How To Apply A Home Loam For First Time Buyers

http://springhillgrouphome.com/2012/12/how-to-apply-a-home-loam-for-first-time-buyers/ 

Purchasing and owning a home is one of the biggest financial investments you’ll ever make, and no doubt you’ll have many questions regarding the process. First-time buyers enjoy some special privileges and opportunities.

Some banks will offer first-time buyers a bond above 100% to help you cover the transfer and legal costs as well as the purchase price. And almost all institutions now offer a 30 year bond repayment period, to make the monthly costs more accessible, an option which banks created specifically for first-time buyers.

Make that very clear on your application that you’re a first-time buyer.

It is a general rule, make a quality purchase, buying a house is a big decision so you have to decide wisely.  When house hunting you can follow this tips.

Take a digital camera with you when house-hunting. Having photographs in front of you will help you recall specific details of each home you see – which is particularly useful if you’re viewing up to six homes in a single day.

Write down key points about each home you see as you’re inspecting it. In particular, record its size, special features, design and other factors which may influence your decision.

Take note of the area and its surrounds. Is the house close to all amenities, or is it in a remote location? Would you be happy to live in that particular neighborhood?

When you’ve narrowed down your options, ask to view the homes you like best a second time. This will help you to narrow down your options further.

Banks have many considerations before lending you loan, they don’t just look at your financial situation; they also consider the property that you want to purchase.  Then it is still subject to approval, if what you wanted to purchase seems that you will not going to afford it chances are you will be decline. The more money they have in their account, the less danger there is that you’ll suddenly be called on in the future to pay large amounts towards repairs or maintenance – affecting your ability to pay the installment on your home loan.

Get Help from Professionals, admit it, you are not so familiar with the big leap you are about to do.  It’s always advised that you get someone knowledgeable to help you interpret the information and prepare your application.

It is essential to ascertain whether you are ready to make such a big, constant financial commitment.  If you are secure in your job and gross a regular monthly salary, you’ll have a quite good idea of whether or not you can afford to buy a home.  Also important to bear in mind are the costs and fees linked with purchasing your new home.  You’ll need to have money saved to place a deposit on the home, and you’ll also have to consider moving costs, home-owners’ insurance and rates on your property.  To make certain that you can afford the purchase, it’s necessary to calculate all your monthly operating cost and those concerned in buying your first home.  As a general rule, your bond repayments, together with taxes and property insurance, shouldn’t go beyond 25% to 30% of your gross income.

Springhill Group Home : How To Apply For Bank Loans

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Nowadays, banks doors are seem to be close for the public because of the effects of unfettered credit card debt, housing foreclosures, and price increases on everything from a gallon of gas down to a can of sardines, bank loans are fast becoming a shrinking commodity due to economic downfall.  The banking world is acting in response to the economic turmoil by tightening the reigns in the lending department.

With the cards stacked up against many bank loan applicants and with the big chances of getting knocked back can seem prohibitively high, this became sour news to consumers and small businesses in need of additional funding.

It may seem impossible so forget all the doom and gloom rather present a clear, compelling case, backed up by hard facts, you stand a great chance of getting the money you want.  Banks are still also a business and they want to lend money to viable businesses alone.  They will definitely lend you money if you can show them that your business can produce enough profit to prosper and you are able paying them back.  It will also be a plus point if you have track record to point to.

Being prepared is always the key, you will have a higher percentage of getting what you want if came prepared.  You need to know exactly what you want before you start pitching for a bank loan because if you aren’t clear in your own mind what you want, tendencies are you will be turned down at once.

You’ll need to present a credible business plan and be able to speak with confidence about your business’s commercial offering.  You may ask help from a business adviser towards your business plan.  Plan your dialogue; know exactly how much money you need and how you will spend it.  It will make you look organized and goal oriented.  You must explain them clearly how the cash you are asking for will increase profit in your company or business.  Be ready to present monthly cash flow projections for the next four quarters.  This is necessary so will be able to demonstrate you can comfortably meet interest and loan payments or in other words you can really pay them.  Expect that the higher amount you’re asking for the more details you are ask to give.  It is also better to include a ‘repayments’ figure in your calculations.

