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FIRST-TIME PURCHASERS GET A TAX CREDIT WINDFALL IF THEY BUY BEFORE DECEMBER 2009

2009-04-16T15:44:00.002-04:00

By Les Christie, CNNMoney.com staff writer
Last Updated: February 17, 2009: 12:13 PM ET
NEW YORK (CNNMoney.com) -- There's a nice windfall for some homebuyers in the economic stimulus bill awaiting President Obama's signature on Tuesday. First-time buyers can claim a credit worth $8,000 - or 10% of the home's value, whichever is less - on their 2008 or 2009 taxes.
A big plus is that the credit is refundable, meaning tax filers see a refund of the full $8,000 even if their total tax bill - the amount of witholding they paid during the year plus anything extra they had to pony up when they filed their returns - was less than that amount. But there has been a lot of confusion over this provision. Adam Billings of Knoxville, Tenn. wrote to CNNMoney.com asking:
"I will qualify as a first-time home buyer, and I am currently set to get a small tax refund for 2008. Does that mean if I purchased now that I would get an extra $8,000 added on top of my current refund?"
The short answer? Yes, Billings would get back the $8,000 plus what he'd overpaid. The long answer? It depends. Here are three scenarios:
Scenario 1: Your final tax liability is normally $6,000. You've had taxes withheld from every paycheck and at the end of the year you've paid Uncle Sam $6,000. Since you've already paid him all you owe, you get the entire $8,000 tax credit as a refund check.
Scenario 2: Your final tax liability is $6,000, but you've overpaid by $1,000 through your payroll witholding. Normally you would get a $1,000 refund check. In this scenario, you get $9,000, the $8,000 credit plus the $1,000 you overpaid.
Scenario 3: Your final tax liability is $6,000, but you've underpaid through your payroll witholding by $1,000. Normally, you would have to write the IRS a $1,000 check. This time, the first $1,000 of the tax credit pays your bill, and you get the remaining $7,000 as a refund.
To qualify for the credit, the purchase must be made between Jan. 1, 2009 and Nov. 30, 2009. Buyers may not have owned a home for the past three years to qualify as "first time" buyer. They must also live in the house for at least three years, or they will be obligated to pay back the credit.
Additionally, there are income restrictions: To qualify, buyers must make less than $75,000 for singles or $150,000 for couples. (Higher-income buyers may receive a partial credit.)
Applying for the credit will be easy - or at least as easy as doing your income taxes. Just claim it on your return. No other forms or papers have to be filed. Taxpayers who have already completed their returns can file amended returns for 2008 to claim the credit.
Lukewarm reception
The housing industry is somewhat pleased with the result because the stimulus plan improves on the current $7,500 tax credit, which was passed in July and was more of a low-interest loan than an actual credit. But the industry was also disappointed that Congress did not go even further and adopt the Senate's proposal of a $15,000 non-refundable credit for all homebuyers.
"[The Senate version] would have done a lot more to turn around the housing market," said Bernard Markstein, an economist and director of forecasting for the National Association of Homebuilders (NAHB). "We have a lot of reports of people who would be coming off the fence because of it."
Even so, the $8,000 credit will bring an additional 300,000 new homebuyers into the market, according to estimates by Lawrence Yun, chief economist for the National Association of Realtors.
The credit could also create a domino effect, he said, because each first-time homebuyer sale will lead to two more trade-up transactions down the line. "I think there are many homeowners who would be trading-up but they have had no buyers for their own homes," Yun said.
Who won't benefit, according to Mark Goldman, a real estate lecturer at San Diego State University, are those first-time homebuyers struggling to come up with down payments. The credit does not help get them over that hurdle - they still have to close the sale before claiming the bonus.
One state, Missouri, is trying to get around that problem by creating a short-term loan on the tax credit of up to $6,750. The state would loan borrowers the money so they could use it at closing as part of the downpayment. Then, when the buyers receive their tax credit from the IRS, they pay back the state. Other states may follow with similar programs, according to NAHB's Dietz.
Many may look at the tax credit as a discount on the home price, according to Yun. A $100,000 purchase effectively becomes a $92,000 one. That can reassure buyers apprehensive about purchasing and then watching prices continue falling, he added.
And it provides a nice nest egg for the often-difficult early years of homeownership, when unexpected repairs and expenses often crop up. Recipients could also use the money to buy new stuff for their home - a lawnmower, a rug, a sofa - and, in that way, help stimulate the economy.

