A global travel alert has been issued for US Citizens abroad.

A global travel alert has been issued for all Americans traveling abroad. I have no doubt that these sick bastards who call themselves men of God are now going to do everything they can to 'avenge' the death of their fearless leader. I say, bring it on you peaces of garbage. Expect 1000 of you to be visiting your 70 virgins for every American harmed by your insanity.

In honor of CHRISTINA

I want to blow the servers at my sister-in-law's 9/11 memorial site. Please visit and submit a comment. I would appreciate it! http://christinasgift.com/'


Anthony

Statement from George W. Bush regarding Osama death.

https://www.facebook.com/#!/notes/george-w-bush/statement-by-president-george-w-bush/219390698087905

Security being increased around the world because of Osama's death at US hands.

Authorities around the world are being told to take security precautions immediately due to the death of Osama bin ladin at the hands of US military personal. Alerts have gone out to every major country to beef up security at airports, government buildings and military installations. Military personnel are being told to take extra caution due to possible actions taken against them by fanatic extremists.

Thanks for visiting my LiveSpot Blog!

Featuring tips and new developments in banking, real estate, taxation and finance that affect your wallet.

OSAMA BIN LADIN BREAKING NEWS

Just heard that Osama was killed while living in a mansion in Islamabad, Pakistan. Familial DNA was used to identify this piece of human garbage. His body is in our possession. Being killed in Pakistan is not going to be good news for the Pakistan Government. Intelligence has been in place with DNA evidence for years in case he was found and needed to be identified.

OSAMA BIN LADIN DEAD

Thank God we finally got this bastard! My sister-in-law, Christina Donovan Flannery (http://christinasgift.com) cousin David Fontana (Firefighter), several friends, and the thousands of others can now rest in peace.

Waiting on the official President announcement. Seems he was killed in a US air strike 10 days ago, and they wanted to use DNA analysis to make sure that it was indeed him.

Great news. Thank God for our awesome military.

FED Rules on Debit Card Fee Reductions Delayed

Power to the people.

It seems that because so many people commented on the upcoming Federal Reserve Bank’s controversial proposal to reduce bank debit card “interchange fees”, the Fed will not be able to meet its April 21 deadline for issuing the new rules that would cap the debit card processing fees bank charge to retailers.

FED Chairman Bernanke reported today that over 11,000 people weighed in on the proposed rules. He wants to use those comments for determining the effects of the rule.

I’m amazed quite frankly. A bureaucrat that actually decided to listen to those of us who have some skin in the game.

I have been writing about this subject for the past month or so. I know that the proposed rules are supposed to benefit the consumer. The new rules require the banks lower their interchange fees to 12% of the transaction amount. Naturally one would assume that the reduction will be immediately passed to the final consumer. This is NOT the case. The merchants are under no such requirement, and in fact will enjoy a $ 12 billion dollar windfall. The banks, bless there little souls, will simply recoup their lost profits by doing several things such as increase bank deposit requirements, increase interest rates on credit cards, charge for DEBIT card usage which is something JP Morgan Chase is contemplating, or reduce the maximum allowed per transaction to $ 50 -$100 which is also something Chase is doing. Banks are also eliminating rewards points. Wells Fargo has already done that so you can expect the other boys to follow suit.



I will say it again and again. I wish the Federal Government would get its hands out of the process of trying to pick winners and losers in the economy. Let us decide what business we will patronize, where we will spend our money. Get out of our way and let us do our thing.

I'd love to hear your comments on this. Please feel free to do so here.

10 Notorious Instances of Foreclosure Fraud

I came across a great article on the dangers of foreclosure fraud and what to look for. Matt Cunningham does a great job how to avoid being scammed you are someone you know is having issues paying their mortgage.

The economic downturn and housing crash in 2008 has created a huge number of homes that are in arrears, and many in actual foreclosure. This has brought out the vultures who pray upon desperate people seeking a solution to their problems.

It wasn't long ago that real estate investment truly seemed like a golden ticket. Housing prices skyrocketed as low interest rates and generous financing requirements encouraged more people than ever to venture into home ownership.

As Matt mentions in his article "The foreclosure process is long, stressful and complicated, and it comes with an added risk: Con artists and scammers have come up with a variety of fraud schemes that target those involved in foreclosure"

For 10 sad examples of foreclosure fraud visit http://tinyurl.com/foreclosureFraudCases


Join me at LiveSpot.com for your free Livespot Membership before your name is claimed!

SOME GOOD NEWS FOR HOMEOWNERS UPSIDE DOWN ON THEIR MORTGAGES

If you are one of millions of home owners who’s either behind on a mortgage, or who has a mortgage that is more than the value of the home, there are two federal programs that you may be eligible for that can help you keep your home and reduce your payments. Also, one of the largest banks has set up a special program for its borrowers.

A new program created by the Federal Housing Administration (FHA) requires lenders to reduce the principal by at least 10% for qualified borrowers. You can qualify for the FHA principal reduction program if you are current on your payments and the loan was acquired from a failed bank seized by the FDIC. Not always easy hurdles to reach. One thing I like about this program is you are not required to have an FHA loan. Loans can be as high as 115% of the value! The bank is required to grant a principal reduction that brings the new FHA loan’s LTV to 97.5%. In addition, it must make the new payments account for 31% of the borrower’s gross monthly income including second lien mortgages.

The Federal Government’s Home Affordable Refinance Program, or HARP has been extended for one year. This program was set to expire on June 30th. Fannie Mae and Freddie Mac will continue to refinance qualifying borrowers who have lost equity in their home without requiring additional mortgage insurance. Freddie Mac will exempt any refinancing from recently announced price increases, according to the Federal Housing Finance Agency in announcing the one-year extension. In addition, Fannie Mae is extending its previous Jan. 1, 2009, eligibility date by five months and will now consider HARP refinancings of loans made on or before May 31, 2009.

Only borrowers who are current on mortgages that are already owned or guaranteed by Fannie Mae and Freddie Mac are eligible for the program. Although loans of up to 125 percent of a home's current market value are eligible, the vast majority of loans refinanced to date under HARP have had loan-to-value ratios of 105 percent or less. Visit the following links to see if your mortgage falls under Fannie or Freddie. http://www.makinghomeaffordable.gov/programs/lower-rates/Pages/harp.aspx http://www.makinghomeaffordable.gov/get-assistance/loan-look-up/Pages/default.aspx

Another program has been initiated by one of the major private players.
On June 2, Bank of America began its new mortgage program for eligible underwater borrowers which includes an earned principal forgiveness in a loan modification. Bank of America mailed out an initial round of letters notifying customers who may qualify. Upon review of these customer applications, the first trial offers for the program could find their way to distressed borrowers as early as the second half of June. If you are a BOA client, but did not receive a letter, I suggest that you reach out to them to see if you can be qualified for it.

For qualifying borrowers, the bank will employ a principal reduction as the first step toward reaching The Home Affordable Modification Program’s (HAMP) affordable payment target of 31 percent of household income, ahead of lowering the interest rate and extending the term. The reduced principal balance will be a non-interest bearing forbearance amount and the homeowner may earn forgiveness of the forborne amount by remaining in good standing on payments for several years.

