Car insurance when you score older can be rather tricky. Now that you may be living on a shrimp income you may have to do some comparison shopping to acquire the best auto insurance policies available. Here are some helpful tips on how to save money while getting the best auto insurance rates for seniors.

As a person ages they drive less so it stands to reason if you haven’t had any accidents your rates tend to lower. However, for income reasons it is still best to comparison shop for the best insurance quotes when it comes to any type of insurance, especially auto. The first thing to remember is nobody can be turned away for car insurance because of their age. However, if they let their license lapse, they may be required to take an exam before they are able to get their license renewed.

It is important to get insurance quotes from several different companies before deciding on your auto insurance choice.

Taking a driving course or purchasing a car with additional safety features can save money on your insurance rates.

There are several auto insurance companies that specialize in insurance for seniors such as AARP and AAA.

Sometimes employers or church groups may offer a group insurance rate that will place money on auto insurance policies.

Sometimes local insurance agents can offer lower rates than other auto insurance companies, it is always good to look at several different avenues to find the best policy quotes.

Many seniors are driving automobiles that they have had for many years and sometimes the deductible on a positive car many cost more than the car is worth. To fetch the best senior rate you may need to choose a higher deductible for your automobile.

Your insurance rates are adjusted according to your zip code. If you own two homes and spend the same amount of time in each home, you will need to resolve to list the car insurance in the zip code that will give you the best rate.

Most seniors never want to give up driving, however sometimes due to health reasons it may become necessary to give up driving. People sometimes continue paying for car insurance policies even after they never drive anymore due to health reasons for fear they may need to drive someday. The cost far outweighs the benefit and if you do have to drive one day, you probably wouldn’t be able to due to medical reasons, so let the insurance and car go. Use senior taxicabs, family members or friends. The money you save by no longer having a car will easily pay for your trips here and there to the store and doctor appointments.

Some good insurance companies that offer good rates to seniors are AARP, Progressive, Allstate, Farm Bureau, Geico and State Farm.

Make distinct you get all the quotes you can and tell them what you can pay, sometimes as with Progressive they can work around your priceline. Geico has a senior discount program and many other insurances do as well.

References for this article include: www.nscddconline.com/geicosenior/
www.insurancefinder.com/autoinsurance/seniorauto.html
seniorautoinsurance.org/
seniorjournal.com/NEWS/Discounts/2007/7-06-28-SenCitCanFind.htm

Shopping for car insurance can seem like a daunting task. There is unfamiliar lingo and there are so many companies vying for your attention every day. It’s hard to know where to initiate. Most people dread shopping for auto insurance for this reason.

Everyone knows that calling the first company you remember isn’t a good idea, especially if you’re on a budget, but it’s hard to know how to make sure that you’re adequately covered without spending too much on car insurance. Rates from different companies can be different by hundreds or even thousands of dollars per year.

Shopping around is even more essential if you’ve had tickets, an accident, or if you have a questionable credit rating.

So where to commence? Begin here.

First, figure out how much auto insurance coverage you need. Place laws tend to vary, so construct sure that you know your state’s laws regarding how much coverage you’re required to have. It’s easy to find this information online.

Once you know what’s required, you then have to decide what you need above the requirements. If you’re leasing or making payments on your car, the company you’re contracted with may have auto insurance requirements. Some even require full coverage. Make sure that you’re not contractually obligated into a higher coverage car insurance policy. If you are, then you know how much coverage you need.

Also keep in mind that if you’re talking to an insurance agent, they may try to convince you to get a policy that doesn’t match with what you feel you need. Do your research and stick to your guns. Liability insurance is important if you get into an accident, because if someone else is injured, they can try to go after your assets beyond what your car insurance covers if their medical bills are higher than your liability coverage.

Your financial situation comes into play here as well. Determine what’s in your budget before you accept too deep into shopping for car insurance, and try to stick as finish to your figure as possible, if not lower.

Once you begin shopping, your driving habits may also become an narrate. If you’ve gotten several tickets or been keen in several car accidents, this can raise the cost of your auto insurance.

However, there are other things to take into account. Older cars likely won’t need as distinguished coverage for the vehicle, but some cars are more likely to be stolen than others. It’s important to know how much coverage you need for not just your driving habits, but your vehicle as well.

Once you’ve evaluated this information, it’s time to fetch your records and start shopping. You’ll need your modern car insurance policy information, your driver’s license number, and your vehicle registration. If you intend to shop online, you’ll also need access to computer and the internet. Read my other article on the benefits of shopping online.

You should pay attention to several factors:

Annual and monthly rates for different types of coverage. By keeping the coverage limits the same, you can fabricate straight comparisons on pricing.

The auto insurance company’s payment policy is important. You should know when your payment would be due and the penalties for late payment.

Look for discounts offered by the insurance company that you qualify for.

Look for an 800 number you can call if you have questions that can’t be answered online.

Take sign of things that can lower your rates, like a good driving record, a obedient credit score, and safety equipment on your vehicle. Certain occupations or professional affiliations can also help you procure discounted auto insurance rates.

You’ll also probably want to look up the insurance company’s consumer complaint ratio from your state’s department of insurance website (every situation has one, and google is your friend here), as well as their A.M Best and Standard & Poor’s (S&P) rating.

High risk insurers usually come out the worst in consumer complaint ratios, so you’ll want to keep that in mind. Lower rates doesn’t always mean better. As for A.M. Best and S&P ratings, they can give you an idea of your potential insurance policy holder’s financial strength ratings. For A.M. Best, it’s best to consider companies with a B+ rating or above. For S&P, the highest rating is AAA. Consider companies that have a BBB rating or above. These ratings aren’t for customer service, however, and only list the financial strength of the company. This comes into play if you ever have to file a claim.

Other places you can get good information on potential car insurance companies:

Body shops – body shops tend to work closely with insurance companies because they file claims for repairs. They can sometimes give you good information on the companies they work with.

J.D. Power and Associates’ auto insurance ratings – they do a lot of the research on the best companies for you.

Things to gawk for in the fine print:

Make sure your policy doesn’t infringe on your just to sue. If your policy would force you to give up your right to go to court, you can be stuck in arbitration, which can allow the auto insurance company to take advantage of you. You have two good options here. You can cross out that line and see if the auto insurance company will find the contract, or you can take your business elsewhere.

Also try to avoid aftermarket parts requirements. If there’s a claim and they have to pay to get your vehicle repaired, they may try to cut their costs by trying to put inferior parts into your car. If the contract specifies that mechanics should exercise inferior parts (often given a better sounding name), you should search for a better policy.

Ultimately, your decision should rest on two factors. The reliability of the insurance company based on the criteria listed, and the price of the quote. After all the prep work, it’s not really that hard.

Shopping for motorcycle insurance really isn’t any more complex than looking for any other type of insurance. The rider must be determined that he or she maximizes discounts to get the lowest price, but does not compromise coverage. Many people think that cheap insurance is wonderful, but insurance that doesn’t cover the rider properly is very costly. The purchaser must insure that comprehensive coverage is available if he or she wishes to replace the vehicle at cost. All too often riders contemplate that merely purchasing the legal requirement (liability) is enough to get by. While it is true that legally covering the other person in an accident is enough, what about the replacement cost of your vehicle? Not having a motor vehicle is a bad situation and can often result in job loss. So the best thing you can do is make positive that you know the appropriate coverage for your bike. The best coverage is one that you can afford. This means that if you wreck your motorcycle with only liability coverage, you can afford to either do without it or buy another motorcycle with cash. If you can’t do either of these things, you need to purchase comprehensive coverage.

Next you need to earn a list of potential discounts for your insurer. As a potential customer you should be entitled to discounts. Often you can get good driver discounts, training discounts, student discounts, marriage discounts, new motorcycle discounts and many more types of discounts but only if you have a list of what you are qualified for and work with an insurance company that offers these discounts. You would be surprised what discounts you are qualified for. Some insurance companies give discounts for purchasing on-line or even getting good grades in school. But many potential customers contemplate that they are only entitled to a bundling discount or marriage discount. There are tons of insurance discounts if you know the system and what you are trustworthy for. So a helpful shopper starts with a list of potential discounts before going out to peer. You can easily find a list on-line.

Finally you should explore 3 agents from the major insurance companies. These would be Geico, Allstate and Progressive. Geico and Progressive should provide a motorcyclist with a very comprehensive list of discounts. Geico and Progressive lead the nation with the most motorcyclists insured in the United States. They have perfected motorcycle insurance and the marketing of it. I recommend you check with Allstate because they have made great progress in getting motorcyclists insured and they want to gain more market share. In cases like this, they may be willing to undercut any price you bring for Geico or Progressive. This can have positive effects for you as the potential client. As the economy has worsened, insurance companies are in an all-out war for new customers. This can only benefit you as a person looking for insurance. Good luck in this task and put a bundle.

