Are unions alienating themselves from the workplace or do workers see no value in them?

 If there ever was an opportune time to organize a union, now is the perfect time.  More and more companies are hiring temporary workers to avoid having to pay employee benefits.  They work them for short periods of time and then lay them off and hire a new round of temps to replace them. Numerous wage and safety violations occur every day in practically every industry because there are no employee advocates to protect them. The problem is most unions in the public and private sectors are complacent and are only concerned about holding onto their current membership.  Union membership in the private sector declined from 35.7% in 1935 to 6.6% in 2012. Part of the reason is that they have done very little to increase their presence within the work place where they have collective bargaining agreements.   In addition, where public employee unions are concerned, they make very little effort to instill political awareness within its membership rank and file.  In addition, they fail to create effective community awareness on issues that concern them most; job security and contracting out of public services.

While it’s true unions spend billions of dollars on political campaigns supporting candidates, they have done very little to align themselves with other community groups, such as churches, seniors, minority groups, and civic organizations.  During the heyday of union activity in the 1930s-1970s unions were effective in winning many bread and butter issues like limiting the work day to eight hours, overtime pay, sick leave, vacation, holidays, workplace safety, and other important causes. The point is, they didn’t do it alone. They had the community behind them.

Hubert Humphrey once said, “The history of the labor movement needs to be taught in every school in this land . . . America is a living testimonial to what free men and women, organized in free democratic trade unions can do to make a better life . . We ought to be proud of it!”

Recently, the City of Fresno’s blue collar unit represented by the Operating Engineers, Local 39 fought the city and won. This was a classic case of a Mayor and a city council majority who supported the idea of privatizing the city’s solid waste division to help balance its deficit ridden budget. In order to do this, they targeted areas where there was least resistance. Had it not been for an effective political campaign by Local 39 and its ally employee associations representing the city’s white collar workers and the police force, over 170 solid waste employees would have eventually become unemployed.  However, this whole dilemma could have been avoided if the union had a strong presence in the workplace. This wasn’t the first time the contracting out of city services had been proposed in Fresno, and it won’t be the last. Without a strong union presence in the workplace, decisions to contract out union services are inevitable.

Over 200 Arrested

Fresno Municipal Strike 1974

In 1974, the City of Fresno had a strong city manager form of government.  There existed a great animosity between the union and management. At that time, the city’s same blue collar workers were represented by the American Federation of State, County, and Municipal Employees (AFSCME), Local 2051. The relationship between the union and then City Manager Ralph Handley was immature to say the least. It took a municipal strike of over 500 city blue-collar employees from the city’s solid waste division, sanitation, street, parks, mechanic shops, and other departments to come to terms in contract negotiations over wages, hours, and working conditions.  Over 207 city workers, friends, and family members were arrested on the 3^rd day of the strike and hauled away to jail in municipal buses. There weren’t enough paddy wagons to transport them all. Community support from members of La Raza Unida, the United Farm Workers, and other groups supported the union during the strike. The strike lasted seven days and arrests were made every day. Although the city did recognize the union as the representative of its blue collar workers, it did not take

them seriously until the after the strike. In the end, the union won wage increases, job security, and most of all respect. The relationship between the City of Fresno and the union matured in the years following the strike. In July of 1979, the same union went on a week-long strike in the City of Clovis and won wage increases, increased contributions toward employee health premiums, and job security. The city had proposed contracting out its solid waste division as well.

Organized labor should stop taking the easy approach to organizing new workers and go back to the basics. They seem to forget that workers must actually want to be represented by a union, not be drafted into one. That means they must take the necessary steps to approach these workers on a one-on-one basis or have meetings with them to assess their priorities.  In addition, they should help them develop an effective shop steward system at their places of employment. Such an approach only enhances the relationship between the union and its members.  Union members must take ownership of their union and participate in solving its own problems. Taking legal action or boycotting companies that are not already unionized only has a tendency to alienate workers like a new stepfather does to children in a broken marriage.

