Financial News

[Balta1701]

Washington Post Columnist Dana Milbank has joined the ranks of the thousands and thousands who have had their houses/money illegally stolen by a bank that conveniently makes error after error in the bank's favor.

Last fall, my wife and I refinanced our mortgage with Citibank. Sixty days later, we received a "cancellation notice" from our homeowners insurance company "for non-payment of premium."

 

Turns out Citibank, which had been collecting hundreds of dollars a month from us to pay the insurer, hadn't made the payments. It was, I later learned, one of the usual tricks mortgage servicers use to squeeze more cash out of their customers. About a month later, I learned of another trick: Citibank informed us that it was increasing our monthly payment by nearly $300.

 

Along the way, a simple refi became a months-long odyssey: rates misquoted, interest charged on a phantom account, legal documents issued in wrong names, a mortgage officer who disappeared for days at a time (first it was his birthday, then his laptop was in the shop), a bounced check from Citibank's own title company, and the freezing of our bank accounts.

 

For me, this amounts to no more than the hassle of arguing with Citibank to fix its "mistakes." But consumer advocates tell me these are typical of the screw-ups by the big banks that service home mortgages. And these errors - accidental or otherwise - are driving large numbers of people into default and foreclosure when it otherwise would not have happened.

 

It's a bad situation - and the new majority in the House is poised to make it even worse.

 

Republicans are aiming to repeal the Home Affordable Modification Program, the Obama administration's main response to the foreclosure crisis. The program, by all accounts, has been disappointing, helping only about 600,000 homeowners of the 3 million to 4 million projected. But its failure, watchdog groups say, was caused by the mortgage servicers' ineptitude - lost paperwork, bad accounting and the like - and lack of concern about whether the mortgages they service (but don't own) go into default. Rather than crack down on the banks, the House Republicans would kill the one program that, at least in theory, gives borrowers some chance of avoiding foreclosure.

 

"If you take that away, you've got nothing," says Julia Gordon, senior policy counsel at the Center for Responsible Lending. "The servicers can just do whatever they want."

 

...

My wife and I are reasonably savvy consumers - she has a brand-name MBA, and I began my career as a business reporter for the Wall Street Journal - but we were no match for a bungling bank. After five months of trying, we still haven't been able to resolve all of Citibank's mistakes - nearly all of them, curiously, in the bank's favor.

 

Of all the miscues, the highlight was when we were handed, at closing, a large check that we didn't want for a new home-equity line of credit. I tried to redeposit it into the home-equity account but was told that the account did not yet exist. I tried to deposit it into my checking account, and the check was returned unpaid - while interest accrued.

 

That so much can go wrong with such a simple refinance doesn't bode well for the 5.5 million homeowners in default (on top of the 3 million already foreclosed). It's impossible to know for sure, but by some estimates, half of them are victims of some form of servicers' errors.

 

"What happened to you," Ira Rheingold of the National Association of Consumer Advocates told me, "happens to people every single day." And it will continue, with its resulting drag on the economy, unless and until the big banks can be brought to heel.

This is a reality that usually doesn't penetrate the Washington Wall at all. I wonder if this might be enough to make an impact. Probably not, just will require a few more contributions to make it go away.

[jasonxctf]

Diesel will go up and down about the same as normal gas, but with higher standard deviation because its simply a narrower market. So the changes may be more erratic, and supply problems may be magnified.

 

my wife and i have two diesel cars. she's had hers for a bit over a year. what i've noticed is that diesel prices move slower, in both directions, over time. so as gas prices have gone up recently, it took about 2 months for diesel to go up as much as unleaded. there was a time out in geneva, this past winter, where diesel was cheaper than 87. 3.25 vs 3.29.

 

On the highway, diesel rocks. Drove from Lisle to Gurnee on Friday and got 44mpg's going 75mph. No sacrifices on power, weight or interior.

[iamshack]

my wife and i have two diesel cars. she's had hers for a bit over a year. what i've noticed is that diesel prices move slower, in both directions, over time. so as gas prices have gone up recently, it took about 2 months for diesel to go up as much as unleaded. there was a time out in geneva, this past winter, where diesel was cheaper than 87. 3.25 vs 3.29.