Finding Good Deals in Real Estate

2009-02-20T17:13:00.001-05:00

A thriving real estate investor or retailer solves a lot of other people’s problems; that’s how you become successful. The more knowledge, ability, experience, contacts, and resources you have, the more solutions you can begin to offer people in solving their problems. In addition to this, you will be ahead of the pack if you can get people calling or coming to you with their specific problem first. That means you have to advertise the fact that you are in a position to help while being fair, trustworthy, and accurate in making quick decisions before the competition tries to persuade these people first.
For the above reason alone — competition — you will need to understand marketing. That means deciding on what you are going to specialize in, developing a method to define your target audience, and then attracting them with a well-written message using the different types of media to get the word out. That last paragraph brings up a good point: What exactly do you want to specialize in? Following are some categories from which to choose:Condos, vacation property
Single-family homes
Apartments for one to four families (residential duplex, triplex, fourplex)
Commercial— hotels/motels, strip malls, office complexes, mobile home parks, storage units, parking lots, garages, restaurants, stores, apartments for five or more families, and so forth
Industrial—factories, refineries, manufacturing plants, and so forth
Farms—commercial, industrial, or agricultural, depending on zoning
Raw land—lots, vacation, recreational, sub-dividable residential, commercial, industrial, agricultural, and special purpose
Special purpose—churches, schools, hospitals, power plants, theaters, sports arenas, golf courses, marinas, and so forthHere are some examples of how you might go about finding some good deals:Look at bulletin boards, local papers and small independent publications. This goes for every publication you get. Make sure you get one of the first copies off the press. Go to the facility that houses the presses and get your copy before the ink has a chance to dry. Let no one beat you to the punch. Better yet, advertise yourself and get people who are thinking about selling to call you before they actually tell the world through an ad.
Look at the legal section of the newspapers. Contact heirs and attorneys, and sales in the garage or estate sale sections. Also, 20 percent of people who have garage sales are planning on moving soon. Ask about their house or their neighbor’s homes. Always keep your antenna up! Your odds of success increase when you choose large population centers and remain in the market constantly on the lookout for your type of deal.
Look for vacant houses that are run down, fire damaged, or abandoned, with city notices evident. Talk to the neighbors of these homes. They usually know who owns it and what is going on. They have an interest in seeing it restored to beauty. It sure is a shame you can’t look in the mailbox to see who is receiving mail at the property in question—wouldn’t that be easy? Walk up to a property and look in a window to confirm that it is indeed vacant—but don’t endanger yourself by getting bit or shot! Use common sense. Contact out-of-state owners through property records or by letter and/or phone. Leave your cards on the door.
OREO stands for Other Real Estate Owned. Make friends with your local lenders and let them know you are the one to call when they have a foreclosure looming or in progress. Hint: If you prequalify with lenders beforehand, they may call you sooner.
Watch the local paper for foreclosure auctions, tax sales, and HUD and VA listed properties. Note: Auctions held in bad weather where the property absolutely must be sold are your best chance to limit competition and get property at rock-bottom prices. Because there is no low limit on what can be accepted (no reserve) you may win big.
Real estate agents are going to try to sell you something! When you approach them be very specific with them and tell them to call only if they have an absolute steal. Ask agents to give you those expired listings since they couldn’t sell them. Suggest a 2 percent commission if they will assist with closing the paperwork after you make the deal with the seller on your own.
Don’t be so selective. If the property is an absolute steal, lock it up and sell it to somebody who does like to work with that type of real estate. Get the option and hand it off to another buyer. Look for distressed sellers in addition to distressed property.
Post fliers everywhere—colleges, Laundromats, shopping centers, bowling alleys, public bulletin boards, churches, local businesses, wherever large numbers of people congregate. Give them a chance to give you a lead on a hot deal. (For example, print up cards that say “I pay $500 to you at closing if I buy a house that you told me about! Do you know anyone who is selling property? Please call [your name] at 555-1212.”) Print quality business cards.
Join organizations of all types. The sky is the limit. There are so many—just pick the ones that you would be interested in truly being a member in and let it be known you pay bounties for consummated (closed) deals.
When you use headhunters, leave out no one. Property managers, moving companies, relocation services, neighbors, landlords, tenants, the mailman, the paper boy, gardeners, landscapers, service technicians, pest control people, friends, acquaintances, relatives, and other investors. You name it!
Everyone should know they can make $500 if you end up buying a property they tell you about. Enlist your army! Give each of your soldier’s stacks of your cards for exponential growth.
A special note: Water, gas, and electric company personnel who shut off utility meters can be very good bird dogs when it comes to finding property that is in trouble or vacant. Make sure they have your cards.
Have at least 10,000 business cards printed with your offer of the $500 bounty and hand them out in stacks to everyone you can. As you grow, you might consider TV, radio, phone books, billboards, street benches, bumper stickers, and bigger commissions. Use your imagination.
Put up signs telling people you buy real estate.
Make multiple lowball offers on overpriced properties and walk away. Don’t deposit earnest money but they may stew on your offer and call you a month later accepting your deal. Leave the offer with them.
Older people should not be left out. They are very valuable informants. They know everything and need people to talk to! Listen to them. Go to free seminars on real estate. Do this not only to learn about real estate but also to capture names and circulate among real estate–minded people. Once you have their names, call your own club meeting and network to prosperity. Find your mentor here.
Go to where people are buying those “by owner” signs. Ask them what they are selling. Follow them home and get the first look! Be first or lose the deal.
Try offering 15 percent less than what you intend on paying. You never know; they may accept it. If they don’t, you can still negotiate up to 15 percent more and get it for what you originally were willing to pay. If it’s any higher, walk away but leave the offer on the table (the offer stands).
Make your offer easy for the seller to understand. Get the option to buy but use a contingency to protect yourself. Iron out the details later but lock it up now!
Buy from sellers who tend not to care: seized, foreclosed, tax sales, corporations, nonprofits, disinterested heirs, probate attorneys, and private auctions.
Try just helping someone to sell his or her property even if you don’t want it. Be a friend and offer to help for nothing in return. You will be amazed at what happens when you sincerely try to help with no thought in mind of making money. This is a magic bullet in disguise.Those are some of the basics of advertising and finding the opportunities to buy real estate below market. The old saying goes: You make your profit when you buy, not when you sell. (20 percent off retail, minimum).

Real Estate Agents- How to get Noticed

2009-02-16T17:26:00.001-05:00

What is the key to getting noticed, being remembered, and getting referrals? It’s simple actually, the answer is building strong, lasting client relationships. The most effective way to do this is by keeping in constant contact with them and leaving a gift behind to remind them of you later. A phrase used for this type of self advertising is “Pop By”. You want to Pop By clients, old and new, on a regular basis.
And it doesn’t matter which market you find yourself in. If it’s booming, you need to keep in constant contact with all your many clients and hit the pavement to get those FSBOs in your trusted hands. When it’s a slow, dragging market, you need spend a lot of time building long lasting relationships with the few clients you have at the time so they think of you every time hear of a friend who wants to sell. And you need to hit the pavement and gobble up those listings that have expired. After all, who wants to be sitting at the office making cold calls all day? Every agent’s dream is to be working completely by referral. And this is done by keeping in constant communication with your clients and building new relationships with their referrals.
So what’s the best way to do this simple key thing? The answer is simple and FUN! The most effective way to do the above is by quickly stopping by and bringing the client, or prospective client, a small personalized gift that can be left behind to remind them of who you are. The main point is for this gift to be personalize with your contact information. This doesn’t necessarily mean you have to purchase the minimum of 300 letter openers (as cool as they are) with your logo painted on them. You can do this much more economically, creatively and with a lot more flexibility by creating your own tags or putting your business card with the gift.
So start a campaign! Whether it’s gobbling up those expireds, getting the latest FSBOS to trust in you, or keeping your past clients within arms reach, you need to start a campaign that’s all your own. Use gifts that are small, inexpensive and something you can easily personalize by attaching a tag or business card. Another key point to this style of gift is to add a smart, witty tag line so the client actually remembers what they read. You can make cookies and write “I’ve got the recipe to your success.” This is a concept advocated by some major business coaching companies here in the states.
Are you going to focus on gobbling up those expired listings? Search the MLS every morning to grab that listing that expired at 11:59pm last night. Be at their door hours after it has expired and represent them before anyone else get’s the opportunity. For expired you want to bring an item that’s not too pricy – you don’t want to invest too much in someone that might close the door on you. But is definitely something to break the ice when you randomly show up on their door step. Something that catches their attention and/or entertains them. I have a client that gives little miniature flash lights to all her expireds and “Spot Lights” their home to get it sold. Another clients using little tool shaped candies to say that she has “all the right tools to get the job done.”Some key points:
Have you already branded yourself? Pick gifts that highlight your brand. Use several different “levels” of gifts. Have smaller, less expensive gifts for lower priority clients and nicer slightly more expensive gifts for your A clients. Bring gifts specifically for your clients children or pets. When the clients sees that you have paid attention and know about their family and personal life, they are more willing to trust in you and take you in as part of that life. Specify it to the season or holidays. Halloween, Thanksgiving and Christmas make this type of marketing great fun. Get creative and have fun! Point being, spend some time building a brand and hitting the pavement to really get to know your clients. Besides, sitting in the office simply calling to say hi get’s really boring. So get creative, get out there, and get busy!

