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Mortgage Default Rates Australia

A leading Australian credit ratings firm has warned those in love to be cautious when taking on debt for a partner. It says debts taken on for a partner, when things are rosy, can become a real hassle if the relationship breaks up.

For example, women taking on debt for a husband or partner could find they are legally liable for that debt after the relationship has run its course, and the consequence of not being able to pay up could be credit difficulties later on. Even if an ex promised wholeheartedly they would give you the money back.

A Veda Advantage study has shown Australian women are more likely to be named on utility bills than men. It believes this shows women take on more utility debt than men. The study showed 58 per cent of Australian utility bills were in the name of women, compared to just 42 per cent for men. In Australia, the utilities report to the credit reference agencies, so failure to pay these bills can lead to future credit problems. Even if an ex has failed to give you what was owed by them.

Women be warned, studies have also shown men are worse at paying back their debts.

Research by another credit ratings firm, Dun & Bradstreet, revealed men are much more likely to fail to make repayments on their mobile phone accounts than women. Their findings showed nearly twice as many men fail to pay their mobile phone debts than women, at 57 per cent. Also, 57 per cent of men fail to repay their cable or satellite bills, compared to just 42 per cent of women.

Another Veda Advantage study, into the repayment habits of men and women, has highlighted that men are much the greater offenders when it comes to failing to repay loans. Men are responsible for 62 per cent of defaults on loans and overdrafts and account for more than half of mortgage defaults. They are responsible for 55 per cent of overall defaults on all types of credit accounts, it is claimed.

Easy ways to avoid being burdened with an ex’s debts include:

Don’t put your signature to credit agreements without fully understanding the implications. Once signed, a credit contract renders a consumer legally liable for meeting the payments or gives responsibility for the debt.

If lumbered with bills to repay by an ex, it may be worth getting sound legal advice or talking to the companies owed money. They may be willing to offer alternatives to avoid a customer defaulting on a debt.

Know your partner’s finances. If making major purchases, such as a car or house, it is worth making sure any credit agreement is signed by all parties. This will avoid you carrying the can alone if a relationship ends.

Letting a spouse or partner become an additional name on your credit card will leave you liable for their spending, so be careful.

Get your ex off a credit card account immediately if you break up, otherwise they may go on a spending spree at your expense.

Protect your money in current, savings and cheque accounts by contacting your bank to get the accounts closed immediately after a relationship breaks up.

If you move home after a break up, make sure all statements are sent to your new address, so that you don’t miss any payments that could affect your credit rating.

If you are worried that your credit rating may have been affected by unpaid debts after a break up with an ex, then check your credit report for peace of mind. Credit reports can be obtained free of charge by writing to Veda Advantage and Dun & Bradstreet, Australia’s credit checking firms.

About the Author:

Tristan Dunston is an independent public relations consultant specialising in finance and privacy matters. He loves whitewater kayaking and photography

Article Source: ArticlesBase.com - How Women Can Avoid Getting Lumbered With Their Ex’s Debt

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Mortgage Fraud In Virginia

FOR IMMEDIATE RELEASE:

Contact: Mortgage Fraud Examiners

Phone: 800.540.EXAM (3926)

http://www.MortgageFraudExaminers.com

 

LOAN AUDITS THE LATEST “FORECLOSURE RESCUE†SCAM

Mortgage Fraud Examiners, the investigative firm who warned the public about loan modification scams and the “criminal loan modification trap†is now warning the public of this latest scam.

November 18, 2009 (Ashburn, Virginia) – When the mortgage crisis hit American homeowners full-force, companies offering “foreclosure rescue†and “loan modification†companies sprouted like weeds.  Most promised troubled homeowners quick-fixes for high fees, and failed to deliver after collecting their money, leaving families poorer and closer to homelessness.

The new flood of loan audit companies is fueled by the spread of loan modification companies in an attempt to side step the upfront fees that the states have prohibited these companies from charging. They’re the proverbial “wolf in sheep’s clothing.â€

Mortgage Fraud Examiners is a project of Lex Consulting http://www.instantlawpartner.com. For over 30 years, Lex Consulting has provided litigation support to attorneys, helping them break into new areas of practice, or providing specialized advice for complex cases requiring novel approaches to the law.  Due to the recent housing crisis, Mortgage Fraud Examiners, a team of specially trained attorneys, was created to provide lawyers with comprehensive assistance to help them keep their clients in their homes.

Mortgage Fraud Examiners CEO Storm Bradford explains: “Although forensic examinations of mortgage transactions can be of substantial value to a homeowner, regrettably, most companies providing these so-called ‘loan audits’ are nowhere near qualified to do so. They are performed and sold by persons with no legal training, such as, former real estate agents, mortgage brokers, or loan processors, who input data into some software program. The “audit†is a useless checklist of the documents provided to the “auditor,†with no information about the legal implications of the documents. It's that old adage on computer software: 'Garbage-in, garbage-out.' We do our forensic examinations mostly for attorneys and their clients.  Knowledeable attorneys are going to spot a scam ‘audit’ a lot quicker than a layperson.  We have to provide services that withstand the scrutiny and demands of a trained legal eye. You need a specific and unique legal knowledge to do a forensic examination of a mortgage transaction; a ten-minute software audit is no substitute for three years of law school. We’re legal professionals looking for things that software can't find, besides, we know what to look for!â€

“A true forensic examination inspects the homeowners’ appraisal, mortgage and supporting documents, in the context of the dealings surrounding the creation of those documents, so legal experts can discover legal defenses a homeowner can use to avoid foreclosure.

