Buying Bank Owned Properties (REO)
by Walt HarveyWalt and Arla Harvey are Realtors in Honolulu, Hawaii
.
Showing posts with label clunkers. Show all posts
Showing posts with label clunkers. Show all posts
Thursday, March 7, 2013
Buying Bank Owned Properties (REO) - http://www.realestateabc.com/homeguide/reo.htm
Walt and Arla Harvey are Realtors in Honolulu, Hawaii
.
Monday, December 31, 2012
Top 5 Reasons to Buy an REO Property
RepoFinder.com has listed the top 5 reasons to buy a bank or credit union REO. Home buyers across the Nation may not even know about these properties or where to buy them. This article will help familiarize buyers with the benefits of buying direct from a credit Union or local bank.
5- The price is right:
The first thing people associate with buying an REO is getting a low price. When REO's are purchased directly from the bank or credit union there is generally no commission, fee, hidden cost, auction registration charge, etc. These properties are sold only to cover a loss. In almost no circumstance does the bank or credit Union net a profit from the sale. These orphaned properties are typically sold at a loss and if there is residual equity from the sale it is returned to the prior owner. The lenders DO NOT want these properties and they are priced accordingly to sell quick.
4- Bank / Credit Union financing is the best:
A lot of Agent will tell you the most lenient financing and the best interest rates will always be the local credit unions and small banks. After all, they were the ones that financed these properties originally. Small banks and credit unions can negotiate both the price and the interest rate. With low prices and low rates you always get the best deal.
3- Banks / Credit Unions are a trustworthy seller:
Local credit unions and banks are built on the foundation of trust. Their financial reputation is at stake every time they work with you. They absolutely cannot afford to breech that trust over a the sale of an REO. Repo homes are typically sold “as-is” and the sales are final. You won’t be pressured into buying something you don’t want. Make sure you do your due diligence and are certain you want the property before you commit to buying.
2- Plenty of quality inventory:
REO's are not all the same. We’ve heard horror stories of severely damaged homes forclosed from drug dealers and resold at auction. This is generally not the case with buying local credit union REO's. The vast majority of credit union owned properties are voluntarily surrendered in great condition.
1- Search Credit Union inventory from home at no cost:
In the old days of the internet, and even today several websites claim to have exclusive access to REO lists. In reality they are only selling you public records and local auction house contact info. They make claims exagerated claims to entice you into paying memberships, but they make absolutely no guarantees that you’ll get any results.
For more information visit: http://RepoFinder.com
5- The price is right:
The first thing people associate with buying an REO is getting a low price. When REO's are purchased directly from the bank or credit union there is generally no commission, fee, hidden cost, auction registration charge, etc. These properties are sold only to cover a loss. In almost no circumstance does the bank or credit Union net a profit from the sale. These orphaned properties are typically sold at a loss and if there is residual equity from the sale it is returned to the prior owner. The lenders DO NOT want these properties and they are priced accordingly to sell quick.
4- Bank / Credit Union financing is the best:
A lot of Agent will tell you the most lenient financing and the best interest rates will always be the local credit unions and small banks. After all, they were the ones that financed these properties originally. Small banks and credit unions can negotiate both the price and the interest rate. With low prices and low rates you always get the best deal.
3- Banks / Credit Unions are a trustworthy seller:
Local credit unions and banks are built on the foundation of trust. Their financial reputation is at stake every time they work with you. They absolutely cannot afford to breech that trust over a the sale of an REO. Repo homes are typically sold “as-is” and the sales are final. You won’t be pressured into buying something you don’t want. Make sure you do your due diligence and are certain you want the property before you commit to buying.
2- Plenty of quality inventory:
REO's are not all the same. We’ve heard horror stories of severely damaged homes forclosed from drug dealers and resold at auction. This is generally not the case with buying local credit union REO's. The vast majority of credit union owned properties are voluntarily surrendered in great condition.
1- Search Credit Union inventory from home at no cost:
In the old days of the internet, and even today several websites claim to have exclusive access to REO lists. In reality they are only selling you public records and local auction house contact info. They make claims exagerated claims to entice you into paying memberships, but they make absolutely no guarantees that you’ll get any results.
For more information visit: http://RepoFinder.com
Friday, December 21, 2012
Thursday, September 16, 2010
Monday, September 13, 2010
http://www.siskiyoudaily.com/news/x907387807/Many-questions-arise-over-YAC-incident
Many questions arise over YAC incident.Zoom Photos. Jamie Gentner.The Yreka Auto Center Service and Wash center has been closed since cars were taken from the car lot on Aug. 26. Owner Steve Long said the decision to keep the businesses closed came when he was told any cars he tried to sell on the lot would be taken, and he didn’t want to take any chances of anything happening at the other two YAC branches.
Yreka ApartmentsYreka AttorneysYreka Auto DealersYreka Auto PartsYreka Auto RepairYreka Beauty SalonsYreka Car RentalYreka DentistsYreka DoctorsYreka FlowersYreka HotelsYreka InsuranceYreka LoansYreka MortgagesYreka MoversYreka PizzaYreka RealtorsYreka RestaurantsYreka StorageYreka Tax PreparationYreka Travel.By Jamie Gentner
Siskiyou Daily News
Posted Sep 13, 2010 @ 08:39 AM
Yreka, Calif. — It’s been almost three weeks since cars disappeared from the Yreka Auto Center lot on Main Street in Yreka. Nineteen days after the event, there are still questions about what happened and different sides of the story to be heard.