Sources:

SC Dept. of Insurance

Michigan Secretary of State

PROPOSED LAW HR 3609 TO UPDATE TITLE 11 OF THE UNITED STATES BANKRUPTCY CODE quoted:

“SEC. 2. DETERMINATION OF SECURED STATUS. Section 506(b) of Title 11, the United States Code, is amended by adding at the end the following: `While a case is pending, no fee, costs, or charges may be added to a debt that is provided for in a chapter 13 plan and is secured by the debtor’s principal residence unless the holder of the secured claim gives timely notice of such fee, costs, or charge to the debtor and to the trustee.’. SEC. 3. LIMITATION OF 1978 EXEMPTION THAT PREVENTS FEDERAL BANKRUPTCY COURTS FROM MAKING MODIFICATIONS TO THE TERMS OF A MORTGAGE ON A DEBTOR’S PRINCIPAL RESIDENCE. Section 1322(b)(2) of title 11, United States Code, is amended by striking `, other than a claim secured only by a security interest in dependable property that is the debtor’s principal situation,’. SEC. 4. MODIFICATION OF CLAIMS SECURED BY DEBTOR’S PRINCIPAL RESIDENCE. (a) Contents of Plan- Section 1322(b) of title 11, the United States Code, is amended– (1) in paragraph (10) by striking `and’ at the waste, (2) by redesignating paragraph (11) as paragraph (12), and (3) by inserting after paragraph (10) the following: `(11) provide for payment of allowed claims secured by the debtor’s principal residence consistent with share 1325(a)(5), over a period exceeding the period permitted under section 1322(d); and’. (b) Confirmation of Plan- Section 1325(b)(5) of title 11, the United States Code, is amended by inserting `except as otherwise provided in section 1322(b),’ after `(5)’. SEC. 5. ELIMINATION OF CREDIT COUNSELING REQUIREMENT FOR CHAPTER 13 DEBTORS FACING FORECLOSURE. Section 109(h) of title 11, United States Code, is amended by adding at the end the following: `(5) The requirements of paragraph (1) shall not apply with respect to a debtor in a case under chapter 13 who submits to the court a certification that the holder of a claim secured by the debtor’s principal residence has initiated a judicial or non-judicial foreclosure on the debtor’s principal residence.’. SEC. 6. CONFIRMATION OF PLAN. Section 1325(a) of title 11, the United States Code, is amended– (1) in paragraph (8) by striking `and’ at the end, (2) in paragraph (9) by striking the period at the end and inserting `; and’, and (3) by inserting after paragraph (9) the following: `(10) notwithstanding paragraph (5)(B)(i)(I), the holder of a claim that is paid pursuant to piece 1322(b)(11) shall retain the lien securing such claim until payment of such claim.’. SEC. 7. DISCHARGE. Section 1328 of title 11, the United States Code, is amended– (1) in subsection (a)– (A) by inserting `(other than payments to holders of allowed claims provided for under section 1322(b)(11)’ after `paid’ the 1st place it appears, and (B) in paragraph (1) by inserting `or 1322(b)(11)’ after `1322(b)(5)’, and (2) in subsection (c)(1) by inserting `or 1322(b)(11)’ after `1322(b)(5)’.”

HR 3609 IH, Emergency Home Ownership and Mortgage Equity Protection Act of 2007, 110th Congress, 1st Sess., September 20, 2007. Library of Congress, Thomas, http://thomas.loc.gov/cgi-bin/query/z? c110:h3609.

I. AN INDIVIDUAL’S FINANCIAL LIFELINE.

Troubled times often lead to declining values in the American dollar, real estate and loan/credit defaults and then Bankruptcy. Bankruptcy can be traced abet as far as the Old Testament, “every seven years, debts are forgiven.” (Deuteronomy 15:1-2). The root of the word Bankruptcy comes from “bancus ruptus,” Latin for bench and broken, respectively. Freund, William; Lewis, Charlton T; et al, A Latin Dictionary, Clarendon Press, 1966. For decades, Bankruptcy has allowed consumers room to legally declare an incapacity to settle debts owed to creditors. Most view a Bankruptcy in a poor light, however, when it comes to someone who relies on Bankruptcy, as a interim measure to restructure or obtain back on their feet, sometimes Bankruptcy is the sole option. Federal Law, Title 11 of the United States Code governs the Law of Bankruptcy, which is the law affected with the proposed bill H.R. 3609.

Corporations are downsizing, adding to one’s economic hardships. According to the Bureau of Labor and Statistics, today we have an 8.5% National Unemployment rate . As such, during a period of unemployment, bills are probably not getting paid and Credit Ratings are only becoming increasingly lower. Credit Ratings are composed of a statistical analysis of whether a person is creditworthy or not. Lenders consume this score to calculate interest rates, whether to lend to the individual based on the determination of whether the person will be able to pay them back. Many employers peek at a person’s credit rating and obligation to determine one’s eligibility for a job. Even with solid references and employment history, someone can be denied employment if their Credit Report consists of subjective adverse information. Thus, a Bankruptcy becomes a practical option since employers cannot deny a person employment because they are in Bankruptcy. (§525. Protection against discriminatory treatment, United States Bankruptcy Code prohibits employers from discriminating against insolvency.) Credit counseling is offered and mandated to help debtors manage their credit and spending.

Insurance Agencies also expend the credit rating to determine insurance eligibility and price based on their assessment of uncertainty and insurance loss. House representatives continue to discuss legislation that will regulate the value of credit score insurance valuation. H.R. 5633 proposed the following and is quoted as follows:

“To amend the Fair Credit Reporting Act to prohibit obvious discriminatory uses of consumer reports and consumer information in connection with certain personal lines of insurance, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE. SEC. 2. USE OF CONSUMER REPORTS AND CONSUMER INFORMATION IN A DISCRIMINATORY MANNER PROHIBITED.

(a) In General- Section 604 of the Fair Credit Reporting Act (15 U.S.C. 1681b) is amended– (1) in subsection (a), by striking `Subject to subsection (c)’ and inserting `Subject to subsections (c) and (h)’; and (2) in subsection (c)(1), by striking `A consumer reporting agency’ and inserting `Subject to subsection (h), a consumer reporting agency’. (b) Prohibition on Certain Discriminatory Uses of Consumer Reports and Consumer Information in Connection With Insurance- Section 604 of the Fair Credit Reporting Act (15 U.S.C. 1681b) is amended by adding at the end the following new subsection:

(h) Prohibition on Certain Discriminatory Uses of Consumer Reports and Consumer Information in Connection With Insurance- `(1) IN GENERAL- No consumer reporting agency may furnish a consumer report or consumer information with respect to any consumer to any person for use in making any decision to underwrite or rate any personal lines of insurance, and no person shall consume or obtain a consumer report or consumer information with respect to any consumer in connection with the underwriting or rating of any personal line of insurance, for which the Commission determines, including any finding or determination made in any study for which a relate is submitted to the Congress, that any such use of the consumer report or the consumer information– `(A) results in racial or ethnic discrimination; or `(B) represents a proxy or proxy effect for race or ethnicity. `(2) INSURANCE INFORMATION NOT INCLUDED- Information derived from the following data bases shall not be treated as a consumer portray or consumer information for purposes of paragraph (1): `(A) Databases that contain information on property loss data regarding personal lines of insurance, such as the Comprehensive Loss Underwriting Exchange (CLUE) and Automobile-Property Loss Underwriting System (A-PLUS). `(B) Databases that enjoy information on driver history, such as accidents or moving violations, typically maintained at State departments of motor vehicles. `(C) Databases that acquire information on a consumer’s medical history, to the extent such access and spend for purposes described in paragraph (1) is consistent with the requirements of section 604(g). `(3) EFFECT ON STATE LAWS- Notwithstanding section 625(b)(3)(C), no provision of this section shall be construed as limiting or superseding the application of any State laws or regulations that restrict or prohibit the use of consumer reports or consumer information in the underwriting or rating of any personal lines of insurance. `(4) DEFINITIONS- For purposes of this subsection, the following definitions shall apply: `(A) CONSUMER INFORMATION- The term `consumer information’ means any information from the file on any consumer at a consumer reporting agency, or any product derived from any such information. `(B) PERSONAL LINE OF INSURANCE- The term `personal line of insurance’ means any personal automobile or homeowners line of insurance, as defined in the Uniform Property and Casualty Product Coding Matrix established and maintained by the National Association of Insurance Commissioners (or any successor to such document). `(C) PROXY FOR Hasten OR ETHNICITY- The term `proxy for race or ethnicity’ means a substitute or stand-in for race or ethnicity, either by design or in effect, without regard to the extent of the effect.’”.

H.R. 5633 IH, Nondiscriminatory Use of Consumer Reports and Consumer Information Act of 2008, 110th Congress, 1st Sess., March 13, 2008.

H.R. 5633 was presented to the House Finance Committee to offer a non-discriminatory employ of consumer confidence reports and providing limiting and prohibitory measures. The House members for the bill argued “credit-score ratings penalize consumers because of the business decisions of the lenders, unfairly penalizes consumers who are victims of medical and natural catastrophes, has an adverse and disparate impact on low-income families and credit reports often have incomplete and inaccurate information.” Hunter, Robert J. Consumer Federation of America, The Impact of Credit-Based Scoring on the Availability and Affordability of Insurance, Hearing Committee in Financial Services Subcommittee on Oversight and Investigations – House of Representatives, May 21, 2008. Those members opposed to the bill argue the requirement for credit scoring risk since “[l]ending institutions use credit to determine the likelihood of repayment… The most significant difference between insurers and lending institutions is that insurers never consider income… The latest survey shows that 90.2 percent of automobile insurance policyholders and 90.8 percent of homeowners insurance policyholders either received a discount or were otherwise unaffected by the spend of credit.” Neeson, Charles, Westfield Group on behalf of Property Casualty Insurers Association of America, Hearing before the House Financial Services Subcommittee on Oversight and Investigations, The Impact of Credit-Based Insurance Scoring on the Availability and Affordability of Insurance, May 21, 2008. The H.R. 5633 bill never passed. However, bills are often revisited.

A majority of our states have already enacted some statute which limits the application of credit scores when predicting risk, thus reflecting the issue that consumers are often harmed without restrictions and cram-down provisions. In Folks v. Tuscaloosa County Credit Union, 989 So. 2d 531, 538 (Ala. Civ. App. 2007), an action for a deficiency claim was filed by debtor’s automobile lending company after his vehicle was repossessed. The state of Alabama enacted a statute limiting the use of debtor’s credit score to determine interest rates, in that a setoff approach is dilapidated in order to settle the deficiency. The Alaska Supreme Court decided against the request of an insurance companies use a debtor’s credit net in order to renew insurance, interpreting Alaska Statute § 21.36.460, Uses of and restrictions on credit history or insurance scoring applicable to personal insurance. See State v. Progressive Cas. Ins. Co., 165 P.3d 624 (Alaska 2007).

