With a short sale offer refused, foreclosure may ultimately the best option

Q: we have a spec in 2007 as the market dropped. We tried to do everything to get this sold recently and received an offer for sale by owner.

At first, our Bank agreed to change the loan into interest only loan to help with cash flow, but we didn't manage to cover these payments. Then our bank went out of business, another bank was captured. We approached our new companion with a short-sale offer, has agreed to pay most of the difference between the amount offered by the buyer the amount owed to the Bank by our use of retirement savings. But they refused to accept the offer due to their loss-sharing agreement with the Government. Now my husband has cancer in step 3, he is unable to work. All our cash reserves have been depleted to follow our payment.

We are in our 50s, fiscally responsible, and would always want to do the right thing. Foreclosure is not an option for us because of what it will do to our credit. We feel the Bank acted very irresponsibly loss-share agreement it works against the taxpayer, for the Bank. The Bank has no incentive to work with us. Do you have any suggestions, we have all encountered complaints?

A. read the letter and felt nauseous. It reminds us of a story was circulating in a year or two before showing that buyers of banks that went under were graph millions by taking over these banks failed.

They were not making money for their smart lending or result better skills in making loans, but a large portion of the guarantees made by the United States Government banks take over failed lenders. Worse still, the Bank's loan more money has been made. It doesn't really make sense to set the condition that the banks make billions of dollars with no risk, but it seems to go right with what you say.

In your situation, you can make the Bank all (or almost all) by a buyer to put most of the money owed on the loan while you pay the difference. Yet if the Bank forecloses on you get half that amount from the sale, the Bank may reveal more. How it works? Well, if your bank to purchase the loans on the books of the Bank on, say, 70 cents on the dollar, the Government has a formula to ensure the difference or a formula based on the difference, your bank might make more money taking the loss than it is done entirely by you.

If the balance of your loan you were $500,000 Shoppers offer: $ 50,000 plus $ 400,000 from the Bank to an amount that was owed. At this point, you would think that the Bank would be ecstatic to receive this loan off its books and fucking. But the Bank may get more money by taking the Government to pay them the difference. It is awful to think that the financial system really work that way, but strange things have occurred in rescuing the Bank.

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With short-sale offer refused, foreclosure may end up the best option

Q. We built a spec house as the market declined. We've tried to do everything to get it sold and recently received a short-sale offer on the home.

At first, our bank agreed to change the loan into an interest-only loan to help with cash flow, but we can't manage to cover those payments. Then our bank went out of business and was taken over by another bank.

We approached our new lender with the short-sale offer and agreed to pay most of the difference between the amount offered by the buyer and the amount owed to the bank by using our retirement savings. But they declined to accept the offer because of a loss-sharing agreement they have with the government.

Now my husband has stage 3 cancer, and he's unable to work. All our cash reserves have been depleted to keep up our payments.

We are in our 50s, have always been fiscally responsible and want to do the right thing. Foreclosure is not an option for us because of what it would do to our credit. We feel the bank has acted very irresponsibly and this loss-share agreement is working against the taxpayer and for the bank. The bank has no incentive to work with us.

Do you have any suggestions, and do we have any recourse for complaints?

A. We read your letter and felt sick. It reminds us of a story that was circulating a year or two ago that showed that buyers of banks that went under were raking in millions by taking over those failed banks.

They weren't making this money as a result of their wise lending or better skills in making loans, but in large part from guarantees made by the U.S. government to the banks taking over the failed lenders. The worse a loan performed, the more money the bank made. It didn't quite make sense to set up a situation that allowed banks to make billions of dollars with no risk, but it seems to follow directly with what you are saying.

In your situation, you could make the bank whole (or very nearly whole) by having the buyer put up most of the money owed on the loan while you put up the difference. Yet if the bank forecloses on you and gets half that amount from the sale, the bank might make out better.

