increase this amount.

The creditor can collect this debt from you without first trying to collect from the borrower.* The creditor can use the same collection methods against you that can be used against the borrower, such as suing you, garnishing your wages, etc. If this debt is ever in default, that fact may become a part of your credit record.

This notice is not the contract that makes you liable for the debt.

* Depending on your state, this may not apply. If state law forbids a creditor from collecting from a cosigner without first trying to collect from the primary debtor, this sentence may be crossed out or omitted altogether.
Cosigners Often Pay

Studies of certain types of lenders show that for cosigned loans that go into default, as many as three out of four cosigners are asked to repay the loan. When you're asked to cosign, you're being asked to take a risk that a professional lender won't take. If the borrower met the criteria, the lender wouldn't require a cosigner.

In most states, if you cosign and your friend or relative misses a payment, the lender can immediately collect from you without first pursuing the borrower. In addition, the amount you owe may be increased — by late charges or by attorneys’ fees — if the lender decides to sue to collect. If the lender wins the case, your wages and property may be taken.

If You Do Cosign

Despite the risks, there may be times when you want to cosign. Your child may need a first loan, or a close friend may need help. Before you cosign, consider this information:

* Be sure you can afford to pay the loan. If you're asked to pay and can't, you could be sued or your credit rating could be damaged.
* Even if you're not asked to repay the debt, your liability for the loan may keep you from getting other credit because creditors will consider the cosigned loan as one of your obligations.
* Before you pledge property to secure the loan, such as your car or furniture, make sure you understand the consequences. If the borrower defaults, you could lose these items.
* Ask the lender to calculate the amount of money you might owe. The lender isn't required to do this, but may if asked. You also may be able to negotiate the specific terms of your obligation. For example, you may want to limit your liability to the principal on the loan, and not include late charges, court costs, or attorneys' fees. In this case, ask the lender to include a statement in the contract similar to: "The cosigner will be responsible only for the principal balance on this loan at the time of default."
* Ask the lender to agree, in writing, to notify you if the borrower misses a payment. That will give you time to deal with the problem or make back payments without having to repay the entire amount immediately.
* Make sure you get copies of all important papers, such as the loan contract, the Truth-in-Lending Disclosure Statement, and warranties — if you're cosigning for a purchase. You may need these documents if there's a dispute between the borrower and the seller. The lender is not required to give you these papers; you may have to get copies from the borrower.
* Check your state law for additional cosigner rights.

Best,
Brian Diez

Tel: 888-849-9339
Fax: 516-209-4553

P.S. If you're a homeowner who's made all your mortgage payments on time and has at least 10% equity in your home, then I GUARANTEE I can save you at least $100,000.00 in interest payments or I'll send you on a FREE Cruise for 2 to the Bahamas. Click here for details.

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Save Money at the Gas Pump

2008-01-17T07:39:00.000-08:00

Only buy or fill up your car or truck in the early morning when the ground temperature is still cold.

Remember that all service stations have their storage tanks buried below ground. The colder the ground the more dense the gasoline, when it gets warmer gasoline expands, so buying in the afternoon or in the evening... your gallon is not exactly a gallon.

In the petroleum business, the specific gravity and the temperature of the gasoline, diesel and jet fuel, ethanol and other petroleum products plays an important role.

A one degree rise in temperature is a big deal for this business, but the service stations do not have temperature compensation at the pumps.

When you're filling up do not squeeze the trigger of the nozzle to a fast mode. If you look you will see that the trigger has three (3) stages: low, middle, and high. In slow mode you should be pumping on low speed, thereby minimizing the vapors that are created while you are pumping.

All hoses at the pump have a vapor return. If you are pumping on the fast rate, some of the liquid that goes to your tank becomes vapor. Those vapors are being sucked up and back into the underground storage tank so you're getting less worth for your money.

One of the most important tips is to fill up when your gas tank is HALF FULL or HALF EMPTY. The reason for this is, the more gas you have in your tank the less air occupying its empty space.

Gasoline evaporates faster than you can imagine. Gasoline storage tanks have an internal floating roof. This roof serves as zero clearance between the gas and the atmosphere, so it minimizes the evaporation. Unlike service stations, every truck is temperature compensated so that every gallon is actually the exact amount.

Another reminder, if there is a gasoline truck pumping into the storage tanks when you stop to buy gas, DO NOT fill up--most likely the gasoline is being stirred up as the gas is being delivered, and you might pick up some of the dirt that normally settles on the bottom.

Hope this will help you get the most value for your money. SHARE THESE TIPS WITH OTHERS!

Best,
Brian Diez

Tel: 888-849-9339
Fax: 516-209-4553

P.S. If you're a homeowner who's made all your mortgage payments on time and has at least 10% equity in your home, then I GUARANTEE I can save you at least $100,000.00 in interest payments or I'll send you on a FREE Cruise for 2 to the Bahamas. Click here for details.

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How to Get Your Free Credit Report

2008-01-11T12:44:00.000-08:00

The credit bureaus and lenders have a great gig. The more errors you have on your credit report, the more lenders can charge you. As long as your rates are high you'll keep refinancing and pulling your credit.

It's a beautiful relationship...for them. Not so much for you.

Regularly checking your credit report will help you pick up errors before you need your credit.

The Fair Credit Reporting Act (FCRA) requires each of the nationwide consumer reporting companies – Equifax, Experian, and TransUnion – to provide you with a free copy of your credit report, at your request, once every 12 months. The FCRA promotes the accuracy and privacy of information in the files of the nation’s consumer reporting companies. The Federal Trade Commission (FTC), the nation’s consumer protection agency, enforces the FCRA with respect to consumer reporting companies.