You must give the impression to the bank that you are the real deal.  Be ready to detail any market research you have carried out.  The people in your team is also a plus, make them realize that you have the best team and your business is a sure hit.

Nothing beats being honest but also remember to be energetic and enthusiastic to build rapport to the one your dealing with.  The bank will need a true picture of your business so it will also be a good idea if you mention weakness in the business but not too much or else you will fail.

After making sure about those details, also it is better to have all documents to hand so that you are able to furnish the bank with up-to-date personal and business financial histories. Bring with you acceptable credit score or personal reference, and to go through your latest accounts, tax returns, assets and liability statements.

Lastly, you need to think about terms.  This is very important.  How many years will you need to repay the loan?  Make sure you have fixed rate of interest, or a variable rate which moves up and down with the Bank base rate.  The terms should fit your business strategy, and ensure you can continue to meet your repayments even if the company hits turbulence.

Newscenter Springhill Group Home – Two Land Banking Fraudsters Convicted

http://newscenter.springhillgrouphome.com/2012/12/springhill-group-home-two-land-banking-fraudsters-convicted/ 

Two men jailed in the UK’s first criminal trial involving land banking fraud in the City of London Police investigation

A £3 million was proven to be gathered from 300 investors the pair cheated, evidence was pointing the two as culprits.  Their strategies were to fool their victims like elderly and those who are vulnerable into buying plots of land that were either worthless or massively over-priced.

Found guilty of five counts of money laundering, the two men (42 and 32 years old) were sentenced to seven and six years at Isle worth Crown Court.

Their claim was that the locations of the supposed to be valuable plots were marketed as being in a prime position for development and would quickly increase in value.  But the truth of the fact is that investors were putting their money into plots located on farmland, in the Green Belt, within an Area of Outstanding Natural Beauty or on the sides of hills, with no chance of gaining planning permission let alone building houses.

The two were just funneling off the funds into a network of bank accounts while the investors received small returns while others lost everything.  In a matter of two years they manage to con 300 victims, one of which is an elderly man who was suffering from terminal cancer losing almost £300,000 and a woman fooled by as much as £373,000.  In order for people to buy their schemes, cold calling and high pressure sale tactics were put into play to target and then bully them.

According to DC Dave Parkinson, from the City of London Police, ”The pair preyed on the vulnerable, exploiting their desire to put their savings in something tangible that would provide them with long-term security. They cared not from whom they stole, but only for what they could take.”

“Plots of land that were good for nothing and worth a fraction of the asking price were marketed as a sound investment with planning permissions in the pipeline and development round the corner. The gang used all the tricks of the trade to give the appearance of legitimacy, picked off their targets over the phone and then disappeared without trace with their savings.” He added.

Springhill Group Home Loans: Avoid House Loans and Bank Financing Frauds

http://springhillgrouphome.com/2012/11/springhill-group-home-loan-avoid-house-loans-and-bank-financing-frauds/


Scams that are perpetrated through in house financing are almost limitless.  Having a house is not just a luxury but it is a necessity.  Buying a house is not just an investment but having a place you can call home.  This is a place where you can create memories and a place where you could go home to after a long day, a place where you can be with the family.   A place where you can be stress-free so buying should also be stress-free.  Nowadays it is hard to have one of your own added the trouble of being scammed by people who will do anything just to steal money to others.  Here are some tips to avoid house financing frauds:

Brokers will always find a way for you to extend payment terms.  Pay attention to the actual price and interest rate.  We often take more importance to the monthly rate rather than the actual price, remember it is always better to pay in shorter term; the longer you pay the higher the cost will be.  If ask, “what sort of payment you are looking for?”, he just wants to get an idea of how willing you are to pay so that he can tweak the loan to fit the payment by extending it.

Know your credit score, the scenario often goes like this.  A scam will let you believe that it is bad, he will tell you that he is not sure and he will talk to the manager and let you know.  And of course a few moments later he will go back and congratulate you because the manager granted and wishes to finance you.  They will give you an insanely high rate a 12 – 13 %, when you could have gotten a rate of half that you had financed trough your bank.  They have really approved you trough their bank but probably much less but they charge you above the interest.

