Upside Down Mortgage

Archive for September, 2007

Mortgage Help From Government Uk

Question: Is Vince Cable right that mortgage lenders are sweet-talking the government into underwriting their business ?

"Right from the outset of the Northern Rock crisis the government have given the impression of being outwitted by people in the industry, who've made fortunes in the upswing of the market and now want the taxpayer to pay."

http://uk.reuters.com/article/businessNews/idUKLC6617720080913?pageNumber=2&virtualBrandChannel=0

Answer: Yes he's absolutely right. Also thery are doing the same for builders by giving tax breaks (stamp duty) on new houses. The builders have made a fortune in the past and now they are whingeing that things have gone wrong. Nobody's problem but theirs (and their shareholders). They should remember the previous falls in house prices every ten years or so since the 70s and plan ahead.

Don't Panic - UK Government Censors news story titled "Banks are 'technically insolvent'"?

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Predatory Lending In California

Consumers who are facing foreclosure have become prime targets for former or current mortgage brokers, and other "loss mitigation" or "loan Modification" companies. You should think twice before sending your money and signing a contract with any company that does not allow you to actually retain an attorney to negotiate on your behalf. Many of these predatory companies state they are "Attorney based", Attorney backed", "Stop foreclosure companies", "Foreclosure consultants" or a myriad of other new terms that keep popping up. In most cases these companies offer money back guarantees, but actually keep their "hard costs" leaving you with a paltry refund when they are unsuccessful in modifying the terms of your original loan. Many of these companies do nothing for you an may just run with your money. In most cases the best they can get for you is a Forbearance agreement from your lender allowing you to repay past due monies, which you may be able to easily do yourself. Be sure to ask if the Attorney is onsite and available for a consultation, and ask for their Bar number as part of your diligence.

Unless you retain an Attorney or a Federally licensed HUD counselor, beware you may be getting scammed out of the last of your hard earned dollars. An attorney can leverage many issues and deal with the actual legal department of your lender who likely wants to avoid going to court on your case and would rather modify your interest rate to get you a new payment you can afford. In speaking with California Real Estate Attorney Marc Bonanni of Consumer Debt Advocate ( http://www.consumerdebtadvocate.net ), a law firm specializing in just such Home Loan Modifications and Loss Mitigation in all 50 states, Marc told me that " We've had tremendous success working with lenders to get them to modify the existing terms of the loan, lowering interest rates and monthly payments to one the borrower can afford, and also getting them to forgive past due balances or principal balance with forbearance agreements to avoid a foreclosure. It all is predicated on the true financial hardship we can prove to the lender and if there were any Truth in Lending violations or Predatory Lending violations on the original loan. Mortgage fraud has been rampant, specially with sub-prime borrowers and our success rate has been excellent in the loan modification process". Marc also states that "Unfortunately, many of our clients have been through the ringer with these non attorney loan modification companies who wind up doing nothing for them and who make matters worse as they cannot afford the client any legal protection. By the time they get to us, it may be too late to save their home and they are out thousands of dollars and critical time that were wasted in a poorly handled attempt to modify their loan by non-attorneys who are dispensing legal advice. It's really sad when I have to tell a potential client who I knew we could have helped save their home and modify their loan that they are too far down the path with their lender to stop the pending auction of their home."

Also beware of companies who offer to save your home and who offer you a new loan, but require you to deed title to them for doing so. Most of these scams are stealing all of your equity by paying the amount you are in default to the bank. If you have $60,000 in equity, and are $11,000 in the arrears with your lender, that company just made a 6x return off their investment and left you with a mortgage payment and no equity in your home. They will then be waiting for you to default or will force you out of your home to realize their profit. By hiring an Attorney, you could likely get your lender to take that arrearage you owe and make a repayment plan you can afford, or even get them to put that money on the back of your loan so you can start meeting your new lower monthly obligation.

Regardless of your situation, it is important to make sure you due diligence on any company you engage to help you avoid foreclosure. Beware of the scams that are out there and make sure an attorney is actually retained by you as part of the process to protect your legal rights and ensure both compliance and success in the loan modification process. Licensed Attorneys are held to a strict code of conduct and higher ethical standards, and although they cannot guarantee a successful outcome of your case, they are much more likely to take it only if they feel they have a strong chance of success.

About the Author:

Bill Baskin is a nationally recognized expert on Mortgage, Credit, Automotive, and Debt topics, having been a quoted source on a variety of newspaper, radio, and television pieces. He currently writes for

http://www.consumerdebtadvocate.net
on consumer education pieces.