Under our current Administration and economic situation, views of a person’s insolvency are quickly changing. Analysts acquire Bankruptcy filings will only increase should the new cram-down measures implement. Looking at the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA -amendments to the U.S. Bankruptcy Code) which impacted the way consumer debts are processed by adding more restrictions and measures to alleviate the Bankruptcy process, and how this unique proposed law will reverse some of these restrictions, legislators are quickly recommending and voicing their opinions and perspectives. Our legislators address what a person’s eligibility is for bankruptcy and who decides which assets the debtor will keep. Since the intent BAPCPA introduced was to make a less desirable contrivance to file Bankruptcy (as some say it was too easy), the new proposed act today impacts individuals filing Bankruptcy by requiring now a credit counseling certificate and a segregation of individuals by median income levels. According to the American Bankruptcy Committee, there is not enough historical data to rely on legislator’s true intent, and we must then rely on case history and policy when determining meaning and intent of the statute. Hollowell at 175. Since there is conflict in interpretation among the courts, it is well established this means the analytical framework is not sufficient. Hollowell at id. The required computation called the means test (§1325(b)(3)) – or projected disposable income, determines eligibility. Anyone having an excess of $166 over household expenses is now required to file a Chapter 13, rather than a Choice of either Chapter 13 (reorganization) or Chapter 7 (total liquidation); thus raising the bar of expectation courts have on the debtor and a more complex path to confirming a debtor’s reorganization plan in order to prevent Chapter 7 abuse.

Normally a Chapter 11 Bankruptcy reserves application for a Business Entity reorganization. However, under the proposed Bankruptcy Code, debtors who do not qualify for Chapter 7 or 13, may only have a Chapter 11 option. (See Toibb v. Radloff, 501 U.S. 157 (1991)). §1115, 1123(a)(8), and 1129(a)(15) provide a requirement where a debtor must withhold a percentage of future income to creditors.) This may introduce problems for debtors where there is more flexibility – a good predicament to have.

II. ACTIONS A DEBTOR HAS TODAY THAT MAYBE AFFECTED BY H. R. 3609.

A. Mortgages and Foreclosure

California and other state statutes recognize ways real property may guarantee the payment of debt or plan for some other obligation: 1) mortgage (Cal. Civ. Code §2922); and deed to secure debt; and deed of trust sometimes called the grant deed, or trust deed. Cal Civ Code §1092 provides the benefit of grant deeds to transfer ownership to property. Grant deeds are the most popular instrument used in California. With the proposed law, now valuation will be determinative whether the property guarantees full payment of debt or not. The following explains the relationship between property and security deed.

A mortgage secures an obligation (debtor to pay) with a lien against the debtor’s real estate. Should the debtor default on her mortgage, debtor is still lawfully in possession and control of the title and the lender only has an interest in her property (Cal. Civ. Code §2923). A security deed transfers the title to the lender/mortgagee with an opportunity to direct a foreclosure or take the property. A mortgage would force lenders to proceed through judicial foreclosure, which can be time consuming and expensive. So long as there is a reasonable default, as stated in Ghirardo v. Antonioli, 14 Cal 4th 39, 57 Cal Rptr 2d 687 (Cal. 1996) “there may be only one action for the recovery of a debt secured by a trust deed, which action is one of foreclosure. Although an exception to this one action rule has developed in cases where foreclosure would be an idle act because the security has been destroyed or has become worthless, the exception does not apply if the beneficiary is responsible for the loss of security. When the mortgagee, by his or her own act or neglect, deprives himself or herself of the right to foreclose the mortgage, he or she no longer has a just to an action upon the mark.” (Gawk also Cal. Code Civ. Proc. §726.) Lenders prefer to apply the non-judicial method security deed’s require.

While a security deed (grant deed a.k.a deed of trust) is mostly preferred and used routinely in almost residential and business real estate transactions, a mortgage can be aged by someone unique with California law. Fortunately, laws governing security deeds and mortgages are similar. If the mortgage contains a provision that authorizes sale, it may be foreclosed through a non-judicial exercise foreclosure sale; like the same manner as a deed of trust.

From a Debtor-Borrower’s perspective, if she goes into foreclosure, she may only have a few options. A borrower may choose to sell the property, provide a Deed in lieu of foreclosure, work out some arrangement/loan modification, file bankruptcy and finally go into foreclosure proceedings. The threat of foreclosure brings lenders to an option to negotiate a defaulted loan. July 8, 2008, California legislators passed an amendment of California Civil Code 2923.6, now requiring lenders in the State of California to accept loan modifications if borrowers qualify under the recent requirements. California Civil Code 2923.6 applies to loans made from January 1, 2003, to December 31, 2007, and secured by residential real estate and are owner-occupied.

B. Stay Period, ultimately delaying the Foreclosure

California Senate Bill 1137 is a result of the sub-prime loan market collapse and as an urgency measure. Until this bill, mortgage lenders were under no statutory requirement to communicate its intention to act on a non-judicial foreclosure. This law applies to loans secured by an owner occupying residential real property and loans made between January 1, 2003 and December 31, 2007. These laws will stay in force until January 1, 2013. A new component added to the California Civil Code as follows:

“Until January 1, 2013, and as applied to residential mortgage loans made from January 1, 2003, to December 31, 2007, inclusive, that are for owner-occupied residences, this bill would, among other things, require a mortgagee, trustee, beneficiary, or authorized agent to wait 30 days after contact is made with the borrower, or 30 days after satisfying due diligence requirements to contact the borrower, as specified, before filing a notice of default. The bill would require contact with the borrower, as defined, in order to assess the borrower’s financial situation and explore options for the borrower to avoid foreclosure. The bill would require the mortgagee, beneficiary, or authorized agent to vow the borrower that he or she has the correct to request a subsequent meeting within 14 days, and to provide the borrower the toll-free telephone number made available by the United States Department of Housing and Urban Development (HUD) to find a HUD-certified housing counseling agency. The bill would require the notice of default to include a specified declaration from the mortgagee, beneficiary, or authorized agent regarding its contact with the borrower or that the borrower has surrendered the property. If a notice of default had already been filed prior to the enactment of this act, the bill would instead require the mortgagee, trustee, beneficiary, or authorized agent, as part of the notice of sale, to include a specified declaration regarding contact with the borrower. The bill would authorize a borrower to designate a HUD-certified housing counseling agency, attorney, or other advisor to discuss with the mortgagee, beneficiary, or authorized agent, on the borrower’s behalf, options for the borrower to avoid foreclosure. The contact and meeting requirements of these provisions would not apply if a borrower has surrendered the property or the borrower has contracted with an organization, as specified. The bill would also require specified mailings to the resident of a property that is the subject of a notice of sale, as specified. In addition, the bill would get it a crime to tear down the notice of sale posted on a property within 72 hours of posting, thereby imposing a state-mandated local program.
Until January 1, 2013, this bill would require a legal owner to maintain vacant residential property purchased at a foreclosure sale, or acquired by that owner through foreclosure under a mortgage or deed of trust.” (Cal. Civ. Code §2923.5) (See also American Housing Rescue and Foreclosure Prevention Act of 2008, H.R. 3221, 110th Cong. §§ 401-402 (2008).

The stay period will only delay the foreclosure, in my thought, according to what I have witnessed working in my Law Firm. The issue that the debtor unexcited does not have a job, has not been resolved. Without a job, regardless of the stay period, the debtor will peaceful not be able to pay the mortgage. However, with a stay period, the debtor has time until the new provisions are passed which then the debtor will have the option to file bankruptcy and cram-down the mortgage loan.

C. Deficiency Actions

When potentially-to-be-foreclosed property incurs a lien, at the judgment of foreclosure sells with a deficiency of proceeds to cover the lien, a lender may file a deficiency judgment against a debtor or anyone else liable within the foreclosure of the mortgage (Cal. Code §3151).

“California’s anti-deficiency laws do not preclude a creditor from pursuing all security given to collateralize an indebtedness. Thus, a guarantor of a security deed is not protected against a deficiency judgment.” Hodges v. Brand, 49 Cal. App. 4th 651, 656 (Cal. App. 2d Dist. 1996). Cal Code Civ Proc § 580b lists prohibitory conditions applying deficient judgments .

In order to place a deficiency action after a foreclosure sale, the lender must, within 30 days of the sale, report the transaction to the court and file with the clerk an application for an order confirming the sale. (Cal. Civ. Proc. §580(b)) The mortgagee must point to the land sold for its true market value. In order to carry this burden of proof, the lender should have the property appraised shortly before sale by at least one MAI certified real estate appraiser and be willing to bid on the property in an amount comparable to the appraised value. The foreclosure bid will repay the indebtedness to that extent; therefore; it is imperative the lender bid the appraised value of the property in a deficit situation with a correct legal description. (Clayton Development Company v. Michael P. Falvey, 206 Cal. App. 3d 438)

Unless the debtor appears financially sound, it is probably not helpful waste efforts obtaining an appraisal, pursing confirmation and filing a deficiency action. However, some lenders may be under instructions from governmental agencies (Fannie Mae, Freddie Mac, etc.) or mortgage insurers to cure the deficiency rights in all cases.

“California’s anti-deficiency laws do not preclude a creditor from pursuing all security given to collateralize an indebtedness. Thus, a guarantor of a promissory note secured by a deed of trust is not protected against a deficiency judgment.” Hodges v. Heed, 49 Cal. App. 4th 651, 656 (Cal. App. 2d Dist. 1996).