To be eligible for principal forgiveness under the Bank of America plan, the amount of principal owed must exceed the current property value by at least 20 percent and the loan must be at least 60 days past due. In addition, the loan must have been originated by Countrywide before January 1, 2009.

Getting Your Offer Accepted by a Seller

I found a great article here at10 Ways To Get Your Offer to Purchase a Home Accepted written by CJ Brasiel, a residential real estate specialist from specialize in residential real estate in the South Bay area of California. The article is relevant in any market and I wanted to share it with you. CJ does a great job in what one needs to do to get your offer accepted by hesitant home sellers.

I'd love your comments, so feel free to do so!

Anthony

News Update: Mortgage Regulation Changes Will Affect Everyone

Later this month, the Federal Deposit Insurance Corp. will consider new rules that define what a safe or “qualified” residential mortgage is as part of the Dodd-Frank financial overhaul law. Experts say the classification will likely have broad sweeping effects on the mortgage market..

The Dodd-Frank financial "overhaul law", another congressional mess which was passed last summer, contains a risk-retention requirement that requires issuers of securities backed by mortgages and other assets to maintain 5 percent of the risk of a loan, if it is packaged into a security and sold to investors, Dow Jones reports. The idea is that lenders would be more careful with making loans since they would face steeper losses if a loan went bad.

Six federal agencies are working to resolve numerous issues on the proposal but one of the most controversial issues yet to be resolved is which loans are exempt from the risk-retention requirement and would be considered safe or “qualified” mortgages.



Regulators have suggested issuing two different plans for public comment: One plan would call for a minimum 20 percent down payment, and another plan would recommend a 10 percent down payment as well as mortgage insurance. These guys expect heated debate. 

FDIC banking regulators have called for a minimum 20 percent down payment requirement for new mortgages, but lawmakers and consumer advocates have argued that number is too high and could hamper an already sluggish housing market.



Loans guaranteed by Fannie Mae and Freddie Mac, which make up about 70 percent of the mortgage market, are expected to be exempt as long as they remain under government control. Government agencies such as the Federal Housing Administration are already exempt.The important issue is that conventional mortgage loans were not the loans that posed a problem to the mortgage market, and today continue to perform very well.  Loans made to unqualified individuals due to relaxation of requirements to get a loan (if you fog a mirror, you get a mortgage), no income check loans, and option arm loans are the basis for the mortgage meltdown and subsequent housing crash.


I believe that the 20% requirement will hurt first-time home buyers.  What are your thoughts on this? I look forward to your comments, which I will share with the National Association of Realtors.

DEBIT CARD REWARDS PROGRAMS TAKE A HIT

 As I mentioned in several earlier articles where I talked about limits being placed on debit card transaction usage ( http://tinyurl.com/debitcardlimit ) there are major changing underfoot in the banking industry as it relates to the debit cards that were foisted upon us by the banks as a way to conveniently pay our way through life without cash. In fact the cashless society was a prediction by many financial pundits just a few years ago.  I agree that we are destined for a cashless society because at the rate that this government is going, we will not have any cash to spend soon.

Well today we can put another nail in the coffin for debit card holders nationwide. Wells Fargo has halted all enrollments in its Debit card reward program effective March 27 for any customers with a Wachovia Bank account, and April 15 for Wells Fargo customers. Chase has also notified its customers that they will no longer be able to earn points after July 19.  The points accrued up until then will not expire, if that’s any consolation to those of you with Chase accounts.  Chase had already closed off all enrollments in the rewards program to new customers back on February 8.

The programs, which offered cash back, travel and merchandise awards are a staple of the banking industry. Every bank offers various programs, and many people use them, including me.  Recent changes in bank regulations (http://tinyurl.com/newbankregs ) have caused the banks to rethink their debit card programs to protect their profits. The banks are being forced into this situation because our inept and clueless congressmen have created regulations that were not properly studied.  You can read more here at http://tinyurl.com/debitcardcleanup

If you or anyone you know is interested in getting away from these dirt bag banks who borrowed from the taxpayers to bail out their incompetent decisions making mortgages to unqualified people, please send them over to http://tonyfontana.com/specials for a new offer on our Free Reloadable Visa Debit Card program.  There they can sign up for a LiveSpot membership for free, enjoy shopping with instantly calculated cash back, health and wellness discount membership programs, and so much more.  Any questions, call me at 917-33-9686 and I’ll do everything I can to help out.

Law of Attraction Tip for Today

I here from people everyday how difficult life is, that they have a problem that is getting worse, or that they have something coming up that they EXPECT will be bad news.

You cannot notice what-is and complain about it, and also be a vibrational match to the solution. When you were living the problem, you were asking for the solution, and the universe said yes immediately. Never wallow around in a problem for more than about a second. You can get so good at this that before you're aware that a problem exists, you've already got the solution under way.

Discipline Yourself for Success

It is said that you are either moving forward, moving backward, or you are standing still.  What direction are you traveling in?

G.S. Weaver said many years ago, "Continual dropping wears a stone."  So persevering and hard work gains the object of our desires.  it is this that  builds, constructs, accomplishes whatever is great, good, and valuable to you.

Perseverance build the pyramids in Egypt, enclosed the Chinese behind a wall that can be seen from space, leveled the forests of a new world, and reared in its stead a community of states and nations.
Perseverance has produced the exquisite creations of marble from the minds of geniuses throughout history, and painted on canvas beautiful mimicry of nature and life.  It has produced countless amazing products and inventions that have changed the world. But greater still are the works of perseverance in the world of mind.  What are the productions of science and art compared with the splendid achievements won in the human soul?  How little can we tell, how little know, the brain-sweat, the heart-labor, the conscience struggles which it cost to create a Newton, an Einstein, John Kennedy, Gandi?  Why does the world bow to these people and 1000's more in reverence.  Why do their worlds hve a power, their names exhalted in the halls of history forever, their deeds glorious and world changing?

They are the sons of perseverance-of unremitting industry and toil.  They were once as weak and  helpless as any of us, once as destitute of wisdom, virture and power of any infant.  Their characters, my friends, which are now given to the world, and will be to millions yet unborn, were made by that untiring perseverance and disipline which marked their whole lives.  From childhood to old age they knew no such world as fail.  Defeat gave them power, difficulty tought them the necessity of  redoubled exertios; danger gave them courage; the sight of great labor inspired them to corresponding efforts. So it has been with all men and women who have been successful in any profession or calling in life.

Successful men owe more to their perseverance than to their natural powers, their friends, or the favorable circumstances around them.  Genius will falter by the side of labor, great power will always yield to great industry.  Talent is of course desireable, but perseverance is more so. Much more. It will make your mind sharp, your wit quick, your future bright.

It will also make friends.  Who will not befriend the persevering, energetic youth, the fearless person of industry?  Who is not a friend to him who is a friend to himself?  He who perseveres in business, and hardships, and discouragement, will always find ready and generous friends in every time of need. He who perseveres in a course of wisdom, rectitude, and benevolence, is sure to gather around him friends who will be true and faithful.

If you would win friends, be steady and true to yourself; be the unfailing friend of your own purposes, stand by your own character, and others will come to your aid, join your business, be your partner, stand still to hear your words.

Persist, be disciplined, and all the success in the world will be yours my friends.
To be continued...

Anthony
afontana@netzero.com
http://tonyfontana.com
917-331-9686

No Does not Mean No.

