How to Avoid Predatory Lending - by NAR

For most families, buying a home is the biggest and smartest purchase they ever make. Unfortunately, not all loans are in their best interest.

When loans hurt instead of help, they can quickly lead to foreclosure and even bankruptcy. It's important to learn the warning signs and common problems associated with predatory lending, and to ask the right questions when shopping for low cost loans.

The term, "predatory lending" covers a wide range of abusive practices. Some may be predatory for one borrower but not for another, because everyone's circumstances are different. Predatory lenders often take advantage of first-time homebuyers and others who may be vulnerable to high-pressure sales tactics, so it pays to know how to protect yourself and who can help. Possible warning signs of a predatory loan

It sounds too easy: "Guaranteed approval" or "no income verification" sometimes indicate that the lender doesn't care whether you can afford to make the payments over the long haul.
Excessive fees: Make sure fees are typical of those in your market. Because these costs can be financed as part of the loan, they are easy to disguise or downplay. On competitive loans, fees are negotiable. It is common for home buyers to pay only one percent of the loan amount for prime loans. By contrast, a typical predatory loan may cost five percent or more.

Large future costs: High-risk adjustable rate mortgages with payments that rise substantially after a short introductory period are seldom appropriate for families who already have had problems repaying other loans. Home buyers should also avoid a large, single "balloon" payment (a lump sum due at the end of the loan's term).

Closing delays: A lender who deliberately delays the closing may be waiting for the commitment on a reasonably-priced loan to expire.

Over-valued property: Inflated appraisals can allow for excessive fees to be included in the loan, resulting in the borrower owing more to the bank than the home is worth.

Barriers to refinancing: Prepayment penalties can make it hard for borrowers to refinance and take advantage of a lower-cost loans.

No down payment loans: These loans may be split into two mortgages, with one having a much higher cost. Home buyers should be sure they can afford the payments.

Unethical document management: An ethical lender or broker will always require you to sign key loan papers, and they will never ask you to sign a document dated before the date you sign it.
Some common problems associated with predatory lending

Nearly all predatory lending occurs in the "subprime market," where loans are sold to people with less than ideal credit histories. Subprime loans have played an important role in helping millions of consumers achieve homeownership, but, unfortunately, some lenders abuse their role and take unfair advantage of vulnerable borrowers. Here are some common problems with predatory loans:

High interest rates and fees: Predatory lenders often charge extremely high interest and fees that are added into the total amount of the loan the borrower must repay. These lenders charge what they can get away with, not a fair amount based on the credit history of the borrower.

Broken promises & bait and switch: Sometimes home buyers are offered a new loan or a refinance of an existing loan that seems to meet all of their needs--only to find that interest rates and fees have changed when they get to the closing table. Agreeing to last-minute changes can cost thousands of dollars and result in a loan they just can't afford.

Loans that start low and go high: Adjustable rate loans are popular in today's market, but many that seem affordable are likely to have steep cost increases in the future. Avoid "payment shock" by considering whether you can pay for the loan both now and in the future.

Loan "flipping": Too many homeowners are persuaded to refinance their mortgage, sometimes repeatedly, when there is no real benefit. Even when a family receives some cash from a refinance, the gains should be weighed against the costs of excessive fees and a higher loan amount.

Steering: Some families who receive subprime loans could qualify for a much more affordable home loan. Predatory lenders use aggressive sales tactics to steer families into unnecessarily expensive loan products.

Ask the right questions when shopping for the lowest-cost loan REALTORS® develop relationships of trust with the families they serve, and can help you avoid predatory loans by encouraging careful shopping. Ask these important questions:

What is my credit score? Can I have a copy of my credit report?
What is the best interest rate today? Do I qualify?
Is the loan's interest rate fixed or adjustable?
What is the term (length) of the loan?
What are the total loan fees?
What is the total monthly payment? Does this include property taxes and insurance?
If not, how much will I need each month for taxes and insurance?
Is there an application fee? If so, what is it, and how much is refundable if I don't qualify?
Are there any prepayment penalties? If so, what are they and how long do they last?

If the loan is an adjustable rate mortgage (ARM), ask:

What is the initial rate?
How long will that rate stay in effect?
How is the adjusted interest rate determined? (Generally, a specified amount-the "margin"-is added to a current published rate-the "index.")
How often can the rate change?
How much can the rate go up each year and over the life of the loan? What is the maximum monthly payment you could be required to pay? Would you be able to afford it?
Does the loan set a minimum interest rate?
Do the monthly payments gradually decrease the amount you owe even if interest rates increase? (With some loans, the amount you still owe can increase rather than decrease each month-called "negative amortization.")
Does the interest rate increase if your payments are late?
Could you qualify for a loan with the maximum interest rate permitted under the mortgage?
If not, do you anticipate earning more in the future so you will be able to afford the higher payment?
Can the adjustable rate mortgage loan be converted (changed) to a fixed rate without refinancing into a new loan? Is there a charge to convert?