 

On the highway, diesel rocks. Drove from Lisle to Gurnee on Friday and got 44mpg's going 75mph. No sacrifices on power, weight or interior.

Interesting. I am looking at SUVs and Audi makes a diesel Q7 that I am considering. How is the overall performance, Jason?

[Balta1701]

Interesting. I am looking at SUVs and Audi makes a diesel Q7 that I am considering. How is the overall performance, Jason?

The people I know who have diesels are similarly thrilled with their performance, although the cost per gallon at the site of the pump tends to be higher than gasoline.

[jasonxctf]

Interesting. I am looking at SUVs and Audi makes a diesel Q7 that I am considering. How is the overall performance, Jason?

 

My wife has the Audi A3 Diesel and I have the VW Jetta Diesel. Performance is great. Has strong power. She originally wanted the Quattro, but I was able to convince her to go TDI instead. I'd suggest test driving both Q7's and see if you can feel the difference.

 

When she bought her Diesel she (we) also got a $1,300 tax credit. I got $650 for the Jetta. Not sure if the tax credit still exists and how much you'd get too. That's a credit, not a deduction.

[Chisoxfn]

No, I had no idea they had big hybrids...I'll have to look at some.

I don't have the Hybrid version, but we love our Highlander. I do almost all highway driving so the gains weren't that significant to pay the price for the Hybrid (which is significantly more money).

 

The fantastic thing is, I've gotten as much as 28MPG on a tank in my V6 Highlander (average closer to 24 though). Thing has blown me away compared to our other SUV and car (2005 Pilot, which gets about 18.5, with a smaller engine).

[Y2HH]

By the way, if people are ever looking for info on what hybrid cars and SUV's are currently available (also electrics), and what are coming soon, you can use this site. Further, if you go to their SUV section, you will find 16 different hybrid SUV's to choose from now, with more coming each year. Current alt-driven SUV's range in price from 30k to 90k, and from small to large in size. Take your pick.

 

All told, there are about 50 different hybrid and/or electric car/truck/SUV models available now.

 

I looked into some SUV Hybrids the last few days, and any of them worth having are WAY too expensive.

 

The prices on these hybrids have to come down a good 10k before I'll even bother looking again...

Edited March 7, 2011 by Y2HH

[NorthSideSox72]

I looked into some SUV Hybrids the last few days, and any of them worth having are WAY too expensive.

 

The prices on these hybrids have to come down a good 10k before I'll even bother looking again...

I have to admit, if the FEH hadn't worked out for us, we probably would have passed on the Hybrid thing this time around. It was the only SUV Hybrid that I found to be reasonably priced. I'm sure that will change over time, but for now, that's a tough market.

 

[iamshack]

Have you guys seen that new Lexus CT Hybrid? Gets 42mpg and starts at like $30k? Can get it loaded up pretty good for $35k. Really nice car, some decent room in it too...

[Y2HH]

I have to admit, if the FEH hadn't worked out for us, we probably would have passed on the Hybrid thing this time around. It was the only SUV Hybrid that I found to be reasonably priced. I'm sure that will change over time, but for now, that's a tough market.

 

What did you end up getting?

 

Some of the SUV hybrids don't seem to get much more MPG that I'd even bother...when I think hybrid, I think 28MPG or better (preferably 30+), and some of them I'm seeing 20mpg. To me, 20mpg isn't enough to justify the huge price increase over the gasoline variety, even with the uncertainty of oil prices.

 

I'm hoping that by 2016 or so, SUV hybrid technology advances considerably, gets better MPG and is MUCH more affordable, as that's the next time I'll be in the market for a car.

[bigruss]

Have you guys seen that new Lexus CT Hybrid? Gets 42mpg and starts at like $30k? Can get it loaded up pretty good for $35k. Really nice car, some decent room in it too...

Wow that's pretty incredible.

[bigruss]

What did you end up getting?