Do not fall for “pay no interest for 6 months”, it is a trick!  Because it is definitely untrue, once the grace period is done sure your interest rate would skyrocket!

Fraud on the other hand is also being committed by the barrowers without the realizing it.  The FBI defines mortgage fraud as "any material misstatement, misrepresentation or omission relied upon by an underwriter or lender to fund, purchase or insure a loan."  Lying about your application falls under the category of mortgage fraud.  Even a tiny white lie wouldn’t do, it is considered to be a mortgage fraud.  But more often than not, barrowers are not aware of this because a real estate professional suggested it’s no big deal.

It is actually a big deal, you can be penalize or sued because of it.  The so called “creative financing” went out in the 70’s.  If the lender finds put about you false application, even a tiny detail on it, not only they can demand immediate full payment of your plan but they could ask you to pay 6-figures fines. That is aside from the possibility of being sued for it.

If approached by someone who gives you offer that is too good to be true, most likely it is a fraud.  Being part of a mortgage fraud has it consequences; remember house loans and bank financing frauds are against the law.  Always make your own investigation first before engaging in to businesses and availing plans.

FHA Warns About Home Equity Mortgage Loan Scams

http://www.fhanewsblog.com/2012/10/fha-warns-about-home-equity-mortgage-loan-scams/

The FHA official site includes a page about reverse mortgages and Home Equity Conversion Mortgages. On that page, you’ll find a warning from the FHA and HUD about scam artists who take advantage of some loan applicants who don’t know enough about the FHA’s free information on HECM loans and reverse mortgage loans.

“Reverse mortgages are becoming popular in America” the FHA site says, “Reverse mortgages are a special type of home loan that lets a homeowner convert the equity in his/her home into cash. They can give older Americans greater financial security to supplement social security, meet unexpected medical expenses, make home improvements, and more. If you are interested in a reverse mortgage, beware of scam artists that charge thousands of dollars for information that is free from HUD!”

The warning is good–but what kind of information are these scam artists charging so much money for? According to the FHA, simple details such as the nature of a HECM loan, who is eligible, even free advice about whether a borrower should us an estate planner to find a participating lender.

On this topic, the FHA and HUD advise:

“FHA does NOT recommend using any service that charges a fee for referring a borrower to an FHA-approved lender.  You can locate a FHA-approved lender by searching online at www.hud.gov or by contacting a HECM counselor for a listing. Services rendered by HECM counselors are free or at a low cost.  To locate a HECM counselor Search online or call (800) 569-4287 toll-free, for the name and location of a HUD-approved housing counseling agency near you”.

Very good advice for borrowers age 62 an older (the only people who qualify for FHA HECM loans) interested in applying for an FHA Home Equity Conversion Mortgage. Here’s another fact about HECM loans you might not know–according to the FHA official site:

“By law, you have three calendar days to change your mind and cancel the loan.  This is called a three day right of rescission.  The process of canceling the loan should be explained at loan closing.  Be sure to ask the lender for instructions on this process.  Mortgage lenders differ in the process of canceling a loan.  You should ask for the names of the appropriate people, phone numbers, fax numbers, addresses, or written instructions on whatever process the company has in place.  In most cases, the right of rescission will not be applicable to HECM for purchase transactions.”

Los Angeles Man Tied to Series of Fraud Cases Sentenced in Medicare Scheme

http://www.nbcbayarea.com/news/local/LA_man_tied_to_series_of_fraud_cases_sentenced_in_Medicare_scheme-171479001.html  

A Los Angeles man was sentenced to six years in prison last week for his role in a power wheelchair scam, topping what prosecutors say has been a series of Medicare fraud cases.

David James Garrison, 50, a former physician assistant, was found guilty by a federal jury for his role in submitting $18.9 million in fraudulent Medicare claims for power wheelchairs and other equipment.

The wheelchair case is the third time Garrison has been accused of Medicare fraud.

In 2009, Garrison pleaded no contest to tax evasion for his role in what prosecutors described as a fraudulent medical clinic. He pleaded not guilty in October to charges that he forged prescriptions as part of an OxyContin ring that sold 1 million pills on the streets. That case is ongoing.

Garrison's attorney did not return a call for comment about the cases.

