Silver Oranges

Different types of mortgages

2011-03-09T08:18:00.000-08:00

As the housing market opens up, more first-time home buyers are looking to enter. Unless you are paying cash for the house, you will need a mortgage. There are two main types of mortgages available; FHA (Federal Housing Administration) and conventional. The main advantage of a FHA vs conventional loan is that the credit qualifying criteria for a borrower are not as strict as conventional loan financing and the down payment or Equity requirements are less. In comparing a purchase money FHA loan against a Conforming or A paper loan, the FHA loan will generally have the least amount of money required to close and the lower payment. FHA Loans will allow the borrower who had previous "credit issues" or those without a credit history to buy a home. FHA loans also require a lower down payment. Most conventional loans require a 20% down payment where FHA only requires 3.5%

One drawback to FHA loans is that the loan limits set for FHA loans are typically less than the loan limits for conventional financing in most parts of the country. If a borrower is looking for a mortgage that exceeds the FHA loan limits for the area, the borrower would have to put additional money down on the property or finance under a conventional mortgage. Under the 2008 stimulus package FHA loan limits have been raised in many areas and FHA offer FHA Jumbo Loans. Also,conventional financing does not require an upfront mortgage insurance premium when a borrower closes on the loan. With FHA financing, that fee for a 30 year loan is 1.75% of the loan amount that the borrower can wrap into the mortgage.

Explaining debt negotiation

2010-09-15T15:14:00.001-07:00

If you watch TV or listen to the radio, you have seen or heard a debt settlement or debt negotiation commercial. As the economy worsens these services have come to the forefront of the financial world. I have been asked by several people, "what exactly is this service?" Simply put, debt settlement is an aggressive way of dealing with a consumers unsecured debts. Their objective is to create debt relief or debt freedom. The debt settlement company will propose a lower payback to the creditor and that payback will be regarded as a payment in full. Debt settlement was designed for consumers facing a financial hardship who are either behind on their monthly payments or are going to fall behind. These programs will help the consumer save money on a monthly basis as well as lower their total payback. The program is not for everyone. A good company will qualify you prior to acceptance. If you are thinking of filing for BK, you might want to look into this service first as a road to your financial freedom.

A day in the life or racism

2010-04-09T12:15:00.001-07:00

In the year 2010, racism still exists and anyone who disagrees may very well live in a hole. Working in a large corporate environment, I often walk by a hundred co-workers a day with whom I am very civil and they reciprocate with smiles and a hello. But then an uncalled for, racially insensitive incident occurs which makes me think about how genuine those smiles really are. Apologies and excuses aside, a person had to prepossess those feelings and thoughts which in itself is inexcusable. It is a deflating feeling when incidents like this occur, especially when they are made directly at your ethnicity. Very few will argue that racism is ignorance or hatred; maybe a combination of both. When living in a culturally diverse area, maybe the most culturally diverse area in the world, you slowly find yourself blending in unaware of the aesthetic differences you possess. It is funny how fast that mask is removed and feelings of self-consciousness return. The gamut of emotions you feel come fast and hard, beginning with anger and ending with disappointment. Having gone to college in the mid-west, I once became intimate with these emotions on a daily basis. Truth be told, I will forget about all of this a week from now and once again blend into the melting pot...........until it happens again.

401k vs. Roth IRA video

2010-04-08T15:38:00.000-07:00

http://www.youtube.com/watch?v=vf_hQ_l1pXA

Freedom Debt Relief Resolves Lawsuit

2010-01-14T17:10:00.000-08:00

REDWOOD CITY — A San Mateo-based debt reduction company has agreed to shell out $500,000 in restitution to settle a lawsuit that alleged the business didn't have proper state licensing and mislead customers, a prosecutor said Wednesday.

Freedom Debt Relief LLC, which operates under the umbrella company Financial Freedom Network, offers to help people get out of debt by negotiating with their creditors, according to the lawsuit filed against the company. But Freedom Debt Relief wasn't licensed by the California Department of Corporations and they charged fees higher than allowed by law, the suit said.

As part of the settlement signed Tuesday by San Mateo County Superior Court Judge Carol Mittlesteadt, the company has set up a $500,000 restitution fund for customers who contracted with Freedom Debt Relief between Nov. 1, 2004 and May 31, 2008, according to the San Mateo County District Attorney's Office.

The company did not admit any wrongdoing and will send letters to the eligible customers, who can then apply for partial refunds, in the coming weeks. They have also paid $360,000 in reimbursement to the Department of Corporations and the District Attorney's Office, as well as $90,000 in penalties.

"(Freedom Debt Relief) made some mistakes." said Deputy District Attorney Chuck Finney, adding that the business did not intend to "scam" people.

According to the lawsuit filed against them in October 2008, Freedom Debt Relief,

and other companies under the Financial Freedom Network, advertised that they could make customers debt-free in 12 to 36 months, get debts lowered by as much as half and obtain money-back guarantees on service fees, among other claims.

In reality, the complaint says, the companies often failed to contact the customers' creditors and were unresponsive to customer requests. As a result, the creditors piled on late fees and additional charges, causing higher debt, lowered credit scores and bankruptcy for some customers, the suit states. The allegations against the other companies, which had names like Bills.com LLC and Freedom Tax Relief LLC, were dismissed.

"This is a vindication of our business model," said Andrew Housser, co-CEO of Freedom Debt Relief, "We're very happy that we will be able to continue doing business in California."

Housser said the company agreed to the settlement and paid the money as a business decision.

He said they did nothing wrong, but the case against them wouldn't end until they agreed to pay some type of restitution. With the lawsuit behind them, the 580-employee company, about 340 of which are in California, will begin to expand. Housser said he will hire about 200 more employees in California and Arizona in the coming months.

"Litigation is a huge distraction and expense," he said. "Now we will be able to start growing."

Under the settlement, Freedom Debt Relief has to tell clients how much time will pass before the company will begin negotiations with a customer's creditors. The judgment did not take a stance on whether the company had been operating without a license, said Finney.

