Why Mobile Credit Card Acceptance Is The FUTURE

Not so many years ago, accepting credit/debit cards on a mobile phone was purely fiction. Business owners were strictly limited to stand-alone terminals which required a landline, in order to process bank cards. This was very inconvenient for the "on the go" industry types who required payment in the field.

For example:

Hair Stylists
Landscapers
Janitorial/ House Cleaning /Carpet Cleaning
Mobile Food Trucks
Outside Sales Representatives
Trade Show Merchants
Any Businesses Accepting Payment Remotely
Traditionally, if the listed industry types needed to run a credit/debit card transaction, they would need to copy the customer's entire card number, and then key it in their credit card machine when back in the office or call it in. This was risky, because it left the business vulnerable to internal credit card fraud or Non-PCI Compliance, which requires the safe handling of card holder information by authorized personnel only. This also created a greater exposure to charge backs, because the signature of the customer is not binding, unless the credit card receipt is signed at time of transaction. Also, "keyed" transactions are assessed at a significantly higher fee, when the card is not present.

Although I speak as though these scenarios are a thing of the past, they still occur in a great number of businesses which continue to transact bankcard payments this way. One can only assume they are simply not yet aware of the new and exciting bankcard acceptance options, the industry now has available.

Thanks to the wireless device industry, Merchant Service companies are now able to convert Smartphone's and Tablets into mobile credit card acceptance portals, with little effort or additional investment. This innovation has paved the way for the mobile credit card processing trend, completely changing the way remote bankcard transactions are accepted. And, because of these phenomenal innovations, business owners are less exposed to risk of credit card fraud, PCI Non-Compliance, charge backs and the added costs of "keyed" transaction fees.

How it works:
Your credit card processing mobile apps can be found within either the Apple AppStore or the Google / Android Market. Upon simple completion of a merchant application, the business owner will be provided access to download mobile app and secure log-in credentials, allocated for the business' depository bank account. A card reader will plug into the audio jack of your mobile device, which you use to swipe the customer's card, thereby populating the mobile app with the card holder information to complete the sale.

Once the Card Reader and Mobile Reader Processing Application are installed, your transactions are ready to be completed. Business owners can simply swipe the customer's credit / debit card right on their smartphone, have the customer sign on the touch screen and email them a copy of their receipt.

The benefits of this exciting new trend of Mobile Credit Card Processing, is that there is now an easy, convenient, far more cost efficient way to boost revenue, right from the palms of our hands!

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How Credit Card Acceptance Boosts Your Sales

Owning any kind of business now requires providing several payment options for customers. If you limit your payment options, you may also be limiting your customers, especially new potential customers who may not know your payment rules. Some mom and pop entities still refuse to make the switch to become credit card processing capable and as a result they are losing business to those business that offer credit card convenience. Consumers have become credit-only shoppers.

There are several reasons for this but the reality of the business world is that consumers are changing the way they shop and business owners must make changes to accommodate their clientele. So why are people making the switch to plastic-only? There are a variety of reasons including:

Going Electronic
Because so much of banking and financial transactions are done online, more people are forgoing cash because it has become a hassle. They prefer to use their banking debit card or their major credit card rather than deal with cash. If you only accept cash payments, those who rely on the convenience of plastic may bypass your business because it is not convenient. As the rules are changing for the minimum charges a customer can make using a credit or debit card, people are less likely to be carrying cash in their pockets even if they only pay $4 for a cup of coffee and a donut.

Better Tracking
People nowadays are working at being more budget-conscious and many feel if they have cash on hand, they will spend it recklessly. Using a credit or debt card allows buyers to keep tabs on what they have spent, where they have spent the money, and give them instant access through the online accounting systems most banks are now heavily promoting.

Dependence on Rewards
With more credit card companies offering competitive rewards plans, people want to get the most bang for their buck. For each time a card is used, rewards points or even cash back incentives benefit the consumer more than just paying with plain old cash.