The Do's and Don'ts of Short Sales

2009-02-04T14:54:00.001-05:00

It is a veritable alphabet soup of language out there relative to distressed sellers’ properties. There are foreign-sounding terms, made-up jargon, rules, policies, procedures; blah, blah, blah. No matter who you might happen to speak with, they know someone who knows someone who is an “expert” at handling one or all parts of the distressed properties’ options.
Well, to paraphrase the Trojans, beware of Greeks bearing gifts-especially when the gift bearers are claiming to be experts within a market segment fraught with pitfalls and legalities at every turn. Many are dilatants, few are experts. Rick Cowle (rcowlelaw@comcast.net), a highly experienced attorney who has handled hundreds of bankruptcies, short sales, foreclosures and mortgage modifications, is an expert. When Cowle speaks, he has experience, credibility and expertise on his side. His advice and counsel are sought by other attorneys new to “distressed property” issues.
MBS: Rick, you and I have worked with REO (real estate owned) properties and with sellers in all phases of foreclosure in the past. We’ve seen markets deal with the onslaught of short sales and foreclosures 15 years ago, but nothing comes close to what we are seeing today. The volume and rapidity of the properties cropping up is unparalleled. What advice do you have for the agents out there struggling to assist people fraught with problems?
RC: While it may be easier said than done, it is important to consult an expert. There are resources out there available to the public such as the Housing and Urban Development website, free credit counseling services, attorneys with extensive experience with distressed seller issues, etc. It is even possible to use Google to find attorneys who advertise their credentials as distressed property experts. The thing never to do is to give advice or guidance when you are not qualified to do so. Taking a three-hour short-sale class does not make one an expert on giving advice on the short-sale process. However, there is much that an agent can do in concert with an attorney. I always advise agents to help the seller find an attorney before they do anything else.
MBS: Sellers who are in financial distress fear that they cannot afford an attorney to assist them. They often simply “ignore” bank delinquency notices because they believe they are powerless to help themselves. Presented with such a scenario, what do you recommend?
RC: While I cannot speak for all attorneys, I know that many, myself included, have plans that take into consideration the sellers’ current financial realities and allow for ways to navigate the process with little or perhaps no attorney fees upfront. There are cases where attorney fees can be billed to and paid by the financial institution holding the lien. This is one part of the negotiable issues to be worked out. The ultimate cost to the seller can be far more damaging by non-action than by researching all options. If the agent plays a part in being a resource to the consumer, they indeed have value. Knowing what to do is less important than knowing what is available to help the consumer and guiding them to those resources. Just helping sellers to know what questions to ask or where to begin the process is invaluable.
MBS: It is no secret that even when sellers, or agents they have authorized to do so, try to contact the bank(s) in question, there is no guarantee that they will make any progress getting to the right people to help. It can feel like a black hole, and the level of frustration felt by everyone is enough to cause ulcers. What’s the right way to handle these roadblocks?
RC: There is no one answer that is right. Getting to the right people in the right departments is key in possibly preventing foreclosure. It is not going to be the mortgage department that will facilitate the process. The right department may be called asset recovery, loss mitigation, workout or something else. In addition, each lender will have its own paperwork requirements. Getting that package from the bank and completing the required documents is essential to even being heard. By hiring an experienced negotiator who works with most, if not all, major national banks, he/she will know what is required by that bank in advance and has forms on file for the sellers use. By knowing how to complete the necessary forms and doing so in a timely fashion, it could shorten the process for short sale approval by perhaps months.
MBS: What is a short sale for those readers who may be new to this?
RC: When the sellers owe more on their mortgage(s) than the value of their home, the sellers are in a shortage situation if they decide to sell. There will not be enough money to pay off the loan(s). The seller would need to come to the table with proceeds to satisfy the lien(s). That is not the same as being able to justify a short sale where the bank determines that the seller is worthy to be allowed to sell the home at less than the outstanding lien(s), and the bank will accept as their loss the shortage. In order to be considered for short-sale eligibility one would have to have a hardship such as divorce, medical expenses, job loss, death of family member or some similar life catastrophic situation. In addition, the sellers’ expenses must exceed his/her/their assets/income, they are behind on their payments and have no way to repay the bank. Simply owing more than the home is worth yet wanting to sell regardless of a lack of hardship is not a reason to apply for a short sale.
MBS: Let’s assume there is a hardship as stated above. What is the process for the agent/seller to follow?
RC: “List the property at a price based on a detailed market analysis. The agent needs to be sure that they make other agents in the MLS aware that it is a possible short sale and that ‘all transactions including the amount of compensation, are subject to bank’s approval.’ The fact is that even if a home is listed at market value and a buyer comes along and makes an offer commensurate with that value, the bank may not accept the sale. There are cases where the bank’s price opinion may be higher than the offer on the table, and the bank may counter or refuse the offer if it does not conform to what they believe is accurate. I often suggest that the agent take a video of the home to truly document condition as some appraisals are done without a full walk through. Without documentation it may be difficult to make the case to the bank about why the home is not worth what the bank’s appraiser determined. Agents should always meet the bank’s appraiser at the property and provide them with comps. They may not use the agent’s comps, but the documentation could come in very handy if a conflict ensues. This is not to be taken as gospel that any bank will debate with either an agent or an attorney. Some will, others will not.
MBS: What are the banks looking for relative to a buyer’s qualifications?
RC: In the vast majority of the time, the bank does not want to negotiate contingencies. Buyers who have another sale pending and need the proceeds from that sale in order to close on the next purchase are not likely to be considered. Banks take a dim view of buyers requesting concessions. Sales are always as is with no repair credits, except under very, very rare instances. While buyers can have inspections done, it is for their consideration only and not for negotiating any issues that may surface. I had an incidence where during the processing of the short sale, the house suffered a freeze-up. I went back to the bank and renegotiated for the purchasers. We had to document the problems and estimate the cost of repair. That is the kind of rare occurrence I would consider presenting to the bank.
MBS: Are there some red flags that agents should be aware of before venturing into helping a distressed seller?
RC: Sellers need to be very cooperative with the agent and whoever else enters the process. Couples involved in a divorce and at odds with each other can present insurmountable challenges when it comes to being responsive and getting all documentation in the hands of the right people. The sellers must also be willing to do the required paperwork. This is time consuming and detailed. Anyone who won’t ‘dig out’ what is needed as proof of the claims being made are wasting everyone’s time. There are also transfer documents that require signatures. Once again, if there is more than one seller, and the two or more are not likeminded, raise the red flag and be sure the problems are cured before approaching the bank with an offer. We hear about short sales taking up wards of a year plus. That is usually because of problems with issues such as referenced above. Well prepared and cooperative sellers make both the attorney’s and agent’s jobs much easier.
MBS: Often homes will have more than one lien holder. In such instances, what happens when trying to process a short sale?
RC: I have had about a 90% success rate working through this very issue. I know that the high rate of success is due to being very familiar with the lien release process and how to approach banks relative to why taking the sale is in their best interest. It is often a delicate balancing act fraught with lots of back and forth negotiating. I would say that it would be nearly impossible to accomplish without the skills of a very experienced negotiator working on the sellers’ behalf.
MBS: What upcoming trends do you see within this segment of the business?
RC: Lack of knowledge on the real estate practitioner’s part while the number of distressed sellers continues to grow, will only exacerbate the challenges of getting these properties sold rather than in foreclosure. Banks are not yet geared up for the breadth and depth of the problems, and many sellers are falling between the cracks who could otherwise have been helped. The market will soon be flooded with REOs as these homes process through the banks’ systems after the foreclosure process. Agents want to work this segment of the market yet few understand the breadth and depth of what is required and the time commitment. Banks need educated agents for REO listings.
MBS: Having managed and processed hundreds of REO properties, I could not agree more. As matter of fact, errors and omissions companies are now concerned about indemnifying brokers who do not require their agents to clear all REO listings with the company prior to seeking them out. It is a very litigious, slippery slope. Banks require all kinds of guarantees and bonding for persons who work on their listings… not for the faint hearted for certain.
RC: I could not agree more. The more people understand the whole process from first delinquency on the mortgage through to the REO stage, the less likely they are to want to take it all on.
MBS: There are times when second lien holders, or even first, will ask the sellers to sign an unsecured promissory note for part of the shortage paid by the lender on the sellers’ part. When does that happen and how often?
RC: “If the lien holder(s) feel that there are assets forthcoming, they may take this step. We see this often with loans that are secured by PMI (private mortgage insurance). PMI companies are getting hit pretty hard with the number of bad loans that were secured by PMI and subsequently failed. They may try to recoup part of the indemnifying monies they’ve lay out if they feel there is a good chance to recoup part down the road.
MBS: There are so many other topics that we could explore at great length. Volumes have been written on the whole area of distressed sellers and properties. What would you say is the single most important thing an agent could do to help them help their sellers?
RC: Education, education, education. Read, take classes, join networking groups of like-minded practitioners, etc. We simply cannot know enough to help people who need good advice, guidance and support now more than ever!
MBS: Amen to that!

