A bank levy can be issued for several reasons. It is most commonly used by the IRS and creditors. For instance if you have not paid your taxes or a debt that you owe.

When a bank levy is issued it means that your account is frozen you are not able to withdraw anything out of your account. And the funds that was in your account can and usually will be seized.

Before a person has a bank levy issued to his/her account they will receive a letter, a phone, or some type of notice letting them know that action will be taken if they don’t pay up on what they owe.

It is important that as soon as the bank levy is issued to your account that you contact the court as soon as possible if it is issued by a debtor. There is a way for you to be able to receive your funds back and make a payment plan with the debtor. This has to be done within 30 days of the levy being issued.

Now when the IRS issues a levy the money is not refundable and the bank levy will stay on your account until you pay all of the taxes that you owe. Although you cannot withdraw money at this time you are able to make deposit so if you have an employer that deposits your check into your account it will be seized.

When a bank levy is issued to an account the banks usually will charge the account holder $100 or more for every time there is a bank levy issued to that persons account.

The IRS served banks with memos to guide them on how they will work with them when issuing bank levyies. They send these memos to make banks aware of the laws governing the disclosure of bank account information.

The law that was shared on businesstaxrecovery.com was “Title 26 United States Code Section 6333 of the Internal Revenue Code (IRC) authorizes the Service to examine any books or records pertaining to property or a right to property subject to a levy. 1 The Treasury Department interprets this section to mean that, at a minimum, the Service would be entitled to a bank record indicating a levied account’s balance on the date the levy was served.”

This is only a portion of one of the guiding memos that the IRS has served banks with. When an IRS issues a bank levy the bank is required to give the IRS all of the taxpayers account information either willingly or by summons.

When the bank levy is issued the account is frozen immediately whether the bank gives the information right then or if the taxpayer’s information has to summonsed.

One way to avoid this happening to you is of course pay your taxes and your debtors. It is not a pleasant thing to go to your bank account one day and find you cannot withdraw money or pay your bills.

Getting a second mortgage on a home is a very personal matter. There are many different factors that go into the decision but it doesn’t have to be as complicated as it may sound. There are a few, simple things to remember when looking into that second mortgage.

A second mortgage implies that you already have a first one. After living in your home for several years, the home builds up value. This is also called equity. Having equity then allows you to borrow against that. This is what is also called a second mortgage. There are some risks involved with taking out a second mortgage, but if you are careful and pay attention to the details, there won’t be much harm.

One thing to consider is to not exceed 80% of the value of your home. Most lenders these days will allow you to borrow up to 130% of your home. If you have a plan to repay that loan, there aren’t any problems. But please consider that if you default on your loan, the bank will take your home and sell it to pay off the first mortgage. Anything left over will be applied to the second mortgage. If you have borrow up to 130% of your home’s value, the money the bank makes by selling your home will not be enough to cover the second mortgage. For this reason, most banks recommend you only borrow up to 80% of the value of your home.

Another important thing to remember is that most banks will have higher interests rates on the second mortgage than the first. Don’t be afraid to shop around and check out all of your options at different banks, credit unions and other financial institutions. Pay close attention to the annual percentage rate (APR) when comparing different offers.

Look at whether or not the loan has fixed-rates or adjustable-rates. If your loan is a fixed-rate loan, the rates will never change. These are set at the beginning of the loan and will be carried out through the life of loan. If you have an adjustable rate mortgage (ARM), the lender has the right to change the rates, sometimes increasing them and sometimes decreasing them. Just make sure that you know all the terms of an ARM, if there are limits to the increases, etc. before choosing this option.

Also pay attention to terms of payment. Most mortgages have monthly payments over a range of 20-30 years. When it comes to second mortgages, most terms of payment are 15 years or less. Others may ask for a balloon payment, where you would pay only interest on the loan monthly and then be required to repay the principal in one lump sum at the end of the term.

Second mortgages have many great advantages and can be used for many purposes. As long as you are paying attention to details and understanding everything, it could be ideal for you. And as if with most financial situations, make sure that you ask questions when you do not understand.

Let’s Look At The Differences

One in every three Americans belongs to a credit union. That’s more than 79 million people who belong to one of 10,000 credit unions with more than $480 billion in collective assets. So what do they know that others don’t know?

First credit unions are member-owned. If you have an account, you are a part owner in the enterprise. In credit unions, net income is earned only to the extent necessary to build sufficient capital reserves. Earnings over and above this are returned to the members through loan and savings rates.

Next, credit unions are not-for-profit. This status helps explain why interest rates tend to be better and fees fewer at credit union than at banks. The profits they do make are distributed as dividends to their members.

Due to their not-for-profit, cooperative structures, credit unions are exempted from most state and federal taxes. Banks have spent a lot of money in lobbying fees trying to legislate credit unions out of existence.

When it comes to personal attention, high-quality service and low fees and rates, consumer satisfaction and better security measures, credit unions continue to knock the socks off other providers in the financial services marketplace.

What Is The History And How Did Credit Unions Begin?

The first American credit union was founded in 1909 in Manchester, N.H. Credit unions have prospered since then, but their popularity was limited due to convenience. They couldn’t offer as many branch locations and as many automated teller machines.

President Franklin D. Roosevelt signed the Federal Credit Union Act into law to “promote thrift and thwart usury,” and banks have pretty much been gunning for them every since.

With the dawn of online banking, access to a credit union is now as convenient as the nearest computer. Credit unions have started to solve the lack of ATM problem by joining networks.

While paying a noncredit union service charge at ATMs was a problem in the past for members, they can now use any of the 101,000 Pulse ATMs across the country free of charge.

Now customers say their credit unions are actually more convenient than traditional banks. You get business done a lot quicker and you get better rates, citing a CD purchased at 4 percent by a local member.
So What’s The Catch With Credit Unions?

Ah, yes, there is always a catch! To join a credit union, you must be eligible for membership. Luckily, there are so many credit unions from which to pick, almost anyone is eligible for at least one.

Membership requirements range from military service to place of employment and school attended to current place of residence. If you do not match any of the requirements then check out National Credit Union Administration Web site.

No institution run by humans and their computers could possibly claim to satisfy everyone all of the time. Occasionally I’ll hear of a credit union that has instituted some silly fee, and too many have opted for “bounce protection” instead of real overdraft protection for their accounts.

Yet most people who have abandoned their banks for credit unions are thrilled they made the switch. You might want to give it a try!

The sad effects of the housing market continue to impact many companies. In a recent study the current housing market looks as though it will drop immensely in the fourth quarter also for banking companies across the globe with housing assets. It looks as though Deutsche Bank analyst Michael Mayo believes that large banks like Merrill Lynch, Citibank, and Bank of America will lose a combined $10 Billion dollars during this upcoming quarter.

Mayo feels that the bulk of this pain will be by Merrill Lynch and Citibank. The impact on these loses are felt by the companies and many different aspects of the economy. Merrill Lynch already lost nearly $8 billion this last quarter and now it looks like it isn’t going to get any better and write downs will continue to happen. What is sad is that investors will have to continue to worry about these banks and their assets over the course of the next couple years. Mayo believes that it will continue down this path making it hard for investors like you and me to get good loans with good rates.