Garrison's physician assistant license lapsed in 2009, said Russ Heimerich, a spokesman for the Department of Consumer Affairs, which oversees many state licensing boards. He said the board examined the tax evasion case and did not see it as grounds for discipline.

According to court documents, Garrison's cases involved the use of “cappers” or “marketers” who recruited Medicare beneficiaries to submit to unneeded care or hand over their personal information. That information was used to bill the program for medications, services or supplies that the patients didn’t need.

In the wheelchair case, prosecuted by the Los Angeles U.S. attorney's office, one witness testified that  marketers had to recruit beneficiaries as far as 300 miles from Los Angeles because so many local people had already been used in other fraud schemes.

In the first health fraud case linked to Garrison, he was described as an “at large” suspect in October 2007 when then-Attorney General Jerry Brown announced arrests in a $1.5 million health fraud scam.

"The suspects create a fake healthcare clinic to line their own pockets rather than help the sick and elderly," a 2007 statement from Brown said.

In that case, Garrison was accused of ordering medically unnecessary diagnostic tests at Scott Medical Center in Burbank, where he had worked since 2003. Medicare and Medi-Cal beneficiaries were recruited to go to the clinic, where expensive tests were ordered and billed to the government.

Garrison pleaded no contest to tax evasion in 2009 related to his earnings from the clinic. 

When federal authorities arrested Garrison in the wheelchair scam in 2010, he was also charged for keeping a .357 handgun in an unlocked hatbox near the front door of his Inglewood apartment. Garrison pleaded no contest in 2010 to being a felon in possession of a firearm.

Heimerich said while the gun case was prosecuted by the state, it arose from a federal arrest that did not trigger a notice to the physician assistant licensing board. Also, he said a state court clerk was required to notify the board but did not.

During a two-week trial, evidence showed that Garrison worked at Van Nuys and Los Angeles clinics where he wrote prescriptions and ordered tests on behalf of six doctors, including one whose photo he couldn't identify.

With Garrison’s prescriptions in hand, co-defendant Edward Aslanyan sold them for $1,000 to $1,500 to owners of about 50 different medical equipment firms. The medical supply companies used the prescriptions to buy the chairs from wholesalers for about $900, then billed Medicare for up to $5,000 per chair.

The hefty profit margins have made the wheelchairs a major target for Medicare fraud throughout the U.S. Garrison and Aslanyan wrote and sold the prescriptions from March 2007 to September 2008, prosecutors said.

A jury found Garrison guilty of conspiracy to commit health care fraud, six counts of health care fraud and one count of aggravated identity theft. Aslanyan pleaded guilty to his role in the scam and was sentenced to six years in prison as well.

According to Assistant U.S. Attorney David Kirman, the medical equipment firms included one run by a pastor, Christopher Iruke, who relied on members of the Arms of Grace Christian Center to perpetuate  Medicare fraud.

Court documents show that two Garrison acquaintances told a defense investigator that he was their children's track and field coach and was honest and well-liked. One parent said Garrison's "integrity is unshakable."

In November, Garrison faces trial on drug charges related to a clinic that allegedly forged prescriptions for the addictive and powerful painkiller OxyContin, which was sold on the street for up to $30 per pill.

Prosecutors say he worked there from the summer of 2009 to February 2010. He has pleaded not guilty.

In that case, federal prosecutors allege that Garrison worked as a physician assistantat an Eighth Street clinic in Los Angeles where recruiters offered Medicare and Medi-Cal patients cash or free medical care to go to the clinic.

There, Garrison and others met briefly with patients and issued prescriptions of 90 top-strength OxyContin pills. Other members of the alleged drug ring went with the patients to obtain the pills from pharmacies and gave them to another man who sold them on the street.

Garrison told investigators that he issued the prescriptions if he felt the patients needed pain medications or had been taking OxyContin.

View this story on California Watch

Briefs..... - thenews.com.pk

http://www.thenews.com.pk/Todays-News-3-132475-Briefs  

Business digest

China paper hints at anti-Japan sanctions

BEIJING: The mouthpiece of China’s Communist Party warned on Monday that Japan’s economy could suffer for up to 20 years if Beijing chose to impose sanctions over an escalating territorial row.

