During 1997 through 2006, mortgage lenders created a variety of no money down type programs and “loan to own” mortgages which eliminated the strict requirements previously needed to get a mortgage. Individuals did not have to prove their ability to repay the mortgage or have sizeable downpayments during this period, and lenders like Bank of America, Wells Fargo and Citigroup lent millions of mortgages to people they knew had little chance of fully repaying them.

The original mortgage lending practices are returning, where borrowers are required to come up with a 20% minimum down payment to qualify. To contract the difference, in 2006 the average home down payment was 4% of the purchase price, while in 2010, across nine major United States cities the median down payment was 22%.

Lower down payments make it possible for more homeowners to get into homes, but it leaves them with costly mortgages they can’t afford and results in high numbers of foreclosures. Even individuals who have managed to avoid foreclosures through mortgage refinancing programs offered recently are experiencing long term financial distress – since they owe so much more than their homes are worth in today’s market.

If borrowers can’t come up with 20% or more for a down payment, they can look at loans backed by the Federal Housing Administration (FHA). Currently, these loans require 3.5% at closing, but come with private mortgage insurance expenses and higher than average interest payments. While it offers the opportunity to get into a home, the monthly payments will be higher.

Resource:

http://www.housingpredictor.com/2011/banks-want-more-money.html

Bank of America (NYSE: BAC), Wells Fargo (NYSE: WFC), Citigroup (NYSE: C) Penalties Likely to End “No Money Down” Programs was created by and is property of American Consumer News.

In recent months, some of the largest US banks have been doing the best they can to reassure investors on their portfolios. They have taken the stance that their costs in association with faulty foreclosures are within their realm, and investors should not be concerned.

“I’m sure the banks are ready to put this past them and investors would certainly like to but this is not an issue that is going to go away,” Blake Howells, an analyst at Becker Capital Management Inc. in Portland, Oregon, said in an interview. “There will be more lawsuits that come down the road.” Becker Capital oversees $2.4 billion.

In all 50 states, attorney generals have been investigating foreclosure practices to determine if they were legit. The investigation came after allegations that banks were foreclosing and seizing homes without going through proper foreclosure procedures. Homes were found to have been foreclosed on without proper documentation to do so.

US regulators from the Dept of Housing and the Treasury Department may be imposing up to $20 billion in penalties to the banks that were found to have followed unlawful foreclosure procedures. To date, banks have still not been informed of whether or not they will be part of the fines.

Litigation costs are expected to be high for both Wells Fargo and Bank Of America. Wells Fargo is estimating on the high end that their costs could be upwards of $1.2 billion and that figure is above and beyond the amount that they already have set aside in reserves. Banks of America estimates that their losses could be even higher and expects that they will come in right around $1.5 billion.

Resource:

http://www.bloomberg.com/news/2011-02-26/bank-of-america-wells-fargo-see-fines-actions-on-foreclosures.html

Wells Fargo, (NYSE: WFC) Bank Of America (NYSE: BAC) and Others Expecting Fines On Foreclosures was created by and is property of American Consumer News.

The program, as described, will be set up to allow the bank to reduce the principal of mortgage holders if they face trouble. Payments may also be able to be extended and rates can be increased. The goal is to allow military members serving in active duty less worries about their homes when they are away from home. Military members will be encouraged to contact the bank as soon as concerns come about.

There have been several reported incidents where soldiers serving overseas had been working with Bank of America to meet mortgage payments but later on the bank ended up seeking back payments on amounts due or homeowners would have to face foreclosure. Time and again soldiers faced the task of calling and re-calling the bank but only wound up getting transferred from one unhelpful representative to the next. One soldier in such a quandary reached out to ABC network show Good Morning America for help when he couldn’t get the bank to assist him. GMA and ABC News contacted Bank of America who eventually fixed the error with the soldier’s mortgage arrangement.

The soldier stories struck a cord with the bank who then decided to launch the program to help other soldiers facing the same problems meeting their mortgage payments. The bank feels it is their obligation to defend the homes of those defending the homeland.

Bank of America (NYSE: BAC) Announces Military Homeowner Help was created by and is property of American Consumer News.