 It’s not true that workers simply do not want to join a union if they had the choice.  Workers have plenty of reasons to join a union in today’s economic environment.  Companies are placing more emphasis on profits and the gap between the rich and the poor has practically eliminated the middle class.

As more states are adopting right to work legislation that allow workers to opt out of mandatory unionization, its time organized labor re-create itself into the type of organization that workers were once able to control.  They've given up huge concessions to management both in wages and benefits only to see the political tides falling against them.  Have they forgotten that there’s strength in numbers?

Is Now the Right Time for Home Buyers or Sellers?

Now is not the time to straddle the fence if you are thinking about buying a home or investment property in Fresno. Why? Because home prices are starting to increase and home buyers are bidding on desirable homes in nice neighborhoods. Listing agents are receiving 3 – 6 offers per property due to the demand for nice homes. The longer you wait, the more expensive it will be later. Also, interest rates are still low, but they too will begin to rise as the market gets into full swing. 

If you are waiting for home prices to bottom out, well you’re too late. Home prices bottomed out over a year ago and are not expected to be as low for anytime in the foreseeable future. If you don’t know the condition of your credit, you better get on the ball and start taking a close look at what corrections you need to make to increase your credit score so you can qualify for a home loan. I used to originate loans for home buyers and I know what needs to be done to increase credit scores. I do this for free as a courtesy for my clients before they begin making offers. I just want to make sure there are no surprises during the close of escrow.

We are definitely in a Seller’s Market as there are fewer and fewer homes for sale and home prices are on the rise. If you are thinking about selling your home, now is the BEST TIME to list it. Don’t waste your time trying to sell it yourself. There are too many potential problems you may run into. Due to recent changes in the law, sellers can be sued for any variety of problems where disclosures were required, but buyers were not provided the correct disclosure forms identifying issues involving the property they just purchased. Doing it yourself is ok for small fix-ups but selling your home is for a professional, a Realtor, who knows what he/she is doing. It’s not worth the risk. Realtors are professionals at buying and selling homes. If you want more information, visit my website:  www.ListingsFresno.com 

Understanding Divorce and Protecting Your Interests

Filing for divorce is never easy to go through, but it is possible to end a marriage peacefully with very little difficulty. However, this is not always the case in many divorce proceedings.

The divorce lawyers are usually the only ones that truly win big in the long run. A long drawn out divorce proceeding can be extremely overwhelming for both the parties, emotionally and financially. The longer it takes to settle a divorce, the longer the conflict continues. This can create huge legal fees for both sides. However, it doesn’t have to be this way if you obtain the assistance of a qualified legal document assistant or paralegal.

Most often, both parties will agree on the settlement and other pertinent matters without an attorney and the final dissolution can take place fairly quickly. It is possible this can all happen before the mandated waiting period is up and both parties can agree on what is fair.

There can be many questions about the divorce procedure and they need to be addressed. The procedure usually starts with a divorce petition that is initiated by one spouse (the Petitioner) and served on the other (the Respondent). The petition, which includes detailed information about the marriage, is also filed with the clerk of court in the county where you live. The petition includes many facts about your marriage including the names of the husband and wife, the date and place of marriage, names of any children resulting from your marriage, separate or community property held by you or your spouse, child custody, child support, spousal support, and any other issued that needs to be addressed before dissolution of the marriage is finalized. A properly filed divorce requires that the respondent spouse be given reasonable notice that the divorce petition has been filed, either in person or by a process server. The respondent then has a given amount of time to answer or file a counter-claim if one is necessary. If both parties agree on the terms of a settlement, a court hearing is not required and the divorce will be final.

The American Dream, Myth or Reality?

The great American Dream has always revolved around owning a home। Sure, having the 2.3 kids, the cushy corporate job and the stylish car to drive to work everyday are part of the myth, but nothing quite summed up Americana quite like the white picket fence. But now that the housing bubble has finally burst, it is becoming, once again, much easier for first time home buyers to experience the American dream.

