How to Stop a Foreclosure with a Short Sale

When you take out a home loan, you agree to make regular payments over 10 years or longer until you pay off both the original loan and the interest the lender charged on that loan. If you experience a medical problem, lose your job or go through other lifestyle changes, you may find that you can no longer pay off your mortgage. This gives the lender the right to foreclose on your home. Before a foreclosure ruins your credit, find out how you can recover with a short sale.

What is a Short Sale?

Many homeowners turn to companies like Realty ONE Group because they aren't sure what a short sale is or if a short sale is right for them. A short sale is essentially an agreement between you and your lender that allows you to sell your home before the lender forecloses on the property. You may have several months or up to one year to find a buyer for your home. Lenders often prefer going through a short sale than foreclosing on a home because it gives the bank more money.

Benefits of a Short Sale

Though a short sale will still appear on your credit report, many find that it impacts them less than a foreclosure does. A foreclosure will remain on your credit report for up to 10 years, which will make it difficult for you to obtain another home loan or any other type of loan. Depending on the agreement you work out with your lender, you may have the chance to walk away free and clear too. Some banks will agree to accept a set amount to pay off your total mortgage. As long as you sell your home for that amount, you won't owe the bank any additional money.

Before Putting Your House on the Market

Before you decide to go the short sale route and put your home on the market, you need to get some help from professionals like Kuba Jewgieniew and others. Those professionals can help you with everything from making arrangements with your bank to finding a qualified buyer and closing on the house. Professionals can also help you determine if you qualify for special programs like the Home Affordable Foreclosure Alternatives Program. These special programs can help you sell your home quickly without damaging your credit report or score.

Impact of New Money Market Rules

Securities & Exchange Commission – Passed New Rules 

When money became a product, the money market became an element for the financial market for possessions for the purpose of lending, in short term borrowing, buying and selling with original maturities for a year or less and trading in money market could be done over the counter.

Securities and Exchange Commission – SEC had passed some new rules which governed money market fund in mid-2014 and these rules were designed to contest the probable problems on liquidity if the economy would envisage a financial meltdown like the 2008-2009. Usually the money market fund is where several investors tend to invest their funds and the shares of the funds have a constant $1 per share value and there was instant liquidity.

 According to the new rules there is some change to these attributes for some money market funds. Some money market funds will be having floating net asset value – NAV when the new rules are applicable and these funds will not be priced at the prevailing $1 per share. This is turn will have an impact on the institutional municipal money market funds as well as institutional prime/general purpose money funds only while retail money market funds will not be affected by this rule.

Two Kinds of Liquidity Fee

The new rule is for two kinds of liquidity fee which could levy rigid fees on redemptions especially those conventionally low return vehicles and if the weekly liquid assets of money market funds tend to fall below 30% of the total fund’s assets, the board of directors connected with the funds could impose a 2% fee on redemption of funds.

Should the money market fund’s weekly liquid resources tend to fall below 10% of the total assets of the fund, then the redemptions could be subject to a 1% redemption fee if the board of directors vote otherwise. This new rule is then applicable to both the institutional as well as retail municipal and prime/general purpose money market funds.

If the money market fund’s liquid assets fall below 30% on the whole assets, the funds’ board of directors are permitted to vote on whether to restrict all fund redemption for 10 days and agreed that money market funds could be used for their low investment risk and liquidity, the burden of redemption could be difficult for several investors.

Vanguard’s Ultra Short Term Bond Fund 

After the announcement of the new rules, some new short term bond mutual funds have come up which include Vanguard’s Ultra Short-Term Bond Fund – VUBFX, but according to Vanguard, the launch was not connected to new money market fund rules. Higher yield than money market funds are offered in short term bond funds though they also have additional market risk depending on their underlying holdings.

The average ultra-short term bond funds, according to Morningstar Inc. – MORN, lost 7.89% in 2008 and financial advisors could be wise in reminding clients intending to seek more yields on the potential risks of presuming that these funds could be a substitute for money market funds. In an effort in preventing a collapse of financial system in case of another economic meltdown, as the financial crisis which occurred in 2008-2009, the SEC have approved several changes in the rules that govern money market funds.

While some will have redemption fees levied on shareholders in some cases and others will see their NAV enabled to fluctuate from the traditional stable $1 per share, these changes will compel investors as well as financial advisors to reconsider how to use the money market funds while at the same time look for other alternatives.

Financial Analysis

These thoughts are centered on financial analysis and the creation of value for a commercial or industrial enterprise. Financial analysis is a method of analyzing the financial health of a company based on accounting documents, schedules, forecasts and intangibles such as a factory visit or experience managers. The objective of financial analysis is to answer two questions that may vary depending on where we place ourselves.

Shareholders: Does the company within the scope of my investment strategy?

Creditors: If I lend money, will I get it?

Attention, everyone can be an investor or creditor! Buy shares makes you a shareholder, subscribe to bonds makes you creditor. However, you have to analyze the company whoever you may be! I strongly emphasize this point, since the financial environment changes over time, the safe products become risky and that deserve analysis. Even in times of euphoria, a financial analysis is essential because even the best company’s of euphoria can fail. From my point of view, what I could see between schools, banks, investors and entrepreneurs, financial analysis is often incomplete. It is not enough to look at whether a company has been profitable for the last 3 years by adding liquidity ratios, management, structure, or even credit for a complete analysis.

