Shop around. This is most important when trying to find the best auto insurance quotes. Don’t settle for the very first company you come across. Many companies will provide different rates based on the individual’s specific needs. One shouldn’t feel obligated to resolve the first company, just because it sounds suitable. Retain in mind the saying might be true that the “best” might come “last”.

Check discounts. Many companies provide several discounts based on the driver behind the wheel. Some discounts are based on age, sex, driving history, etc. Some even offer discounts for having automatic monthly payments withdrawn from checking accounts.

Keep insurance policies updated. This is extremely considerable in factoring in the various quotes companies have to offer. The policy might need to be updated due to a change in jobs, location, and other aspects. If your job is closer to where you live, it might help the coverage rates decrease due to decreasing miles driven on the vehicle.

Be aware of changes to the insurance rates with “hidden” guidelines. Some companies try to lure car owners into purchasing car insurance at “Introductory pricing”, by promising to include all of these great deductions. However, some fail to mention the rates could increase later after the insured individual has been with the company for a while.

Be weary of the vehicle driven. People can save instantly on auto insurance by having a excellent, affordable, and helpful vehicle. Insurance companies look at the safety features of the vehicle, the make/model of the vehicle, and the pricing of the vehicle to resolve the Insurance quotes. Before you decide to select a vehicle, call the Insurance companies to obtain different quotes of the particular car.

Know the ins and outs of each Insurance company. Originate sure to research what all is included with your policy. Check for any deductible pricing to see what the deductible may be if interested in an accident. Check to see if there are any hidden rules in the Insurance contract. Also, it is famous that each insured individual has a Proof of Insurance card, in case needed for routine traffic stops or other serious matters.

Take advantage of online websites who offer various quotes for many different auto insurance companies on one website. If interested car owners prefer, they may visit http://www.insurance.com to receive various quotes from auto insurance companies.

Get on a personal level with an agent. Sometimes it may be better to work with an Agent who lives close to your particular area. Through random searches online, individuals can find several agents in the area who may help to come by the person on the right path to securing an Auto Insurance company. For some people, it is better to talk in person rather than over the phone.

Don’t be afraid to file a complaint. If you feel that you have been taken advantage of or harassed, don’t be afraid to file a complaint. You have the option to file a complaint through your local State Insurance Commissioner’s website if you feel you were treated unfairly.

Look towards the future! This final tip is important, as it is worth mentioning to keep all eyes and ears open for important hints. For your continued loyalty to the company, auto insurers will offer special incentives including special discounts based on your longevity with the company.

Interestingly enough, the Bureau of Labor Statistics has done research on women and men in the labor force and the numbers seem to be somewhat unsettling. In terms of managerial and professional specialty, it is stated that men, on average, in the year 2000, had 15,739,000 workers while women had 15,866,000 workers in the same fields. In the year 2001, the numbers were very similar, men with 15,947,000 workers compared to women with 16,155,000 workers. Nevertheless, even though the numbers for women workers are somewhat larger, the wages they earn are significantly lower. For the year 2000, median weekly earnings for men were recorded at $1009 compared to $726 for women. Similarly in the year 2001, median weekly earnings for men were $1046 compared to $742 for women. That is a $15,000 annual income difference for people who are supposedly completing the same jobs and receiving a drastically different amount on their paycheck 

However, the numbers can be somewhat explained under the exhibit conditions. Characteristically, individuals in upper level Executive positions pick up more than those in lower positions, and since women only hold a small fraction of the upper level positions, it is no surprise that women gain less money. Thus, the inquire of becomes as to why women do not acquire more of the upper level positions in the IT profession. For example, out of the Chief Information Officer’s or CIO-equivalents at 300 Fortune 1000 companies and the 100 fastest-growing companies recently surveyed by Amsterdam, N.Y.- based Sheila Greco Associates, there were only 41 women (13.7 percent), compared with 259 men (86.3 percent). Sheila Greco Associates say that the percentage of women CIO’s has not changed since their research consultancy began its annual survey in 1998(Paul). 

According to the 1996 Information Week 500 list of leading IT users, women held the highest-ranking IT positions at only about 7% of the 500 companies listed. Five years later, the number only rose by 1.8 percent to 8.8% of the positions held by women or 44 out of 500 Executives. Among them were Farmers insurance Group, Cecilia Claudio, and New York Life Insurance Co., Judith Campbell. Not surprisingly, the Society for Information Management, an organization of senior IT executives, counts only 195 women among its 2700 members. According to ongoing research by Robert Zawacki, professor emeritus of management and international business at the University of Colorado and distinguished scholar in residence at accounting firm KPMG Peat Marwick in New York, just 20% of senior IT executives are women, while nearly 40% of all IT employees are female. These findings were based on a study conducted every year for 20 years in IT departments at 200 companies in different industries (Wilde). 

Amid all of these statistics, it looks like companies are getting the idea, slowly but gradually allowing women to be active in its upper level positions. Xerox, for example, received several awards for its diversity programs. Now, the company has about one-third of its IT department composed of women workers. Xerox CIO Wallington says that 10 years ago a woman in the computer industry had to be “a harder worker, a smarter person, a more qualified” than her male peers to move beyond the ranks of programming into management. Now that she has arrived, Wallington says, being a woman often makes it easier for her to be heard than her male counterparts. Mild, Wallington notes that outside the walls of Xerox, IT is like the rest of corporate America- dominated by white males. She adds, “But hope can be taken from the fact that you can point to those exceptions, exceptions that weren’t there 10 years ago, so clearly there has been progress (Paul).” It seems that having a woman already in a higher position at a company makes it easier for other women to follow suite.

It seems that in IT at least, women are beginning to become a winning force in the Glass Ceiling war. Ann Winblad, founder of Hummer Winblad Venture Partners, a $95 million venture-capital fund in Emeryville, Calif., says the software industry is a meritocracy. “Skills matter more than gender,” she says, “It’s an industry where the intellectual capital wins.” For men and women, Winblad says, keys to success are shimmering stamina and common sense. Winblad, who started her career as a systems analyst in 1973, encourages women to be themselves, and to not adjust their personalities to fit a man’s world. “Having a personality that is the same whether it’s with friends or business colleagues is the key to success- and so far less stress, ” she adds (Paul). Thus, individualism is supposed to give women the upper hand when going out for jobs in the upper ranks of the IT field. 

IT, it seems, when it comes to sexism, is not much different from other careers. Computer consultant and author Ellen Ullman is quoted as saying “Sexism is everywhere, but technology is one place where for the first two-thirds of your career- if you’re good at it- you’ll be on equal footing with people around you. Other consultants agree with Ullman that “IT is one of the best equal-opportunity areas in our society today,” says Victor Janulaitis, president of Positive Support Review, an IT management and consulting firm in Santa Monica, Calif. “It doesn’t care what race, color, creed, or sexual preference you are. If you as an individual can produce results, you’ll be rewarded, and you’ll proceed and progress (Wilde).” While this sounds very reassuring, it might unexcited be a little far advanced into the future for current times.

As far as minorities are concerned, a study was done in order to attribute the Glass Ceiling as a factor in the advancements or lack thereof of black IT workers. The Glass Ceiling Commission has suggested that there might be a glass ceiling that prevents them from reaching the top levels of IS and non-IS management positions. The commission’s figures show that managers were 92% white and 8% minority in 1988, identical to percentages found in 1980 and 1985. A sample of 138 employees were used, 50% black and the other half white, and 52% of the sample were women. Eighty-two of the IS participants held managerial positions, and the remaining 41% percent held professional positions without supervisory responsibilities. The sample used was also of similar age. The measurements were done through a job performance rating and job performance attributions with a rating scale included on the Supervisor Survey. The study confirmed the presence of race differences in job performance evaluations, attributions, career advancement prospects, and career satisfaction. Black IS employees received lower job performance ratings, were less likely to have their job performance attributed to internal causes, were less successful in their jobs, were perceived as having less favorable advancement prospects, were more likely to be plateuad in their careers, and experienced lower career satisfaction than white IS employees (Igbaria, Wormley). 

Alright, so there are fewer women Executives in IT then men, and minorities face a glass ceiling when trying to excel. The question is, why is this the case? Quite frankly, as some put it, women fetch the demands of IT a little bit too demanding. Karen Hogan, acting deputy CIO of the Department of Commerce in Washington, D.C. says that she wouldn’t want to take the CIO job at her agency because the time demands the position would impose on her life would be too distinguished to bear. Women, due to the fact they need to care for children, find themselves more at odds with the near-constant move and intense 24/7 demands of being a CIO (Paul). However, several surveys have found that the problem of balancing work and life are a major concern of male CIO’s as well. According to a recent online survey by CIO of 310 IT professionals, almost as many men as women (57% versus 63%, respectively) felt they did not have an appropriate work and life balance in their current job. “Both men and women realize this is an issue,” says Judy Rosener, professor at the Graduate School of Management of the University of California at Irvine. Rosener believes the eventual dismantling of the glass ceiling in IT will take pressure off both sexes. Rosener says, “A lot of men are saying they no longer want the burden of feeling they have to get to the top.” However, still more men than women are willing to sacrifice their personal lives in exchange for a successful professional life, while women may not be ready to leave their instilled domestic responsibilities.

Even though all of this sounds very promising, the numbers themselves show that this equality tranquil has a long way to go in order to reach reality. Another reason why IT might not favor women is because of the sheer fact that women, throughout history, have not been the major proponents of math and technology. According to Charles W. Moore, the dissatisfaction of females in the IT profession can be explained through a simple observation of the intention that women and men act on a daily basis. Men, when they get together, tend to talk about cars and the intricate parts of their hardware in their different machinery systems. Even though women might be better IT workers they will never get ahead due to the fact that they do not have the drive in IT that men have, thus giving them less satisfaction from working in the industry (Moore). While this is a very hazardous argument and exceptions do occur, it does tend to fabricate sense. When most women use a computer, they are more interested in the software and what the computer can do for them than the machine part of the system and the means it takes in order to achieve the ends. Thus, in the job aspect of IT, that drive from the enthusiasm gained from the machine aspect in Information Technology, can be the factor that get men most of the executive level positions. Just as when women pick out a car, most women tend to care more about the color and accessories of the automobile than the gas per mileage of the auto. Thus, grouped with the fact that women through history have had more domestic demands save on them, this lack of enthusiasm might be a factor that keeps women out of the front lines of the field.