For some,  going throught the process of showing one's business, spending perhaps an hour doing so, and then getting "rejected" can be someone disconcerting.   Well, I had three "no" responses yesterday after spending that hour on each, conducted 2 secret meetings (I guess they were a secret, cause no one showed up), but still managed to book 5 more appointments to share my business with others this coming week, and enrolled one person onto my team for one of my partners.  All in all a very productive day.
Don't worry about the day to day results, just get out there and do SOMETHING! Results will happen naturally...

To your success
Anthony

How to Find A Great Realtor

When shopping for a Realtor, what should you be looking for? All real estate agents believe that their resume is the best of the best, and that everyone loves and appreciates them for who they are.  Clients  all want their agent to have several qualities.

You're about to undertake the most important transaction in your life, and you’re putting your trust, and money in their hands to guide you throughout the entire process. They cannot let you down as professionals.

So, what qualities must a great Realtor possess as a professional?

Attention to detail.
Selling a home in these interesting economic times is somewhat more of a challenge from "back in the day". In order to sell a property today, an agent must be totally professional. That means proactive communications with all parties involved.  They must sure to speak to the home owner or buyer bi-weekly.  Communicating with the loan officer handling the mortgage loan for the buyer is critical.  Too many deals have been lost by not speaking to the bank and ironing out any issues that may pop up.

For example, I suggest allowing the mortgage banker for the buyer run the homeowner’s title policy well in advance of closing. This ensures that something is not on the title that will need to be cured.  You don't want some old lien, or a mistake popping up 2 days before closing.  If you’re selling a home you should get an inspection done, and perhaps even your own appraisal. Houses sell twice, once when the buyer and seller agree to the price, and again when the mortgage bank’s underwriter agrees what that market value should be.  An inspection report will tell you what the physical problems are, and what should be corrected before the buyer does his inspection.  A $ 3.00 faulty outlet becomes a $ 400 reduction in an offer. It’s worth the price. Getting an appraisal is another smart investment, and it will tell you and the agent whether your price is in line with market.

Finally the buyer’s agent should request a computerized DU/LP (desktop underwriting) approval from the lender on behalf of the buyer/borrower in advance. This ensures that the buyer has the financial means to purchase the home and that his "pre-approval' is actually real, and not some useless piece of paper saying "pre approved!”

Expertise
The Realtor must be very familiar with the property's area. This includes school district information, student enrollment dates, taxing authority details, shopping and transportation information.  The Realtor should know what is happening with interest rates, upcoming tax adjustments and due dates for payment.  It won't hurt to have an awareness of the local political scene either. Realtors are hired as professionals.  As such, they have a responsibility to guide their clients throughout the process. In other words, they must be willing to tell you the truth at all times.  Allowing an owner to price a property at the high end of a market, when in fact the Realtor know that the house will not get any traffic or offers, is wrong. They owe it to them to give them their professional guidance, backed up with strong study and information.  The goal must be to sell the home and give the owners a chance at their new life, not get a listing just for the agent to feel good.   Listing a property does not put any money in the owner's pocket nor does it earn any income to the Realtor. Only selling it does that.


Professional Credentials
Realtors  must be licensed by the state they work in either as an agent/ salesperson or as a broker. Be sure to check that all licensing requirements have been completed by their agent.  Education is very important and ongoing also.

Be a source of positive information
Sellers, buyers all need their Realtor to be the go-to person to tell them what is happening in the market.  Where do most people get their information from?    The daily news, that’s where. And what does the mainstream media, blogosphere, and most websites say about the real estate market.  ITS DOWN 27%, THE SKY IS FALLING, RUN FOR THE HILLS, PRICES ARE HEADING TO HADES.  Geez, if I was a person shopping for a home, or a seller trying to decide what to do, the one person you MUST count on for great advice should the  Realtor.  He or she must be the conduit of what good is happening in the world of real estate, interest rates, and job stats, all of it.  If their Realtor is a negative person, get rid of him and find someone to work with that is a positive beacon for the industry.

If you are buying or selling a home do not hesitate to speak to Anthony Fontana at LiveSpot Realty Group

Anthony can be reached at 917-331-9686 or 631-470-1251

Some Great Insight on the Housing Crash

I just read a great article written by Michael Snyder, editor of theeconomiccollapeblog.com regarding his take on the housing crash. Michael gives some good examples of what has happened, and he gives his take on where he thinks its going. I don't necessary agree with everything he said here, but its a good article with a lot of food for though.  Give it a look!

  http://www.businessinsider.com/amazing-statistics-about-the-housing-crash-2011-3


Anthony

Spring is in the Air. It's time to buy your new home.

Everything I've been reading in the past two weeks are showing very positive signs that the economy is finally moving in a decent direction. We have a long way to go, but the signposts are up ahead.  There are five clear signals that say 'BUY' right now. You need to study your local market carefully because the national market is just a combination of all local markets. Many local areas are seeing stable or rising prices, inventory reductions, unemployment rate decreases and personal income increases.  We are not out of the woods yet, but things are definitely looking up.

1. Personal Income  

According to the Bureau of Economic Analysis at Bea.gov personal income increased $133.2 billion, or 1.0 percent, and disposable personal income increased $78.3 billion, or 0.7 percent, in January, according to the BEA. Personal consumption expenditures (PCE) increased $23.7 billion, or 0.2 percent. In December, personal income increased $56.6 billion, or 0.4 percent, DPI increased $48.5 billion, or 0.4 percent, and PCE increased $56.5 billion, or 0.5 percent, based on revised estimates.  A trend of increasing income bodes well for housing as more people have more money, they are willing to take on more risk.

2. Jobs 

Regional and state unemployment rates were generally unchanged in January. 24 states recorded unemployment rate decreases, 10 states registered rate increases, and 16 states and the District of Columbia had no change, the U.S. Bureau of Labor Statistics reported today. Thirty-nine states and the District of Columbia posted unemployment rate decreases from a year earlier, 9 states reported increases, and two states had no change. The national jobless rate fell by 0.4 percentage point between December 2010 and January 2011 to 9.0 percent, 0.7 point lower than in January 2010.  In January nonfarm payroll employment increased in 35 states and the District of Columbia, and decreased in 15 states. Visit the link below for information on your specific area.
http://bls.gov/news.release/laus.nr0.htm for summaries for your specific area

3. Recent Sales Activity.  

Many areas have an increasing number of sales, and a decreasing inventory of houses for sale. There are three factors that you must take together, housing inventory, sales volume, and prices. If your area has a large inventory of homes with few actual transactions, this is a negative situation. Its like having a lot of apples but only a few people wanting the apples.  Of course the opposite is true.  If the local inventory is dropping and sales are picking up, this is good news for your area.  Visit your local boards of realtors’ websites where you can find the monthly stats for your area.