Consumer Rely on Credit
For bigger items, people often do not have the cash upfront to complete the purchase so they use their credit cards to cover the balance. If you sell more expensively priced items, people likely will not be able to afford cash-only purchases.

Business Use Credit Cards
These days other business owners rely on credit card statements to itemize their business expenses. If you are supplying products that cater to businesses, you'll likely have to accept either company checks or company cards. Most businesses will not deal with cash transactions at all when purchasing equipment and supplies.

Online Transactions
If you conduct business online, accepting card payment is almost a requirement. There are third party services that offer ways to process payments via credit card but not all consumers are willing to take the extra step. They want to log in, add to their cart, and check out using their major credit card. This offers them not only convenience at check out but also consumer protection should something go wrong.

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How to Acquire a Credit Card Merchant Account

Did you know that over 85% of purchases made online are paid for by credit cards? Or that sales can go up by as much as four times when credit cards are accepted? If your business is still insisting on the old fashioned check, or worse, cash, you may as well put it up as a museum exhibit! Acquiring a credit card merchant account is one of the first things businesses must do if they hope to compete.

If you've never heard of a credit card merchant account or don't have a clue of how to go about getting one, don't sweat. It involves a fairly simple procedure and there are a number of service providers who will be only too happy to sign you on.

But, first things first. Arm yourself with a little knowledge of how credit card processing works so that you can sound smart when you begin discussions. Basically, the key players are the credit card companies like Visa or MasterCard; banks, which tie up with these companies to issue credit cards to their customers; and clearing houses, which actually process and verify transactions. Then there are the merchant account providers or independent sales organizations, whose goal is to ensure that your company is successfully fixed up with a credit card merchant account. These are the guys that you will be talking to, so make sure you choose a reliable provider. Some providers like Merchant Accounts Express offer a price protection guarantee to safeguard the interest of the credit card merchant account holder.

Right! Now that we've got that out of the way, let's come to grips with what infrastructure you need in order to operate a credit card merchant account. Well, the most important thing is to establish a gateway, which is a means of communication with the clearing house. One of the ways is to use a swipe machine, the type that you see in all retail establishments. The credit card is swiped in the machine, which relays information to the clearing house. Once the transaction is authorized, a charge slip is produced. The card owner signs a copy and hands it over to the credit card merchant account owner.

If your business largely relies on e-commerce, obviously the swipe machine is not for you. An option is to install a type of software in your computer which will facilitate the exchange of information between your credit card merchant account and the clearing house. However, this requires manual keying in of customer card data, value of transaction etc., therefore you will have to factor in the extra time and effort and also the possibility of data entry error.

Still not happy? No problem. Most e-commerce websites use a real time payment gateway, like PayPal which completes the data transfer and validation process while the buyer is online. The credit card merchant account owner need not be hassled by any manual processes. The only precaution that needs to be taken is to ensure compatibility of the gateway with the other software and systems that are part of the e-commerce process (for example shopping cart software).

That's pretty much all you need to know about a credit card merchant account. Besides of course, that once it is set up, it will help push your sales skywards!

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Want a Credit Card Merchant Account?

Who doesn't want a credit card merchant account! This special service allows you to process credit card payments from your clients in a number of ways that can help to speedily grow your business. A merchant account has been known to double or triple business profits in a relatively short amount of time, so only if your company is poised for growth should you consider this exciting opportunity.

If you currently work with a bank that you trust with your business concerns, ask about the possibility of applying for a credit card merchant account. Most companies are eager to welcome this type of business from customers they know and trust. As long as you have established a solid business credit history, pay your bills in a timely manner, and aren't involved in questionable or unethical pursuits, your chances of being approved for a merchant account are good. Of course, your bank may not offer this type of account, or you may be able to find better terms with another lender, so don't feel as though you must apply for merchant services with your current lender.