Information Technology might be one of those modern careers of skill that acts very similarly to the oldest game of skill: the game of Chess. Being the oldest game, Chess if much more than just a game of skill. Few people realize this but the queen is the only part on the board that represents a woman, and she is the most powerful piece of the game. In medieval times, the surrender of the king would mean the loss of the kingdom to invading armies and that could mean change for the worse. The king is the most important, but not the most worthy share in Chess. Thus, if the king is not protected, the game is lost. Perhaps, not much is different in world of Information Technology. Even though women might have the same or more skill in IT, they are also bound by the demands of domestic responsibility, and their female drive may not include the same interests in technology and machinery as the drive expressed within the male characteristic, giving males full control of the game. Furthermore, putting a woman in a high level position might be seen as a risk to many companies, not knowing how the public will respond to a woman run game. Thus, when it comes to wages, executives and workers in upper positions tend to make more money. When it comes to those upper positions, women may not possess the characteristics or the time needed to fill those positions, and that is why it might seem that women are more prone to tumble prey to lower pay and lower jobs while in reality it might unbiased be a consequence of the historical trends still evident in modern life today. Contrastingly from the recommendations of the Glass Ceiling Commission, affirmative action should not be applied; rather women and minorities should be promoted due to their efforts, drive, and skill, and not because of their gender or ethnicity. Therefore, until the queen and other minor pieces makes it evident that they rule the chess game, there will be, for some time to come, a struggle of women and minorities trying to attain higher level positions, and white men will continue to rule the field.

Bibliography

Moore, Charles W. “Female Dissatisfaction in the IT Industry.” (2001) 8 Feb. 2002
http://www.lowendmac.com/misc/01/0611.html.

Paul, Lauren Gibbons. “Why IT Hates Women (and the Women Who Stay Anyway).”
CIO Magazine 15 Sept. 2001: 1-10.

Wilde, Candee. “Women Cut Through It’s Glass Ceiling.” InformationWeek 20 Jan.
1997: 83.

Wormley, M. Wayne and Igbaria, Magid. “Race Differences in Job Performance and
Career Success.” Communications of the ACM March 1995: 82.

High-risk auto insurance has become much more wide spread over the last few years as more and more people are added to the list of high-risk prospects. Mainstream insurance companies label students, teenagers, drivers over the age of 70, individuals with a bad credit rating and individuals with a history of insurance claims as high-risk alongside the traditional high-risk policyholders such as people with a history of DUIs and multiple moving violations.

Insurance companies even assign this high-risk label based on the car in demand that means that the driver of a sports car should be prepared to pay a higher premium or even have to secure high-risk auto insurance. The insurance company practice of lumping individuals with sports cars and individuals whose license has been revoked into the same category has created a high-risk auto insurance industry on the fringe of the mainstream insurance market.

For this reason, modern companies that specialize in high-risk auto insurance (they call it non-standard insurance) have appeared and by shopping around among these new companies, it’s possible for anyone to find insurance at a reasonable rate. Of course, the very mainstream companies that created the need for this insurance with their demographic labels also offer high-risk insurance but it will generally be more expensive than the companies that specialize in this sort of policy.

This is a policy that is best found on the Internet since the best and cheapest high-risk coverage is available from smaller corporations that do not maintain physical offices in every locale they service. If access to a physical office and insurance agent are factors in finding a high-risk policy, it is possible to find a high-risk policy with larger insurance companies such as Allstate but be prepared to pay more for the name recognition of the larger insurance company.

But competition between the small and the mountainous insurance companies is functioning to keep prices down for high-risk auto insurance. Anyone who fits into the above mentioned categories should still be prepared to pay more for their insurance but they do have plenty of options.

By shopping around and considering the smaller corporations that specialize in this sort of policy it’s possible to find a low rate for high-risk auto insurance.

Sources:

“Finding High Risk Auto Insurance and Non Standard Auto Insurance,” thegeneral.com.

“Where Can I Come By Auto Insurance For High Risk Drivers,” onlineautoinsurance.com.

“High Risk Auto Insurance – Information and Quotes,” usinsuranceonline.com.

Rahm Emanuel told audiences Sunday, November 9, watching both ABC’s “This Week with George Stephanopoulos” and CBS’ “Face The Nation” that President-Elect Barack Obama’s first priority after the inauguration would be to get to work on the economic crisis. Getting a stimulus package through Congress, extending unemployment benefits, and helping states pay for health care costs were at the top of the list, assured Obama’s new Chief of Staff. He added that the new President was intent on expanding health care coverage, making education more affordable, and revamping the nation’s energy policy – all geared toward reviving the middle class.

And those reassuring words were what a troubled nation needed to hear. Although polls exhibit that President-Elect Obama’s first press conference was seen by most people as a success, the news of the day that preceded the press conference did little to serve inspire and uplift.

Ford was first to report unpleasant news out of Detroit. General Motors then reported substantial third quarter losses. Thousands of layoffs were announced. Both companies’ stocks took substantial hits. By Monday, General Motors stock was trading at its lowest in its history. By Tuesday, it had set a new low. An emergency bailout of the auto industry – dubbed the “Big 3 Bailout” — was called for and is supported by incoming President Obama.

All of the Big 3 automakers — Ford, General Motors, and Chrysler — have reported 20% losses for the year. It is believed the final year-end reports will be worse.

The argument in favor of the “Gigantic 3 Bailout” is much the same argument used in bailing out AIG – the ripple effect from the collapse of the automobile industry would be far too great an economic disaster to allow to let happen. General Motors alone employees over 750,000 people. Added to the catastrophe would be insurance policies, pension funds, subsidiary companies and their employees, affiliated companies and their employees.

But that wasn’t all. The Department of Labor reported 240,000 jobs lost in October, driving the total number of jobs lost for the year to 1.2 million.

Just the week before, the U. S. saw its 17^th bank failure for the year. Freedom Bank of Florida was taken over by the Federal Direct Insurance Corporation (FDIC).

On Monday, AIG, the financial giant that the government has already loaned $200 million, asked for more. The federal government gave them an additional $27 million, bringing their total bailout/ buyout to $150 billion. The embattled lending giant came under fire for corporate excess on Tuesday for footing the bill for a $150,000 sales conference at a posh Arizona resort last week.

And if all those economic calamities weren’t enough, news from Europe and Asia were not promising either. It was announced that the failure of Iceland’s bank would cost England $1.3 billion.

On Sunday, China announced that it was going to appropriate $526 billion for a bailout to help their dying economy. China is the world’s fourth largest economy. That economy is driven predominantly by exports. Since the world market is depressed, seek information from for Chinese goods have decreased, placing China in economic straits alongside the rest of the world.

And economists like Nobel Prize-winning economist and author Joseph Stiglitz have warned that it does not peep as if the economy will start an upturn anytime soon. In fact, it could be years before the economy registers an upswing.

A Rasmussen Poll released on November 12 shows that while the consumer and investment confidence are at record lows, President-Elect Obama is enjoying higher approval ratings. Overall, 58% of Americans polled approve of President-Elect Obama’s handling of the transition to power, 38% abhor.

And although the new president will inherit a myriad problems upon entering the White House, it is becoming quite evident that the economy will be Priority One and remain so for quite some time.

Sources:

WashingtonPost.com

RasmussenReports.com

ABC Television

CBS Television

VOANews.com

Associated Press

Can anyone be elected to the office of President without the NASCAR vote? No. Do they have to be NASCAR fans, or savvy about NASCAR races, to be elected? No. Do they have to know who the people of NASCAR really are and address those concerns? Oh, yes.

First, they and their advisors must realize that NASCAR is not about “dads.” There are almost as many female fans as male fans. Even NASCAR owners and sports demographic sources seemed on “disconnect” about this. You’ll see the numbers of female fans quoted as being anywhere from 41% to nearly 50%. If you attend a NASCAR race, you may well decide females are about 75% of the nasty.

Who are these women and what do they like about NASCAR. You’ve probably seen the Allstate commercial of indignant women backing into a light pole as they drooled over Kasey Kahne, driver of the #9 Nextel Cup Series car. So, the fact that many of the racers are better looking than current Hollywood stars is one dimension of it. When one looks at stout, lanky, super-handsome #55 driver Michael Waltrip, it is easy to see why some woman have photographed his Citizen Eco-Drive print ad photo for wallpaper on their cell phones.

But, there are other reasons too. These women are from all walks of life, and all kinds of occupations. Some are teachers who have an entire curriculum could be developed around NASCAR, using it to teach everything from history and social studies to math and physics. Many women who are in scientific fields are drawn to this sport for the same reasons as their scientific male counterparts … this sport is all about physics, math, and growing technology. It is cutting edge.

Women love the sexy looking clothes. Take it from me, these suits look great on the guys, but also can look dramatic and sexy on fans when they do the offered “ride-alongs” and drives offered by some tracks and some racers. I tried it out a couple of years ago and found that one … the suit was super sexy on, I didn’t want to give it back.

Being in the car, as a passenger or driver, sets off a reeling amount of contradictions. In his autobiography, Dale Earnhardt Jr talks about this conflict and that before he gets in the car he often wonders why he is risking his life, then once he gets going the concept goes away. As I slid over the doorframe and into the car I had that same thought pattern.

The first lap is a blur. Vision adapts on the next lap and you start being able to see everything that you are whipping past. And hanging off a high banking 4^th turn, with your harness rattling, well … it is the wildest feeling in the world. When Dale Jarrett, owner of the Jarrett Racing Experience and the #44 driver, asked me a few months after my drive, “How did you like it? ” I had to tell him that “Every fan should do it. It is awesome.” Women cherish adventure. In fact, of the dozens of people doing drives the morning I did, all the ones who were begging to “do it again” … ALL were women. This does not, however, give any advantage to Governor Palin. Women who love adventure are free thinkers.