Here are the details about your rights under the FCRA and the Fair and Accurate Credit Transactions (FACT) Act, which established the free annual credit report program.

Here's How to Get Your Free Credit Report

The three nationwide consumer reporting companies have set up a central website, a toll-free telephone number, and a mailing address through which you can order your free annual report.

To order, visit annualcreditreport.com, call 1-877-322-8228, or complete the Annual Credit Report Request Form and mail it to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281. The form is on the back of this brochure; or you can print it from ftc.gov.

Do not contact the three nationwide consumer reporting companies individually. They are providing free annual credit reports only through annualcreditreport.com, 1-877-322-8228, and Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281.

You may order your reports from each of the three nationwide consumer reporting companies at the same time, or you can order your report from each of the companies one at a time. The law allows you to order one free copy of your report from each of the nationwide consumer reporting companies every 12 months.

A Warning About “Imposter” Websites

Only one website is authorized to fill orders for the free annual credit report you are entitled to under law – annualcreditreport.com. Other websites that claim to offer “free credit reports,” “free credit scores,” or “free credit monitoring” are not part of the legally mandated free annual credit report program. In some cases, the “free” product comes with strings attached.

For example, some sites sign you up for a supposedly “free” service that converts to one you have to pay for after a trial period. If you don’t cancel during the trial period, you may be unwittingly agreeing to let the company start charging fees to your credit card.

Some “imposter” sites use terms like “free report” in their names; others have URLs that purposely misspell annualcreditreport.com in the hope that you will mistype the name of the official site. Some of these “imposter” sites direct you to other sites that try to sell you something or collect your personal information.

annualcreditreport.com and the nationwide consumer reporting companies will not send you an email asking for your personal information. If you get an email, see a pop-up ad, or get a phone call from someone claiming to be from annualcreditreport.com or any of the three nationwide consumer reporting companies, do not reply or click on any link in the message. It’s probably a scam. Forward any such email to the FTC at spam@uce.gov.

Here's Why You Want Your Credit Report

Your credit report has information that affects whether you can get a loan – and how much you will have to pay to borrow money. You want a copy of your credit report to:

* make sure the information is accurate, complete, and up-to-date before you apply for a loan for a major purchase like a house or car, buy insurance, or apply for a job.
* help guard against identity theft. That’s when someone uses your personal information – like your name, your Social Security number, or your credit card number – to commit fraud. Identity thieves may use your information to open a new credit card account in your name. Then, when they don’t pay the bills, the delinquent account is reported on your credit report. Inaccurate information like that could affect your ability to get credit, insurance, or even a job.

Best,
Brian Diez

Tel: 888-849-9339
Fax: 516-209-4553

P.S. If you're a homeowner who's made all your mortgage payments on time and has at least 10% equity in your home, then I GUARANTEE I can save you at least $100,000.00 in interest payments or I'll send you on a FREE Cruise for 2 to the Bahamas. Click here for details.

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Understanding Annual Percentage Rates or APR's as Applied To Credit Cards

2008-01-05T11:12:00.000-08:00

APR or Annual Percentage Rate. You see them all the time on all your credit card statements.

On credit cards, the APR is the way of stating the interest rate you will pay if you carry over a balance, take out a cash advance, or transfer a balance from another card. The APR states the interest rate as a yearly rate.

Multiple APRs - A single credit card may have several APRs:

Here's why lenders love fine print. You can have one APR for purchases, another for cash advances, and yet another for balance transfers. The APRs for cash advances and balance transfers often are higher than the APR for purchases (for example, 14% for purchases, 18% for cash advances, and 19% for balance transfers).

Tiered APRs - Different rates are applied to different levels of the outstanding balance (for example, 16% on balances of $1–$500 and 17% on balances above $500).

A penalty APR - The APR may increase if you're late on your payments. i.e. Your card agreement may say, “If your payment arrives more than ten days late two times within a six-month period, the penalty rate will apply.”

An introductory APR - A different rate will apply after the introductory rate expires. This is a favorite marketing ploy lenders use to get you to transfer balances over from other cards.

A delayed APR - A different rate will apply in the future. For example, a card may advertise that there is “no interest until next March.” Look for the APR that will be in effect after March.

If you carry over a part of your balance from month to month, even a small difference in the APR can make a big difference in how much you will pay over a year.

Fixed vs. variable APR - Some credit cards are “fixed rate”--the APR doesn’t change, or at least doesn’t change often. Even the APR on a “fixed rate” credit card can change over time. However, the credit card company must tell you before increasing the fixed APR.

Other credit cards are “variable rate”--the APR changes from time to time. The rate is usually tied to another interest rate, such as the prime rate or the Treasury bill rate. If the other rate changes, the rate on your card may change, too. Look for information on the credit card application and in the credit card agreement to see how often your card’s APR may change (the agreement is like a contract--it lists the terms and conditions for using your credit card).

Best,
Brian Diez

Tel: 888-849-9339
Fax: 516-209-4553

P.S. If you're a homeowner who's made all your mortgage payments on time and has at least 10% equity in your home, then I GUARANTEE I can save you at least $100,000.00 in interest payments or I'll send you on a FREE Cruise for 2 to the Bahamas. Click here for details.

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Good News For Motivated Sellers

2007-12-22T09:28:00.000-08:00

The Mortgage Forgiveness Act of 2007 was signed into law yesterday and is now official effectively getting rid of the question "will I be taxed on the Short Sale".

Short Sale - When a lender agrees to settle for less than the full mortgage balance.