Visit http://www.census.gov/hhes/www/housing/hvs/currenthvspress.pdf 

 

4. Construction permits are an indicator of builder sentiment, and by extension, future housing activity. These are not as reliable as jobs or sales-trend data, but they can give you a good feeling on a local housing market.  Visit the following link to a detailed spread sheet at the National Association of Builders that will give you specific area figures – The link below is an excel spreadsheet.

http://www.nahb.org/fileUpload_details.aspx?contentID=55104

5. Mortgage Availability.  

As a Realtor, I know that a house needs to sell twice. The first time it sells is when the buyer and the seller agree on a price. The second time, and arguably the most important time, is the mortgage bank's underwriter agreeing to the value from his/her analysis of the appraisal, local market figures, and estimates of value from various computer generated valuation models.  The mortgage market has been somewhat tight for the past two years as lenders exited the business, credit tightened, and values and incomes dropped like stones. That said, there are signs that mortgages, especially jumbo mortgages, are being approved in increasing numbers as credit is eased a bit.  With fixed interest rates at historically low levels locking in a cheap mortgage on houses that are 30-40% less than two years ago is a great way to benefit from the housing downturn we've all experienced.

Give your local Realtor a call and find out how the market is in your area. Use an expert so you can avoid the pitfalls of going it alone. If you are on Long Island, or NYC, give me a call at 917-331-9686 as I'm a licensed sales person, and member of LIBOR and NYBOR. You can visit me at http://activerain.com/afontana  or http://tonyfontana.com/specials for a great deal on real estate commission rebates we are offering.

Good luck!

Debit Card Debacle Must Be Cleaned Up

Another Day, another mess to fix from the 111^th Congress.  

I’ve been posting on this issue for a few days now. The new Federal Reserve Bank rule to cap prices on what banks may charge merchants each time they swipe a transaction will take effect in April unless the new Congress steps in to push this off and study the effect it will have on the market.  In my opinion, and in the opinion of other banking industry experts, this new rule will threaten the flow of credit to low-income Americans and promises higher fees on all bank services for nearly everyone else.  As I’ve said in earlier posts, it’s the consumer whom Congress purports to help, but who gets it in the neck in the end. The financial reform mess called Dodd-Frank has a provision inside that is basically a hit to giant retailers, while whacking the banks yet again.

As reported in WSJ, CNBC and others, under current rules, every time a customer uses a debit card in a store, the issuing bank charges the merchant a small transaction fee, which represents a percentage of the sale. Under the new Fed rule, which will take effect in April unless Congress acts to stop it that fee will be capped at 12 cents per transaction, reducing the charges by some $12 billion to $14 billion and in effect transferring the cost of debit cards from the merchants who pay the fees to the consumers who use them.

Naturally the merchants applaud this because it reduces their costs by as much as $ 14 billion, and they “promise” to reduce prices accordingly. Don’t hold your breathe because price reductions will never happen. The merchants’ windfall will be recouped by the banks who will simply increase checking account fees, charging for debit card usage if they can, or simply requiring maximum debit card transaction amounts like the $ 50-$100 limit being discussed at Bank of America. I've met with Chase bankers and they have told me that the bank is considering maximum debit card transaction limits, and they have already eliminated free checking tied to the quantity of debit card transactions.

Congress’s meddling in the financial markets has proven to be a bad thing to consumers. Just look at the 2009 effort to regulate credit cards.  Price controls set in that effort have lead to denial of credit to marginal borrowers, cutting of credit limits without warning, cancellation of entire lines of credit and more.  Many of these sub-prime borrowers have been forced into the arms of payday lenders (some of the most expensive loans known to man).

Write on a chalk board 1,000 times: Price controls on credit lead to . . . less credit.

Visa to let people pay one another using credit, debit cards, competing with PayPal

Visa has just announced that is is creating a service to compete directly with Pay Pal. A lot of people don’t realize that Paypal is not a bank, and it is not subject to Banking regulations. They can seize and hold funds without justification for any reason they deem fit, and you can do nothing about it.  Now, if you need to pay your babysitter or send money to momma, but have no cash on hand, you will soon be able to send payments directly to their Visa Card!   The service will allow people to use their own Visa or a bank account to send money to a personal Visa debit, credit or prepaid card. Users also may bring cash to a participating bank to make a transfer.

You  will be able to send money using a recipient's mobile phone number or e-mail address. In those cases, recipients will receive a message that someone is sending them money and then enter their own Visa account number to receive it.  Money transferred to debit and prepaid cards will be treated as deposits. Money sent to Visa credit cards will be treated as a payment.
The increasingly competitive field of person-to-person payments includes eBay's PayPal and a handful of other companies. One advantage Visa will have in the market is that there are about 1.85 billion Visa cards in circulation worldwide.  Visa has a huge international money transfer business, and this product will be a great fit for its existing model.  Kudos to Visa!


For a free Visa debit card, assess to Discount Health and Wellness benefits including Doctors on Call and Aetna Dental discount programs,  and a free LiveSpot web address for life visit http://tonyfontana.com today!

Another Bureaucrat Overreach

Elizabeth Warren, an unconfirmed bureaucrat heading up the new Consumer Financial Protection Bureau, or CFPB, has proclaimed that financial institutions should not be forced to build their business models around any unfair, deceptive or abusive practices. This you can see right on their website at consumerfinance.gov.

My question is why then is she  trying to extort from these same companies and regulate their businesses despite having no discernible experience even running a financial institution?

Last year Wells Fargo, Chase, Citi, HSBC and a host of others were accused of using robo signers when creating foreclosure documentation.  While thousands of foreclosures were affected, few people lost their homes without cause.  The issue was a technical one, and the banking departments regulating these companies have suggested they clean up the mess, which they are, and pay a small fine. Most of the homeowners had not paid their mortgages in months or even years.  Not to be deterred, Warren has decided to try to hit the banks with $ 20 billion to “settle” the investigations, and force these banks to submit to her permanent oversight.

Here are some highlights of her 27 page “proposal” to the banks.

1. Mortgage servicers must submit to her permanent regulatory oversight with new reporting and administration burdens;
2. Force the banks to reduce borrowers’ mortgage principal in some cases;
3. Force servicers to perform “duties to communities” such as preventing urban blight.

The CFPB was created by the Obama administration to run without any congressional oversight.  In fact, some of her “proposals” were deemed unacceptable and dangerous in previous Congresses by those we elected from both sides of the aisle.  She has never had to be confirmed by Congress yet she is using her position to tell banks how and to whom to lend money.  I have had a long career in consumer banking and I saw first hand how Government interference in the housing market forced banks to lend to unqualified and very risky borrowers under the Community Reinvestment Act and other regulations.  Fannie and Freddie were told to buy these mortgages to continue the vicious cycle.  These policies are a direct cause of the housing bubble as cheap money flowed to unqualified people, driving up home prices to unsustainable levels. A collapse was inevitable.  We are living with the results of it now. 

It’s important that the housing market be cleaned up using market forces.  Suspending foreclosures, forcing the reduction in principal balances, and other egregious practices will further dampen the market, delay and prevent its eventual recovery.  Warren needs to be vetted by Congress as to her qualifications, and if necessary she needs to be removed from her office, and the CFPB shut down. It’s a political machine not a true protection agency in my opinion.

FED Statement released regarding interest rate levels

The Federal Reserve Bank just announced its intention to keep rates low in light of what appears to be the potential for inflation to remain low. They intend to continue purchasing $ 600 billion in long term securities to facilitate their goals.

This is the full text of their statement.