In order to file a deficiency action after a foreclosure sale, the lender must, within 30 days of the sale, picture the sale to the court and file with the clerk an application for an order confirming the sale. (Cal. Civ. Proc. §580(b)) The mortgagee must note the property sold for its right market value. In order to carry this burden of proof, the lender should have the property appraised shortly before sale by at least one MAI certified real estate appraiser and be prepared to grunt on the property in an amount equal to the appraised value. The foreclosure bid will satisfy the indebtedness to that extent; therefore; it is imperative the lender bid the appraised value of the property in a deficiency position. (206 Cal App 3d 438)

Unless the debtor appears financially sound, it is probably not worthwhile to exercise the time and money alive to in obtaining an appraisal, pursing confirmation and filing a deficiency action. However, some lenders may be under instructions from governmental agencies (Fannie Mae, Freddie Mac, etc.) or mortgage insurers to preserve the deficiency rights in all cases.

A probable effect of the H.R. 3609 is the new proposed law will cram-down any deficiency above actual (appraised) value of the property.

D. Priorities

Home loans are always given a priority over other types of loans since they have high collateral value (a secured claim based on the value of the home). This means the priority of a lien applied in a home loan will generally be first. Lien priorities are charged on a property for payment of a debt on the property. Federal and state laws determine the priority of liens, i.e. federal tax liens will typically be given top priority (paid first); peruse Slodov v. United States, 436 U.S. 238, 257-58, 56 L. Ed. 2d 251, 98 S. Ct. 1778 (1978). “[S]tate law dictates the existence of property interests, but the priority of those interests with respect to other portions of the tax law is an jabber of federal law.” Bednarowski & Michaels Dev., L.L.C. v. Wallace, 293 F. Supp. 2d 728, 732 ( E.D. Mich. 2003). “A preexisting lien, i.e., a tax lien, encumbers whatever property the lienee thereafter acquires.” Wallace, 293 F. Supp. 2d at 733.

Lien Priorities are dealt with repeatedly in Foreclosure actions. Today, actual estate property may contain multiple types of liens filed against it including a Trust Deed, a Federal Tax Lien, a Construction or Mechanics Lien. Some properties may also include a First and Second Mortgage Trust Deed, Homeowner Association (HOA) lien, or Delinquent Property taxes. Generally, lien priority attaches when the lien is recorded and expressly prioritized with the County Recorder. As such any transactions occurring during a loan re-work or foreclosure sale, it is necessary to search for any liens attached to the property.

In the United States we fight to retain our right to own property over any other right. Prioritizing home loans over all others clearly supports this policy. The cram-down goal is to give the home owner incentive to pay as much to their home loan as possible by reducing their lower priority – unsecured debt in order to free up extra cash to pay down the mortgage/home loan.

E. Loan Modifications

The decline of the American economy has led to an increase of loan modifications in order to put lender’s assets back into a working-asset rather than a loss and write-off. When a loan is modified, usually a) the loan maturity date shortens (the loan is due at an earlier date), b) the interest rate increases, or c) the entire amount of debt owed is increased. This is considered a material modification that would adversely affect the debtor and any subordinate lien holder on account.

“Despite the waiver as to application of loan proceeds, the court held that public policy requires protection of subordinating sellers and that a lender and a borrower may not bilaterally make a material modification in the loan to which the seller has subordinated, without the knowledge and consent of the seller to that modification, if the modification materially affects the seller’s rights.” Gluskin v. Atl. Sav. & Loan Assn., 108 Cal. Rptr. 318, (Ct. App. 1973). In Gluskin, Jack Gluskin owned 172 lots of land which he sold to the corporation Pathfinder under a promissory note secured by the Trust Deeds for the land plus fifty percent of profits on the sale of these new developments. Pathfinder then borrowed money from Atlantic Savings and Loan in order to construct a housing development on the land. And thus when Pathfinder defaulted, the issue ascended on whether a loan modification made without Gluskin’s consent, created a priority Atlantic has over Gluskin since in the Gluskin Trust Deed contained a subordination provision expressly stating Gluskin subordinated under Atlantic’s Trust Deeds and that loans were given in reliance on the subordination. Here the Appellate Court reversed the lower court’s ruling for Atlanta since there was no finding of the fact that Gluskin had consented to this modification.

Shane v. Winter Hill Fed. Sav. & Loan Assn. raised the inquire of about a loan modification where interest raised on a first mortgage applies to the second mortgage. In this Massachusetts court, trustee Richard Ross provided a $450,000 mortgage and deed for the Winter Hill Federal Savings and Loan Association for a property on Turnpike Street, Canton, Mass. Two years later, Ross executed a second mortgage for $100,000 on the aforementioned property, to a Realty company. The realty company had agreed to take on an option to cure a default by Winter Hill, by increasing the first mortgage’s interest rate. When Winter Hill defaulted again, they also notified the realty company of its intent to foreclose. The realty company also purchased the property subject to the first mortgage, and then filed claims against Winter Hill for the raise in interest. The realty’s interest was only that they had a claim in the security of the property, and had requested peep of any default and then have the option to rectify it and not be race by any interest rate agreements she was a junior interest thereto. The court held that the interest rate increase agreed between the Ross and Winter Hill without notice to the Realty company, did prejudice the Realty company and they will not remain bound to that agreement as they were the second mortgagees.

Courts seem to quit more lenient applying loan modifications that have minimum impact on the debtor and may in some cases be of benefit to junior liens. Where loan modifications a) extend the maturity date, b) defer interest, c) reduce the interest rate or d) slit the loan amount, the extensions seemingly keep a lender’s property back to a working and active status. Also, these types of modifications should not adjust the lender’s priority.

In Resolution Trust Corporation v. BVS Development, Inc., land developers sold land in exchange for deeds of trust for construction financing with subordinate interests, from Concord-Liberty Savings and Loan Assn. who partnered with Resolution Trust Corporation. When the development project soured, and the land developer’s defaulted on a $2.6 million loan, the lenders filed a foreclosure action. Defendant land developers argued that when their maturity date was extended, the subordinate clause was not appropriate and also cite the rule from Gluskin that the extension loan modification had not been consented had thus adversely affected their lien dwelling. Here however, the amendment did not expand the chance of default, like it did in Gluskin. The land developers in fact, had more time to pay at the equivalent rate, unlike Gluskin where time was reduced and interest was increased.

“[T]he extension was made at a time when the borrower was in difficulty; it could be reasonably argued the extension gave the borrower a chance to turn itself around and pay off its debts. By itself, the extension cannot be said to be a material modification requiring an adjustment of priorities as a matter of law.” Lennar Northeast Partners v. Buice, 49 Cal. App. 4th 1576, 1584 (Cal. App. 3d Dist. 1996). Here the interest rate changed from a variable to a set rate. The maturity date was extended as well as the principal amount in order to support the Trust company-debtor regain control of payments. The lower court ruled Trust company no longer had a priority claim since they modified the terms of the agreement. This Appellate court reversed ruling no material modification or prejudice to the subordinate lien holders.

The novel 1322 (b) statement striken “other than a claim secured only by a security interest in exact property that is the debtor’s principal residence[,]” modifications will be allowed to a debtor’s distinguished residence. We are looking at cramming down the value of the property to what its actual value is today in order to free up extra cash applied to other unsecured and lower priority loans. This should not be considered a material modification since it is a best-effort to pay those we owe in the fairest map possible.

F. Title Insurance

Since valuation is at stake here and title insurance covers the actual value of the property, two major organizations should be discussed regarding insurance related to accurate estate; The American Land Title Association (ATLA) and the California Land Title Association (CLTA). ATLA and CLTA provide title insurance endorsing that the property at issue is free and easy to transfer and provides certain assurances. When mortgage loans are modified, ATLA will not guarantee any subsequent agreements than the first policy contracted on the land. There are other coverage options that will require extra protection and endorse modifications set forth in ATLA Originate 11 and CLTA Gain 110.5. However, as mentioned in Gluskin, Shane and RTC, courts do not favor material modifications that prejudice junior lien holders; so long as Form 11 and Design 110.5 do not contain a material modification, the title insurance coverage value should be ascertainable.

To be exhaustively diligent, the title to the property should be examined early in a foreclosure proceeding. A full title examination would, of course, be the most useful in that it would reveal any defects in the mortgagor’s title existing when the security deed was executed. However, where an attorney is provided with a mortgage title insurance plan (obtained when the security deed was executed) it is customary to conduct a restricted title examination coming forward from the date of the security deed (2008 Cal ALS 80, Cal. Code Civ. Proc.§880.020(a)(4)). The title insurance policy should be provided to an attorney at the outset (Cal Ins Code §1063.1).

The limited title examination should include a search of the following public records; 1) deed records, 2) federal tax lien docket, 3) lis pendens docket, 4) bankruptcy records and 5) possibly probate records. It is also recommended to check the bankruptcy records shortly before a foreclosure sale. These factors are simply a guideline and to be sure all bases are covered, and to be sure your property does not contain any hindering constructs that Title Insurance may not cloak.

I will highlight significant factors to know:

1. Deed Records.

The deed records kept by the Clerk of the Helpful court in the count which the land lies should be examined to ascertain the names of all persons who have held right to the property since the execution of the security deed. A chain of title is needed in order to withhold evidence of ownership.

Only litigation which goes to the validity of the security deed or the right to foreclose should stop the foreclosure sale. Any other litigation regarding the property concerns rights of parties which are subject to the security deed and thus subject to foreclosure (Cal. Code Civ. Proc.§ 880.260 (a)(1)).

