Upside Down Mortgage

Archive for July, 2007

Mortgage Fraud Straw Buyer

If at any time the adage of "Let the buyer beware" were

applicable, it would certainly be when a homeowner is

experiencing foreclosure. Distressed homeowners

undergoing foreclosure are often approached by less than

ethical business people (lenders, financial advisor and/or

realtors) that are more interested in their own financial

gain than "helping" the homeowner to get out of

foreclosure.

A homeowner should be very wary of such too-good-to-be-

true offers and keep in mind that each foreclosure

situation is unique to the individual homeowner. While

some homeowner's may be seriously in debt, unemployed and

overextended, others may have enough equity and credit to

be able to sell their home or restructure their loan. The

first rule of thumb a homeowner should determine to do is

to explore ALL their options, this would help them avoid

or be tempted by some of the following foreclosure scams.

Equity Stripping or Skimming

In this type of scam, a "buyer" approaches the homeowner,

offering to assist the homeowner out of financial trouble

by promising to pay off their mortgage or give them a sum

of money when the property is sold. The "buyer" may

suggest that the homeowner should move out quickly and

deed the property to him or her. The "buyer" then collects

rent for a time, does not make any mortgage payments, and

allows the lender to foreclose. Remember, signing over

your deed to someone else does not necessarily relieve you

of your obligation on your loan. A homeowner may find

himself saddled with the loan he thought he had signed off

on and therefore, in a worse financial situation then the

previous one he or she was experiencing.

If the home has a lot of equity in it the "skimmer" will

sell the home, pay off back debts on the home, and keep

the equity the homeowner could have had if they had sold

their home themselves.

Straw Buyer

A straw buyer (usually a person with good to excellent

credit) is usually offered a payment, often several

thousand dollars, for the use of their name and credit

information to make a "false purchase". A straw buyer may

or may not know that their name will be on the mortgage

application. Straw buyers are also used to sign documents

that contain false information. For example a straw buyer

might sign something that states that the purchaser

intends to live in the property when they really have no

intention of doing so. If any document is signed that

states the property is worth a specific amount, but the

straw buyer has never seen the property, they are

committing fraud. If the lender asks if the down payment

came from the straw buyer's own funds and he/she answers

dishonestly, this too would be fraud.

After a straw buyer takes title to the property, the

originator of the scheme, be it a realtor or loan officer

behind the scheme usually assumes the mortgage and the

title to the property. However, a straw buyer may still be

responsible for a mortgage even after someone else has

assumed it because it was obtained fraudulently.

It is a criminal offence to obtain credit under false

pretences. If payments are not made on the mortgage, the

lender will foreclose on the property to recover their

losses. The straw buyer could be sued for the difference

between the amount of money received from the sale of the

property and the amount of money owed on the mortgage.

Signing Over Their Deed

A distressed homeowner having trouble keeping up with the

mortgage is pursued by another lender, who tells him it's

necessary to deed the house over to him in exchange for

new financing. Often, the money never comes, and the scam

artist sells the property to someone else. Don't ever sign

your deed away!

In addition, a homeowner should beware of solicitations

either by mail or phone from counseling agencies that

charge exorbitant fees to ¡°assist¡± them. Some groups

calling themselves "counseling agencies" may approach the

homeowner and offer to perform certain services for a fee.

These could very well be services the homeowner could do

for themselves for free, such as negotiating a new payment

plan with the lender, or pursuing a legitimate pre-

foreclosure sale. Review the legitimacy of these

businesses with the Better Business Bureau or other

federal agencies.

Some general tips a homeowner should keep in mind is to

call or write their mortgage lender immediately and be

honest about their financial situation. Many lenders have

programs to assist homeowners in financial distress.

Also, the homeowner should make sure that they stay in

their home to make sure that they qualify for such

assistance. Most importantly, a homeowner should explore

ALL their alternatives before taking any action.

About the Author:

Nef Cortez has been a licensed real estate broker and has held various positions in the mortgage and real estate industry for over 25+ years. Visit his website at Chino Hills CA Real Estatefor information on foreclosures.

Article Source: ArticlesBase.com - Buyer Beware! 3 Foreclosure Scams and How to Spot Them

arthur kirkland oppinion

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Quicken Loans Subprime

Ross attributes his business success to the support of his hometown, Southfield, Michigan. He fondly recalls the diverse, friendly atmosphere and maintains contact with many of his old friends. The close-knit community gave him the confidence to take his career to higher levels. A Michigan State alumnus, Ross—like most graduates—was nervous about transitioning into the real world. He had little to worry; with a degree in communications and advertising, he received a position at Young and Rubicam, a full-service advertising and public relations firm straight out of college.