Prior to this action, forgiven mortgage debt due to foreclosure, short sale, or deed in lieu of foreclosure, was potentially taxable income to the borrower. This was the subject of much media attention and led to many questions and concerns from Sellers wondering whether or not they were going to get “hit with taxes” on the Short Sale.

The new law, however, temporarily waives these taxes for debts forgiven (as high as 35%) from the beginning of 2007 to the end of 2009.

This will effectively put an end to the question from Sellers . . . will I be taxed on the Short Sale discount. The definitive answer (at least until the end of 2009) is NO!

How To Save Hundreds On Your Mortgage Almost Overnight!

2007-07-11T11:22:00.000-07:00

A 20 point increase in your credit score can save you over $100,000.00 on a 30 year mortgage. Most lenders would never tell you that since credit repair can take 30-90 days to reflect on your credit report.

Lenders want to close your loan NOW, at the higher rate and payment. They make more on your monthly payment and get their closing costs right away.

The credit reporting agencies would have you believe that once your credit is damaged, only the passing of time can fix it. That's just not true.

A little known secret that the credit reporting agencies hide is that the creditors must be able to prove the negative things they report on your credit. If they cannot, then it must be removed. It's the law!

Taking steps to clean up your credit BEFORE applying to refinance is always a smart move. The problem is, who can you trust? Credit repair horror stories run rampant on the internet and in the news.

Seeing the trend of homeowners with less than perfect credit, but stuck in Adjustable Rate Mortgages, most responsible Loan Officers are teaming up with reputable credit repair companies.

If you trust your mortgage professional, let them do the leg work for you.

For more FREE information on what YOU can do to improve your credit, check out www.CreditScoringSecretsExposed.info.

Learn How To Quickly Build At Least $40,000 Worth Of Home Equity And Pay Your Mortgage Off In 10 Years Or Less!

2007-05-21T13:29:00.000-07:00

This was so exciting I had to share it with you all.

Did you know it's possible to build a minimum of $40,000 in home equity, and pay your mortgage off in 10 years or less without making biweekly mortgage payments?

I've hooked up with Craig Romero, creator of Mortgage Cycling. Craig spent 6 years as a senior mortgage analyst for a major lending firm. After 4 years of research, he developed a simple mortgage reduction program that will quickly build your home equity and pay your mortgage off faster than any other mortgage reduction strategy available without changing your current mortgage and without the use of a biweekly mortgage plan.

To learn more
go to:
Click Here!

Homeowners Feel The Squeeze as Subprime Lenders Tighten Their Belts

2007-03-19T12:38:00.000-07:00

As many as 31 sub-prime lenders have ceased lending operations since December 2006. Many of the remaining sub-prime lenders are taking defensive measures to make sure they're not next. As a result, many new homeowners have limited options available to them to get our of their adjustable rate mortgages..

Sub-prime lenders specialize in lending to borrowers with less than perfect credit. A majority of the home loans currently in default were financed by sub-prime lenders. When a loan goes into default, these lenders are forced to buy them back from the investors to whom they were sold. If too many loans go into default, then the investors will stop buying their loans.

In order to stop, or at least slow down the rate of future loans defaulting, many sub-prime lenders have changed their lending guidelines. By raising credit score requirements and being tougher on appraised values, they intend to prevent the riskier loans from getting through their underwriting process.

It is estimated that there are as much as $2 trillion of U.S. mortgage debt, or about a quarter of all mortgage loans outstanding, are coming up for interest-rate resets in 2007 (Moody's Economy.com), many of which are new homeowners.

The problem new homeowners face is that many of them had purchased their homes with 100% financing and adjustable rate mortgages expecting their homes to continuosly appreciate. Their intentions were to eventually refinance using their new found equity once they had proven themselves with timely payments. New lending guidelines are now preventing them from qualifying for a new fixed interest rate loan.

The best way to get around this little hurdle is to repair your credit BEFORE you appy for a mortgage.

Not only will this help you qualify for the loan you need, but you'll save money too. I recently partnered with Score More Credit Repair Services, www.GuaranteedCreditBoost.com, just for thais purpose.

Score More offers a 6 month money back guarantee that your credit score will jump 50 points! A 50 point jump can save you as much as $87,190.00 over the course of a 30 year mortgage (based on averages on myfico.com).

Brokers Versus Bankers: What's the difference?

2007-02-27T16:08:00.000-08:00

The direct answer is bankers can fund a loan in their name with their own warehouse line, while a broker acts as a consultant and directs borrowers to the appropriate lender. A warehouse line is kind of like a line of credit a bank can borrow against.

The advantage of working with a bank is the banker determines how fast to close the loan, since they are the ones underwriting it. They are also privy to even lower rates than a mortgage broker. While on the surface that seems great, they NEVER (from my own experience) pass that savings on to their customers. It simply means a higher profit margin per loan for them. Still, in theory, it could be an advantage.

There are many disadvantages to working with a banker. In order to understand them I’ll have to elaborate a bit on how the mortgage industry works.

When a loan closes it is sold in the secondary market to an investor. The investors service the loan. In plain English, that means you send them the mortgage payment.

When a small mortgage company gets a warehouse line to bank their own deals, they almost never service them themselves. To avoid servicing, they form relationships with other wholesale lenders who are set up to resell on the secondary market. Each loan that closes must meet their investor’s guidelines for credit, income, assets, etc.,. Every investor is different and wants different loans. As a result, when you walk into a bank, they’ll try to sell you their “bank” program, even if their rate is much higher than a competitor’s. They have to in order to capitalize on their banking arrangement.