This is may be a piece of good fortune for first-time buyers who were recently priced out of housing markets all across the country. In addition, housing experts point to the drop in home prices in the last 2 years, as well as lower interest rates, as incentives buy now before rates go back up. However, stagnant wages during this period have remained the same।

According to data released by the United States Census Bureau, an increasing number of homeowners are spending a much larger share of their incomes on housing than in previous years। In 49 out of 50 states, people reported an increase in the amount of their incomes spent on housing. The only state that didn’t, Alaska, spent the same amount. The report showed that people are spending around 31 percent on their housing needs, up from 19 percent in 1999.

The current recession has had a huge impact on household incomes. The Census Bureau report showed that income has actually dropped, not risen, over the past 10 years, down 2.8 percent.

Maybe the worst news in the report was the percentage of people who allot more than 31% of their income for housing। National guidelines suggest that more than 31% of household income for housing is excessive and not financially healthy.

Things appear to be the worst in California। Not only do they have the most expensive real estate in the nation, 48 percent of California homeowners spend more than 31% of their income on housing related costs. Coupled with purchasing homes with risky loans, its no surprise California is within the top 5 states with the highest number of foreclosures.

Regardless of the bad economy, the opportunity to purchase a beautiful home at a reasonable price is now! It makes no sense to rent when the cost of owning a home is affordable right now. So, go find yourself a realtor experienced in REO (real estate owned) and short sale properties and start your home purchase journey.

Buying Your First Home: Myth or Reality?

The idea of owning your own home, just like your parents did, is something many young couples dream of. For many young adults the affordability of owning a home is much better now than it was five years ago. Property values are starting to bottom out now and monthly payments are down to the lowest levels in several years. In addition, interest rates are low and the availability of homes is high. But there are still some obstacles to buying a home. These obstacles can be overcome if you have the right realtor working for you.

Ever since the housing crisis began, several banks have tightened up on financing home mortgages. They’ve made it difficult for first time homeowners to get loans. In addition, Congress has passed several new laws, one of them changing the method in which houses are appraised, making it difficult to get a true value on homes which are located in declining market areas. Practically every neighborhood is in a declining market area. Many would-be buyers are often thrown out of the market when their offers to purchase bank owned properties are rejected because of low values, which sometimes fall lower than the agreed purchase price.

Even though the Obama administration has bailed out many of the major banks with government issued stimulus funds, these same financial institutions are making it very hard for first time home buyers to get loans. Even with excellent credit histories, these same home buyers are finding it difficult close escrow and get their house keys handed to them for the first time. For instance, if a home buyer has been pre-qualified by a lending institution of their choice, he/she may still have to get approved by the bank that owns the property. Even though they might have qualified with the first lender, they may not with the 2nd lender. These days practically 90% of all home sales are properties owned by banks.
While buying your first home is never easy, things may be a bit harder if you don't have an experienced realtor working at your side. But bargains do still exist, and if you’re patient, a first home can still become a reality with the right realtor.

The Politics of Gas

As gas prices have become more tolerable, most motorists are still holding back on travel due to a poor economy. Some folks are still clinging to their beliefs of a conspiracy by middleast oil moguls and Texas oilmen. A recent poll of Americans showed that a staggering 42 percent of respondents believe that prior to the November 2008 election, George W. Bush and the ruling Republican administration in Washington lowered gas prices in an attempt to benefit the Republican ticket. While this may or may not be the case, the real time impact on the price of oil was caused by various stock markets around the world and how it ultimately affected the price of gasoline.

However, the most logical reason for the lowering of gas prices might actually have been Mother Nature. Many investors on Wall Street and around the world invested heavily in gas and oil futures, anticipating that another direct hit by a Katrina-like storm directly on gas and oil pipelines in the Gulf of Mexico would send prices through the roof. But hurricane forecasters around the world downgraded the threat of the recent hurricane season and caused the price of oil to plummet. This caused hundreds of investors who bought futures to lose a ton of money on their investments. This also caused consumers to smile at the gas pump.