Amazon continues strong growth

2009-12-01T12:15:00.000-08:00

Black Friday's online sales were up 35% year over year, and early reports for Cyber Monday put the gain at 19.6%. Amazon (AMZN), as an online pure-play, has felt a lift from both these factors, but its execution in the e-reader category can't be ignored. While Sony (SNE) and Barnes & Noble (BKS) have already sold out of their respective devices, effectively taking them out of the game until early next year, Amazon's Kindle continues to fly off the shelves.

So, what's the prize for effective forecasting and a supply chain that can delivery on it? A new record!

Amazon had its best Kindle month yet in 2009, though it wouldn't reveal how many of the devices it has moved or the revenue it's pulled in from these sales. All it would say is that some buyers were buying more than one Kindle at a time, and businesses and organizations were picking them up in volume for employees or clients.

The lost revenue for Barnes & Noble and Sony may not be the enduring result of their respective e-reader debacles this year. As the category was starting to take off, both were grounded, unable to deliver on customer demand. So, the chance to yank some market share from Amazon, the industry leader, has gone unexploited.

Even more interesting is that the two competitors basically wound up marketing for Amazon. The hype that went into the new product launches for Barnes & Noble and Sony has ticked demand for e-readers higher, but there's only one place for the customers to go: Amazon.

In the meantime, the lost opportunity has complicated life for Barnes & Noble. Now, it's shipping Nook devices to customers who pre-ordered ... at the expense of its retailers. And, it's had to lower its full-year earnings forecast because it expected the holiday seas to be brutal, and it's had to amp up its spending to speed up Nook production.

Debt Settlement

2009-11-24T18:02:00.000-08:00

If you watch TV or listen to the radio, you have seen or heard a debt settlement or debt negotiation commercial. As the economy worsens these services have come to the forefront of the financial world. I have been asked by several people, "what exactly is this service?" Simply put, debt settlement is an aggressive way of dealing with a consumers unsecured debts. The debt settlement company will propose a lower payback to the creditor and that payback will be regarded as a payment in full. Debt settlement was designed for consumers facing a financial hardship who are either behind on their monthly payments or are going to fall behind. These programs will help the consumer save money on a monthly basis as well as lower their total payback. The program is not for everyone. A good company will qualify you prior to acceptance. If you are thinking of filing for BK, you might want to look into this service first.

Foreclosures down from last month

2009-11-12T11:04:00.000-08:00

According to RealtyTrac, the number of homeowners facing foreclosure dropped during October, thanks in part to foreclosure prevention programs, such as HAMP and other debt relief programs. This is encouraging for homeowners trying to gain freedom from foreclosure proceedings. More than 332,000 households (one in every 385 homes) were recipients of either a notice of default or a trustee's sale. This number is 3% lower than September, making October the third straight month with a drop in the number of homeowners facing foreclosure. As for homes actually repossessed, the number dropped to 77,000 in October from 88,000 in September.

One reason for the lower number of foreclosures is new state programs that require a bank to try and work with the homeowner before seizing property in an effort to provide consumers debt relief . In addition, some lenders are staving off foreclosures by evaluating consumers on the door step to foreclosure(no pun intended)who may qualify for the new federal loan modification program.

For the 34th straight month, Nevada led the way in foreclosures, despite best efforts to slow the rate of foreclosures. Las Vegas ranked in the unenviable top spot of cities, with one in every 68 homes receiving a foreclosure filing.

This statistic is positive relative to month over month data, but is negative relative to last year's data. The number of foreclosures is still 19% higher than a year ago. This statistic may get worse before it gets better as unemployment has also risen above 10% nationally.

Retailers trying to get consumers in the door this holiday season

2009-11-09T08:38:00.000-08:00

Walmart has recently announced its low price guarantee heading into this holiday season. As retailers rush into the "under cutter's pizza" mode, consumers are reaping the benefits. The war on DVD pricing has already begun. When Walmart announced reduced prices on several titles to $10, Amazon followed at $9.99, with Walmart stepping back in at $9.98. The market among major retailers is intensifying, with many offering products as loss leaders in order to entice customers into the store. Along with Target (TGT) and Amazon (AMZN), Walmart is slashing DVD prices, the same tactic it's using with books.

If the book market is any indication, the low prices won't last forever. Preorder prices have been low, followed by gradual increases as the books have reached shelves. Nonetheless, the retailers are taking shots to the chin with every hot title, now whether read or watched on television.

When consumer spending is in the tank and consumers are focusing more on debt relief and debt freedom, retailers have few levers they can pull. Historically, deep discounting on certain items as a way to increase basket size has been popular, and sacrificing near-term margins for market share gains can deliver returns when the economy recovers. For now, however, the goal has to be to turn in a market-leading holiday sales result -- that's the number that sets the tone for the year. And, with many retailers closing their fiscal years at the end of January, it's the last big chance to make the year look good. Of course, this is all easier said than done with unemployment exceeding 10% nationwide.

Starbucks reports higher than projected for Q3

2009-11-05T16:31:00.000-08:00

Shares of Starbucks (NASDAQ: SBUX) are trading up in after hours trading today after the company posted strong Q4 earnings numbers after the market close.

The company was expected to show earnings for the quarter of 21 cents per share on $2.39 billion in revenues. The actual numbers came in at 24 cents per share with revenues of $2.4 billion.

Same store sales were also strong for the quarter. During the previous quarter the company reported a 5% drop in same store sales, and that figure shrank to just -1% during the fourth quarter.

Looking ahead the company sees full year 2010 EPS growing somewhere in the range of 15 to 20% from 2009.

Shares of Starbucks are trading up 3.4% in after hours trading.

