Identity Theft: low-cost solutions with Homeowners/Renters policy

According to the Federal Trade Commission, over 10 million Americans have their identities stolen each year. In fact, you or someone you know may have experienced the crime of identity theft. Homeowners and renters now have a low-cost option available to protect against this growing problem. Several insurance providers are now offering "Identity Theft" coverage as an endorsement to their primary homeowners' policies. These endorsements range from $25 to $50 and provide a wide array of services to help the insured recover from their loss. Typical endorsements provide approximately $25,000 for “expenses” and grant the insured access to “resolution services.”

Expenses Include:

Cost of Notarizing: Financial institutions, credit grantors, and credit agencies typically require notarized documentation to resolve any identity fraud claims.

Cost of Certified Mail & Phone Calls: Steps to resolved identity theft may result in costly correspondence with law enforcement agencies, credit grantors, and credit agencies.

Lost Wages: As a result of taking time off work, the insured may be eligible for lost wages while meeting with law enforcement and financial institutions. This coverage usually carries a maximum limit of $1,000 per week. Lost wages are also provided for wrongful incarceration arising solely from someone having committed a crime in the insured’s name.

Loan Application Fees: Re-applying for a loan or loans when the original application is rejected because the lender received incorrect credit information.

Attorney Fees: Defense of lawsuits, the removal of criminal and civil judgments, and challenging the accuracy of a consumer credit report are just a few examples of covered attorney expenses.

Cost for Daycare and Eldercare: Identity Theft can interrupt our daily routines and may increase the need for family care. Most, but not all, “identity theft” endorsements include this coverage.

Resolution Services:

Ordering your Credit Report: A consumer fraud specialist will facilitate the ordering of an insured’s credit report and provide records from all three credit reporting agencies.

By Federal law, you are entitled to one free credit report per year from each of the credit bureaus – Equifax, Experian, & TransUnion.

Alerting Credit Reporting Bureaus: In the event of a reported loss, a consumer fraud specialist will notify all three credit reporting bureaus – Equifax, Experian, & TransUnion.

Credit Monitoring: Insurance companies have teamed up with many reputable credit monitoring services to provide ongoing reporting of an insured’s credit activity. Coverage may be limited to six months per claim.

According to the Federal Trade Commission, two-thirds of victims who discovered the misuse of their personal information within five months incurred limited out-of-packet expenses.

Preparing Documentation & Letters: A consumer fraud specialist will help draft and prepare correspondence with all financial institutions, law enforcement, and credit grantors.

There are many credit monitoring programs and companies in the marketplace, but if you are looking for a cost effective solution, look to your homeowner’s, condo, or renter’s insurance policy to provide the protection and peace of mind. All major insurance companies have launched “Identity Theft” coverage. Consult with your local insurance agent or broker and ask about this popular endorsement.

Looking for good Title Rep in Orange County....

Just joined a new leads group called the Newport Power Partners looking for an aggressive, like minded Title Rep to join our ranks. We already have 12 highly motivated individuals ranging from:

 CPA, Financial Advisor, Real Estate, Mortgage, Insurance P&C, Insurance L/H/D, Chiropractor, Professional Staffing, Attorneys...

 Let me know if you have a good contact that fits the bill!!

 Thanks

Tex

What are you doing when business is slow?

I have a little debate going on about the best use of your time during a down market...

Are you a person that goes back the basics?  Open Houses, Networking Groups...etc?

Or, do you spend your time & resources looking for the next best thing?  Website improvements, online advertising & lead gen. ?

What are you doing when business is slow?   Besides oversleeping...haha

 

Goverment Admin Calls for Mortage Lending Overhaul

Treasury Secretary Henry Paulson called Tuesday for an aggressive response to deal with an unfolding housing crisis that he said presents a significant risk to the economy.

In the administration's most detailed reaction to the steepest housing slump in 16 years, Paulson said that government and the financial industry should provide immediate help for homeowners trying to refinance current mortgages before they reset at much higher rates.