Miami-Dade to buy up bank-owned homes

2008-11-05T16:57:00.000-05:00

Miami-Dade to buy up bank-owned homes
(borrowed from the Miami Herald)
FORECLOSURESMiami-Dade to buy up bank-owned homesMiami-Dade County has devised a plan to buy up property with $62.2 million it received in federal grants to stem blight caused by foreclosures.BY MONICA HATCHERmhatcher@MiamiHerald.com To stabilize local neighborhoods suffering from the effects of foreclosures, Miami-Dade County officials have drawn up a spending plan for the $62.2 million in grant money they got as part of a mammoth housing stimulus measure passed earlier this summer by Congress.
The money will primarily be used to buy, rehab and resell or rent bank-owned properties to low-income residents.
Miami-Dade, especially hard hit, received more money under the law than any other local jurisdiction, owing to a funding formula that looked at the concentration of subprime loans, percentage of homes in foreclosure, and the likelihood of future foreclosures.
Congress approved nearly $4 billion in additional neighborhood stabilization funding to offset the effects of foreclosures, which can depress property values of neighboring homes, attract crime and cause eyesores and safety hazards.
The state and other local governments received a total of $541 million. Broward County received $17.7 million, while Monroe County was excluded. A handful of large cities in both counties received their own money directly.
County and city administrators are required to follow certain guidelines when deciding how and where the money will be spent. Areas heavy with foreclosures and where more than half the residents earn less than 121 percent of the area's median income will be the county's top priority, said Robert Cruz, a county economist who analyzed foreclosure trends to determine the areas of greatest need. Broadly, the targeted areas extend throughout central Miami-Dade and southeastern parts of the county. The money cannot be used to prevent homeowners from losing their homes.
Miami-Dade's proposal would directly help about 1,500 residents in the form of counseling, down-payment assistance or the rental of refurbished apartments, said Clarence Brown, who heads the county's community and economic development office.
The county plans to set aside $10 million to buy bank-owned properties and will spend $1 million to tear down about 80 blighted structures. It has also proposed putting aside $26.6 million to buy apartment buildings, with the expectation of adding 215 new units to the market.
''We're figuring we can get the biggest bang for our buck if we utilize the money for rentals because we can house the most people that way faster,'' said Cynthia Curry, a senior advisor to County Manager George Burgess.