Debt settlement or debt negotiation

2009-10-13T07:33:00.000-07:00

Credit cards defaults still on the rise

2009-09-17T09:20:00.000-07:00

For most of us, this is the worst economic decline we will see in our lifetime. The fallout is being felt throughout the economy but is most prominent in credit card defaults, which are rising and will continue to rise, according the leading analysts. As the economy worsens, consumers ability to attain debt relief becomes more difficult.Default rates are growing with two of the biggest credit card issuers. Bank of America (NYSE: BAC) saw its defaults rise to 14.54% in August from 13.81% in July. Citigroup (NYSE: C) saw defaults rise to 12.14% in August from 10.03%in July. Following close behind was JPMorgan Chase & Co. (NYSE: JPM) at 8.76%, up from 7.92%. The trend is clear. Defaults are on the rise and consumers are moving farther away from financial freedom. Banks are in a defensive mode. They are slashing credit lines to the bone, even for good customers, and raising rates to astronomical levels.Until we see defaults falling, things are not getting better.The credit bubble that burst last year still has a long run ahead of it. Foreclosures are still rising, as is unemployment, which hit a national level of 9.7% last month. Until consumer's financial situations stabilize, these trends will continue. When money becomes tight, credit cards are prioritized below mortgages and auto loans and will be the first debts to be defaulted and diminishing the dream of experiencing debt relief and reaching financial freedom.

McDonalds is not very McHappy

2009-09-08T11:24:00.000-07:00

In 1999 a company started a restaurant in India and Malaysia called McCurry. McCurry serves local cuisine in a fast food manner very similiar to McDonalds. The McCurry logo is a chicken, not surprisingly colored red and yellow. Also, the manner in which the food is served is very similiar to the McDonalds production line model. McDonalds filed suit against McCurry in 2001 and won a ruling in 2006. Fast forward two more lawsuits with the country's highest court, McDonalds loses the trademark battle, though the menu does need to remain distinct from McDonalds. McCurry stated the Mc in McCurry stands for "Malaysian Chicken Curry". McDonalds released a short statement stating they respect the judgement and have no further comment. McDonalds currently has 185 restaurants in Malaysia.

Tax evaders found on facebook

2009-09-03T11:42:00.000-07:00

If you owe taxes to the government, you may want to re-think starting or updating your activity in social networking forums. The government is becoming more creative in tracking down persons who owe money. Many states are exhausting all options to find relief and gain freedom from their huge debt. If you are self-employed and move around a lot, tax dodging can be easy to accomplish. States like California, which currently offer registered warrants(a.k.a. IOU's) for tax returns, are aggressively pursuing any avenue to recoup dollars owed. Their recent surplus auctions are one method used to find debt relief. When a California tax dodger was identified as a rigger of sails, a curious collection agent searched his name and the term online and found a discussion board used by local riggers. In one thread someone asked where the rigger was because his store had closed, and a reply was posted, "Oh, he moved across the bay." The agent found the man and collected a four-figure sum. One Nebraska agent collected $30,000 of unpaid tax from a resident after a Google search found him listed as a high-ranking local marketing rep for a national firm. Though not every state has adopted a policy of allowing their tax officials to use the internet, many are exploring the option.

Google to enter loan referral business

2009-08-27T09:32:00.001-07:00

On Tuesday, Lending Tree filed suit in U.S. District Court in Charlotte against Mortech Inc. The suit claims Mortech violated an exclusivity clause by working with another partner, specifically Google. Mortech provides technology that helps automate lender offer pricing. This has lead many to believe that Google is contemplating entrance into the mortgage lead generation space. This was soon confirmed when Google, not party to the suit, responded to the lawsuit by saying,"We’re constantly looking for new ways to help people find what they are looking for on the Internet. As part of that effort, we are currently working on a small ad unit test that will run against a limited number of mortgage-related search queries in the US." Many believe the launch will begin as early as September.

FHA mortgage vs. conventional mortgage

2009-08-26T09:41:00.000-07:00

Struggling with debt but want to keep good credit

2009-08-24T12:34:00.000-07:00

As the economy continues to struggle, consumers also struggle with their finances. If you are struggling with your debts, there are several options for you..... but all will come at the cost of your credit. Too often I hear consumers say," I need help with my debts but don't want to hurt my credit." This makes no sense to me. Other than renting an apartment or getting a cell phone, credit is used to..... well, get more credit. If you are struggling to repay your current debtors, why would you want access to perpetuate your problem? If you are struggling with debts, take care of these debts first(even if it means hurting your credit), so you can become debt free. Only then can you look to the rebuilding your financial future and starting your financial freedom.

401k vs. Roth IRA

2009-07-24T15:18:00.000-07:00

I am commonly asked which is better. Both have great tax exemptions/deferments. Both also have max contributions. My simple answer is this. If your company does a 401(k) price match, exhaust that first. This is free money. Example: If your company will match 6% of your contribution, then contribute at least the 6%. You are getting 12% for contributing 6%. I would then contribute to the Roth IRA. The max contribution on a Roth IRA right now is 5k per year. This is a phenomenal investment vehicle as the any interest accrued is tax free, less early withdrawal. Also, you can withdraw any amount up to the principle invested without tax penalties as you have already paid tax on this money(Roth IRA's are post tax contributions). If there is any room to invest more, max out your 401(k). Be advised, there is a $15,500 max contribution on this vehicle as well.

The fall of Lenny Dykstra

2009-07-08T08:32:00.000-07:00

Controversial former pro athlete Lenny Dykstra has now been added to the riches to rags list. Dykstra has been the center of controversy over the years as he was named in a sexual harassment claim, alleged to speak offensively about blacks, women, and gays, and was named in the Mitchell report as a steroid user. It was recently reported that Dykstra is facing foreclosure on his Thousand Oaks home. The house has been on the market for some time with little to no interest. Dykstra is reported to be $12 million in the hole for this house and Washington Mutual has begun the foreclosure process. He has already had a luxury boat repossessed. Ironically, Dykstra tried to start a magazine, the Players Club, aimed at helping professional athletes manage their millions. He dropped about $3 million of his own money and enlisted the help of icons including Wayne Gretzky, Tim Brown, and Ron Darling. The magazine failed after its first publication. This is quite the fall, as Jim Cramer had once crowned Dykstra," One of the great ones in this business," referring to day trading. Very few will argue that he was a great baseball player on the field, but his actions off have been less than stellar. Is he the victim of a bad economy or bad karma?

