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Archive for the ‘Mortgage Fraud’ Category

Top Mortgage Fraud States

It seems like every day we read about another mortgage company being taken down for fraudulent activities. As the market tightens, banks have begun raising their standards for those people that can qualify for a mortgage. This affects the many mortgage companies and brokers that made their living by helping people who were turned down by traditional banks get mortgages.  Those days are gone, smaller mortgage companies and brokers are now are forced to sell the exact same products that they larger banks are selling.

This basically means, that in most cases, consumers aren’t any better off using a broker than they are walking into a regular bank.  Don’t get me wrong, smaller brokers and mortgage companies still offer a personal experience that the larger banks can't offer. The smaller brokers will work harder on your loan and know which banks to place your mortgage with. However, for the “plain Jane” consumer, who has great credit and plenty of equity, there really is very little incentive for them to use a broker any longer. This segment of the market was a huge part of the smaller mortgage companies business. Unfortunately, when business tightens, this tends to force the rats out of the wood-work, and that's why we decided to write this article.

1) Blank or incomplete paperwork – I know this sounds like a no-brainer, however you would be surprised how many times this happens. Mortgage companies are required to give the borrower two sets of paperwork, one before the customer commits to the loan and another set before the borrower closes. The first set of paperwork is an estimate based on the facts that the loan officer (LO) has so far. The second set is the factual numbers that you will be obligated to once you sign them.

Dishonest LO’s will have customers sign a blank or incomplete disclosure package after winning their trust. They use excuses like " the numbers will change anyway, don't worry about these pages" or "we wont know the real figures will be until we get the appraisal back." They will usually give you a verbal rate and payment quote and ask you to sign the application and RESPA disclosures blank.  If you are asked to sign blank papers, don't walk away from that mortgage company, run. Your closing figures will be higher than you ever imagined, and you will be forced with the decision to close a bad mortgage, or begin the mortgage process again.

If you are asked to sign incomplete disclosures, it could simply be an honest omission, however, do not sign anything until they are completed. Having a completed disclosure package gives you the ability to compare what you have been promised with what the numbers actually are. This forces the LO to explain the discrepancies instead of dismissing their higher rates or fees with a flimsy excuse.

2) They insist on using their title company or attorney to close the loan – I don’t know if you’ve ever noticed, but when you see the mortgage guys in handcuffs on the news, the closing attorneys are usually right behind them.  An often overlooked piece of paper that borrowers are asked to sign, prior to initiating a mortgage, is a disclosure that informs them that they have the right to choose their own closing agent. Most mortgage companies, honest and crooked, will suggest or assume, that you will be using their closing company.

The most common reason is that they simply have a good system set up with their closing company that allows them to close loans efficiently. Their company usually IS quicker and competitive with the market, however some are not. A good test to see if your mortgage company and title company are in cahoots is to ask your LO for a copy of his closing companies rate sheet so that you can compare prices. If the LO tells you that you HAVE to use their company, or is pushy about using their closing agent, run.  A good LO and mortgage company will KNOW that it’s your right to choose your own closing agent. They also know that if they ignore your request that they will be in violation of RESPA laws and could lose their license.

3) Department of banking and finance information doesn’t match – Every state has a department of banking and finance that regulates mortgage companies. When a mortgage company applies for a license in each state they have to provide their contact information, physical address and name of the entity or person that holds the license. All of this information are public records and can usually be found online. This website (http://www.consumeraction.gov/banking.shtml) lists each state’s department of banking and finance websites.

If you go to this website you can compare the address on the license to the address that the mortgage company provides you. If the addresses are different this could be a warning sign. If the name of the license holder, or the company is different than the company you have been told, I suggest that you make a call to the department of banking and finance before proceeding. I also suggest, that before you begin a mortgage with any mortgage company that you establish their company name, address and how long they have been in business. Doing this allows you to accurately compare their public information.

About the Author:

Aubrey Clark is an Author and editor for Direct Banc, a directory of Low Interest Rate Cards, specializing in credit cards for fair credit. Aubrey is a native of Destin, Florida but now lives in Atlanta Georgia since 1999 with his wife and four children.

Article Source: ArticlesBase.com - How to Spot Mortgage Fraud

Think you can spot a con artist? Mortgage fraud

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Mortgage Fraud Losses

Question: Do you know why the Zombie Banks won't die?

They are, afterall, still chock full of worthless mortgage paper. They just keep them on their asset sheets. I think it should be ruled fraud. It is fraud when the excutives know the assets are worthless but fail to take the losses on the balance sheet. Basic accounting per GAAP. That alone should get them in prison as well as their auditing firms. That is the law. These zombie banks are bigger and more corrupt than Enron accounting tricks. It is all fraud and illegal. Capitalize hell, they are damn near worthless except cash deposits and that belongs to the depositors, like you and I. Just a lot of cement and mortor that is unlikely worth much after that, too, is mortgaged.

Just more debt piled on worthless mortgage paper. Worth damned near nothing. No taxpayers do not want to buy those banks, my friend. A bad investment for taxpayer money. Someday you will see I am right. Zombie banks being propped up with taxpayer money called TARP or bailouts etc. Just BS, mainly.

Answer: now is not a good time to let them fail. the .gooberment doesn't want chinaInc to call in all their markers and we need them to buy up all those treasury bills the treasury plans on printing for the tarp.

Foreclosure scam, real estate scam Pt 2 of 2

Mortgage Fraud Lee County

The current foreclosure situation in Salt Lake County is moderate at the moment, but foreclosures are increasing here just as they are almost everywhere in the country.

The numbers of foreclosures are up in Salt Lake County since August 2007 and have been trending upwards, but only in slight increases. The summer selling season should improve or lessen the effect. Some increase in foreclosures is expected to continue, but it should not be a significant increase.

According to a Salt Lake Tribune article in October 2007, bankruptcy was at an all time high even after bankruptcy reforms enacted in 2005. The article didn't specifically state whether foreclosures were a factor in the rise in bankruptcies, but it did say that more young people were more heavily in debt then ever before, which can become more than people can handle when they are affected by a job loss, illness or even needing to buy a new car. This indebtedness will most certainly affect young homeowners and increase the risk of foreclosures.

Although Utah's rate of foreclosures is fifth lowest on a national level, late payments were on the increase at the beginning of last year, though they have since leveled off. Even in good economic times, foreclosures can happen with the loss of a job, heavy medical expenses, death or divorce.

Foreclosures are moderate but increasing in Salt Lake County. The market in Salt Lake is becoming more of a buyer's market with the inability to obtain credit or home financing starting to impact seller's ability to sell their homes. Many buyers are concerned about the national news and real estate reports even though the local unemployment and economic situation is better than in most other areas of the country. Now is definitely the time to buy real estate as prices are soft and loan rates low.

All areas of Salt Lake County, Utah are experiencing a rising number of foreclosures with a greater number occurring in the upper or affluent price ranges. Low and moderate price ranges (i.e. lower than $300,000) are still selling well.

Fortunately, homeowners do have options when facing foreclosure. Many states are setting up toll free relief lines and some are setting up relief funds. Other states are cracking down on predatory lending. Utah is seeking to crack down on mortgage fraud, but otherwise is not doing much to alleviate foreclosures.

About the Author:

SaveMeFromForeClosure.com is a leading source for solid information on how to avoid foreclosure and keep or sell your home. We specialize in helping people through this difficult time. We also offer information for individuals and businesses who desire to help homeowners facing foreclosure by offering help to stop foreclosure on a local level. Call 1-888-472-8380.

Article Source: ArticlesBase.com - Foreclosure Market In Salt Lake City, Utah Could Increase In The Near Future