Banks that do service their own loans (i.e. Chase, Bear Sterns, Countrywide, Wells Fargo, WAMU, etc) usually have more programs, but again, their investors want what they want. If you don’t fit into their mold, you get a big DECLINED stamp on your file. They’re not about to refer you elsewhere or broker your loan.

A mortgage broker has no alliances or biases. Brokers typically get 25 –50 bps off retail price as incentive to push loans towards a lender. A broker’s job is to look at a loan and figure out the best way to get it approved, at the best rate, and lowest overall cost.

For example, often times a customer will call me with a purchase wanting both husband and wife on the contract and loan. After reviewing the information it’s not uncommon for me to remove one or the other from the contract and loan just to get a half percentage point lower on the rate.

It’s also a broker’s job to know each bank’s niche as well as their specials every month. Again, it’s not uncommon for me to price up a loan with Chase, WAMU, Citi, and Countrywide (for example) and have as much as a 1.5% rate disparity. The next month that same loan might be lower somewhere else entirely, so we move it at no cost to the borrower.

For you to do the same would cost you an application fee of $350 at each bank, have your credit pulled each time, then repeat every week or so.

When I speak of niches I mean that some banks specialize in different types of loans. It’s my job to know who is good at getting people out of foreclosure, bankruptcy, who doesn’t need to see income, or who’s best at purchases, just to name a few.

Many banks can broker loans as well (unless they service them). They just don’t make as much money on brokered loans, so they are always trying to push everyone into their bank programs (my own experience).

Some consultants, like myself, act more like financial advisors. We make it our responsibility to gather all the facts about your present situation as well as your future goals, and then determine which coarse of action is best for you.

The difference is like buying stock in your IRA plan from Etrade™ versus going to see an investment banker at Goldman Sachs. You may pay a bit more, but you’re paying for the advice, not the product.

Mortgage "Suitablility" for All?

2007-01-30T11:48:00.000-08:00

Rep. Barney Frank is the new chairman of the House Financial Services Committee - the primary originator of banking and mortgage-related federal legislation. He is proposing a new nationwide law that would require a loan officer to check to make sure a borrower is capable of making his/her payments before getting them a loan (Duh!). It is a law designed to protect consumers from deceptive, unfair and predatory mortgage practices.

According to a white paper issued by the nonprofit Northeast-Midwest Institute, a new national standard might require loan officers to determine an applicant's suitability for a particular loan program based on:

• Employment status, income level, assets and likelihood that income or employment could change.

• Other recurring expenses and the impact they could have on the borrower's capacity to repay.

• The potential for higher future monthly payments based on the structure of the loan program itself.

Representatives of the Mortgage Bankers Assoc and NAMB (National Association of Mortgage Brokers) oppose the new law, believing it may open the door to discrimination law suits or may be too vague and subjective to do any good.

Stay tuned folks!

Has Anyone Ever Heard of Ethics?

2007-01-23T14:27:00.000-08:00

Q: I read about you in the Wall Street Journal. Great piece! I would have to say, though, that, in a small way, you are contributing to the problem with your use of the word "client," which implies a fiduciary duty. In fact, mortgage originators do not have a duty to get the borrower the "best deal." Responsible originators should use the term "customer" or "borrower."

Keep up the good work on the blog!

Christopher Cruise
Senior National Mortgage Trainer

Charter Member, Board Member: www.NARLO.com

A: First, let me apologize for not posting in over a week. Google's web robot flagged my site for possible "spam" blogging. They prevented me from posting until today. Hopefully, it won't happen again. Now to address Chris:

Chris,

Thanks so much for your kind words of encouragement.

I would argue that while a mortgage professional may not have a legal fiduciary duty to get the borrower the best deal, he does have a moral and ethical one. I myself consider my role as a consultant. I advise my clients about their debt in the same way a financial consultant advises them of the best way to protect and grow their assets.

In reality, isn't someone's home just another investment? For most, it's their largest and should be treated as such. Why doesn't that client benefit from the same protection as he/she would if we were discussing his 401K? A customer simply buys goods or services. A client is one that depends on the protection of another. Technically, you are correct, but I think that's part of the problem.

*****************************************

Have you ever wondered how hard it is to get a job as a mortgage broker or banker? Take a look in your local paper. You'll find "Will Train" and "No Experience Necessary" everywhere. Young men and women looking to make alot of money very quickly jump on the phones reading a simple script like, "Hello Mr. Smith, this is James from "Sleazy" Mortgage. We're working with homeowners in your area saving them as much as $1000 a month with rates starting as low as 1%. Would you be interested in a free quote?". They have a book of rebuttals right next to them so that they can counter every objection you can concieve. Make enough phone calls and they're bound to find a victim who isn't educated about their 1% program. This is standard operating procedure for a significant percentage of mortgage shops.

In NY, for instance, only one person needs to have a mortgage broker or banker license. Everyone else works under that license. In fairness, let me tell you that I myself am not licensed. I work for a gentleman who is licensed. He personally oversees all the loans to make sure they're compliant. He allows me to "lead the troops". We are of like minds about our business model.

My boss is the "exception to the rule" for the most part. He'd rather close less loans, but close them right. He is a man of integrity, which is why I work here. It's my job to prove that the right way is the more profitable way. A happy, informed, trusting borrower is a lifetime CLIENT who referrs us everyone he or she knows. There's no reason everyone shouldn't win.

In my office there are 4 managers. 3 of us have a financial services background. The fourth was personally trained by me. Everyone lives by my code of ethics or they're out on their @ss.

I'd like to drive Chris' point home. To all of you I'd say to keep in mind that a mortgage banker or broker is NOT obligated to find you the best program or rate. Their job is to SELL you. They'll sell you whatever makes THEM the most money. This information should be very useful to you when shopping for a mortgage professional. You need to know who you're talking too on the other end of the phone.

