How Large Should The Concessions Be From UAW To Help The Automakers Receive Bridge Loans?
Nov 23, 2008 by Wrenched | Posted in Current Events
Congress wants concessions from the auto manufacture before providing any bridge loans. Being discussed are auto industry executive compensation package concessions, UAW executives and application concessions, UAW (Union) wage, pension and health care concessions, retooling to create green vehicles (would these be GEM Flex?) among others.
If the automakers were to fail or go into bankruptcy the auto executives and UAW executives would use up the incomes they have, they should they protect their jobs by protecting the rank and file, those that produce the products and profits.
What revenues and compensation concessions should the company executives have to agree to, to protect the companies they bring?
What concessions in compensation should the UAW executives and administration have to agree to?
How much of the burden should the workers tote?
Shouldn't the rank and file that makes the products that produces the profit be protected from the the sea cuts while the executives and administrative personnel (those that don't produce anything) tighten their budgets?
to suit your question...HUGE! From the UAW bolt and screw picker to the CEO.
FORBES MAGAZINE:
Labor bring in per hour, wages and benefits for hourly workers, 2006.
Ford: $70.51 ($141,020 per year)
GM: $73.26 ($146,520 per year)
Chrysler: $75.86 ($151,720 per year)
Toyota, Honda, Nissan (in U.S.): $48.00 ($96,000 per year)
but its too most recent to save, its time to Eliminate and Rebuild.
How Costly Are Bridge (or Swing) Loans? Would I Be Better Off Taking A Low-ball Offer For My House Or Waiting?
Jul 14, 2007 by homerhomersimpson | Posted in Renting & Real Estate
We have a very low forth on our house, which we are still trying to negotiate. but the market has collapsed, and I worry that if we don't take the offer, we could get stuck. I have in mind we can get the buyer up a little, but it would still be 5-10 thousand off our "target" outlay.
Would selling for less still be better than potentially not selling and having to take out a bridge loan? I am having harass finding out the real cost of those loans.
You will fundamental to weigh the pro's and con's on this one, if you have not already done so. Take into consideration that a Bridge Loan will have 2-3,000.00 of closing costs associated with it, you will have a interest only payments after 6 months, so that is a additional payment ontop of your other debit.
But, Bridge Loans have saved the day for proficient in buyers in a pinch, but people looking for a "bridge loan to span the gap between the bargain-priced of an old home and the purchase of a new one should ask if the cost is worth it. Or if you could take out a HELOC (Home Equity Belt of Credit) on your present home, and put that money down on your new home. The closing costs on a HELOC is much stoop than on a Bridge Loan. Bridge Loans costs run between 2-3,000 depending on the amount of the loan.
Most Experts say people would be advance off staying put until they've unloaded their first residence. If that's impossible, they warn, be prepared to shoulder a important burden.
"There are many sad stories about homeowners who took bridge loans, and our best advice would be, 'Don't do it,' " says Richard Wind up, president of the American Homeowners Association in Stamford, Conn. "You can find yourself in a wholly untenable position, and you can lose your first house."
Terms can vary extensively
A tool used by movers in a bind, bridge loans vary widely in their terms, costs and conditions. Some are structured so they clearly pay off the old home's first mortgage at the bridge loan's closing, while others pile the new debt on top of the old. Borrowers also may run-in loans that deal differently with interest. Some carry monthly payments, while others require either up-front or end-of-the-term protrusion-sum interest payments.
Most share a handful of general characteristics though. They usually run for six month terms and are secured by the borrower's old home. A lender also hardly ever extends a bridge loan unless the borrower agrees to finance the new home's mortgage with the same sanatorium. As for rates, they accrue interest at anywhere from the prime rate to prime plus 2 percent.
For archetype, One Bridge loan would total $70,000 on a customer's old $100,000 home with $50,000 in mortgage in arrears outstanding, Of that, $50,000 would go toward the old house's lien and a few thousand would cover the bridge loan's closing costs, origination charges and fees, leaving the purchaser with about $16,000 for the new home's down payment, closing costs and fees.