The case involved was against Recon Trust Company NA, a subsidiary of Bank Of America. Suzanne A. North, has taken suit against the bank, stating that Recon Trust fraudulently tried to foreclose on her home.

Bank of America is fighting to overturn the injunction and says that they along with Recon Trust were within the perimeters of the laws in Nevada that pertain to foreclosures and that the borrower’s case does not have a chance.

Bank of America is also taking a strong stance and arguing that the halting of foreclosures in Nevada and across the country is ultimately harming local citizens and the public interest. They used a quote from Timothy Geithner, the US Treasury Secretary as a means to help support their case:

“Treasury Secretary Tim Geithner opined that ceasing the foreclosure process is `very damaging’ and harms the public as communities are forced to live longer with empty homes, there is increased downward pressure on home prices and increasing blight,” the bank said. “The order also harms those subject to the foreclosure process because those individuals, especially those in mediation trying to stay in their homes, are now forced into a state of limbo for an unspecified duration.”

Fighting back, north’s attorney does not plan to back down and has said that if necessary he will find others and seek class action status for the suit. This is not good news for the mortgage companies.

This Nevada case follows a similar one earlier this month in Massachusetts where the Supreme Court there voided two foreclosures when the banks were unable to come up with the proper documentation to prove that they actually owned the loans that were foreclosed on. This is a precedent that has opened up scrutiny for foreclosures across the country.

Reference:

http://voices.washingtonpost.com/political-economy/2011/01/bank_of_america_seeks_to_overt.html#more

Bank Of America (NYSE: BAC) Planning To Appeal Nevada Judge’s Order Halting 8,900 Foreclosures In The State was created by and is property of American Consumer News.

The state Supreme Judicial Court has upheld a judge’s decision that two foreclosures were not valid since the banks could not reasonable proved they owned the mortgages. The reason was due to the inappropriate transferring of mortgages into mortgage-backed trusts.

Wells Fargo, the fourth largest bank in the US according to assets saw stocks drop as a result of the ruling. Such cases of bank and loan issues led to a nationwide investigation of foreclosures during the collapse of the housing market. The investigation was started after JPMorgan Chase & Co and Ally Financial Inc stated they would cease foreclosure repossessions in 23 states that have court supervision of home seizures. Bank of America also began freezing foreclosures in the US.

The updated decision follows one made by Judge Keith C Long, Massachusetts Land Court Judgge, who voided the foreclosures in March 2009. Judge Long found that the transfers of mortgages were done months after the house sales. Long refused to bank’s request to reverse his initial ruling in October 2009 after the banks fought back with documents showed the mortgages hand transferred back to them.

In light of the decision, it is expected that securitization documents be required to show the proper transferring of mortgages. There will need to be a process and documentation offering proof that assignments were made by a party that held the mortgage.

Neither US Bancorp or Wells Fargo representatives have commented on the judge’s decision in the Massachusetts case.

Wells Fargo (NYSE: WFC), US Bancorp (NYSE: USB) Loses Big-Time Foreclosure Case in Massachusetts was created by and is property of American Consumer News.

Like other lenders, Wells Fargo failed to set systems in place that would ensure all paperwork was thoroughly checked. The company joins many others in the industry with paperwork errors that prevent forced sales of mortgaged property going ahead.

Wells Fargo is one of America’s biggest mortgage lenders and the failure to have all paper work checked is a serious anomaly. The company at present is preparing around 55,000 foreclosures in 23 states. It promises to fix the mistakes associated with these foreclosures.

The bank announced that the paperwork errors related to the ‘final step’ of filing. Foreclosure papers included final reviews and notarizations of documents. Plans are for the documents in question to be resubmitted in November 2010.

The mistakes, the company claims, are technical and will not stop the foreclosure process from continuing. In a statement, Wells Fargo says it doesn’t, “believe that any of these instances led to foreclosures which should not have otherwise occurred.”

John Stumpf, CEO of Wells Fargo, claims the bank is “confident that our practices, procedures and documentation” are accurate. No one at Wells Fargo would comment whether the bank had used ‘robo-signers’. Robo-signers signed an enormous number of legal documents without checking for errors.