How would that work? Well, if your bank purchased the loans on the books of the bank at, say, 70 cents on the dollar, and the government has a formula to guarantee the difference or a formula on the basis of the difference, your bank might make more money taking the loss than being made whole by you.

If your loan balance were $500,000 and you got the buyers to offer $400,000 plus $50,000 from you, the bank would get close to the amount it was owed. At that point, you'd think the bank would be ecstatic to get this lousy loan off its books. But the bank might get more money by foreclosing and having the government pay them the difference.

It's awful to think that the financial system actually works that way, but strange things have happened in the bank bailout.

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Cash Flow Trader Chuck Hughes Sells Option Premium to Bank on Stock Market Volatility?

Cash Flow Trader, a new VIP service offered by professional trader Chuck Hughes, arrives at time when heightened market volatility and worries of an impending global financial meltdown trouble the minds of investors and stifle the efforts of traders looking to follow any clearly defined trends. Those of us clobbered by the markets in recent years struggle to know exactly where to find safe haven for the tiny remnants of our investment and retirement accounts.  And for those of us depending on those nest egg fragments to provide any sort of retirement income, it feels like a precarious race against the clock to rebuild in time simply to make ends meet.

So we attempt to keep the faith and hope that somehow, if we do what we’ve been told, things will simply work themselves out.  But are we banking on a pipe dream? According to Chuck Hughes, "It doesn't take triple-digit returns to build your wealth quickly, but it does take a lot better results than you can get passively investing in a mutual or index fund.” Does Hughes know what he’s talking about?  He certainly has had an uncanny ability to thrive and take huge financial gains – time and time again – from the very market conditions that wiped out traders and gouged investors as a whole.

How do you make money during a stock market crash?  How do you profit from high market volatility?  Yes, people are doing it, and they do it all the time.  But how?  Is there some sort of secret that only Wall Street fat cats with insider knowledge know? Cash Flow Trader promises to pull back the curtain and let you inside to view the methods, strategies and recommendations that work. “I want you to see with your own eyes just how much money you can make when you trade the right way, with a seasoned pro showing you precisely what to do each step of the way,” claims Chuck Hughes.  Should we listen to and believe Hughes?  A look at his audited track record for the past 12 years tells us we should at least take a look at what he has to offer.

Stock Market Crash – Another Feeding Feast for Chuck Hughes?

Will the stock market crash again this year?  Pick any expert analyst out of a hat blindfolded, and he will most certainly answer that question in the affirmative. Tough news for investors, but news of very little consequence for Chuck Hughes based on his stellar track record of thriving during market routs that gutted the nest eggs of the masses.

In deed, it’s documented that Hughes has averaged a $160,000-per-month take during the worst stock market decline in decades. For example, how many of us are still feeling the pain of the 2008 market collapse?  Hughes was able to pull in almost half a million dollars during that episode. And what about the 2000-2002 massive tech stock selloff?  Hughes capitalized on that one by following the money on the short side all the way down to a nice $1,244,575 profit for himself.

That, of course, is the advantage of trading vs. investing – coupled with the specialized knowledge that lets you follow the big money and suck the profit out of any market condition.

Cash Flow Trader (we peak inside the service)

Heavy on the minds of traders and investors seriously considering taking the plunge with Hughes looms one important question: will following the recommendations make us any money?  After all, the entry fee into this exclusive club is not chump change for many of us.  

Hughes gives access to all 5 wealth-building systems he claims average him $144,000 gains every single month.  These systems include all 3 of his options strategies in addition to a stock picking and a stock dividend strategy.

Hughes promises these systems will produce serious profits for serious investors and traders.  How serious do you have to be?  Well, you’d probably better have at lease $5 grand in risk capital to get started properly or you might just end up frustrated.

Nevertheless, following these systems and taking the trades on paper in a demo account will teach the serious student and prepare him to pounce once he finishes accumulating the proper trading capital to really dig in and get started in the real world – practice makes perfect.

Fat Cats vs. Investors – Chuck Hughes vs. Gordon Gekko?