Netflix's Newest Competition

2009-06-30T09:10:00.000-07:00

I have noticed automated DVD rental machines are popping up all over the place. Turns out the machine, also known as Redbox, are owned by Coinstar. The business model is a simple kiosk that rents new release DVD's. Because it cuts out the middle man Redbox is able to rent their DVD's for only 1 dollar per night. You can also return the DVD to any Redbox kiosk. Sounds harmless, but not according to Netflix CEO, Reed Hastings. Hastings has stated his biggest concern is not Hollywood Video, Blockbuster, or the internet, but rather Redbox. Redbox states they currently have 15,400 kiosks up and are installing a new kiosk every hour. At this pace, Redbox will become Netflix's number one competitor by the end of the year.

What is debt settlement?

2009-06-23T10:18:00.000-07:00

1st Time Homebuyers Tax Credit

2009-06-18T15:37:00.000-07:00

To help stimulate the economy, Congress has provided a tax credit for first time home buyers. The tax credit allowed is up to $8,000. As with everything, there are limitations and rules so check with your local lender for specifics. This credit is good until Dec. 1 of this year. As home prices continue to fall, now is a great time to purchase a home if you are able. There is even talk about allowing the credit to be used towards the down payment and closing costs. The tax credit is great idea that will help facilitate new home buyer purchases. I have several friends who are looking to buy. They are on the fence because the cost barely fits their budget. This tax credit can help alleviate tight budgets. If you have more questions about the credit, check out http://www.federalhousingtaxcredit.com/.

Battle of the Bay

2009-06-12T11:25:00.001-07:00

The economy is showing subtle signs of recovering as retail sales are growing and real estate prices seem to stabilize. Though unemployment is increasing nationally, it increased at its slowest pace in a long time. After the last years of this torrid market, we are all looking for something positive to help take our minds away from these troubled times and now it has arrived. The annual Battle of the Bay. Yes, the Oakland A's are playing the San Francisco Giants in a 3 game weekend series. Many historians, professors, and bloggers(myself included) may state that this is the single most important event of the year. Fans of each team carry a loyalty that runs deep. I have met several fans who went through a rigorous decision process to determine which team to root for. The most scientific approach I have heard so far is a die hard fan who picked her team based on which team had her favorite colors. Deep. Nevertheless, it should be a great series and may the best team win.

Bing overtakes Yahoo

2009-06-09T10:18:00.000-07:00

In the recent weeks, Microsoft has launched its new search engine Bing. In less than a month, Bing leapfrogged Yahoo's market share holding 16.28% versus Yahoo's 10.22%. Google still has massive control with over 70% according to StatCounter Global Stats. Googles market share was higher which also shows Bing took some of Google's market share in the process. Many experts expected Bing to do well but not this early. It helps that Microsoft is spending 100 million dollars to market their new service. It also helps that Microsoft knows what not to do as their "Live" search engine services failed. Though it is uncertain if the strong initial push is due to the newness and novelty of Bing or the competitiveness service it offers, no one will argue that its long-term survival is dependent upon the quality of the search results.

Google "Co-Father" Passes Away

2009-06-08T09:53:00.000-07:00

In an unfortunate accident last week, Rajeev Motwani was found dead in his pool at his Atherton home. Rajeev is considered by many to be one of the co-fathers of google. While a professor of Computer Science at Standford University, Motwani was a heavy contributor to a well known paper on pagerank algorithm's, the basis of googles search technology. He is thought to be a co-father of google because he was one of the first investors of google and also sat on their board. He was also a vocal supporter and advisor of google in their early stages. He held quite the resume graduating from Berkeley with a PHD in Computer Science. Aside from google, he was also an early investor and backer of paypal and was a co-winner of the Godel Prize in 2001. The Godel prize is awarded to the most outstanding papers in the theoretical computer science field. This is a sad day as the world lost one of its most brilliant minds.

Student Loan Cancellation

2009-06-01T15:37:00.000-07:00

Under certain circumstances, the federal government can and will cancel all or part of an educational loan as part of a debt relief program. This practice is called Loan Forgiveness. There are several different fields or methods in which one can qualify. The first method is to volunteer. Americorps and Peace Corps are just a few of the organizations you can work with. The second freedom debt relief path is to work in certain fields. Military, teaching, legal, and medical are the most common fields, though there are others. Example, If you are a law enforcement officer and currently have federal student loans, you may be eligible for student loan cancellation. If you think you may be eligible for student loan forgiveness and have a Federal Perkins loan, contact your university or college as they hold the loan. They will let you know if you qualify for the debt relief program and freedom from the loans. Stafford loans are also eligible for the student loan forgiveness program. The Stafford loans are insured by the federal government, so you should contact the Department of Education to learn more about your situation.

Drag me to hell

2009-05-28T09:47:00.000-07:00

While driving to work this morning, I heard a promo for a movie coming out tomorrow called, "Drag me to Hell." As is evident by the title, this is a horror thriller movie. Here is the premise of the movie per the radio trailer. A woman banker who works for a lending institution has an elderly female client who needs and asks for an extension on her mortgage payment. The banker, knowing she is wrong, denies the elderly woman the extension in order to impress her boss. Because of this callous action, the elderly woman places a curse on the banker and the drama ensues. Though I am sure movie is scary, you kind of have to laugh at the premise in light of our current economic situation. Maybe the writer is making a social and political statement. If so, good for him.

Unemployment continues to rise

2009-05-27T09:55:00.000-07:00

Though some forecasters state the economy is going to turn around by the end of this year, the new unemployment data does not support this. In April, all but 6 states saw increases in the number of jobless claims with the national unemployment rate rising to 8.9%. This was up from 8.5% the prior month and 5.0% the previous year. My home state of CA had the largest net job loss of 63,700 jobs leading this statistic for the fifth straight month. California's unemployment rate for April is at a staggering 11.1%. Compounding the issue is the fact that 1 out of every 189 houses in CA received a foreclosure notice with 300k homes in preforclosure or foreclosure status, according to foreclosure.com. 6.7MM Americans are receiving some form of unemployment assistance. State unemployment funds are depleting fast with the states turning to the federal government for help. As bad as things are now, most analysts agree that unemployment will get worse before it gets better.