Wells Fargo now has to now deal with slowing of foreclosures, lawsuits brought by homeowners and legal strategies developed by mortgage investors in the hope of getting their investments back.

David Grais, an attorney representing mortgage investors said, “None of these avenues of litigation is for either the faint of heart or for those with short attention spans.”

It will not be easy for investors to prove that any bank did not act in the best interest of their customers.

Wells Fargo spokeswoman, Terri Schrettenbrunner, who would not discuss the type of errors Wells Fargo was dealing with, said, “We found human errors, and we are fixing those errors,”

Wells Fargo has had two of their employees question their foreclosure procedures. One of whom claimed she signed around 300 to 400 foreclosure documents on a daily basis.

The issue of paper work and legal procedures and how they were handled in hundreds of thousands of situations is being investigated by attorney generals in each of the 50 states.

Wells Fargo (NYSE: WFC) Foreclosure Paperwork Also Flawed was created by and is property of American Consumer News.

Citigroup mortgage customers are still facing foreclosures due to the inability to make monthly mortgage payments. This is largely due to the unemployment rates that have affected a family’s ability to keep steady income. Even when modifications are in place, homeowners still can’t keep up with payments regularly. This results in customers having their Make Home Affordable modifications cancelled.

Now Citigroup is offering additional options for those homeowners that can not meet the requirements as set up by Obama’s Make Home Affordable program. Additional modification programs are being created in-house to help homeowners. Throughout the month of August, more than 35,000 borrowers were given access to the alternative modification programs offered through Citigroup.

Other homeowners who are still in need of assistance with their mortgage payments are finding relief through another program called the Home Affordable Unemployment Program. This program is set to helping people who are without a job. The program helps initiate a forbearance status on mortgage payments until the time they can make other modification arrangements when they secure a steady income source.

Homeowners who have loans with Citigroup are encouraged to contact the bank as soon as they realize they will have trouble meeting mortgage payment obligations to see what options can be afforded before the mortgage loan goes into default and foreclosure status.

Citigroup (NYSE: C) Goes Outside HAMP to Offer Loan Modifications was created by and is property of American Consumer News.

The Bank of America (NYSE: BAC) joins JP Morgan Chase and Citigroup, who have reviewed their mortgage lending policies. The fallout from ill advised mortgages, especially those set up by brokers, has resulted in multitude buyback requests, law suits and fraud accusations against banks.

Barbara Desoer, head of Bank of America’s mortgage division, said in a statement, “By exiting the first mortgage wholesale channel, we can direct critical operational resources to further enhance our capabilities in direct-to-consumer channels. This is an investment in strengthening our competitive position.”

Large servicers like Bank of America, are also receiving pushback from owners, investors and regulators due to mistakes in loan setup procedures. Paperwork errors have led to a raft of litigation. Fannie Mae, Freddie Mac, JP Morgan, GMAC Mortgage have pushed back loans to servicers over the past year.

Bank of America halted foreclosures in dozens of states over the weekend because of the litigation associated with paperwork errors. JP Morgan and GMAC Mortgage did the same.

Large lenders including Citi, U.S Bancorp, HSBC and PNC Financial Services are reportedly scrutinizing their foreclosures at the regulator’s request.

Central to the banks’ buyback mortgage problem, is the so-called “originate to sell” model. Mortgage originators took no responsibility after loans were in place. As many loans as possible were pushed through without the paperwork being checked. Investors in mortgages have used paperwork errors as a reason why service providers must buy back debt.

Foreclosures are not happening due to the equally hasty and sloppy default servicing model. Banks employed thousands of employees who were inadequately trained, to move borrowers through the loan application process.

Executives had not scrutinized the information in mortgage documents due to the overwhelming number of applications. Homeowners are now contesting the seizure of their homes in court, saying banks have seized homes improperly.

There is now only one major money-center bank, the San Francisco-based Wells Fargo, which is continuing with foreclosure proceedings.

Bank of America (NYSE: BAC) Drops Mortgage Brokers was created by and is property of American Consumer News.