Other ways home buyers can protect themselves from predatory lenders

Check out lenders with the Better Business Bureau, government websites, or other consumer groups. How long has the lender been in business? Have consumers filed many complaints? Does the lender belong to a trade association with ethics requirements for its members?
Refuse to participate in transactions that may be fraudulent.

Share predatory lending "horror" stories with regulators, other consumers, REALTORS®, counseling groups, housing professionals, and the media.

Make contracts subject to the homebuyer receiving approval from a lender for a fair and affordable loan.

Avoid unnecessary contract extensions that could cause the lender's loan commitment to lapse.
Get educated on the value of your home by asking your REALTOR® for a comparative market analysis.

Review the HUD-1 closing statement before closing. Upon request, home buyers have the right to see this information 24 hours before the loan closing.

Report possible violations to appropriate federal, state and local officials.

This information is from the brochure, "Shopping for a Mortgage? Do Your Homework First," published by the NATIONAL ASSOCIATION OF REALTORS® and the Center for Responsible Lending. At Realtors.com

Information provided by the National Association Of Realtors

Make the Holiday Season Marry and Bright

Holiday Home Safety TipsHome decorations help make the holidays joyful and festive for friends and family. While you are stringing the lights and spreading warmth and cheer, one of the most important considerations is how to keep your house and family safe from fire and injury.

“A home fire, gas leak or electrical accident can be especially devastating during the holiday season,” says Sue Dempsey, vice president, North American sales & marketing, CSA International. “Yet a few indoor and outdoor safety precautions can help protect your family and achieve comfort and joy during the holidays.”

CSA International, a leading North American product certification and testing organization, offers these important tips for safe holiday decorating: CSA’s Top Twelve Tips for Holiday Home Safety

1. Going out? Lights out! Always turn off holiday lights when you leave the house unattended or when going to bed.

2. Don’t be dismayed, but discard the frayed. Carefully inspect holiday light strings each year and discard any frayed cords, cracked lamp holders or loose connections. When replacing bulbs, unplug the light string and be sure to match voltage and wattage to the original bulb.

3. Help your tree resist a fire. Try to purchase a freshly cut tree, as they are more resistant to fire. Keep your Christmas tree watered and far away from open candles. When using an artificial tree, choose one that is tested and labeled fire resistant. Regardless of the type of tree, place it away from heat sources such as radiators or fireplaces.

4. Contain any flames. Don’t use open flames or candles on or near flammable materials such as wreaths, natural trees or paper decorations.

5. Check for a certification mark. When purchasing light strings, extension cords, spotlights, electrical decorations, gas appliances or carbon monoxide alarms, look for the certification mark of an accredited certification organization such as CSA International, UL or ELT to ensure that the products comply with applicable standards for safety and performance. Also know the warning signs of counterfeit – and potentially unsafe – decorations, products and gifts. These warning signs include missing parts, instructions, safety features or warrantees; packaging with spelling mistakes or poor graphics; or products significantly lower-priced than all other brands.

6. Use one and be done. Never connect more than one extension cord together; instead use a single cord that is long enough to reach to the outlet without stretching, but not so long that it can get easily tangled.

7. Don’t meddle with outdoor metal. When hanging outdoor lights, keep electrical connectors off the ground and away from metal rain gutters. Use insulated tape or plastic clips instead of metal nails or tacks to hold them in place, and be sure to choose the correct ladder for the job.

8. Remember that timing is everything. Use a certified outdoor timer to switch lights on and off. Lights should be turned on after 7 p.m. to avoid the electricity rush hour.

9. Keep the gas behind glass. Do not use your gas fireplace if the glass panel is removed, cracked or broken. Only allow a qualified service person to replace fireplace parts.

10. Be alarmed. Be sure to install smoke and carbon monoxide (CO) alarms on every level of your home – especially near sleeping areas – and test the alarms monthly.

11. Be a friend to your furnace. To help prevent CO hazards in your home, have a qualified heating contractor perform a yearly maintenance check of your furnace and venting system, and clean or replace your furnace filter frequently during the heating seasons.

12. Clean the clutter. Do not store combustible materials such as gasoline, propane, paper, chemicals, paint, rags and cleaning products near your gas furnace. Gasoline or propane cylinders should only be stored outside the home.

For more information on holiday decorating and products that have been expert-tested and meet recognized standards for safety or performance, please visit www.csaholiday.com.

Courtesy of ARA Content

NY Times - Borrowers Face Dubious Charges in Foreclosures

Own a home you must click on link and read this story! Always read the fine print and question everything. It may cause haveick with your lown officer but it could save you time, money and your home. Please note not all lenders are like this.

"On Oct. 9, the Chapter 13 trustee in Pittsburgh asked the court to sanction Countrywide, the nation’s largest loan servicer, saying that the company had lost or destroyed more than $500,000 in checks paid by homeowners in foreclosure from December 2005 to April 2007.
The trustee, Ronda J. Winnecour, said in court filings that she was concerned that even as Countrywide misplaced or destroyed the checks, it levied charges on the borrowers, including late fees and legal costs.

