UCAN

Being prescient after making against-the-grain predictions is a UCAN tradition. Now that the price of oil has reached $105 a barrel, the mainstream media is finally admitting what we've been saying for years: that OPEC's price "increases" aren't really increases at all - what's really happening is that the dollar's value is dropping so quickly that it takes $105 in U.S. dollars to buy what used to cost $75 U.S.  Not only that, these cuts in the value of the dollar actually help the U.S. Treasury pay its debts. Good for Uncle Sam ... bad for you ... especially if you happen to live in America. More.

 Most consumers who purchased homes or condos from sub-prime lenders knew the time would come when interest-only payments would end and that the actual monthly mortgage payment to which they agreed, would be due.  The truth is that 95%+ of the people that took out the loans and now have problems knew the risks. And they took those risks in order to live the American dream. For future reference, the following tips could serve as a checklist: 

1.       Only bank with reputable conservative companies;
2.       If it seems too good to be true, it is;
3.       Always ask about the worst case scenario.  If you cannot afford it now, don’t do it; and
4.       Never assume that things won’t go bad.

Foreclosure trauma depends on where you live because of the differences in state laws and the backlog of the court systems.  Here are two tips for navigating the dangerous waters of potential foreclosure.

Before borrowers take the following steps, it's best to call lenders prior to missing payments to try to get payments frozen, delayed, or suspended for as long as the negotiation process results will allow---enough time to avoid any actions after the fact.  People who waited for the default notice (especially in states where no court actions are necessary), the clock has pretty much struck midnight!  Rick Sharga, VP of marketing for foreclosure listings firm RealtyTrac said "that the very first two calls distressed borrowers should make are to the lender loss-mitigation department and not collections -- and secondly, to a local real-estate agent to assess for how much the house will sell and how long it would take".  More tips can be found at http://www.hud.gov/foreclosure/.

The degree of foreclosure trauma depends on where you live due to differences in state laws and the backlog of the court systems.  Having owned and sold properties in Texas, the state allowed lenders to auction properties just 21 days after the notice of public sale (http://www.foreclosures.com/www/pages/state_laws2.asp?state=tx.   Homeowners in New Jersey or New York could have more than a year to raise money http://www.foreclosures.com/www/pages/state_laws2.asp?state=ny), refinance or sell their place, courtesy of slow court systems. 

The long foreclosure timeline in some states means more red ink for lenders due to court costs and missed loan payments stacking up.  With a bigger risk on the other end, the underwriting standards are usually more difficult.  Getting loans would be much harder for buyers in these markets. Complicating matters are right-of-redemption clauses that allow homeowners in many states to buy the house back for the amount of the note plus interest which can be found together with the following summary of foreclosure rules for each state (http://www.tryforeclosures.com/z-article-state-foreclosure-laws.shtml).

In Minnesota or Alabama (http://www.foreclosures.com/www/pages/state_laws2.asp?state=al), the previous owner has up to a year to buy it back, causing headaches for new buyers or investors if they don't get the previous owner to waive this right.

A long foreclosure process is no guarantee that owners can sell and duck foreclosure. In these cases, the "timing" wouldn't necessarily work to the borrower's advantage.

In hot markets like California or Florida, where real-estate values increased at such a dramatic and rapid rate before cooling off,  recent buyers are stuck with notes worth much more than the house. James Gaines, a Texas economist said, "They can't afford to pay a 6% real-estate commission and come out whole".  Also, if the mortgage has been securitized or sold on the secondary market, finding someone with the authority to agree to a short sale could be difficult".  California timelines and procedures can be found at http://dca.lacounty.gov/TSForeclosure.html.  Another source for the most common California forcelosure laws can be found at http://www.foreclosures.com/www/pages/state_laws2.asp?state=ca.

Real estate advisors say many foreclosures can be avoided if people call their lender and try to work something out before missing a payment. Most lenders don't want to incur the hassles and costs associated with the foreclosure process.  Therefore,  many are  waiting a bit longer than state timelines to give buyers a better shot at keeping their homes. Freezes or delays in the foreclosure process are better options for lenders if borrowers are taking verifiable actions to work out the debt..

If a default notice has been issued, remember the advice provided by Rick Sharga, VP of marketing for foreclosure listings firm RealtyTrac. "The first two calls distressed borrowers should make are to the lender loss-mitigation department- not collections and the second call should be made to a local real-estate agent to assess sale value of the homel and how long it would take". 

After one of our UCAN staff had a rather disappointing experience with purchasing a Netflix gift card or subscription for a loved one, we looked into the details of Netflix's Terms of Use to determine what restrictions are involved with purchasing gift subscriptions. After reviewing the Terms and contacting Netflix to clarify some details, we found a few things we thought buyers should be aware of.

But before we get started, I realize some of you Clint Eastwood fans reading this might be thinking to yourselves, "wait a minute, why is ‘The Ugly' first when the title of Clint's greatest flick is ‘The Good, the Bad, and the Ugly," not ‘The Ugly, the Bad, and the [Decently] Good?'" Well, don't fret mon frère, here is your answer: unfortunately, we found more ugly and bad aspects of the Netflix gift card subscription service than good. See what we've found here or listen to Carter discuss Netflix on the UCAN.ORG podcast .

UCAN.org user AmiLin recently brought a disturbing practice to our attention. After buying 4 boxes of contact lens from Lens.com, AmiLin discovered that she had been sold recalled contacts. She was aware that some of the Optix 02 contact lenses (the brand she normally buys) had been recalled and even contacted Lens.com before purchasing to confirm that none of their Optix 02 lenses had sku's within the recall range (view the recall notice here). Lens.com assured AmiLin that she would not be sold recalled contact lenses, however, that is exactly what they did. As if that weren't enough, Lens.com refused to fully refund AmiLin for the recalled contact lenses. Read some of AmiLin's correspondence with Lens.com here.

If you are in the market for a major home appliance like a refrigerator, dishwasher, washer/dryer, or oven, then you will want to take a look at Krillion.com. Krillion allows users to select an appliance and view price information from local retailers. The system is not perfect, some outlet stores are not listed for example, but it is a great place to start.

Just a year or two ago, consumers were paying premiums of thousands of dollars and ignoring desired options to simply purchase a hybrid car. Today, manufacturers of fuel-efficient hybrid cars are giving big incentives, including low interest financing options and price discounts, to sell the hybrids. Coupled with federal tax incentives, if you've been interested in better insulating yourself from fluctuating gas prices by buying a hybrid, the time might be right. Read this post to find out why.

Yes, ladies and gentlemen, never pay for directory assistance again...well, as long as these companies stay in business, so take advantage of it while you can. 1-800-Free411 and 1-800-411Save both offer entirely free directory assistance services. How? Advertising, of course. But don't worry, the ads are only around 10 seconds long and both services operate fast and efficiently. Sitting through 10 seconds of ads will feel like steal when you consider that directory assistance can cost $1.50-$3.50 through wireless and long distance providers.