They Know Not What They Do.

2007-01-07T10:40:00.000-08:00

It occurred to me last night after reading some of the threads under "Dirty Tricks" as I read some mortgage people defend their beloved Option Arm (another pretty name for the Negative Amortization loan). I had a revelation. I realized they were spewing the same rhetoric at me they were taught to spew in order to sell the program in the first place. They've repeated the pitch so often that they believe their own B.S.. Let me explain to you all why I feel it's such a bad program. Maybe if you see it from my perspective you'll have a change of heart.

Our forefathers came to this country for the chance to live free. They risked their lives to carve out their place in the world. It's the American dream to own a home, prosper in business through free trade, raise a family, and have it all to pass on to your children. In our culture, for example, to purchase a home and eventually pay off the mortgage so that your children, grand children, and great grand children have a roof over their heads is one of life's major priorities. A home is part of the legacy you leave behind.

So now imagine a man and woman trying to start a family. They work 2 jobs each, first to pay their way through school, then for a downpayment to buy their first home. They struggle and sacrifice for several years until finally they have enough to put down maybe 5 or 10% on their dream home. Their game plan is to take a 30 year fixed mortgage so that by the time they want to retire their home will be paid off so they can live out the rest of their years in peace knowing that they've provided for their kids and grand kids. After all, a home is usually the largest single investment most of us will ever make.

Instead, some mortgage person whispers in their ear and convinces them that an Option Arm is a much better program for them. It gives them 4 different payment options every month. A minimum payment, interst only payment, 15 year, and 30 year payment. He tells them that if they make the minimum payment they'll lose a tiny bit of equity but with houses appreciating so fast, they'll never notice. Besides, their money could be better invested else where as long as the return is greater than the interest their losing on the house. "You know best.", they say, "You're the professional and we trust you.". So they put 10% down on their $400,000.00 house and take an Option Arm with a Line of Credit 2nd.

They move into the house and are hit with all sorts of expenses they weren't expecting. They have to buy furniture, the house needs repairs, they have electric, oil or gas, water, landscaping, telephone, cable, internet, and on and on. They have to use credit cards to keep up. Before you know it a year has gone by when they notice their balances on their mortgage statements. Their first mortgage, the option arm which started at $320,000.00, now shows a balance of $340,000.00. The second (line of credit) still show s the original balance of $40,000.00. They expected this since they understood the line of credit was an interest only payment. They had planned to make extra payments to buy it down, but they never could get caught up.

Now the real estate market is adjusting and prices are coming down. They owe more than they paid for the house and the house is now valued at $390,000.00. Their credit card payments are more than they can handle now with the first mortgage payment increasing after the first year. They call up their mortgage consultant in a panic. "I'm sorry.", he says, "I told you you had to make extra payments throughout the year to offset the negative amortization". He hangs up and continues pitching his next unsuspecting victim about the benefits of the Option Arm.

Some mortgage brokers argue that a borrower must have the discipline to make extra payments and reinvest their money to benefit from the mighty Option Arm program. If that's the case, why not just be disciplined enough to take a 30 year fixed? How can anyone argue that a floating interest rate is better than a fixed one? There is no absolute certainty that your investments will earn you enough to make the program feasible. What is certain is you will lose equity every month regardless of how your investments are doing.

Again, I'm attacking the mortgage "professionals" who stick their clients into these programs regardless of what their clients best interest might be, just to make more money. In your heart you know that you wouldn't put your own mother in an Option Arm, but you'll come on my blog and defend your position. How do you sleep at night?

How Much Should You Expect to Pay For Closing Costs?

2007-01-03T08:14:00.000-08:00

Q: How many points between service release fees and points do you charge and what is fair? Can I get a loan for 1/3 of a point or less. Its not like they are doing anything. I have to supply the documents you just run it through a computer. I think they all charge too much anyway. - Jim

A: Now we're talking. Here's the meat and potatos. This is going to be a long post. First, let me say not everyone will agree with my answer. However, I never claimed to be perfect, just honest and fair. I don't care if everyone likes me or my answers. Just don't question my integrity. I won't tell you what you want to hear. I tell it like it is.

In my opinion, there are 4 professionals who you should expect to pay top dollar. Your attorney, accountant, financial advisor, and mortgage consultant. Let me explain why.

You don't pay your financial advisor so much for his outstanding recommendations, but for his courage to call you when the proverbial sh!t hits the fan. You pay him to get you out of that dream stock you have a million shares of that's plummeting to 89 cents. That's a tough call to make my friends. I've been there.

You pay your attorney good money to watch your @ssets and keep you out of trouble. You pay him top dollar now, so when your neighbor's kid breaks his leg on your sidewalk, your assets are safe from lawsuits. You pay him so that when you pass on your family is taken care of instead of the government taking everything. Sure you could hire someone cheap to do that stuff for you, but if it's done wrong because you were too cheap to fork over the cash, you'll have only yourself to blame. That's an expensive mistake make. It woud be cheaper to do it right the first time.

You pay your accountant through the nose to keep from being audited, or worse yet, jail! I personally don't make a business decision without discussing it with each of my advisors. I pay them top dollar, but I make them work for it!

You pay your trusted mortgage broker to advise you of the best course of action for your given situation. You pay him not to take advantage of you and stick you in a program that suits his interests instead of yours. You pay him (or her) to recommend a program or course of action that can save you HUNDREDS OF THOUSANDS OF DOLLARS!