Yreka Auto Center
When YAC owner Steve Long showed up for work Thursday, Aug. 26, almost every car that had been on the lot was gone and the door to the office was ajar, he said.
Long called the Yreka Police Department to report the cars stolen. He received a call back informing him that the cars had been repossessed, Long said.
He had received an e-mail the Monday before, but he didn’t get around to reading it until days later. The e-mail was from Express Auto Funding, the bank from which YAC had borrowed money for several of the cars on the lot. The e-mail demanded payment of $346,000 on eight cars by Wednesday or Long would be put in default.
But Long wondered several things: how had the company gotten hold of the keys for the cars? And why had they taken almost every car on the lot – including some belonging to local residents that were on consignment or in for service?
Long said he was told that the local man who repossessed the cars for Express Auto Funding, Nolan Henry, had told police that Long had given him the keys for the cars the night before. But when he left at around 5:30 p.m. Wednesday, Long said, the keys were locked in the closet as usual. He also said a cleaning lady who left around 7 p.m. reported that the keys were in the closet – which is where all her supplies are kept – when she left.
“If I had handed him the keys Wednesday night, why did he come at 3 in the morning for the cars?” Long said. “And why would I have given him the keys to every car?”
The police had told Long that Henry had called around 3 a.m. Thursday morning to tell them he took the cars and would look into which cars he needed to return, Long said.
A police officer had been there that morning, Long said, and Henry wasn’t stopped.
In the days that followed, Long said he retained an attorney and had several meetings with YPD Chief Brian Bowles and Lt. Dave Gamache.
But the police wouldn’t take any stolen car reports, Long said, because they determined the case was civil and not criminal. Instead, Long and the individuals seeking their cars should get ahold of Henry directly, Long said he was told.
He discovered that the cars had been taken to a ranch in Montague before being shipped to Fresno and Bakersfield, Calif.
“There are people who have their titles but don’t have their cars anymore,” Long said. “I’m not concerned about the YAC cars; I’m concerned about the 18 cars that belong to our customers that were taken.”
While working to help those individuals figure out how to get their cars back, Long said he and his staff were also trying to regroup and figure out how to stay open.
“We were told if we put cars on the lot again, they would be taken,” Long said. “So we weren’t going to take any chances until we get this settled.”
So the lot and the service center and car wash across the street remained closed – though Long has remained at the lot to field questions.
Long said he knows of a few people who have received their car. But he was told the rest of the cars would be back Wednesday, and they weren’t.
“The District Attorney’s Office says the case is civil so they can’t issue warrants, and the police say it’s civil so they can’t arrest anyone,” Long said. “They say he isn’t ‘permanently depriving’ people of their cars.”
But Long said he questions whether the parties involved have something to do with why the police won’t take action.
“I feel like I’m in a different country. ... How this went down, how the police and district attorney won’t get involved – I don’t know how all this works, but it doesn’t smell right. It doesn’t feel right,” Long said. “The character of a vehicle doesn’t change whether it’s on my lot or at someone’s house. You can’t take someone’s car.”
Long said he has never seen a repossession handled like this in his 25 years in the car business. Had it been handled differently and had the police gotten more involved from the beginning, Long continued, three businesses would still be open.
“I don’t know how more to help my customers,” Long said. “Now I’ve got to figure out what, as a business, to do and where to go.”
Finance Company
Henry was contacted several times for comment, but Express Auto Funding would only issue a prepared statement.
In the statement received Friday, the company states that it made loans to Yreka Auto Center so it could buy cars to sell on its lot.
“Several months ago, Yreka Auto stopped making payments on these loans. Now it has been discovered that Yreka Auto is guilty of several serious violations of contract,” the statement reads. “In response, Express Auto Funding took lawful steps to obtain possession of certain Yreka Auto vehicles. ... Express Auto Funding regrets the harm done by Yreka Auto to Yreka customers.”
When contacted by the Daily News for further comment regarding repossession procedures, why a list was not used so only YAC cars were taken and why several individuals had not received their cars back 16 days later, Express Auto Director David Lachtman said the company had no further comment.
The police
Bowles said the YPD got more involved in this case than they would normally get involved in a civil case. All their information on the case has now been turned over to the district attorney.
He called the situation a “mess” and said his department has spent an “extensive amount of time” trying to solve the situation at a community level.
In contrast to Long’s statement, Bowles said anyone who has requested to make a report has been allowed to do so.
But it doesn’t appear Henry was stealing any vehicles.
“If he was stealing the vehicles, he wouldn’t call the police department. You have to have intent to permanently deprive,” Bowles said. “This was a creditor collecting assets from a business. ... He said he will release the vehicles he’s not supposed to have.”
With that in mind, Bowles said, he doesn’t want to make any false arrests.
“We don’t want to intrude on someone’s rights, but yet we want to protect potential victims,” Bowles said. “So we’re still continuing to help people get in contact with him.”
He has been told that all but a few cars have been returned to their owners, Bowles said. But there has been some questions about whether cars that were on the lot on consignment had been signed over to YAC, so there was an extensive effort to determine which cars belonged to whom.
A look at the consignment form sellers sign revealed there’s no act of signing over a title or rights to YAC.
The police have to look at the physical evidence available in a case, Bowles said.