Information received since the Federal Open Market Committee met in January suggests that the economic recovery is on a firmer footing, and overall conditions in the labor market appear to be improving gradually. Household spending and business investment in equipment and software continue to expand. However, investment in nonresidential structures is still weak, and the housing sector continues to be depressed. Commodity prices have risen significantly since the summer, and concerns about global supplies of crude oil have contributed to a sharp run-up in oil prices in recent weeks. Nonetheless, longer-term inflation expectations have remained stable, and measures of underlying inflation have been subdued.

Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. Currently, the unemployment rate remains elevated, and measures of underlying inflation continue to be somewhat low, relative to levels that the Committee judges to be consistent, over the longer run, with its dual mandate. The recent increases in the prices of energy and other commodities are currently putting upward pressure on inflation. The Committee expects these effects to be transitory, but it will pay close attention to the evolution of inflation and inflation expectations. The Committee continues to anticipate a gradual return to higher levels of resource utilization in a context of price stability.

To promote a stronger pace of economic recovery and to help ensure that inflation, over time, is at levels consistent with its mandate, the Committee decided today to continue expanding its holdings of securities as announced in November. In particular, the Committee is maintaining its existing policy of reinvesting principal payments from its securities holdings and intends to purchase $600 billion of longer-term Treasury securities by the end of the second quarter of 2011. The Committee will regularly review the pace of its securities purchases and the overall size of the asset-purchase program in light of incoming information and will adjust the program as needed to best foster maximum employment and price stability.

The Committee will maintain the target range for the federal funds rate at 0 to 1/4 percent and continues to anticipate that economic conditions, including low rates of resource utilization, subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally low levels for the federal funds rate for an extended period.

The Committee will continue to monitor the economic outlook and financial developments and will employ its policy tools as necessary to support the economic recovery and to help ensure that inflation, over time, is at levels consistent with its mandate.

Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; William C. Dudley, Vice Chairman; Elizabeth A. Duke; Charles L. Evans; Richard W. Fisher; Narayana Kocherlakota; Charles I. Plosser; Sarah Bloom Raskin; Daniel K. Tarullo; and Janet L. Yellen.

Debit card $50 spending limit coming to a bank near you?

JPMorgan Chase, one of the nation's largest banks, is considering capping debit card transactions at either $50 or $100. The cap would apply even if you run your debit card as credit.  It seems that our illustrious congressmen have decided that banks are making just a tad to much money on interchange fees paid by merchants where you shop. According to CNN every time you swipe your debit card your bank charges the retailer an average fee of 44 cents, which it shares with its partners. The merchants pay about $ 16 billion in fees, this in a multi trillion dollar economy.  They include these fees in the prices we all pay. As part of the Wall Street reform legislation that was passed last year, these fees are being slashed. The Fed is currently proposing rules that would go into effect in July and would cap interchange fees at 12 cents. 

The new regulations will cost Chase about $ 1 billion.  Most of the large banks will feel the pain to their pockets, but not to worry my dear consumers.  The banks will simply recoup there lost profits from, you guessed it, YOU! The merchants, bless their little hearts, will simply keep the extra money that they are not paying to the banks. In other words, consumers take it in the neck.  Again.  

Chase is a little ahead of the curve here, currently testing $ 3.00 monthly fees on debit cards and $15 checking account fees. As I've said in a previous post.  Free checking is going the way of the Dodo Bird.  If Chase goes forward on this, you can bet your sweet bippie that other large banks will follow.  Dodo birds of a feather flock together.

If a cap like this does make its way into accounts across the board, consumers would be forced to write checks, withdraw cash from ATMs, or put their spending on credit cards. "The whole model on the debit card side is in flux because of Dodd-Frank," said Brian Riley, senior research director at financial services consulting firm TowerGroup. "The unfortunate thing is that the people who will really get hurt on this are the people who need the most help."

Consumers are not always qualified for credit, and in fact over 60 pct of card transactions today are debit card not credit card.  If you have available credit, you are now going to be charged huge fees to access it as banks try to recoup lost revenue from that method of payment. Additionally, ATMs typically only dole out a limited amount of money at a time and checking accounts are being loaded with new fees.

For information on obtaining a Free Visa debit card, click here today.

IS THE DOOR TO A NEW MORTGAGE CLOSING?

I’m not looking to yell fire in the room when there is no fire. But I need to let you know that based on what I read on a daily basis, it is clearly going to get more difficult and more costly to finance a house in the future.  If you’re on the fence deciding whether to buy or not buy, or to refinance, get off the fence. It hurts to sit on a fence anyway. 

There are several factors at play here namely;

1. The mortgage market is facing pressures from new laws and regulations, still-declining home prices and the ongoing need for government-owned mortgage players to shore up their finances. Mortgage origination will be less than $ 1 trillion this year, down  from $ 3 trillion in 2005
2.  Mortgage pricing is on the rise. The current rates hover around 5% for a 30 year fixed rate loan.  That’s up by 1% from last year, but still an excellent rate that you need to take advantage of.  The rate MUST climb as the economy improves. So, things get better in the economy, and rising rates with dampen that enthusiasm;
3. Home prices are bottoming out in some areas, firming up in others, and falling in still others.  A better mortgage today may be a great trade-off to the possibility of lower prices tomorrow. Think about the huge cost of borrowing at a higher rate over 30 years, versus a price drop of a few thousand dollars now;
4. Fannie Mae and Freddie Mac are adding new fees to loans to people with the best credit and raising existing loan fees which started on March 1^st for Freddie's while Fannie's kick in April 1. Citing a need to address risk and price their services appropriately, they will assess a fee of 0.25% to 0.5% of the loan value on borrowers with credit scores of 720 or higher who put down less than 25% of the purchase amount. Fee for scores below 720 will double to 1% if down payment is less than 20%;
5. FHA will require an up front mortgage insurance payment of 1% of loan, and an annual premium of 1.1% to 1.15% when the increase goes into effect on April 18;
6. New restrictions proposed by the Obama administration will include phasing out
   Fannie and Freddie, 10% down payment minimums, and lowering high cost area loan amounts to $ 625,500 down from current limit of $ 729,750.  The limit in non-high cost areas will remain $ 417,000 for most markets;

Its time to move on buying a house!  Let us help you.  Visit me at http://tonyfontana.com and click on the Specials link, or you can visit right hear at  http://fontana.livespot.com/specials 

There you will find my real estate rebates link.  Read about our programs, and give us a call if you are interested in buying or selling in New York State.

30 Year Mortgages may go Bye Bye.

Remember the movie “Bye Bye Birdie”?  If your my age, you’ll remember it. Well, if Fannie Mae, and Freddie Mac are shut down as it the rare shared  goal of  Republicans and the Obama administration, the 30 year mortgage could become extinct, like the Dodo bird.  Certainly, the 30 year mortgage could transform itself into a luxury item that only a select few can take advantage of.

The 30 year mortgage has been around longer than me, since the 1950’s.  Fanny Mae, and Freddie Mac were created to increase the availability of mortgage loans by creating liquidity in the market. These companies are quasi-government entities, which means if they make profit, great, if they don’t, the taxpayers take it in the neck. Well anyway, their purpose is to buy up mortgages issued by banks and mortgage lenders. Fannie and Freddie buy loans from approved mortgage sellers, either for cash or in exchange for a mortgage-backed security (MBS) that comprises those loans and that, for a fee, carries guarantee of timely payment of interest and principal. This MBS, allowing lenders to reinvest their assets into more lending and in effect increasing the number of lenders in the mortgage market.

