Upside Down Mortgage

Posts Tagged ‘hud’

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.

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Loss Mitigation Application

Recent legislation at the state and federal level as well as some recent bank takeovers by the FDIC have made loan modification application rates soar. Unfortunately, most consumers on their own are having little to no success modifying their loan, unless it is just a forbearance agreement in which the lender allows the borrower to pay back any monies that are in arrears over time. This is hardly a loan modification and the late payments a have already adversely affected your credit and make it impossible for you to refinance.

Unfortunately, most companies that are not law firms can only get you a forbearance agreement, and they do nothing to protect your rights, so make sure you have loan modification attorney represent you with your lender to protect your legal rights. In fact recent legislation enacted in California Loan Modifications requires that a lender must give you a modification review prior to foreclosing on your property, and the consumer may only be represented by an Attorney for HUD approved Counselor, or they give up many of their rights in a foreclosure. Many of the "Attorney Based" or "Attorney Backed" companies actually are not law firms nor will you be represented by legal counsel and could give up many of your legal rights by using such a company. The banks will not modify willingly and only an attorney can protect your rights and apply the right kinds of pressure to a Lender's legal department to get you the result you are looking for. Even HopeNow, a free service that offers counseling to consumers is so mired in backlog, most consumers homes will be foreclosed on long before they get help.

"If you are looking to modify your loan, be prepared to have a truthful and honest about both the reasons for your financial hardship as well as your true financial picture" says Marc Bonanni, Attorney for http://www.consumerdebtadvocate.net. . "Be prepared to provide documentation as back-up. Properly preparing a case to take to your lender in the loan mitigation process is critical, and properly structuring the mitigation proposal off the information you provide is a key aspect of preventing foreclosure" says Marc.

It is also important to understand that you must meet strict financial guidelines to even be considered for mortgage mitigation. If your financial picture is so dire that you are still financially encumbered even with a 1% interest rate, it is unlikely that you will be able to save your home from foreclosure. If your lender feels they will take less of a loss if they foreclose now because there is uncertainty that you can meet your new modified loans structured payments, they would rather foreclose now to lessen their loss.

There are three key elements in any loan modification or loss mitigation process. Each is an area to negotiate depending on the borrower's unique circumstances. The first would be adjusting the interest rate of the first or second mortgage to a lower one that would be manageable by the consumer. The second would take into consideration any missed payments and penalties that are in the arrears, and structuring a repayment plan or putting those monies on the back of your loan. The third and most difficult is if your loan is now worth more than your property. Getting the lender to write down principal balance can happen in the right circumstances, especially if there are predatory lending issues involved in your case, but don't expect your lender to make you whole on your bad investment decision. Again, preparing the right argument is key and expect the negotiations to take 45-60 days at a minimum. It is an intense process and the Loss Mitigation departments at most lenders are understaffed to meet the monstrous demand of consumers who are vying for their attention from everything from late payments to foreclosures. Again, most attorneys can bypass the loss mitigation department and work directly with your lender's attorneys, so this is still your best bet for success in the loan modification process.

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 - What You Need to Know About the Loan Modifcation Process

LOSS MITIGATION EXPRESS-SALES PRESENTATION.WMV

Mortgage Fraud Hud

Many TV viewers, readers, and radio listeners hear and see many ads that sound like this is a dream come true.  According to most ads, it sounds very enticing and dream like. Make sure these are not frauds. The truth is the government regulates these loans. Regulation is done and very well by the Department of Housing and Urban Development.

Along with this thought sometimes, the information is misleading about these reverse mortgages.  Here may lay the fraud. These so-called “experts” are not associated with the federally regulated loans.  Seniors beware.

The reverse mortgage proceeds, federally funded are very beneficial. Many of the benefits include real estate planning, life insurance purchases, and long-term care just to name a few.

Check out websites, ask questions. Additionally, The National Reverse Mortgage Lenders Associate has great booklets for consumers.

What is Reverse Mortgage

You regain the equity you have in your home as a credit line, payments monthly, or a lump sum of cash.  You never need to repay the reverse mortgage as long as you live in the home. Your existing mortgage (if you have one) will be fully paid off. The payments are tax-free and can be spent however, you like with no impact on Social Security or Medicare benefits.

Who is Eligible

Age, must be age 62 or older. It is recommended that you have paid off 40% or more of your mortgage.  You should be planning to stay in your home for at least several years.  Finally, there are no income or credit requirements.

What are the Costs

Very rarely have out-of-pocket expenses because of usually lower interest rates.  The cost of a FHA HUD reverse mortgage (HECM) is significantly lower than buying and moving to a new home.  The cost of a FHA HUD reverse mortgage (HECM) is considerably lower than buying and moving to a new home.  Interest rates are usually lower than the best rates on a usual mortgage.

Who is Liable for the Estate

Since it is secured, your heirs are never personally liable for the reverse mortgage.  The heirs have to option to refinance with a regular mortgage or sell the property.

How is the Reverse Mortgage Repaid

You owe nothing as long as one homeowner lives in your home. In addition, the FHA mortgage insurance ensures that you can never owe more than the sale-price of your home, even if the home depreciates.  There is no repayment as long as one of the homeowners lives in your home. The FHA (Federal Housing Authority) ensures that you will never owe more that the sale price of your home. This is even when and if the home depreciates.  To repay the loan when you move out of the home, your estate has up to 12 months to repay.  As far as the loan balance, if the home sells more than the amount loaned that amount is handed down to your heirs.

Keeps these steps in mind while considering the Reverse Mortgage.

About the Author:

See how you can build a true income generation system where literally, it handles every aspect of the business for you--leads, sales, and all follow up. http://winleadsystem.com Send me an email saying you want to be a part of my Founding 40 and save $100 [email protected]

Source - Seniors and the Reverse Mortgage

Financial fraud in the mortgage market 4.