But it wasn’t just the hurricanes that did it. The announcement coincided with the end of the summer season for drivers. As demand for oil shrank, so did the price of oil. It doesn’t take long for a drop in oil prices to be felt at the pump.

This huge shift in oil and gas prices over such a short amount of time left many investors in deep financial trouble. At least one mutual fund that invested heavily in oil and gas futures went belly up due to the dramatic drop in prices. At the same time, there were other funds that did quite well despite the huge drop in oil prices.

While it may seem logical to think that global politics do play a part in the world’s commodity markets, it is naïve to think that the sole reason for the massive drop in oil prices was due to who would be the next president. The number of variables that play on the world’s stocks, bonds and commodities are too incalculable to even think that prices were solely influenced by on one country’s election.

Flipping a House – Is it Right for You?

Most of the reality shows related to buying a fixer-upper house and selling it for a profit, make it seem easy, but is it really? Most people think they know what all is involved, but they don’t. Its unbelievable how easy it is to get into trouble if you don’t know what to look for in finding the right house to buy and knowing how much money it will take to make it marketable so you can find the right buyer and unload it quickly. Can the process really be that easy? Let’s take a closer look.

The first step is analysing your finances to see if you can afford to take on your new monthly mortgage payment and still have the funds remodel it. You should have an idea as to how much your total budget is going to be and factor in closing costs and other related issues that my pop up such as; inaccurate contractor estimates, the time it will take to complete the project, and additional money required for mistakes and other losses, as well.

Once you’ve got an iron-clad budget, the next step is to find a home that you think is marketable. Most people go into these projects with a property already in mind, but for some, searching for a the right house that is within their budget and, at the same time, will be sellable can be extremely difficult. There are many people out there looking to fixer-upper houses that they can flip, so finding the right one can be difficult.

Once you’ve picked your property, you have to go through the buying process. Expect delays, especially if it is a short sale, and make sure you have the property appraised correctly. Most banks will send out their own appraisers to determine the current value. However, due to the current housing crisis, an independent appraiser is a necessity. Also, be aware that closing costs can fluctuate dramatically.

Once the house is all yours. Now what? The best thing to do is to bring in an expert to help you see everything that needs to be done. From electrical to plumbing to interior design, flipping a house the right way is a huge job, and you have to be prepared to spend the money.

Once renovations have started, be prepared to dedicate as much time as needed to the project. You don’t want someone else making decisions just because you were not there. The repairs that you can do yourself will save you money, but don’t be afraid to call in an expert for the big jobs.

Once the property looks like it should, have it reappraised, don’t be afraid to embrace non-traditional methods of selling it, like the Internet or out-of-town newspapers. If after a few weeks you don’t find a buyer, find a realtor you can work with to list it for you. You need as many eyes on your newly renovated house so you can unload it as quickly as possible and stop making payments on it. The longer the property sits there, the less successful your house flip will be, so be creative.

House-flipping has become one of the most fashionable ways to make money for hard working people. But be prepared to go into your investment with your eyes, and your wallet, wide open.

The Short Sale Dilemma

Real estate short sales provide an unusual opportunity for a banking system flawed with incompetence and greed. It absolutely makes no sense for would be homeowners to even consider making an offer to purchase a short sale property. The process is supposed to help delinquent owners of short sale properties avoid foreclosure by allowing them to sell their homes before they go to auction, but does it really? Anyone familiar with the process will tell you that purchasing a short sale property is not only frustrating, but a very long, and sometimes, never ending process. Normally, if a person makes an offer to purchase a home, that buyer can assume that escrow will close within thirty days or less. This is not the case with a short sale. The length of time for a short sale to close escrow can be as long as six to eight months if home buyers wish to wait that long.