“The integrity of the bankruptcy process is threatened when a single creditor dishonors its obligation to provide a truthful and accurate account of the funds it has received,” Ms. Winnecour said in requesting sanctions."

http://www.nytimes.com/2007/11/06/business/06mortgage.html?_r=1&th=&adxnnl=1&oref=slogin&emc=th&adxnnlx=1194365165-2GmGfie1llmsb0MzqpJbZQ

Plam Springs International Film Festival

Palm Springs International Film Festival
Official Souvenir Program Guide

Advertising Space Deadline: 11/30/2007
Materials Deadline: 12/7/2007

The 19th Annual Palm Springs International Film Festival, January 3-14, 2008, will feature a line up of more than 230 films from 65 countries, seminars, special events and Gala receptions. The Breakthrough Performance Award will go to Marion Cotillard for her performance as Edith Piaf in La Vie en Rose. Emile Hirsch (Into The Wild) and Nikki Blonsky (Hairspray) each receive the Rising Star Award at the Festival’s Awards Gala. More special guests will be announced as the Festival dates approach.

With over 120,000 attendees, PSIFF has one of the largest and most affluent festival audiences in America. During the PSIFF, the eye of the entertainment industry will be on Palm Springs and the Coachella Valley. Take advantage of the unique opportunity to be an advertiser in the official Festival Program Guide. Create high-profile awareness for your product or service by reaching an exclusive group of upscale decision makers.

The program guide is a combination of coffee table book and magazine and is carried by attendees throughout the festival as a visible reference tool. It is retained long after the festival as a souvenir and has a long shelf life.

In addition to festival attendees, the following VIPs receive the guide: key media representatives; each of the 1,200+ attendees and honorees at the Black Tie Awards Gala; each filmmaker and festival industry guest.

The Palm Springs International Film Festival, now in its 19th year, has secured its place in the global market as the portal for the best in international cinema, earning the respect of domestic and foreign filmmakers, filmgoers and trend watchers. This confluence of art and commerce brings together world class celebrities, award-winning filmmakers and audience members in record numbers while creating the ideal promotional environment for you and your advertising message.

With the ongoing support of corporate and community partners, the Palm Springs International Film Festival is now one of the largest in the nation. It represents a unique opportunity for you to reach a broad demographic, as well as highly influential and celebrated members of the national and international filmmaking communities.

Call today to reserve your space:
Janet Spiegel 760-567-7639 Janet@psfilmfest.org
Deborah Godley 760-485-2704 Deborah@psfilmfest.org

Asylum One of Palm Springs Best Home Stores

Asylum on of Palm Springs best stores for Furniture, Artwork, Lighting, Accessories, Rugs and Gifts just celebrated its first anniversary on Friday Night. If you have not been to this store at 844 N. Palm Canyon Dr. you need to go. Palm Springs is in great need of stores of this caliber and the only way that it will stay in business and grow is with our support. Tel 760-864-1171, www.asylumhomestore.com

Shop in Palm Springs we have some of the best boutiques in the valley.

Mortgage Rates Fall - Time to buy

Mortgage rates have fallen to lows not seen in five months, according to the latest weekly report from Freddie Mac.
The average interest for 30-year fixed loans was 6.26 percent, compared to 6.33 percent a week ago; and this was the lowest level since rates averaged 6.21 percent during the week of May 17. "Continued market concerns about weaker economic growth and further declines in the housing market have kept mortgage rates low over the last few weeks," according to Frank Nothaft, chief economist at the mortgage finance giant.
Also, rates on 15-year fixed products fell to 5.91 percent from 5.99 percent last week; rates on five-year adjustable rate mortgages declined to 5.98 percent from 6.03 percent; and rates on one-year ARMs slipped to 5.57 percent from 5.66 percent a week ago.

PS Chamber of Commerce board of directors - Yes on C

PALM SPRINGS, CA (October 31, 2007) – During a special meeting today of the Palm Springs Chamber of Commerce board of directors, the Board voted in favor of endorsing a “Yes” vote on Ballot Measure C.
Ordinance No. 1689, passed by the City of Palm Springs on May 17, 2006, will grant a ten year extension (to June, 29, 2016) of the Development Agreement between the City and Shadowrock Real Estate Development LLC. Through Ballot Measure C, voters of the City of Palm Springs will determine whether Ordinance No. 1689 and the ten year extension of the Development Agreement should be approved.
“The board considered, very seriously, all the arguments articulated by both sides of the Measure,” said John Pivinski, Chamber CEO. “And is confident the developer and the City have appropriately and completely taken every precaution to preserve the natural beauty and environmental integrity of the Chino Cone,” Pivinski added. Shadowrock brings the possibility of stimulating new business and commercial growth by adding a world class destination five-star resort and golf course that will attract new visitors to Palm Springs boosting our local economy.“We hope that the voters will make their decision based on facts and truths, and not the ardent rhetoric of an impassioned few.”