Source - Foreclosure and Loan Modification Predators

John Russo: How to protect CA from predatory lending

Commercial Loan Modification Agreement

Mortgage fraud is on the rise today in the housing market, significantly so since 2001. In a real estate market where mortgage fraud was few and far between it has grown to high levels for both buyers and sellers and has created havoc and financial damage in the lives of many homeowners and home buyers. First-time home buyers and seniors are two of the highly targeted markets for home mortgage scams.

Mortgage fraud actually refers to a variety of scams. Most of these scams involve inflating the value of a house or other real property for more than its value and the scammer pockets the difference. It significantly affects your home buying, home-selling and home equity. It can raise its ugly head for subprime loans, foreclosures and reverse mortgages. It also can affect insider trading as it relates to mortgage securities.

The following tips will show you how you can avoid these scams and stop or spot mortgage fraud. It'll help you become informed and prepared if you're a homeowner looking to refinance or sell your home or if you're a home buyer.

Be wary of any investment opportunities that offer "no money down" or "cash back at closing." Be wary of adjustable mortgage interest rates and thoroughly understand what this means before you go this route.

Adjustable interest rates have created many home bad credit problems. Many home buyers just did not understand or were not fully informed about the future jump in interest rates and what that would mean. Many home buyers were not prepared for these high interest rates.

Make sure to check the history of the sales on the property. How many previous owners were there for the property? If there have been several sales within a short time it indicates the values are inflated.

Make sure to have your own real estate agent, real estate professional or real estate appraiser establish the value. Your best bet is to hire you own appraiser or a bank official who can validate the property price in case it's inflated. This can be hard to tell in rapidly rising or falling markets. Scammers who are intent on fraud will pay an appraiser for the appraisal and report they want.

Make sure they are using comparables - that is getting the prices on similar properties that have sold in your area - not the prices on listed homes that haven't sold. Check with your local tax assessor or whoever records the deeds to the property to make sure that the seller really does have title or own the property.

Common sense would tell you never to let anyone else use your name or Social Security number to buy a home or other property, even if they offer to pay you. But believe it or not this does happen.

Make sure to read and understand everything on your contract and other documents that you're asked to sign. Talk to your real estate agent if you have one or a real estate attorney if you need anything explained.

If any of the documents have any blank areas or have any information that is not accurate, don't sign. Check to make sure that your income is not overstated, the, source of your down payment is correct, the sales price is right, the type and length of your employment and states your intention to live in or on the property as your primary residence not use it for a rental if that's the agreement.

Make sure to deal directly with the mortgage broker you've been working with or directly with the lender. Don't let anyone lese handle or arrange your loan for you. Make sure you get a copy of all the signed closing documents.

Make sure to watch out for any of the older folks or first-time home buyers you know who may be unfamiliar with real estate transactions and real estate financing.

Mortgage fraud is most rampant in Nevada, California, Florida, Arizona and Illinois so if you live in these states watch out.

Much of the real estate fraud or mortgage fraud or scams are due to real estate insiders - mortgage brokers, lenders, loan officials and real estate brokers.

For example: your real estate broker insists that you use a certain lender or they have a mortgage company on site or in the same complex. Sure, many can be on the up and up but some are not. Your real estate broker should help you find the best and not steer you to one that he is in cahoots with. You have the final say.

Don't let any lender try to talk you into borrowing more money than you need or can afford. Make sure to take your time and don't feel pressured or rushed. Beware of any nothing-down loans and altered information to qualify you for a home loan. Don't borrow any money that you can't afford to pay back.

Ask your family, friends, co-workers and associates, who you trust who have recently completed a home mortgage, for referrals to mortgage brokers, lenders or other real estate professionals. This would be true also for loan modifications and "restructuring" loans.

Lastly make sure you get the best credit and financial counseling, go to home buying classes, real estate financing seminars or workshops and brush up on your mortgage and home buying education before taking the plunge. Avoid mortgage fraud by knowing the pitfalls and proceed slowly and cautiously and get an honest real estate broker or professional for the best home mortgage experience.

About the Author:

For more info on bad credit real estate financing or finding the best home loan or home mortgage go to http://www.Real-Estate-Financing-Tips.com for real estate financing tips, trade secrets, help, quotes and resources including refinancing and creative financing

Source - How To Recognize Mortgage Fraud

National Home Consultants - Cable Commercial (06-01-2009)