A police officer was called out that morning, requested by Henry, to check the premises before he left, Bowles said. This is a common practice to ensure owners don’t try to pin damage on a repossessor, he said. And there was no physical evidence of forced entry at that time.
In addition, Bowles said, a look at the contract involved reveals that Express Auto has the authority to take assets if balances are unpaid.
“Can keys be considered an asset?” Bowles said.
He dismissed the idea that the police aren’t getting involved because of the parties involved.
“I was told when I took this job that I could arrest anyone who has committed a crime – it doesn’t matter if that means arresting the mayor, city council members, law officers,” he said. “Otherwise, I wouldn’t have taken this oath. My department knows that if you do the crime you do the time.”
But while there appears to be some bad business practices and some tricky situations in the mix, for now, there has been no determination that a crime has been committed, he said.
Bowles said that he, too, has not seen a case like this in 20 years.
He encouraged any individuals who have not received their car and who believe it to be stolen to file a report with the police department, and he said that it’s now just a matter of waiting to see what happens.
District attorney
District Attorney Kirk Andrus said his office has taken on the role of mediator in this case.
“There may be a criminal case some day, but knowing whose vehicles these are is a prerequisite to a criminal investigation,” Andrus said.
He said several people have come forward with proof of ownership for their vehicle and there has been an effort to return those vehicles.
Any vehicles that have not already been returned, Andrus said, are expected to be returned this week.
And to this point, the case is civil, Andrus said, because of intent.
“When you talk about criminal intent, if a person did something because they felt legally entitled to, it’s not a crime,” he said. “They might be wrong, and in that case it would be up to a civil court to determine who’s right and wrong. But it’s not a criminal matter when someone truly believes they are right. ... It does have to be reasonable, though.”
Andrus said he has no indication that YPD is not taking reports or is not getting involved when they should be.
“I have not noticed any amount of prejudging who is right and who is wrong or the police giving the benefit of the doubt to anybody,” he said. “People can feel confident that the Yreka Police Department has handled this the best they can.”
His department has not ruled out the possibility of a crime having been committed, Andrus said.
“What we’re doing right now is trying to solve problems and make people’s lives easier,” he said. “This dispute has interrupted people’s personal and business lives.”
Customer
One resident whose life has been affected is Mike Harris, who said his daughter’s car was on the lot for repairs when the cars were taken.
As of Thursday afternoon, he had not received the car and he had not been able to file a stolen vehicle report, he told the Daily News.
His finance company had called and told him he would have the car last week, Harris said. When he didn’t get it back, he said he talked to Henry, whom he said told him he didn’t know where his car is.
Andrus said his records indicate there are issues with that car, but there was no record of contact from Harris.
Andrus added that the promised return of cars is an important event in this case. Once that is done, or is not done, more will be known about how to proceed.
Copyright 2010 Siskiyou Daily News. Some rights reserved
Yreka ApartmentsYreka AttorneysYreka Auto DealersYreka Auto PartsYreka Auto RepairYreka Beauty SalonsYreka Car RentalYreka DentistsYreka DoctorsYreka FlowersYreka HotelsYreka InsuranceYreka LoansYreka MortgagesYreka MoversYreka PizzaYreka RealtorsYreka RestaurantsYreka StorageYreka Tax PreparationYreka Travel.By Jamie Gentner
Siskiyou Daily News
Posted Sep 13, 2010 @ 08:39 AM
Yreka, Calif. — It’s been almost three weeks since cars disappeared from the Yreka Auto Center lot on Main Street in Yreka. Nineteen days after the event, there are still questions about what happened and different sides of the story to be heard.
Yreka Auto Center
When YAC owner Steve Long showed up for work Thursday, Aug. 26, almost every car that had been on the lot was gone and the door to the office was ajar, he said.
Long called the Yreka Police Department to report the cars stolen. He received a call back informing him that the cars had been repossessed, Long said.
He had received an e-mail the Monday before, but he didn’t get around to reading it until days later. The e-mail was from Express Auto Funding, the bank from which YAC had borrowed money for several of the cars on the lot. The e-mail demanded payment of $346,000 on eight cars by Wednesday or Long would be put in default.
But Long wondered several things: how had the company gotten hold of the keys for the cars? And why had they taken almost every car on the lot – including some belonging to local residents that were on consignment or in for service?
Long said he was told that the local man who repossessed the cars for Express Auto Funding, Nolan Henry, had told police that Long had given him the keys for the cars the night before. But when he left at around 5:30 p.m. Wednesday, Long said, the keys were locked in the closet as usual. He also said a cleaning lady who left around 7 p.m. reported that the keys were in the closet – which is where all her supplies are kept – when she left.
“If I had handed him the keys Wednesday night, why did he come at 3 in the morning for the cars?” Long said. “And why would I have given him the keys to every car?”
The police had told Long that Henry had called around 3 a.m. Thursday morning to tell them he took the cars and would look into which cars he needed to return, Long said.
A police officer had been there that morning, Long said, and Henry wasn’t stopped.
In the days that followed, Long said he retained an attorney and had several meetings with YPD Chief Brian Bowles and Lt. Dave Gamache.
But the police wouldn’t take any stolen car reports, Long said, because they determined the case was civil and not criminal. Instead, Long and the individuals seeking their cars should get ahold of Henry directly, Long said he was told.
He discovered that the cars had been taken to a ranch in Montague before being shipped to Fresno and Bakersfield, Calif.
