Why do you have to have a good credit score to open a ING Direct checking Account?

ING Direct, like so many other banks that have found ways to make money on banking customers directly despite complaints, ties every single checking account to an Overdraft Protection Plan, ergo they automatically open up a credit account for you when you establish a checking account and WILL NOT provide you with an account if you have bad credit.

What Happens if I apply for an ING Direct Checking Account and I do not have stellar credit?

You will probably get a message like this denying you the option to save money with ING Direct.  Bottom line, they can’t make money off of you through their normal interest charges and banking fees from Overdraft protection.

Thank you for applying for Electric Orange. As you may know, Electric Orange includes two important components, an electronic checking account and an Overdraft Line of Credit. Unfortunately, we’re unable to extend the Overdraft Line of Credit to you due to information received from an outside credit reporting agency. The Overdraft Line of Credit is a necessary feature of our electronic checking account and it’s not possible to have one without the other. Because you are ineligible for the Overdraft Line of Credit, you cannot open Electric Orange. You will receive an email with detailed information about this decision shortly.

If your credit status changes, please feel free to apply again. If you have a security freeze on your credit file, our email will provide instructions for requesting another account eligibility review.  – Source ING Direct during Checking Account Application Process

Online Only Banks Missing the Boat in a new Recession Based Economy

ING Direct like many other online only banks launched in the midst of the internet bubble which was rapidly followed by the build up the real estate bubble.  Convenience was an important feature of the bank at a time when many brick and mortar banks still had not figured out how to do much of anything useful online.

They attempted to eliminate traditional fees while making their money from non-traditional fees like overdraft charges, a tactic that is now drawing a great deal of overdraft complaints and finally scrutiny from Congress and Federal Reserve Regulators as they look at predatory consumer lending practices in the banking industry.

The problem here is that there are now millions of Americans that would have been a substantial part of ING Direct and other banks target market, who have upside down mortgages and credit that is far from stellar any more, even though they still have many good prospects in their future financially.

ING Direct has also drawn complaints for closing existing accounts when the spoils of overdraft credit charges and other interest related Opportunities have evaporate for customers who face credit difficulties.

Recommendation – Focus on Banks that Charge Transparent Fees

Stay away from this bank!  Yes, they may provide convenience but their business model is still built on making money from banking business practices that are considered questionable during the current recession and may even come under Congressional targets not to mention potential legal assaults from classes of borrowers and savers around the country.

Instead look for a bank that offers a transparent set of charges and fees that directly illustrate the banks own stability on the bottom line of their own Profit and Loss statement.  If they can’t operate profitably from your loyal business in a transparent fashion then odds are they are trying or succeeding to rip you off when you don’t know it!

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Foreclosure the legal proceedings initiated by a creditor to repossess the collateral for loan that is in default. In the case of a home mortgage, mortgage lenders will start foreclosure processes about three to six months after the first missed mortgage payment. In Oregon, a legal proceeding is required, in which the home owner is required to appear in court. If the borrower does not appear, the lender obtains a judgment assigning the title of the property back to the lender. The lender can then obtain an order requiring the home owner to vacate the property. After the lender takes possession of the property, they can try to sell the house at fair market value. The difference between the sale price and the balance of the loan is called a deficiency, and the lender can sue the home owner for the deficiency.

When you file either a petition for bankruptcy under either Chapter 7 (also known as “liquidation” or “total discharge”) or Chapter 13 bankruptcy (also called “wage earner repayment plan”), the court automatically issues an order, called the Order for Relief. Under the order for relief, and the Bankruptcy Code, the debtor is protected by the “automatic stay.” The automatic stay requires your creditors to cease their collection activities immediately. If you are currently engaged in a foreclosure proceeding, the proceeding will be stayed or suspended. If your home is scheduled for a foreclosure sale, the sale will be legally postponed while the bankruptcy is pending. However, the lender may come into court and request that the Bankruptcy Judge lift the automatic stay to permit the foreclosure to go forward. A bankruptcy attorney can advise you on what to do if this happens.

