Adult Children Co-sign Loans for Parents

Adult children increasingly co-sign for parents' loans

Financial roles reverse due to rising debts, falling retirement funds

By Michelle Crouch

It's almost an American tradition: Kids in their 20s without a credit history have long turned to their parents to co-sign for them, whether it's for a first credit card, a car or an apartment lease. Now the credit crisis is turning that tradition on its head.

Financial advisers, credit counselors and lenders across the country say they've seen a surge in middle-aged parents who have damaged their credit asking their adult children -- usually in their late 20s or early 30s -- to co-sign loans and leases for them.

"I'm seeing this a lot more now than I did two or three years ago," says Laurie Giles, an elder life planning attorney in Shelton, Conn., and author of the "What Now?" book series. "A lot of times, it's parents who had stable jobs for 20 or 30 years who got used to living on credit, then they're suddenly downsized and they don't have strong savings built up, or their savings went down with the market. And their house isn't worth what they thought."

http://www.creditcards.com/credit-card-news/children-cosign-for-parents-1273.php

Jobs Jobs Jobs

let's take a look

______________

Payrolls falls in 27 states, Led by California

Payrolls decreased in 27 U.S. states in June, led by California and New York, signaling the slowdown in hiring is broad-based.

Employers in California cut staff by 27,600 workers last month and those in New York reduced employment by 22,500, the Labor Department said today in Washington. Tennessee, Arizona and New Mexico rounded out the five states with the biggest job losses.

The U.S. lost 125,000 jobs last month as the government cut temporary workers conducting the 2010 census and private payrolls rose a less-than-forecast 83,000, according to Labor Department figures issued July 2. The data signal companies are becoming reticent to hire as the economy cools.

http://noir.bloomberg.com/apps/news?pid=20601087&sid=aCrIFae7VFMg

What would Reagan do?

Tax Hikes and the 2011 Collapse

Today's corporate profits reflect an income shift into 2010. These profits will tumble next year, preceded most likely by the stock market.

http://online.wsj.com/article/SB10001424052748704113504575264513748386610.html

FHA Loans out pace the rest

lets take a look:

FHA Home-Financing Volume Sign of ‘Very Sick System’

May 24 (Bloomberg) -- Loans guaranteed by the Federal Housing Administration, the U.S.-owned mortgage insurer, may be involved in more home-purchase transactions than borrowing financed by Fannie Mae and Freddie Mac.

FHA lending last quarter may have topped the combined volume of government-supported Fannie Mae and Freddie Mac in a home-lending market that’s still a “government-financed market,” David Stevens, the agency’s head, said today at a conference in New York, citing research by consultant Potomac Partners.

“This is a market purely on life support, sustained by the federal government,” he said at the Mortgage Bankers Association conference. “Having FHA do this much volume is a sign of a very sick system.”

http://www.businessweek.com/news/2010-05-24/fha-home-financing-volume-sign-of-very-sick-system-update2-.html

Borrow at 3% Lend at 6% Golf at 4:00pm

let us take a look

__________________

.................With millions of homeowners losing their homes to foreclosure during this recession, megabank JPMorgan Chase plans to argue against the Obama administration's latest weapon in its fight to stem the problem -- principal cuts for struggling borrowers -- by citing the sanctity of contracts and the borrower's "promise to repay."

In testimony to be delivered Tuesday afternoon, David Lowman, chief executive officer for home lending at the "Too Big To Fail" behemoth, will fight back against the program which calls for lenders and investors to decrease the outstanding debt owed on a home mortgage. While his competitors at Bank of America, Wells Fargo and Citigroup plan to dance around the issue -- judging from their prepared remarks -- Lowman cut right to it: borrowers don't deserve it.

"Like all loans, mortgage contracts are based on a promise to repay money borrowed," Lowman's prepared remarks read. "Importantly, there is no provision in the mortgage contract, express or implied, that the lender will restore equity or reduce the repayment amount if the value of the collateral -- be it a home, a car or a stock market investment -- depreciates.

http://www.huffingtonpost.com/2010/04/12/jpmorgan-chase-argues-aga_n_534898.html

Consumer Credit Record Drop

Let's take a look

____________________

Consumer Credit in U.S. Drops Record $17.5 billion:

Jan. 8 (Bloomberg) -- Consumer credit in the U.S. dropped a record $17.5 billion in November as unemployment close to a 26- year high discouraged borrowing and banks limited access to loans.

The slump in credit to $2.46 trillion was more than anticipated and followed a revised $4.2 billion drop in October, Federal Reserve figures showed today in Washington. The median estimate of economists surveyed by Bloomberg News projected a decrease of $5 billion. The series of 10 straight declines was the longest since record-keeping began in 1943.

A labor market that’s shed 7.2 million jobs since the recession started in December 2007 is restraining consumer spending that accounts for about 70 percent of the economy. Fed policy makers have said tighter bank lending standards and reductions in credit lines are hampering the recovery.

http://www.bloomberg.com/apps/news?pid=20601087&sid=axUfVp0dw8wA&pos=1

www.creditrepaircapital.com www.texascreditcapital.com, www.oregon-credit-repair.com, www.consumercreditcapital.net, www.oregoncreditcapital.com, www.creditscorecounseling.com, credit, repair, report, bad, improve, FICO, fix, information, services, service, help, software, legal, own, rebuild, dispute, file, credit report, repair credit, credit report, fix bad, auto loan, reverse mortgage, improve credit, credit repair companies, fix credit, credit repair information, credit repair services, credit repair software, legal credit repair, repair own credit, rebuild credit, dispute credit, credit file, foreclosure, short sale, bankruptcy, loan, refinance, Oregon, Portland, Medford, Salem, auto loan, bad credit, car loan, credit, Credit Repair, fico, Fico Score, internal revenue service, irs, New Cars, tax deduction,

Auto Sales Down

Let's take a look.......

_______________

..................U.S. auto sales had averaged 16.4 million annually this decade through 2008, when sales plunged to 13.2 million. Rates continued to drop this year, hitting 27-year lows before appearing to bottom out. Analysts now are forecasting several years of gentle increases.

In the meantime, low sales and high cost structures sent all three Detroit automakers scrambling to restructure. GM and Chrysler did so under government-sponsored bankruptcy, while Ford has restructured within its own resources. Ford reached a tentative agreement this week with the UAW to bring its costs in line with those of its Detroit rivals.

The companies are now poised to profit at new sales levels. For instance, the government says GM's restructuring will eventually make it profitable in a 10-million-unit sales environment.............

http://www.autonews.com/article/20091016/ANA02/910169973/1176/FRONTPAGE

www.creditscorecounseling.com www.consumercreditcapital.net, www.oregoncreditcapital.com, www.creditscorecounseling.com, credit, repair, report, bad, improve, companies, fix, information, services, service, help, software, legal, own, rebuild, dispute, file, credit report, repair credit, credit report, fix bad, auto loan, reverse mortgage, improve credit, credit repair companies, fix credit, credit repair information, credit repair services, credit repair software, legal credit repair, repair own credit, rebuild credit, dispute credit, credit file, forcloseure, short sale, bankruptcy, loan, refinance, Oregon, Portland, Medford, Salem,