Its obvious that mortgage lenders who hold the liens on these short sale properties are not in a hurry to sell them or get their money back. And why should they? They are being fed intravenously with taxpayer money. Unfortunately for buyers and sellers, mortgage lenders have the final say on the terms of these sales. What’s ironic is that the same American taxpayers who are being disenfranchised by this entire process are bailing them out financially.

What makes matters even worse is that mortgage lenders are capable of selling their loans to the so-called secondary market made up of individual investors. Once a mortgage lender sells a homeowner’s loan to the secondary market, it becomes very difficult to track down who the individual investors are and get them to agree to the terms of these short sale transactions. Most investors expect to make a dollar out of fifteen cents, not the other way around. They have a hard time accepting the fact that property values are much less than the mortgage notes that they originally purchased when the market was booming. Quite often investors will reject the terms of a sale even when the appraised value of the property matches the sales price. Hence, the situation changes from need to greed and nobody wins.

Obama Versus The Banking Cartel – Round 1

Trying to tame a deregulated banking system that was allowed by the previous administration to make deals no one could refuse will require more than a war of wills. The first infusion of government funding resulted in little more than the banks responding like mafia bosses saying, “forget about it, we’ll continue to do it our way.” Nothing changed, except for them increasing the interest rates on credit cards and lowering credit card limits. Everyone assumed the big banking bosses would give a little back by opening up credit markets and helping the very same people who will be paying for their bailout. Instead, they rewarded themselves with lavish bonuses and expensive vacations.

President Obama’s new stimulus package addresses this problem and much more. The banking bosses must limit the compensation packages to its top officers and loosen its purse strings for consumers to borrow at affordable rates. If they don’t, they risk losing the lifeline that was extended to them and having to pay it all back. Only time will tell.

It will be interesting to see how the banks react to President Obama’s plan to help homeowners still struggling to make their house payments. Even thought they were allowed to “wet their lips” from the first infusion of government bailout funds, the banking bosses did nothing to assist homeowners. They don’t even bother to do anything about the homes they are about to foreclose upon. Many of these homes are advertised as short sales, but there is nothing short about the process. In most cases, short sales may take as long as six months to a year to close escrow. You would think the banks would want to recoup some its losses and replenish its coffers. Why should they? Especially when they are being fed intravenously with tax payer dollars.

Real Estate Short Sales Are Really NOT Short At All

Real estate short sales are anything but short. Believe me, it can take forever sometimes for the bank that owns the property to release its interest in it even though willing buyers are ready to close the deal. In today’s real estate market, property values are lowering to rock bottom prices and homebuyers are ready to scoop them up. But what was once a simple real estate transaction that took approximately30 days to complete has now turned into a very lengthy time process that can take as long as 90 days or longer.

Typically, a short sale is supposed to allow a homeowner, who is about to have their home foreclosed upon, the opportunity to sell their property in order to avoid ruining their credit history with a foreclosure showing on their credit report. This sounds simple, but the bureaucratic process banks implement to process short sales has several stages that they must go through before they will ever release their interest in the property.

Normally, a willing homeowner will sell their home to a bank-approved buyer who then is able to close escrow and move in to their newly acquired home. In a short sale, the homeowner, who is losing his/her home, must first get his/her bank to approve the terms of the sale before the transaction ever closes escrow. This can be difficult in today’s marker when home values are continuing to decline. Obviously, the bank that owns the home wants back all the money it is owed. But in most cases, the amount that is owed far exceeds what the house is worth in value. The bank will then assign its own appraiser to determine the current value on the house and proceed to turn the file over to a “negotiator” who will then respond to an offer made by the potential buyers. By the time the interested buyers receive any feedback on their offer their file has been bounced around at the bank several times. Sometimes short sales are really not what they appear to be and can turn into an endless nightmare with the buyers often withdrawing their offer to purchase. Makes you think why congress ever bailed out the banks, but that’s another story.