Lenders across the board said trial modification have been cancelled because homeowners are not fulfilling the requirements of the Make Home Affordable program. Many homeowners are missing required documentation and paperwork or they can simply not afford to make a payment on their mortgage even with the modification assistance. Some homeowners have been canceled because of their debt to income ratios. Even with the modification assistance, borrowers are still defaulting on loans.

JP Morgan Chase representatives said that homeowners who have had their trial modifications canceled can still see alternative help to stay in their homes and bypass foreclosures. Of the 58,605 homeowners who had their modifications canceled with JP Morgan in May of this year, 31,973 alternative resources were offered to borrowers.

Customers allege after having their trial modifications cancelled, they were not always given an alternative resource for finding a more affordable mortgage payment.  Many eventually had to short sale their homes to avoid foreclosure and hundreds of others filed for bankruptcy protection.

Across the board, those participating in the Make Home Affordable program feel they have been fighting an uphill battle to stay in their homes. Consumers feel like there are too many strict terms for qualification and too little resources for help in getting a more affordable payment. But lenders tend to disagree, citing that the main reason homeowners don’t qualify for help is because they can not afford the home regardless of the assistance program.

Home Loan Modification Cancelled for Some JP Morgan Chase (NYSE: JPM) Customers was created by and is property of American Consumer News.

DFS claims they invested almost $2 million of its own funds in preparation for providing services to the foreclosed properties on Bank of America’s list. The lawsuit also outlines the damage to the DFS reputation when the bank provided them with incorrect information to enter homes said to be in foreclosure but were actually properties that had been resold and currently occupied by the new owners. The bank is said to have pointed the finger at DFS for the mistakes and in turn, stopped future work orders with the company. DFS had to lay off most of its staff, including more than 300 field workers. Diversified Field Solutions has been devastated by the profit loss and Bank of America’s failure to follow through with its obligations.

“At all times DFS acted in good faith to meet its contractual obligations with BAC in a timely and professional manner,” said Senior Vice President of DFS Taymor Niazi. “Banks are required by law to prevent foreclosed homes from becoming blights to their communities. They hire small companies like ours to do the actual work needed to comply with this requirement. But in doing so, BAC has ignored the terms of its own contract to the detriment of our business and workers.”

The lawsuit was filed Monday in California by DFS lawyers Burkhalter Kessler Goodman & George. In a press release Eric Goodman, a partner with BKGG stated “Homeowners are not the only victims of this crisis; it extends to firms like DFS and onward to the mom-and-pop businesses who actually mow the lawns and clean the countless homes that now sit empty.”

Bank of America (NYSE: BAC) Sued Over Foreclosure Work was created by and is property of American Consumer News.

The amendment was presented by Democratic Leader Harry Reid of Nevada and accepted in a 60-37 vote that will extend the closing deadline to September 30. This extension is only good for first-time homebuyers who had a contract signed and in place before the original April 30 deadline. The deadline before the extension was June 30 in order to qualify for the $8000 tax credit. Existing homeowners who are purchasing a new residence are eligible for a tax credit of $6500. It is estimated that more than 180,000 homebuyers had contracts signed in time but would have missed out on the credit because they did not close by the June deadline.

Because there was not an extension granted for the original contract period past April 30th, there is not impact on new home sales expected. Homebuyers need to already have their contract completed. When the initial tax credit was issued, settlement offices where flooded with closing appointments by buyers who were anxious to beat the deadline in order to qualify for the tax break. There are no current plans for the government to restart the Homebuyer Tax Credit. The initial credit allowed the market to rebound and the government now has other issues that have become the focal point.

The tax extension was part of an amendment to a bill that also extended unemployment insurance benefits for individuals without jobs through the end of November.  Additionally, the bill extended some of the popular business tax breaks being offered. Reid is about to face a difficult re-election campaign and Nevada is currently holds the record in the nation for the highest foreclosure rates.

US Home Tax Credit Deadline Extended was created by and is property of American Consumer News.