Foreclosures under Chapter 13 Bankruptcy

In a Chapter 13 bankruptcy, the court enters an order creating a repayment program. The Plan lets the debtor pay off the arrearage, including late payments over the length of a repayment plan, usually three to five years in some cases. The benefit of filing for Chapter 13 bankruptcy is that the home owner gets to keep their home and get current on the mortgage over time.

A Chapter 13 bankruptcy may also help you eliminate the payments on your second or third mortgage altogether. Unlike your first mortgage, which is secured by the property and the value of the property, you may no longer have any equity with which to secure the subordinate mortgages. Under those circumstances, the court may “strip off” the second and third mortgages and recategorize them as unsecured debt. Under Chapter 13 of the bankruptcy code, unsecuritized debt takes last priority and often does not have to be paid back at all.

Foreclosures under Chapter 7 Bankruptcy

If you do not have sufficient income after your bankruptcy to qualify for a repayment plan, it may be necessary to petition for a total liquidation under Chapter 7. If you are not able to afford your mortgage payment after your bankruptcy (for example in the case of death, divorce, or long-term unemployment), the debtor can surrender the property back to the lender. If you are filing for Chapter 7 bankruptcy, the final discharge order will at least discharge the debt, including the deficiency. In some cases, it is possible to reaffirm a mortgage, but at the close of the bankruptcy case, the debtor must immediately get current on the arrearage, including late payments and charges; otherwise the lender can start a new foreclosure proceeding.

Justin M. Baxter
Baxter & Baxter, LLP
Portland, Oregon
(503) 297-9031

http://www.baxterlaw.com

Author: Justin Baxter
Article Source: EzineArticles.com

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With collectors getting access to not only home and work number but also cell phone numbers, the calls can seem to come at 15 minute intervals all day long.  This ironically makes it very difficult to get any work done, find a job, drum up new business or even think straight.

Fortunately, Google Voice can provide you with a service that is possibly the next best thing to hiring a lawyer to chase the collectors away.

All you have to do is set up your phone numbers in Google Voice.  Then you add the phone numbers of collectors into your Google Contacts list and set each of these numbers to go directly to your Google Voice Voicemail and if you like you can even have any message (if they actually leave a message) transcribed automatically into text and emailed to you.

Not only do you have a perfect record of every single collections call, but you have transcripts and a recorded voice file as well.

This is even better if you HAVE already hired a lawyer and are in the process of filing bankruptcy.  If collectors have not stopped calling you as required, this becomes a means of documenting their misdeeds systematically and without any additional effort on your part.

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Stimulus will kick in this year – Obama

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Source: Stimulus will kick in this year – Obama

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Banks could shortchange taxpayers

The Treasury Department is at risk of short-changing taxpayers by not collecting enough from banks trying to get out from under the government’s thumb, according to a panel that watches over the federal bailout program.

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Trade gap narrows to smallest in a decade

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HUD urges families receiving disaster housing assistance
to apply for rental vouchers

WASHINGTON – The U.S. Department of Housing and Urban Development (HUD) is urging families still receiving Katrina/Rita transitional housing assistance to contact HUD to ensure that they are considered for rental vouchers, which are not time limited. A toll-free number, 1-800-955-2232, has been set up to make the process as easy as possible.

Source: http://www.hud.gov/news/release.cfm?content=pr09-115.cfm

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Secretary Donovan awards over a billion dollars in Recovery Act Funding to prevent homelessness across the country

WASHINGTON – U.S. Housing and Urban Development Secretary Shaun Donovan today awarded $1.2 billion to over 400 communities across the nation to rapidly re-house families who fall into homelessness, or prevent them from becoming homeless in the first place. The funding is provided through the American Recovery and Reinvestment Act of 2009 to help persons and families facing a sudden financial crisis that could lead to homelessness. To view the list of grantees receiving funding under this round of grants, visit HUD’s Recovery Act website.

Source: http://www.hud.gov/news/release.cfm?content=pr09-113.cfm

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