Financial News – Blog articles

Legal Liability of Careless Guarantor

Written on August 24, 2010 – 6:57 pm | by William Machen

By Brian Madigan LL.B.

A recent court case dealt with the issue of mortgage fraud. In the case of Royal Bank v. Isaacs (2010)the bank sought summary judgment of its mortgage.

However, the case was not simple and straightforward. Mrs. Isaacs had been persuaded for a fee of $6,000 to act as guarantor on a mortgage. It was only to be for a term of 6 months. There was a fellow who arranged the deal, a mortgage broker and a lawyer involved. In the end, Mrs. Isaacs got her $6,000 and was content with the transaction.

Only one little problem, the arranger, the new homeowner and the mortgage broker, all flew the coop with the mortgage money.

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NY encourages banks to provide more modifications to consumers

Written on August 24, 2010 – 12:33 pm | by Barbara Sermons

As much of the country is facing the real estate crisis and Americans are in danger of losing their homes to foreclosure, lawmakers in New York are pushing banks to grant more mortgage loan modifications to struggling consumers. In an effort to steer banks toward providing more aid to delinquent borrowers, New York Senator Jeff Klein and Brooklyn City Council member Brad Lander plan to unveil measures that will make foreclosures more unappealing to banks and lending institutions, according to the Wall Street Journal.

The Journal reports that measures may include a mandate requiring banks to post bonds for vacant properties as well as a daily fee of $100 for institutions that fail to maintain foreclosed homes. Read more…

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Miami’s TotalBank forecloses on Delray Beach development

Written on August 23, 2010 – 12:14 am | by admin

TotalBank has sued a Delray Beach real estate development company and its principals and has foreclosed on a Fisher Island condominium used as collateral, as the bank seeks repayment of a $26 million loan.

The suit, filed in Palm Beach Circuit Court, is against 5th Avenue at Delray, developer brothers Jesus A. Carvallo and Victor Carvallo, and their wives, who guaranteed the loan, as well as against Fisher Island entities. Victor Carvallo and his wife live in the condo, said attorney Harold Lewis, a partner in Miami-based Pathman Lewis, who represents TotalBank.

“We’ve got a project that is relatively close to completion and the borrower is refusing to complete the project, despite repeated requests from the bank,” Lewis said.

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Get desi education! Avail an NRI educational loan

Written on August 22, 2010 – 11:58 am | by admin

Repayment of the loan will begin 12 months after the completion of the course or 6 months after getting job whichever is earlier and it is to be paid in monthly installments which is typically for 60 months. If you are an NRI and want to send your child back to India for studies and you are in need of funds, NRI educational loan could solve your hassle.

Mr. Sharma has been living in the Dubai for several years. His daughter, Neetu has finished the Indian equivalent of the 12^th standard there. It’s Mr.Sharma’s wish that his daughter should pursue her higher education in India. Nee

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US Job Figures Causing Domino Affect

Written on August 21, 2010 – 4:01 pm | by William Machen

America is the world’s largest economy. The saying goes that “if America sneezes, the world catches a cold”. Certainly, economic events in the USA do have repercussions around the globe. The release of the latest set of job figures from America, serves to demonstrate this.

The weekly jobs data for 19 August 2010, released yesterday, showed a jump of 12000 initial jobless claimants (i.e. people losing their jobs and claiming unemployment benefits for the first time) to 500 000; this was worse than analysts expected.

The picture is not as bleak as these figures suggest because a lot of Americans found work last week since the economy is a dynamic thing. Never

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