If the lis pendens docket reveals the property in foreclosure is in the custody of a receiver, the foreclosure should immediately cease. Such property is in the custody of the court appointing the receiver, and its assets may not be interfered with unless the mortgagee intervenes in the proceeding and obtains authorization to foreclose. Where the due date is ascertainable from the record, the 10-year limitations period of Civ. Code §82.020(a)(1), applies. Any recorded document that contains the due date of the note secured by the trust deed in question will suffice. Slintak v. Buckeye Retirement Co., L.L.C., Ltd., 139 Cal. App. 4th 575 (Cal. App. 2d Dist. 2006).

2. Bankruptcy Records.

The filing of a bankruptcy petition automatically enjoins a foreclosure against property of the debtor and of the insolvency estate (11 U.S.C.A §362(a) – automatic stay). All foreclosure activities should be dropped upon generous notification the present owner has filed bankruptcy. Failure to end the foreclosure could result in the lender’s (and perhaps the attorney) being held in contempt of court. Furthermore, a foreclosure sale conducted in defiance of the quit is void. Before proceeding with foreclosure, the lender must either achieve a court order lifting the quit or wait until the stay otherwise terminates under 11 U.S.C.A §362. Debtors or their attorneys generally notify the foreclosing lender of a bankruptcy filing, but not always. Therefore, it is recommended to check the Bankruptcy Court records to ensure the present owner has not filed. Since bankruptcy filings are often take spot at the eleventh hour, the bankruptcy records should be checked shortly before the foreclosure sale date.

3. Federal Tax Liens.

A tax lien against anyone in the chain of title recorded must be dealt with in a specific manner. The trust deed will possess its priority over subsequently filed federal tax lien. 26 U.S.C.A §7425 (b). Without IRS notice or consent, the federal lien will remain on the property superior to the purchaser’s title obtained at sale. The purchaser may apply for a Certificate of Discharge From Federal Tax Lien, however. 26 U.S.C.A §6325 (b).

4. Probate Records Need Not Be Examined.

A honest of sale in the security deed is a power coupled with an interest and is therefore irrevocable so that the power may be exercised regardless of the death of the mortgagor. In California, a trust state, when a trustor has died, the successors in interest are entitled to receive notice of default under certain circumstances. Essentially, proof of interest must be filed in the county where the land is located. It must provide constructive notice to the trustee prior to the recording of the inspect of default. Further, it must supply an address to which notices may be mailed. The trustee should try to track down successor’s but does not include the duty to. See Estate of Yates, 25 Cal. App. 4th, 511 (1994).

In light of the title, with a due diligent search, the proposed cram-down should not have any affect on the insured amount of your property so long as modifications made have not been determined material.

III. AN UNREGULATED INDUSTRY LEADS TO FRAUD

The Sincere Estate Settlement Procedures Act (RESPA) section 6, 12 U.S.C. 2605, provides consumer protection with the mortgage-industry loans. The debtor may send a Obliging Written Put A Question To to the lender who in return must provide a written acknowledgment. During a suspension period, the lender cannot report to any consumer credit agencies (i.e. Equifax, etc). A debtor may also file a private lawsuit for a RESPA violation and noncompliance. The problem is that these written requests are often ignored and usually a strategy to obtain a discontinue order.

In my opinion, Consumer Protection is thinly spread between too many agencies. The Consumer Protection Agency, the Federal Trade Commission and the Securities and Exchange Commission all stake claims on protecting consumers. Loan servicers are usually a secondary party working for a profit. When a loan goes into foreclosure, more fees are tacked on. Because of itsy-bitsy to no regulation in the mortgage industry abusive behavior tends to generate and fuel the already-stressed housing crisis.

Frustrated Homeowners deal with tacked on fee after fee, some services which have not even been performed (i.e. pre-paid charges for future overdue fees and inspection costs). Law Firms, such as mine, see these fees have a immediate impact on the increase of foreclosures since those fees only add to their monthly payments which sustain increasing, the homeowner can no longer pay their monthly rate and thus default.

With further regulation which will be added with the new proposed bill, I believe unusual administration will be able to identify, manage and address complaints with ease. I also believe ignored complaints will lessen since these complaints will now be moot if the court will now be addressing the root of the plight – valuation of the total debt.

IV. CRAM-DOWN EFFECTS.

This proposed bill may encourage more Chapter 13 bankruptcy filings. The Helping Families Save their Homes Act and HOPE for Homeowners is a rescue plan. President Obama is initiating so borrowers will have an opportunity to re-work their loan payments and pay all their debts without losing a home in foreclosure. The bill offers that legislation reimburse lenders part of their loss should a debtor is in a Chapter 13 and sells the property. Director Peter R. Orszag, of the Congressional Budget Office, analyzed forthcoming legislation and believes “the bill as a whole… would increase the budget deficit over the next decade, incur larger losses… higher coverage levels and insured deposits… gradually offset with higher future premiums.” Orszag, Peter R., Congressional Budget Office, Letter to Chairman Christopher J. Dodd- Chairman on Committee on Banking, Housing and Urban Affairs- United States Senate, October 1, 2008. The plan, designed to secure and manage failing and troubled assets will require additional administrative costs. The resale values will be hard to ascertain. Orszag believes proceeds gained in sales and future valuation increases will be less than the entire acquisition cost this government will continue making.

While Chairman Orszag proves a reasonable point, the solutions used today cannot be applied in today’s world economy. It is clearly failing. Without some change that will jumpstart our economy, we will continue on the spiral downward turn. A different strategy will produce a novel mechanism (i.e. The Energy Improvement and Extension Act of 2008 is another method to move our economy). The key here is to conserve where we never have before in order to unlock new avenues of financing and spending.

As you see, the tide of foreclosure is bringing heavy, quick-moving change. Presently, Bankruptcy Judges do not have the right or authority to unilaterally create mortgage loan modifications. Also, now loan modifications are usually worked by private consumer companies and law firms, mine included. Cram-down supporters say a cram-down is the ideal tool that encourages lenders to provide loan modifications for their borrowers. The cram-down bill allows federal judges to modify note terms, decrease interest rates and mortgage loan balances of bankrupt homeowners. It also will permanently extend the Federal Deposit Insurance Corp.’s insured coverage to $250,000. Nay-sayers believe cram-downs will create higher interest rates (higher costs to regain a loan) and an even-tighter credit market.

Those opposed against the proposed bill say these additions are unnecessary provisions. One provision allows bankruptcy judges the authority to change the mortgage loan terms, like the loan balance, in a Chapter 13 bankruptcy proceeding. When we allow judges to command these changes, a question arises as to how the collateral value of the property at issue is calculated. Many scare an economic impact. Most of the lending community (including the American Bankers Association and other Republicans) stands against the proposal declaring mortgage rates will increase, forcing lenders to require larger payments up front in order to account for the newly added risk.

I will discuss.

Bifurcation

Bifurcation means a forking; a division into two branches. Section 506 of the title 11 United States Code (a.k.a. cram-down provision) authorizes bankruptcy claims to be bifurcated or split into secured and unsecured claims. §506 (a) maybe applied to Chapters 7, 11 and 13 claims. Courts are split, however, as whether to allow bifurcation or not. Watch In re Mordred J. Richards et al. v. Federal Home Loan Mortgage Corp., 151 B.R. 8, *; 1993 Bankr. LEXIS 284, **; Bankr. L. Rep. (CCH) P75, 145; 28 Collier Bankr. Cas. 2d (MB) 626. 11 U.S.C 506 provides the following:

“(d) To the extent that a lien secures a claim against the debtor that is not an allowed secured claim, such line is void, unless -

(1)such claim was disallowed only under section 502(b)(5) or 502(e) of this title; or
(2)such claim in not an allowed secured claim due only to the failure of any entity to file a proof of such claim under section 501 of this title.”

Applied to fraction 1325 (a)(5) as follows:

“(a) Except as provided in subsection (b), the court shall confirm a plan if — …

(5) with respect to each allowed secured claim provided for by the plan — …
(B)(ii) the value, as of the effective date of the plan, of property to be distributed under the conception on account of such claim is not less than the allowed amount of such claim…”

Judge Feeny in Richards cites and summarizes various district court decisions in conflict with the interpretation -thus clearly ambiguous– the “denial of bifurcation would be a windfall to mortgagees whose worthless unsecured mortgages would continue to encumber debtors homes to the extent of the debt after Chapter 13. This result would counter to the reorganization provision of Chapter 13 premised upon the retention of assets and the novel start policy of the Bankruptcy Code.” With the current provision the conflict of whether to bifurcate claims or not will likely be resolved since the courts will now be able to revise the loyal secured claim amount.

Valuation of the property is “fixed at the time of plan confirmation,” Richards at 30. The result then under HR 3609, would be fresh asset value of homes will be significantly lower than what was originally mortgaged. The cram-down value will then be lower and the debtor pays less. Then, of course various arguments arise as to whether the loan is really secured or not since the actual value is much lower. I will not address these arguments here. My goal is to simply answer the question at issue which I do not contain security is at issue – only valuation and added costs.

Filing Bankruptcy

“Under chapter 13 of the Bankruptcy Code, unless the debtor surrenders the property securing the lien to the holder of an allowed secured claim provided for by the plan or such holder accepts the plan, a chapter 13 plan that provides for a secured claim may not be assured of confirmation without a cram down provision comporting with portion 1325(a)(5)(B). Chapter 13 cram down is comprised of two essential elements, lien retention and equivalent value, distributed in accordance with certain rules each of which must be provided for under the chapter 13 plan itself.” Collier on Chapter 13 Cramdown, 2008 Emerging Issues 1253. In today’s market, with declining housing markets, unemployment rates rising steadily our legislators are taking action in order to stabilize what we already know is a declining economy. Most understand the definition of cram-down as “a court-ordered reduction of the secured balance due on a home mortgage loan, granted to a homeowner who has filed for personal bankruptcy.” Finance and Business Terminologies, http://www.answers.com/topic/cram-down.