Winning The Lottery

Winning the lottery can be quite a challenge especially if you don’t play that often. I used to buy five one dollar tickets every other month until it was clear the chances of winning a big jackpot may not ever occur in my lifetime. Every once in a while I might win five dollars or at least break even. I read about people winning the lottery every once in a while and sometimes they win big, sometimes as high as ten million dollars. The only consolation I ever get is knowing these people live in nearby areas that I recognize, but never anyone I know.

Every once in a while I will read in the local newspaper about a group of employees purchasing lottery tickets together. Winning the lottery in this manner increases the odds for everyone if they purchase their tickets together. It’s a lot better to win a share of each winner’s ticket than to not win at all. Usually lottery pools are small in size, about 10 – 20 employees. When purchasing lottery tickets in a pool, chances are, several individuals are going to win. Even if only five members of the pool win five dollars each, at least everyone can share in the winnings. Can you imagine if a group of 100 persons formed a lottery pool together? Or how about 10,000 persons joining a lottery pool together. WOW! This sounds like fun. Their winnings may not be as high, but winning something is better than nothing. Who knows, maybe someone will win the big one.

Can you imagine a group of 100,000 persons, or more, playing one dollar tickets twice a week, every week, what the potential of winning it big will be? Surely, this is a lot better than playing alone. Well, this may seem impossible, but its not. By joining Zxotto, a legal lottery pool, everyone has one thing in common, winning the lottery.

Join My Lottery Pool and Win!

Xzotto is a way for everyone over the age of 18 to join a pool of lottery players all over the world and share in each others winnings. No kidding, when I first heard about it I couldn't believe it. You can purchase lottery tickets online and not have to go to the local drug store or minimart to buy them. Because Xzotto is just staring out, only the California Lottery is available. But soon it will include in each state of the union and other countries too.

But that's not all, players also have the unique opportunity to become representatives of Xzotto and can enroll others to join their lottery pool too. Whenever someone under an Xzotto representative wins the lotto, everyone above them wins too. Can you imagine having a group of 1000 or more players under you? Someone in that group is going to win and when they do, you win too. Who cares that this is a multi-level-nework! The bottom line is this is fun and joing a lotter pool increases you chances to win. Go ahead and see for yourself - CLICK HERE!

Homes and Loans

Do First Time Home Buyers Have A Chance In Today’s Market?

I’ve been originating home loans for first time homebuyers for over 10 years and I’ve seen the market go up and down several times during this period. However, never have I seen home prices drop this so dramatically as of lately. This is creating a tremendous opportunity for first time homebuyers to take advantage of homes with low prices and built-in equity. What other investment in today’s market can offer such a huge return on your dollar? Stocks, bonds, and even mutual funds are way too risky, but buying low in today’s real estate market offers one of the safest and best advantages for first time homebuyers wishing to buy a home.

Can you imagine, homes that were once valued at $400,000 are now selling for $200,000? In a few more years, these same homes will once again be valued at the higher amount or more. There is no other investment that I know of that can offer this high of a return. Most people must wait their entire their life time to earn enough money in their estate to equal what first time homeowners can gain in equity in one single transaction.

Everyone knows putting aside a little money each month is sometimes very difficult to do, especially in today’s economy. High gas prices, high food prices, practically everything has increased in price, even rent. I don’t know where you live, but to live in a decent house, apartment, or condo in the Fresno area your rent payment will be at least $1,200 – $1,400.00 per month, and Fresno’s housing costs are much lower then most other cities in California. So, the real question is, WHY PAY RENT WHEN YOU CAN BUY? Buying a house has so much more advantages than renting, especially if the amount you are spending on housing is about the same as what it will cost with a home loan. SO WHY RENT?