 

Some of the SUV hybrids don't seem to get much more MPG that I'd even bother...when I think hybrid, I think 28MPG or better (preferably 30+), and some of them I'm seeing 20mpg. To me, 20mpg isn't enough to justify the huge price increase over the gasoline variety, even with the uncertainty of oil prices.

 

I'm hoping that by 2016 or so, SUV hybrid technology advances considerably, gets better MPG and is MUCH more affordable, as that's the next time I'll be in the market for a car.

How big of an SUV are you looking at? There are a few options at 28 mpg and higher but they aren't Yukons.

[Y2HH]

How big of an SUV are you looking at? There are a few options at 28 mpg and higher but they aren't Yukons.

 

Big enough for long road trips, for 3 peoples cloths, canoe, tents, fishing gear, food, odds/ends, etc...basically, as big as a 4 door Jeep, etc. In other words, A REAL sized SUV, not a fake mini-suv like most of those hybrid suv's I'm seeing on these websites. I do not consider, for example, a Jeep Liberty to be a full sized SUV, it's too small and you'd be better off buying a regular car (as they have the same amount of room in them).

 

Also, for me, the SUV has to be an SUV that won't fall apart if I bring it off road (which I do with my Jeep). If it's driven by soccer moms, I'd tear it's axels off in about 5 minutes when I drive off road to get to some of my favorite lakes in Wisconsin that don't have paved roads leading to them.

Edited March 7, 2011 by Y2HH

[iamshack]

Big enough for long road trips, for 3 peoples cloths, canoe, tents, fishing gear, food, odds/ends, etc...basically, as big as a 4 door Jeep, etc. In other words, A REAL sized SUV, not a fake mini-suv like most of those hybrid suv's I'm seeing on these websites. I do not consider, for example, a Jeep Liberty to be a full sized SUV, it's too small and you'd be better off buying a regular car (as they have the same amount of room in them).

 

Also, for me, the SUV has to be an SUV that won't fall apart if I bring it off road (which I do with my Jeep). If it's driven by soccer moms, I'd tear it's axels off in about 5 minutes when I drive off road to get to some of my favorite lakes in Wisconsin that don't have paved roads leading to them.

How many miles are you thinking you'd put on it in one year? Like you said, it's probably just not going to be worth it at this point.

[Y2HH]

How many miles are you thinking you'd put on it in one year? Like you said, it's probably just not going to be worth it at this point.

 

For reference, I have 50,000 miles on my Jeep Rubicon which I bought on 07/07/07. So I'd say probably around 13k per year or so...I don't drive far to/from work, just Clearing to Downtown 3 days a week...most of my bigger driving is when I take road camping trips...or to Kentucky or Wisconsin on other camping trips. I drove to/from Estes Park Colorado last year, and the year before I went to Custer State Park in South Dakota, both quite long trips.

[bigruss]

Big enough for long road trips, for 3 peoples cloths, canoe, tents, fishing gear, food, odds/ends, etc...basically, as big as a 4 door Jeep, etc. In other words, A REAL sized SUV, not a fake mini-suv like most of those hybrid suv's I'm seeing on these websites. I do not consider, for example, a Jeep Liberty to be a full sized SUV, it's too small and you'd be better off buying a regular car (as they have the same amount of room in them).

 

Also, for me, the SUV has to be an SUV that won't fall apart if I bring it off road (which I do with my Jeep). If it's driven by soccer moms, I'd tear it's axels off in about 5 minutes when I drive off road to get to some of my favorite lakes in Wisconsin that don't have paved roads leading to them.

How about the Highlander? Link

 

"just over 42 cubic feet of space behind the second row when the third row is folded" so that seems to be quite a bit, and converts into a 7 seater if needed.

 

"The Highlander Hybrid has a base MSRP that ranges from $37,290 to $42,945 plus $810 destination charges. That’s approximately $3,000 to $7,700 more than the conventional gas-powered Highlander, depending on model comparison. But, for the premium in cost, the Highlander offers 10 more horsepower and 11 more miles to the gallon in the city and eight more on the highway. Plus, tailpipe emissions are cleaner." - So depending on your miles you can figure the time to recover costs.

