Mortgages In The Uk Inside A United States Bankruptcy Court Know The Apr When Looking For A Low Interest Credit Card Poor Credit Home Mortgage Loans Getting Approved With No Down Payment Stock Research Amaranth Hedge Fund Collapse What Happens When Your Friendly Banker Becomes Predator
Mortgage refinancing and second mortgages have become popular as the market tightens and interest rates become volatile. Mortgage refinance provides an opportunity to the people to fulfill their obligations. Mortgages have two components: principal and interest.Mortgage rates generally rise and fall along with yields on Treasury securities, which reflect the overall direction of interest rates. A mortgage is a loan taken out to pay for the purchase of property, usually a house. You could start saving money by simply selecting to compare personal loans, compare secured loans, compare credit cards, compare insurance or compare mortgages. Before purchasing houses you need to seek all the relevant information about mortgage and loan that are offering by different companies so that you can easily find good mortgage deal. We recommend that you obtain exact figures from a specific lender before committing to any mortgage.
Although this increase in mortgage types has added complexity, it has also introduced fierce competition, which has in turn resulted in the availability of some very attractive mortgage products for you the customer. Before obtaining a vacation home mortgage, prospective homeowners should carefully study their mortgage options and rates and determine how much they can afford. When choosing between fixed rate and adjustable rate mortgages, it is hard to decide which will ultimately cost less. The benefit of the mortgage refinancing is that the premium decreases and lowers the mortgage rates. With a rising housing market interest only mortgages have grown in popularity over the last few years, causing great concern among industry experts. Unfortunately what I found out was that this reluctance to ask for the mortgage we want is just a cultural hangover. In reality there is no such thing as an interest only mortgage, because eventually you will pay the principal, too. Get an overview of the basics, then do some research at the library, on the Internet, or ask questions of experts
For people who have had to consider bankruptcy, they will eventually have to go to a United States bankruptcy court. The people’s attorney will be there with their client and that takes away most of the fear involved with the court. When people go to the United States bankruptcy court, they are not alone with their attorney.
There will be several other attorneys with their clients. There always seems to be safety in numbers and there will be other people doing the same thing that others are doing. The person’s attorney will tell them how to dress, what to say, and how to act. This is important because the judge is paying close attention to the peoples all around appearance.
Without the attorney being present it might attract the judge’s eye because the person may wear something that looks expensive or they may say something that a judge might pick up on. There are people that will represent themselves in United States bankruptcy court and it is allowable to do so but it isn’t really recommended for people to handle it by themselves.
The court is just another room with the judge and attorneys to do business in. Most people will stress out just knowing that they have to be there, but with adequate counsel from an attorney, people have nothing to worry about.
United States Bankruptcy Court Questions
When people show up for United States bankruptcy court, their attorney should quickly sit down with them and review all of the information pertinent to the court. The attorney will go over the possible questions that they may be asked and how to answer the judge with proper decorum.
One question that the judge may ask people is if they understand why they are in the United States bankruptcy court. The attorney will brief their client to answer with yes and to not ramble on. The last thing someone should do is to keep talking after answering the judge’s question.
Another question that a United States bankruptcy court judge might ask is if this is the persons first time to file bankruptcy or not. If people have filed before and this is not the first time in front of a bankruptcy court, the judge will want to know when the person last filed for protection. As long as the allotted time has passed between filings, the proceeding can continue.
There are different cards out in the market. Credit cards, debit cards, ATM cards, and many more. But one thing that almost any person never fails to have is a credit card. The credit card has many uses, and that is probably why so many people are doing ways to get an application approval.
If you’re one of those many people looking for the right credit card, it will help a lot if you can shop around first. Don’t just grab any opportunity that comes your way. A little shopping around can save you a lot of money on fees and interest in the long run.
While on your search for the perfect credit card, you must gain a better understanding of the card’s features, compare different cards in terms of their cost or features, know the law and your rights, and in case you’ll encounter a problem, you can always file a complaint.
If you haven’t chosen a credit card yet, you’ve probably heard of cards having low APRs. Do you know what that means? APR or the annual percentage rate is usually stated as yearly rate. It is the rate of interest which you will pay in case you make cash advances, carry over balances, or make a balance transfer.