Hughes talks big about offering Cash Flow Trader to the public almost as if he’s doing it out of the kindness of his generous heart.  He claims the millions he’s made have given him everything he’s ever wanted and he does not need our money – he gets his satisfaction by helping others become big-time winning traders.

So if that’s the case, shouldn’t he just give away the systems and recommendations for free?  Okay, business is business, and as the famous Wall Street character Gordon Gekko put it, “Greed is good”.

So is Chuck Hughes really a type of Gekko?  Whatever conclusion you draw, the fact remains that you can try out his Cash Flow Trader without any risk for 3 months.  You either discover for yourself that he’s the real deal and you make a ton of cash, or you find out that he’s “full of it” and you get all your money back that you paid to check things out.

Whatever the case, you won’t learn anything from the sidelines.  To quote Gekko once more, “If you’re not inside, you’re outside.”

Insider Secrets and Big Cash Promises

To those who decide to join Chuck Hughes on the “inside” and take action putting his systems to work, he promises, “We do everything humanly possible to help you start making serious profits quickly.” For free video training and full access to the VIP service, visit http://cashflowtraderchuckhughes.com/gekko

Cash Flow Trader Chuck Hughes, the 7 time competition winning Options and Stocks trading master, has personal profits of 5.7M in the last 3 years. Get full details at http://cashflowtraderchuckhughes.com

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Option Trade Alerts Announces February Expiration

The Option Trade Alerts Service has produced a 26% gain on positions traded during the February month expiration, based on a $30,000.00 cash account value. This gain is calculated based on account size, including reserves, instead of a cash on cash basis, to give a more realistic result.

"The Option Trade Alerts Service uses an advanced Iron Condor Strategy, combined with strategically placed contingent orders and unprecedented Money Management." Says Shawn Saint-Prix, Senior Trader with the services parent company, Goldmine Investment Group, LLC.

The service has been accepting subscribers since March, 2010, however has been keeping track of trades using this specific strategy since November of 2008.

"We are a relatively small service, offering automated trading of our alerts with 2 very proficient Autotrading Partners. We only see ourselves growing just a little more, before we stop accepting new subscribers. We believe this is important, in order to ensure proper order execution and ensure an adequate level of customer support."

Option Trade Alert service that offers alerts to subscibers on a monthly subscription service. Please visit optiontradealerts.com for more information.

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Trading-Options-Online.com Releases New Video On “Understanding Option Sensitivities 101”

Alberto Pau’s website http://www.trading-options-online.com published a recent video on how to understand option sensitivities when trading options online. In less than 3 minutes this expert online options trader reveals what the key 5 “Greeks” are and how they can be used for trading and risk management.

When interviewed, the website owner stated “With the reduced market volatility this year many forex and commodity traders have looked to start trading options online. However, very few of them fully appreciate the intricacies of these derivative instruments.” Mr. Pau then continued “This video is the first of a series on http://www.trading-options-online.com designed to address this information gap.”

Trading options online can offer many profit opportunities that most novice traders don’t see. The flipside is that it requires an understanding of a number of concepts –some of which mathematical- beyond prices rising and falling. The growth of online trading now means that many strategies that were previously privy only to a few “insiders” are now available to the general public, very few of these being free to access though.

This tutorial sits within a larger education project that Alberto Pau started in the recent months. On his website are available a number of articles on trading options online designed to cater from the novice trader all the way to the experienced dealer. “My objective is to allow the wider public to trade on the same level-playing field as the larger funds or investment houses”, states Pau. He then concludes: “This means starting by spreading the knowledge and the industry's best practices.”

For more information on Alberto Pau’s “Trading Options Online – Understanding Option Sensitivities 101” video click here: http://www.trading-options-online.com/trading-options-onl....

Alberto Pau (BSc, MSc) is a leading online options trader and risk management consultant in the forex and commodity markets. Alberto spent 7 years trading derivatives (both vanilla and exotic) for some of the world’s largest investment banks.

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