A think will then identify the actual value of the home as the secured value, and the deficient balance as unsecured, then prioritized as such. Example: A bankruptcy think considers a $400,000 property value that contains a $350,000 first mortgage and $50,000 unsecured debt. He can then allow $350,000 to the first mortgage holders, and cram-down the $50,000 unsecured debt to $10,000. With proposed law HR 3609 a judge may alter the secured and unsecured debt as he sees it and to justify what the debtor actually owes maybe too much. If a debtor is making payments on a $200,000 mortgage on a home valued at $120,000, that debtor is paying over-the-top an unjust amount and thus not in compliance with §1325 (a)(5)(B)(ii).

Basic Contract rules provides when asset valuation declines rapidly due to unforeseen market changes, parties to that contract may be excused from performance due to commercial impracticability or courts tend to back contract modifications. “When the occurrence of an unforeseen event would cause a promisor to bear and unexpectedly large loss in performing her contractual obligation, the parties might renegotiate and modify the promisor’s contract… The well-liked law doctrines of impossibility and commercial impracticability release the promisor from her obligation on the grounds of an unforeseeable supervening event that increases the cost of either literal performance or damages liability to a level beyond the anticipated values at the time of contracting.” Triantis, George G., Unforeseen Contingencies. Risk Allocation in Contracts, University of Virginia Law School (1999). It is sure with today’s market changes, the debtor’s value has significantly decreases and must be allowed and addressed with modification.

Section 5, H.R. 3609 Elimination of credit counseling requirement for chapter 12 debtors facing foreclosure, offers to strike from section 109 (h) of Title 11 “shall not apply with respect to a debtor in a case under chapter 13 who submits to the court a certification that the holder of a claim secured by the debtor’s principal residence.” This somewhat loosens the restrictions for what may or may not be of relieve to the debtor. Under credit counseling advisement, a person must understand the root of the financial problem. Sometimes it may only be a hardship where no matter how much credit counseling one gets, you would still have to file bankruptcy (i.e. medical costs for an unexpected accident or sickness).

V. Conclusion

H.R. 3609′s biggest impact here will be actual property valuation. Declines in property values are at the forefront. Homes that mortgaged at $200,000 may only be worth $120,000 today. While the new administration maybe and probably will be required to manage activity proposed here, I am not convinced this will negatively impact the current Mortgage business today. Will it stop excessive fees? Probably. Does that impact mortgagees? Yes. However, the leverage of these new rules will only help manage false activity. Will title insurance coverage be affected? Yes, but only in the sense of what property will be automatically valued by the court. Credit Counseling will no longer be another hurdle to jump. Since managing a credit report should be a job in itself, and identity fraud is at it highest, we cannot solely rely on credit report updates. That said, I believe opponents of the bill provide reasonable arguments; but do not address any other avenues resolving the conflict. If we march forward under the same rules and regulations, we will continue to spiral downward. I believe the change will a better influence and will allow debtor/homeowners the relief they need to save their most prized-possession-their home.

Raze Notes:

“Persons are classified as unemployed if they do not have a job, have actively looked for work in the prior 4 weeks, and are currently available for work. Persons who were not working and were waiting to be recalled to a job from which they had been temporarily laid off are also included as unemployed. The unemployment rate represents the number unemployed as a percent of the labor force.” (Bureau of Labor and Statistics, as of May 4th, 2009)

2 “No private employer may terminate the employment of, or discriminate with respect to employment against, an individual who is or has been a debtor under this title, a debtor or bankrupt under the Bankruptcy Act, or an individual associated with such debtor or bankrupt, solely because such debtor or bankrupt” (Title 11 sec. 525 (b) U.S. Bankruptcy Code)

3 See Hollowell, Eileen W., Levitt, Kathleen, et al; First This Way, Then That Way -Conflicting Interpretations of BACPA, American Bankruptcy Institute, Consumer Bankruptcy Committee, Volume 4, Number 2 (2007); http://www.abiworld.org/committees/newsletters/legis/vol4num2/1.pdf. A bankruptcy judge and Chapter 13 Trustee and others came together to discuss the importance of using plain language statutes provide and when ambiguous, a statute should be revisisted.
See In re Hardacre, 338 B.R. 718. The court here sorts out the meaning of projected disposable income and actual disposable income and the means test applied.

4 Deed in lieu of foreclosure. This is usually feasible only if the property is free from junior liens and encumbrances. There is, however, a risk of the conveyance being subsequently plot aside by a bankruptcy court as a preferential transfer if the property was worth substantially more than the indebtedness. If this method is veteran, the mortgagor should be required to sign an estoppel and solvency affidavit in addition to the deed. The mortgagee may also want to consider including non-merger language in the deed and not releasing its security deed for some time after the transfer to insure that it as least retains its secured position in the event a bankruptcy court should set aside the conveyance. GBJ, Inc., II v. First Ave. Inv. Corp., 520 N.W.2d 508 (Minn. Ct. App. 1994).

5 The filing of a bankruptcy petition automatically enjoins a foreclosure against property of the debtor and of the bankruptcy estate (11 U.S.C.A §362(a) – automatic stay). All foreclosure activities should be dropped upon proper notification the current owner has filed bankruptcy. Failure to stop the foreclosure could result in the lender’s (and possibly the attorney) being held in contempt of court. Furthermore, a foreclosure sale conducted in violation of the stay is void. Before proceeding with foreclosure the lender must either obtain a court order lifting the stay or wait until the stay otherwise terminates under 11 U.S.C.A §362.

6 California Civil Code 2823.6(a) states that “a servicer acts in the best interest of all parties if it agrees to or implements a loan modification where the (1) loan is in payment default, and (2) anticipated recovery under the loan modification or workout plan exceeds the anticipated recovery through foreclosure on a net present value basis.” California Civil Code 2823.6(b) now provides “that the mortgagee, beneficiary, or authorized agent offer the borrower a loan modification or workout notion if such a modification or plan is consistent with its contractual or other authority.”

7 397 Mass. 479; 492 N.E.2d 92; 1986 Mass. LEXIS 1291

8 42 F.3d 1206, *; 1994 U.S. App. LEXIS 34123, **; 94 Cal. Daily Op. Service 9295; 94 Daily Journal DAR 17208

9 “For purposes of this subsection, a qualified written request shall be a written correspondence, other than notice on a payment coupon or other payment medium supplied by the servicer, that–(i) includes, or otherwise enables the servicer to identify, the name and sage of the borrower; and(ii) includes a statement of the reasons for the belief of the borrower, to the extent applicable, that the account is in error or provides sufficient detail to the servicer regarding other information sought by the borrower.” (12 U.S.C 2605 (e)(1)(B)).

10 Better Business Bureau, report # unknown, author unknown, submitted March, 2009.

11 Bifurcation. Webster’s Dictionary, Merriam-Webster 11th Edition (2007).

Tracking down the best rates for auto insurance can be a complex process, especially if you want to review different plans in detail and catch the most accurate rates. However, there are several online auto insurance quote providers that can make this search and review process easier.

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Here’s a end look at how this process works:

Process of Getting an Auto Insurance Quote Online

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When you receive the quotes, you will be able to see a variety of options from each insurance provider. When you seize a plan or program, you may be taken directly to the insurance provider’s website to complete the rest of your application and confirm your application with a representative over the phone. Some quote providers eliminate this extra step and allow you to complete the entire application from start to finish from their website.

Online Auto Insurance Quote Providers

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Factors that Affect Your Auto Insurance Quote

One of the biggest benefits of requesting auto insurance quotes online is saved time; instead of visiting each insurance provider’s website to submit your information for a quote, you can submit your information one time on an quote provider’s spot and get instant quotes from several insurance companies at once. However, the downside to this process is that the quotes received will only be an estimate.

Your actual rate may vary significantly after the insurance provider has reviewed your driving portray and determined your level of eligibility for different rate programs. Factors that affect your final auto insurance quote, and that aren’t taken into consideration when you submit your initial information for a quote, include:

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-Level of insurance coverage you had previously

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Years of driving experience

-Number of theft protection devices on the vehicle

“From the first establishment of (trade) which served reciprocal but not common purposes, a process has been going on for millennia which, by making rules of conduct independent of the particular purposes of those concerned, made it possible to extend these rules to ever wider circles of undetermined persons and eventually might make possible a universal peaceful order of the world.”[1]

Introduction

Rather than seek to establish forth theories founded upon the opinions of F.A. Hayek, the mission of this essay is to use all the wisdom available pertaining to the subject, which wisdom stretches far beyond one person.

Untried Principle

“Christianity might be a obedient thing if anyone ever tried it.”-George Bernard Shaw-[2]

The dismissing of trade’s usefulness for the promotion of civilized principles as naïve could very well be compared to the above statement. The concept of truly free trade stands as an untried principle, shoulder to shoulder with thousands of unapplied theories. Why has the idea been so discarded? Often, the reason for so doing is in pursuit of human rights. These human rights stem from basic morals espoused by the classical liberals, affirming man’s natural freedoms.

Arguments posed against free trade are consistently fervent in pointing out how capitalism runs counter to these ideals of natural freedom, and how capitalism must be kept in check in order to ensure those freedoms. So many forget that trade in and of itself is a moral value, consisting of quid pro quo, which religion and philosophy have taught as truth for centuries. Those who argue that the ethics of human rights overrule the principle of free trade, relegate one moral behind the others. Unfortunately, such is the position we find ourselves in at this time.

A Lack of Trust

Trust is the concept entirely lacking in the debate. This essay seeks to display how trust in government, and not in the governed, is what keeps the world from becoming a more peaceful place.

