Financial Information

Foreclosure is a form of legal proceeding initiated by the bank or other lending agency against the borrower. The lender initiates legal action against the borrower who has not paid back the money borrowed to buy a home or car or any other asset. Under this process the borrowed asset is taken under possession by the bank. In simpler terms your home for which you took a loan and is unable to repay may be confiscated by the bank and you may be evicted by the court.

As a matter of fact, when the terms and conditions of mortgage are violated, it is construed as a default in payment agreed to by execution of a promissory note. The security to the promissory note is provided by the lien created on the property. The process is said to have met its logical end, when it is announced that the “Lender has foreclosed its mortgage or lien”. Behind foreclosure lies very poor credit and financial difficulty. But nowadays with refinancing you can escape foreclosure unless you are in dire situations and your credit worthiness is at an all time low. Check out websites and legal rights on this issue, so that no body can fool you.

Housing, Mortgages foreclosure, Housing, Mortgages, Recession

As an investment banker I thought I knew everything about stocks and shares till last year. My ego was crushed by the crash of Dow Jones. I got paralyzed and didn’t know what to do. All my money was invested “wisely” in stocks that were “doing well” a couple of years ago. When the downslide started I was losing more than $1000 a day. My mind told me to sell everything and get out of this rut. But my heart thought otherwise. I thought ‘if only it could pick up a bit, then I’ll sell.’ This way I ended up with a big loss. My 401k is also down, where in I had invested for my twilight years. Even if the market picks up, I’ll still be at a loss. With a recession going on, it is indeed difficult for any company to do well. More and more companies are folding up and hundreds of people are losing jobs. If you have the staying power then keep your stocks and don’t sell them now. The new government is sure to get us out of this mess. After all there is light beyond the dark tunnel, isn’t it? I am sure about it. How about you?

Recession 401k, banking, investments, Recession, Stocks