Your comments scare me my friend. Nothing personal, but you are a future mortgage scam victim. It's that mentality of something for nothing that scammers prey on. Right now, there's a hundred mortgage brokers/bankers out there looking for someone just like you. They'll wisper 3.2% "fixed" for 10 years in your ear. You don't want to pay closing costs? No problem!, they'll purr. I don't care if you have 800 credit and 10 million in liquid assets. Anybody can be scammed.

Here is an email from Conrad I got yesterday. I've edited out the names of the mortgage companies involved because my attorney said I could get sued. He's worth every penny.

Hi Brian,

I got your name off of the internet. I live in Los Angeles, California, and I believe I am the victim of a "bait and switch" tactic by a mortgage broker.

I am a professional guy with assets, perfect credit and a high (815) fico score--basically, not to boast but a lender's dream applicant.

I was buying a NON-OWNER occupied 4-plex apartment in California and I was referred to a mortgage broker by a loan officer (George) at ***** Bank who had done many loans for me in the past--all of which went fairly smoothly. Because they were not doing small apartment loans, George referred me to ***Mortgage (a broker) where his sister worked, claiming they could help me with my financing. I filled out an application and started the process them. Although George doesn't work for ***Mortgage, throughout the process he was the point man and handled most of the details.

Particulars about the financing:
Purchase price: 315,00
Down Payment: 10% or 31,500
1st TD: 80% or 252,000 (Type of loan--flex option ARM with one year pre-pay)
2nd TD or HELOC: 10% or 31,500.

The property I was buying was part of a package sale of multiple buildings, and besides my purchase, my friend was also buying two buildings from the same seller, and as a condition of sale, the seller insisted that all the transactions close at the same time. He was doing a 1031 exchange so it was important that everybody would be able to close on the specified date.
The escrow period was to be 4 weeks, which is a fairly short amount of time, but from the get-go ***** Mortgage had all of the important documents in hand, namely the appraisal, the title report, all my financials, the escrow instructions, etc.

Verbally and by email George gave me some introductory rates which seemed ok:
Start rate on the 1st TD: 1.25% (ARM TIED TO THE 12 MONTH MTA) ; NO POINTS; MARGIN: 3.25; ONE YEAR PRE-PAYMENT PENALTY.
Second TD (Heloc): Prime + 2%

I NEVER GOT ANYTHING IN WRITING FROM EITHER THE BROKER, **** MORTGAGE OR FROM GEORGE. I NEVER GOT A "GOOD FAITH ESTIMATE" FROM **** MORTG OR GEORGE. Everything was basically verbal communication, and because of my past dealings with George I trusted him and I had no reason to believe I would be "mis-treated." Three weeks passed into the process and after being assured through various phone conversations that everything was going fine, and that they (**** Mortg and George) had been shopping for rates and terms) I was told that the LENDER (THE UNDERWRITER) was demanding 20% down payment instead of 10% as originally promised (verbally).
I was extremely angry, but I didn't have much choice as it was getting close to my closing date. So, reluctantly I agreed. IT GOT WORSE....Three days before closing I got a call from George with the agent from **** Mortgage on the phone telling me that the terms had changed and I was not going to like what they were about to tell me. THE LENDER (not****Mortgage) was now going to charge me 2.25 points instead of 0 points) and that the margin was going to be 4.00 instead of 3.25. Needless to say, I hit the roof and before I told them all to go F--- themselves I realized that I was stuck. I had nowhere to go as my closing date was a couple of days away, and other people (my co-buyer and the seller) were depending on me to close. When I asked George and the agent at ***** Mtge about the 11th hour changes in terms ('bait and switch") they claimed it was the lender's (the bank) requirement and not theirs (**** Mtge). So, I had to bite the bullet and pay the many thousands in extra closing costs and be stuck with an inferior loan.

After my escrow closed I found out who the actual lender was and I made several calls to find out about rates and terms for the scenario above. Surely enough several of the lenders loan officers told me that the rates and terms I was quoted originally were and are available. I called another lender, and they also confirmed what my lender told me.

***** Mortgage never gave me a "Good Faith Estimate."
***** Mortgage never gave me anything saying my loan was approved.

The bait and switch--the change in terms I believe were NOT the doing of the lender but were at the discretion of the broker, ***** Mortgage to obtain a larger yield spread premium. When I questioned both George and ***** about this they of course said that the lender was the one responsible for the change in terms.

If you are wondering why I didn't apply to multiple lenders...the answer is that I trusted George, and my past dealings with him had always been pleasant, and I had no reason to believe this transaction would be any different.

*******************************************
Considering what Conrad just went through, how much would you have paid me to get it done right the first time?

Are 2 Mortgages Better Than One?

2007-01-01T12:26:00.000-08:00

Q: My son wants to buy a home in UT. He will sell his present home. The loan broker has him " pre approved " but to qualify for the amount he needs the broker wants him to have both a first and second mortgage on the new home. My understanding is that he doesn't absolutely need two mortgages , but it would be in his best interests.

It doesn't seem right to start off with two mortgages. Could you please give us your comments ?

Thank you, John

A: Try and put yourself in an investors position to understand the situation. If you were loaning someone 100% of the money they needed to buy a house, your risk as the investor would be very high that your borrower will default. As a result, you'd want a higher rate of return as compenstation for your risk. Ironically enough, that would increase the likelyhood of your borrower defaulting. So much so that you would require your borrower to obtain insurance, which, by the way, is even more money your borrower has to come up with every month.