[Y2HH]

How about the Highlander? Link

 

"just over 42 cubic feet of space behind the second row when the third row is folded" so that seems to be quite a bit, and converts into a 7 seater if needed.

 

"The Highlander Hybrid has a base MSRP that ranges from $37,290 to $42,945 plus $810 destination charges. That’s approximately $3,000 to $7,700 more than the conventional gas-powered Highlander, depending on model comparison. But, for the premium in cost, the Highlander offers 10 more horsepower and 11 more miles to the gallon in the city and eight more on the highway. Plus, tailpipe emissions are cleaner." - So depending on your miles you can figure the time to recover costs.

 

That's more like a station wagon to me than an SUV, that thing couldn't handle the off road stuff I'd need it for. My Jeep tires are 32"x10", for reference. While I don't need the eventual replacement to be quite that large, I need it to have enough wheel well space and tire size to clear some obvious off road obsticals...nothing huge like boulders, but bad enough that a regular car wouldn't be able to do it.

[bigruss]

That's more like a station wagon to me than an SUV, that thing couldn't handle the off road stuff I'd need it for. My Jeep tires are 32"x10", for reference. While I don't need the eventual replacement to be quite that large, I need it to have enough wheel well space and tire size to clear some obvious off road obsticals...nothing huge like boulders, but bad enough that a regular car wouldn't be able to do it.

Unfortunately you're looking in a market that probably won't see a hybrid edition for at least a few years. Jeep had tried a diesel version of the Grand Cherokee but that was discontinued, and all-elecrtic versions were talked about but nothing seemed to materialize. My guess is that for those who are intending to use a Jeep as an offroader just don't care about gas mileage and there is no market for that.

[iamshack]

Unfortunately you're looking in a market that probably won't see a hybrid edition for at least a few years. Jeep had tried a diesel version of the Grand Cherokee but that was discontinued, and all-elecrtic versions were talked about but nothing seemed to materialize. My guess is that for those who are intending to use a Jeep as an offroader just don't care about gas mileage and there is no market for that.

Yeah, just get the new Grand Cherokee like Rock has, and live with the average mpg...

[Y2HH]

Yeah, just get the new Grand Cherokee like Rock has, and live with the average mpg...

 

The only reason I'm even considering this in the future is for the massive fuel efficiency savings. If I have to stay all gasoline, I'm sticking with my real Jeep, the 4 door Rubicon...you'd not catch me driving a soccer mom Jeep like the Grand Cherokee sans the hybrid like MPG savings...

 

As it stands, for highway driving, I get 18-20mpg with my current Jeep, around 16 in the city.

Edited March 8, 2011 by Y2HH

[NorthSideSox72]

What did you end up getting?

 

Some of the SUV hybrids don't seem to get much more MPG that I'd even bother...when I think hybrid, I think 28MPG or better (preferably 30+), and some of them I'm seeing 20mpg. To me, 20mpg isn't enough to justify the huge price increase over the gasoline variety, even with the uncertainty of oil prices.

 

I'm hoping that by 2016 or so, SUV hybrid technology advances considerably, gets better MPG and is MUCH more affordable, as that's the next time I'll be in the market for a car.

 

I got the Escape Hybrid, and have been very happy. Depends on the season and other factors, but we probably average 28-30 overall. Can be as high as mid-30's on a tank, or as low as mid-20's.

 

Big enough for long road trips, for 3 peoples cloths, canoe, tents, fishing gear, food, odds/ends, etc...basically, as big as a 4 door Jeep, etc. In other words, A REAL sized SUV, not a fake mini-suv like most of those hybrid suv's I'm seeing on these websites. I do not consider, for example, a Jeep Liberty to be a full sized SUV, it's too small and you'd be better off buying a regular car (as they have the same amount of room in them).

 

Also, for me, the SUV has to be an SUV that won't fall apart if I bring it off road (which I do with my Jeep). If it's driven by soccer moms, I'd tear it's axels off in about 5 minutes when I drive off road to get to some of my favorite lakes in Wisconsin that don't have paved roads leading to them.