This program has been delayed for months, but once Citigroup (NYSE: C) came on board with the plan to reduce second mortgages for troubled borrowers, Bank of America (NYSE: BAC), Wells Fargo (NYSE: WFC) and JPMorgan Chase (NYSE: JPM) followed.
With nearly one in three homeowners currently underwater on their mortgages (according to Moody’s Economy.com), this program is long overdue, many critics believe. Home foreclosures have increased despite the Obama administration’s effort to prevent them. Previous attempts to reduce the number of foreclosures is a problem plagued by more than 100 different mortgage companies. The existing efforts saw 1.1 million homeowners applying for modification programs and assistance to keep their homes, but only 170,000 homeowners have been able to complete the process.

“We remain dubious about government mortgage modification efforts,” wrote Jaret Seiberg, an analyst with Concept Capital’s Washington Research Group. “So far none have lived up to expectations and we see little reason to believe the latest effort will turn out any different.”

This new mortgage loan forgiveness plan under the Obama Administration requires the mortgage companies participating to slash the amount of principal the borrowers owe, or eliminating second mortgages like home equity loans that have blocked many loan modification options for borrowers previously – in exchange for incentive payments from the government. Now that the big four players in the mortgage industry are on board, Citigroup, Bank of America, Wells Fargo and JPMorgan Chase – many people have greater hope for it’s success.

Citigroup (NYSE: C), Bank of America (NYSE: BAC), Wells Fargo (NYSE: WFC) and JPMorgan Chase (NYSE: JPM) Join the Obama Administration to Reduce Second Mortgage Balances was created by and is property of American Consumer News.

Bank of America had ordered Snyder Property Services to ‘enter, seize, padlock’, ‘winterize’, and ‘take possession’ of the woman’s home because they believed it to be in default. The property service followed instructions and turned off the water, cut the power, and filled the drains with antifreeze. After the home was taken care of, the woman’s parrot was then taken from the home.

The woman, Angela Iannelli of Pittsburgh, arrived back at her home and found new locks on the doors, furniture and carpets that had been damaged, and her belongings strewn about. Most devastating, the parrot was gone. The plaintiff had been making her mortgage payments on time but contacted Bank of American, who did confirm the seizure of the home. They also admitted to knowing where the bird was located. The plaintiff states in her lawsuit that she continued to call to claim her bird but Bank of American told her to stop calling and hung up on her because they were ‘tired of hearing from her’.

It took a week before Bank of American would confess to making a mistake about seizing the wrong house. They also admitted the location of the bird, a three hour drive away which the plaintiff made to get the bird back.

In the lawsuit, the woman alleges that Bank of America was knowingly deceptive and does not have policies to prove foreclosure validity or to stop a wrong seizure from occurring. The plaintiff said that Bank of America did try to make offers to repair her damaged belongings once she obtained the services of a lawyer. Spokespeople for Bank of America declined to comment on the Allegheny County lawsuit.

This isn’t the first time Bank of America has foreclosed on the wrong house. There are several other lawsuits in other cities that allege improper foreclosures. In one such case, the contractor hired by Bank of America had the wrong address. In most other cases, the foreclosure mistakes were seemingly avoidable.

Bank of America Hijacks Parrot, Forecloses Wrong House was created by and is property of American Consumer News.

But now, renters who are facing evictions due to their landlord’s inability to pay a mortgage, have some rights. If you are renting, what you don’t know can hurt you so pay attention to the following tips if you  should ever find yourself in the unfortunate position of eviction due to foreclosure. In May 2009, President Obama signed into law a national standard for tenants facing foreclosure. Here are some details of that law:

• If you have a valid lease, you can not be forced to leave the property when it is in foreclosure until the lease officially expires. The only exception is if the property is purchased and the new owner plans to move into the property before the lease expires. In this case, the lease will be terminated on the sale dates and the tenants must receive 90 days notice of the intention to move in by the new owners.

• If you lease is to expire in less than 90 days after the property is sold, you still have the full 90 day time period to leave the property.

• If you are renting without a lease, there will still need to be a 90 day notice given to you as the tenant.

• If the state you live in has a law that require notice time longer than 90 days or other amounts of protection for tenant of rentals, it essentially overrides the federal law. Take the time to understand the individual laws in your state and how they apply to your situation. For more information, contact the tenant organization in your area if one is available.