He also called for an overhaul of laws and regulations governing mortgage lending to halt abusive practices that contributed to the current crisis.

"Let me be clear, despite strong economic fundamentals, the housing decline is still unfolding and I view it as the most significant current risk to our economy," Paulson said in a speech delivered at Georgetown University's law school. "The longer housing prices remain stagnant or fall, the greater the penalty to our future economic growth."

In his most somber assessment of the crisis to date, Paulson said that the housing correction is "not ending as quickly" as it had appeared it would and that "it now looks like it will continue to adversely impact our economy, our capital markets and many homeowners for some time yet."

Paulson spoke a day after officials from the nation's three biggest banks announced the creation of a fund with up to $100 billion in resources to buy troubled assets such as mortgage-backed securities.

Treasury Department officials participated in the behind-the-scenes discussions that led to creation of the fund, but no government resources have been pledged to the effort.

Paulson said that the government must balance the need to help homeowners stay in their homes against the threat that government action can encourage investors to make risky decisions in the future.

"We must help as many able homeowners as possible stay in their homes," Paulson said. "Foreclosures are costly and painful for homeowners."

But Paulson also stated, "When investors are relieved of the cost of bad decisions, they are more likely to repeat their mistakes. I have no interest in bailing out lenders or property speculators."

AP PRESS

Good Foreclosure Article from MSNBC

Data released Thursday by RealtyTrac, which publishes a database that tracks foreclosures, show that 223,538 foreclosures and related filings were reported in September. That represents about one in every 557 households.

That was down 8 percent from August - when the rate hit a 32-month high -but roughly double the number of foreclosures reported in September 2006. So it's still far too soon to assume that the September dip indicates that foreclosures are peaking.

For one thing, another wave of interest rate "resets" is expected to hit over the next year, squeezing millions more borrowers' budgets and putting their loans - and their homes - at risk.

"I wouldn't bet the farm on this being the peak," said Rick Sharga, vice president of marketing for RealtyTrac.

Like everything else in real estate, the level of foreclosure activity varies greatly depending on your location, and the highest rates of foreclosure continue to be concentrated in a relatively few states. Nevada had the highest foreclosure rate for the ninth month in a row - one filing for every 185 households. That was down 11 percent from August, but nearly triple the rate from a year earlier.

Other states posting high foreclosure rates were Florida, with one filing for every 248 households, and California, where more than 51,000 filings were reported in September, the most in any state. Other states with foreclosure rates ranking among the nation's 10 highest were Michigan, Arizona, Georgia, Ohio, Colorado, Texas and Indiana.

The pace of foreclosures has been fueled by a wave of adjustable rate mortgage resets that can bring a sharp jump in monthly payments after the initial low "teaser" rate expires after two or three years, depending on the loan.  The volume of those resets is expected to decline over the next few months, according to data assembled by Credit Suisse.

But a newer vintage of loans that are scheduled to start resetting later next year threatens to bring another round of monthly payment increases that could overwhelm more household budgets, creating a new wave of foreclosures, which could further delay the housing recovery.

On Wednesday, a real estate trade group said home sales will fall more sharply this year than previously forecast. In its eighth downwardly revised forecast, the National Association of Realtors said sales of existing homes this year will be down nearly 11 percent from last year. Sales of new homes are expected to post their worst year in a decade.

Prices for existing homes are expected to fall 1.3 percent by year-end to a median of $210,200 as the housing market weathers its steepest downturn in 16 years.

Those national statistics mask a range of local conditions. In some markets, the pace of sales and prices has held up relatively well. Areas that saw the biggest price run-ups during the housing boom are getting hit the hardest.

A California Realtors group predicted Wednesday that home sales and prices will fall further next year as the inventory of unsold and foreclosed homes rises while buyers hold out for better prices. Statewide, sales are expected to fall 9 percent to 334,500 units; the median price is seen falling 4 percent to $553,000.

Private forecasters say the drop in prices could be even steeper. Stephen Levy, senior economist at the Center for Continuing Study of the California Economy, expects prices to drop 10 to 15 percent overall, with sharper declines possible in some markets.

