NLIC.org

Marc Said:

The FED bought What ??

We Answered:

The Fed has bought a lot of sub-prime mortgages? Doesn't this double the loss if the mortgages default?

Maybe the Fed has finally bought a one way ticket to the 'attention of the public' and will get some bad publicity for a change... Maybe the media will have to cover it when these mortgages go 'bad' and the Fed tries to issue more securities to cover the debt it has to the banks that it is trying to support.

Gabriel Said:

Emergency Economic Stabilization Act. Failed?

We Answered:

Watch this 7-minute video fro a crash course that will go a long way toward answering your question.

http://www.informationclearinghouse.info…

Dave Said:

Possible Foreclosure with 2 Mortgages?

We Answered:

When a financial hardship comes up, and there is not enough income to make all of the mortgage payments, more than one of the lenders may initiate foreclosure proceedings in the county court at roughly the same time. In fact, if one starts the process of filing paperwork in the court system, all of the others may also file as soon as they are aware of the first foreclosure, and that the homeowners are behind on all of their bills. This situation can be somewhat confusing for homeowners, though, if the second mortgage files first, followed by the first; or the HELOC holder filing first, followed by the first and then the second.

But, to put it in as simple terms as possible, filing foreclosure is simply one creditor, who has had the house pledged as collateral for a mortgage loan, asking the appropriate local court to sell the house, in order for the mortgage company to regain any losses experienced on the nonpayment of the loan. The fact that more than one lender is claiming losses at once, when all of the lenders are behind on payments, should not be surprising at all.

It will be the court itself that orders the sheriff sale of the property, as long as the plaintiff in the case, the bank, can prove that the loan is in default and that the property is collateral. This, of course, is usually quite easy to prove, and, far too often, homeowners do not even make an appearance at the foreclosure hearing to make an answer or request more solutions outside of the legal foreclosure process. However, in any case, it does not matter if one mortgage company or lienholder files foreclosure paperwork first or second, as the proceeds from the eventual foreclosure auction will be paid out the same way. The order of payments is determined far in advance, even before the house is sold to the foreclosure victims to begin with.

At the sheriff sale, any back property taxes will be paid off first. Then, the first recorded mortgage will be paid off. After that, any other parties will be paid off in order of when their lien was filed with the county recorder. The only exception would be for a mechanics lien, which may not be recorded at the time of the foreclosure or auction, but the creditor may be able to collect a portion of the proceeds before an earlier-recorded lienholder. This is a somewhat more uncommon event, though, and most homeowners in foreclosure will not experience it. It is also a broader topic than can be discussed fully in this post.

It is the order in which the parties had filed their liens, for the most part, that will determine who is paid off with the proceeds from the auction first, second, third, and so on. Not surprisingly, county property taxes are always paid off first, since the government needs to make sure it gets its share before anyone else. Also, this prevents the new purchaser from having to pay off the back taxes or worry about a tax foreclosure if the transfer does not take place quickly. County property taxes are almost always paid to a current status or otherwise settled in any sale of real estate, whether through foreclosure or otherwise.

Thus, the payment of proceeds from a sheriff sale is not determined by which lienholder files for foreclosure first; rather it is decided solely by the recorded date of the lien. Any lien is counted in the determination of order, whether it is a first mortgage, second mortgage, judgment lien, income tax lien, or other assessment.

This is also a major reason that second mortgage companies are often far more willing to work with homeowners in setting up a repayment plan or taking less money on a short sale: they know that, in a foreclosure auction, they will probably not be paid any of the proceeds after the taxes and first mortgage are paid. Other liens beyond the second mortgage often have even less of a chance of getting any real benefit from forcing a sale of a property through foreclosure.

However, any lienholder who has had the property pledged as collateral for a loan can initiate foreclosure proceedings. Even second mortgage companies will start the process if the homeowners are not in contact with the bank and have not expressed an interest in getting the monthly payments back on track. They may hesitate to file for foreclosure, but no response by the owners will eventually force them to take action in the courts. Homeowners will most likely be facing only one foreclosure action against them by a first mortgage company, but this does not preclude the possibility of facing more than one foreclosure lawsuit at a time.

Hope that helps.
ForeclosureFish

Kenneth Said:

What is the best way for me to get out of debt?

We Answered:

Start a new business in your new town. You, husband, 16 year old, 20 year old can all work. You need low start up cost like zero so something like an in home daycare or a assisted for the elderly since you have the place ready for wheel chairs.

Maybe turn the garage into family space for your kids and use the extra 3 bedrooms for assisted living space. If you can't get assisted living licensing you could rent out the extra rooms.

Can you start the same kind of business you had before?

Velma Said:

If you oppose the bailout, would you accept this?

We Answered:

Any amount received over the current market value of assets sold must be recorded as an investment by TARP in the company- why would I want stock in a possibly insolvent company
. TARP equity in the firm shall accrue preferred dividends at 11.3% until the firm repays the TARP equity in full. Unpaid dividends become more TARP equity.- this sounds like fannie mae and fredie mac scheme to me
. any participating firm must reduce all salary and bonus packages of all employees so that they do not exceed $60,000 per year, until the firm has repurchased all TARP owned equity.- you cant give interns summer jobs with those prices -every american will be in london -japan -etc.
any participating firm must ask all employees to return any salary, bonus, and other compensation if their total compensation over $120,000 a year beginning with the year 2002. Any employee may decline to do this, and will be deemed to have resigned voluntarily if he or she does refuse- you cant do this to people it would wipe out half the upper middle class
. all participating firms must disclose weekly vie their website the total amounts of assets they still hold which are eligible for purchase by TARP, the amount of losses already booked on those assets, and the amounts of, and losses on, any assets that TARP has deemed unfit or too damaged to be purchased by the program. -something like this needs to be done but I dont agree with buying assets making the US govt insolvent (the problem is much bigger than you are being led to believe and estimates run as high as 100 trillion .No bailout
here is a perfect example of how wide spread this is
http://answers.yahoo.com/question/index;…

your number doesnt include all of the above please read the link -there are many more derivatives and credit issues tied to this

Walter Said:

Is this a good divorce (pre-divorce)strategy?

We Answered:

Dang, son - that is rough!

OK, refinance the house ONLY if it is in BOTH of your names!!! Take the money and put it in the bank. Immediately buy another (reliable) car or truck. But don't pay off her credit cards yet. As soon as you have the truck, take the money you can and get a lawyer.

Do you all have kids? If so, it'll be a mess. Lawyer up right away! Let the courts decide who should pay on her credit cards. I'd hit her with divorce papers before she can get you.

Good luck! :)