 

The FEH is not full sized, but I can tell you from doing EXACTLY what you describe (you and I have talked about this before, we do a lot of camping), its been great. 3 people plus gear and a canoe on top works great. 4 people same starts to get cramped, but it can be done. More than that won't work though.

 

We got the AWD model (its auto-AWD, kicks in as needed), and it handles dirt and gravel roads fine, as well as Chicago winters (but also gets a couple clicks less MPG than the FWD model). I wouldn't want to take it offroad entirely though.

 

 

 

[Y2HH]

I got the Escape Hybrid, and have been very happy. Depends on the season and other factors, but we probably average 28-30 overall. Can be as high as mid-30's on a tank, or as low as mid-20's.

 

 

 

The FEH is not full sized, but I can tell you from doing EXACTLY what you describe (you and I have talked about this before, we do a lot of camping), its been great. 3 people plus gear and a canoe on top works great. 4 people same starts to get cramped, but it can be done. More than that won't work though.

 

We got the AWD model (its auto-AWD, kicks in as needed), and it handles dirt and gravel roads fine, as well as Chicago winters (but also gets a couple clicks less MPG than the FWD model). I wouldn't want to take it offroad entirely though.

 

Where do you go camping and stuff at?

[iamshack]

The only reason I'm even considering this in the future is for the massive fuel efficiency savings. If I have to stay all gasoline, I'm sticking with my real Jeep, the 4 door Rubicon...you'd not catch me driving a soccer mom Jeep like the Grand Cherokee sans the hybrid like MPG savings...

 

As it stands, for highway driving, I get 18-20mpg with my current Jeep, around 16 in the city.

I bought a brand new Jeep Wrangler Sahara back in '99. Loved the vehicle, so I know where you are coming from. But damn if you don't think it should get better mpg when you're driving a vehicle of that size.

 

Sounds like if you have off road demands like you do, you're going to have to put up with the 20-ish mpg for quite a while.

[Chisoxfn]

The only reason I'm even considering this in the future is for the massive fuel efficiency savings. If I have to stay all gasoline, I'm sticking with my real Jeep, the 4 door Rubicon...you'd not catch me driving a soccer mom Jeep like the Grand Cherokee sans the hybrid like MPG savings...

 

As it stands, for highway driving, I get 18-20mpg with my current Jeep, around 16 in the city.

IF it is only 2 road trips, why not consider, renting an SUV for your off-road purposes and than having a more normal car the rest of the time. Just throwing out random options.

 

And I'd hardly call the Grand Cherokee a soccer mom jeep. The thing has beautiful off road abilities. Maybe it doesn't have the ground clearance you need for whatever it is you are doing but its 4 wheel drive system consistently gets phenomenal reviews.

[Y2HH]

IF it is only 2 road trips, why not consider, renting an SUV for your off-road purposes and than having a more normal car the rest of the time. Just throwing out random options.

 

And I'd hardly call the Grand Cherokee a soccer mom jeep. The thing has beautiful off road abilities. Maybe it doesn't have the ground clearance you need for whatever it is you are doing but its 4 wheel drive system consistently gets phenomenal reviews.

 

Those are the only 2 "road trips", but they're not the only two trips. I'll take an average of 10 camping trips per year, ranging from Northern Wisconsin, to Michigan, to Kentucky, to Southern IL.

 

And you can't rent SUV's for off road purposes...they'd never rent it to you because of the strain you put on the axels, etc. I'm sure they have rules about bringing them offroad, cracking an axel and saying that the insurance isn't going to cover the abuse. I've never tried that before with a rental, so I don't actually know. My entire underbody is practically covered in body armor...something most SUV's do not have, but is stock equipment on a Jeep Rubicon.

 

And a Grand Cherokee is very capable, however, it's rimmed in plastic with low ground clearance...this does not mix well with real off roading, unless of course, you don't care about denting up and cracking the plastic ground effects. Unfortunately, most people with such SUV's DO care, very much, about not denting up the car.

Edited March 8, 2011 by Y2HH