The association forecast "conveys the wrong image to people about what's going to happen in prices in their neighborhood from now on," Levy said. "It's going to be more severe. I think that's good. I think it's better for us if we get through the correction faster."

Meanwhile, as the number of unsold homes piles up in some markets, some potential buyers are having a harder time getting loans, and lending standards have tightened for those who can. That's reduced the number of potential buyers for unsold homes.

With Democrats on the campaign trail proposing various measures to help homeowners facing foreclosure, the White House has also been trying to get out in front of the issue.

"My guess is that this foreclosure issue is going to be a major political football during the election," said Sharga. "That could either lead to both parties not doing anything so they can blame the other or both fighting each other to come up with novel solutions to help homeowners who are losing properties."

The latest proposal came Wednesday from the White House, when Treasury Secretary Henry Paulson said an industry coalition was working to help homeowners head off foreclosures and keep their homes. Paulson said 11 of the largest mortgage service companies, which together handle 60 percent of the nation's mortgages, had agreed to join the new coalition. Other members will include mortgage counseling agencies, investors and large trade organizations.

Democrats have said the White House actions so far have been too little and too late to significantly address the problem.

The solution to the problem will likely take more than new spending or tax dollars. Most lenders would prefer not to foreclose because the process almost always costs them money; foreclosed homes are usually priced for quick sale, which means they may not cover the unpaid loan outstanding.

But homeowners often fail to approach lenders until they are too far behind to work out a restructured payment plan. Many have trouble even identifying who their lender is. Most mortgages are sold off to investors and then serviced by separate companies. Some regulations designed to protect consumers from overly aggressive collection agents may bar lenders from contacting homeowners whose loans are in trouble.

Unscrambling the foreclosure mess has been further complicated by the huge volume of bundled loans that were chopped up by Wall Street and sold off to investors.

"There are just so many elements to this process that are screwed up or broken that it's mind-boggling," said Sharga. "It's a maze of restrictions and regulations and complications that you almost need a third party to come in and slice through because that's the only way you're going to be able to make it work."

California Tips on Earthquake Insurance -

Passing on Umbrella/Excess Liability Coverage? Recent Verdicts

Recent Settlement/Judgment Summary

Automobile Liability

Verdict: $3,213,235
Maine:  Motor vehicle negligence – Plaintiff’s automobile rear ended by defendant’s automobile. Plaintiff driver sustained serious injuries and two minor children suffered fatal injuries.

Verdict: $5,640,000
California: Defendant’s vehicle struck and injured 81 year old female domestic worker earning $10,000 annually.  Injuries included sub-doral hemotoma, fractured pelvis and femur.  Plaintiff has been unable to return to work.

Verdict: $9.540,000
Connecticut:  Plaintiff, 14 year old boy playing tag, ran into street and was struck by car.  Closed head injury resulting in seizures, right side paralysis and cognitive impairments.

Verdict: $75,000,000
Florida:  Plaintiff being pursued by police ran red light and struck defendant on driver’s side, fatally injuring driver.  Injured party was 29 year old female college student survived by minor daughter.

Verdict: $13,904,553
Illinois:  Two teenage defendants were racing their vehicles at excessive speeds.  Defendant driver lost control of vehicle and struck utility pole.  17 year old plaintiff passenger was rendered quadriplegic and 18 year old plaintiff passenger was killed.

Verdict:  $4,320,000
New York:  Motorcycle entering intersection was struck by defendant’s left-turning vehicle causing fatal head injuries to motorcycle passenger.  Plaintiff was an oil company executive earning $111,000 annually, married with two minor children.

General Liability/Personal Injury

Verdict: $8,000,000
Virginia: A seven year old girl drowned in defendant’s swimming pool.

Verdict: $3,430,000
New York:  38 year old male suffered an amputation of left leg above the knee after being struck on a dock by a watercraft.

Verdict: $143,470,408
Texas: During domestic dispute, 32 year old defendant injured 32 year old plaintiff causing paralysis for life.