Instead, by breaking up the loan into 2 loans you break up the risk. The lender in first position has much less risk, normally around 80% of the value of the property, and can now offer a lower rate and payment. The lender in second position has more risk, but on a much smaller loan amount. His rate will be significantly higher, but since the loan size is smaller the combined payments are much lower. In this way, investors who like risk get their higher rates of return, investors who don't like risk get better positioning and terms, and the borrower (usually) gets lower payments.

5 Dirty Tricks Banks And Brokers Don't Want You To Know About!

2006-12-07T08:40:00.000-08:00

Don’t get me wrong. Not every bank/broker is dishonest, but there are definatley enough of them out there that I know of that shouldn’t be in the business. Some might take the position that the following “Dirty Tricks” aren’t dirty at all. My response is, if they aren’t dirty, then why is it that so many of the clients I deal with tell me they didn’t get all the facts from their previous banker/broker till they heard it from the bank attorney at the closing?

Here’s my top 5 list of dirty tricks banks and brokers don’t want you to know about:

Dirty Trick #1:

NegAm Loans or Option Arms are the hot product at the moment with every mortgage company. People are eating them up because they’re advertised with a 1-4% interest rate. Bankers and brokers get paid a ton of money to sell these things. They usually come with 3 points built into the rate and a 3 year pre-pay! They’re taught to pitch the rate and payment and to only skim over the rest of the details. Here’s what you need to know.

NegAm or Option Arm is just a fancy way of not calling the loan what it really is, a Negative Amortization loan. Here’s a loan that’s payments are so low that they don’t even cover the interest owed every month. Every month you make your minimum payment the mortgage balance goes up. You keep losing equity until the loan is “recast” usually around the 3rd year. What recast means is they can raise your payment (like 200% or more!) to “help” you catch up on the equity you’ve lost.

You can even end up owing more than your house is worth. If you have an interest only or adjustable loan and someone calls you to sell you this type of loan…run.

Dirty Trick #2:

Beware of companies that push Interest Only mortgages. These programs are harmless enough when used correctly, but what I’ve seen doesn’t qualify. I’ve seen banks and brokers use these programs for first time homebuyers who otherwise could never afford a home. They’re so excited to buy a home they let themselves be pushed into a program that will eventually hurt them financially.

Look, if your monthly debt payments, including your proposed mortgage, taxes, and insurance, are more than half your monthly income, you can’t afford that house. End of story. When a bank or broker states your income is higher than it is, then uses an interest only loan with an adjustable rate mortgage just to get you in the house, you’re destined for foreclosure. The adjustable rate will adjust, the interest only part of the loan will expire, and you’ll have to scramble to keep up with the rising payments until you're broke.

Dirty Trick #3:

Most lenders charge a monthly fee when you borrow or owe more than 80% of your home's value on one mortgage. They call it "Private Mortgage Insurance" or PMI. This is ton of cash you give to their private mortgage insurance company to insure them, the lender, in case you default. It doesn’t cover you at all.

The truthe is that it’s almost always cheaper to break the loan up into two mortgages. The combined payment is almost always lower than the one, and there’s no PMI either.

Dirty Trick #4

Pre-payment penalties are fees some banks charge you if you try to payoff more than 20% of the loan in the first few years either by selling or refinancing your house. The problem is if you’re stuck in a bad loan, you’ll have to pay to get out.

A few states, like NY, have made these penalties illegal, but some crafty lenders use federal charters to charge them to you anyway.

What I mean is that the federal government can override state laws, so some of these bankers use the government to charge you more! As much as 6% of your loan size just to get out of your loan!

Unless you’re taking a fixed mortgage, stear clear of prepayment penalties. There are plenty of banks who don’t have them.

Dirty Trick #5:

This is the biggest dirty trick of them ALL. Bankers get something called a “Service Spread Premium” when they sell their loans. Brokers get “Yield Spread Premiums”.

Whatever they want to call it, it means the bank could have gotten you a lower rate and payment, but instead decided to lower your rate just enough to make the deal worth while for you while they pocket the rest of the cash. The banks and brokers make more money and you get higher payments.

There are certain situations in which all of these “tricks” are valid and useful. When they’re used in the client’s best interest, for one. But when they’re used to make the bank or broker more money at the client’s expense, then in my opinion, they’re as dirty as the day is long.

6 Easy Steps You Should Follow To Apply For A Mortgage So You Don't Get Ripped Off!

2006-11-30T13:23:00.000-08:00

I can’t say there’s any 4 or 5 specific questions to ask your broker/banker that will let you know if their on the level. There’s very little regulation in this industry. It’s like the wild west. Banks and brokers can and will lie. Not all, mind you, but there’s no obvious red flags a consumer can spot just by asking them.

Instead I would recommend a consumer educate themselves as best they can before they call anyone. I’d follow these steps:

1. Go to Experian, Equifax, and Trans Union’s websites and order your own credit report. The goal here is to know what your credit looks like before speaking to anyone. I’ve seen brokers lie to their clients and tell them their credit is terrible, when in fact their scores were fine. It’s a psycological trick to make them expect a higher rate. What you want to do as well is look for: a. inaccuracies, b. derogatory credit over 9 years old, and c. credit cards or loans that are repeated several times, and d. any account that is near maxed out. If you spot any of the first 3 you can notify the credit agencies and have them removed. Your score should jump in 30-60 days. For “d”, if you can transfer the high balance over 2 cards, that should have a significant positive effect as well. This process takes time so do it first. I have yet to meet a banker or broker who reviews their clients credit with them, much less delay their closing to get them a better rate by raising their score (unless they must to get the deal). This alone can save you thousands.

