Upside Down Mortgage

Archive for December, 2006

Loan Modification Trial Plan

Question: I am on the trial plan period for my loan modification. What is the possibility that I will qualify...?

for this progam HAMP after the trial period is over? Has anyone being denied after the trial period?

Answer: Your loan modification is permanent! What you are paying every month is set in stone. You can only be disqualified if you are unable to pay the amount required for each of the first 4 months.

Trial Plan Fraud

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Mortgage Fraud Task Force Florida

The growing number of fraudulent bank foreclosed homes rescue schemes in Florida has become a thorny issue, especially among political candidates. Attorney General Bill McCollum, who is a candidate for governorship in Florida, admitted that neither his office nor the state has done enough to stop mortgage fraud from destroying the lives of many distressed homeowners.

So far, there were over 50,000 cases of identified illegal real estate deals in Florida. McCollum blamed his office’s limited jurisdiction and lack of resources for the failure to stop fraudulent bank foreclosed homes rescue schemes.

He said that both the state and his office do not have enough people trained to perform investigations on criminal mortgage fraud, thus stopping fraudulent activities in the future may be impossible.

Mortgage fraud falls under white-collar crime which requires well-trained personnel to conduct investigations. McCollum said that only a handful of police agencies in both state and local levels have people who could perform white-collar undercover investigations.

The state attorney general do not have the authority to file criminal charges but he can conduct investigations on fraudulent bank foreclosed homes rescue schemes, bring attention to the issue and coordinate enforcement efforts across Florida.

In 2007, McCollum established a task force to go after unscrupulous people. But he admitted that his office failed to focus on the growing mortgage flipping fraud cases because of other consumer protection issues that swamped his office.

Since it was setup in 2007, the task force had filed only 14 civil lawsuits against mortgage fraudsters and is currently investigating 81 cases, a fraction of what is reported to be over $10 billion worth of illegal deals.

McCollum argued that his office cannot do everything. Since he took office in 2007, his main focus has been cybercrime and preventing sexual predators from victimizing children on the Internet.

But industry experts noted that most of the task force’s efforts and lawsuits filed were focused on companies offering bogus foreclosure prevention schemes and not on illegal mortgage flipping.

Fraudulent mortgage flipping increased during the peak of the housing market, with about $10 billion worth of shady deals suspected in Florida alone.

McCollum said that during the campaign, he will continue to highlight efforts of his office to go after fraudulent bank foreclosed homes rescue schemes, but added that people would prefer to hear more about job creation and economic recovery.

About the Author:

Joseph Smith has been educating buyers on the finer points of Properties for Sale at BankForeclosuresSale .com for over five years.

Source - Fraudulent Bank Foreclosed Homes Rescue Schemes Still Rampant

Loan Modification Techniques

Credit Score

A credit score which is the numerical representative of the credit worthiness of a particular person which is derived from a statistical analysis of that person's credit files. A credit score is based primarily from credit bureau records and relevant credit information from other sources. A credit score is important in the sense that it is what is used by lenders like banks and credit card companies in evaluating the potential risk in lending money to a loan applicant. Such evaluation or specifically credit investigation is performed by financial institutions to mitigate the losses they suffer from bad debt. Credit scores in this sense are the primary determinants in deciding who qualifies for a loan, at what interest rate, and what credit limits. The use of credit scoring prior to granting credit is a must in the implementation of a trustworthy reliable system. Credit scoring is however, not limited only to banking institutions. Other organizations such as loss mitigation and loan modification companies, as well as mobile phone companies, insurance companies, employers, landlords, and government departments employ the same techniques.

Loan Modification

Loan modification is a systematic process in which the terms of a loan are modified outside of the original contract terms in order for fulfillment of the obligation be possible for the debtor. All terms of the loan modification should be agreed by both the debtor and the creditor, because in reality, loan modification benefits both: the debtor is able to fulfill and extinguish his obligation and the creditor gets paid. All loans can be modified or restructure in general. Loan modification may come in one or a combination but not limited to reduction in interest rate, or a change from a floating to a fixed rate, or in how the floating rate is computed; reduction in principal; reduction in late fees or other penalties; lengthening of the loan term; and capping the monthly payment to a percentage of household income. Available loan modification programs vary accordingly depending on the time the modification is to be applied, whether the borrower at that time is current, late, in default, in bankruptcy, or in foreclosure. There are also instances when the lender is the one who initiates the proposal of applying a loan modification solution. The lender usually does so in expectation that the borrower may be able to afford a lower payment, with the premise that a performing loan which provides current payments will be higher in value than a foreclosure sale which will provide future payments but obliges the lender to incur keeping costs while the mortgaged property is still unsold. The federal and state governments also implement certain schemes to urge borrowers to participate in loan modification programs through the provision of several incentives. It is however, often very hard to qualify on such schemes.

How Loan Modification Affects Credit Scores

The Obama Administration’s Making Home Affordable Program has given new hope for homeowners who are starting to be engulfed by the fear of losing their homes at the brink of foreclosure. The global financial crisis currently corrupting the world economies have put homeowners in confusion, being dumbfounded and confused, most homeowners have no idea of what the best thing to do is. The existence of predatory lenders who require homeowners to be 3 months late on mortgage payments before considering any negotiation for a fair loan modification solution doesn’t make their situation easier. Such act of delaying payments by three months or more causes much damage on one’s credit score. Such damage will create much difficulties in the future for mortgage purchase or refinance approvals, rental applications, as well as limit available funds on current credit cards. Three months or more of delinquent payment is never a requirement for good loan modification. If your are one of the many unfortunate victims of these scammers act now and get a good loan modification company to help you fix your credit score. And please make sure the loan modification company you will choose has qualified attorneys in its arsenal.

24VIPINC offers the best kind of loan modification available in the industry.

About the Author:

Who am I? I am who I am.. 24VIPINC Loan Modification CallComLeads Loss Mitigation Leads

Article Source: ArticlesBase.com - Credit Score and Loan Modification

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