“There are people who have their titles but don’t have their cars anymore,” Long said. “I’m not concerned about the YAC cars; I’m concerned about the 18 cars that belong to our customers that were taken.”
While working to help those individuals figure out how to get their cars back, Long said he and his staff were also trying to regroup and figure out how to stay open.
“We were told if we put cars on the lot again, they would be taken,” Long said. “So we weren’t going to take any chances until we get this settled.”
So the lot and the service center and car wash across the street remained closed – though Long has remained at the lot to field questions.
Long said he knows of a few people who have received their car. But he was told the rest of the cars would be back Wednesday, and they weren’t.
“The District Attorney’s Office says the case is civil so they can’t issue warrants, and the police say it’s civil so they can’t arrest anyone,” Long said. “They say he isn’t ‘permanently depriving’ people of their cars.”
But Long said he questions whether the parties involved have something to do with why the police won’t take action.
“I feel like I’m in a different country. ... How this went down, how the police and district attorney won’t get involved – I don’t know how all this works, but it doesn’t smell right. It doesn’t feel right,” Long said. “The character of a vehicle doesn’t change whether it’s on my lot or at someone’s house. You can’t take someone’s car.”
Long said he has never seen a repossession handled like this in his 25 years in the car business. Had it been handled differently and had the police gotten more involved from the beginning, Long continued, three businesses would still be open.
“I don’t know how more to help my customers,” Long said. “Now I’ve got to figure out what, as a business, to do and where to go.”
Finance Company
Henry was contacted several times for comment, but Express Auto Funding would only issue a prepared statement.
In the statement received Friday, the company states that it made loans to Yreka Auto Center so it could buy cars to sell on its lot.
“Several months ago, Yreka Auto stopped making payments on these loans. Now it has been discovered that Yreka Auto is guilty of several serious violations of contract,” the statement reads. “In response, Express Auto Funding took lawful steps to obtain possession of certain Yreka Auto vehicles. ... Express Auto Funding regrets the harm done by Yreka Auto to Yreka customers.”
When contacted by the Daily News for further comment regarding repossession procedures, why a list was not used so only YAC cars were taken and why several individuals had not received their cars back 16 days later, Express Auto Director David Lachtman said the company had no further comment.
The police
Bowles said the YPD got more involved in this case than they would normally get involved in a civil case. All their information on the case has now been turned over to the district attorney.
He called the situation a “mess” and said his department has spent an “extensive amount of time” trying to solve the situation at a community level.
In contrast to Long’s statement, Bowles said anyone who has requested to make a report has been allowed to do so.
But it doesn’t appear Henry was stealing any vehicles.
“If he was stealing the vehicles, he wouldn’t call the police department. You have to have intent to permanently deprive,” Bowles said. “This was a creditor collecting assets from a business. ... He said he will release the vehicles he’s not supposed to have.”
With that in mind, Bowles said, he doesn’t want to make any false arrests.
“We don’t want to intrude on someone’s rights, but yet we want to protect potential victims,” Bowles said. “So we’re still continuing to help people get in contact with him.”
He has been told that all but a few cars have been returned to their owners, Bowles said. But there has been some questions about whether cars that were on the lot on consignment had been signed over to YAC, so there was an extensive effort to determine which cars belonged to whom.
A look at the consignment form sellers sign revealed there’s no act of signing over a title or rights to YAC.
The police have to look at the physical evidence available in a case, Bowles said.
A police officer was called out that morning, requested by Henry, to check the premises before he left, Bowles said. This is a common practice to ensure owners don’t try to pin damage on a repossessor, he said. And there was no physical evidence of forced entry at that time.
In addition, Bowles said, a look at the contract involved reveals that Express Auto has the authority to take assets if balances are unpaid.
“Can keys be considered an asset?” Bowles said.
He dismissed the idea that the police aren’t getting involved because of the parties involved.
“I was told when I took this job that I could arrest anyone who has committed a crime – it doesn’t matter if that means arresting the mayor, city council members, law officers,” he said. “Otherwise, I wouldn’t have taken this oath. My department knows that if you do the crime you do the time.”
But while there appears to be some bad business practices and some tricky situations in the mix, for now, there has been no determination that a crime has been committed, he said.
Bowles said that he, too, has not seen a case like this in 20 years.
He encouraged any individuals who have not received their car and who believe it to be stolen to file a report with the police department, and he said that it’s now just a matter of waiting to see what happens.
District attorney
District Attorney Kirk Andrus said his office has taken on the role of mediator in this case.
“There may be a criminal case some day, but knowing whose vehicles these are is a prerequisite to a criminal investigation,” Andrus said.
He said several people have come forward with proof of ownership for their vehicle and there has been an effort to return those vehicles.
Any vehicles that have not already been returned, Andrus said, are expected to be returned this week.
And to this point, the case is civil, Andrus said, because of intent.
“When you talk about criminal intent, if a person did something because they felt legally entitled to, it’s not a crime,” he said. “They might be wrong, and in that case it would be up to a civil court to determine who’s right and wrong. But it’s not a criminal matter when someone truly believes they are right. ... It does have to be reasonable, though.”
Andrus said he has no indication that YPD is not taking reports or is not getting involved when they should be.
“I have not noticed any amount of prejudging who is right and who is wrong or the police giving the benefit of the doubt to anybody,” he said. “People can feel confident that the Yreka Police Department has handled this the best they can.”
His department has not ruled out the possibility of a crime having been committed, Andrus said.