These companies allow people to borrow money at lower rates and longer periods, making it easier to buy a home of your dreams.  If they are shut down, which will take years if ever that takes place, then investors will be loath to invest funds in long term mortgages. Without the guarantee that they will be paid back, without the implicit backing of the American Taxpayer, it will be difficult for lenders to raise money for mortgages that no longer carry government guarantees. Without fresh money to make new loans, the US housing and credit markets could lose flexibility and liquidity, resulting in increased costs, lower profits for banks, and ultimately, fewer people owning a home.

The time to buy is now. Prices are excellent, and there are a ton of great deals out there.  Visit me at http://tonyfontana.com  and take a look at our specials link to see about some great real estate buyer commission rebates. Or call me at 917-331-9686 to review your needs and desires for a new home today.

Breaking News

The House of Representatives passed a two-week budget extension on Tuesday, averting a shutdown that would have begun on March.

The House passed the extension, known as a continuing resolution, with a vote of 335-91. The bill, which is expected to be approved by the Senate, will cut federal spending by $4 billion during the period.

Democrats, who control the U.S. Senate, initially rejected a bill passed by the Republican-controlled House that would have cut $62 billion for the last seven months remaining in the fiscal 2011 budget. Members of both parties will debate what to do about the 6 months remaining in the fiscal year.

Congress did not pass a year-long budget last year after Democrats and Republicans failed to agree on one. "Stopgap measures like the one approved in the House today are only needed because the Democrats who run Washington failed to pass a budget last year," House Speaker John Boehner said on Tuesday.

Senate Majority Leader Harry said the bill would be ready for President Obama to sign within 48 hours. "We'll pass this and then look at funding the government on a long-term," Reid said.

Tax Tips Today

I'm sure your all a-tingle to meet with your accountant, who is up there in importance with with the Doctor, the Lawyer and the Spouse.  I just want to give you a few tips that many people neglect take advantage of. Accountants, of which I was one, usually ask the right questions, but sometimes they may not be aware of some of your activities that if documented properly, could be tax-advantageous transactions.  To be clear, you should be divulging all financial details to the  accountant, just as you would provide information to the aforementioned Doctor, Lawyer or Spouse.

I'd like to touch upon just few that are advantageous to you.

1. Tax Credit of up to $8,000 for First-Time Homebuyers and $6,500 for Existing homeowners;


The Congress extended and expanded the wildly popular 2008 first-time homebuyer tax credit. In addition, the income limits were increased, making even more people eligible. If your single, you can claim a credit even if your income is above $ 125,000.  You can earn a maximum of $ 145,000 and still receive a partial credit. Married couples qualify for full credit with income up to $ 225,000, and partial credit if income exceeds
$ 225K up to $ 245K.  By the way, this is a refundable credit, meaning it reduces your tax liability, and could lead to a refund if you owe less than the credit!

You can qualify for this credit even if you are an existing home owner.  If you buy another home, and the new home becomes your primary residence, you don't need to sell the existing home and you are still  eligible to receive a tax credit of 10% of the purchase price up to $6,500 if you bought and closed on a replacement home by September 30, 2010. In order to be eligible for the credit, you must have lived in the same principal residence for any five-consecutive-year period during the past eight years.

First time homebuyers who closed on their principal residence on or before Sept 20,2010 will qualify for a tax credit of 10% of the purchase price up to $ 8000. However, if you owed a home in the previous 3 years, you are not eligible for a credit.

2. Income Phaseouts for Itemized Deductions and Personal Exemptions for High-Income Taxpayers;

The amount of itemized deductions and personal exemptions you can take are normally phased out as your income rises. In 2010, however, those income limits have been repealed.  This is good news for all of you who have large deductions from home mortgage interest, real estate taxes, medical bills, which are the deductions that typically the largest on most returns.  Be sure to tell your accountant if you paid points on your mortgage, or if you paid mortgage insurance premiums when you financed. I have seen many home owners fail to tell me that they paid points on a mortgage. So, no matter when you took out that loan, check your closing documents to see if you did, and let the accountant know.


3. Tax Credit for College Tuition

For 2010 through 2012, the Hope credit is replaced by a new credit. Now called the American Opportunity Tax Credit, it provides a credit of up to $2,500 per student per year for four years of college. It now also covers the cost of books, and begins to phase out at $80,000 of Adjusted Gross Income for single filers and $160,000 for joint filers. If the credit is more than your income tax liability, 40 percent of it is refundable. Also, the full credit is allowed against the Alternative Minimum Tax.


4. Child Tax Credit

If the credit exceeds your  tax liability, all or part of the credit will be refunded if the you earn more than $3,000 in 2010, down from $12,550 in earnings previously.

5. Credit for Energy-Saving Home Improvements
 
If you paid for energy-saving home improvements the tax credit for the cost of  these improvments is 30 percent for 2010, up to a combined maximum of $1,500 in both 2009 and 2010. It applies to qualified insulation, windows, outside doors, biomass fuel stoves and high-efficiency furnaces, water heaters and central air conditioners.

 One last point about filing.  Congress passed legislation in December 2010 (best time to do that). Due to the lateness of the enactment of the tax bill, the IRS delayed the start of processing for some returns until Feb.14. Many preparers and software companies have been holding returns for submission. The expected increase in volumes may result in some taxpayers experiencing a delay in receipt of e-file acknowledgements and, in some instances, slight refund delays. Taxpayers can check the status of their refund on "Where’s My Refund?" on IRS.gov.

Debit Cards Becoming a Major Tool to Help with your Banking Needs.

The recent bank regulations enacted under the Dodd-Frank Financial Reform bill has created a serious situation for the banks that issue  free debit cards to their checking account holders. Under the regulation, the fees charged to merchants by banks or credit card companies for debit card transactions must be reasonable and proportional to the cost of processing those transactions. In other words, the banks that issue debit cards will be forced to give up tens of billions of dollars in revenue. Unfortunately, it's the consumer that bears the brunt of this so-called reform. The merchants will not be required to lower their prices, so the windfall will go right into merchant pockets. The consumer, the one be protected, is now going to be charged more money and be more inconvenienced at the bank he is with.

The banks must figure out a way to replace lost income, so basically they will do several things. First, they will reduce the amount of low balance checking accounts on their books, basically closing these now unprofitable accounts. Second, they will require much higher account balances to be maintained by insisting that a consumer keep $ 1000, $ 2000 or more in a combination of accounts. Also, they will not be waiving monthly account fees even if they use the debit card multiple times each month.

Finally, there is talk that many large banks will limit the amount that can be debited from a card in an individual transaction. The measures they are taking is designed to reduce losses, and raise revenue.
It is estimated that 60,000,000 people are currently not receiving financial services through a bank or credit union. That figure is going to rise dramatically over the next year. Recent Master Card and Visa studies show that over 69% of the transactions processed by these companies are debit card transactions, not credit cards transactions. The trend is clear. People are shifting to debit cards in greater numbers, but they run the risk that their costs for banking will now raise dramatically, and that their inconvenience will soar.