Anti-Japanese protests have been held across China in recent days over a dispute on a group of small islands in the East China Sea claimed by both countries but controlled by Tokyo.

The row intensified last week when the Japanese government bought three of the islands, effectively nationalising them, and China responded by sending patrol ships into the waters around them.

Trade sanctions between Asia’s two biggest economies could cast a pall over growth on the continent, which major Western countries are counting on to drive recovery from the global slowdown.

A commentary in the People’s Daily newspaper said the Japanese economy has already experienced two lost decades from the 1990s and was suffering further weakness in the aftermath of the world financial crisis and 2011 earthquake.

Digital news offering aims at high ground

WASHINGTON: It seems like a terrible time to be launching a news operation.But there are opportunities and niches, and the new digital media launch called Quartz from Atlantic Media Company seeks to exploit them.

Quartz is set to launch in the coming weeks as a “100 percent digital” news operation covering “the most important themes of the new global economy,” said editor-in-chief Kevin Delaney.

Quartz has been recruiting a small number of veteran journalists for an overall news staff of around 25 people. The operation will feature tablet and mobile displays as well as a desktop website, qz.com.

“There is an opportunity to do great journalism on a digital platform,” Delaney, a former managing editor of The Wall Street Journal Online, told AFP.“It’s a great time to launch a proBject like this. We’ve learned the lessons of what works over the last few years.”

Quartz will offer free content, with revenue coming from advertising, aiming to cover key global business issues and reach readers around the world.“We’re really confident in the ad-supported model,” Delaney said. “There has been strong advertiser interest.”

The name Quartz was chosen “because it embodies the new brand’s essential character: global, disruptive and digital. Quartz, the mineral, is found all over the world, and plays an important role in tectonic activity,” a statement said.

South Korea think-tank cuts growth forecast

SEOUL: South Korea’s state-run think-tank on Monday cut its forecast for the country’s growth this year to 2.5 percent, citing the Eurozone debt crisis.

The Korea Development Institute’s latest outlook is well below the government’s revised growth forecast in June of 3.3 percent, and over a percentage point below a May prediction of 3.6 percent.

The country’s exports dropped sharply for a second straight month in August, suggesting the export-reliant economy is struggling with shrinking demand overseas.

It said Asia’s fourth-largest economy is expected to expand 3.4 percent next year, gradually recovering from the slowdown caused by slow exports and sluggish domestic demand.

Philippines tips economy to grow six percent

MANILA: The Philippine economy could grow by almost six percent this year thanks to improving business optimism despite a series of destructive storms in recent months, officials said on Monday.

The economy, which grew by 6.1 percent on year in the first half, could do even better in the rest of the year as the government implements measures to boost laggard sectors, socioeconomic planning secretary Arsenio Balisacan said.

He added outsourced businesses, trade and tourism were all doing well and agriculture and manufacturing were expected to pick up in the second half.

“With the healthy macroeconomic fundamentals and the higher business optimism, we will most likely hit the upper end of the 5-6 (percent) target,” he told a forum with investors.

Heavy rains and storms last month and early-September, which left huge parts of the capital flooded, killings scores and displacing millions, had only a minimal effect on the economy, Balisacan added.

He said farmers still had time to re-plant after the storms, adding that the floods affected mostly small businesses and not the large factories or call centres.

Tourism Secretary Ramon Jimenez cited the 11.68 percent rise in tourist arrivals to 2.2 million in the first half of the year as a further reason for optimism.

Central bank governor Amando Tetangco reported a 5.3 percent rise in remittances from the millions of Filipino working overseas to $13.3 billion in the first seven months of 2012.The officials also reported increased interest from potential foreign investors, following President Benigno Aquino’s election in 2010 on an anti-corruption platform.

Turkish unemployment rate drops to 8 percent

ISTANBUL: Turkey’s unemployment rate fell to eight percent of the workforce in the three months from May to July, the lowest in more than a decade, official data showed on Monday.

The number of unemployed people fell by 311,000 over the period to reach 2.226 million, Turkish Statistics Institute (TUIK) said on its website on the basis of a survey of 95,699 people.