Not all APRs are the same. The APR can be fixed or it can also be a multiple APR card. Cards having fixed APRs don’t change often or if in case it does, the company will notify you. Then there are also credit cards having multiple or variable rates. With this card, the interest changes very often. This happens because the rate is tied to the Treasury bill’s rate or a prime rate. If one rate changes, then so does the other. The card’s agreement usually contains information regarding APRs so you must make it a point to check for the card’s APR before the application.
Examples of APRs are tiered, introductory, delayed, and penalty. Almost all cards charge high interest rates on cash advances compared to ordinary purchases made by the card holder.
Tiered APRs charge different rates to different balance levels. Other cards offer low APRs as introductory rates but after the grace period expires, a different interest will be applied. Delayed APRs are usually given a notice that a different rate will be applied in the future. And if your always delayed in paying your bills, you will be charged of penalty APR (the APR will increase).
You have to pay all your outstanding bills as much as possible because this will greatly affect the entire bill that you’ll pay for the whole year.
You must get all pertinent information about the different credit cards available for you to make a wise choice. Credit cards entail responsibility, and since it would require you to make monthly payments, surely you don’t want to be tied to a card with a very high interest.
Finding credit card information is not much of a problem. You can secure information online, or through newspapers and magazines. You can do an online search because it’s much better. All you have to do is to log in on the card company’s website, or read an application or solicitation.
Credit cards give people convenience and flexibility. But as card holders, you should not forget your responsibility.
When applying for a new mortgage with poor credit, you may be wondering whether or not you can get approved with zero down. There are a few factors that will influence this. Consider these points:
1. Poor Credit Will Put More Weight On Your Employment History & Salary – When you are putting less money down and have credit problems, this will cause the lender to look more heavily at the stability of your employment history and income. If your debt-to-income ratio is low and you have been at your job for more than one year, this will help you toward getting 100% financing.
2. Lenders Will Look Closely at Your Most Recent Payment History – Many people have had financial difficulties in your past, but one of the most telling things for a lender, is what your most recent payment history has been like. If you have a bankruptcy that is more than a few years old, but over the last few years have made regular, on-time payments on all of your existing bills, you are more likely to get approved for 100% financing.
3. Consider Having The Home Seller Pay The Closing Costs – If, with poor credit, you are able to get 100% financing, it will probably be quite a stretch to have the lender also wrap the loan closing costs up in the mortgage loan as well. When you make your offer on your new home, consider including in your offer that the seller pay all of the loan closing costs. This is a common practice, and it is highly likely that the seller will agree.
Try pulling a copy of your own credit report to see how bad your credit really is. Make sure you have disputed all inaccuracies on your credit report before you allow a mortgage lender to pull your credit. If possible, pay down as many high balance revolving credit accounts as possible. This can help increase your credit score significantly.
You might be familiar with Amaranth LLC, the giant hedge fund that collapsed last fall, after blowing up $6 billion of investors’ money. It now comes out that the circumstances under which they self-destructed are worth studying.
But first – A METAPHOR
What would happen if you had a pain in your chest, and you had tests taken at your doctor on a Monday who you have known and trusted for 30 years? He tells you that the results will tell you if you are going to live or die, no in between. You now visit the doctor on a Friday to discuss the results. The doctor says to you how would you like to bet on the results.
You offer to bet $1 million that you are going to live. The doctor says, “I will take your bet myself.” Would you still make the bet? The answer is no, of course you wouldn’t because the doctor already knows the result. and you don’t. It’s like betting against the house in Las Vegas when the house already KNOWS how the results will turn out.
This is the same situation in our opinion that Amaranth the hedge fund faced during its trading crisis. Hedge funds have to book their trades through a clearing firm, no different than many major brokerage firms clearing trades for smaller brokerage firms. The smaller firm pays a fee to the bigger firm that clears the trades for them.
In the case of Amaranth the hedge fund, JP Morgan was the clearing broker, known as a Prime Broker. In essence Amaranth made bets on the energy futures markets, and these bets went the wrong way. As a hedge fund, Amaranth uses leverage when it trades against its equity, usually borrowing about 6 to 1, and sometimes as high as 8 to 1. JP Morgan as the clearing broker was the lender of the additional margin.