• If you reside in Section 8 or other subsidized housing programs, the new law still applies to you. Do not allow anyone to try and tell you different. You can contact local tenant organizations or an attorney in your area for further advice.

• As a tenant, you still have an obligation to pay the rent in full until you vacate the property. If ownership changes before you leave, be sure you are paying rent directly to the new owner. Not paying rent, regardless of foreclosure circumstances, opens the door for you to be legally evicted.

• Make sure the new owner, even if it is a bank, keeps up with regular maintenance and repairs per your lease agreement. If there is nothing being done, keep making phone calls and written contact to insist on the property maintenance.

• When you plan to move out, make sure you receive your security deposit back, if applicable.

Your Rights When Your Rental Is In Foreclosure was created by and is property of American Consumer News.

The Department of Treasury’s website also mentions that the Home Affordable Refinance program will be available to 4-5 million homeowners who have shown a solid payment history on existing Fannie Mae or Freddie Mac mortgages. The program may make many of them eligible to refinance their loan to take advantage of today’s lower rates for mortgages or to refinance an adjustable-rate mortgage into a more stable 30-year fixed rate mortgage. The plan will also help 3-4 million homeowners who are at risk to avoid foreclosure proceedings and reduce their monthly mortgage payments.
Hardship Assistance

If you are a homeowner who is finding it hard to make your mortgage payments on time, you should check out the program. If you want to know if you qualify to participate in this program, you can check out the Department of Treasury’s website, FinancialStability.gov and find out more information about the program. The website provides a tool for self-assessment of your situation. There are also guidelines and other information to get you started and show you how the program may work for you.
Proceed Cautiously With Other Programs

Be aware that in light of the new plan for homeowners, there are also counterfeit programs that have already been established to scam you out of money. Remember that the Making Home Affordable Program is free and if you encounter a website that is advertising foreclosure relief programs, be cautious. You can easily lose big-time money by dealing with a scam group, which will cause you further financial problems. Do not send money to any person who is charging a fee for housing counseling. In addition to the Home Affordable plan, any counseling performed by HUD-approved counselors is also free. Do not make mortgage payments to anyone other than your direct lender. Never sign over the deed to your home to anyone, regardless of the situation you are in or what promises that person makes to you regarding your home. While it may seem obvious that you don’t involve yourself in such things, there are many people who are in financial dire straits who are willing to do just about anything to save their homes.

Homeowner Affordability and Stability Plan and What It Could Mean for You was created by and is property of American Consumer News.

It seems that homeowners who live in the houses where they pay a mortgage are working hard and budgeting their monies to make the monthly mortgage payments. On the other hand, the same can not be said of those people who take risks by investing in properties and commercial real estate.

Paying a mortgage is for many a top priority in the order of debt. It may even be possible to pay a mortgage off early, especially in light of the fact that many people are learning better money management.

Here are some tips to help you keep up with your monthly mortgage obligation and even make the effort to pay it off earlier that expected.

Early is Good But Only if You Can

There is no point in adding extra money to your monthly payments on your mortgage each month if it is going to put you in the hole in other areas of your life. If there are times when you have a little flexibility, any extra money will go towards the principle which will help you to pay off your mortgage faster and reduce the amount of interest you have to pay back.

Prioritize Other Debt

While mortgages are a priority, other bills should be too – namely credit card debt. Interest rates on the cards will no doubt be much higher than the rates on your mortgage. Use extra cash to pay down credit card bills and don’t even think about adding extra to your mortgage until your credit card balances are eliminated. If you have a high amount of credit card debt, consider trying to Apply for credit card with a lower interest rate, sometimes a Small business credit card will have lower interest rates, so check those out too.

Consider Tax Implications

Mortgage holders get tax deductions for the interest they pay on mortgages. By paying off a mortgage early, you will no longer be able to use that deduction to your advantage.

Do the Math

There are plenty of online calculators to help you figure out the extra amount of money you can add to the mortgage payment each month if you set a specific goal for an early payoff.

Conservative Homeowners Are Not the Main Factor in Foreclosure Problems was created by and is property of American Consumer News.

There are several things to think about before signing a commitment with a realtor. Going with the wrong person or company can end up costing you more money that you ever anticipated. Selecting a realtor will require a little work on your part. It may be necessary to essentially interview several before making a final decision.