Unemployed rate stood at 9.2 percent in the same period of 2011. Since then the number of people in jobs increased from 24.901 million to 25.577 million.

Turkey’s economy staged a spectacular recovery from the global crisis, growing by 8.9 percent in 2010 and by 8.5 percent in 2011.Unemployment remains a major challenge for the government in a 73 million strong country where many young people enter the workforce each year.

Turkey’s jobless rate is determined through household surveys across the country, which are then used to make a nationwide three-month projection.

But experts say the figures do not reflect the overall picture because of widespread undeclared or hidden unemployment, or the employment of highly-educated people in menial jobs. Turkish unemployment rocketed to an annual 10.3 percent in 2001 following a major financial crisis, from a steady 6.5 percent in the previous year.

Major Companies Declare Results

By our correspondent

APL announces final cash dividend of Rs32.50

KARACHI: Attock Petroleum Limited (APL) announced on Monday a final cash dividend of Rs32.50 per share though its profit-after-tax for the year ended June 30 slightly down by four percent to Rs4.12 billion from Rs4.25 billion last year, said a statement of the company.

The divided was in addition to interim cash dividend of Rs17.50 per share. Therefore, total divided for the year was calculated at Rs50 per share, according to the profit and loss account of the company.

The earnings per share stood at Rs59.61 from 61.58 last year.

Net sales of the company rose by 39 percent to Rs176.81 billion from Rs127.03 billion last year. However, the financing cost increased by 77 percent to Rs1.21 billion from Rs682.66 million.

POL earns profits of Rs11.85bn

The profit-after-tax of Pakistan Oilfields Limited increased by 10 percent to Rs11.85 billion for the year ended June 30 from Rs10.81 billion earnings last year, said a statement on Monday.

This translated into the earnings per share of Rs50.11 from Rs45.72 last year, according to the profit and loss account of the company.

The company announced a final cash dividend of Rs35 per share. This was in addition to Rs17.50 interim dividend. Therefore, the cumulative dividend for the year stood at Rs52.50 per share.

Net sales of the company increased to Rs30.82 billion from Rs27.10 billion last year. Exploration cost declined by 45 percent to Rs1.07 billion from Rs593.55 million. However, the financing cost increased by 206 percent to Rs684.57 million from Rs223.93 million.

ARL profit rises to Rs2.73bn

Attock Refinery Limited posted a net profit of Rs2.73 billion for the year ended June 30, which was 25 percent higher than Rs2.18 billion last year, said a statement.

The net profit included profit-after-tax from refinery operations of Rs1.14 billion and income from non-refinery operations of Rs1.58 billion during the period under review.

Last year, the company earned Rs1.11 billion from refinery operations and Rs1.06 billion from non-refinery operations, said the profit and loss account of the company. Therefore, total earnings per share stood at Rs32.07 from Rs25.63 last year.

The company also announced a final cash dividend of Rs6 per share. This was in addition to Rs1.50 per share the company has already paid to the shareholders The sales of the company surged by 33 percent to Rs154.38 billion during the period under review from Rs116.38 billion last year. The financing cost increased by 22 times to Rs994.73 million from Rs45.45 million last year.

Fauji Cement earns over half-a-billion profit

Fauji Cement Company Limited reported a profit-after-tax of Rs552.59 million for the year ended June 30, which was 30 percent higher than Rs425.66 million earned in the previous year, said a statement issued by the company.

The earnings per share (EPS) were calculated lower at 29 paisas against 52 paisas last year, according to the profit and loss account of the company available with the Karachi Stock Exchange.

M Affan Ismail, an analyst at BMA Capital, reported that EPS diluted in the year under review due to addition of 1,905 million shares. The increase in earnings was primarily attributable to strong gross margin coupled with improved sales, he said. Phenomenal surge in cement prices coupled with meager decline in coal prices resulted in gross margin growth of nine percentage points to 27 percent.

Moreover, the utilisation of additional capacity of 2.1 million tons resulted in higher sales, which further improved the profits.

The net sales of the company surged by 143 percent to Rs11.52 billion from Rs4.74 billion last year. However, financing cost on loan obtained for capacity expansion kept the earnings under pressure, as the cost augmented to Rs1.83 billion from Rs103.92 million last year.