American real estate crisis: real estate lending – the wobbly house of cards

Subprime mortgages contributed significantly to the recent billions in losses by banks. But under the surface already another problem brewing: the business with second secured real estate loans.

Encouraged by the rise in house prices borrowers have increasingly tapped tied up in their homes capital in order to finance a new car, for example, a renovation or even a deposit. In this way, the lending of property assets formed the foundation of the American consumer strength. However, given the housing market crisis and steadily falling home prices, the problems of this lending are programmed. End of September, loans and credit lines totaling at least 14.7 billion US dollars had already overdue – the highest level in a decade. “After subprime mortgage loans this second secured real estate loans are currently the biggest problem the industry,” says analyst Frederick Cannon from the investment firm Keefe, Bruyette & Woods.

In addition, little can be done to avert the negative effects of a worsening of this 850 million US dollars heavy market. The creditor of a mortgage loan has a first priority claim to the underlying property. In case of a foreclosure, it can sell the property to satisfy his demands for money. If the proceeds achieved in this way but this is insufficient to cover the outstanding balance sum of the creditor, a bank gets nothing with subordinated collateralized real estate loans. “Must be the lender of mortgage loans face the music,” said Amy Crews Cutts, deputy chief economist of the Mortgage financier Freddie Mac.

Of these, JPMorgan Chase, be affected Washington Mutual, IndyMac, Countrywide Financial and other financiers. On January 16, JPMorgan reported that had (against only 125 million US dollars for subprime mortgages) are made in the last quarter of additional depreciation of problematic mortgage products in the amount of 395 million dollars. Washington Mutual announced in the last quarter, that its holdings of defaulted mortgage loans and credit lines since the end of 2006 has increased by 130 percent and led to losses of 976 million dollars. Even conservative lenders, which have so far been largely spared from the worst of the subprime crisis, now in trouble. For example, Wells Fargo had in connection with real estate loans recently provisions totaling $ 1.4 billion form.

Until recently, this form of lending was mainly in the allocation of credit lines. They allowed borrowers to convert their real estate assets into cash to pay off credit card debt, for example. But as the boom continued, rising house prices to new heights, banks began to offer second secured or “piggyback” loans (loans that are taken in addition to a first mortgage, usually to the buyer the payment of the deposit ease). This practice enabled mainly-prime buyers to acquire even larger houses they could never afford. Traditional lending standards were thrown overboard and so borrowing the buyer exceeded noticeably the value of their homes. According to the trade publication “Inside Mortgage Finance” as a result, the share of this segment increased in the total mortgage market to 14.4 percent.

The boom meant that homeowners took advantage of the system for their own ends and step by step, all in their homes silvered capital employed – a situation that has been partly facilitated by banks do not be investigating whether borrowers shots sequence loan from competitors- Loans-n-Loans. Another malicious practice has been in addition to a provided with payment options adjustable rate mortgage in the award of subordinated real estate loans. This type of mortgage allows borrowers among other things, to pay a lesser amount than the usual monthly interest payments. The missing payments are added to the outstanding loan amount, which consumes increase gradually the real estate assets. This creates a risky property loan in addition to the already risky mortgage.

4 Ways to Save Money on Commercial Snow Removal Service Pricing in Denver

If there is one thing nearly every retail or commercial snow removal service customer in the world can agree on, it’s that they would all like to save a little bit of money. After all, a Colorado blizzard can feel like a bit of bad luck (and unexpected expense) for Denver area businesses, so wouldn’t it be nice to get just a little bit of that back?

When it comes to saving money on professional snow removal services, however, there are good ways and bad ways to go about it. What we don’t recommend is that you simply choose the lowest bid right off the bat: there’s just too much chance you’ll end up with someone unreliable who will cost you more money in the long run. What you might try, though, are a few of the tips below…

Get an agreement in place before you need commercial snow removal.
As with any other area of life or business, an ounce of prevention is worth a pound of cure. Get together with a professional snow and ice removal company, like ours, before the white stuff starts coming down. You won’t just save on rates, you’ll get faster service too!

Get a snow removal contract for all your locations.
If you’re working with a vendor who has the right equipment and locations, you could have one team clear all of your commercial or retail locations, not only in Denver but is far away as Aurora, Lakewood, Littleton, Englewood, DTC, Arvada, and beyond while getting a better rate in the process.

Build contingencies into your snow removal agreement.
A lot of snow removal bids seem extremely competitive… right up until it snows for the third, fifth, or tenth time. It’s usually more efficient and inexpensive to get a rate on “excess” snow and ice removal up front, than it is to need it later.

Look at the big picture of snow removal.
Part of the “cost” of a professional snow removal service is the missed hours in revenue your business is going to suffer if they don’t show up on time. Take that into account and select a professional snow removal company in Denver that you can trust.

Why Office Building Managers Fear the Forecast…And How You Can Stop Worrying About Snow and Ice Removal

Few things make office building managers in Colorado cringe like the thought of several inches of snow and ice falling overnight. Not only might their buildings have to be closed, but there could be missed deliveries, damage to autos, or even injuries to tenants and employees trying to make their way into work.

Snow in Denver is almost enough to make you want to move to Arizona…

Alright, maybe things aren’t quite that bad, but harsh winter weather is a big problem for office building managers throughout Denver and the Front Range. Snow covered buildings and parking lots mean lost money, more complaints, and major hassles.

Stop worrying about ice and snow removal

If you guessed that we were going to suggest a professional snow and ice removal company in Denver as the answer to your problems, you’re only half right. The trick isn’t in contracting with a snow removal service, but choosing the right one.

A few things to look for in a Denver snow removal company:

  • Service that begins early in the morning and runs all day
  • Affordable pricing and flexible contracts
  • Locations and service throughout the Denver area, including Arvada, Aurora, Lakewood, DTC, Littleton, and Englewood
  • Reliable equipment – especially snow plows and trucks
  • Fast, friendly service
  • Insurance that covers liability and potential damages

The difference between having snow removal professionals that meet these criteria and ones that don’t can mean days of lost work and income. That’s why it’s so important, if you own or manage an office building in Colorado, that you have a snow and ice removal company you can count on. Once you do, you can stop fearing the forecast and dream of beautiful white Denver winters.

Are You Betting Your Business on Colorado’s Weather?

One of the most interesting things about living in or around the mile high city is that you never can be quite sure about the weather. This is especially true in the winter, when the days can range from incredibly mild to unexpectedly vicious. We live in a part of the country where 60’s and sun can be followed by a white-out blizzard that dumps two feet of snow from the mountains on east.

Do you really want to bet your businesses revenue on Colorado’s weather?

Lots of business owners do just that. Thinking they’ll get by with the one or two bad days they think may be coming, they decide to pass on professional snow removal services, or sign a contract with the cheapest snow removal company and hope things will turn out for the best. But as years of experience in the professional snow removal service industry has taught us, that’s not a good strategy. Here’s why…

The snow season isn’t predictable…but the bottom-line consequences are:

  • If you aren’t open, your business is not making money
  • You’ll earn a lot more per hour serving your customers then you will shoveling snow
  • When you figure in maintenance costs, fuel, and the time it takes to operate one, a personal snow blower usually ends up being a lot more expensive than a professional snow plow
  • Having the snow and ice removed from your parking lot or commercial property professionally saves you on wear and tear on your property, maintenance, liability, and damage costs
  • If you fall or hurt yourself while clearing snow and ice, your business is likely to suffer

For these reasons it doesn’t make a lot of sense to bet your company’s profits on Colorado’s weather. Do yourself a favor and opt for a professional snow and ice remover like us – whether it snows a lot or a little, your bottom-line will be protected.