The thought in the individual and the individual’s propensity for doing good has been shrugged off as wishful thinking. Many follow a Hobbesian approach, thinking instead that mankind’s existence as a whole is “solitary, poor, disagreeable, brutish, and short.”[3] To overgeneralize not being among the least of sins, such an approach (while convenient) is not called for. We must discover to and trust the individual, inasmuch as at an individual level, the process toward peaceful civilized behavior begins.

How far is the individual to be trusted? Gibbon stated emphatically in his Decline and Fall of The Roman Empire that “History is little more than the register of the crimes, follies and misfortunes of mankind,”[4] showing that the preponderance of evidence points towards a probative attitude towards the governed. Still, such estimations defraud the individual, propagating injustice, malice and contention. Among societies that value equality, who is being dealt with equity? The answer lies within the definition of trust.

Peaceful, Civilized Behavior

The idea of the social contract (postulated by both Hobbes and Locke) involves giving up some rights for the protection of others. These forfeited rights act as the trust (consent) of the governed in (to) their government. Locke described the fundamental rights of “life, liberty, and estate”[5] as those worthy of being protected. Inherent and intrinsic in that protection is the government trusting the individual. It is the individual’s life, the individual’s liberty, and the individual’s estate that is necessarily protected. Any incursion of governmental authority is justified when it involves protecting these three quintessential rights. Historically, the government’s trust in the individual’s judgment of what is best for their estate and how to increase their property has been diminishing. Government regulates, taxes, monitors and decides. Government is set at odds with the individual, creating distrust between the protected and the protector. This dissociation destroys peace by creating sides instead of a cooperative.

Whereas peaceful nature is hindered in the place by a lack of trust, it follows that even civilized behavior has a difficult time flourishing in such an environment. In a society where trade choices are limited by criteria, statute and excessive taxation, the breathing organism of civilization is anesthetized into a stillborn plan. Entrepreneurship and foreign investment in countries with higher taxation and regulation for social programs is consistently dismal.[6] Civilization progresses under the auspices of commerce. Oxford’s English Dictionary defines civilize as “to bring out of a less developed stage of society.”[7] Again, the belief of economic increase here is applicable. Mistrust of individual commerce has led to the regulation of it, creating punishment for personal proactivity and development. Such regress stands opposed to the idea of civilization.

Peaceful, Civilized Behavior II

While we have discussed how loss of rights to free economic intercourse creates discord in the social contract, and regression in civilization, we have yet to examine how the exposition of those rights encourages peaceful, civilized behavior.

First, to civilize. Using Oxford’s definition, we are led to believe that in whatever free trade must do to carry out the purpose of civilizing, it must “bring [the individual] out of a less developed stage.”[8] The individual is in a less developed stage when they commence the process of increasing their estate. Actions such as investing, consuming, and selling enhance the development of the individual. He learns practical application of mathematics, history and trends, and even social psychology. The individual is able to glance and overcome problems because commerce has made him a plight solver. Commerce has brought him out of a less developed stage. To civilize is not to imbue the individual with civil rights. Rather, it is to broaden and deepen his understanding of society and motivation to do good. Civilization is elevation. By eliminating barriers to investing, consuming and selling extant because of taxation, the individual is given the opportunity to finally make good of that which nature has already blessed him.

Peace is established when status specific duties are competently performed. When those who govern have the best interests of the individual’s fundamental rights in mind, and work to protect them, government earns the trust (consent) of the governed. Revolts brought on by taxation have been justified, only when the government being protested has infringed upon the basic liberties afforded the individual by nature.

Is peace relative? Free trade is not about to bring world peace, even at its most liberated. Instead, free economic intercourse between individuals, is by its nature, peaceful. The Spanish word for business, negócios, denotes the unruffled exchange inherent in the action. While some would like to point out the similarities between business and warfare, less polemic etymologies exist:

1. Economy – Greek origin, originally household management[9]
2. Trade – English origin, German equivalent is Handel, implying the hand[10]

Of note is the idea of trade involving the hand, and the detached nature inherent in the extension of it in Western culture.

Universal, Peaceful Order

Final consideration must be paid to the idea of a peaceful universal order in connection with the virtues of free trade. Of all the ideas discarded as naïve by fresh generations, the concept of a serene universal order is the most out of arrive. To call such a notion intuitive is not enough; it is revolutionary.

In the same way that peaceful, civilized behavior could only be promoted by the development of mutual trust between government and the governed, a unifying, universal peaceful order of the world would necessitate a deeper human value than trust. Such an endeavor would require understanding. While free trade deepens the personality, and enhances the human experience, it cannot provide understanding. Understanding requires a human relationship between the individual and other individuals that free trade alone does not offer.

John Gunther, in writing about post World War II Communist Hungary said:

“The true reasons [for Hungarian prosperity] probably reside not in lenience by the authorities, but in the national character.”[11]

For all applicable reasons, free trade will not save the world. Free economic intercourse is designed so as to originate individuals of trust and peaceful purpose. Where regulatory hindrances vanish, peaceful, civilized behavior as described herein abounds. Until that trust is accentuated by understanding, until individuals view other individuals as more than mere consumers and strangers, peaceful, civilized behavior will not give plan to universal peaceful order of the world.

[1] Hayek, F.A. Studies In Philosophy, Politics, and Economics. Chicago University Press, 1967, p.168

[2] Shaw, George Bernard. The Sayings of George Bernard Shaw. Ed. Joseph Spence, Duckworth Publishing, 1995, p. 34

[3] Hobbes, Thomas. Leviathan. Broadview Press, London, 2001, Chapter 13. Hobbes’ idea of a leviathan, or ruler being needed because of flawed human nature precludes the multiplicity of individuals for whom life is not as described above.

[4] Gibbon, Edward. Decline and Fall of The Roman Empire. Modern Library, New York, 2005, Vol I, Chapter 3

[5] Locke, John. Two Treatises of Government. Cambridge University Press, 1988, Chapter 2, section vi

[6] Aarsteinsen, Barbara. Talk to us, U.S. investors say. Vancouver Sun, Pacific Press, October 30, 1999

[7] Ed. Frank Abate. Oxford English Dictionary. Oxford University Press, 1997, p.131

[8] Ibid. p. 131

[9] Website en.wiktionary.org/wiki/Economy

[10] Website en.wiktionary.org/wiki/Trade

[11] Gunther, John. Behind The Curtain. Harper Books, New York, 1948, p. 54

The Allstate Corporation (NYSE: ALL) announced a quarterly dividend of 20 cents on each outstanding share of the Corporation’s common stock, payable in cash on April 1, 2010 to stockholders of record at the terminate of business on March 12, 2010.

Recently Allstate announced their fourth quarter net income for 2009 at $518 million, or about 96 cents a share. That is a big improvement from the fourth quarter of 2008 where Allstate had a net loss of $1.13 billion, which equated to a loss of $2.10 a share.

Operating earnings were $592 million, or $1.09 a share. Operating earnings exclude net realized investment gains and losses and Allstate was expected to get $1.01 a share.

The combined ratio, which measures claims and expenses as a percentage of premiums, was 88.1 in the fourth quarter of 2009. This ratio is a closely watched measure of an insurer’s underwriting performance. Allstate announced than in 2010 this ratio will likely be between 88 and 90.

Allstate-brand standard auto insurance premiums written climbed less than 1% in the fourth quarter or 2009. Average auto insurance premiums rose 2.6% while the number of policies declined 1%. Net investment income during Q4 2009 was $1.1 billion, $253 millions less than in the fourth quarter of 2008.

The strong rebound in equities and corporate bonds relieved a lot of the pressure on Allstate that existed as a result of investment losses during the 2008 financial crisis. There will still be challenges for Allstate in 2010, including a still sluggish economy and lower investment income. Ultimately shares of Allstate climbed 0.7% in after hours trading following this announcement, rising to $28.80.

For more investor relations information from Allstate go to Allstate Insurance Company Shareholder Resources. For more press releases from Allstate go to Allstate Insurance Company Newsroom.

Or should I say… GEICO Cavemen slated to become a TV sitcom?

It’s true! Those insulted cavemen from the Geico Insurance commercials have a sitcom in development with ABC.

The cavemen ad campaign came about in 2005, with characters created by the Martin Agency, the same people behind the proposed Caveman sitcom. The premise of the Geico commercials is simple… and kind of strange. 2 cavemen, played by Ben Weber and Jeff Daniel Phillips are for, whatever reason, alive and well today, and are offended by Geico’s claim that geico.com is “so easy, a caveman could do it.”

The initial commercial, which was simple and to the “point” spawned at least 3 additional commercials, including my personal current (in a esteem to hate kind of way) that shows the Geico spokesperson who originally made the claim that geico.com was so easy a caveman could use it apologizing to the cavemen while browsing a menu at a fancy restaurant. Like in every commercial, the caveman is disgusted and that’s the gigantic laugh. At least, I reflect that’s what they’re going for.

Like all things that annoy me to death, I figured the supposed-to-be-long-dead-yet-here-they-are-bugging-the-crap-out-of-me-cavemen’s days were limited. Apparently, I was wrong, and evidently, I’m in the minority wanting them to go away.

This year Geico launched a website, a highly interactive one at that, taking place in the cavemen’s apartment. This website, located at http://www.cavemanscrib.com invites you in and lets you play around with things in the apartment, including changing the music on the iPod, knocking the power out trying to microwave some dip, and even walking into the bathroom while a caveman is taking a shower. It’s like I’ve died and gone to Heaven, let me tell you. I’m sure there’s even more to do at the caveman’s crib; I couldn’t stomach sticking around any longer to find out.

The Internet and commercials, though, do not true annoyance make. Surely, a sitcom based on the caveman characters couldn’t be a reality. Couldn’t be… but is.

