Foreclosure Pals

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Social Media and the government fail to see the true crux in the foreclosure epidemic. The culprit of the Great Real Estate Depression is a drastic reversal that mortgage lending models have experienced.

The explosion of the housing market was fueled by easy money. Lenders were swimming in funds from insurance companies to Wall Street. These funds were available to anyone who asked; especially unqualified mortgage seekers. 100% financing? Not a problem, how about we cover your costs aswell? Can’t verify income, don’t worry we’ll just take your word for it. Fico score below 600? That’s ok, we KNOW your property will come back and you’ll be able to make the payments. O and if you can’t afford that, don’t worry we’ll let you pay less then interest.

Are you freaking Kidding me! I’m afraid I wish I was. This was the state of the market from 2007 – 2008. I should know, lender visited my site daily at Mortgage123.com asking if we would extend these lines of credit. And we did… Everyone did.

On the other hand, in a quick reversal: today’s housing epidemic was caused by the banks going to the extreme in the other direction. Today, you can’t even get financing on a mortgage unless you have perfect credit, sufficient and verifiable income and ascertained assets. Effectively, lenders have basically cut off half of the mortgage market!

Real Estate is merchandise and like any other product; subtract half the market and watch prices fall. It’s a simple computation. If you’re looking to sell your home, just forget about those buying with a lower then 620 credit score. And forget most of the self employed from being qualified; they typically cannot show the income for the mortgage they wish to buy. Buyers then only have Fannie Mae, Freddie Mac and FHA as options; so besides the required down payments all three of the lenders have similar requirements. So if you are denied by these lenders: so sorry; no loan for you!

But just wait. It gets worse. What about all those foreclosed properties that have been taken back by their lenders? These properties are being grossly mismanaged. Many of them don’t have for-sale signs. Very few of them are being maintained. Most potential home buyers have no desire to even look at these properties – they don’t want to rehab properties. And even investors that can afford the 20% – 25% down payments that are required today cannot get traditional financing because of the condition of these properties. So they sit on the market. And eventually, the banks lower their prices further depressing the value of surrounding properties.

And just to make matters even worse, these homes don’t qualify for FHA financing. In today’s market, FHA financing represents the most lenient financing available for home-buyers today. But FHA has fairly strict property standards – these “REO’s” (properties owned by lenders) typically fail to pass an FHA appraisal. With all the new regulations and with all the stimulus money being handed out, Mr. Obama, we need regulations requiring lenders to get their foreclosed properties in order. These properties need to be handled with care and attention. Additionally, lenders need to begin relaxing their absurd underwriting guidelines. I have been in the mortgage business since the early 80’s and never in all that time have underwriting guidelines been as strict as today.

So what can we do? Call your congressman, email your senator, and make your voice heard. Tell them that we need to amend the regulations and force creditors to do the right thing for homeowners. We need politics to put policies in place to force lenders to modify these loans if it can save a property.

As much as I rant about the current status of the housing market, not many people are going to take a stance on their own accord. So I have decided to start a revolution and make headway with a proposal to Washington. If you agree with our cause and message, join us at www.millionhomeownermarch.com I’ll be touching base with you soon.

Article submitted by: 911 Foreclosure – Loan Modification Advice
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After a long track record of providing solid mortgages through its brokerage network, Taylor Bean and Whitaker close its doors after a Federal Raid. The lender Ginnie Mae also terminated their mortgage backed securities wing due to the ordeal.

With no FHA or conventional financing to offer, the company had no alternative but to close up shop. The management sent emails to everyone expressing their disappointment that a less drastic option was unavailable. Realize that we’re not talking about a small shop – TBW had over 2,000 employees.

TBW was raided by the Federal Government on August 3rd, 2009 in Ocala, Florida.

Observe that I put “raided” in quotes? This extends from a media term invoking thoughts of Al Capone being chased by Elliot Ness. But in all actuality, this search was warranted. Taylor, Bean and Whitaker had failed to submit required financial reports which raised the red flag. It was also stated that TBW failed to disclose irregular transactions, further raising the alert of Fraud.