Instead, ask around at trade shows, conventions, or civic business meetings to see what type of merchant account providers your competitors are using. They can probably offer helpful tips on which lenders to court and which ones to avoid. You also can check with local business listings for references on general lenders, some of which may offer merchant accounts. Or you can browse the Internet to bring up a list of links that will let you contact those that seem most compatible with your business interests.

Getting a credit card merchant account is pretty easy. After locating potential lenders to work with, you should compare services and fees to make sure they will work with the business plan that you are using or one that you plan to set up. Check your company's budget to find out how much you can afford to invest in credit card processing equipment and service options. Then compare your budget with transactional fees, maintenance expenses, and application or gateway rates to find a lender that is affordable for your needs.

When you have been approved for a credit card merchant account, you can start to accept credit card payments from your clients immediately, often with a couple of days. All you need to do is select the type of processing equipment that best fits with your customers' purchasing patterns. For example, if most visit your store to shop, an onsite credit card processor that you can purchase for a few hundred dollars is the simplest and perhaps most effective way to start. But if you deliver goods and services, a wireless unit might be the better choice. Of course, if you do both, two units might be affordable, but you will need to check your budget. You can always start with one and add another later.

Start looking for a possible merchant card services provider to get approved for your credit card merchant account!

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Lower Your Credit Card APR in 5 Minutes

The APR on your credit card is not carved in stone. The banks want you to think it is nut it is actually quite volatile and, with a 5-minute phone call you may be able to move it down by a third or so.

Now most of use are intimidated when it comes to dealing with banks and similar institutions.. But, despite what we may think to the contrary, they actually are approachable even if they do their best not to be approached.

So gird your loins and front up to them. You want a lower interest rate? The answer is simple. All you have to do is -- Ask for one.

Yes it can be as simple as that. And, almost unbelievably, you stand a slightly better than even chance that you will get it lowered. And a lower rate could save you hundreds maybe thousands of dollars every year. From a 5-minute phone call this sounds like well worth trying. Even if you fail.

According to the Federal Reserve the average credit card holder in America is struggling with a total credit card debt of over $10,000. Making only the minimum monthly payments of 2% on this debt would cost almost $1 500 in interest in just the first year and would take longer to pay off than an average home mortgage.

Rather than attempting to pay off this debt by borrowing and taking on more debt or taking out a loan on your home, getting your interest rate lowered would seem the far better option.

And it might be easier than you think. Don't be intimidated - just get on the phone to your bank or credit card supplier and tell them that you consider that your APR is too high and you would like it lowered. Tell them that unless your rate is lowered you would change to another company. Make the call today and start saving right away.

In a recent survey by Masspirg 50 consumers did just that. With one 5-minute phone call 28 of them had their ARP lowered from an average of 16% down to 10.47%. These are impressive figures and represent a huge savings in interest payments.

However all is not as it seems - is it ever? The cloud may not have a silver lining.

Your success or otherwise depends to a great extent on three rather obvious things:

the length of time you have had a particular card

the unpaid balance compared with the credit limit

a history of no late payments.

If you can satisfy these then you stand a very good chance of getting a reduction in your ARP. But, don't be put off if you can't. Just give it a try. Nothing ventured nothing gained.

As Jennifer Davis Carey, Director of the State Office of Consumer Affairs and Business Regulations says, "The best defense is a good offense. It is important to learn all of your options in order to have the best strategy for protecting your credit. The best consumers are those who are informed about their own credit, and the terms, policies, and conditions of institutions extending credit to them,"

As one of the people participating in the survey commented -- "I never realized I could call my credit card company and get a lower rate just by threatening to switch companies, Everyone--and I mean everyone--should do this."

And, of course, she's right. Don't delay another minute - get on that phone right now before you talk yourself out of it.

Remember the old saying; it's the squeaking wheel that gets the grease. You can be that squeaking wheel.

Or - if you want something, ask for it. You might or might not get it but if you don't you are no worse off than you were before.