ABC isn’t just talking about it, they already ordered the pilot. The tentatively named “Cavemen” is one of 14 pilots being produced by Touchstone Television for the 2007 spring season. I think it bears repeating… the pilot will indeed be written by Martin Agency, the creators of the cavemen for the Geico commercials.

The plot of the new Cavemen sitcom is not exactly a long shot from the commercials – they are Neanderthals who live in modern times (Atlanta, 2007 to be actual) who don’t wish to be treated any differently than the rest of us. And isn’t that just completely understandable… after all, they’re only supposed to be DEAD.

And there it is: The evolution from commercial, to website, to sitcom. I wonder if it’s those Nielsen families that are responsible for all this…

At any rate, how long do you think this show can pull off the same caveman reaction to the same modern day prejudice? Will Geico advertising be sprinkled throughout the show, making it less a sitcom and more a really long, painful commercial?

On the upside, if they’re ever at a loss for guest stars, perhaps they could get the gecko to make a nice cameo!

As much as I’d stay away from this demonstrate if it were on, I’m morbidly curious to glance if it does net picked up. It’s the masochist in me, I’m tellin’ ya!

The insurance model is wrong for health care Insurance is the transfer of risk from the insured to the insurer (Wikipedia) With health care, the lifetime risk is 100 per cent That is, it is specific that everybody will, at some time, will need health care Even the healthiest individual will will need the services of a physician at some point in his or her life A risk this high must maintain insurance firms out of the enterprise, but they gamble on when people today will want services, and make a lot of funds there.

Insurance corporations exist for the purpose of making profit Their shareholders demand it When insurers get involved in health care, they face a dilemma The insurance model can be summed up in a easy equation rofit = earned premium investment income – incurred loss – underwriting expenses (Wikipedia)Earned premiums are the cash they collect from individuals who have insurance Organizations invest those premiums and earn income From these monies, they ought to pay employees (underwriting expenses) and disburse payment to providers of health care These disbursements are the incurred loss in the equation.Insurers can boost profits at each point in the equation, but every improve has its downside If the insurance organization increases premiums, it may perhaps lose organization It can make riskier investments, but the possible for increased income is modest, and occasionally risky investments lose funds Insurance providers tend to be strongly risk-averse investors A third place to improve profits is to lower the quantity of funds paid to insurance organization employees The drawbacks here are obvious.Last, and undoubtedly the crown jewel of profit-enhancement for health insurers is the item referred to as incurred loss Each and every time an insurance firm denies a claim, each cent collected from the insured, and every single cent made on the investment of those premiums is profit: pure, creamy, totally free funds.Health care insurers have plenty of methods to make this totally free cash High-deductable insurance only covers medical care after the insured has paid a significant sum toward health care This is the only true health insurance It is occasionally known as catastrophic health insurance Buyers of these policies pay for their routine care, but have policies that cover the huge, scary things, like intensive care unit stays and cancer.Exclusions for every thing from cosmetic surgery to pre-existing conditions are an additional way to make dollars Regularly the longest component of a health insurance policy is the section on exclusions Insurers also dictate to providers how a lot they will pay for a variety of services Doctors have two options, accept the insurer’s payment or move to a money practice Patients do not like money practices, which need them to wrangle with insurers for payment.These demands on doctors have some really bizarre outcomes Obtaining a wart frozen off at the dermatologist is surgery For folks fighting skin cancer, each squirt of liquid nitrogen might cost them as significantly as a hundred dollars, for the reason that insurers pay at a lower rate for surgery, and doctors count and bill every 1 separately.Conservatives for Patient Rights believe that the patient is ultimately responsible for his or her health care The insurance model promises some thing for nothing Patients are responsible for their own health and ought to be able to pay for their own health care No 1 ought to be bankrupted by health care costs No 1 really should have to refuse treatment to stop bankrupting their family, but both these things take place every single day.The insurance model encourages young, healthy folks to remain uninsured until it becomes obvious that they will will need health care Rather than shoulder the burden of paying for the care they will ultimately want, they bet that they will remain healthy When the unthinkable occurs, and these folks need care, they either walk away from the bill (transferring the cost to other people in the system) or invest months or years paying for it.Numerous government entities and providers use some thing referred to as self-insurance All participants pay set amounts into a pool of funds on a normal basis A third-party administrator spells out how the plan works and makes agreements with local providers The administrator pays the bills according to the plan, and the firm reimburses the administrator every month Once a month, the corporation cuts a check to the administrator for those advantages These health plans normally offer great access to care for an cost-effective price Simply because the administrator works for a set fee, there is no motivation to deny claims Men and women like this type of coverage They are basically paying for their health care in advance There are no high-risk pools, where persons are priced out of the market There is no motive to deny coverage Individuals can decide on their doctors and deductibles.Who hates this plan The insurance providers They love that rich, creamy, totally free cash.http://en.wikipedia.org/wiki/Insurancehttp://www.cprights.org/plans.php .

The values such as 1080i and 1080p commonly appear in Blu-ray discs and Blu-ray reviews, movie information lists, and technical descriptions of films. What do the letters “i” and “p” after the numerical characters stand for? The “i” is for interlaced and the “p” is for progressive.

While the differences between interlaced and progressive entail very technical terms and explanations, these two scanning systems considerably refers to the methods of “painting and presenting a video image” when using an electronic display screen. The scanning or displaying of each line or row of pixels utilizes certain fields to create a moving frame that can be watched on screen.

For many decades, interlaced scanning has served the analog cameras, television productions, and analog home movie formats such as VHS tapes. However, while it is peaceful the most suitable system in certain applications, newer technologies, particularly the advent of the Liquid Crystal Display (LCD) screen has significantly changed the technical landscape of scanning systems for displaying audio-visual productions. The display technologies of the LCD, Think Film Transistor (TFT)-based monitors, DVDs, and high definition (HD) cameras provide another draw of bringing the image to the screen: progressive scanning.

Technically, shooting on HD requires specific settings and values in order to determine distinct parameters and workflow requirements suitable for the production. The technical values referring to the resolution of the scene being filmed may either be 1280×720 pixels (720p) or 1920×1080 pixels (1080i/1080p).

Interlaced Scanning

Interlaced scanning uses a technique that improves describe quality of a video signal without consuming additional bandwidth. This system is developed for the Cathode Ray Tube (CRT) monitor display which is used for the old model of TV set, way before the release of LCD and flat-screen TVs. The CRT display is made up of 576 visible horizontal lines across a standard TV screen. The process of interlacing divides the lines into odd and even, then it alternately refreshes them at a rate of 30 frames per second. There is a slight delay between the odd lines and the even lines that need to refresh. This delay creates some sort of distortion or “jaggedness” to the video seen on camouflage because only half the lines tend to exactly keep up with the moving image, while the other half waits to be refreshed.

The interlaced scanning technique uses two fields to create a frame: one field contains all the odd lines of the image, the other contains all the even lines of the image. The PAL based TV display scans 50 fields every second (25 odd and 25 even), meaning, the two sets of 25 fields work together in order to obtain a full frame every 1/25th of a second. This results to the frame rate of the PAL format: 25 frames per second or 25fps (25 frames is shown per second to provide the illusion of movement through the 25 incrementally changing smooth frames: each one shown in the right order in every second, according to the motion by the camera). In the same way, the NTSC based TV display scans 60 fields every second (30 odd and 30 even). This results to the frame rate of the NTSC format: 30 frames per second or 30fps.

Progressive Scanning

A progressive scan requires a great higher bandwidth compared to an interlaced scan.

Progressive scanning uses a technique that displays the image on veil by scanning each image line (or pixel rows) in a sequential order, instead of the alternate order in an interlaced scan. This means that the image lines get scanned in numerical order (1, 2, 3…) from top to bottom of the screen. This differs with the interlaced scanning which goes alternately (1, 3, 5…, then followed by lines or rows 2, 4, 6…). The progressive scan utilizes the image onto a camouflage every 60th of a second, unlike the interlaced alternate lines every 30th of a second in an NTSC format. The progressive scanning technique provides a smoother and more detailed image. The scanning process’ primary intent is to refresh the conceal more often so that the video footage viewed shows finer details, especially with texts that are more often susceptible to interlace flicker. Have you ever noticed watching the scrolling credits at the end of a movie with that annoying, flickering movement? This is a common interlaced scanning issue.

To further explain in a much less technical way, the progressive scan effectively allows the capturing, transmittal, and display of images similar to a text shown on a page: the letters are shown line by line, from top to bottom.

Future of Interlaced and Progressive Scanning

Given the fact that the consumer and professional markets now target all their offerings in HD format (cameras, TVs, and video players), the old TVs with CRTs are fast becoming more and more obsolete as time passes by. Yet, the interlaced scanning is still here to stay. Why? Because even today, many households still use CRT TVs as their second or third TV sets for their homes. With its decades of existence, interlaced scanning has already hosted a great number of archived video works; and they are here to cease, unless all the countless archives get converted to progressive. Yet, such conversion for broken-down works isn’t ideal neither. Aside from the danger of converting each and every possible work, there are certain technical and practicality issues to contend with as well.

“Interlace vs. Progressive Scan: What’s the Difference? “ Search Warp.
“Interlace,” Wikipedia.
“Progressive scan,” Wikipedia.

More About Comparing Film Types and Formats and Analyzing Film Facts, Technology, and Issues:

Difference Between Film and Theater Performances

Why Lighting is Important in Filmmaking

Analyzing the Difference Between Widescreen and Full Screen Movies

Advantages of Filming in HD and Releasing Movies in Digital Cinemas

Shooting in 35mm Film or in HD: What’s the Incompatibility?

Old School Film Editing Machines: Moviola and Steenbeck

Movies and Filmmaking: Homage, Rip-off, or Coincidence?