A few things to consider before filing for BK.

2009-05-22T09:48:00.000-07:00

Filing for BK is not the streamline process it was years ago. Due to the BK reform of 2005, a consumer now has to qualify for BK. The process may be as elaborate as assigning a trustor to view your debts and liabilities, taking a financial responsibility course, and paying attorney fees up to 5k. If there are assets available, these will most likely be liquidated to pay back the creditors before any debt absolving occurs. It is also important to consider the non-credit impacting consequences of a BK. A BK can go on a consumers personal record for up to 20 years. If you are considering a government, state, or fiduciary job this BK may hinder your chances of employment.

A day in the life of racism

2009-05-19T12:56:00.000-07:00

In the year 2009, racism still exists and anyone who disagrees may very well live in a hole. Working in a large corporate environment, I often walk by a hundred co-workers a day with whom I am very civil and they reciprocate with smiles and a hello. But then an uncalled for, racially insensitive incident occurs which makes me think about how genuine those smiles really are. Apologies and excuses aside, a person had to prepossess those feelings and thoughts which in itself is inexcusable. It is a deflating feeling when incidents like this occur, especially when they are made directly at your ethnicity. Very few will argue that racism is ignorance or hatred; maybe a combination of both. When living in a culturally diverse area, maybe the most culturally diverse area in the world, you slowly find yourself blending in unaware of the aesthetic differences you possess. It is funny how fast that mask is removed and feelings of self-consciousness return. The gamut of emotions you feel come fast and hard, beginning with anger and ending with disappointment. Having gone to college in the mid-west, I once became intimate with these emotions on a daily basis. Truth be told, I will forget about all of this a week from now and once again blend into the melting pot...........until it happens again.

Local train kills 3rd person in two weeks

2009-05-14T12:08:00.000-07:00

As is the norm monthly, I was delayed coming into work as police had cornered off a section where a pedestrian was struck by caltrain. This is the third person in two weeks and the umpteenth person since the beginning of the year. The reason has not yet been determined, but 99% of the time it is a suicide. I am not sure why, but this form of suicide seems to be trending up locally. I also notice that the majority of the accidents happen early in the morning. I am not sure why. Though this is a sad moment, I always try to take something positive from it. There is nothing more sobering than driving by and visibly viewing the scene of a death. It kind of gives you that "it is good to be alive" feeling. It also helps you to not sweat the small stuff, at least for that one day.

Online marketers showing strong signs in this market

2009-05-11T15:44:00.000-07:00

Par for the course, share holders for Bankrate (NASDAQ: RATE) saw another increase in profits for Q1 '09. This occurred despite the financial instability in the markets and problems in the online ad space. Revenues came to $38.3 million, down from $42.5 million in the same period a year ago. Net income was $4.7 million, or 25 cents per share. Again, this was down from $6.8 million, or 35 cents per share (in Q1 of 2008). Bankrate has not stopped ramping traffic. Revamping the website has not hurt the company either. Page views for Q1 were 199.5 million, which is a sequential increase of 21%. Some of the hot areas include refinancing, insurance and deposits. This clearly signals consumers are shopping for the best deals out there. This is evident as shown by the growth of Lending Tree (NASDAQ: TREE), which stock has doubled in value in the last month. A meaningful amount of the traffic was organic (such as through search engines and links). Organic traffic is an important part of growing revenue as it has zero cost -- which helps explain Bankrate's growth and meaty profits. Bankrate competes in the organic space with stronger URLs like Bills.com. Bills.com is a hybrid between a Bankrate.com and Lending Tree as it offers a ton of free information about financial services and products. As an ancillary tool, Bills.com will match consumers with lenders that fit the consumers needs best. Bills.com is not publicly traded.

What determines my credit score

2009-05-07T14:50:00.000-07:00

Your FICO, Fair Isaac Corporation, score is what many lenders look at to help determine eligibility for their product. Contrary to popular belief, your FICO is not just determined by whether or not you pay your bills on time. There are actually 5 factors that determine your score, each carrying different weight. First is your payment history which comprises about 35% of your score. Second is amount owed. Amount owed makes up 30% of your score. Next is length of credit history which makes up 15% of your score. Last are new credit and types of credit used which each comprise 10% of your score. So when you are trying to determine how to better your FICO score, it is important to look at all 5 factors.

Credit card reform may be on the way.

2009-05-04T15:22:00.000-07:00

As a society, Americans are pretty deep in credit card debt with the average American carrying 8k in cc debt and the average household carrying 12k in cc debt. The consumer unsecured debt market is in the trillions and growing. This is an obscene number if you consider credit cards were first introduced in the early 1950's. It is known that once you fall one payment behind, you are asking for big trouble. While the current recession has led to banks bringing in fewer dollars, it has also been a golden chance for them to be abusive to loyal customers. This is easily achieved as a small number of banks control the vast majority of credit cards essentially creating an oligopoly. Miss one payment and your interest rate will sky rocket not to mention the fees and penalties included. The higher the rates, the longer you are going to be in debt for the exact same amount of money that you already owed. Technically, all this information is disclosed in the 25 page brochure printed in 2 font attached to the card when delivered. I just received a new card that came with a novel attached regarding the disclosures. Are we really expected to read all of this? Another topic that is being discussed is the way payments are applied. In not all circumstances are payments set up so that they are applied to the highest interest balance. Of course, this once again results in debts having a longer life period. Obama is hoping to make sure this is changed as well.Possibly as early as next week there is going to be legislation hitting the house floor on a new bill that hopes to deal with these and other potentially abusive practices. As more and more Americans start to feel the pain of the current recession, it becomes even more vital we don't let more people get buried by their credit cards. Credit card companies should be helping their customers avoid getting in over their heads. The plan hopes to put limits on penalties and fees, and aims to give consumers the ability to demand limits lower than were initially offered to them. I hope many of these changes come to fruition. I will keep you posted.

