The House approved the Seven Hundred billion Dollar Bailout that was rejected earlier in the week. The President signed the bill as well. The question now is: how will the Bailout impact homeowners who are in the risk of foreclosure? The Bill includes help to homeowners in foreclosure in the form of the Government buying out bad mortgages from the banks, and then deal with the homeowners directly or through Fannie Maid and Freddie Mac. There is a new Bill that the congress passed In July, is called the New Housing Rescue Law, and was supposed to come into effect in October 2nd. This program was signed before this financial crisis came to light, and that is when the problem comes. What is not unknown so far is, if the Government will deal with the homeowners through the housing bill that was signed back in July in which each loan will have to be underwritten by an FHA lender on a case-by-case basis. This means that the Lenders would examine and verify income statements, bank accounts, job histories and credit scores. According to the original bill, you will have to meet all credit criteria to qualify. For the Lenders is a voluntary program, so if the original lender agrees to the write-down, a new lender buys the old loan and takes over the reworked mortgage, and again it all will depend how this financial crisis evolve. There is a predetermined cost for borrowers to bear. Loan origination fees will vary by lender, but these can usually be paid by the borrower over the life of the loan in the form of a slightly higher interest rate. The help Relief Program do come with many strings attached, so the homeowners must understand what they are getting into. For one thing, homeowners are responsible for paying a lifetime insurance premium to the FHA, which will be 1.5% of the principal annually. For example, if your house is value at $250,000, you will pay to the FHA an annual fee of $3,750.00. That is on top of whatever you are already paying for Home Insurance Home taxes, which is abusive, I think. We, the borrowers, will also agree to share any profits from future home price appreciation with the FHA. To do that, we will pay a 3% exit fee of the principal to the FHA when we resell or refinance. This means, if I later sell my house for $275,000, I will have to pay to the FHA a total of $8,250.00, just for the exit fee. But it gets worst. I as a homeowner will have to agree to pay the FHA a hundred percent of any profits I realize from higher home prices if I sell or refinance within a year. If I sell my house anytime in the future, not matter how many years from now; I will have to pay to the FHA a minimum of fifty percent of my profit. In conclusion; with the financial crisis that this country is facing right now, is up in the air how, if ever, this new help release program will be implemented as it was written, but the fact is that no matter what is going to happen, you need to fight foreclosure and hold on to your house now more than ever, because that is the only way that you may take advantage of any help program that may be available in the future. To learn more make sure you visit my Website.
Whether people like or hate Wal-mart, the large retail chain store, there is one thing they do agree on. Wal-mart has cornered the market on merchandising products that average middle class American families can afford. Widely criticized for putting "mom and pop places" out of business and not paying their employees fair wages, the company has undergone a lot of scrutiny over the last few years, and now they are gearing up to be under the watchful eye of America once more.
Wal-Mart is ready to take on Wall Street, as company executives try to enter the store into the banking business! An attempt in 1999 to purchase an Oklahoma Savings and Loan was met with a negative result by Congress. People are afraid that if Wal-mart enters into the world of banking, smaller banks won't be able to compete with the amenities they offer. Opponents of the plan include Sen. Hillary Rodham Clinton, who ironically once sat on Wal-Mart's board, but feels it wouldn't be prudent to remind people of those ties with an election year closing in on her ...
Those who support the idea point out that Wal-mart would do for the average American's banking needs what it does for their retail needs. It would make banking available for the little people that big banks tend to overlook. Right now, most banks force lower income families (i.e. those that can't afford to carry big balances in their checking accounts) to pay higher than normal fees.
Wal-mart isn't trying to become a full-fledged bank. They gave up on that idea the last time they were rejected in their attempts. They simply want to apply for a charter that will help them reduce their credit card fees. At present the company offers a check cashing service that costs patrons $3 to have a check cashed. While this may seem a bit expensive, it is much cheaper than the percentage fees that most check cashing businesses charge.
Started in Rogers, Arkansas in 1962, by Sam Walton, Wal-Mart is the largest retailer in the world. Wal-Mart is the largest private employer in the United States, Mexico and Canada. It also has given back to shareholders over 180,000% in total returns since it went public in 1972. There should be no wonder that several Walton heirs feature on Forbes' list of billionaires; they include Christy Walton, Jim Walton, S. Robson Walton, Alice Walton, and Helen Walton who all hover around a net worth of $16 billion.
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