Now when a trade goes against a hedge fund, the fund may be called upon by the clearing firm to put up more margin, meaning cash, or securities to protect the clearing firm. In this case the problem happened on a Friday. Amaranth wanted to get rid of billions of dollars of toxic bad trades by giving them to Goldman Sachs, who agreed to take them if Amaranth would give Goldman $2 billion in cash along with the trades. Goldman would then assume the risk of what happens to those trades. Amaranth wanted its clearing firm, JP Morgan to give Goldman the $2 billion from its capital account simultaneous with the movement of the trades.
JP Morgan would not release the funds. They barked, stating that they felt they would still be at risk if this were to happen. A clearing firm hates risk, and never wants to take risk. Amaranth very quickly had to operate in the most treacherous waters imaginable. They had to begin talking to outsiders in a desperate attempt to structure a transaction with anyone capable of taking these trades or injecting new additional capital. Remember, this is Wall Street, the sharks were circling.
Anyone who had knowledge of Amaranth’s trades knew immediately how precarious the oil markets that Amaranth was involved in. They also knew how to play the market to its own advantage using Amaranth’s weaknesses. The SHARKS came in and did trades that would work to their advantage. Within a matter of trading hours, this giant hedge fund was losing hundreds of millions of additional dollars. Merrill Lynch decided to take a piece of the funding deal, and this drove Goldman Sachs up a wall. Goldman upped the ante, and decided to charge Amaranth hundreds of millions more to do the deal which would partially save Amaranth.
Now here’s where our story of the doctor with the patients information and the patient’s bet come in handy. JP Morgan as the clearing broker was in a position to know more about the condition of Amaranth’s books, and their trading positions than anyone else in the industry. Since JP Morgan also trades in the same market as Amaranth, the bank knew the market’s condition better than anyone else also.
When the Morgan bank was informed that a deal was imminent between Goldman and Amaranth, the Chairman of Morgan got involved himself and called in his top energy trader over the weekend. Morgan was thinking of making their own deal for Amaranth’s positions, the very positions that they cleared for Amaranth over the preceding months.
The Morgan bank was sitting in the catbird seat. They knew everything; they saw everything, no different than a black jack dealer in Las Vegas being able to tell everyone’s cards. As a person who has been in this field for 30 years, and watched a few firms go down the tubes in a deal like this, I tell you, it doesn’t SMELL RIGHT.
JP Morgan knew that Amaranth couldn’t make a deal with anyone as long as the Morgan bank held the collateral. No deal could be structured if Morgan wouldn’t release at least part of the money in the Amaranth account at Morgan. The Morgan bank was in complete control of Amaranth’s destiny. What would the bank do?
JP Morgan also acts as a giant hedge fund trader for its own account in the energy markets, and in other markets. In a sense it competes against its clients if it chooses to, in these markets. The difference is when you are a major clearing firm as well as trading yourself, which is what Morgan does, you have the advantage. You have an understanding of the market place that nobody else can even dream about having. It is the trader’s ultimate dream. There are times when the clearing firm can dictate the market.
The FINAL DEAL
Discussions ensued through the weekend, into Monday, and Tuesday. Amaranths finally capitulated at 5:30AM on Wednesday morning, and guess who signed the deal. J.P. Morgan in conjunction with the Citadel Investment Group, another hedge fund inked the deal. Amaranth’s $800 million in portfolio losses from the weekend would be eaten by Amaranth themselves. Morgan and Citadel got $1.6 billion in cash to take the trading positions in the portfolio off Amaranth’s books. They got another $300 million to assume options positions, plus a $250 million kicker for commodity investments.
What’s the bottom line here? It just became public information that J.P. Morgan made $725 million for its bottom line on the deal. Congratulations to a nice conservative bank, that always catered to conservatively managing the trust funds of its wealthy clientele. Do you think that GREED had anything to do with the bank’s decision to cut the deal with Amaranth, as opposed to arranging a bailout? Gee, a bank wouldn’t function like that, would it?
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