Economy showing little to no sign of getting better

2009-04-29T12:07:00.000-07:00

It was reported that consumer confidence increased in the month of March giving some hope the recession may be easing. Unfortunately, other numbers are disputing this hope. The Gross Domestic Product, or total value of all good and values produced, dropped 6.1% this quarter following a 6.3% decline in the last quarter. Analysts had expected about a 4.5% drop.
Making matters worse, this is the first time since 1975 that we have had back-to-back-to-back declines. Exports also fell 30%, the biggest quarterly drop since 1969, and imports dropped 34.1%. Inventories decreased by $103.7 billion, compared to $25 billion last quarter.
The only small glimmer of hope was in consumer spending, which rose 2.2% compared with a 4.3% decline last quarter.
Federal spending eased this year by 4%. To cushion the blows the Federal Reserve is purchasing $1.25 trillion of mortgage debt and $300 billion of government debt. Also, housing values continued to decline.

What is credit card counseling?

2009-04-27T11:08:00.000-07:00

I am often asked about credit card counseling and what it does. Credit card counseling is a solution consumers may use for dealing with their unsecured debts. Essentially, credit card counseling will lower your interest rates if you currently have high interest rates. Creditors give concessions on their interest rates while keeping the principle balances the same. This allows the consumer to pay the debt off in a faster amount of time as they will not have to pay back the full amount of original interest charged. Most credit card counseling companies will report on your credit report. Lenders will be less likely to lend to a consumer in a credit card counseling program as the consumer is showing an inability to pay their debts back on their own. Most states requires credit card counseling companies to be non-profit licensed. This will limit the fees the company can charge the consumer. Aside from the monthly fee, most consumers are also charged a one-time upfront fee to enroll in the program. If you have a low debt amount and are concerned with your credit rating, this may be the best debt resolution program for you.

Not wanting to hurt your credit to get more credit

2009-04-23T12:10:00.000-07:00

As the economy continues to worsen, consumers continue to struggle with their finances. If you are struggling with your debts, there are several options for you..... but all will come at the cost of your credit. Too often I hear consumers say," I need help with my debts but don't want to hurt my credit." This makes no sense to me. Other than renting an apartment or getting a cell phone, credit is used to..... well, get more credit. If you are struggling to repay your current debtors, why would you want access to perpetuate your problem? If you are struggling with debts, take care of these debts first(even if it means hurting your credit), so you can become debt free. Only then can you look to the rebuilding your financial future and starting your financial freedom.

Borders changes board of directors in response to poor profits

2009-04-20T07:39:00.000-07:00

I walked into Borders the other day and thought I accidentally walked into a ghost town. The majority of the books were discounted. All CD's and DVD's were discounted heavily including all box sets. This was my third visit in the last month all with the same absenteeism of clients. So I was not shocked to hear Borders has recently decided to reduce and change the line-up for their board of directors. With a new CEO looking to bring the one-time book giant back to viability and a stock price hovering at less than than $2 -- but up big time from its 52-week low of 34 cents -- the company is revamping its board of directors in a big way.
The company is reducing its board of directors from 10 members to 8; Edna Medford and Michael Weiss will not be standing for reelection. The company was recently quoted as saying,"The company said that "Five of the remaining incumbent Directors -- Don Campbell, Joel Cohen, Amy Lane, Brian Light, and Larry Pollock --- will stand for re-election at the annual meeting, but have advised the Board of their intention to step down from the Board over the coming months as suitable replacements are found."
CEO Ron Marshall has already begun his financial reform plans by laying off 900 employees since the beginning of the year, and the company has also slashed debt and inventory as part of an effort to strengthen its balance sheet to increase the chances of holding up during a prolonged downturn.
So far the market has reacted extremely positively to Mr. Marshall's decisive action, and the stock is no longer trading like the company is on the brink of bankruptcy. The company also announced that it was canceling its plan for a reverse-stock split because the rise in stock price has no longer made it necessary. Long-term though, the company still appears to be at a huge competitive disadvantage in comparison to its better-financed competitors, such as Amazon.com, which continues to show growth in these trying times.

Debt Settlement and Debt Negotiation

2009-04-14T09:41:00.000-07:00

If you watch TV or listen to the radio, you have seen or heard a debt settlement or debt negotiation commercial. As the economy worsens these services have come to the forefront of the financial world. I have been asked by several people, "what exactly is this service?" Simply put, debt settlement is an aggressive way of dealing with a consumers unsecured debts. The debt settlement company will propose a lower payback to the creditor and that payback will be regarded as a payment in full. Debt settlement was designed for consumers facing a financial hardship who are either behind on their monthly payments or are going to fall behind. These programs will help the consumer save money on a monthly basis as well as lower their total payback. The program is not for everyone. A good company will qualify you prior to acceptance. If you are thinking of filing for BK or want to get freedom from your debt, check this option first.

3 Cheers for De Beers, or not.

2009-04-13T11:20:00.000-07:00

Controversial diamond cartel, De Beers, is being affected by the weakened economy with diamond prices falling by at least 30% and production cut by 40%.
After several mergers, DeBeers rose and formed ownership of all mining operations in the country. Then in 1889, Rhodes negotiated a strategic agreement with the London based Diamond Syndicate, which agreed to purchase a fixed quantity of diamonds at a fixed price and the DeBeers diamond monopoly was born. The monopoly existed well into the 1990's controlling the diamond market for this duration. They would control the supply of diamonds available which would manipulate the market prices. De Beers was often met with opposition to its working and treatment of miners. Several documentaries were made to expose the monopoly and their unsavory business practices. Things took a down turn in the 1990s when Russia, Canada, and Australia started distributing diamonds and competing with the De Beers and effectively ending their monopoly.
Because the diamond business is suffering its worst year in a generation, De Beers is reported to be suffering a cash hemorrhage. Their financial wounds were exposed in February when DeBeers accepted a $500 million dollar loan from its three shareholders -- Anglo American, South Africa's Oppenheimer family and the government of Botswana.
For the first time in its history, DeBeers faces a crisis without being able to control supply. The days of the DeBeers monopoly are history. This blogger and many others would agree that this is a long time coming.