Stocks plunge as investors ponder Obama presidency

2008-11-05T16:53:00.000-05:00

Stocks plunge as investors ponder Obama presidency
(borrowed from the Miami Herald)
By SARA LEPRO and TIM PARADISAP Business WriterNEW YORK -- A case of postelection nerves sent Wall Street plunging Wednesday as investors absorbing a stream of bad economic news wondered how a Barack Obama presidency will help the country weather a possibly severe recession. Volatility returned to the market, with the Dow Jones industrials falling nearly 500 points and all the major indexes tumbling more than 5 percent.
The market was expected to give back some gains after a six-day runup that lifted the Standard & Poor's 500 index more than 18 percent. But investors lost some of their recent confidence about the economy and began dumping stocks again; light volume helped exaggerate the price swings.
"I think what is happening in the market is a continuation of really the last few weeks," said Subodh Kumar, global investment strategist at Subodh Kumar & Associates in Toronto. "The markets are still incorporating the slowdown in the global economy."
Worries about the financial sector intensified after Goldman Sachs Group Inc. began to notify about 3,200 employees globally that they have been lost their jobs as part of a broader plan to slash 10 percent of the investment bank's work force, a person familiar with the situation said. The cuts were first reported last month. Goldman fell 8 percent, while other financial names like Citigroup Inc. fell 14 percent.
Commodities stocks also fell after steelmaker ArcelorMittal said it would slash production because of weakening demand. Its stock plunged 21.5 percent.
Although the market expected Obama to win the election, as the session wore on investors were clearly worrying about the weakness of the economy and pondered what the Obama administration might do to help it. Analysts said the market is already anxious about who Obama selects as the next Treasury Secretary, as well as who he picks for other Cabinet positions
Analysts said investors were also uneasy in advance of the Labor Department's October employment report, to be issued on Friday. Economists on average expect a 200,000 drop in payrolls, according to Thomson/IFR. Employers have been slashing jobs after a freeze-up in the credit markets crippled many companies' ability to get financing.
Late-day selling by hedge funds helped deepen the market's losses during the last hour. More selling by the funds is expected to weigh on the market ahead of a Nov. 15 cutoff for shareholders to notify fund managers of their intent to cash out investments before year-end.
According to preliminary calculations, the Dow fell 486.01, or 5.05 percent, to 9,139.27.
The S&P 500 index fell 52.98, or 5.27 percent, to 952.77. Through the six sessions that ended Tuesday, the index, the one most closely watched by market professionals, rose 18.3 percent.
The Nasdaq composite index fell 98.48, or 5.53 percent, to 1,681.64, while the Russell 2000 index of smaller companies fell 31.33, or 5.74 percent, to 514.64.

Obama turns to building a presidency

2008-11-05T16:40:00.002-05:00

Obama turns to building a presidency

(Borrowed from the Miami Herald)

By TERENCE HUNTAssociated Press WriterWASHINGTON --

His storied election behind him and weighty problems in his face, Barack Obama turned Wednesday to the task of building an administration in times of crisis as Americans and the world absorbed his history-shattering achievement as the first black leader ascending to the presidency.
Obama enjoyed an everyman day-after in his hometown of Chicago on Wednesday after an electric night of celebration, anchored by his victory rally of 125,000 in Chicago and joyful outpourings of his supporters across the country. The president-elect saw his two young daughters off to school, a simple pleasure he's missed during nearly two years of virtually nonstop travel, then had a gym workout.
Pressing business came at him fast, with just 76 days until his inauguration as the 44th president.
The nation's top intelligence officials planned to give him top-secret daily briefings starting Thursday, sharing with him the most critical overnight intelligence as well as other information he has not been allowed to see as a senator or candidate. And Obama planned to give the first of his daily briefings to the media on Thursday as he moves quickly to begin assembling a White House staff and selecting Cabinet nominees.
Obama was asking Illinois Rep. Rahm Emanuel, former political and policy adviser to President Clinton, to be his White House chief of staff, Democratic officials said. John Podesta, who served as Clinton's chief of staff, was expected to join Obama Senate aide Pete Rouse and campaign adviser Valerie Jarrett in leading the transition team.
President Bush pledged "complete cooperation" in the transition and called Obama's victory a "triumph of the American story."
Naming the staggering list of problems he inherits in his decisive defeat of Republican John McCain - two wars and "the worst financial crisis in a century," among them - Obama sought to restrain the soaring expectations of his supporters late Tuesday night even as he stoked them with impassioned calls for national unity and partisan healing.
"We may not get there in one year or even in one term," he said. "But, America, I have never been more hopeful than I am tonight that we will get there. I promise you, we as a people will get there."
Helping him to get there will be a strengthened Democratic majority in both houses of Congress. When Obama becomes the president on Jan. 20, with Delaware Sen. Joe Biden as his vice president, Democrats will control both the White House and Congress for the first time since 1994.
A tide of international goodwill came Obama's way on Wednesday morning, even as developments made clear how heavy a weight will soon be on his shoulders.
Russian President Dmitry Medvedev issued a congratulatory telegram saying there is "solid positive potential" for the election to improve strained relations between Washington and Moscow, if Obama engages in constructive dialogue.
Yet he appeared to be deliberately provocative hours after the election with sharp criticism of the U.S. and his announcement that Russia will deploy missiles near NATO member Poland in response to U.S. missile defense plans.
In Afghanistan, where villagers said the U.S. bombed a wedding party and killed 37 people, President Hamid Karzai said: "This is my first demand of the new president of the United States - to put an end to civilian casualties."
Young and charismatic but with little experience on the national level or as an executive, Obama easily defeated McCain, smashing records and remaking history along the way.

Getting Home Loans With Bad Credit

2008-10-24T15:41:00.000-04:00

Bad credit customers are those whose credit scores are much below 600 and have a really tainted credit repayment history. Many lenders are wary about providing credit to such customers. However, U.S.A LENDING AND REALTY, INC. IS NOW A CREDIT REPAIR COMPANY!! WE CAN NOW FIX YOUR DAMAGED CREDIT AND HELP YOU FIND YOUR DREAM HOME ALL IN THE SAME PLACE. WOW! HOW GOOD CAN WE GET? As well as that, there are ways by which bad credit customers can also obtain a home loan.

Correcting Credit Scores:
The foremost step before applying for a home loan is to confirm the credit scores. Credit reports are available with any of three credit bureaus and can be obtained free of cost. It is important to verify all the information recorded on the credit report. Any errors or misunderstandings should be immediately reported along with properly documented evidence. This can help in improving the credit score in a considerable way.

Improving Credit Scores:
Another wise advice offered by several professional mortgage lenders is to try and improve credit scores. One way of doing this is to pay off the amount on the credit cards and other outstanding loan amounts. Credit scores can also be improved through timely payment of rents, other bills and monthly mortgage amounts. Another important way of improving credit scores is through use of prepaid or guaranteed credit cards.