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3 Guidelines for Choosing a Defense Attorney

If you are being charged with a criminal offense, it doesn't matter if it is a minor misdemeanor or a major crime, you'll need the services of a qualified defense attorney in order to avoid serious penalties. Like most people, you probably have never even thought about hiring an attorney until now, so you're not too familiar with the process of selecting the best lawyer to represent you and your case.

When you begin your search, the first thing you'll notice is that there are numerous defense attorneys that are capable of handling all sorts of cases. Some work for big law firms that have large ads and get lots of publicity. While others work in smaller, more intimate firms that maybe have two or three lawyers practicing. First of all, you don't want to judge a law firm on the basis of size alone. There are just as many good lawyers attached to small firms as there are in big ones.

Even though you may feel a lot of pressure to hurry up and choose a lawyer to help you in this time of crisis, it's always best to slow down and take the time to do some research first. Choosing a defense attorney is going to be one of the most important decisions you'll make, because this person is going to be responsible for seeing you through the legal system and its maze of complicated laws and procedures.

Here are some guidelines for choosing a good attorney:

Look for an attorney who practices in your area
Attorneys live and work in their local community, and are often well known by local prosecutors, judges and law enforcement. They may be members of community organizations and participate in local activities. In other words, they are comfortable in their surroundings and know their community well. This is good for you, because you want someone who has established themselves in the Atlanta area and knows the players in the legal system.

Look for an attorney who specializes in particular areas of law
When you need dental work done, you don't make an appointment to see the eye doctor - that would be silly. The same reasoning applies to attorneys. There are many excellent attorneys who specialize in civil cases, but they won't be of much use to you as a defense lawyer for criminal matters. Therefore, find an defense attorney who is known for defending people who have faced similar charges to your own.

Look for an attorney that makes you feel comfortable
The client/attorney relationship is based on mutual trust. When you meet with a prospective attorney, you should feel comfortable with how they speak and interact with you. Just because they have represented a lot of clients, doesn't mean they are the right choice for you. When you are facing the whole weight of the legal system, you want to know that your attorney is willing to aggressively defend you against all charges. If they show little interest in you or your case, this is a sign they will not mount much of a defense.

Finding the right defense attorney that can serve your legal needs is crucial. When you follow the above guidelines, you'll be in a better position to choose the best legal representation.

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Getting a Bad Credit Home Improvement Loan

Sometimes it's necessary and sometimes it's just on a whim, but all of us have felt the need to improve our homes at one time or another. In this day and age it's simply not enough to just have a roof over your head, everyone wants to live in style and comfort and many times this means improving what we already have. By tapping a home improvement loan we can add luxury to our lives in the form of a swimming pool, designer kitchen, spa or hot tub. Of course if you've had past credit problems this can put a real damper on your home improvement dreams. We all know that bad credit loans are hard to get, or are they? What if you could apply for and get approved for a bad credit home improvement loan.

There are many reasons that people have bad credit from bankruptcies to late or unpaid bills. While these will hurt your credit score it doesn't mean you still can't get a loan to make improvements to your home. Bad credit lenders are available and they will work with you no matter what your past history is and you may find that getting a home improvement loan with bad credit isn't as impossible as you thought.

You can get a home improvement loan either with or without collateral. If you choose not to use your home as collateral you'll find that this type of unsecured loan may be a bit more restrictive, but you should still be able to get a home improvement loan for up to $25000 with a repayment period up to 10 years. If you're willing to use your home as collateral however you'll find that you can borrow more money, have a longer time to repay it and the interest rate will be lower. If you feel comfortable that you won't have problems repaying the loan then the secured option where you put up collateral is definitely superior, but make sure you're comfortable with the idea that your home can be taken from you if you fail to make your payments.

While a bad credit home improvement loan will have a higher interest rate than a traditional home improvement loan, you shouldn't let that stop you. The rates will still be reasonable plus you'll be adding not only to your own pleasure, but also to the value of your home. And your credit score will climb as you make payments on this loan meaning you can eventually refinance the home improvement loan at a lower interest rate.