Second, the candidate and their staff must realize there is not a relationship between getting the “southern state” votes and getting the NASCAR vote. There are plenty of southerners who could care less about NASCAR, just as there are people in Wisconsin who would trade in their cheesehead gear in a minute for an autograph from homeboy Matt Kenseth, 2004 NASCAR Champion.

The south and stereotypical NASCAR is passé. Yes, there was some truthiness in the movie TALLADEGA NIGHTS but only insofar as the sport exists in Talladega, and as it existed 25 years ago. Actually, some praise goes to that movie for an idea that the sport does embrace diversity. Featuring the fine actor Michael Clarke Duncan as Ricky Bobby’s crew chief took the sport somewhere it should actually go … we should be seeing more minorities in those kinds of high profile jobs.

Third, the successful candidate needs to know that there IS a growing amount of diversity in the sport. Many don’t realize that Bill Lester, driver in the Craftsman Truck Series, is the only unusual dusky driver in the three top NASCAR series. Bill is a high tech guy with a college degree in Education & Computer Science from University of California, Berkeley. Look around at all the pits at all the races. You’ll see a rainbow. If you are going to be President, you’ll have to stop thinking of NASCAR as a redneck sport and see it as the technology driven sport it surely is. And one that appeals to smart people.

Third, NASCAR fans, by and big, have a substantial amount of discretionary income. They have to have that. This is not a cheap sport. For one person, to one major race the ticket alone will likely be $100. Add to that fuel to get their, possibly airline tickets and rental car, accommodations, probably more tickets since you’ll likely want to see the entire weekend of racing. As a single person, traveling in my own truck, I end up spending about $1,000 each time I attend a hasten.

Fourth, NASCAR fans are for the most part highly educated. Most of the fans I chat with have at least one college degree, some, like me, have multiple degrees. I’ve even met a rocket scientist at a Vegas race.

Some think of NASCAR as sort of “simple” … hey, it’s just folks driving around and around in circles. Well, other than one in Tennessee, I can’t judge of any major tracks that are really circles … ovals, tri-ovals, rectangles … but not circles. I guess these people who think they are too smart to like NASCAR, just don’t understand geometry very well.

Richard Feynman, the physicist who served so well on the Challenger investigation committee, was a child protégée. When he entered his first college physics classroom his classmates couldn’t understand what he was talking about. Learning on his own, he had developed his absorb language for concepts in physics. Still his knowledge of how things work far surpassed most others working in the field.

When I listen to Darryl Waltrip talk about the vortex of heat that builds up and keeps the track drier even when rain is nearby, or when I hear Richard Petty talk about the coathanger shape of a track and how that can be used for acceleration, I am reminded of Richard Fenyman. Waltrip and Petty haven’t studied physics but they know all about the aspects of it they have used in their careers. With their experience, and they processing of that information, they are just as knowledgable about physics in their occupation as Feynman was in his.

Fifth, people in NASCAR have the very best of hearts when it comes to giving to others and working with their communities and charities. The Petty Family’s Victory Junction Camp, part of the Hole in the Wall Gang Camps founded by Paul Newman, is one very visible charity that has been developed by racing families to help seriously ill children from all over the country. Many of the sport’s top athletes give their time and money to this charity. And most of the stars in NASCAR have their own charities they work with. Dale Jr is well known for his work with humane societies, Greg Biffle and Ryan Newman each have charities to help homeless animals.

Do the Republicans have an edge with NASCAR? Well, even Democratic NASCAR fans thought it was pretty cool when Mr. Bush let the cars be parked on the White House lawn and invited the top 10 finishers to the Oval Office. However, no one has ever overlooked the fact that Mr. Bush’s advisors understand the value of a great photo op. The phrase that could best account for the recent presidency is “photo-op-iness.” But, that only goes so far.

Yes, Mr Bush did put in a day at the Victory Junction Camp, just as he did fly-ins to the Gulf coast in the days after Katrina. He loves those photo-ops. And he loves the money that dear Champion Richard Petty gave to his campaign.

And certainly the federal government has mined the NASCAR fan snide and each branch of the military has a vendor booth at each and every race. So, they do recruit more soldiers from NASCAR than any other sport.

Democrats also need to be buying vendor plot at the races and selling what they are offering: Peace, Prosperity, Jobs, Health Insurance coverage for all Americans. Democrats need to reach the 100,000 to 250,000 people that attend these races. Democrats do need to let the NASCAR audience know that we understand them and that we ARE them. NASCAR’s fan base expanded most during the Presidency of Bill Clinton. NASCAR sponsors, teams and fans suffered financially under Mr. Bush.

Now, I don’t know if Bill ever attended a NASCAR urge but he won big, so for sure he was getting the NASCAR fans vote. His message embraced everyone and made positive what was “in it” for others.

Today, NASCAR has 43 “candidates” (or racers) racing to the “chase” … the final 10 races of the year. Only one becomes Champion as only one will become President in the 2008 election. And the win does not always go to the first, fastest, or best … it goes to the one with the most consistency. Give us consistency, and we’ll put you in the top spot.

First of all, you need to determine how much insurance you really need. Many people are paying more on auto insurance than what their vehicle is even worth. If this is the case the best thing to do is to drop some coverage. If your car is not worth much and you simply have auto insurance because it is a necessity to drive, you should tumble coverage such as collision coverage. This will decrease your premium and still give you the required coverage you need to drive legal.

Another way you can save on auto insurance is by increasing your deductible. This is the amount of money you agree to pay in case of an accident. If you are a safe driver you most likely will never have to pay this money. One way to assign a lot of money on car insurance is to simply increase your deductible.

You can also set on auto insurance by being sincere to one company. If you have home owners insurance, renters insurance, motorcycle insurance, or any other type of insurance try to stick with one company. If you do this you will most likely be offered a multi policy discount on your auto insurance. Simply sticking with one company can help save you money.

These are just a few ways you could save on auto insurance without even shopping around for another company. Following the tips above could befriend keep you hundreds of dollars a year on auto insurance.

“SEC. 2. DETERMINATION OF SECURED STATUS. Section 506(b) of Title 11, the United States Code, is amended by adding at the end the following: `While a case is pending, no fee, costs, or charges may be added to a debt that is provided for in a chapter 13 plan and is secured by the debtor’s significant residence unless the holder of the secured claim gives timely notice of such fee, costs, or charge to the debtor and to the trustee.’. SEC. 3. LIMITATION OF 1978 EXEMPTION THAT PREVENTS FEDERAL BANKRUPTCY COURTS FROM MAKING MODIFICATIONS TO THE TERMS OF A MORTGAGE ON A DEBTOR’S Valuable Status. Section 1322(b)(2) of title 11, United States Code, is amended by striking `, other than a claim secured only by a security interest in accurate property that is the debtor’s principal position,’. SEC. 4. MODIFICATION OF CLAIMS SECURED BY DEBTOR’S PRINCIPAL RESIDENCE. (a) Contents of Plan- Share 1322(b) of title 11, the United States Code, is amended– (1) in paragraph (10) by striking `and’ at the end, (2) by redesignating paragraph (11) as paragraph (12), and (3) by inserting after paragraph (10) the following: `(11) provide for payment of allowed claims secured by the debtor’s indispensable station consistent with section 1325(a)(5), over a period exceeding the period permitted under section 1322(d); and’. (b) Confirmation of Plan- Section 1325(b)(5) of title 11, the United States Code, is amended by inserting `except as otherwise provided in piece 1322(b),’ after `(5)’. SEC. 5. ELIMINATION OF CREDIT COUNSELING REQUIREMENT FOR CHAPTER 13 DEBTORS FACING FORECLOSURE. Section 109(h) of title 11, United States Code, is amended by adding at the end the following: `(5) The requirements of paragraph (1) shall not apply with respect to a debtor in a case under chapter 13 who submits to the court a certification that the holder of a claim secured by the debtor’s principal residence has initiated a judicial or non-judicial foreclosure on the debtor’s principal residence.’. SEC. 6. CONFIRMATION OF PLAN. Section 1325(a) of title 11, the United States Code, is amended– (1) in paragraph (8) by striking `and’ at the end, (2) in paragraph (9) by striking the period at the end and inserting `; and’, and (3) by inserting after paragraph (9) the following: `(10) notwithstanding paragraph (5)(B)(i)(I), the holder of a claim that is paid pursuant to section 1322(b)(11) shall retain the lien securing such claim until payment of such claim.’. SEC. 7. DISCHARGE. Section 1328 of title 11, the United States Code, is amended– (1) in subsection (a)– (A) by inserting `(other than payments to holders of allowed claims provided for under section 1322(b)(11)’ after `paid’ the 1st set it appears, and (B) in paragraph (1) by inserting `or 1322(b)(11)’ after `1322(b)(5)’, and (2) in subsection (c)(1) by inserting `or 1322(b)(11)’ after `1322(b)(5)’.”

HR 3609 IH, Emergency Home Ownership and Mortgage Equity Protection Act of 2007, 110th Congress, 1st Sess., September 20, 2007. Library of Congress, Thomas, http://thomas.loc.gov/cgi-bin/query/z? c110:h3609.

I. AN INDIVIDUAL’S FINANCIAL LIFELINE.

Troubled times often lead to declining values in the American dollar, real estate and loan/credit defaults and then Bankruptcy. Bankruptcy can be traced back as far as the Old Testament, “every seven years, debts are forgiven.” (Deuteronomy 15:1-2). The root of the word Bankruptcy comes from “bancus ruptus,” Latin for bench and broken, respectively. Freund, William; Lewis, Charlton T; et al, A Latin Dictionary, Clarendon Press, 1966. For decades, Bankruptcy has allowed consumers room to legally state an incapacity to settle debts owed to creditors. Most view a Bankruptcy in a poor light, however, when it comes to someone who relies on Bankruptcy, as a interim measure to restructure or get back on their feet, sometimes Bankruptcy is the sole option. Federal Law, Title 11 of the United States Code governs the Law of Bankruptcy, which is the law affected with the proposed bill H.R. 3609.