Limit Credit Report Enquiries:
Credit scores get adversely affected due to multiple credit enquiries by lenders. However, credit bureaus treat multiple mortgage enquiries as a single one, provided they fall within the 45-day period. Hence, one must be careful to make any comparison of multiple-lender offers within the 45-day time period.

Shopping for Best Rates:
Lenders often charge high-interest rates to customers with bad-credit. However, due to an increased competition in the real estate market, several lenders are offering bad-credit home loans at competitive rates and with added incentives. Hence, it is important to shop around extensively so as to locate a lender offering home loan at a lower interest rate and flexible repayment terms.

Homeowners Considering Foreclosures

2008-10-24T15:36:00.003-04:00

To cut losses, homeowners consider default

Some struggling homeowners are being tempted to default on purpose in order to qualify for mortgage relief from the federal government or their lenders.

More than four in 10 South Florida homeowners who bought in the last five years owe more on their mortgages than their homes are worth.

For those who bought in 2006 — the year prices peaked — the situation is even worse. A startling 76 percent of those homeowners are ”under water,” meaning their mortgage debt exceeds their property’s market value.

The statistics, compiled from sales and mortgage data by Zillow.com, illustrate the fragility of South Florida’s real estate market. Plunging prices have started to lure buyers off the sidelines and sales have ticked upward.

But the market is still flooded by foreclosed homes that banks want to unload, and the volume of underwater mortgages suggests many more are coming. Homeowners in a pinch either can’t sell for enough to pay off the debt or they walk away, thinking it’s better to abandon the property than invest in a sinkhole.

Some homeowners find themselves wondering if they’d be better off if they did default. They are frustrated because they can’t take advantage of lender programs to cut interest rates and, sometimes, principal balances to keep people in their homes. To qualify, homeowners usually must be in default or in foreclosure.

Lenders Ready For Business!!

2008-10-24T15:32:00.002-04:00

The cash is flowing and lenders are eager and ready for business
Despite the country’s financial crisis, the housing market has a sunny side.

Credit squeeze, credit freeze, credit system seizures: Everybody knows how severe and painful the global financial breakdown has been — with banks unwilling to lend even to other banks.

But what about mortgages and real estate? Can you still get a home loan with less than a 20 percent or 30 percent down payment? Or with a credit score below 720?

Absolutely. It would be a big stretch to label housing the sunny side of the market at the moment, but there’s a lot more light there than in most other financial sectors. Consider these developments:

• There is no shortage of money available for home mortgages, no freezing of credit to purchase or refinance a house. Why? Because the American mortgage market effectively has been federalized — at least for the time being. More than 90 percent of new loans now are being made through the Federal Housing Administration (FHA) insurance program, plus Fannie Mae and Freddie Mac. FHA is owned by the federal government, and Fannie and Freddie are operating under federal conservatorship. All three have unfettered access to global capital markets at rock-bottom costs because their borrowings are fully guaranteed by the Treasury. Ginnie Mae, which is FHA’s pipeline to the bond market, recorded an all-time high of $29 billion in new mortgage-backed securities issued in August.

• Loan terms and credit underwriting standards have been toughened up, but you can still put down 3 percent (3.5 percent after Jan. 1) on an FHA-insured mortgage and 5 percent on certain Fannie Mae and Freddie Mac loan programs with private mortgage insurance. FHA’s credit standards are generous and forgiving — the agency exists to help people with less-than-spotless credit histories. Fannie Mae and Freddie Mac have raised their credit score requirements over the past year, but buyers and refinancers with scores in the upper 600s can still qualify for loans carrying reasonable rates and fees.

• Despite the global financial system’s quakes, mortgage rates not only remain low by historical standards but have actually declined recently. For the week ending Oct. 8, according to the Mortgage Bankers Association, average 30-year fixed rates dropped to 5.99 percent and 15-year mortgages averaged 5.71 percent. Freddie Mac said 30-year rates dropped to 5.94 percent.

• Maximum loan amounts through FHA, Fannie and Freddie in high-cost local markets on the West and East coasts continue to be $729,750 through December. In January, the high-cost maximum is projected to dip to approximately $625,000.

• Home prices — pushed by foreclosures and short sales — have rolled back to 2003 and 2004 levels or lower in many of the former boom markets. As a result, growing numbers of buyers are coming off the sidelines, making offers and writing contracts. The pending home sales index jumped by 7.4 percent based on purchase contracts signed in August, according to the National Association of Realtors. The heaviest increases — pointing to higher closed sales in the coming two to three months — were in California, Florida, Nevada and the Washington, D.C., metropolitan area.

Housing and mortgage leaders say consumer worries about the stock market have obscured positive developments under way in real estate, where pricing pain and downsizing have been facts of life for the past 2 ½ years.

David G. Kittle, president and CEO of Principle Wholesale Lending and incoming chairman of the Mortgage Bankers Association, says ”the mortgage market has never shut down” despite the global financial crisis. Money is ”clearly available as long as you can qualify for it” with at least a modest down payment and decent credit history.

Matt Vernon, a national retail mortgage sales executive for Bank of America, said, ”we’ve got more than enough liquidity” to handle mortgage demand. “We are open for business.”

On the front lines, mortgage company owner Jeff Lipes, president of Family Choice Mortgage near Hartford, Conn., says “I don’t think consumers really know how free-flowing capital is right now in the residential mortgage market. There are no shortages, no breakdowns. People ought to be aware.”

Bottom line: Scary as the news has been about stocks and banks, this is not the case for mortgages. Besides shopping at large national lenders, check in with local banks and credit unions that may be originating loans for their own portfolios — not for Fannie, Freddie or FHA. Many of them are healthy, have plenty of cash to lend, and may be surprisingly competitive on terms and rates compared with the big boys.

Refuse to Participate in the "Recession" - Motivating Article - Think outside the box!