Overall, bad credit home improvement loans are a win-win situation for you, improving your home, your lifestyle and your credit.

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Hot Facts About Home Improvement Loans

Loans for home improvements have some particularities that are worth mentioning. Following are a series of facts about home improvement loans that you should take into account prior to considering your options.

Home Improvement Loans Nature
What makes a loan a home improvement loan is the use that the money receives. This use can be a condition for the loan approval and thus there are penalties that can be applied if you don't comply with that requirement. However, those home improvement loans that are unsecured are actually personal loans and the use you give to the money is really up to you. They are just promoted as home improvement loans to attract customers but those loans are nothing but personal unsecured loans.

Home Improvement Loans And Equity
Home improvement loan don't necessary require equity but unsecured home improvement loans are too expensive when compared to home improvement loans based on equity. Therefore it is always advisable to obtain a home equity loan for home improvements. These loans use the available equity on your home to secure the money borrowed and since the money is used to improve the property that will be used as collateral, qualifying for these loans is a lot easier.

125% Home Improvement Loans
These loans let you use 125% of the value of the property as guarantee of repayment. Thus, even if you don't have enough equity on your home, you can still obtain these loans. The idea is simple: the money will be used to improve the property which will in turn raise its value making more equity available and with few monthly payments, the accumulated debt (mortgage plus home equity loan) will equal 100% of the value of the property and so, both lenders will be fully protected.

Requirements For Approval On Home Improvement Loans
Home improvement loans, especially those based on equity are very easy to qualify for. The risk involved in the transaction is very little. The chances of default are greatly reduced and in the event of default, repossession assures the lender that he will recover the investment. Therefore, a moderate credit score and history will be enough; there is no need for your credit to be good or perfect.

Only serious delinquencies like bankruptcies or defaults can ruin your chances. Other than that, your income needs to let you afford the payments with ease. There are no further requirements because as the loan is used for improvements, it raises the value of the property which is the asset guaranteeing repayment.

Legally Fixed Purpose On Home Improvement Loans
Do remember that on most home improvement loans the fact that the loan has to be used for making home improvements is one of the contract's clauses. Therefore, you may be required to show proof of the improvements you are going to make like constructor's plans, designer's plans, etc.

Any other use can result in the cancelation of the loan program and the payments becoming immediately due. Therefore, be careful and read the contract thoroughly.

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Sub Prime Mortgages And Home Loans

If you have happened to read any of the financial press, or turned on the television news in the last few months, you can't have failed to notice articles about the crisis facing the Sub-Prime mortgage or home loan market, both here in the UK and particularly in the US. So what are the actual problems facing this growing sector of the market and will the situation in America soon be reflected in this country?

Firstly, it's probably worth briefly talking about what a Sub-Prime mortgage actually is. Traditionally when somebody applied for a home loan, a credit check of some form or other was carried out against their personal circumstances. If any gremlins turned up, such as loan arrears or county court judgement, invariably the client would be declined the home loan. As we currently live in a world of credit cards, loans and HP agreements, inevitably some consumers, for various reasons, fall behind with payments and find themselves with a poor credit rating. This is an ever increasing situation in the UK today, with more and more people being unable to service their outstanding credit commitments. This is how the Sub-Prime market was born. Initially, anybody with a less than perfect credit rating fell into the all encompassing category of "Sub-Prime", or as it used to be called, "adverse credit".

Nowadays, as more and more customers find themselves with credit problems, the Sub-Prime market is becoming increasingly sophisticated, with products to suit an individuals personal circumstances. These range from "near prime" or "light adverse" for someone with very minor problems, all the way through to "heavy adverse" for those customers with a large number of CCJ's or several months previous mortgage or loan arrears, with several levels in between these extremes.