Corporations are downsizing, adding to one’s economic hardships. According to the Bureau of Labor and Statistics, today we have an 8.5% National Unemployment rate . As such, during a period of unemployment, bills are probably not getting paid and Credit Ratings are only becoming increasingly lower. Credit Ratings are composed of a statistical analysis of whether a person is creditworthy or not. Lenders consume this score to calculate interest rates, whether to lend to the individual based on the determination of whether the person will be able to pay them back. Many employers look at a person’s credit rating and obligation to determine one’s eligibility for a job. Even with solid references and employment history, someone can be denied employment if their Credit Picture consists of subjective adverse information. Thus, a Bankruptcy becomes a practical option since employers cannot deny a person employment because they are in Bankruptcy. (§525. Protection against discriminatory treatment, United States Bankruptcy Code prohibits employers from discriminating against insolvency.) Credit counseling is offered and mandated to help debtors manage their credit and spending.

Insurance Agencies also use the credit rating to determine insurance eligibility and price based on their assessment of uncertainty and insurance loss. House representatives continue to discuss legislation that will regulate the value of credit score insurance valuation. H.R. 5633 proposed the following and is quoted as follows:

“To amend the Fair Credit Reporting Act to prohibit certain discriminatory uses of consumer reports and consumer information in connection with certain personal lines of insurance, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE. SEC. 2. USE OF CONSUMER REPORTS AND CONSUMER INFORMATION IN A DISCRIMINATORY MANNER PROHIBITED.

(a) In General- Section 604 of the Fair Credit Reporting Act (15 U.S.C. 1681b) is amended– (1) in subsection (a), by striking `Subject to subsection (c)’ and inserting `Subject to subsections (c) and (h)’; and (2) in subsection (c)(1), by striking `A consumer reporting agency’ and inserting `Subject to subsection (h), a consumer reporting agency’. (b) Prohibition on Determined Discriminatory Uses of Consumer Reports and Consumer Information in Connection With Insurance- Section 604 of the Fair Credit Reporting Act (15 U.S.C. 1681b) is amended by adding at the end the following novel subsection:

(h) Prohibition on Sure Discriminatory Uses of Consumer Reports and Consumer Information in Connection With Insurance- `(1) IN GENERAL- No consumer reporting agency may furnish a consumer describe or consumer information with respect to any consumer to any person for use in making any decision to underwrite or rate any personal lines of insurance, and no person shall use or obtain a consumer report or consumer information with respect to any consumer in connection with the underwriting or rating of any personal line of insurance, for which the Commission determines, including any finding or determination made in any study for which a characterize is submitted to the Congress, that any such use of the consumer report or the consumer information– `(A) results in racial or ethnic discrimination; or `(B) represents a proxy or proxy effect for bustle or ethnicity. `(2) INSURANCE INFORMATION NOT INCLUDED- Information derived from the following data bases shall not be treated as a consumer picture or consumer information for purposes of paragraph (1): `(A) Databases that absorb information on property loss data regarding personal lines of insurance, such as the Comprehensive Loss Underwriting Exchange (CLUE) and Automobile-Property Loss Underwriting System (A-PLUS). `(B) Databases that contain information on driver history, such as accidents or intriguing violations, typically maintained at State departments of motor vehicles. `(C) Databases that occupy information on a consumer’s medical history, to the extent such access and spend for purposes described in paragraph (1) is consistent with the requirements of section 604(g). `(3) EFFECT ON STATE LAWS- Notwithstanding section 625(b)(3)(C), no provision of this section shall be construed as limiting or superseding the application of any State laws or regulations that restrict or prohibit the spend of consumer reports or consumer information in the underwriting or rating of any personal lines of insurance. `(4) DEFINITIONS- For purposes of this subsection, the following definitions shall apply: `(A) CONSUMER INFORMATION- The term `consumer information’ means any information from the file on any consumer at a consumer reporting agency, or any product derived from any such information. `(B) PERSONAL LINE OF INSURANCE- The term `personal line of insurance’ means any personal automobile or homeowners line of insurance, as defined in the Uniform Property and Casualty Product Coding Matrix established and maintained by the National Association of Insurance Commissioners (or any successor to such document). `(C) PROXY FOR RACE OR ETHNICITY- The term `proxy for urge or ethnicity’ means a substitute or stand-in for accelerate or ethnicity, either by design or in effect, without regard to the extent of the effect.’”.

H.R. 5633 IH, Nondiscriminatory Use of Consumer Reports and Consumer Information Act of 2008, 110th Congress, 1st Sess., March 13, 2008.

H.R. 5633 was presented to the House Finance Committee to offer a non-discriminatory use of consumer confidence reports and providing limiting and prohibitory measures. The House members for the bill argued “credit-score ratings penalize consumers because of the business decisions of the lenders, unfairly penalizes consumers who are victims of medical and natural catastrophes, has an adverse and disparate impact on low-income families and credit reports often have incomplete and inaccurate information.” Hunter, Robert J. Consumer Federation of America, The Impact of Credit-Based Scoring on the Availability and Affordability of Insurance, Hearing Committee in Financial Services Subcommittee on Oversight and Investigations – House of Representatives, May 21, 2008. Those members opposed to the bill argue the requirement for credit scoring risk since “[l]ending institutions use credit to determine the likelihood of repayment… The most significant difference between insurers and lending institutions is that insurers never contemplate income… The latest survey shows that 90.2 percent of automobile insurance policyholders and 90.8 percent of homeowners insurance policyholders either received a discount or were otherwise unaffected by the exercise of credit.” Neeson, Charles, Westfield Group on behalf of Property Casualty Insurers Association of America, Hearing before the House Financial Services Subcommittee on Oversight and Investigations, The Impact of Credit-Based Insurance Scoring on the Availability and Affordability of Insurance, May 21, 2008. The H.R. 5633 bill never passed. However, bills are often revisited.

A majority of our states have already enacted some statute which limits the application of credit scores when predicting risk, thus reflecting the sigh that consumers are often harmed without restrictions and cram-down provisions. In Folks v. Tuscaloosa County Credit Union, 989 So. 2d 531, 538 (Ala. Civ. App. 2007), an action for a deficiency claim was filed by debtor’s automobile lending company after his vehicle was repossessed. The position of Alabama enacted a statute limiting the use of debtor’s credit score to determine interest rates, in that a setoff approach is used in order to settle the deficiency. The Alaska Supreme Court decided against the request of an insurance companies use a debtor’s credit score in order to renew insurance, interpreting Alaska Statute § 21.36.460, Uses of and restrictions on credit history or insurance scoring applicable to personal insurance. See Spot v. Progressive Cas. Ins. Co., 165 P.3d 624 (Alaska 2007).

Under our current Administration and economic situation, views of a person’s insolvency are quickly changing. Analysts own Bankruptcy filings will only increase should the new cram-down measures implement. Looking at the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA -amendments to the U.S. Bankruptcy Code) which impacted the scheme consumer debts are processed by adding more restrictions and measures to alleviate the Bankruptcy process, and how this new proposed law will reverse some of these restrictions, legislators are quickly recommending and voicing their opinions and perspectives. Our legislators address what a person’s eligibility is for bankruptcy and who decides which assets the debtor will keep. Since the intent BAPCPA introduced was to make a less desirable way to file Bankruptcy (as some say it was too easy), the new proposed act today impacts individuals filing Bankruptcy by requiring now a credit counseling certificate and a segregation of individuals by median income levels. According to the American Bankruptcy Committee, there is not enough historical data to rely on legislator’s true intent, and we must then rely on case history and policy when determining meaning and intent of the statute. Hollowell at 175. Since there is conflict in interpretation among the courts, it is well established this means the analytical framework is not sufficient. Hollowell at id. The required computation called the means test (§1325(b)(3)) – or projected disposable income, determines eligibility. Anyone having an excess of $166 over household expenses is now required to file a Chapter 13, rather than a Choice of either Chapter 13 (reorganization) or Chapter 7 (total liquidation); thus raising the bar of expectation courts have on the debtor and a more complex path to confirming a debtor’s reorganization belief in order to prevent Chapter 7 abuse.

Normally a Chapter 11 Bankruptcy reserves application for a Business Entity reorganization. However, under the proposed Bankruptcy Code, debtors who do not qualify for Chapter 7 or 13, may only have a Chapter 11 option. (See Toibb v. Radloff, 501 U.S. 157 (1991)). §1115, 1123(a)(8), and 1129(a)(15) provide a requirement where a debtor must support a percentage of future income to creditors.) This may introduce problems for debtors where there is more flexibility – a respectable dilemma to have.

II. ACTIONS A DEBTOR HAS TODAY THAT MAYBE AFFECTED BY H. R. 3609.

A. Mortgages and Foreclosure

California and other location statutes see ways real property may guarantee the payment of debt or plan for some other obligation: 1) mortgage (Cal. Civ. Code §2922); and deed to secure debt; and deed of trust sometimes called the grant deed, or trust deed. Cal Civ Code §1092 provides the benefit of grant deeds to transfer ownership to property. Grant deeds are the most popular instrument used in California. With the proposed law, now valuation will be determinative whether the property guarantees full payment of debt or not. The following explains the relationship between property and security deed.

A mortgage secures an obligation (debtor to pay) with a lien against the debtor’s real estate. Should the debtor default on her mortgage, debtor is serene lawfully in possession and control of the title and the lender only has an interest in her property (Cal. Civ. Code §2923). A security deed transfers the title to the lender/mortgagee with an opportunity to direct a foreclosure or prefer the property. A mortgage would force lenders to move through judicial foreclosure, which can be time consuming and expensive. So long as there is a reasonable default, as stated in Ghirardo v. Antonioli, 14 Cal 4th 39, 57 Cal Rptr 2d 687 (Cal. 1996) “there may be only one action for the recovery of a debt secured by a trust deed, which action is one of foreclosure. Although an exception to this one action rule has developed in cases where foreclosure would be an idle act because the security has been destroyed or has become worthless, the exception does not apply if the beneficiary is responsible for the loss of security. When the mortgagee, by his or her own act or neglect, deprives himself or herself of the right to foreclose the mortgage, he or she no longer has a legal to an action upon the sign.” (See also Cal. Code Civ. Proc. §726.) Lenders prefer to apply the non-judicial method security deed’s require.