Daniel M. Gray, an attorney in Northern Virginia specializing in foreclosures, employs the services of Mortgage Fraud Examiners explains, “I’ve reviewed several of these so-called ‘audits’ from different companies using auditors with no legal backgrounds, and found them to be totally unsatisfactory and legally insufficient. Mortgages are contracts, nothing more, nothing less. The examination must be able to identify contract defenses, torts, regulatory violations and all other types of legal anomalies. I made the choice to use Mortgage Fraud Examiners versus ‘audits’prepared by these non-lawyer audit firms, because they give me the evidence I need to get my client a positive outcome.â€

How does a consumer spot a legitimate loan auditor from an untrained one?  “Ask the right questions,†Bradford advises.  “Ask how they do they conduct the audit- is it software, or are there specifically trained attorneys spending real time examining the documents looking for contract defenses?  If they’re not performing a forensic appraisal that should be a clue. We find appraisal fraud in four out of every five mortgage transactions we examine. Be wary if they tell you something vague like, 'Attorney backed,' or they’re ‘certified loan auditors.’ Either legal professionals are performing the examinations, or not, and there is no schooling or certification process to becoming Joe the Auditor. Someone could have been a ditch digger last week and doing ‘audits’ this week. Homeowners need to be careful. You even have attorneys doing loan modifications instead of doing what they are paid to do—that’s looking for contract defenses.â€

"There really are many legal options available to homeowners facing foreclosure," Bradford concludes.  "But there are no shortcuts to finding them.  Every claim has unique facts, every claim has different applicable law, and only a legal specialist is going to find the answers to help each individual borrower stay in their home."

About the Author:

Article Source: ArticlesBase.com - LOAN AUDITS THE LATEST “FORECLOSURE RESCUE†SCAM

Tampa Bay Real Estate Investors Association/ North Tampa Karen Hale/ Realtor

Mortgage Fraud Mi

The Citizens Advice Bureau (CAB) has issued a report which has shown that hundreds of thousands of Britons are falling further into debt, ending up in court and facing the repossession of their homes due to irresponsible lending practices, inaccurate advice and in some cases, downright fraud.

The CAB’s report; Set Up To Fail: CAB Clients Experience of Mortgage and Secured Loan Arrears Problems (December 2007) has revealed that some mortgage brokers are issuing loans, named aptly ‘liar loans’ or self certification loans, to people with inadequate credit ratings and poor financial acumen, without them having to prove their incomes.

Many people interviewed in the report said that they completely relied on the broker to guide and advise, and most of them were not told the severity of the consequences they would face is they fell behind with payments. As well as criticising brokers, the report says that the regulatory authorities and Labour government are not doing enough to protect vulnerable home owners from such scams.

The chief executive of CAB, David Harker said: “The cavalier behaviour of some brokers and sub-prime lenders is seriously undermining home ownership and hitting the most vulnerable borrowers hardest. Our research suggests that many aspiring homeowners have been mis-sold unsuitable and costly home loans that are doomed to fail from the start.

“Many sub-prime lenders are flouting the rules on responsible lending by granting loans when it’s clear the borrower will not be able to afford to repay it from the very outset, then getting tough immediately things go wrong. Far from providing housing security and a valuable asset, home ownership has proved a fast track to debt and homelessness for many vulnerable borrowers on low incomes.â€

The report from the CAB was based on a case study of 1,200 customers from 360 advice centres nationwide, the organisation was involved in 57,000 cases of mortgage and secured loan arrears from 2006-2007. The CAB also said that as many as 770,000 people had missed at least one secured loan or mortgage payment in the previous year. Brokers sell secured loans through purchasing secured loan leads from other companies or following up leads from their own websites.

Another revelation made by the CAB report is that the number of rejections for secured loans from high street banks and mortgage lenders is rising, this is resulting in people seeking credit with other, less reputable companies.

Mortgage payments of one kind or another, are claiming more and more of people’s monthly income. A third of people involved in CAB’s study paid more than 50% of their income in mortgage and secured loan payment, and for 12% the repayments amounted 70% of their salary.

Recent months have seen a huge increase in house possessions, this is partially due to the credit crunch and house price slumps alongside rising interest rates. The Council of Mortgage Lenders (CML) reported a 75% rise in house possessions last year to the staggering figure of 30,000.

The many difficulties faces by homeowners is reflected in the recent growth of the debt collection industry which has quadrupled in size since 2003.

This evidence shows that “homeowners in a financially and emotionally vulnerable situation end up selling their houses for less than they are worth, in return for a tenancy that offers little security of tenure.†Shelter, a UK housing charity, is cited in the report, highlighting that people are increasingly using credit cards to pay their rent or mortgage.

Shelter’s chief executive, Adam Sampson, said: “Clearly, this is a huge problem which will only become more widespread as housing costs continue to rise. We would urge anyone struggling with the cost of their mortgage or rent to seek independent financial advice. The number of people hit by the credit crunch, interest rate hikes and unaffordable housing costs are rapidly rising.â€

About the Author:

Jemma is an author of several articles pertaining to Mortgages, Insurance, Life Insurance, Van Insurance, Car Insurance, Loans, Credit, Debts and other Business and Finance related articles.

Article Source: ArticlesBase.com - Customers’ Homes at Risk Due to Bad Advice

Michigan Foreclosure Report T.V. - Episode 170