The company was incorporated in 1982 as a small town retail mortgage firm. But in the past decade or so, TBW had grown substantially to become one of the top mortgage wholesalers in the country.

What this closure means is another stake in the heart of the mortgage brokerage industry. Look – I’m not saying that Taylor Bean was completely above reproach – I personally have never had any direct dealings with the firm. But through my many years in this industry, I had never heard a disparaging remark about them. As far as I know, this company was one of the better mortgage lenders out there. And now they are gone. And now there is one less competitor, one less company for a broker to choose from.

Where is the mortgage industry headed? Well, we are pretty much there already. Mortgage borrowers can choose from Government loans or from a small sprinkling of small local lenders that still portfolio their own loans. Just try to find a broker these days – there are less and less every day. I hope you can see that YOUR CHOICES ARE BEING ELIMINATED! Now you may choose a fixed rate – oh, you can choose 30 or 20 or even 15 years or one of a couple of adjustable programs left – 5, 7 or 10 year fixed rate products that convert to floating rates after the fixed rate portion ends. That’s about it! And this is good for consumers?

Article submitted by: 911 Foreclosure – Loan Modification Advice
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With millions of homeowners either in, or desperately trying to avoid foreclosure, it would seem reasonable that lenders would be eager to modify the loans on their books before they end up with another foreclosure.

You would think.

But on July 28, the Secretary of the U.S. Treasury had a meeting with representatives of the top 25 mortgage servicing companies along with representatives of ACORN -the Association of Community Organizations for Reform Now, Neighborworks, the Neighborhood Assistance Corporation of America and the National Fair Housing Alliance to discuss the abysmal rate at which modifications are taking place.

Earlier this year, the Obama administration disclosed their foreclosure prevention plan for troubled homeowners. It was estimated that 4 million homeowners could be assisted through this program.

Since then, about 200,000 have received modifications. Considering over 1 million foreclosures have been filed from January to June and another 1.4 million are expected, 200,000 is just a drop in the bucket.

What they are not explaining in the press is the reason WHY these modifications aren’t going through. Since there isn’t very much information about mortgage modifications details, no one is officially saying a reason. Looking at the thousands of complaints trickling throughout the internet, it is apparent that more homes are being denied rather than modified. Now my next thoughts are based on a educated guess rather than fact.

What is the hard part about getting a modification?

The answer lies in a little computation called Net Present Value.

The Mortgage Bankers association held a regulatory compliance conference last September 15 to discuss Net Present Value. A presentation was made to the members of the MBA at this conference discussing:

Net Present Value analysis and Loan Modifications. The primary focus was onhow mortgage bankers and servicers should use Net Present Value analysis to ascertain what is in the best interest of investors?.

Did you catch that? What is in the best interest of the investors not whats in the best interest of the Home Owners..

Without getting too technical, Net Present Value or NPV compares the value of a dollar today, to the value of that same dollar in the future. NPV is used to determine whether investors in U.S. mortgages would be better off modifying your existing mortgage or foreclosing on your mortgage at some time in the future.

The be honest, while all the forms you need to file with your bank when requesting a loan modification may be perfectly filled out, you may still fail to receive one. While you may look perfect on paper to receive the adjustment, your Net Present Value may be less than the Lender margin.Fair? Probably not. But it is the reality of the game. And unfortunately, there is not all that much you can do about it except for this?

If you are speaking to an attorney or other loan modification expert and they say something like We have handled thousands of loan modifications and we’ll be able to get one for you, run like hell.

The fact is, no company or attorney has gotten thousands of loan modifications for anyone! If you are seeking expert advise or assistance with your modification, simply ask them if Net Present Value calculations will come into play with your modification request. 9 out of 10 experts won’t be able to answer you. And you will immediately know that you are not dealing with an expert.

Article by: 911-Foreclosure
To find more great articles like this Visit: Loan Modification News

Communal lawsuits of 189 Companies announced by the California Real Estate Department earlier this July. This is in conjunction with the Federal Trade Commission and the California Attorney General’s stance on stopping the surplus of Loan Modification rescue scams.