2008-09-16T17:30:00.002-04:00

Refuse to Participate in the "Recession"
As owners of a company that is literally quadrupling its business this year, we know that it is not only possible to grow your business in a "down" economy, but PROBABLE. If you look at this economy as an opportunity rather than a threat, you will realize that this is the BEST time to invest heavily in your business. When all your competitors are sitting around, waiting for some outside forces to change their situation, you can be building your prospect database, sending out newsletters, investing in your own financial and business education, hiring sales people, bettering your business processes,and being creative about new revenue opportunities available to you. By the time the news starts talking about how the economy has "picked up", half your competition is gone and you are now primed and ready to dominate your market. Wealth and success always come to those who can take ANY situation and make it work for them. Your thoughts and beliefs about what is possible for you and your business are what determine your reality. So, our advice is...refuse to participate in the "recession".... because it only exists if you believe it does.
-- Contributed by Roland Pozo

Double Your Sales… In One Afternoon

2008-09-15T17:34:00.003-04:00

Want to sell twice as much next quarter? I’m skeptical of quick-fix sales efforts, but the following list (based upon a conversation with Bill Stinnett, author of Selling Results!) makes perfect sense to me. Here are nine steps that you can take — in about four hours — that can easily double your sales:

STEP #1: Reorganize your opportunity portfolio. Estimate the revenue of each opportunity as well as the date you expect the opportunity to come to closure. Look for deals that are likely to close quickly and for big money.
STEP #2: Re-qualify each opportunity. Starting with the best from step #1, determine what you know and don’t know about each account. Consider the account’s current state, desired future state, and vision of the ideal solution.
STEP #3: Size or resize each opportunity. Based upon the contacts that you’ve had up until this point, determine the account’s appetite for investment from the people who are responsible for earning a return on whatever capital they decide to invest.
STEP #4: Frame each opportunity in time. Determine when they need to arrive at their desired future state and what will happen if they don’t arrive there by that date. Then estimate when this customer will buy based on that urgency.
STEP #5: Revise your revenue projection. You have now looked at your “hot” opportunities from both your perspective (as a seller) and their perspective (as a buyer). With this new clarity, revise your sales forecast to reflect what you really believe can happen.
STEP #6: Re-Evaluate what it will take to achieve your sales goals. Plan what you need to do in terms of monthly and weekly business development activity that will ensure you successfully close on the opportunities identified above.
STEP #7: Redefine your relationship footprint. Review whom you currently know within each account. Decide whom else you need to meet as you help your contacts in the account work through their buying process.
STEP #8: Develop a plan to move each opportunity forward. Create a project plan with dates for each event that must take place for the deal to close. Identify the people who need to be involved from your company and from your account.
STEP #9: Plan your meetings and phone calls to maximize results. Use all of the above as a touchstone for your daily activities over the next four weeks. Ensure that every interaction with your customer moves the sales opportunity forward.
The above process will cause you to double your sales because it forces you to focus your time and energy on the right prospects at the right time.

Foreclosure Filings Still Rising

2008-09-15T17:30:00.000-04:00

New foreclosure filings rose 4% in April and were nearly 65% higher than the level recorded a year earlier, according to RealtyTrac.
The company’s U.S. Foreclosure Market Report indicates that foreclosure filings, default notices, auction sale notices, and bank repossessions were reported on 243,353 properties in April.
"The total number of U.S. properties with foreclosure activity in April was the highest monthly total we’ve seen since we began issuing the report in January 2005," said James J. Saccacio, RealtyTrac’s chief executive officer. "Although only about 2% of households nationwide are in foreclosure, these properties contribute to already-bloated inventories of homes for sale and put downward pressure on home values."
The company noted California, Florida, and Ohio recorded the highest foreclosure rates in April.

Banks roll out $70 billion loan program

2008-09-15T17:16:00.001-04:00

NEW YORK — A group of global banks and securities firms announced late Sunday a $70 billion loan program that financial companies can tap to help ease a credit shortage that threatens global financial markets.
The ten banks, which include JPMorgan Chase and Goldman Sachs, said they were committing $7 billion each for the pool. The pool would act as a signal to the marketplace that banks, brokerages, and other financial companies can lean on the fund to take care of borrowing needs.
The banks said the program will be available to participating banks which can get a cash infusion up to a maximum of one-third of the total size of the pool. The size of the loan program might increase as "other banks are permitted to join."
All participating banks intend to use this facility beginning this week, the statement said.
The banks also include Bank of America, Barclays, Citigroup, Credit Suisse, Deutsche Bank, Merrill Lynch, Morgan Stanley and UBS.

Today's Economy

2008-09-15T17:05:00.001-04:00

Our economy is in big trouble and millions of American families are hurting. Job loss and unemployment is at an all-time high. Unfortunately, neither President Bush nor Congress has done anything to respond to the employment crisis. In fact, since the Bush inauguration, America has lost 1.5 million jobs. Compounding the employment crisis, more Americans are losing health care coverage and states are struggling to fill record budget gaps. We need to jump start our economy to help working families who are bearing the brunt of the economic crisis. Now is the time for President Bush and Congress to do the right thing and put workers and their families first.

Huge company Hewlett-Packard cutting 24,600 jobs

2008-09-15T17:00:00.001-04:00

Hewlett-Packard to cut 24,600 jobs

SAN FRANCISCO (AP) — Hewlett-Packard (HPQ) said Monday it plans to cut 24,600 jobs over the next three years, about 7.5% of its workforce, as it combines operations with Electronic Data Systems Corp., the technology-services company it recently acquired.
Most of the cuts will come from within EDS's ranks, and nearly half will hit jobs in the U.S., HP said Monday after the markets closed.
The announcement marks the first time HP had put a number on how many employees of the combined company would lose their jobs. Before the acquisition, HP had 178,000 workers and EDS had 142,000, a total of 320,000.

Lehman Brothers Crisis

2008-09-15T16:51:00.002-04:00

(CNN) -- The venerable Lehman Brothers investment bank said early Monday that it will file for bankruptcy, while Bank of America unveiled plans to buy Merrill Lynch -- two pieces of news that profoundly alter the American financial landscape.

The value of Lehman Brothers shares declined 94 percent in the past year.

The fast-paced changes capped a roller-coaster Wall Street weekend and threatened to stir up U.S. financial markets already reeling from woes at other major financial firms and mortgage financing titans Fannie Mae and Freddie Mac.
"This crisis is clearly deeper than anybody had imagined only a short time ago," Peter Stein, an associate editor at The Wall Street Journal in Asia, told CNN.
Lehman Brothers said in a statement early Monday that it plans to file for bankruptcy under Chapter 11 of the U.S. Bankruptcy Code. The 158-year-old investment bank had been undermined by bad bets on real estate -- the value of its shares declined 94 percent this year.
The fall of Lehman followed a wild, three-day scramble by top Wall Street executives and federal regulators, who worked around the clock to come up with a solution to a still-unfolding financial crisis. Watch how subprime crisis is changing Wall Street »
By the end of the weekend, the Federal Reserve had stepped in to try to calm the markets by announcing plans to loosen its lending restrictions on the banking industry. iReport.com: Are you feeling the pinch?
A consortium of 10 leading domestic and foreign banks agreed to create a $70 billion fund for loans to troubled financial firms.

