… the credit markets recover.  One program that the Fed used to get credit flowing again is the Term Asset-Backed Securities Loan Facility, or TALF.  Now, many people are concerned as to whether or not the credit markets will be able to stand on their own at the end of December, because that is when the program is set to expire.

The current program is allowing the Fed to make loans available to investors for the purchase of asset backed securities, otherwise known as ABS.  Asset backed …

Tags: Asset-backed security Federal Reserve System Financial services TALF Term Asset-Backed Securities Loan Facility

… The article said:

“Effective Aug. 15, financially troubled homeowners who have an FHA-insured loan can apply for a modification under a program parallel to “Making Home Affordable” to help lower their payments and avoid foreclosure.”

Currently the FHA backs about 5 million loans made to low-income borrowers and those with poor credit. Beginning in August, FHA homeowners facing foreclosure may be able to receive reduced mortgage payments in an effort to avoid foreclosure. But …

Permalink: /foreclosures/fha-homeowners-will-qualify-for-loan-modification/

A Loan Modification is a permanent change in one or more of the terms of a homeowner’s loan. It allows the loan to be reinstated, and results in a payment the homeowner can afford.

The homeowner must reach an agreement with the lender to modify the loan. Generally the lender will be a little reluctant to agree for a loan modification as modification typically results in less interest.

The …

Tags: loan modification

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… bankruptcy and keep their home?  The short answer is no.  A debtor can discharge the home equity loan in Chapter 7 bankruptcy but they cannot discharge it AND keep their home.  However, if a debtor would like to keep their home, they may be able to file Chapter 13 bankruptcy and repay both their HELOC and their mortgage over a 3 to 5 year period. If, after completing your Chapter 13 bankruptcy repayment plan, there is a balance on your HELOC loan that may be discharged, effectively …

Tags: Bankruptcy Chapter 7 Bankruptcy HELOC Home Equity Loan

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… of the worse pieces of advice given to debtors considering bankruptcy is to get a home equity loan.  That could be a big mistake.  Here a few reasons why getting a home equity loan to avoid bankruptcy might not be the right move for you:

Typically, you can’t use debt to get out of debt. Anyone who has filed bankruptcy can attest to that truth.  For most debtors considering bankruptcy, their financial troubles are caused by two problems, 1) lack of income and 2) too …

Tags: Bankruptcy Debt Home Equity Loan loans

Permalink: /bankruptcy/three-reasons-why-you-shouldn%e2%80%99t-get-a-home-equity-loan-to-avoid-bankruptcy/

… House of Representatives approved legislation last week that would cut major banks and student loan giant Sallie Mae out of a large slice of the $92 billion university student loan business if passed by the Senate.  Under the bill H.R. 3221 –the Student Aid and Fiscal Responsibility Act of 2009, all new student loans would originate with the Direct Student Loan Program as of July 1, 2010. Many big banks and their supporters are lobbying hard to crush the legislation in the Senate so …

Tags: Business Education Loan Sallie Mae Student loan United States House of Representatives

Permalink: /student-loans/big-banks-may-be-locked-out-of-student-loan-subsidies/

… According to the Center for Responsible Lending, the proposed legislation allowing mortgage loan modification in bankruptcy could help 600,000 families avoid foreclosure.

Under the proposed plan allowing mortgage loans modification in bankruptcy, only homeowners with an existing mortgage would be eligible for mortgage loan modification in bankruptcy. Also, the homeowner would have to prove to the bankruptcy court that he/she attempted to modify the mortgage loan with the mortgage …

Comment by jede ferrani: … your home loan. Thanks for sharing. Many people …

Permalink: /loans-mortgages/citigroup-backs-loan-modification-in-bankruptcy/

The Dallas Morning News reports that in 2009 Texas will allow senior citizens with long-term healthcare insurance to keep more of their personal savings if they need to use Medicaid. Texas insurance officials will offer “private partnership policies” that will offer asset matching protection for those who purchase long-term healthcare insurance. For every dollar an individual uses in coverage from a long-term healthcare insurance policy he/she will be allowed to keep that same …

Permalink: /breaking-news/texas-gives-seniors-a-break-with-long-term-health-care-insurance-partnerships/

… institutions. The bill calls for the government, as a shareholder of a large number of mortgage securities, to "encourage" loan servicers to modify more troubled loans and for servicers of mortgages to do all they can to stem foreclosures. But there is no specific language requiring mortgage servicers to adjust mortgage interest rates in the case of ARMs as was the case in Senator Dodd’s proposal. This new proposal is much weaker in protecting homeowners and does nothing to …

… feet.”  While in theory it seems to be possible to avoid bankruptcy by taking out a personal loan and using that to survive until you can get another job or more income, it rarely works out that way.  Here are three things you need to consider before you take out the personal loan in the hopes of avoiding bankruptcy:

Are you being rushed into taking out a personal loan by someone else?  Is your spouse, relatives or even your creditors suggesting that you should take out a …

Permalink: /loans-mortgages/three-things-you-must-consider-before-you-take-out-that-loan/

… But the Avenue Capital supported bankruptcy plan would include a $150 million revolving credit facility, a $680 million term loan, and a financing commitment of $150 million from Time Warner Inc. Time Warner characters, such as Bugs Bunny, are featured at the company’s theme parks.  Also, Six Flags’ bankruptcy plan includes a $450 million rights offering that would give Avenue majority control of the company.  Junior noteholders would only be left with a 7.3 percent equity stake, …

… Ways To Discharge My Student Loans Besides Bankruptcy? ”, a debtor who cannot discharge their loan in bankruptcy can receive a discharge if they are permanently disabled, dead (and in the case of PLUS loans, the parents will receive the discharge) or a veteran who has been permanently disabled in the line of duty.  Let’s take a look at some other ways to discharge your student loan.

You may receive a discharge of you student loans if your student loan was falsely certified. Student …

Permalink: /bankruptcy/are-there-other-ways-to-discharge-my-student-loan-besides-bankruptcy-part-ii/