While a security deed (grant deed a.k.a deed of trust) is mostly preferred and used routinely in almost residential and business real estate transactions, a mortgage can be used by someone unfamiliar with California law. Fortunately, laws governing security deeds and mortgages are similar. If the mortgage contains a provision that authorizes sale, it may be foreclosed through a non-judicial consume foreclosure sale; like the same manner as a deed of trust.

From a Debtor-Borrower’s perspective, if she goes into foreclosure, she may only have a few options. A borrower may choose to sell the property, provide a Deed in lieu of foreclosure, work out some arrangement/loan modification, file bankruptcy and finally go into foreclosure proceedings. The threat of foreclosure brings lenders to an option to negotiate a defaulted loan. July 8, 2008, California legislators passed an amendment of California Civil Code 2923.6, now requiring lenders in the State of California to accept loan modifications if borrowers qualify under the recent requirements. California Civil Code 2923.6 applies to loans made from January 1, 2003, to December 31, 2007, and secured by residential real estate and are owner-occupied.

B. Stay Period, ultimately delaying the Foreclosure

California Senate Bill 1137 is a result of the sub-prime loan market collapse and as an urgency measure. Until this bill, mortgage lenders were under no statutory requirement to communicate its intention to act on a non-judicial foreclosure. This law applies to loans secured by an owner occupying residential real property and loans made between January 1, 2003 and December 31, 2007. These laws will stay in force until January 1, 2013. A new component added to the California Civil Code as follows:

“Until January 1, 2013, and as applied to residential mortgage loans made from January 1, 2003, to December 31, 2007, inclusive, that are for owner-occupied residences, this bill would, among other things, require a mortgagee, trustee, beneficiary, or authorized agent to wait 30 days after contact is made with the borrower, or 30 days after satisfying due diligence requirements to contact the borrower, as specified, before filing a notice of default. The bill would require contact with the borrower, as defined, in order to assess the borrower’s financial situation and explore options for the borrower to avoid foreclosure. The bill would require the mortgagee, beneficiary, or authorized agent to bellow the borrower that he or she has the right to request a subsequent meeting within 14 days, and to provide the borrower the toll-free telephone number made available by the United States Department of Housing and Urban Development (HUD) to accept a HUD-certified housing counseling agency. The bill would require the notice of default to include a specified declaration from the mortgagee, beneficiary, or authorized agent regarding its contact with the borrower or that the borrower has surrendered the property. If a notice of default had already been filed prior to the enactment of this act, the bill would instead require the mortgagee, trustee, beneficiary, or authorized agent, as piece of the notice of sale, to include a specified declaration regarding contact with the borrower. The bill would authorize a borrower to designate a HUD-certified housing counseling agency, attorney, or other advisor to discuss with the mortgagee, beneficiary, or authorized agent, on the borrower’s behalf, options for the borrower to avoid foreclosure. The contact and meeting requirements of these provisions would not apply if a borrower has surrendered the property or the borrower has contracted with an organization, as specified. The bill would also require specified mailings to the resident of a property that is the subject of a notice of sale, as specified. In addition, the bill would make it a crime to perambulate down the inspect of sale posted on a property within 72 hours of posting, thereby imposing a state-mandated local program.
Until January 1, 2013, this bill would require a legal owner to maintain vacant residential property purchased at a foreclosure sale, or acquired by that owner through foreclosure under a mortgage or deed of trust.” (Cal. Civ. Code §2923.5) (See also American Housing Rescue and Foreclosure Prevention Act of 2008, H.R. 3221, 110th Cong. §§ 401-402 (2008).

The stay period will only delay the foreclosure, in my opinion, according to what I have witnessed working in my Law Firm. The issue that the debtor still does not have a job, has not been resolved. Without a job, regardless of the stay period, the debtor will still not be able to pay the mortgage. However, with a stay period, the debtor has time until the new provisions are passed which then the debtor will have the option to file bankruptcy and cram-down the mortgage loan.

C. Deficiency Actions

When potentially-to-be-foreclosed property incurs a lien, at the judgment of foreclosure sells with a deficiency of proceeds to conceal the lien, a lender may file a deficiency judgment against a debtor or anyone else liable within the foreclosure of the mortgage (Cal. Code §3151).

“California’s anti-deficiency laws do not preclude a creditor from pursuing all security given to collateralize an indebtedness. Thus, a guarantor of a security deed is not protected against a deficiency judgment.” Hodges v. Mark, 49 Cal. App. 4th 651, 656 (Cal. App. 2d Dist. 1996). Cal Code Civ Proc § 580b lists prohibitory conditions applying deficient judgments .

In order to space a deficiency action after a foreclosure sale, the lender must, within 30 days of the sale, report the transaction to the court and file with the clerk an application for an order confirming the sale. (Cal. Civ. Proc. §580(b)) The mortgagee must point to the land sold for its true market value. In order to carry this burden of proof, the lender should have the property appraised shortly before sale by at least one MAI certified real estate appraiser and be willing to bid on the property in an amount comparable to the appraised value. The foreclosure bid will repay the indebtedness to that extent; therefore; it is imperative the lender bid the appraised value of the property in a deficit situation with a correct suitable description. (Clayton Development Company v. Michael P. Falvey, 206 Cal. App. 3d 438)

Unless the debtor appears financially sound, it is probably not helpful raze efforts obtaining an appraisal, pursing confirmation and filing a deficiency action. However, some lenders may be under instructions from governmental agencies (Fannie Mae, Freddie Mac, etc.) or mortgage insurers to cure the deficiency rights in all cases.

“California’s anti-deficiency laws do not preclude a creditor from pursuing all security given to collateralize an indebtedness. Thus, a guarantor of a promissory note secured by a deed of trust is not protected against a deficiency judgment.” Hodges v. Mark, 49 Cal. App. 4th 651, 656 (Cal. App. 2d Dist. 1996).

In order to file a deficiency action after a foreclosure sale, the lender must, within 30 days of the sale, portray the sale to the court and file with the clerk an application for an order confirming the sale. (Cal. Civ. Proc. §580(b)) The mortgagee must prove the property sold for its true market value. In order to carry this burden of proof, the lender should have the property appraised shortly before sale by at least one MAI certified real estate appraiser and be prepared to bid on the property in an amount equal to the appraised value. The foreclosure bid will satisfy the indebtedness to that extent; therefore; it is imperative the lender bid the appraised value of the property in a deficiency situation. (206 Cal App 3d 438)

Unless the debtor appears financially sound, it is probably not worthwhile to expend the time and money involved in obtaining an appraisal, pursing confirmation and filing a deficiency action. However, some lenders may be under instructions from governmental agencies (Fannie Mae, Freddie Mac, etc.) or mortgage insurers to preserve the deficiency rights in all cases.

A probable effect of the H.R. 3609 is the recent proposed law will cram-down any deficiency above accurate (appraised) value of the property.

D. Priorities

Home loans are always given a priority over other types of loans since they have high collateral value (a secured claim based on the value of the home). This means the priority of a lien applied in a home loan will generally be first. Lien priorities are charged on a property for payment of a debt on the property. Federal and situation laws determine the priority of liens, i.e. federal tax liens will typically be given top priority (paid first); see Slodov v. United States, 436 U.S. 238, 257-58, 56 L. Ed. 2d 251, 98 S. Ct. 1778 (1978). “[S]tate law dictates the existence of property interests, but the priority of those interests with respect to other portions of the tax law is an remark of federal law.” Bednarowski & Michaels Dev., L.L.C. v. Wallace, 293 F. Supp. 2d 728, 732 ( E.D. Mich. 2003). “A preexisting lien, i.e., a tax lien, encumbers whatever property the lienee thereafter acquires.” Wallace, 293 F. Supp. 2d at 733.

Lien Priorities are dealt with repeatedly in Foreclosure actions. Today, accurate estate property may contain multiple types of liens filed against it including a Trust Deed, a Federal Tax Lien, a Construction or Mechanics Lien. Some properties may also include a First and Second Mortgage Trust Deed, Homeowner Association (HOA) lien, or Delinquent Property taxes. Generally, lien priority attaches when the lien is recorded and expressly prioritized with the County Recorder. As such any transactions occurring during a loan re-work or foreclosure sale, it is valuable to search for any liens attached to the property.

In the United States we fight to retain our right to maintain property over any other right. Prioritizing home loans over all others clearly supports this policy. The cram-down goal is to give the home owner incentive to pay as noteworthy to their home loan as possible by reducing their lower priority – unsecured debt in order to free up extra cash to pay down the mortgage/home loan.

E. Loan Modifications

The decline of the American economy has led to an increase of loan modifications in order to put lender’s assets back into a working-asset rather than a loss and write-off. When a loan is modified, usually a) the loan maturity date shortens (the loan is due at an earlier date), b) the interest rate increases, or c) the entire amount of debt owed is increased. This is considered a material modification that would adversely affect the debtor and any subordinate lien holder on account.

“Despite the waiver as to application of loan proceeds, the court held that public policy requires protection of subordinating sellers and that a lender and a borrower may not bilaterally develop a material modification in the loan to which the seller has subordinated, without the knowledge and consent of the seller to that modification, if the modification materially affects the seller’s rights.” Gluskin v. Atl. Sav. & Loan Assn., 108 Cal. Rptr. 318, (Ct. App. 1973). In Gluskin, Jack Gluskin owned 172 lots of land which he sold to the corporation Pathfinder under a promissory sign secured by the Trust Deeds for the land plus fifty percent of profits on the sale of these new developments. Pathfinder then borrowed money from Atlantic Savings and Loan in order to develop a housing development on the land. And thus when Pathfinder defaulted, the notify ascended on whether a loan modification made without Gluskin’s consent, created a priority Atlantic has over Gluskin since in the Gluskin Trust Deed contained a subordination provision expressly stating Gluskin subordinated under Atlantic’s Trust Deeds and that loans were given in reliance on the subordination. Here the Appellate Court reversed the lower court’s ruling for Atlanta since there was no finding of the fact that Gluskin had consented to this modification.

