Conrad Venti

To see original blog visit www.conradventi.com - Foreclosure is a definite buzz word (of many) for 2008. Foreclosures are devastating for some and can create opportunities for others. The default rate on mortgages that has caused so many problems for our financial and real estate markets affects more than just those involved in the industry. Those who have reached the point where they can no longer afford their mortgage payment have obviously gone through a substantial financial burden. Regardless of whether the driving factor was a life change, loss of job, or poor financial consulting, a foreclosure is a devastating experience.

We are fortunate live in the Willamette Valley where the foreclosure rate is significantly lower than the national average. However, I understand that those facing foreclosure could care less about the "national average". With at least 7 years of bad credit history following a foreclosure, the best option is to find a solution prior to having your house sold at an auction.

My mission to help my clients build a strong financial foundation goes beyond real estate financing. In the area of foreclosures, education is important. Knowing what to do if you are facing foreclosure can help save your financial foundation. Real estate investors play a key part in the assistance for those who are in foreclosure. A great local resource in area of foreclosures is LMC Properties.

LMC Properties is a sister company of Landmark Mortgage. Our goal with LMC Properties is to create real estate solutions for those in need. We offer free guidance to those facing foreclosure and those looking to invest in real estate. If you are interested in learning more about LMC Properties visit the online network at www.foreclosuresinsalem.com. You can also email lmcproperties@gmail.com.

Consumer spending dropped 0.3% in September, the largest decline in four years. July and August showed no change in spending. The standstill and slide in recent months represents the purchasing activity of US consumers.

In recent years, the growth and abuse of consumer credit has caused the US economy to be dependent on consumers borrowing to purchase goods. According to the Federal Reserve Board, the average consumer debt (credit card debt) per household has reached $8,565, an increase of 15% since 2000. Disposable income required to be set aside to pay for household debt (credit cards, auto loans, etc.) stands at 14.5%, compared to 11% in 1993.

Not only has consumer spending correlated with taking on credit card debt, but the consumer savings rate has also significantly decreased. The Bureau of Economy Analysis reports the nation's savings rate, which exceeded 8% of disposable income in 1968, now stands at 0.4%.

The American mindset, "buy now, pay later" must end! Many are finding that they simply cannot live this lifestyle any longer because it is becoming increasingly difficult to obtain more credit. The high default rates have affected the credit markets in such a way that they have re-standardized credit requirements.

Now is a great time to analyze your personal finances. Before the holiday season is in full swing sit down and look at your budget. If you don't have a budget now would be a great time to start one. Please email conrad@landmarkmortgage.com or call if you need help setting starting a budget or just want a few helpful tools.

Yesterday the Federal Open Market Committee unanimously voted to reduce the benchmark rate to 1%. The prime interest rate (rate consumers borrower at) will likely follow. The .5% dropped brings the fed funds rate to a half a century low.

The Feds have made the move to correspond with recent actions to help our hurting economy. The committee stated, "there are still downside risks to growth", knowing that we are still going to experience a slowing period.

It is important to remember that the prime interest rate is reflected in consumer debt and some installment loans. The benchmark rate is the rate at which the banks borrower funds from the fed overnight. Mortgage rates have seen a slight increase since the announcement today and may settle in the coming days.