“What we’re doing right now is trying to solve problems and make people’s lives easier,” he said. “This dispute has interrupted people’s personal and business lives.”
Customer
One resident whose life has been affected is Mike Harris, who said his daughter’s car was on the lot for repairs when the cars were taken.
As of Thursday afternoon, he had not received the car and he had not been able to file a stolen vehicle report, he told the Daily News.
His finance company had called and told him he would have the car last week, Harris said. When he didn’t get it back, he said he talked to Henry, whom he said told him he didn’t know where his car is.
Andrus said his records indicate there are issues with that car, but there was no record of contact from Harris.
Andrus added that the promised return of cars is an important event in this case. Once that is done, or is not done, more will be known about how to proceed.
Copyright 2010 Siskiyou Daily News. Some rights reserved
Tuesday, August 17, 2010
http://www.sltrib.com/sltrib/money/50125049-79/loans-auto-credit-loan.html.csp
Consumers loans harder to come by, except those for autos
By LESLEY MITCHELL
The Salt Lake Tribune
Updated 1 hour ago Updated Aug 17, 2010 04:38PM
It’s more difficult — impossible for some — to get a home loan or refinance these days. Ditto for credit cards. And small business loans? Don’t even consider applying for one unless you have a financial house in order.
But auto loans? Not so much. Bad credit, bad credit — it seems like most people these days are still able to finance the purchase of an automobile.
“It’s amazing just how the auto loan industry has relaxed their lending standards, even in just the last 90 days,” said Al Bingham, the Utah author of The Road to 850,” a book about the nation’s credit scoring system.
The goal, of course, is to move cars off lots at a time when many consumers can’t — or don’t want to — make a major purchase.
That’s why General Motors recently agreed to purchase AmeriCredit, a provider of subprime loans made to borrowers with less than perfect credit. Analysts say the acquisition could boost the automaker’s sales by 10 percent to 20 percent a year by giving the carmaker broader control over auto-loan approvals, especially to those with less than good credit.
So why has subprime car lending continued long after subprime home loans have virtually disappeared amid the housing crisis?
For starters, auto loans to those with less than perfect credit don’t carry the risk to lenders than high-risk mortgages do. Customers pay exorbitant interest rates — in some cases pushing 30 percent — and cars can be repossessed fairly quickly and easily if borrowers stop paying. Seizing a home is a much more time-consuming and expensive process.
And many borrowers remain highly committed to their car loans and will stop paying on their credit cards and other debts — even on their mortgages — before they stop paying the loan that gives them a way to get to work or anywhere else the need to go.
Story continues below Sheriff: SC mom killed kids, dumped car in river
Updated Aug 17, 2010 03:50:34PM 0 Comments
Murder charges sought in boys’ deaths in SC river
Updated Aug 17, 2010 06:19:35AM 0 Comments
But there are signs of trouble in the auto lending industry. Auto loan defaults rose sharply in July by 16 percent from June, according to a report released last week by Standard & Poor’s and credit-reporting company Experian.
While mortgage loan and credit card default rates fell slightly, rates for second mortgages and auto loans rose. The default rate on auto loans in particular increased to 1.9 percent in July from 1.6 percent in June, reversing six months of declines.
“It may be an early warning sign, “ said David M. Blitzer, a Managing Director at Standard & Poor’s.
The problem for many car dealers right now, Bingham said, is that the people who can truly afford to buy a car right now don’t want to buy. Many people are holding on to cars longer and delaying vehicle purchases.
But there are a number of borrowers who need a car or want to buy one even if they aren’t in good shape financially.
Since the economy has tanked, the federal government has been pushing incentives for consumers to buy homes, cars and other items — and encouraging financial services companies to lend — in an effort to stimulate the economy.
But credit experts like Bingham aren’t sure that subprime auto loan ultimately are good for consumers — or the economy as a whole. “Is a 20 percent interest rate going to help someone, or make their financial situation worse?” he asks. Plus, a rash of auto-loan defaults down the line could hinder the nation’s economic recovery.
But Craig Bickmore of the New Car Dealers of Utah said it’s important to note that the car-loan industry didn’t bring on the financial crisis and that default rates on vehicle loans overall are much lower than default rates on other types of loans.
By LESLEY MITCHELL
The Salt Lake Tribune
Updated 1 hour ago Updated Aug 17, 2010 04:38PM
It’s more difficult — impossible for some — to get a home loan or refinance these days. Ditto for credit cards. And small business loans? Don’t even consider applying for one unless you have a financial house in order.
But auto loans? Not so much. Bad credit, bad credit — it seems like most people these days are still able to finance the purchase of an automobile.
“It’s amazing just how the auto loan industry has relaxed their lending standards, even in just the last 90 days,” said Al Bingham, the Utah author of The Road to 850,” a book about the nation’s credit scoring system.
The goal, of course, is to move cars off lots at a time when many consumers can’t — or don’t want to — make a major purchase.
That’s why General Motors recently agreed to purchase AmeriCredit, a provider of subprime loans made to borrowers with less than perfect credit. Analysts say the acquisition could boost the automaker’s sales by 10 percent to 20 percent a year by giving the carmaker broader control over auto-loan approvals, especially to those with less than good credit.
So why has subprime car lending continued long after subprime home loans have virtually disappeared amid the housing crisis?