2. Go online and research all the different mortgage programs. They pretty much break down to 3 types: a. fixed, b. adjustable, and c. reverse. Once you understand the how each works, it’s tough to get sold on another you don’t need. A good banker/broker will take the time to ask you what your goals are and show you 2 or 3 different options to choose from. Beware of those deals that sound too good to be true. They probably aren’t telling you everything. We have a saying in the industry, “Clients who shop around don’t always get the best rate. They usually get the biggest liar.”

3. Choose at least 3 different companies to quote for you. A referral from a happy friend is a good place to start. I’d back up the referral with one bank and one broker. Both have advantages and disadvantages. Banks are watched more closely than brokers. However, they have set investors who buy their loans, so they can only offer so many programs. A broker can go anywhere with your loan to get you the best deal. If you find an honest and knowledgeable one (shameless plug), never let him go.

4. Before you call them, first call the NY State Banking Department (877-BANK-NYS). Inquire as to how many complaints they’ve had from clients over the past 2-3 years.

5. Now that you feel safe with your choices, you can call and send them your credit report. They will need to repull eventually, but at least you won’t have 3 people pulling it at once and knocking your score down. Your credit is sufficient for them to give you a quote. Also, tell them your attorney will need to review the Good Faith Estimate and Truthe In Lending. If you can afford to actually hire an attorney, even better. The threat of an attorney looming in the darkness will slow a shady banker/broker down. Hey, I’ll even look it over and tell you if you’re getting a good deal or not.

6. Get your offers in writing. Assuming you were honest with the information you provided as to income and what not, those quotes should be fairly accurate. Keep in mind, a Good Faith Estimate is not locked in stone. What you want is an approval. Once you’ve selected the person you’re working with, you should get an approval within a few days. The approval should be very close to the Good Faith Estimate. Don’t wait till the closing to find out otherwise.

9 Tricks You Can Use To Stop Foreclosure TODAY!

2006-11-28T15:32:00.000-08:00

The foreclosure process itself is pretty complex. While I would advise you to hire an attorney to guide you through, I also feel blindly trusting an attorney with your home is a major mistake. Attorney's have an obligation to protect you legally, not financially. Some of the recommendations I've heard some attorneys make have very serious financial ramifications. It's best to know all your options before making a decision.

Here are 9 strategies you can use to stop your foreclosure and save your credit:

1. Appeal an error. Hey, banks make mistakes too! Check their numbers. If they made a mistake it can buy you time.

2. Reinstate the loan. the bank wants their dough. If you can get it, pay up. They'll forgive and forget.

3. Forebearance- Work out a pyment plan to catch up.

4. Refinance- The interest rate will stink to high heaven, but it's only temporary. If you have the cash to make the payments now, then this is a good option.

5. Redeem the loan. This is when you return the lender's investment. If you happen to have a rich relative or you win lotto, then here's your answer. Hey, they can't all be gems.

6. Sell your house. If it's inevitable you're going to lose your house, then dump it, quick!

7. Lease with option to buy (Lease/Options). Sell your house to a friend and lease it from them with the option to repurchase it once you're credit is fixed.

8. Declare bankruptcy. In order for this to work, you need to be able to pay your current mortgage payment, plus make payments on your arrears. It's the same as a forebearance, only the bank doesn't have a choice but to cooperate. If you can't make the payments, don't bother.

9. Deed in Lieu. This is when you deed the house to the bank and walk away. THIS IS THE WORST CHOICE YOU CAN MAKE OTHER THAN DOING NOTHING!

Cash Back At Closing.

2006-11-23T11:58:00.000-08:00

Q: I've been reading a lot about people in trouble because they
goosed the mortgage amount on their purchase in order to receive cash at
closing. How does this actually work without the banks knowledge? How is the
cash accounted for? It certainly looks like fraud to me. By the way, great
idea for a blog.

Happy Thanksgiving,
J. Gimbel

A: The most common method I've seen to get cash back at closing is a repair credit. It's usually added as an addendum to the Purchase and Sale Contract. Generally, the mortgage broker handling the loan would "inadvertently" forget to send that page along with the rest of your loan documents to the bank. For all you brokers out there, I write this for educational purposes only.

A lender wouldn't approve of a repair credit because, unless it's a construction loan, they're not lending to make repairs. Banks have different rules for those types of loans. The value of the property on a standard purchase money loan, as provided by the appraiser, should be for the "as-is" condition. If the appraiser notes any repairs are needed in excess of a few thousand dollars (Amounts vary by bank), then the lender will require those repairs are made before the loan closes.

You should consult with an attorney to ascertain the legality of this type of loan structure. They have 100 ways to legally skin this cat. From my perspective, you'd get into trouble if the appraisal was artificially inflated or if it was done without the consent of the seller. Between you, me, and the rest of the world, investors have been using it for years without trouble. It's the amateurs and scam artists who abuse it that make the news.

Happy Thanksgiving to you and yours.

Mortgage Insider Tells All...What Banks And Brokers Don't Want You To Know!

2006-11-21T11:12:00.000-08:00

Most of my clients have the same questions. I think everyone would benefit from the answers, so I created this blog to once and for all let the truth out.

Most banks and brokers use dirty tricks to take your money and keep you in their debt game. It works like this - You ask for help, probably to try and save some money or pay off debts. They sell you mortgage products without telling you the whole truth. Once you realize you've been screwed, you run off to another lender for help, who in turn screws you again.

They have a dozen tricks up their sleeve like: Selling you a higher rate so they get paid on the back end even though you qualified for a lower rate! Selling you a mortgage that you'll have to refinance every year or two! or how about Selling you a mortgage that actually loses your home's equity! I'm here to expose them all.

Please email any questions you have to Brian@eloanmaster.com.