Reloadable, or prepaid debit cards are now becoming a major force against this consumer onslaught. There are several major players in this industry, but in many cases the cost to obtain, maintain and use these prepaid cards is very high. Be aware of cards that carry very high monthly maintenance fees, have an upfront cost to buy them, and have high transaction fees. You will not find one card that is free of any transaction fees. Free debit cards don't exist. However, if you don't need to maintain a checking account, love online banking or bank by phone, have direct deposit from one or more sources, a prepaid debit card be a major blessing to those that need it.

Anthony Fontana has been a banker, tax accountant and entrepreneur for over 30 years. When he discovers something that makes his life easier, and makes his clients' lives and businesses more effective and profitable, he loves to share it with everyone he knows! Visit: http://tonyfontana.com for excellent information on improving your life, saving money and reducing financial stress.

WHEN WILL WASHINGTON GET IT?

Every day I read the news of a crisis in this country. We have a fiscal crisis, a water crisis, a debt crisis, a mortgage crisis, a home price crisis, food crisis, and on and on. What is amazing to me is that there does not seem to be sense of urgency in Washington to do anything productive to get us out of the current multiple “crisis” enveloping our great Nation.

There are probably several reasons for this but not all of them are political in nature. Peggy Noonan in the Wall Street Journal wrote “If you are from the deep left, if you're on the leftward ridges of the Democratic Party, you believe in high spending, higher taxing and a more dominant role for the federal government. So you wouldn't be alarmed at the current crisis, you'd be more or less happy: You're sort of getting what you want. If you're told entitlement spending will ultimately force severe cuts in America's defenses, you might think, "Good, fewer guns, more butter." Since you likely think America is a prime source of trouble in the world, you wouldn't be too concerned that nations that hold our debt might come to exert influence on our foreign-policy choices. In the new and emerging global world, what's so bad about a more bridled America?”

But this opinion belongs to just the very far left of our country.  Most of us are not far left in our leanings.  I have no issue if you are, but I see a country that is mostly in the center. The problem I have, why are the more moderate “level headed” of our political class not in any rush to solve the problems we are clearly having and work together to get things done? Why were they all off for a week vacation during “President’s Week”?  I don’t get it.  Did any of you get a week off for the holiday?  Not sure what I am seeing here. If the fiscal crisis is so important, why take off a week. Why not hammer out a deal that everyone finds reasonably fair, and end the madness?  

I believe the problem is that there are too many members of the Senate and the House that have been in their positions for a decade or more. Some of these guys have been in there for 30 plus years.  The country has seen various crises loom up at various times and these people have become immune to the effects.  They know that we’ve weathered every storm that has come our way, and don’t see anything now as all that urgent for their attention.  While the rest of us are being pummeled by lower housing prices, high food, oil and gas prices, looming inflation and rising interest rates, chaos in the Middle East, we know that something is different now. Something is changing right before our eyes. They think they can do anything and America will always be rich. That is clearly not the case anymore.

Many of today’s political leaders just don’t see the problem that the rest of us see and are now living through.  They get paid a nice amount of money, take off for what seems like a huge amount of time every year, and travel on our dime all over the world on junkets that have little to do with their actual job.  Ms. Noonan writes “It is really convenient and pleasant not to see a crisis, because if you don't see it, you don't have to do anything about it. You don't have to be brave, you don't have to put yourself on the line, and you don't have to lead. You can tell yourself you don't have to be brave and lead because really, at the end of the day, despite all the screaming, there is no crisis.”

The sense of detachment that I see in Washington is amazing.  It’s like the wealthy kid who has a family with wealth stretching back till the dawn of time, so the kid does not see any other way to live.  Sometimes we see the children of the uber rich slide down into all kinds of mischief. Not all of them of course. There are notable and extensive exceptions, but you get the point. If you have lived your entire life at the public trough, you need to come up for air on occasion and see what the heck is happening around you. This country needs a better plan. The old one is done for. I don’t have the answers but at least I am willing to ask the question.

What are your thoughts on this?

Foreclosures vs REO's. Whats the difference?

If you are interested in investing in real estate, it can be very profitable. There are a growing number of foreclosures and REO properties on the market at this time, with no end in sight to the increasing inventory. There are risks and advantages associated with each method. Foreclosure is a legal process where a lender attempts to take legal possession of a property on which the homeowner has failed to make payments. If that property isn't sold in an ensuing auction, the title to the home is transferred to the lender. Then the home is known as a real estate owned, or REO, property. Knowing how each process works is crucial for an investor.

Let’s take a detailed look at each investment method.

Foreclosure is the procedure used by lenders who try to take legal possession of a property after the owner defaults on the mortgage payment. A lender usually begins the foreclosure process when the homeowner fails to make mortgage payments for three consecutive months. Each state has specific procedures and timelines that must be followed by a lender. Certain documents must be filed on a timely basis. At the end of a foreclosure, a judge will allow the sale of the property to proceed. The final step is when the property is auctioned off at a trustee sale. The lender will usually set the minimum price that it will accept from bidding investors on the courthouse steps. If investors' bids match or exceed the minimum set by the lender, the property is sold and the title to the property goes to the winning bidder.

If the property isn't sold at auction, however, it becomes an REO, or real estate owned. The property title is transferred to the bank. A foreclosure home that has become a bank-owned property can then be listed with a licensed real estate agent hired by the bank. Most lenders have a department that handles REO properties. To sell the home as quickly as possible, the lender will remove any liens on title and resolve any other issues that might interfere with the sale of the property.

There are several key differences between the two investment methods. A lender that succeeds in foreclosing on a property takes possession of the home but does not own the property at that time. REO properties, on the other hand, are owned by the lender that foreclosed on the property. Foreclosures are sold by a trustee to the highest bidder at an auction, not by real estate agents. By contrast, the lender in an REO case must authorize a real estate agent to sell the property. The responsibilities of the buyer also differ in each case. In a foreclosure, the home is sold as is and without a title warranty. The buyer may be liable for paying off any liens or encumbrances attached to the title, since the lender assumes no liability for any liens. For an REO, the lender must clear all liens and encumbrances from the title. Finally, a foreclosure cannot be financed with a mortgage but must be paid for in full, with a cashier's check, at the time of the auction. The buyer of an REO property, however, can pay cash or finance the deal with a mortgage.

Buying a property at a trustee auction or purchasing an REO can be a very lucrative way to buy real estate. However, there are associated risks with each method. You must obtain clear title to the property. A foreclosed property might have liens that must be paid by the buyer, or the property might require costly repairs after the purchase. An REO property will have a clear title, but it, too, might need extensive repairs. Be sure to do your homework on the home you are looking to buy. Research title if you can, and try to get into the home to see if it needs major repairs, or if there are squatter living in it.

Need to save money, or get almost instant cash back on your normal shopping, visit me at http://tonyfontana.com for a free reloadable debit card, great deals on restaurants, discounted health and wellness benefits, including Aetna Dental discount plan.

Foreclosure Prices on the Rise

You’ll be happy to know that the homes in foreclosure on your block are going to sell at an average of 28 percent discount last year and may continue to drive down U.S. housing prices as the supply of distressed properties grows, according to RealtyTrac Inc.  Of course I’m being facetious.  Foreclosure prices are up a tad under 1 Percent from 2009.  Although the prices are higher, they are still selling at significant discounts to the market price. If you are upside down on your mortgage and need to sell, this is NOT good news.  If you were counting on cashing out the equity in your home for your retirement, and moving to sunny locales around the world, this news makes it difficult to do that.