For starters, auto loans to those with less than perfect credit don’t carry the risk to lenders than high-risk mortgages do. Customers pay exorbitant interest rates — in some cases pushing 30 percent — and cars can be repossessed fairly quickly and easily if borrowers stop paying. Seizing a home is a much more time-consuming and expensive process.
And many borrowers remain highly committed to their car loans and will stop paying on their credit cards and other debts — even on their mortgages — before they stop paying the loan that gives them a way to get to work or anywhere else the need to go.
Story continues below Sheriff: SC mom killed kids, dumped car in river
Updated Aug 17, 2010 03:50:34PM 0 Comments
Murder charges sought in boys’ deaths in SC river
Updated Aug 17, 2010 06:19:35AM 0 Comments
But there are signs of trouble in the auto lending industry. Auto loan defaults rose sharply in July by 16 percent from June, according to a report released last week by Standard & Poor’s and credit-reporting company Experian.
While mortgage loan and credit card default rates fell slightly, rates for second mortgages and auto loans rose. The default rate on auto loans in particular increased to 1.9 percent in July from 1.6 percent in June, reversing six months of declines.
“It may be an early warning sign, “ said David M. Blitzer, a Managing Director at Standard & Poor’s.
The problem for many car dealers right now, Bingham said, is that the people who can truly afford to buy a car right now don’t want to buy. Many people are holding on to cars longer and delaying vehicle purchases.
But there are a number of borrowers who need a car or want to buy one even if they aren’t in good shape financially.
Since the economy has tanked, the federal government has been pushing incentives for consumers to buy homes, cars and other items — and encouraging financial services companies to lend — in an effort to stimulate the economy.
But credit experts like Bingham aren’t sure that subprime auto loan ultimately are good for consumers — or the economy as a whole. “Is a 20 percent interest rate going to help someone, or make their financial situation worse?” he asks. Plus, a rash of auto-loan defaults down the line could hinder the nation’s economic recovery.
But Craig Bickmore of the New Car Dealers of Utah said it’s important to note that the car-loan industry didn’t bring on the financial crisis and that default rates on vehicle loans overall are much lower than default rates on other types of loans.
Monday, August 9, 2010
http://newsblaze.com/story/20100807152043j112.nb/topstory.html
A Personal Tale of Murder, Depression and Deprivation in Flint, MI
diggBy John Danz Jr
Somehow, I'm still surprised to see Flint, MI in the headlines.
I moved away from my hometown of Flint just two months ago. It was the best move I ever made in my life. My mom decided to move back to Flint from Texas after three years because she missed her family and hated the fertile, full of opportunity economy of Texas. Trouble is, Flint is an abysmal cesspool financially and socially. She didn't think, and now she wonders how she'll get by without a job from week to week. I can't say I didn't warn her.
Let me put the job market of Flint in perspective for you in a personal manner: In eight months in Flint, my mom had one temporary job for three weeks. I never came close to finding a job. However, within ONE WEEK in my new hometown, I had two job interviews and a job. Call it chance, but I think that speaks volumes for not only Flint's depraved atmosphere, but my mom's foolishness.
Enough insipid tales about my life.
Thirteen stabbings and five deaths later, Flint has made CNN headlines again for its bleak, murderous stigma. To put this in non-boring mass media news terms, an idiot in Flint is acting like he's in distress, only to shank the Good Samaritans that attempt to help him.
What was once 235 acres of prosperity for Flint is now a barren wasteland.
I must say, this is more entertaining than the usual gang shootings. Hearing gunfire every other night for six years got boring, after all. One time, these Emmy award winners decided to entertain me in the neighbor's yard. Soon after, my dad soaked the house in gasoline, threw a match and swept us to a more docile city.
Yeah, I thought I was done talking about my own life, too.
Thirteen stabbings and five deaths later, Flint once again asserts itself as one of the worst places to live and the loud, proud anus of the state of Michigan. All that seems to be left of Flint are the scars in the Earth where automotive factories used to proudly roll out fresh new cars. My mom, grandfathers, grandmother on one side, aunt, uncle and father all made a living through General Motors and Delphi. My grandfather was once vice president for the Chrysler division of UAW. Today, all they have to show for their work are the ashes of the useless certificates they got for their 10-20 years of service resting comfortably in their respective fireplaces. They're still there, because their repossessed houses haven't been sold yet. That explains all of the boarded-up houses on the block I grew up on.
Nope, not done yet. Don't worry - my mom bought a repossessed house with the meager restitution she was given to quit GM. We found a former Fannie Mae executive living in the basement living off of the crumbs of a more prosperous yesteryear. Bitter crumbs, they are.
Thirteen stabbings and five deaths later, Flint now has the attention it needs from the media. Now, everyone can be reminded of how much of a fecal smear Flint has become. A fecal smear of which is becoming less and less conspicuous on the map by the year - but just as smelly. Good news, because it's the only media attention Flint will get until another second grader takes his mom's gun to school and shoots it up.
I finally understood how bad Flint was when I heard a friend of mine was starting a bullet casing collection - from his front yard. When I returned, I saw roaches and rats vacating the city with their belongings on their backs. Now-homeless retirees of GM return to the remains of the once-bustling GM plant to make-believe the tasks that once gave them and their children a future. If walls could talk, there would be a cacophony of screams permeating the dead air from the likes of crack houses, meth labs, condemned shacks and soon-to-be-demolished buildings.
