Archive for the ‘Home Loan Questions’ Category

Predatory Lending Cook County

Illinois foreclosure listings represent the fourth highest in the country.

California is at the top of the list with 32,500 followed by Florida with

approximately 27,000 listings and Colorado at roughly 11,000 filings.

Combined with Illinois, these four states account for 52% of all homes in

foreclosure nationwide.

The staggering foreclosure rates in Illinois prompted Governor Rod

Blagojevich to file amendments to HB 4050, the Illinois Predatory Lending

Database Program. HB4050 protects consumers fight predatory lending

practices by shifting focus on the lenders who offer non-traditional types of

loans.

Under the proposed rules for HB 4050, Cook County first time homebuyers

and owners opting to refinance their primary residence will be

recommended for financial counseling if the loan they are considering

contains any of the following provisions:

? Permits interest-only payments;

? Allows payments that results in negative amortization;

? Total points and fees payable by the borrower exceed 5% of the

amount of the mortgage;

? Approval of the loan relies on the stated income of the borrower;

? A pre-payment penalty is included; or

? The financing transaction includes a second lien on the property,

often known as an 80/20 loan.

HB 4050 main purpose is to alert consumers that subprime lending

practices can lead to financial ruin. Todays housing market focuses so

much on the credit history of the homebuyer, and with some homebuyers

who have had past credit issues, spotty employment or not enough funds

for a down payment --- some lenders have gone to great lengths to get

their business. However, this practice is costing the same homebuyer way

more than they can afford ¨C without them even realizing it. By enacting HB

4050, these same homebuyers will be instructed and informed regarding

the types of loans available, the type of loan they are considering and

what it means to their financial future. Many of these items are not

currently provided by the lenders who practice subprime loan lending.

Luckily, Governor Blagojevich has an eye on his Illinois homebuyers and the

lenders who serve the Illinois residents. Currently, HB 4050 is in the pilot

program phase and is being piloted in Cook County. Illinois residents

outside of Cook County should expect to see it offered to them also in the

near future. The governors¡¯ mission is to see the Illinois foreclosure listings

numbers drop and this is a great start to realizing that mission.

About the Author:

Bob Smith is a freelancer but regularly writes for ForeclosureListingsNationWide.com. You can get more information on Illinois foreclosure listings at http://www.foreclosurelistingsnationwide.com.

Source - Illinois Foreclosure Listing Tops 11,000 Addresses, Governor Steps In!

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I have a 1 yr. lease on a fairly new home with 2 other people on the lease with me. We are in the 8th month now and we all have plans to end it after the year is up.

Last week, and just today, we received in the mail a notice titled "Notice of HUD Rights" from a company called National Foreclosure Relief based in NV (addressed to the landlord/homeowner). At first, I thought this was some type of solicitation and threw the first one away. It states that the notice is not an attempt to collect a debt but that the time to enter into a repayment plan is running out.

On the back is states:
"As of Jan. 19, 2001, the US. Department of Urban Development mandated that all borrowers who had loans governed by their loss mitigation guidelines be informed as to their rights to repayment programs."...

The Homeowners have other properties they manage/lease aside from working in separate professions. I am almost certain that if a foreclosure is of concern then they would know about it.

My question is that if there is a foreclosure, do they have to give us a month notice or can they simply tell us to leave at any time? The agency would not tell me anything but instead tried to get me to go to a website and pay 29.95 to get information from 'legal experts' who could tell me what my options were. It all sounds like a gimmick to me. Can anyone clarify this for us?

Also, my question is do we have a right to know if there is a foreclosure, and do they have to give us a month notice or can they simply tell us to leave at any time? The agency would not tell me anything but instead tried to get me to go to a website and pay 29.95 to get information from 'legal experts' who could tell me what my options were. It all sounds like a gimmick to me. Can anyone clarify this for us? Thank you

Thanks in advance.

Countrywide Predatory Lending Settlement

The economic recession has affected a lot of homeowners. And in areas where the home values have declined significantly, many of them are now realizing the truth that they are unable to pay for their mortgages. As most of them were not ready for the risks involved with these loans, they are now finding themselves applying for countrywide loan modification to help avoid foreclosure.

Countrywide Financial Corporation is a Financial advertising and service company (which means that it has possession of stocks of other companies) that develops residential (Countrywide) mortgage banking and other dealings.

Through its National Homeownership Retention Program, the Bank of America provides their customers the significant help and resources that they need to maintain homeownership. It also aids their customers to achieve $8.4 billion to 400,000 Countrywide borrowers nationwide. Not only this, but Countrywide has started positive outreach to help suitable borrowers.

At this time, the Federal government is now encouraging all lenders to consider principal reduction for borrowers who meet certain requirements. If you are a borrower who meets a lender's requirements for a countrywide loan modification option, then chances are you are qualified for a reduction in your principal balance. Although not every homeowner can avail of this option, those who are suited to this will find it very helpful in avoiding possibilities of foreclosure. Here are some helpful guidelines to help you know if you might be eligible.

First, Countrywide settled claims that were valued to be $8.6 billion dollars to homeowners who were holding risky loans and ever since that original settlement, two other states were also included to help other borrowers as well. Borrowers living in these states have the option of applying for a principal reduction. The states that are included in the special Countrywide Loan Modification program are:

Arizona, Texas, California, Connecticut, Iowa, Illinois, North Carolina, Michigan, Florida, Ohio, and Washington - as well as Tennessee, Mississippi and Pennsylvania.  If you live in one of these states, then you may be qualified to participate in the Countrywide loan modification program offered as part of the predatory lending lawsuit.  However, should you be ineligible, then you can still apply for a reduction of payment in order to avoid foreclosure.

Second, for those homeowners who are stuck in Pay option Arm loans (this is where the loan balance actually augments with each minimum payment), then you are a good candidate for a principal reduction.

In most cases, each Countrywide loan modification is examined on a case by case basis, but borrowers can make the odds better by understanding the lender’s requirements for acceptance and the proper procedures on how to how to complete the application properly. It is highly recommended that homeowners apply for a Countrywide loan modification as most lenders have set aside billions of dollars to assist borrowers in saving their homes.

About the Author:

A Computer Engineering student and loves to travel. Reading current news in the internet is one of his past times. Taking pictures of the things around him fully satisfies him. He loves to play badminton and his favorite pets are cats.

For more inquiries, you may want to visit Countrywide Loan Modification or call directly at 1.888.864.1663 (TOLL FREE) for details.

Source - Countrywide Loan Modification: Do You Qualify for a Principal Reduction