 When a company makes a profit, we must always ask ourselves whether these profits can be converted into cash. It is only with cash that a company can repay its debt or pay its shareholders. Analysis of cash flow or cash flow-often forgotten-is an essential step in any financial analysis. A company may have an increase in its constant activity, an important benefit but have a severe shortage of cash. Most of the Americans investors know this and have invented one worship saying: Cash is king. While many start ups rely on equity funds that imply they lack the cash to finance their activity despite growth rates maddening.

ANZ Share Trading

ANZ, company has been in operation for over 175 years with their headquarters in Melbourne, catering to 32 markets all over the globe with representatives in America, Australia, Asia, Europe, Middle East, New Zealand and Pacific. It first started its operation as Bank of Australasia in the year 1835 in Sydney and in 1838 in Melbourne and has been steadily growing in business. They are committed in building a lasting relationship with their customers, communities and shareholders, providing them with a range of banking and financial products and services. Users can start an ANZ Share Trading account using the online application which is easy and free to join. Once registered, the user can access E trade’s superior tool as well as in depth independent research with one of the best online trading services which offers a lot of opportunities to earn Qantas Frequent Flyer points while trading. Useful information and step by step instructions are provided at the site for the benefit of the user to enable them to set up an account and start an online trading activity.


 Online trade services, an interactive internet based solution, enables the user to create, track and report any trade finance transaction. The electronic trade banking system helps individual to manage all online trade solutions from beginning to the end, thereby saving on paper and time besides the need to venture to the office or organization for the same. Moreover it is convenient since this activity can be performed from any location and at anytime by the individual having internet connection.. Besides this, real time updates on trade transactions with email notification is also available to the user. It also incorporates a security system which helps in protecting all trade information and utilizes the RSA tokens for two authentication factor. To protect the integrity of connection to ANZ sites, a firewall mechanism is used. 128 bit Secure Sockets Layer SSL encryption is used, to protect the log in session of the individual, with identity and access management controls to safeguard user’s account information. The user also has access to trade instruments which include trade finance loans, collections, letter of credit and international guarantees.

Stock Trading Tools

Before venture into share trading you have to know the basics of technical analysis. There three basics in technical analysis. The first and for most one is Japanese candlesticks. The graph of the stock price gives us some information. It rises and falls in a zigzag manner. The main advantage of Japanese candle sticks is, it provide us a direct reading about the psychology of the traders. This can decrypt the price movement over a given unit of time and can infer, in which side the market is in favor of? i.e. in favor of buyer or the seller. To construct a candle stick we have to connect the opening price at the closing of a trading secession usually daily. What we call this as true body if the market is bullish the graph is white and if the trend is bearish the candle will be black. From the color variation we can distinguish whether the market is increasing or decreasing. The extremes of the market session are represented by the thin lines called shadows. Form the different forms of the candlestick we can judge the market trend.

 What is interesting is the combination of Japanese candlesticks. For example, assume three Japanese candlesticks in succession, therefore the ‘real body’ is becoming smaller and the shadow is longer and longer. This implies the buyers are losing hand to the sellers and the reversal is going to happen naturally.

 Apart from this, for a better trading we need to know the market namely, the areas on which course many buyers appear and where the sellers offload. The support level is the price level which is horizontal where by the market is sufficiently attractive to the current buyer develops.

Resistance is opposite of the support level of prices where the selling price mounts which leads to the decline in the price. The support and a parallel resistor forms a channel, that is why we say buy at support and sell at resistance. A support and a parallel resistor form a channel. It is for this reason that they say you have to buy support and sell resistance.

 Other one we should know in the stock market reading is Moving averages. A simple moving average is an arithmetic average of the last x periods. For example a fifty days moving average is equal to the arithmetic average of the last fifties taken daily. It is called moving because in each period the new one replaces the course of the old one and this process continues. When the price breaks to increase the level of the moving average we can say the short term trend is reversing towards the trend is increasing in the medium term. This trend is favorable to the buyer. Conversely, when the price breaks down the level of the moving average, we say the short term trend is reversing towards the trend towards lower medium term which is favorable to the seller.

What strategy to be followed in Stock trading?

           Generally most of the large traders and share market investors had gained some shots of huge money. It is not a mere coincidence that those rich people are skilled somewhat, the fact is those rich people used the leverage provided by the financial markets. The great people such as Warren Buffet have been followed successful investment strategies which allowed them a great success in the market. Many books have been published about them and their trading secrets and technique and countless of peoples analyzed the secrets of their technique in stock trading.

      Apart from them hundreds of thousands of people around the world claim to have the best trading strategy to generate steady gains, if it is so then what is the correct key to wealth? And what is the best investment strategy to follow? Most of the successful personalities give the following tips: Diversity is remarkable investment strategy to follow. This illustrates the fact that it is not a holy grail. Hence we can conclude not a single investment strategy is better than the others, hence we have to shape our personal investment strategy accordingly to move towards the success.
    
Your own strategy will not be best suited to your fellow trader, hence everyone have to be very comfortable with the technical analysis of the market to tailor his own strategy. The technical analysis helps you to find out the clear picture of the company, their organization, their financial activities and others, their strategies etc. The technical analysis further helps you to predict the future trend in stock price. This kind of approach leads you towards success and success alone. A good investor should have a long term vision but he must be aware of both short term and long term views since both of them have their own merits and de merits. Once you are accustomed with your own technique for successful trading then stick on it and make necessary adjustments now and then if needed and over the time you refine your strategy of trading and knowledge then Success will be at your door steps.
                                                Happy trading!!!