Although trained in advertising, Ross found little opportunity for growth within the field. He became tired of receiving the same paycheck every month and yearned for a challenge. He made the transition from steady advertising work to a commission-based mortgage agency where he’d have to work far harder. He scraped by initially, but knew it would pay off. “I still had the confidence to just jump in there and knew that if I ate a little less, not buy some things here or there, I’d work hard and make up for that.” Ross joined Rock Financial (now Quicken Loans); working with two partners, he created a subprime division of the company that lent money to people with credit problems. They ensured that all applicants originally denied would receive a loan. His division assessed clients’ financial situations and helped with debt consolidation. Business was booming; each employee at Rock Financial denied hundreds of applications based on credit, and happily handed them along to Ross and his team. Although clients had to pay higher rates, the loans allowed them to get on their feet and refinance once their other debts were in order. Their business was so beneficial and successful that it quickly grew from a three-man operation to 28 branches. The division, Boulder Financial, became Rock’s largest source of revenue, taking the company to a far grander scale.

Looking back, Ross takes great pride that when creating Boulder they grew to over 400 team members that primarily started through word of mouth promotion through friends and family. Ross states, “We had created a culture as opposed to just a workplace, people believed in us and our goals.” Many of the Boulder Financial employees who, at the time were hard working team members at low paying jobs have since gone on to become very successful in business.

Despite rapid growth, Dan Gilbert, Rock Financial’s founder, looked to expand the business by consolidation and utilizing the Internet. In the short span of a year, he deconstructed the company, including Boulder Financial, from 28 national branches to one large call center and four retail branches. Ross admired Gilbert for his bold actions and vision to foresee the dramatic change in the mortgage industry with the proliferation of the Internet.

Tragedy struck Ross’ family during this time; his brother broke his spine while diving into shallow water, becoming a quadriplegic and needing constant care from loved ones. He was sent to a rehabilitation center in Denver, where Ross flew out to spend three months helping and supporting him. Within 30 days after his brother’s accident, Ross assembled a dedicated fund-raising team of friends and family in short order.  The result of this heroic effort… 900 attendees and $100,000 to cover his brother’s medical expenses. Such a feat is only possible with a great network of friends, family and business associates. Ross affirms, “Years of treating people the ‘right way’ and having solid core values paid off as everyone in our lives rallied together to help my family.” Ross has organized nine successful fundraising events since the original gala.

The accident brought life into perspective for Ross; he wanted flexibility and invested in a collection agency. He recognized hidden potential, but that it needed someone to manage daily activity. With a fellow business partner, they took management control of Boulder Credit Services, using their previous experiences and skills to create sustained success.

As a partner, Ross purchases debt portfolios and manages a third-party collection agency. He maintains the contacts he’s made over the years to host an annual charity event to raise money for his brother’s medical expenses. His brother, who works as a sales director at Quicken Loans, inspires others by example, setting high standards for himself and expecting others to follow. His team is consistently one of the company’s top-five earners. Learning from this, Ross advises fellow business leaders to create their own values. “Not only creating core values, but living them on a day-to-day basis is definitely a key to the way I’ve done business. I don’t ask anyone to do anything I haven’t done.” He leads by example, whether it’s doing small tasks like answering phones or making large business decisions, and expects others to pay careful attention as well, preferring to surround himself with detail-oriented people.

Ross well realizes that grand visions are essential and motivating, but that following through on small details is what separates mediocrity from success. His experience is meaningful testament to the entrepreneurial spirit that never loses sight of family and reality.

About the Author:

Written by: KJones (for uwemp.com)

Article Source: ArticlesBase.com - The Real Core Values: Ross Niskar Shares Life Lessons from Business Success and Personal Tragedy

Mortgage Modifications Bank Of America

Question: Does a person need to be behind in mortgage payments in order to qualify for loan modification?

We are current on our home loan but our work has slowed considerably and we dont forsee being able to make our mortgage payments in the near future. Our loan is through Bank of America. Has anyone been able to qualify for a Loan Modification that has been in the same position? Any guidance would be apprecaited!

Answer: We went through this process...if you are on time with payments..they could care less and put you through the heck to get some assistance....when you start missing..then they care and try to work with you..sucks but its the way it is.