There are several reasons why the Sub-Prime mortgage market is receiving all this bad press and facing the problems that it has. Firstly, as the sector has grown, an increasing number of lenders have entered the market, leading to more competition and a relaxing of lending criteria, which makes it easier to obtain a loan. Secondly, the Financial Services Authority, who regulate mortgage activity, have raised concerns over some mortgage advisers failing to adequately assess customers' ability to afford the mortgage and also with some lenders themselves, who have not adequately covered the relevant responsible lending considerations in their policies. The final straw for many has been a steady increase in interest rates, from 4.5% in August 2006 to 5.75% in July 2007. This has led to increased mortgage payments and already overstretched budgets being pushed to breaking point, with the end result of a greater level of mortgage arrears and repossessions. With house prices showing signs of falling and the possibility of another interest rate rise in the near future, the situation is likely to worsen over the short term with more repossessions and the possibility of negative equity for many borrowers.

As we know, what happens in America is usually reflected in our own markets within a few months, so, with the close ties we have in this country with the US, is our Sub-Prime mortgage market about to take the same downward spiral currently being suffered by the Americans? According to many experts in this country, including the Council of Mortgage Lenders and various specialist lenders, the cautiously good news is, this is not likely to be the case.

Although the outlook for the Sub-Prime mortgage market in the UK is gloomy and there are many similarities between ours and the US market, there are also a great number of differences. One main reason for the impact of this sector on the US is that Sub-Prime lending accounts for almost a quarter of the American mortgage market, whereas in Britain, Sub-Prime only accounts for 6% of the overall mortgage market. Another major difference is that lending criteria in the US was relaxed more than it was in the UK, with lenders not verifying borrowers' income and allowing greater loan to value levels, even up to 100% LTV! In the UK, the maximum loan to value for a Sub-Prime mortgage is typically 85-90%, with the average being below 80%. If a borrower has not invested any of their own money into their home and there is no equity in the property, there is less incentive to struggle on with mortgage payments and borrowers are more likely to relinquish their homes in times of financial difficulty.

It has also been common practice in the US to offer low-start mortgages, where, in many cases, the payments do not even meet the interest charged and therefore place an even greater burden on borrowers once this initial period has ceased. This type of mortgage was pretty much abandoned in the UK after the problems with high levels of repossessions in the early 90's.

As previously mentioned, although interest rates in the UK have risen by 1.25% since August 2006, in the US the rate has risen from 1% in 2004 to 5.25% in 2006, further exacerbating the situation. Also, the average level of debt for every person in the US is almost four times that of the average person in Britain.

In conclusion, it would appear that we are taking a more cautious view of Sub-Prime lending in this country compared with the US. This does not mean, however, that we are out of the woods yet. Indeed far from it. Many Sub-Prime lenders are now withdrawing products, lowering loan to value levels and tightening up on their lending criteria, which has to be a good thing for the long term survival of this sector of the market. The downside for consumers is that if you are looking for a Sub-Prime mortgage in the near future, it is likely to be harder to get and it may well cost you more.

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Good News About the Sub-Prime Mortgage Crisis

Hey, wait a minute! In recent months, the national media has dwelled on the collapse of the subprime mortgage market and the surge of foreclosures. But there is another side to this story that should also be considered.

The Mortgage Bankers Association recently released its National Delinquency Survey and the numbers are not what you may think. True, the rate of loans falling into foreclosure last quarter was the highest in the survey's 54-year history. 8.4% of subprime loans were more than 90 days late or already in the foreclosure process. That statistic is sobering, but it misses the point. If 8.4% are seriously delinquent or in foreclosure, 91.6% of the sub-prime borrowers are current with their loans and making their mortgage payments on time. They are enjoying the benefits of home ownership. Those borrowers were given the opportunity to own (rather than rent) because of the availability of sub-prime loans and have successfully taken advantage of that opportunity. For them, the "American Dream" has become a reality.