Housing Doom or Housing Boom

2008-09-14T18:10:00.003-04:00

Well, how do I start, Miami is a booming town, yes OK. What about the real estate and mortgage industries? What about all industries? What about Miami tourism? You cannot walk down the street on Lincoln Road in Miami Beach, on Ocean Drive, or any restaurants in South Beach without realizing that 80% of the patrons are TOURISTS, yes, mostly European. I want to write about the real estate market and the mortgage market - down payment assistance was going away and all of a sudden, they're not. FHA will be allowing 100% financing. Reverse mortgage limits will be going up, real estate values in downtown Miami are going up or not budging down!!! So what does that mean for you? For us? Yes, there are still bargains out there, but not everywhere and not in the desirable areas; and the bargains that are left are going away fast. Who is buying and how are they buying? The banks are not funding loans, the private lenders are not biting on anything. Are people buying cash? Are the Europeans buying the good deals? I know they are looking for bargains. The financial problems of the U.S. are broadcast all over the world. The Euro is strong, the Dollar is losing.

Hurricane Ike missed Miami - devastated Haiti, Cuba, Bahamas, Turks & Caicos

2008-09-08T23:35:00.001-04:00

Ike Moves To Cuba, May Miss Keys
Ike's Winds Slow To Category 3
UPDATED: 10:12 pm EDT September 7, 2008

GONAIVES, Haiti -- Hurricane Ike is now moving in on Cuba on a course that could skirt the Florida Keys by Tuesday on its way to the Gulf of Mexico.
Images Track Ike
In Cuba, the government has evacuated vulnerable communities ahead of Ike's strike Sunday night and Monday before it heads toward the U.S. Gulf Coast.
In Key West, evacuation orders became mandatory Sunday for both tourists and the city's 25,000 residents. Traffic along the lone highway off the island has been steady but not jammed, with some people planning to tough it out unless the storm turns.
Ike is expected to make landfall late in the week somewhere between the Florida panhandle and the Texas coast.
Louisiana Gov. Bobby Jindal has declared a state of emergency ahead of Hurricane Ike.
The emergency declaration will extend from Sept. 6 to Oct. 5 unless Jindal ends it sooner.
The governor said Sunday that Ike is expected to make landfall on the Louisiana coast close to Sept. 13.
Louisiana is still recovering from Hurricane Gustav and many evacuees have just begun returning to their homes.
In addition to his declaration, Jindal wrote a letter to the president asking that he declare a federal state of emergency. Jindal wrote that he believes Ike will overwhelm the capability of his state’s emergency management teams to deal with the situation.
"I anticipate that the effects of the storm will overwhelm the capability of state resources and it is necessary that critical pre-positioning and other readiness requirements be provided through federal assistance. I request that federal resources be activated to assist with the evaluation of the incident and evacuation and sheltering operations," Jindal wrote. "I have determined that this incident is of such severity and magnitude that effective response is beyond the capabilities of the state and affected local governments, and that supplementary federal assistance is necessary to save lives and to protect property, public health and safety, or to lessen or avert the threat of a disaster."
If the president enacted a declaration, it would open up the delivery of even more money and supplies to the area.
Jindal said he hopes "hurricane fatigue" won't prevent people from leaving their homes for what would be the second time in 10 days.
David Myers, of New Orleans, said it would take a Category 4 storm to get him to leave again so soon. Ike is currently a Category 3 hurricane, with winds of 120 mph. It's expected to weaken further over Cuba, but then power up again over the Gulf.
There's a lot of damage in the Turks and Caicos Islands from Hurricane Ike, which roared through on Sunday with 135-mph winds. Officials report most of the homes on two of the islands were damaged or destroyed. Ike's most powerful winds are still blowing on other islands, and it's too early to know the number of deaths or injuries.
In a church that sheltered about 50 people in the southern Bahamas, the screaming winds threatened to peel the plywood from the windows. The shelter manager says the pastor there led everyone in prayer.
Ike Kills 48 In Haiti
For the second time in a week, people in Haiti have been forced to their rooftops to escape floodwaters.
Haiti is a still a long way from recovery after Hurricane Hanna -- but now, the rain from Hurricane Ike is adding to the misery. Homes have been inundated again. A bridge on the last open land route to the desperate city of Gonaives has collapsed.
In a coastal town, officials said 48 drowned overnight. That brings to more than 298 the country's overall death toll from four storms in recent weeks.
U.N. peacekeepers set out again Sunday in trucks to deliver more aid to Gonaives. Scores of young men splashed alongside, begging for help. U.N. security was beefed up to keep order, as thousands waited in line around a warehouse that became a U.N. shelter.
Ike was making its way past the Bahamas Sunday afternoon on a heading toward Cuba. At last report, its top winds were near 135 mph, making it a Category 4 storm at that time. It has since been downgraded.

Fannie Mae and Freddie Mac bailout

2008-09-08T23:01:00.000-04:00

Fannie and Freddie: The Bush administration said Sunday that it was taking control of the mortgage backers in an attempt to help stabilize the battered housing market and bring down mortgage rates.
Treasury Secretary Henry Paulson said the companies were being put under a government conservatorship and both chief executives were being replaced. The Treasury Department will put up to $100 billion in each company over time to keep them afloat, in exchange for senior preferred stock.
Both the common and preferred shares of the companies plummeted.
The two government-sponsored firms own or back about half the mortgage debt in the country and have lost billions in the housing market collapse. The plan should lower mortgage rates by lowering Fannie and Freddie's borrowing costs.
But analysts are split as to how much the plan will be able to help the battered housing market and sluggish economy. (Full story)
While the announcement has a psychological impact, it is not the ultimate solution to what ails the housing and credit markets, said William Rutherford, president at Rutherford Investment Management.
"If banks are going to continue to be tight in their lending policies and if we don't get a stabilization in housing prices, I don't think we can turn the economy and the housing market around," he said.
Additionally, he said, investors are still contending with cash-strapped local and regional banks, not to mention the global economic slowdown.