Several states such as Arizona, Florida, Nevada and California were hurt the worst during the subprime loan catastrophe. Now the same companies who granted lucrative mortgages to unqualified homeowners are soliciting these same borrowers to modify the very same mortgage they once sold.

Illegal Loan Modification Companies can be usually be identified by charging substantial upfront fees and providing little or no help after receiving the money. Often these upfront fees are a total waste of money and amount to $1,500 – $4,000. Unfortunately for the troubled homeowner, the chance at rescue only leads to dismay and further hardship.This Fox News report shows the owner of one loan modification company clearly undisturbed by the numerous consumer complaints being lodged against his company -Watch the movie by Clicking the Video on the top right or on Youtube

Many of the lawsuits are filed against loan modification companies that charged unsuspecting homeowners upfront fees before they filed and received approvals from the California Real Estate Dept., which requires all companies involved in loan modifications to submit and receive approval for their “advance fee agreement”. Hundreds of companies have violated this regulation.

California’s Department of Real Estate has released a link listing all these fraudulent companies that have been confirmed. http://www.dre.ca.gov/cons_drs.asp.Also here is a list of companies that have engaged in business while not being licensed. http://secure.dre.ca.gov/publicasp/unlicenseddnr.asp

As you can plainly see by looking at these lists, there are probably thousands of companies and individuals that would like nothing better to wring cash out the very same homeowners that can least afford it. Be very wary of any individual that claims he can arrange a modification for you after you pay a large upfront fee. Better to arm yourself with the information we offer here and handle the modification yourself.

Article brought to you by 911-Foreclosure.com
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While red tape is blocking the loan modification process, home owners find it may be easier to stay in their home. This post is reply to the Herald Tribune’s article by Todd Ruger. In Sarasota County Florida, lawyers are instructing homeowners to stay put. With the flood of paperwork filing into the courts, this may be the best advice ever.

In a perfect world, working your loan modification with your lenders is the ideal solution. However, if this is not the case, at lease homeowners have an opportunity in their favor. If keeping your home is not your end goal, living rent free should be.

There is an exact process that must be followed for a lender to foreclosure on a property. Paperwork must be filled in the proper order and forms need to be neat and tidy. One such example is that Lenders must provide proof of their right to foreclose on a property. This little secret could land you rent free in your home for up to two years This gives the borrower a bit of time and breathing room which can be focused on creating a plan that works with both Lender and Borrower. The worst possible outcome for a homeowner struggling through the foreclosure process is to leave the home. At the worst case, the added time in your home will give you the opportunity to build a nest egg capable of carrying the homeowner throughout the foreclosure process.

In Florida, a total of more than 46,000 were filed into foreclosure since 2006, estimated Todd. This is only the tip of the iceberg with the foreclosure crisis spinning out of control. With courts filled with current cases, it is not uncommon for a case to take years instead of months to be finalized.

Offering homeowners the chance to put away a few months of mortgage payments into their savings will offer many opportunities to move forward through the foreclosure process. You are only helping yourself prepare for the future by delaying the banks.

Todd shows an example of this in a Sarasota couple who filed for a 45 day extension on their loan. 6 months later the courts finally heard the case to the reason on why they needed the extension.

If you are behind in your payments, you may want to look at how to stall your Lender and the Foreclosure Advice. After all, you owe it to yourself to take advantage of any opportunity which may keep your home.

Business is a separate entity as per accounting principles i.e. the business has its own identity which is different form the owner of the business. There business background report is different from the background check of its owner. Business background check includes the rectification of the establishment of the business as per the company’s law, and more importantly the financial accounts of the business. However, it may also include the background check of the individuals running the business to a certain extent.

In the above and other cases, a comprehensive business background checks can be made to find out all the details. There are several private investigation firms which offer such services and they can be contacted. The names and addresses are available on the net or they can be found out through their advertisements. Most businesses benefit from such background checks. By performing these tests you can make better decisions about selecting new business partners, suppliers and customers.

