Posted by admin on November 13, 2008 · Leave a Comment
Candidate Obama promised to make changes to the financial structure of the country, and mostly as a pro-consumer advocate and financial analysts are saying that he may in fact institute a credit card bill of rights. What this basically means is that the industry has been ripping off people for years and they haven’t made us aware of any of the loopholes that they keep catching consumers in.
Obama, the candidate, put forth a pro-consumer platform that includes:
- Creating a credit card rating system similar to the five-star rating system used for other consumer products to assess card features. Issuers would be required to display the rating on all credit card applications and solicitation materials.
- Establishing a credit card bill of rights to ban universal default, prohibit unilateral changes to contracts and prohibit charging interest on fees.
- Reforming bankruptcy laws to allow families with huge medical bills to have their medical debts forgiven and allow homeowners filing for bankruptcy to adjust the terms of their mortgage so they can keep their homes.
- Capping interest rates on payday loans at 36 percent and requiring clear disclosure of loan terms.
Financial analysts, however, warn that these changes need to be made swiftly and in the beginning, as that is the platform that he ran on and that is what American’s are looking for. If he waits too long, the excitement for change may be gone, and then it will be too late. Many people believe that since this is what the people want Congress will probably try to get a consumer friendly bill signed by Bush before he leaves office, however there are others that think this is doubtful at best.
Honestly, we need something to help out the people in this country and although many people oppose Obama’s thoughts, especially those on finance, I think that overall we must do something to help the unemployed and the people who are losing their homes to foreclosure. Something must be done to stop the madness, and the truth is doing something is better than doing nothing, so I guess we will see how this all pans out. Things can’t get any worse than they are…or can they?
Filed under Financial Changes · Tagged with advocate, bankruptcy, bankruptcy laws, bill, bush, candidate, card, changes, charging interest, consumer friendly bill, consumer products, consumers, credit card, credit card applications, credit card bill of rights, default, disclosure, fees, financial, financial analysts, financial structure, foreclosure, loan terms, loans, loopholes, losing their homes, medical bills, mortgage, Obama, payday loans, platform, pro-consumer, rating, reforming bankruptcy laws, terms
Posted by admin on August 20, 2008 · Leave a Comment
Honestly, when I first heard that a family who had a home built for them by the popular TV show, Extreme Makeover Home Edition, was having their house foreclosed on I honestly thought, wow what a waste. I mean you get a customized home built for you for free, and then you wind up having this home foreclosed on. Well, I heard an interview with the husband and wife who are living in the home and it changed my mind. They did have a beautiful home built for them, when they received the home, they were also given a $100,000 home maintenance fund but they did still have to pay the mortgage, which was the equivalent of what they were paying before the makeover and the taxes, which stayed the same for the first few years and then went up. This couple said that the home itself was costing them $6000 per month to keep up, and in addition to that they have a large family which also included some children with special needs, they didn’t really get into the special needs of each child. In any case, these people said that in addition to almost losing their home and being in financial ruin which is difficult enough, that they were receiving hate mail and threatening letters from viewers of the show who were angered to hear that they might be losing the home the show gave them. Honestly, I learned some things about home ownership in watching this show. I didn’t realize that there is something called a homestead protection, which says that if you own a home the only person who can sell that home out from under you is the mortgage company, however, once you take out a home equity loan, even if it is just for a very small amount, then they can come and sell your home out from under you if you don’t pay back the loan. For instance let’s say you borrow $10,000 dollars off your home, but your home is worth $500,000 if you don’t pay that loan, then that company can come and sell that home right out from under you to get back their $10,000. I didn’t really realize that it worked like that. In any case, these people did borrow money off their Extreme Makeover home, but it was really to put their kids in a rehab program and to start a new business. They didn’t just go out and blow the money and lose the home as some reports might make you think. This just goes to show that anyone can have their finances spiral out of control, it just takes a few mistakes and you can very easily find yourself in a hole without a shovel.
Filed under Debt, Prices Out Of Control · Tagged with finances, financial fuin, foreclosed, home, home equity loan, home ownership, house foreclosed on, mortgage, mortgage company, taxes