SoCal Housing News

This is the second post of six written in an article by George Mantor.  If you are a homeowner who might soon be facing default or you are currently in default and trying to work out something with your lender, this is critical information for you to know.

Predatory Mortgage Servicing Fraud – First of a SeriesRISMEDIA, April 6, 2010—

“The financial intermediary who had no actual loss also bought credit default swaps for themselves at multiple times the loan amount.

There is an inherent conflict of interest in this scenario. The financial intermediaries, who actually have no risk, stand to gain enormously by collecting on the default swaps.

As if debt securitization and betting on failure weren’t lucrative enough, part of the plan included gaining every possible means of getting more of the borrower’s money in fees.

But even more important, by controlling servicing, they have the ability to actually control the exact number of defaults within specific pools by simply pushing people into default.

The terms of the default swaps were dictated by the financial intermediaries.

To collect on the default swaps, which the financial intermediaries created and designed, just like the onerous terms of your mortgage, only a certain percentage of defaults need to occur within a pool.

However, if they could control the performance of the underlying loans, they could manipulate the defaults in the pool. The best way to do that is to service the loan.

In addition to putting borrowers into default at will, they make vast untold sums of money before the property is foreclosed.

And once they target you, they cannot be stopped. That unlocks a wealth of money-making opportunities. The real money, as many servicing companies are discovering, is in the very lucrative business of targeting the most vulnerable borrowers and squeezing every last penny out of them before throwing them out in the street.”

More posts to come……

This is the sixth post of six from an article written by George Mantor.  If you are a homeowner who might soon be facing default or you are currently in default and trying to work out something with your lender, this is critical information for you to know.

Predatory Mortgage Servicing Fraud – First of a SeriesRISMEDIA, April 6, 2010—

“Right now all of the focus is on the predatory loan-makers, not the loan servicers. There isn’t any help coming from lawmakers. Therefore, you need to protect yourselves.

1. Start to make your mortgage payment early. This should help keep you under the radar screen. Once someone targets you, they will be calling.

2. Don’t allow your homeowner’s insurance policy to lapse. If the mortgage servicer asks for proof of insurance, provide it through every channel available and document it. Print out and keep email, keep the fax verification and send every piece of mail “return receipt requested.” And, make sure they know you are doing it. Make the email confirmation part of your fax, for example. This sends a message that you might not be the easiest of targets.

3. Never talk to them on the phone. Make them put everything in writing.

4. Do not permit any sort of electronic transfer of funds; you want a paper trail. Buy and use check writing software that allows you to update your bank account online and regularly monitor check clearing activity.

5. Never sign anything without a professional review. Forbearance agreements aren’t for you, they are written by the servicer and designed to strip you of your rights and every last penny.

6. Consider paying any late fees and contesting them after the fact. Withholding payment from the mortgage servicer in a dispute will give them just the excuse they need to deduct it from your next payment leaving you in arrears on your mortgage payment and late every month thereafter. The late fees will skyrocket as your credit plummets leaving you no way out.”

Follow up articles to come.

This is the first post of six from an article written by George Mantor.  If you are a homeowner who might soon be facing default or you are currently in default and trying to work out something with your lender, this is critical information for you to know.

Predatory Mortgage Servicing Fraud – First of a SeriesRISMEDIA, April 6, 2010—

“It’s been more than three years since I wrote an article about mortgage servicing fraud. I’m a little older, but it’s still alive and thriving. Since then, we’ve had a complete meltdown of our financial system, a thorough looting of the American tax payer, the destruction of the middle class, and just about every other indicator of quality of life has tanked alarmingly.

At the same time, financial intermediaries were able to reap huge profits, receive TARP funds to which they were not entitled and didn’t need because they had no real losses, and funneled it all into bonuses that catapulted number crunchers to oil Sheikdom wealth.

This didn’t happen by circumstance, but is instead part of a large and well-organized fraud wherein all of the evidence points directly back to “too big to fail institutions” that are, apparently, too big to prosecute as well.

Financial intermediaries targeted the large pools of cash in pension and hedge funds. They promised absolute safety for a slightly higher interest rate than comparably safe investments.

They pointed out that residential mortgage foreclosures were extremely rare at between 1-2%.

They failed to mention that those were just foreclosures. Default rates are something different. Nor did they mention their plan to create a menu of guaranteed to default loans—predatory loans.

And, they left out the part about how easy it would be to increase defaults if one controlled the servicing. At present, there are a record 13-plus percent of loans which are not current. Coincidence?”

More to follow in coming posts…..