This example helps to show how the loaded fees associated with bridge loans can cause problems. A person for example, would end up paying between $2,000 and $3,000 for closing on the bridge lend, 1.5 percent to 2 percent of its value for an origination fee, and another couple thousand dollars for closing on the new domestic's mortgage.
What if the sale goes sour?
Real estate market risks can exacerbate the peril. For example, some lenders are usually willing to extend bridge loans slightly beyond the standard six months. But what happens to a homeowner who gets the financing and magnitude, so the old home's buyer can have a little more time, only to see the transaction fall through?
"Let's say they demand some of that money to buy their new house, so it's predicated on selling their old house. "What happens if they don't blow the whistle on that house, or if the buyer doesn't get financing?" In such a case, the lender could go as far as to foreclose on the old estate after the bridge loan extensions expired, or a customer could deed the property to the bank, which would retail it and apply the proceeds toward paying off the loan.
Consider other options
For those trying to gird away from bridge financing, borrowing against a 401(k) plan or taking out loans secured by stocks, bonds or other assets are options. Some lenders also present oneself hybrid mortgage products that behave similarly to bridge loans.
Total debt climbs
Whether a homeowner takes a bridge loan or a cross stand-in, or a HELOC however, a significant amount of new debt will end up being added to the pile.
But even though they aren't the most beneficent deal, bridge loans or other short-term mortgage financing products may be necessary when nursing home buyers land in tight spots, lenders say. There will always be people relocating for trade without much advance notice, trying to keep others from beating them to the punch on a property, or needing stop with the expensive up-front costs of buying a new home before their old one sells.
"It's a way for the customer to get into that hospice without having to go through all the gyrations of trying to get cash for a down payment,"
Bridge loans nevertheless remain comparatively obscure in a lending landscape dominated by more widely publicized home disinterest loans and lines of credit.
Types Of Lenders: Bridge Loans may be given by Funding Companies, Ancestral Banks, or Commercial Bank and Credit Companies.
Recap:
Typically a bridge advance is structured as a one year loan. The bridge loan pays off the buyers first house with the surviving funds, minus closing costs and six months of interest, going toward the down payment for the new building.
If after six months the first house has not sold, the buyer will begin making interest-only payments on the bridge credit. When the first house sells, the bridge loan is paid-off. If the old house sells within the first six months, any unearned interest payments will be credited to the client.
This is the typical bridge loan scenario for most buyers. In some cases a buyer may qualify for a bridge credit that simply adds the cost of their new house to their current debt.
A bridge loan can domestics you make a competitive offer on a property even though your first house has yet to sell.
Does Anyone Know Private Investors Or Companies That Do Bridge Loans?
Jul 10, 2008 by Angel20 | Posted in Other - Business & Finance
I difficulty a company or investor to fund a very short term business loan. If you have any counsel let me know. I am trying to cut out a lot of red tape at the bank and time.
Try http://www.breadstreetinc.com . Placement has listings of private investors, angel capital and venture capital groups.
Feb 20, 2010 from Ify
New blog post: BRIDGE LOANS BRIDGING THE GAP REAL ESTATE BRIDGE
Texas Hard Money & Private Money Bridge Loans Are Available
by jworld
Invited to MortgageBrokerLand.com , an online community for the mortgage application where you can enter mortgage brokers, wholesale lenders, hero providers, and other toil professionals in discussions in reference to today's mortgage subject. To gain ground full access to MortgageBrokerLand.com you must chronicle for a unfetter account. As a registered fellow you will be accomplished to: Appoint allowance scenarios for assessment by wholesale account executives and other mortgage brokers Reach privately with other members around the territory Determine your community noted to take edge of unencumbered offers from assistance providers All this and more is handy to you when you reflect for a unchained account. So sign up for up today !
Bridge loan - Wikipedia, the free encyclopedia
A bridge allow (usually bridging loan in the United Kingdom, also ... A bridge loan is interim financing for an own or business until permanent or the ...
Bridge Loans
Bridge loans from seven hundred bizarre commercial property lenders, ... A bridge loan is defined as a short-an understanding real estate loan that gives the property owner ...
to suit your question...HUGE! From the UAW bolt and screw picker to the CEO.
New blog post: BRIDGE LOANS BRIDGING THE GAP REAL ESTATE BRIDGE 