Perhaps you read about the stabbings in Flint on CNN and it was your first time being exposed to the city of Flint. Hell of a first impression! Perhaps you said to yourself "Well, all of Michigan is screwed beyond belief thanks to the collapse of GM and the rest of the automakers." I defy you to take a twenty-year walk back in time and find a city in this state that has filled the toilet full of feces and traveled down the pipes into the deepest, darkest realm of the sewer faster than Flint. Detroit? Sure, but it's a big city. That's not fun, nor is it entertaining. They still have the Red Wings and Eminem. I doubt you'll see any of the few famous faces to come out of Flint "reppin'" any time soon.
Perhaps, like me, you call or once called Flint home and feel the same way I do, and wonder if things will ever change. I mean, come on, even Hiroshima was able to be rebuilt after they were decimated with an atomic bomb. The radiation killed off thousands over time, but at least they had pretty buildings! Flint needs more than simple restoration and urban development - it needs an extreme makeover that would make Ty Pennington run screaming. It needs a complete overhaul financially with competent leaders and minds who can set up the rebuilding process.
This just in - Flint and Michigan is essentially broke. Well, so much for that idea!
Then again, speaking of money, Flint could use what Kalamazoo got - a bunch of billionaires giving millions of dollars towards guaranteed scholarships to schools thanks to their lazy, unmotivated students adding up to a massive dropout rate. It was dubbed "The Kalamazoo Promise." Would Flint have too much pride to accept such a gift? Who knows.
I finally digress.
Thirteen stabbings and five deaths later, Flint still needs help. And thirteen stabbings and five deaths later, Flint still won't get the help it needs. Which means, that's thirteen stabbings and five deaths I'll just experience somewhere else in this depressing, depraved state.
diggBy John Danz Jr
Somehow, I'm still surprised to see Flint, MI in the headlines.
I moved away from my hometown of Flint just two months ago. It was the best move I ever made in my life. My mom decided to move back to Flint from Texas after three years because she missed her family and hated the fertile, full of opportunity economy of Texas. Trouble is, Flint is an abysmal cesspool financially and socially. She didn't think, and now she wonders how she'll get by without a job from week to week. I can't say I didn't warn her.
Let me put the job market of Flint in perspective for you in a personal manner: In eight months in Flint, my mom had one temporary job for three weeks. I never came close to finding a job. However, within ONE WEEK in my new hometown, I had two job interviews and a job. Call it chance, but I think that speaks volumes for not only Flint's depraved atmosphere, but my mom's foolishness.
Enough insipid tales about my life.
Thirteen stabbings and five deaths later, Flint has made CNN headlines again for its bleak, murderous stigma. To put this in non-boring mass media news terms, an idiot in Flint is acting like he's in distress, only to shank the Good Samaritans that attempt to help him.
What was once 235 acres of prosperity for Flint is now a barren wasteland.
I must say, this is more entertaining than the usual gang shootings. Hearing gunfire every other night for six years got boring, after all. One time, these Emmy award winners decided to entertain me in the neighbor's yard. Soon after, my dad soaked the house in gasoline, threw a match and swept us to a more docile city.
Yeah, I thought I was done talking about my own life, too.
Thirteen stabbings and five deaths later, Flint once again asserts itself as one of the worst places to live and the loud, proud anus of the state of Michigan. All that seems to be left of Flint are the scars in the Earth where automotive factories used to proudly roll out fresh new cars. My mom, grandfathers, grandmother on one side, aunt, uncle and father all made a living through General Motors and Delphi. My grandfather was once vice president for the Chrysler division of UAW. Today, all they have to show for their work are the ashes of the useless certificates they got for their 10-20 years of service resting comfortably in their respective fireplaces. They're still there, because their repossessed houses haven't been sold yet. That explains all of the boarded-up houses on the block I grew up on.
Nope, not done yet. Don't worry - my mom bought a repossessed house with the meager restitution she was given to quit GM. We found a former Fannie Mae executive living in the basement living off of the crumbs of a more prosperous yesteryear. Bitter crumbs, they are.
Thirteen stabbings and five deaths later, Flint now has the attention it needs from the media. Now, everyone can be reminded of how much of a fecal smear Flint has become. A fecal smear of which is becoming less and less conspicuous on the map by the year - but just as smelly. Good news, because it's the only media attention Flint will get until another second grader takes his mom's gun to school and shoots it up.
I finally understood how bad Flint was when I heard a friend of mine was starting a bullet casing collection - from his front yard. When I returned, I saw roaches and rats vacating the city with their belongings on their backs. Now-homeless retirees of GM return to the remains of the once-bustling GM plant to make-believe the tasks that once gave them and their children a future. If walls could talk, there would be a cacophony of screams permeating the dead air from the likes of crack houses, meth labs, condemned shacks and soon-to-be-demolished buildings.
Perhaps you read about the stabbings in Flint on CNN and it was your first time being exposed to the city of Flint. Hell of a first impression! Perhaps you said to yourself "Well, all of Michigan is screwed beyond belief thanks to the collapse of GM and the rest of the automakers." I defy you to take a twenty-year walk back in time and find a city in this state that has filled the toilet full of feces and traveled down the pipes into the deepest, darkest realm of the sewer faster than Flint. Detroit? Sure, but it's a big city. That's not fun, nor is it entertaining. They still have the Red Wings and Eminem. I doubt you'll see any of the few famous faces to come out of Flint "reppin'" any time soon.