Two very neat electronic gadgets for the home gardener:

1)  EasyBloom offers an electronic sensor you place in the ground to collect information about the condition of your soil.  When the sensor is connected to a USB port in your computer, the information is analyzed to determine what plants will do well in your yard.  The sensor also diagnoses problems with existing plants.   Pretty cool, and a nice thought for the Mom or Dad in your house who enjoys gardening.  You can find out more at www.easybloom.com.

2)  Go to www.boranicals.com to learn more about a technical device that sends a text message or makes a phone call to tell you your plants need water (I’d say we can put a woman on the moon).

“Self-discipline begins with the mastery of your thoughts.  If  you don’t control what you think, you can’t control what you do.  Simply, self-discipline enables you to think first and act afterward.”  Napoleon Hill

“Ability can take you to the top, but it takes character to keep you up there.”  Zig Ziglar

Standing out in a crowded marketplace that’s filled with talented competitors can appear daunting, especially to someone just starting a business.  If you take the time to study what your competitors have done to stand out, one thing you’ll notice, perhaps without being consciously aware of it, is their branding.

As you’ll see, branding takes multiple forms.  I read a good blog I’d like to share with you.  After reading the blog below and looking at the Geek Squad’s model, you’ll find it fun to try expanding your brand marketing.

The Geek Squad understands that branding covers every single aspect of business.  It’s never just about your website or business logo (although that’s part of it). Branding is about creating a feeling and a response in the minds of your clients and customers.

Here Are 10 Ways That The Geek Squad Can Help You Explode Your Own Brand:

1. Company Name. The name of your company is an integral part of the branding process. You need to ensure that your customers understand who you are and what your represent through your company name.  Obviously, the name “Geek Squad” speaks volumes.

2. Website. Your website needs to offer your prospects a big picture look at your entire brand. Everything on your site should promote the promise that you are making to your clients and customers.

3. Mission Statement. Your company mission statement should be a natural extension of your brand. The Geek Squad states, “We’re an army more than 18,000 strong, on a singular mission to rid the world of rogue technology. We’re still oddly dressed, but we’re now oddly dressed and saving the day across the globe.” Brilliant.

4. Phone Tactics. Yes, branding even entails how you answer the phone. Think about ways that you can integrate your brand and your business phone. The Geek Squad doesn’t just “answer the phone.” Instead you are prompted to enter your “top secret pass code” or speak to a Geek Squad Special Agent. The on-hold music consists of a compilation of spy movie theme songs.

5. Dress Code. If you can incorporate your brand into the way that you or your employees dress, this will even add more believability to your brand. Of course, Geek Squad employees dress in white shirts, dress pants, “geeky” ties and yes, some even flaunt the pocket protector.

6. Tweets. If you’re going to use Twitter as a marketing tool, make sure that you use it as a platform to develop powerful brand awareness regarding your small business.  @GeekSquad tweets daily tips about fixing your computer, removing spyware and other “geeky” topics that their dedicated customer-base loves.

7. Blog. One of the most important marketing tools for today’s small business is maintaining a blog. There is no better way to communicate directly with your prospects, customers and clients.  At the Geek Blog, the writers go into depth about geeky technology, geeky facts and geeky jokes.

8. Videos. Have you heard about GeekSquad TV? That’s the ingenious Geek Squad videos that showcase the intelligence and utter geekiness of these likable employees. Again, their videos continue to drive home the fact that these guys know what they’re doing.

9. The Car You Drive. If you are creative enough, branding can even be a part of the car you drive. Take a look at the “Geek Mobile,” a compact, little VW emblazoned with the Geek Squad logo. If that doesn’t create brand awareness, I don’t know what would!

10. Consistency. One of the most crucial aspects of branding a small business is that you must be absolutely consistent. Every single interaction that your customers have must send the same message. You are ultimately creating experiences for your prospects, clients and customers that create trust and build emotional attachments to your company.

So, as you begin the task of building a brand that creates fierce and intense loyalty in your market area, don’t forget about the Geek Squad. They are branding masters.

Jessica Swanson, Founder and President of Shoestring Marketing, Inc., has helped entrepreneurs, all over the world, explode their businesses using cutting-edge, proven and completely free marketing strategies. To receive your FREE Shoestring Marketing Kit, that has helped thousands of entrepreneurs, just like you, learn the exact techniques for marketing their businesses for no-cost, visit:

www.ShoestringMarketingKit.com

For the savvy investor, beginners who want to get into investment real estate, and just for entertainment, take a few minutes to watch and listen to Than Merrill.

“Develop success from failures.  Discouragement and failure are two of the surest stepping stones to success.”   Dale Carnegie