Ok, ok, I get it! The problem is saving enough money for a down payment, right? Well, there’s more than one way to peel an orange. Believe it or not, someone once got mad at me for saying that. Anyway, whether you go FHA or conventional for a home loan, you will need to have at 3% - 5% of your down payment in your bank account at least 60 days prior to the close of escrow. Let’s see now, 3% of $200,000 equals $6,000.00. Plus you will have to have closing costs, but you can request the seller of the house to pay them for you. Believe me, they would rather pay your closing costs than to have their house sit on the market another month. The bible says, “Ask and you shall receive”. All you need now is the faith of a mustard seed. Now go out and get qualified for a home loan!

The Mortgage Meltdown and How Credit Card Companies Played A Role

While the media and congress are busy pointing their fingers at the lackadaisical and allegedly unscrupulous business practices within the mortgage industry, they seem to be ignoring one of the more serious causes of the mortgage meltdown, credit card debt. Credit card debt has been a chronic problem over the past few decades and was incredibly out of control during the peak of the mortgage boom when property values rose skyward and homeowners gained thousands upon thousands of dollars in newly acquired home equity. The credit card companies were reaping tons of revenue, as they are now, and consumers were finding it more difficult to shoulder the burden of so much debt. Congress even sided with these multi-billion dollar companies in changing key bankruptcy legislation allowing them to pursue consumers who are filing for bankruptcy protection. Even Senator Joe Biden, the Vice Presidential choice of Democratic Presidential candidate Barack Obama, and others threw their support behind these corporate giants to the dismay of ordinary working folks just trying to make a living.

At the time, consumers used their credit cards to finance clothing, home improvements, emergencies, vacations, gas, and cash advances, among other things. Credit card companies even issued teaser interests rates for as low as 0% so consumers would not be the least hesitant to finance everything that suited their fancy as long as their payments were low and affordable. However after six months the teaser rates disappeared and cardholders were left with rates as high as 29% or more causing their payments to skyrocket way beyond their ability to pay them on time. The power of having credit is overwhelming for some. Unlike consumers who pay by cash, check, or with their debit cards, consumers who rely on credit cards will knowingly purchase items they can’t afford. This is because they do not have the discretionary funds in their savings accounts to accommodate such spending.

Small Businesses also Effected

Congress’s efforts, so far, have been focused around finance reforms and other restrictions pointed towards financial institutions. Although their intentions may seem honorable, this is putting a stranglehold on banks and other lending institutions that would, otherwise, approve qualified borrowers with good credit even though they may not be able to provide documented proof of their income because they are self-employed. Most self-employed small business owners will write off their business’s expenses during tax season to avoid paying the government whatever net income is left over from their net profits. After payroll taxes, worker’s compensation insurance, high fuel costs, inflation, a shrinking economy and other normal day-to-day business expenses, there’s seldom enough money left over to earn a living wage. The vast majority of small business owners are not a part of the 3% of the wealthiest Americans. Most of them are part of what was once considered middle class America, but not anymore.

What Congress fails to realize is that many small business owners rely on the equity of their homes to provide the much-needed capital necessary to make their businesses work. When business is good, these loans are paid off and the cycle starts all over again. Congress is not an expert regarding the many issues and problems within the mortgage industry. It must also welcome the input it receives from mortgage brokers in addition to the top paid banking executives who contribute to their political campaigns. When mortgage brokers took action to oppose some of the proposed financial reforms while still in committee, Senate Finance Committee members largely ignored what these brokers had to say and went forward with their own formula for changes within the industry.

Mortgage brokers, and the many loan officers who work for them, are in direct contact with homeowners and see firsthand the financial dilemma they are in. In a random survey taken at several prominent mortgage companies, loan officers reported that the number one reason homeowners requested refinancing was to pay off credit card debt. They reported that nine out of ten homeowners refinanced their properties when home values were at an all time high in order to consolidate their consumer debts, including credit card debt into their new loan. However, now that the market has changed for the worse, many are forced to abandon their homes and/or file for bankruptcy now that their properties worth less than the debt they now owe.