Toys R Us reaching out to financially strapped consumers

2009-04-10T11:34:00.000-07:00

Toys "R" Us has rolled out shops in the front section of its U.S. stores, highlighting toys for $3 and under in a response to the recession.
They plan to offer about 100 toys all priced at $3 and lower.
The campaign is designed to entire more shoppers as sales fell 3 percent from the year past.
Compounding the problem of the recession, Toys R Us now also competes with thrift store Wal-Mart in the toy business.
Heading into 2009, toy makers have already geared up to cater to consumers' frugality. For instance, Mattel is selling $30 Elmo gloves and Hasbro has the $28 Lil' Patter Pup. Last year, Mattel promoted its $60 Elmo Live doll, while Hasbro focused on its $180 toy dog called Biscuit.
Toys "R" Us already sells toys at a variety of prices, such as a 4-pack of Play-Doh modeling compound for $2.50 and the Power Wheels Barbie Pink toy car for $380.
Putting cheaper toys in the front of its stores was a "natural extension" of its assortment, the retailer said.

Economy or Karma

2009-04-09T10:59:00.000-07:00

Controversial former pro athlete Lenny Dykstra has now been added to the riches to rags list. Dykstra has been the center of contraversy over the years as he was named in a sexual harrassment claim, alleged to speak offensensively about blacks, women, and gays, and was named in the Mitchell report as a steroid user. It was recently reported that Dykstra is facing foreclosure on his Thousand Oaks home. The house has been on the market for some time with little to no interest. Dykstra is reported to be $12 million in the hole for this house and Washington Mutual has begun the foreclosure process. He has already had a luxury boat repossessed. Ironically, Dykstra tried to start a magazine, the Players Club, aimed at helping professional atheletes manage their millions. He dropped about $3 million of his own money and enlisted the help of icons including Wayne Gretzky, Tim Brown, and Ron Darling. The magazine failed after its first publication. This is quite the fall, as Jim Cramer had once crowned Dykstra," One of the great ones in this business," referring to day trading. Very few will argue that he was a great baseball player on the field, but his actions off have been less than stellar. Is he the victim of a bad economy or bad karma?

I would will you my cellphone, but I am taking it with me

2009-04-07T08:58:00.000-07:00

I recently read an article that some people are mandating they be buried with their cell phones. Sound funny? Well, a British survey of 100k people concluded that cell phones were the second most desirable item people wanted to be buried with. It was not that surprising to me as I personally know people who are engaged with their phones all hours of the day. I think they actually may fall asleep with the phone in hand. Don't take these numbers too seriously as the article later went on to describe a woman who buried her husband with a cell phone, maintained the monthly plan, and inscribed the number on the headstone so people could call. If this a sign of the times? Are these economic times so rough that people are taking all the material items they own with them to their grave? Almost a middle finger being raised in the grave and the mentality of I bought these items with the little money I had and I am going to take it with me when I die? I think we are taking the value of our possessions a little too far. Besides, what would the environmentalists say?

Unemployment numbers getting worse

2009-04-02T09:39:00.000-07:00

According to the Labor Department, initial claims for state unemployment benefits rose to 12,000 in the past week. Last week's advance pushed the total number of claims to 669,000 which is the highest level since October 1982. The 669,000 claims are up 72% from the same period last year. The four-week average of initial claims increased 6,500 to 656,750, hitting its highest point since October 1982. For the week ending March 21, the number of people collecting state unemployment benefits increased 161,000 to 5.73 million. Not only is this level 96% higher than a year ago, but it is also a new record.
As disturbing as this trend is, I don't see it leveling off or decreasing anytime soon. Compounded with this problem, a report came out this morning stating that 1 in 10 Americans are receiving food stamps. Needless to say, the U.S. economy is in dire straits. Is there an end in sight?

The high price reward for ruining GM

2009-03-31T10:32:00.001-07:00

AIG executives have been all over the news for receiving bonuses in a company that almost went under. The criticism has been harsh, and rightly so in my opion. So why has there been little to no outcry over Richard Wagoner's, former CEO of GM, pension and pay? Wagoner was recently asked to leave GM by the Obama administration as part of the government bailout. The request makes perfect sense, right? As CEO, Wagoner presided over the destruction of one of the most powerful companies in the country. His decade long reign of GM resulted in shareholders losing money and the government stepping in to prevent bankruptcy. Well you can imagine my dismay when I read the following. Wagoner made $2.1 million his last year as CEO. He also left with a $20 million pension. I commend several of the high profile CEOs who are not taking salaries or bonuses until their companies turn around. Wagoner should take a page from their book.

The post office is on life support

2009-03-25T08:55:00.000-07:00

The United States Postal Service recently announced they will need government assistance to prevent from going under with the Postmaster General calling the situation "critical". A combination of a weak economy and the availability of e-statements have been the major contributor to this situation. I am torn between what solution is best. Environmentally, it would be better if all consumers moved to e-statements. The production and destruction of junk mail has a major impact on the environment. Also, about 50% of the mail delivered is junk mail. Without junk mail, the post office could not be profitable. Obvious solution, remove junk mail. Well, it is not that easy. The post office currently employees about 700k people. The junk mail industry employees about 10 million. In an environment where we are trying to create jobs, is it best to worsen this situation?

First-Time Home Buyer Tax Credit

2009-03-24T10:37:00.000-07:00

To help stimulate the economy, Congress has provided a tax credit for first time home buyers. The tax credit allowed is up to $8,000. As with everything, there are limitations and rules so check with your local lender for specifics. This credit is good until Dec. 1 of this year. As home prices continue to fall, now is a great time to purchase a home if you are able. The tax credit is great idea that will help facilitate new home buyer purchases. I have several friends who are looking to buy. They are on the fence because the cost barely fits their budget. This tax credit can help alleviate tight budgets. If you have more questions about the credit, check out http://www.federalhousingtaxcredit.com/.