Of course, 8.4% default rate is high, but unanticipated financial problems happen. After all, people don't buy homes, take out loans, and then intentionally default. Usually something serious happens to disrupt the natural process. Commonly, it is loss of job, divorce, medical catastrophe, or some other unanticipated financial emergency that causes people to default. Keep in mind, though, you don't have to a sub-prime borrower to have financial problems. Prime borrowers also default on their loans and lose their homes in foreclosure (no one is immune in this market). Sure, the percentages are higher for sub-prime borrowers, but they are typically in a more vulnerable financial situation. Of course, they have a higher interest rate and pay a larger mortgage payments every month, so cut them some slack. Regardless, the solution is not to cut-off subprime lending, but rather to embrace these borrowers' unique needs. Particularly now, lenders need to offer delinquent homeowners programs to restructure their loans and avoid foreclosure. Let' look at why.

Delving deeper into the MBA survey, we discover several surprising facts. For example, the surge in sub-prime foreclosures last quarter was driven by four large states, California, Arizona, Nevada, and Florida. If it were not for the avalanche of foreclosures in those four states, there would have been an overall drop in the rate of foreclosure filings nationwide. Thirty-four states actually reported a decrease in the rate of new foreclosure foreclosures in the last quarter, and the remaining states (other than those four) reported only a modest increase.

There is also a wide divergence between fixed-rate and adjustable-rate loans. The delinquency rate for prime fixed-rate loans was essentially unchanged from the previous quarter and the rate for sub-prime fixed rate loans actually fell! In contrast, the rate of delinquency for prime adjustable-rate mortgages increased 36% and sub-prime adjustable-rate mortgages increased 227%.

Clearly, adjustable-rate mortgages ("ARMs") are the culprit and present a unique problem. But there is nothing wrong with ARMS, provided they are utilized responsibly. They have benefits you can't find with fixed-rate loans. They have lower interest rates and correspondingly lower monthly payments. They allow borrowers to qualify for loans they would not otherwise receive (of which the vast majority successfully pay each month). Plus, it just doesn't make sense to obtain a 30-year fixed rate loan, when in reality most people sell or refinance their homes every 5-7 years.

Nationwide, California leads the way with over 17% of all sub-prime adjustable rate mortgages. Similarly, California has over 19% of the foreclosures for sub-prime ARM loans. In fact, the same four culprits; California, Nevada, Arizona and Florida, have more than one-third of the nation's sub-prime ARMs, more than one-third of the foreclosures started on sub-prime ARMs, and most of the nationwide increase in foreclosures.

Another factor to consider is the distinction between owner-occupied and investor (non-owner occupied) borrowers. A majority of the delinquencies and foreclosure starts can be attributed directly to non-owner occupied loans. This is because investors are notorious for defaulting on mortgages when the market dips and they see the value of their properties evaporating. Further exacerbating the problem, investors' share of defaulted loans was 32% in Nevada, 25% in Florida, 26% in Arizona, and 21% in California. Yep, those same four states. Those rates are high compared with a rate of only 13% for the remainder of the country. And those percentages will certainly increase as property values continue to decline.

One more thing. The media has been quick to blame mortgage brokers for "forcing" borrowers into sub-prime adjustable-rate loans. I laugh every time I hear that. Anyone who has ever been a mortgage broker knows that you can't force a loan on borrowers, prime or sub-prime. It doesn't work like that anymore. Homeowners are more sophisticated than ever before. They have access to the internet, television and the mass media, and analyze available loan programs. They understand the difference between fixed-rate and adjustable-rate loans, between amortized and interest-only payments, and between "stated" and full documentation. They shop and explore alternatives. Ultimately, they select the loan they want, not their mortgage broker. Regardless of what the media says, that process works successfully for the vast majority of American homeowners.

All tolled, the sub-prime mortgage crisis is bad, but not nearly as bad as the media would have you believe. If you dig deeper into the survey, and segregate the four problem states, subprime ARMs, and investor loans, you will discover that with the vast majority of American homeowners, default and foreclosure are not issues. At least not yet.

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