Shane v. Winter Hill Fed. Sav. & Loan Assn. raised the question about a loan modification where interest raised on a first mortgage applies to the second mortgage. In this Massachusetts court, trustee Richard Ross provided a $450,000 mortgage and deed for the Winter Hill Federal Savings and Loan Association for a property on Turnpike Street, Canton, Mass. Two years later, Ross executed a second mortgage for $100,000 on the aforementioned property, to a Realty company. The realty company had agreed to steal on an option to cure a default by Winter Hill, by increasing the first mortgage’s interest rate. When Winter Hill defaulted again, they also notified the realty company of its intent to foreclose. The realty company also purchased the property subject to the first mortgage, and then filed claims against Winter Hill for the raise in interest. The realty’s interest was only that they had a claim in the security of the property, and had requested perceive of any default and then have the option to rectify it and not be bound by any interest rate agreements she was a junior interest thereto. The court held that the interest rate increase agreed between the Ross and Winter Hill without notice to the Realty company, did prejudice the Realty company and they will not remain bound to that agreement as they were the second mortgagees.

Courts seem to end more lenient applying loan modifications that have minimum impact on the debtor and may in some cases be of assist to junior liens. Where loan modifications a) extend the maturity date, b) defer interest, c) reduce the interest rate or d) slice the loan amount, the extensions seemingly put a lender’s property back to a working and active status. Also, these types of modifications should not adjust the lender’s priority.

In Resolution Trust Corporation v. BVS Development, Inc., land developers sold land in exchange for deeds of trust for construction financing with subordinate interests, from Concord-Liberty Savings and Loan Assn. who partnered with Resolution Trust Corporation. When the development project soured, and the land developer’s defaulted on a $2.6 million loan, the lenders filed a foreclosure action. Defendant land developers argued that when their maturity date was extended, the subordinate clause was not appropriate and also cite the rule from Gluskin that the extension loan modification had not been consented had thus adversely affected their lien position. Here however, the amendment did not expand the chance of default, like it did in Gluskin. The land developers in fact, had more time to pay at the equivalent rate, unlike Gluskin where time was reduced and interest was increased.

“[T]he extension was made at a time when the borrower was in difficulty; it could be reasonably argued the extension gave the borrower a chance to turn itself around and pay off its debts. By itself, the extension cannot be said to be a material modification requiring an adjustment of priorities as a matter of law.” Lennar Northeast Partners v. Buice, 49 Cal. App. 4th 1576, 1584 (Cal. App. 3d Dist. 1996). Here the interest rate changed from a variable to a set rate. The maturity date was extended as well as the principal amount in order to support the Trust company-debtor regain control of payments. The lower court ruled Trust company no longer had a priority claim since they modified the terms of the agreement. This Appellate court reversed ruling no material modification or prejudice to the subordinate lien holders.

The current 1322 (b) statement striken “other than a claim secured only by a security interest in real property that is the debtor’s principal residence[,]” modifications will be allowed to a debtor’s principal residence. We are looking at cramming down the value of the property to what its actual value is today in order to free up extra cash applied to other unsecured and lower priority loans. This should not be considered a material modification since it is a best-effort to pay those we owe in the fairest scheme possible.

F. Title Insurance

Since valuation is at stake here and title insurance covers the staunch value of the property, two major organizations should be discussed regarding insurance related to accurate estate; The American Land Title Association (ATLA) and the California Land Title Association (CLTA). ATLA and CLTA provide title insurance endorsing that the property at issue is free and easy to transfer and provides certain assurances. When mortgage loans are modified, ATLA will not guarantee any subsequent agreements than the first policy contracted on the land. There are other coverage options that will require extra protection and endorse modifications set forth in ATLA Form 11 and CLTA Form 110.5. However, as mentioned in Gluskin, Shane and RTC, courts do not favor material modifications that prejudice junior lien holders; so long as Form 11 and Form 110.5 do not contain a material modification, the title insurance coverage value should be ascertainable.

To be exhaustively diligent, the title to the property should be examined early in a foreclosure proceeding. A full title examination would, of course, be the most useful in that it would reveal any defects in the mortgagor’s title existing when the security deed was executed. However, where an attorney is provided with a mortgage title insurance plan (obtained when the security deed was executed) it is customary to conduct a restricted title examination coming forward from the date of the security deed (2008 Cal ALS 80, Cal. Code Civ. Proc.§880.020(a)(4)). The title insurance policy should be provided to an attorney at the outset (Cal Ins Code §1063.1).

The limited title examination should include a search of the following public records; 1) deed records, 2) federal tax lien docket, 3) lis pendens docket, 4) bankruptcy records and 5) possibly probate records. It is also recommended to check the bankruptcy records shortly before a foreclosure sale. These factors are simply a guideline and to be positive all bases are covered, and to be sure your property does not contain any hindering constructs that Title Insurance may not cover.

I will highlight vital factors to know:

1. Deed Records.

The deed records kept by the Clerk of the Good court in the count which the land lies should be examined to ascertain the names of all persons who have held right to the property since the execution of the security deed. A chain of title is needed in order to preserve evidence of ownership.

Only litigation which goes to the validity of the security deed or the right to foreclose should finish the foreclosure sale. Any other litigation regarding the property concerns rights of parties which are subject to the security deed and thus subject to foreclosure (Cal. Code Civ. Proc.§ 880.260 (a)(1)).

If the lis pendens docket reveals the property in foreclosure is in the custody of a receiver, the foreclosure should immediately cease. Such property is in the custody of the court appointing the receiver, and its assets may not be interfered with unless the mortgagee intervenes in the proceeding and obtains authorization to foreclose. Where the due date is ascertainable from the record, the 10-year limitations period of Civ. Code §82.020(a)(1), applies. Any recorded document that contains the due date of the impress secured by the trust deed in question will suffice. Slintak v. Buckeye Retirement Co., L.L.C., Ltd., 139 Cal. App. 4th 575 (Cal. App. 2d Dist. 2006).

2. Bankruptcy Records.

The filing of a bankruptcy petition automatically enjoins a foreclosure against property of the debtor and of the insolvency estate (11 U.S.C.A §362(a) – automatic stay). All foreclosure activities should be dropped upon proper notification the present owner has filed bankruptcy. Failure to slay the foreclosure could result in the lender’s (and perhaps the attorney) being held in contempt of court. Furthermore, a foreclosure sale conducted in defiance of the stay is void. Before proceeding with foreclosure, the lender must either achieve a court order lifting the stay or wait until the stay otherwise terminates under 11 U.S.C.A §362. Debtors or their attorneys generally command the foreclosing lender of a bankruptcy filing, but not always. Therefore, it is recommended to check the Bankruptcy Court records to ensure the present owner has not filed. Since bankruptcy filings are often seize place at the eleventh hour, the bankruptcy records should be checked shortly before the foreclosure sale date.

3. Federal Tax Liens.

A tax lien against anyone in the chain of title recorded must be dealt with in a specific manner. The trust deed will gain its priority over subsequently filed federal tax lien. 26 U.S.C.A §7425 (b). Without IRS notice or consent, the federal lien will remain on the property superior to the purchaser’s title obtained at sale. The purchaser may apply for a Certificate of Discharge From Federal Tax Lien, however. 26 U.S.C.A §6325 (b).

4. Probate Records Need Not Be Examined.

A right of sale in the security deed is a power coupled with an interest and is therefore irrevocable so that the power may be exercised regardless of the death of the mortgagor. In California, a trust situation, when a trustor has died, the successors in interest are entitled to receive notice of default under certain circumstances. Essentially, proof of interest must be filed in the county where the land is located. It must provide constructive notice to the trustee prior to the recording of the notice of default. Further, it must supply an address to which notices may be mailed. The trustee should try to track down successor’s but does not include the duty to. See Estate of Yates, 25 Cal. App. 4th, 511 (1994).

In light of the title, with a due diligent search, the proposed cram-down should not have any affect on the insured amount of your property so long as modifications made have not been determined material.

III. AN UNREGULATED INDUSTRY LEADS TO FRAUD

The Real Estate Settlement Procedures Act (RESPA) section 6, 12 U.S.C. 2605, provides consumer protection with the mortgage-industry loans. The debtor may send a Qualified Written Inquire to the lender who in return must provide a written acknowledgment. During a suspension period, the lender cannot report to any consumer credit agencies (i.e. Equifax, etc). A debtor may also file a private lawsuit for a RESPA violation and noncompliance. The problem is that these written requests are often ignored and usually a strategy to obtain a stay order.

In my opinion, Consumer Protection is thinly spread between too many agencies. The Consumer Protection Agency, the Federal Trade Commission and the Securities and Exchange Commission all stake claims on protecting consumers. Loan servicers are usually a secondary party working for a profit. When a loan goes into foreclosure, more fees are tacked on. Because of little to no regulation in the mortgage industry abusive behavior tends to generate and fuel the already-stressed housing crisis.

Frustrated Homeowners deal with tacked on fee after fee, some services which have not even been performed (i.e. pre-paid charges for future overdue fees and inspection costs). Law Firms, such as mine, see these fees have a immediate impact on the increase of foreclosures since those fees only add to their monthly payments which keep increasing, the homeowner can no longer pay their monthly rate and thus default.

With further regulation which will be added with the original proposed bill, I believe new administration will be able to identify, manage and address complaints with ease. I also believe ignored complaints will lessen since these complaints will now be moot if the court will now be addressing the root of the problem – valuation of the total debt.

IV. CRAM-DOWN EFFECTS.

This proposed bill may encourage more Chapter 13 bankruptcy filings. The Helping Families Achieve their Homes Act and HOPE for Homeowners is a rescue plan. President Obama is initiating so borrowers will have an opportunity to re-work their loan payments and pay all their debts without losing a home in foreclosure. The bill offers that legislation reimburse lenders part of their loss should a debtor is in a Chapter 13 and sells the property. Director Peter R. Orszag, of the Congressional Budget Office, analyzed forthcoming legislation and believes “the bill as a whole… would increase the budget deficit over the next decade, incur larger losses… higher coverage levels and insured deposits… gradually offset with higher future premiums.” Orszag, Peter R., Congressional Budget Office, Letter to Chairman Christopher J. Dodd- Chairman on Committee on Banking, Housing and Urban Affairs- United States Senate, October 1, 2008. The plan, designed to secure and manage failing and shrinking assets will require additional administrative costs. The resale values will be hard to ascertain. Orszag believes proceeds gained in sales and future valuation increases will be less than the entire acquisition cost this government will continue making.

