Pay Option Arms Resets and how they will impact you

Nice to see a proactive approach on the issue of the upcoming resets with Pay Options Arms. Nice going Brown, the California Attorney General. This is needed! Unfortunately because I don't think anyone who utilized one of these loans did not have the goal of refinancing at a later date. Consumers understood the possible issues, but consumers were sold that there was no way this could happen. Much less happen as quickly as it did happen.

I am curious to know if this is an attempt to avoid class actions suits against lenders. There is a loud roar growing that many believe the lenders knew the outcome and took full advantage of the consumer.

I admit it, I was a fan of this loan when it came out. It painted it a pretty picture, of the possibilities of achieving a dream. However, I did not see the draft/economics behind it. When you look at it in layers it was clearly a bad product introduced at bad a time and the consumer is the one left with a worthless asset.

The only problem, I think the office may be missing is the fact that a high percentage of the current defaults already falls into this category and there has been no program designed to help these homeowners thus far. Current loan modification attempts is a failure since in order to be approved the homeowner must qualify under the terms of a fully conventional loans at higher home values. Hello they weren't approved on those terms originally how can be approved now!

I hope to see the Attorney Generals Office really hold these lenders accountable, the only way consumers are going to keep their home and qualify for loan modifications is if the lenders reduce principle and ease income constraints. They are writing off the loss on the short sales and foreclosures but not on modifications, this is a change that could easily take place with the right effort behind it.

Economic Impact on Single Women

Received this great information on the how the current Economy is impacting Single Women and the numbers are surprising. For more detailed information, check out one of my favoriet web-sites www.WVWV.org

Make sure the person and or people you are voting for in your community are taking these figures into account. Personally, I think little has been spoken about Singles and if there has been any discussion it is not normally with Single Women. Yet is is a huge demographic that should not be overlooked.

• Income:
  Unmarried women earn only 56 cents for every dollar that married men make. [Center for American Progress, 4/25/08]
  
• According to analysis of data from the Panel Study of Income Dynamics for individuals 25 to 61 years old, female-headed households have twice the likelihood – 13.5% - of seeing a 50% greater drop in their income than male-headed households’ probability – 6.6% - of such a drop. The probability of a major income drop for female-headed households has risen in the last two recessions. [“Taking a Toll: The Effects of Recession on Women,” Prepared by the Majority Staff of the Committee on Health, Education, Labor and Pensions, 4/18/08]Jobs:
  
• Single mothers’ unemployment rate rose from 6.7% in March 2007 to 7.1% in March 2008 – eclipsing the national average. [“Taking a Toll: The Effects of Recession on Women,” Prepared by the Majority Staff of the Committee on Health, Education, Labor and Pensions, 4/18/08]
• Retirement Security:
  Single women estimate needing a median amount of $500,000 by the time they reach retirement. However, more than one-third report that they have saved less than $25,000 for retirement, while only one in 10 report having saved more than $100,000. Only 69% of single women who work full-time report that their current employer offers them a 401(k) plan. Sixty-four percent of single women who work part-time have no retirement benefits offered to them by their employer. [Ninth Annual Transamerica Retirement Survey, 9/17/08]Savings:
  
• Female-headed households are at a distinct disadvantage in recessions because they have fewer savings to draw upon. In an analysis by Harvard Professor Mariko Chang of the net worth of all unmarried women, he found that their median net worth was $12,900 – less than half the $26,850 for unmarried men. He found that the wage gap is the primary cause of this inequality of wealth – accounting for 39% of the disparity for never-married households and 18% of the disparity for divorced households. [“Taking a Toll: The Effects of Recession on Women,” Prepared by the Majority Staff of the Committee on Health, Education, Labor and Pensions, 4/18/08]

• Bankruptcy:
  Single women are the most likely demographic group to file for bankruptcy and comprise 40% of all bankruptcy filings. Single women with children are even more likely to file for bankruptcy, at an estimated rate of 21 out of every 1000 families. [Dunleavey, M.P. , “Seven Ways to Fight Off Bankruptcy,” MSN Money]Poverty:
  
• More than half of all poor adult women - 54 percent - are single with no dependent children.
• Twenty-six percent of poor adult women are single women with dependent children [“The Straight Facts on Women in Poverty,” Center for American Progress, 10/08]Housing:
  
• About 43 percent of single women were using more than 30 percent of their income each month on housing payments, compared to the 30% of unmarried men and 25% of married couples who were spending more than 30 percent. [Joint Center on Housing at Harvard University]
  
• Single women have been among the fastest-growing groups of homeowners in recent years. In Baltimore, single women accounted for 40% of home sales in 2006, twice the national average. Nearly half of these mortgages were subprime, according to the National Community Reinvestment. [New York Times, 1/15/08]

Remember, if you have Single Female in need of help, we want to help here. So post your questions, concerns, needs here.

One area we can make an impact in is in the Foreclosure rate, if you currently own a home and want advice on how to keep it, contact Kelly today. Through a Loan Modification may just be the thing to help you save your home and Kelly has added this to her business services with Singles in mind.

Is there a Possiblity of Saving Your Home?

I am pleased to announce that after careful consideration, I will be offering a new service Mortgage Review for my clients. Throughout the past year, I have been asked by our valuable clients on what is the best move with their mortgage and have been happy to provide directions.

With the current market conditions the number of short sales and foreclosures have increased and this makes me sad when I see most would like to keep their home, but feel there are no options. So in response I have decided to include as one of my services the option of Loan Modification and have aligned my self with a company who has great success in just that. Our goal is to save your home! If you currently have negative equity, worried about your loan being reset, see trouble on the horizon and would like to KEEP YOUR HOME, then we may be able to help.

As always my goal and service pledge is to understand your long and short term goals and help you achieve them. I am not just a Real Estate Agent, rather a Realtor who's business structure is geared towards all your Real Estate needs.

Please do not hesitate to contact me with any questions

Warm regards,

Kelly