Perhaps, like me, you call or once called Flint home and feel the same way I do, and wonder if things will ever change. I mean, come on, even Hiroshima was able to be rebuilt after they were decimated with an atomic bomb. The radiation killed off thousands over time, but at least they had pretty buildings! Flint needs more than simple restoration and urban development - it needs an extreme makeover that would make Ty Pennington run screaming. It needs a complete overhaul financially with competent leaders and minds who can set up the rebuilding process.
This just in - Flint and Michigan is essentially broke. Well, so much for that idea!
Then again, speaking of money, Flint could use what Kalamazoo got - a bunch of billionaires giving millions of dollars towards guaranteed scholarships to schools thanks to their lazy, unmotivated students adding up to a massive dropout rate. It was dubbed "The Kalamazoo Promise." Would Flint have too much pride to accept such a gift? Who knows.
I finally digress.
Thirteen stabbings and five deaths later, Flint still needs help. And thirteen stabbings and five deaths later, Flint still won't get the help it needs. Which means, that's thirteen stabbings and five deaths I'll just experience somewhere else in this depressing, depraved state.
Tuesday, March 2, 2010
GM Joins Recall Parade; Cash for Clunkers Irony Surfaces
http://www.associatedcontent.com/article/2753585/gm_joins_recall_parade_cash_for_clunkers_pg2.html?cat=27
General Motors joined the parade of auto manufacturers issuing safety recall notice Tuesday. The GM recall encompasses 1.3 million cars from the 2004-2010 model years which may have defective power steering. GM says
the cars are safe to drive without power steering but harder to handle when turning at speeds less than 15 mph.
The GM models being recalled include 2005-2010 Chevy Cobalts, 2007-2010 Pontiac G5s, 2005-2006 Pontiac Pursuits, and 2004-2005 Pontiac G4s.
The National Highway Transportation Safety Administration received 1,100 complaints concerning Cobalts losing power steering. One injury in 14 crashes resulted from the power steering loss, according to the complaints.
Toyota has been under intense Congressional scrutiny in connection with its own auto recalls, particularly its recall of 5.6 million vehicles for accelerator defects. Unintended acceleration has been blamed for a spate of deaths and crashes involving popular Toyota vehicle models, and the company has been criticized for not acting on the complaints swiftly or effectively. Toyota initially recalled floor mats on the premise that the mats were getting stuck under the accelerator pedals. Later it issued a recall notice on the pedals themselves while acknowledging uncertainty about the efficacy of its proposed fix. Tuesday marks the third day of testimony before Congress for Toyota officials being called to account for their response to the accelerator problems.
Other major auto recalls in the United States in 2010, according to Reuters, include a Honda recall of 646,000 Fit Jazz and Celebrity models for automatic window switch defects and a Honda recall of 438,000 vehicles for airbag defects; recalls overseas involved the Nissan, Suzuki, Peugeot and Daihatsu brands in addition to Toyota.
Last summer, a Federal incentive program known as "Cash for Clunkers" encouraged drivers to trade in older model, less fuel efficient cars for new models. Some of those models, rushed to dealer lots to accommodate
consumer demand, are the very same models now being recalled. While the design defects presumably preceded the existence of the hastily crafted Cash for Clunkers legislation that fomented the production rush, the irony is poignant. Many consumers who traded in clunkers barely drove their new, improved autos off the lot before the safety defects that ultimately led to the recalls began surfacing.
Among the top selling models under Cash for Clunkers,Consumer Reports identified now-recalled Toyota models, including Prius, Corolla, Camry, while US News and World Report identified the GM Chevy Cobalt as the number 10 best selling clunker replacement.
General Motors joined the parade of auto manufacturers issuing safety recall notice Tuesday. The GM recall encompasses 1.3 million cars from the 2004-2010 model years which may have defective power steering. GM says
The GM models being recalled include 2005-2010 Chevy Cobalts, 2007-2010 Pontiac G5s, 2005-2006 Pontiac Pursuits, and 2004-2005 Pontiac G4s.
The National Highway Transportation Safety Administration received 1,100 complaints concerning Cobalts losing power steering. One injury in 14 crashes resulted from the power steering loss, according to the complaints.
Toyota has been under intense Congressional scrutiny in connection with its own auto recalls, particularly its recall of 5.6 million vehicles for accelerator defects. Unintended acceleration has been blamed for a spate of deaths and crashes involving popular Toyota vehicle models, and the company has been criticized for not acting on the complaints swiftly or effectively. Toyota initially recalled floor mats on the premise that the mats were getting stuck under the accelerator pedals. Later it issued a recall notice on the pedals themselves while acknowledging uncertainty about the efficacy of its proposed fix. Tuesday marks the third day of testimony before Congress for Toyota officials being called to account for their response to the accelerator problems.
Other major auto recalls in the United States in 2010, according to Reuters, include a Honda recall of 646,000 Fit Jazz and Celebrity models for automatic window switch defects and a Honda recall of 438,000 vehicles for airbag defects; recalls overseas involved the Nissan, Suzuki, Peugeot and Daihatsu brands in addition to Toyota.
Last summer, a Federal incentive program known as "Cash for Clunkers" encouraged drivers to trade in older model, less fuel efficient cars for new models. Some of those models, rushed to dealer lots to accommodate
Among the top selling models under Cash for Clunkers,Consumer Reports identified now-recalled Toyota models, including Prius, Corolla, Camry, while US News and World Report identified the GM Chevy Cobalt as the number 10 best selling clunker replacement.
Wednesday, January 6, 2010
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