While Chairman Orszag proves a reasonable point, the solutions used today cannot be applied in today’s world economy. It is clearly failing. Without some change that will jumpstart our economy, we will continue on the spiral downward turn. A different strategy will earn a unique mechanism (i.e. The Energy Improvement and Extension Act of 2008 is another plan to move our economy). The key here is to conserve where we never have before in order to unlock new avenues of financing and spending.

As you see, the tide of foreclosure is bringing heavy, quick-moving change. Presently, Bankruptcy Judges do not have the right or authority to unilaterally create mortgage loan modifications. Also, now loan modifications are usually worked by private consumer companies and law firms, mine included. Cram-down supporters say a cram-down is the ideal tool that encourages lenders to provide loan modifications for their borrowers. The cram-down bill allows federal judges to modify note terms, decrease interest rates and mortgage loan balances of bankrupt homeowners. It also will permanently extend the Federal Deposit Insurance Corp.’s insured coverage to $250,000. Nay-sayers believe cram-downs will create higher interest rates (higher costs to procure a loan) and an even-tighter credit market.

Those opposed against the proposed bill say these additions are unnecessary provisions. One provision allows bankruptcy judges the authority to change the mortgage loan terms, like the loan balance, in a Chapter 13 bankruptcy proceeding. When we allow judges to deny these changes, a request arises as to how the collateral value of the property at issue is calculated. Many fear an economic impact. Most of the lending community (including the American Bankers Association and other Republicans) stands against the proposal declaring mortgage rates will increase, forcing lenders to require larger payments up front in order to account for the newly added risk.

I will discuss.

Bifurcation

Bifurcation means a forking; a division into two branches. Section 506 of the title 11 United States Code (a.k.a. cram-down provision) authorizes bankruptcy claims to be bifurcated or split into secured and unsecured claims. §506 (a) maybe applied to Chapters 7, 11 and 13 claims. Courts are split, however, as whether to allow bifurcation or not. See In re Mordred J. Richards et al. v. Federal Home Loan Mortgage Corp., 151 B.R. 8, *; 1993 Bankr. LEXIS 284, **; Bankr. L. Rep. (CCH) P75, 145; 28 Collier Bankr. Cas. 2d (MB) 626. 11 U.S.C 506 provides the following:

“(d) To the extent that a lien secures a claim against the debtor that is not an allowed secured claim, such line is void, unless -

(1)such claim was disallowed only under section 502(b)(5) or 502(e) of this title; or
(2)such claim in not an allowed secured claim due only to the failure of any entity to file a proof of such claim under fraction 501 of this title.”

Applied to fragment 1325 (a)(5) as follows:

“(a) Except as provided in subsection (b), the court shall confirm a concept if — …

(5) with respect to each allowed secured claim provided for by the plan — …
(B)(ii) the value, as of the effective date of the thought, of property to be distributed under the plan on story of such claim is not less than the allowed amount of such claim…”

Believe Feeny in Richards cites and summarizes various district court decisions in conflict with the interpretation -thus clearly ambiguous– the “denial of bifurcation would be a windfall to mortgagees whose worthless unsecured mortgages would continue to encumber debtors homes to the extent of the debt after Chapter 13. This result would counter to the reorganization provision of Chapter 13 premised upon the retention of assets and the new start policy of the Bankruptcy Code.” With the new provision the conflict of whether to bifurcate claims or not will likely be resolved since the courts will now be able to revise the actual secured claim amount.

Valuation of the property is “fixed at the time of opinion confirmation,” Richards at 30. The result then under HR 3609, would be current asset value of homes will be significantly lower than what was originally mortgaged. The cram-down value will then be lower and the debtor pays less. Then, of course various arguments arise as to whether the loan is really secured or not since the actual value is much lower. I will not address these arguments here. My goal is to simply answer the question at issue which I do not contain security is at issue – only valuation and added costs.

Filing Bankruptcy

“Under chapter 13 of the Bankruptcy Code, unless the debtor surrenders the property securing the lien to the holder of an allowed secured claim provided for by the opinion or such holder accepts the understanding, a chapter 13 plan that provides for a secured claim may not be assured of confirmation without a cram down provision comporting with section 1325(a)(5)(B). Chapter 13 cram down is comprised of two essential elements, lien retention and equivalent value, distributed in accordance with certain rules each of which must be provided for under the chapter 13 plan itself.” Collier on Chapter 13 Cramdown, 2008 Emerging Issues 1253. In today’s market, with declining housing markets, unemployment rates rising steadily our legislators are taking action in order to stabilize what we already know is a declining economy. Most understand the definition of cram-down as “a court-ordered reduction of the secured balance due on a home mortgage loan, granted to a homeowner who has filed for personal bankruptcy.” Finance and Business Terminologies, http://www.answers.com/topic/cram-down.

A judge will then identify the actual value of the home as the secured value, and the deficient balance as unsecured, then prioritized as such. Example: A bankruptcy judge considers a $400,000 property value that contains a $350,000 first mortgage and $50,000 unsecured debt. He can then allow $350,000 to the first mortgage holders, and cram-down the $50,000 unsecured debt to $10,000. With proposed law HR 3609 a judge may alter the secured and unsecured debt as he sees it and to justify what the debtor actually owes maybe too distinguished. If a debtor is making payments on a $200,000 mortgage on a home valued at $120,000, that debtor is paying over-the-top an unjust amount and thus not in compliance with §1325 (a)(5)(B)(ii).

Basic Contract rules provides when asset valuation declines lickety-split due to unforeseen market changes, parties to that contract may be excused from performance due to commercial impracticability or courts tend to support contract modifications. “When the occurrence of an unforeseen event would cause a promisor to contain and unexpectedly large loss in performing her contractual obligation, the parties might renegotiate and modify the promisor’s contract… The celebrated law doctrines of impossibility and commercial impracticability release the promisor from her obligation on the grounds of an unforeseeable supervening event that increases the cost of either literal performance or damages liability to a level beyond the anticipated values at the time of contracting.” Triantis, George G., Unforeseen Contingencies. Risk Allocation in Contracts, University of Virginia Law School (1999). It is clear with today’s market changes, the debtor’s value has significantly decreases and must be allowed and addressed with modification.

Section 5, H.R. 3609 Elimination of credit counseling requirement for chapter 12 debtors facing foreclosure, offers to strike from section 109 (h) of Title 11 “shall not apply with respect to a debtor in a case under chapter 13 who submits to the court a certification that the holder of a claim secured by the debtor’s principal residence.” This somewhat loosens the restrictions for what may or may not be of succor to the debtor. Under credit counseling advisement, a person must understand the root of the financial problem. Sometimes it may only be a hardship where no matter how much credit counseling one gets, you would smooth have to file bankruptcy (i.e. medical costs for an unexpected accident or sickness).

V. Conclusion

H.R. 3609′s biggest impact here will be actual property valuation. Declines in property values are at the forefront. Homes that mortgaged at $200,000 may only be worth $120,000 today. While the new administration maybe and probably will be required to manage activity proposed here, I am not convinced this will negatively impact the current Mortgage business today. Will it stop excessive fees? Probably. Does that impact mortgagees? Yes. However, the leverage of these new rules will only serve manage fraudulent activity. Will title insurance coverage be affected? Yes, but only in the sense of what property will be automatically valued by the court. Credit Counseling will no longer be another hurdle to jump. Since managing a credit report should be a job in itself, and identity fraud is at it highest, we cannot solely rely on credit characterize updates. That said, I believe opponents of the bill provide reasonable arguments; but do not address any other avenues resolving the conflict. If we march forward under the same rules and regulations, we will continue to spiral downward. I believe the change will a better influence and will allow debtor/homeowners the relief they need to save their most prized-possession-their home.

End Notes:

“Persons are classified as unemployed if they do not have a job, have actively looked for work in the prior 4 weeks, and are currently available for work. Persons who were not working and were waiting to be recalled to a job from which they had been temporarily laid off are also included as unemployed. The unemployment rate represents the number unemployed as a percent of the labor force.” (Bureau of Labor and Statistics, as of May 4th, 2009)

2 “No private employer may terminate the employment of, or discriminate with respect to employment against, an individual who is or has been a debtor under this title, a debtor or bankrupt under the Bankruptcy Act, or an individual associated with such debtor or bankrupt, solely because such debtor or bankrupt” (Title 11 sec. 525 (b) U.S. Bankruptcy Code)

3 See Hollowell, Eileen W., Levitt, Kathleen, et al; First This Method, Then That Way -Conflicting Interpretations of BACPA, American Bankruptcy Institute, Consumer Bankruptcy Committee, Volume 4, Number 2 (2007); http://www.abiworld.org/committees/newsletters/legis/vol4num2/1.pdf. A bankruptcy mediate and Chapter 13 Trustee and others came together to discuss the importance of using plain language statutes provide and when ambiguous, a statute should be revisisted.
Peer In re Hardacre, 338 B.R. 718. The court here sorts out the meaning of projected disposable income and dependable disposable income and the means test applied.

4 Deed in lieu of foreclosure. This is usually feasible only if the property is free from junior liens and encumbrances. There is, however, a risk of the conveyance being subsequently set aside by a bankruptcy court as a preferential transfer if the property was worth substantially more than the indebtedness. If this intention is used, the mortgagor should be required to sign an estoppel and solvency affidavit in addition to the deed. The mortgagee may also want to consider including non-merger language in the deed and not releasing its security deed for some time after the transfer to insure that it as least retains its secured position in the event a bankruptcy court should set aside the conveyance. GBJ, Inc., II v. First Ave. Inv. Corp., 520 N.W.2d 508 (Minn. Ct. App. 1994).

5 The filing of a bankruptcy petition automatically enjoins a foreclosure against property of the debtor and of the bankruptcy estate (11 U.S.C.A §362(a) – automatic stay). All foreclosure activities should be dropped upon proper notification the current owner has filed bankruptcy. Failure to stop the foreclosure could result in the lender’s (and possibly the attorney) being held in contempt of court. Furthermore, a foreclosure sale conducted in violation of the stay is void. Before proceeding with foreclosure the lender must either obtain a court order lifting the stay or wait until the finish otherwise terminates under 11 U.S.C.A §362.