Here are some things to look for in a realtor:

Reputation – If you live in a smaller community, it may be a little more cut and dry to evaluate a company on personal reputation. You may have family, friends, or business associates that can recommend someone that is good. You may also have the advantage of knowing who to avoid.

Exposure – If you live in a larger area that may have access to many realty companies, you may have to base your choice on advertising. There may be certain companies that are all over the television, radio, or billboards but it doesn’t mean they are the best. Pick two that are very high profile and two from the phone book and compare them before making a decision. Those companies who can afford large scale advertising may be able to bring more attention to your home quickly with the right resources.

Operation – Evaluate how much commission the realtor will take after the sale. Typically, the realtor is looking for 6-7% of the sale but it may be worth your while to negotiate one or two points lower in order to get more money back in your own pocket. If you must also find a realtor to help get you in a new home, find out if the realtor will give up some more of their commission if you agree to use them to buy a home as well as sell one.

Track Record – Do not be afraid to ask for their statistics. Find out how many homes they have sold that is similar to yours. Ask if they specialize in a certain price range that is similar to yours. Inquire about the amount of homes the realtor currently has under contract at the time.

References – You should also not be afraid to ask for referral names and then make sure you check a few of them out. Check out the realtor’s membership with the local and national realtor associations.

Overall, you want to have a great working relationship with your realtor and personality does matter. Signing a contract will commit you to working with that person or company many times until the house is sold. Read all contracts thoroughly before signing anything and make sure there is a stipulation that allows you to cancel in the event you are not happy with their efforts after a certain period of time. Do not get suckered in to a long term contract and opt for a 3-6 month initial time period. If the realtor will not allow such negotiations, you may want to reconsider your commitment. While it is okay to get some advice on selling your home and setting the price, ultimately the decision should be yours and your realtor should not force you into anything.

5 Things to Look for in a Realtor was created by and is property of American Consumer News.

For the last five years or so, many of the nation’s major banks and financial institutions have been originating all sorts of non-traditional mortgages such as interest only loans, adjustable rate mortgages, mortgages with balloons, fifty year mortgages, and a whole slew of other financial products that no consumer should ever buy. Unsurprisingly, many consumers could not continue to afford their mortgages as they adjusted upward and the home-buying market is very weak right now, leading to all sorts of delinquencies and foreclosures and now it’s starting to catch up with Bank of America and E*Trade.

All sorts of rumors are flying about a potential bankruptcy over at E*Trade. Said rumors actually dropped their stock price by 60% after the news hit. After news of a potential buyout or takeover hit, it rebounded slightly. Unfortunately there are 60,000 individuals who will be out of luck if E*Trade were to file bankruptcy. These people have more than $100,000 invested into FDIC insured accounts through E*Trade and would be out of a lot of money if the company were to go bankrupt. If you fit into this category, drop your savings inside of E*Trade to less than $100,000, that way you won’t lose your money if the bank goes under.

The exotic mortgages that Bank of America were giving out are starting to catch up with them as well. The financial institution had to provide $600 million dollars to avoid having the share-price of their money market funds dip below $1.00. Traditionally money markets are designed to keep at exactly a price of $1.00 per share, and it’s considered very bad if the price ever drops below that. Bank of America had used money from their investors in money market funds and invested that money by loaning it out to people in all sorts of exotic mortgages. When the real estate market collapsed in on itself, the price was dangerously close to “breaking the buck.” BOA did the smart thing to replenish its money market fund, because if the share price had dropped below $1.00, most investors most likely would have taken their money elsewhere.

Banks made a major mistake by offering mortgages to people who cannot afford to pay them back. One of the major financial magazine’s covers this week features a number of major bank presidents and the headline, “What Were They Smoking?” in regards to the sub-prime mortgage mess. Chances are we will see other banks hit hard times because of woes in the real estate market. Make sure that your money is at a solid and performing bank and that you do not have more than $100,000 at any particular financial institution.

E*Trade and Bank of America Get What’s Coming to Them for Offering Exotic Mortgages was created by and is property of American Consumer News.