From 2002 to 2006 over 95% of homeowners refinanced their properties for the sole purpose of paying off their credit card debt with the equity from their homes. At that time interest rates for a home loan are much lower than what most credit card companies were charging. The benefit to homeowners was being able to pay out less per month compared to what they were paying with their mortgage payment and credit card payments combined. However, by combining these payments into a debt consolidation loan, the total combined debt that they once owed has increased because of loan related fees being added to their new home loan.

Consumers overburdened with excess debt have very few alternatives for getting out of debt unless they own a home or other liquid asset. But, for those who don’t own a home, or maybe do but have very little equity in their homes, there is no relief from rising debt unless they take extreme measures to modify their spending habits like trading in their SUV for a late model Toyota, or file for bankruptcy. The consequences for credit card abuse can dramatically change the living standards for many individuals.

Homeowners typically refinance their properties every 4-5 years on average. However, during the mortgage boom, homeowners were refinancing their properties more frequently, more like every 2 years due to the aggressive marketing tactics of the mortgage industry. Lenders offering low teaser rates during the first 2-3 years of the loan somehow believed borrowers would be able to refinance their properties again prior their rates being adjusted upward. For many homeowners, especially those who were seeking financial relief in the form of lower monthly payments, these variable interest rates seemed very attractive compared to what they were once paying. However, consolidating their credit card debt to their home loan was a recipe for disaster. This seemed to be the only answer to their financial suffering, but for some, it proved to be a financial nightmare. Little did they know that a new financial crisis was about to unfold that eventually would lead to the process of losing their home to foreclosure. As the mortgage lender implode list grew, so did the number of families left without a home.

My FREE Perspective As A Loan Officer

Have you ever wondered how your credit ever came to be what is is today? Its amazing how some consumers can be almost identical in geographical, economical, and social levels and yet some pay much less for the same types of homes, automobiles, boats, business loans, etc., than others.

I am the branch manager of one of the largest mortgage brokers in the United States. I have been originating home mortgage loans for the past ten years and I've seen practically every credit-related problem that you can think of. Believe me, I've seen credit reports showing deficiencies for unpaid utilities, cable TV, cell phones, car loans, home loans, student loans, identity theft , credit cards, and even Kentucky Fried Chicken . . . no, just kidding:) Seriously, only God knows what's in store for us and sometimes credit problems like these are unavoidable.

I enjoy the opportunity to help people whenever I can. I've helped many people solve their credit problems by suggesting small things that they can do to improve their credit and increase their credit scores. Recently, I helped a husband and wife raise their credit scores from 580 to over 660. As a result, they were able to get the lowest fixed rate available at that time and save over $60,000 over the term of their loan. Believe me, they are happy campers because their previous interest rate adjusted so high they could no longer afford the payment. Sound familiar?

It doesn't matter how bad you think your credit report is, there are simple things you can do to improve it. Simple things like splitting your monthly credit card payment into three payments within the same thirty day period will increase your score. Credit card companies like this a lot and it also has a positive effect with the three major credit reporting bureaus. Did you know it is possible to get a high credit score even if you have no credit at all? A client of mine came in to get a loan, but he had no credit score at all because he did not have any open lines of credit. He ended up with a credit score of over 700 when he requested his name be added to the account of relative who had credit cards. From there, he was able to request his own credit cards and maintain his high credit scores.

Most credit repair professionals don't offer help people for free, but I disagree with that. I was taught long ago that in order to be blessed, I should at least follow the Golden Rule, and that is, to treat others as I would want them to treat me. However, I know I can be blessed even more if I give more onto others than I should expect in return. In addition, I thank the Lord each and every day because I know he has improved my life from yesterday to today and I know that whatever He has in store for me tomorrow will be an improvement over today.

Thank you for visiting my blog and if you have a question about your credit, please leave a comment at the bottom of this page and I will get back to you.

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