A total of 831,574 homes that sold in 2010 had received notices of default, auction or repossession, the Irvine, California-based data seller said today in a statement. Properties in distress accounted for almost 26 percent of all home sales last year, down from 29 percent in 2009.

A “bloated supply of foreclosures and weak demand from homebuyers” are depressing the market, James J. Saccacio, RealtyTrac’s chief executive officer, said in the statement. Residential real-estate prices dropped 4.1 percent in the fourth quarter from a year a earlier, according to the S&P/Case-Shiller index of home values in 20 cities.

“While accelerating foreclosure sales will help clear the oversupply of distressed properties and return balance to the market in the long run, in the short term a high percentage of foreclosure sales will continue to weigh down home prices,” Saccacio said.
Foreclosure filings may rise 20 percent to a peak this year as unemployment remains high and banks resume seizing property after a slowdown to investigate documentation procedures, the company said Jan. 13.

Distressed properties sold at a discount of 27 percent in 2009 and 22 percent the previous year, according to RealtyTrac. The discount reflects the sales price of homes in the foreclosure process compared with those not in distress, the company said.

Foreclosure Sale Prices Rising

Foreclosures sold at an average price of 172,030 in 2010,  up from $170,775 in 2009 and down from $200,708 in 2008. Counter balancing this news is another report from the National Association of Realtors released yesterday that sales of previously owned homes in the U.S. rose in January to the highest level in eight months as investors used all-cash transactions to snap up distressed properties.  Investors are making a killing at this time, IF they have cash with which to buy. Break open the kids’ piggybanks immediately.

Bank-owned properties or REO’s sold for an average discount of 36 percent last year, up from 33 percent in 2009, according to RealtyTrac.  These houses accounted for 16 percent of all U.S. sales, compared with almost 18 percent in 2009 and 13 percent in 2008. Residences in default or scheduled for auction sold for a discount of 15 percent, down from almost 17 percent in 2009.

Anthony
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Welcome to my Live Spot Blog!

I want to welcome you personally to my LiveSpot Blog and hope that you find useful information to help you navigate today's complex financial environment.  I look forward to your comments and suggestions, as well as sharing with you my 34 years in banking and finance, tax accounting, and marketing.

IRS eases up on tax liens

The IRS is the biggest debt collection agency in the world, and the scariest for most people and businesses.  Instead of making threatening phone calls to your home, the IRS files tax liens. This official notice establishes priority rights for the IRS against other creditors, meaning that when the property against which the lien is filed is sold, Uncle Sam will get his owed money first.


IRS has decided that perhaps they are being a bit to harsh. Today they announced that it will be giving beleaguered  taxpayers who are having trouble coming up with the cash a bit of a break.
IRS Commissioner Doug Shulman announced today that his office is instituting new approaches to tax collection. These new policies and procedures, should help people who owe back taxes, especially lower-income taxpayers and small businesses.  Here are the new collection rules.

Increasing lien thresholds.
The IRS will "significantly increase" the dollar thresholds when liens are generally filed. Currently, liens are automatically filed against people with $ 5000 in taxes overdue. This threshold has been in place since the 1980's. In keeping with these fun times, IRS has raised that to $ 10,000! Awesome!


"Raising the lien threshold keeps pace with inflation and makes sense for the tax system," Shulman said. "These changes mean tens of thousands of people won’t be burdened by liens, and this step will take place without significantly increasing the financial risk to the government."  We would not want any financial risk to the government, now would we?


Withdrawing liens for direct payment plans.
Lien withdrawals will be even easier for taxpayers who owe $25,000 or less and agree to pay off the debt via a direct debit installment plan. Set up such a plan, in which the regular payments are made directly to the IRS, rather than you writing a check each month, and the lien will be released.
If you already have such a debit payment plan, just ask the IRS to release the lien. And if your IRS installment plan is the traditional type in that you're still writing checks, just change it to direct debit and the lien will be withdrawn.  A withdrawn lien is a stronger deal than a lien release.  It is helpful when your credit file is updated. It should improve scores quickly.

Making installment plans more accessible.
The IRS will raise the dollar limit of its payment program to tax debts of $25,000 or less to allow more small businesses to participate. Currently, only small businesses with less than $10,000 in liabilities can get tax installment payment plans. Small businesses will have to enroll in a Direct Debit Installment Agreement and will have two years to pay off the debt.


Expanding the Offer in Compromise program.
The IRS is also expanding a new streamlined Offer in Compromise , or OIC, program to cover a larger group of struggling taxpayers. An OIC is an agreement between a taxpayer and the IRS that settles the taxpayer’s tax debt for less than the full amount owed. Taxpayers with annual incomes up to $100,000 now can participate. In addition, the unpaid tax bill amount for eligibility has been doubled, from $25,000 or less to $50,000.


Commissioner Shulman said the changes will help people who are struggling in a weak economy get current on their tax bills. "These steps are in the best interest of both taxpayers and the tax system," he said. I applaud IRS for finally realizing that people need to eat, have a roof over their head, and pay their monthly bills to survive. Recognizing the difficulty taxpayers are facing is a step in the right direction. Now we just need to abolish the who department. Now THAT would be a big step.

Visit http://tonyfontana.com to register for your free LIVESPOT before they are taken.

afontana@livespot.com

Say Goodby to Free Checking.

The battle between merchants and bankers over proposed caps on debit-card swipe fees intensified this week as the dueling industries brought their arguments to a financial services subcommittee on Capitol Hill. At present $ 12 billion is paid annually by merchants to the various banks that issue debit cards.  New rules promulgated by Congress want to reduce interchange fees to no more than .12 cents per transaction.  How does this impact you? Simple;  if the banks cannot make money they will recoup their profits from YOU! Surprised? Don't be. Anytime the illustrious powers that be in Congress step in to help the little guy, they end up screwing the little guy because these guys rarely understand simple economics.

The sad thing is, none of this will save you money. Not one thin dime. Why? Well, the money that was being charged to the merchants is no longer going to be charged to them by the banks. Great you say. Its not. Those merchants will not be lowering their own prices to reflect their reduced costs. So every merchant that takes your debit card will receive a windfall in profits. The banks, God bless em, will do several things.  One, they will close any small balance checking accounts. These are unprofitable to them now, and they will close them by the millions, adding to the 60 million people who don't have a bank account now. If you are lucky enough to make the cut, they will require that you keep $ 1000 to $ 5000 in total balances with them, AND they will eliminate the ability to use monthly debit card usage to count towards your free checking. In other words, say bye bye to free checking.

"If the interchange fee is capped, we are forced to go back and look at our pricing on all of our checking products," said Paul Van Ostenbridge, chief executive officer of Atlantic Stewardship, based in Midland Park. He said the bank is able to pay as much as 2.6 percent interest on its "Power Rate" checking account, for example, mainly because account holders must make a minimum of 10 debit-card transactions per month to qualify. The retailer making the sale pays the bank with each swipe. "Debit card usage is what drives the revenue to the bank," Van Ostenbridge said.

Thanks Mr. Dodd and  Mr. Frank. 

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