What is up with the AIG bonuses?

2009-03-19T10:26:00.000-07:00

It has been a while since my last blog. I have been watching the AIG bonus debate and read the defense of both sides. Bottom line is the AIG executives are getting a bonus for failing; $165 million dollar bonus no less. Now I know there is some chatter that the bonuses will be returned or taxed at 90%, but that does not excuse the issue. I am struggling to understand the brazenness of someone who feels they are entitled to money, more so someone else's money, for almost driving a company into the ground. But then again, this type of greed and money mismanagement is largely the reason we are in this economic crisis.

To invest or not to invest in the current market

2009-03-11T12:14:00.000-07:00

I had a conversation with a friend about the state of the stock market and investing. We are both around 30 years old and are planning for the future. He informed me he was not investing any money in stocks. I told him that was a bad idea and here is why. First, I do feel terrible for people who are retired or planning on retiring in the next 5 years or so. The market crash directly affects their retirement and future plans. But if you are younger and not planning on retiring for 15+ years, the current market prices are a great opportunity. In my opinion, you should be buying as much stock in strong viable companies as possible. Because the confidence in the market is so poor, the stock prices are at an all time low. This lines up with economics 101, buy low and sell high. True, these stock prices may not rise for another 5-10 years but you won't need the money until after that period of time.

Credit Card Counseling

2009-03-09T09:54:00.000-07:00

What is debt settlement or debt negotiation

2009-03-04T13:35:00.000-08:00

If you watch TV or listen to the radio, you have seen or heard a debt settlement or debt negotiation commercial. As the economy worsens these services have come to the forefront of the financial world. I have been asked by several people, "what exactly is this service?" Simply put, debt settlement is an aggressive way of dealing with a consumers unsecured debts. The debt settlement company will propose a lower payback to the creditor and that payback will be regarded as a payment in full. Debt settlement was designed for consumers facing a financial hardship who are either behind on their monthly payments or are going to fall behind. These programs will help the consumer save money on a monthly basis as well as lower their total payback. The program is not for everyone. A good company will qualify you prior to acceptance. If you are thinking of filing for BK, you might want to look into this service first.

How do they determine my FICO score

2009-03-03T10:12:00.000-08:00

Before you file BK.....

2009-03-02T14:24:00.001-08:00

Status of a HELOC when losing a house in foreclosure

2009-02-27T10:34:00.000-08:00

A HELOC, or home equity line of credit, is a loan tied to the equity in your house which takes second position behind the first mortgage. As foreclosure rates continue to spike, many consumers are faced with not only losing their homes, but also the consequences of the outstanding balances. If you lose your house to foreclosure, the bank will sell the house in an auction. If there is a deficiency balance, difference between the remaining loan balance and what the house was sold for, the consumer is responsible for this amount. In this instance, the HELOC will automatically turn into an unsecured debt. If you are unable to continue making the monthly payments on this loan, it will be treated as an unsecured loan by the creditor.

Student Loan Cancellation For Law Enforcement Officers

2009-02-27T09:59:00.000-08:00

If you are a law enforcement officer and currently have federal student loans, you may be eligible for student loan cancellation. This program has related mostly to the Federal Perkins Loan program, but may extend into some Stafford loans as well. If you are a law enforcement officer and have a Federal Perkins loan, contact your university or college as they hold the loan. They will let you know if you qualify for the cancellation program. Stafford loans are less likely to cancel for law enforcement officers, but it may be worth inquiring. The Stafford loans are insured by the federal government, so you should contact the Department of Education to learn more about your situation.

Pump and dump scam

2009-02-26T15:09:00.000-08:00

If you have ever seen the movie Boiler Room you have seen a version of the pump and dump. Pump and dump scams usually deal with penny stocks. A penny stock is generally considered as a speculative security of a small company that trades over the counter and sells for under $5 per share. This is how the pump and dump scam works. A company's web site may feature positive press and advertising about its financial health or some new product or innovation. Newsletters, emails, and mailing correspondences are sent to disguise unbiased recommendations that tout the company as the latest "hot" stock. In some cases, you may even hear about the stock on the radio or TV. Investors then purchase the stock in massive quantities, creating high demand and driving up the price. But when the fraudsters behind the scheme sell their shares at the peak and stop hyping the stock, the price plummets, and investors lose their money. Many times, these companies do not even exist. They are just shells with little or no information about the company.

Student Loans: Private vs. Federal

2009-02-25T11:06:00.000-08:00

Federal student loans are government issued loans. These loans are not credit based but rather need based. You are allotted a maximum amount based on your year in school. The repayment on these loans does not begin until the student graduates or leaves school. Federal loans are subsidized and unsubsidized. This simply defines whether there is interest accruing while in school.
Private student loans are credit risk based loans. The lender will look at your credit and other variables to determine eligibility. In most cases, these loans will need to be taken out with a co-signer. Because these loans come with higher interest rates than federal, it is important to exhaust federal loans before looking into private. Most private loans begin accruing interest while in school.

401(K) vs. Roth IRA

2009-02-24T15:45:00.000-08:00

Tax filing assistance

2009-02-24T15:30:00.000-08:00

If you are struggling with your tax returns, you may want to check and see if there are free services that can help. Through a simple qualifying process, some lower income citizens may be eligible for free filing of their taxes. The programs are offered through charities such as the United Way, and are National IRS programs serviced by Certified IRS volunteers.

I need help with my debt, but don't want to hurt my credit.

2009-02-24T15:21:00.000-08:00

As the economy continues to worsen, consumers continue to struggle with their finances. If you are struggling with your debts, there are several options for you..... but all will come at the cost of your credit. Too often I hear consumers say," I need help with my debts but don't want to hurt my credit." This makes no sense. Other than renting an apartment or getting a cell phone, credit is used to..... well, get more credit. If you are struggling to repay your current debtors, why would you want access to perpetuate your problem? If you are struggling with debts, take care of these debts first(even if it means hurting your credit), so you can become debt free. Only then can you look to the rebuilding your financial future and starting your financial freedom.