6 California Civil Code 2823.6(a) states that “a servicer acts in the best interest of all parties if it agrees to or implements a loan modification where the (1) loan is in payment default, and (2) anticipated recovery under the loan modification or workout understanding exceeds the anticipated recovery through foreclosure on a net display value basis.” California Civil Code 2823.6(b) now provides “that the mortgagee, beneficiary, or authorized agent offer the borrower a loan modification or workout plan if such a modification or plan is consistent with its contractual or other authority.”

7 397 Mass. 479; 492 N.E.2d 92; 1986 Mass. LEXIS 1291

8 42 F.3d 1206, *; 1994 U.S. App. LEXIS 34123, **; 94 Cal. Daily Op. Service 9295; 94 Daily Journal DAR 17208

9 “For purposes of this subsection, a qualified written interrogate shall be a written correspondence, other than peek on a payment coupon or other payment medium supplied by the servicer, that–(i) includes, or otherwise enables the servicer to identify, the name and account of the borrower; and(ii) includes a statement of the reasons for the belief of the borrower, to the extent applicable, that the legend is in error or provides sufficient detail to the servicer regarding other information sought by the borrower.” (12 U.S.C 2605 (e)(1)(B)).

10 Better Business Bureau, describe # unknown, author unknown, submitted March, 2009.

11 Bifurcation. Webster’s Dictionary, Merriam-Webster 11th Edition (2007).

They are even more vexed by the preposterous idea that some highly paid strangers sitting in Manhattan’s high rise offices were surreptitiously able to make telephonic contracts worth billions with accomplices hiding in offshore money laundering havens – all guaranteed on the humble mortgage payments of a few hundreds they were making to their neighborhood banks.

As if that ignominy is not enough, now their money is to be used to compensate for such speculative misadventures of not only American investment banks but of whoever bought into those dubious schemes from beyond the oceans too.

No wonder the European Central Bank’s (ECB) chief Trichet wants the American Congress to pass the bailout bill “for the sake of the U.S. and for the sake of global finance.” But, he also rules out a European bailout plan on the excuse that Europe doesn’t have a central budget. Then, what is the job of the organization ECB he is heading? The truth is that Germany and France are torpedoing a 300 bln euro plan suggested by other members of EU.

Economic Data:

Institute for Supply Management’s (ISM) Manufacturing Index for September – fell by 6.4 to 43.5 from 49.9, the lowest in seven years. The consensus was for 49.5. ISM prices paid excluding extreme oil fell by 23.5 to 53.5 against a consensus figure of 73. The first reading shows that manufacturing activity is contracting. The second indicates that people have made a sharp cut assist in spending on purchases, though some may claim it shows inflation is disappearing! However, if prices were easing, people should be buying more.

The ADP employment index of private sector jobs for September – showed a loss of 8000 jobs in the private non-farm sector against the forecast of 60,000-job loss. It was 37,000 in August. Unfortunately, ADPs figures usually are far off the mark compared to government employment report on non-farm payrolls data to be announced on Friday.

Challenger Jobless Report – at the same time, announced 95,094 layoffs during that period.

The U.S. Census Bureau’s (Department of Commerce) Construction Spending for August – stood unchanged at $1,072 billion against a forecast figure of 0.5%. That shows a halt, even if temporary, in the relentless slide witnessed throughout 2008.

The Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey – showed a 23% drop last week. The refinance index also fell 34.7%. The Conventional Choose Index decreased 9.7 percent while the Government Purchase Index decreased 14.1 percent. This entire shortfall, despite interests on 30-year and 15-year fixed-rate mortgages decreasing week by week!

Senate’s deliberations on the bailout:

Senate voted on its version of the $700 bln plan this evening. Salient clauses include:
*provisions for an increase in the FDIC’s deposit insurance limit to $250,000 from the present $100,000
*tax breaks for businesses and especially to alternative energy ventures
*Removal of $30 bln limit on FDIC enabling it to borrow an unlimited funds from the Treasury
*authorized the Treasury Secretary to select bad assets of companies to elegant up their account books
*requires government agencies to make modifications to disquieted mortgages.

The bill now goes to the House of Representatives for their concurrence, expected by Friday.

SEC ban on short sales is likely to be extended to October 18, beyond the current expiration on October 2.

Weekly EIA petroleum reserves report – Crude oil inventories were up by 4.28 mln barrels far exceeding the forecast of 2.75 mln. Gasoline reserves increased by 901,000 against a consensus shortfall of -2.05 mln.

Oil retreated by -$2.11 (-2.10%) to $98.53

Gold rose by $6.50 (0.74%) to $887.30

CBOE Volatility just made it to 39.81, shy of the 40 mark by 0.42.

Uncertainty over stocks back in the air, investors again made a beeline for Treasury securities.

Market indices

Dow went UP by -19.59 (-0.18%) to 10831.07
S&P 500 UP by -3.68 (-0.32%) to 1161.06
Nasdaq UP by -22.48 (-1.09%) to 2069.40

NYSE

Daily Volume: 1.29 bln
A/D Ratio: 1591 stocks advanced against 1614 declined
52-week Hi/Lo: 10 stocks scaled new Highs while 191 slid new Lows

NASDAQ

Daily Volume: 1.91 bln
A/D Ratio: 1068 stocks advanced against 1820 declined
52-week Hi/Lo: 7 stocks achieved new Highs while 153 dipped to new Lows

The first half of the trading session saw the market falling due to uncertainty surrounding the bailout legislation and the negative economic data. Then came the news on GE in quick succession and pepped the market up disappointing manufacturing reading and news that Warren Buffett is making another major investment.

Trading in GE was temporarily halted as the news of their $12 bln in a public offering started coming in. Then came the encouraging news of Warren Buffet’s purchase of $3 bln worth of 10% preferred stock. His holding company Berkshire Hathaway (BRK) also have rights to $3 bln in 5-year warrants to purchase GE at $22.25 per share.

Then the market heard the “Oracle’s prophesies” on GE’s pleasant prospects. This was added to by the credit rating agency Standard & Poor’s who re-affirmed GE’s credit rating of AAA.

That was the shot in the arm the market needed. GE was languishing recently due to liabilities from the debts of GE Capital.

Still blue chip IBM (IBM) fell by more than 6% based on rumors of the company issuing further reduced guidance on its earnings.

President Bush finally approved the $25 bln loan package for automobile manufacturers for meeting the new fuel economy standards. Now the ball passes to the Energy Department to work out the rules and regulations to be presented to the Congress sometimes next year for approval.

Monthly sales of car-makers are declining:

Lexus -37%
Ford -35%
Toyota -32%
Hyundai -25%
Honda -24%
GM -16%

ImClone (IMCL) finally revealed the name of its mysterious bidder. It is Eli Lilly with a $6+ bln offer on ImClone @$70 per share.

JNJ won their $1.2 bln patent infringement cases against Boston Scientific (BSX) and Medtronic (MDT).

Marathon Oil (MRO) is disposing off its 50% stake in Pilot Travel Centers.

Xstrata (XSRAF) is ending its $9 bln bid on Lonmin Plc (LNMI.Y).

Chicago’s Midway airport is to be leased to a private consortium led by Citigroup (C) for a 99-year period .

When most businesses are looking for ways to downsize, consumer retailer Kohl’s Corporation (KSS) is opening 47 new stores in addition to the 31 already opened this year.

Company results:

Wolverine World Wide could bring out 15% increased earnings.

Micron Technology (MU) earnings were disappointing.

Analyst’s ratings:

Company stocks upgraded include:

Allied Capital Corp (ALD), CA Inc (CA), Children’s Place Retail (PLCE), eHealth Inc (EHTH), Energy Solutions Inc (ES),
F5 Networks Inc (FFIV), Force Protection Inc(FRPT) and Informatica Corp (INFA).

Downgraded stocks are:

Brown Shoe Inc (BWS), California Pizza Kitchen (CPKI), Coleman Cable Inc (CCIX), Community Health System (CYH),
CSG Systems International (CSGS), Mortons Restaurant (MRT), Network Engines Inc (NENG), RC2 Corporation (RCRC),
Reliant Energy Inc (RRI), RLI Corp (RLI), Ruth’S Hospitality Group (RUTH), Tenet Healthcare Corp (THC), Tupperware Corp (TUP),
Universal Health Services (UHS) and Xyratex Ltd (XRTX).

Fortunately for the banks and their customers, the 28-day repo funding by the government is showing its beneficial effect:
The interbank overnight loan rate has fallen to 3.79% and is holding. Availability of more funds has loosened the credit situation a bit.

Pointers to the future:

* The U.S. national debt broke through the $10 tln mark today.

* Unemployment is expected to touch 7% by the middle of next year, unless the next administration can work magic or miracles.

Everyone, it seems, guarantees that they will attach you money on your current insurance rates. Geico promises 15% or more, Progressive promises to compare quotes for you to find you the best rate; Allstate promises “you will keep more”; State Farm promises the “best rates”; and the list continues on. Undoubtedly, all these companies, and many others, honestly are interested in saving you money, they want your business and in order to get your business they have to be competitive in their pricing.

Nevertheless, almost all these companies’ websites use fairly generic information forms when generating your car insurance quotes. These estimated quotes are often much higher than what they would be if you where to actually visit these agencies in person or swear with an agent. These is because local insurance agents also want your business, often more so than a national company, and are aware of the prices online and are likely to be wiling to do whatever they can to beat any online price you may find. A good example of this is my experience with Allstate.

When I entered my information into Allstate’s online quote estimator the estimate was unbiased over $1000 every six months or $180 a month. My wife and I have two cars, and have totaled one with in the last year, and have been in three other accidents (it has been a banner year). However, when I went into a local Allstate agent’s office he quoted me an insurance premium which was much less: $790 for six months or $132.38 a month. I was surprised at the difference. This may not always be the case, but often is. If you are truly looking for the best auto insurance rate available to you it would be worth your while to devote at least half of your looking efforts towards local agencies. Sometimes the best deals are with local car insurance agents who sell for a larger national company.