The investigating company searches several databases which are available to them and gives you the relevant information. If you are thinking of a business relationship then a comprehensive business background check will tell you about the company’s background. The background check will collect information about the owners, the clients, the products, legal problems, workers problems and other information as well.

Business background check can be carried out in the following steps. The first step is to verify the principle information about the company, and this can be done easily with the help of public records or local/country records and commercial sites. One can extend this principle research about the company by searching for various published articles about the company. Check weather the company is legal and licensed and has a federal employer identification number, which is given by the federal to all the legally operating businesses. More in-depth check can be done by going for the background check of the owners, checking for any court or criminal records, property records etc. one can also do reference check taking references from the company itself.

The agency will also find out about any bankruptcies or threats looming above them, associated businesses, associated people. Present and previous property ownerships and even internet domain which has been registered is also collected. The free background record will collect information about the hiring and firing practices employed by the owners, the gossip, the rumors and other such information which may or may not be relevant to the person seeking the business background check. The agencies normally have licensed professional people to handle the situation who have the experience and the know how of going about such things.

Other information like the mailing address, property records, civil litigations are also found out wherever possible. The background checking agencies have the experience, the expertise and the knowledge of finding out all such information when asked to conduct the checks. The business profile report they submit will consist of all these details. However it may take a few days to get all the details of the business background check to be filed and presented to the customer.

When Sally was looking to relocate for her job she contacted a licensed Fort Lauderdale real estate agent agent. She felt sure this would be a wise decision. She hadn’t decided whether she would be looking at traditional properties in the area or if she would take a look at the many Fort Lauderdale foreclosures that were available. No matter her selection, she knew she needed someone to understood the necessity of asking for help as she attempted a relocation. Having been born and raised in Maine, and having attended school out in California, she knew very little about the Florida area. She was feeling the stress of moving to a new city, and felt slightly intimidated by her unfamiliar surroundings. She wanted to seek help from every possible outlet to get acclimated. She found a number of useful resources where she could turn to get better acquainted with her new town.

As Sally did, many people who must make a move maximize the services of a home buyer’s representative for home purchase advice. Sure, a buyer’s representative can offer a wealth of knowledge regarding the housing market, but they can also give much information about the communities where properties are for sale. A valuable representative will readily realize that their clients are interested in purchasing much more than a house. Typically, they are buying a community, and yes, even a lifestyle. Buyer’s representatives are well-versed in a number of useful statistics that might be of interest to their clients. It is common place for a representative to have at hand community crime statistics, school system rankings, and local points of interest, be they historical, cultural, educational, or recreational.

Another point of reference for those making a long distance move is to consult with the local chamber of commerce. The chamber of commerce provides extensive information. Whether one is accessing the chamber’s website or utilizing, in person, the knowledge of the chamber’s helpful people, one can quickly gain valuable facts. From weather information to a calendar of events, to local church listings, it’s all available. Also sure to be compiled is a listing of local businesses. One should also have access to area specific maps as well. Most importantly, their services are a courtesy to the public.

Perhaps one of the most natural ways to become familiar with a new community is to simply visit some local establishments. It could be well worth one’s time to spend a couple hours sitting in the coffee house nearest one’s home. Take a look at the bulletin board postings, talk with the baristas, and visit with fellow patrons. If not the coffee house, how about the library, the doughnut shop, the dog park, or even a community church or synagogue? Good old fashioned word-of-mouth is sometimes the best way to get connected with all scheduled events around town. Those who have lived in an area for a number of years are often willing and excited to educate newcomers. Most of the time people who’ve lived in a city many years will be familiar with more than just popular tourist attractions. Plus, they are a wealth of information.

In the city of Ft. Lauderdale foreclosure rates have skyrocketed during the last year. In fact, Ft. Lauderdale foreclosures have increased in staggering amounts. This trend can be seen throughout Florida, and on an even bigger scale, throughout the United States. Americans are loosing their homes. Banks are reclaiming houses as people can not pay their mortgages. Families are being displaced and the once booming housing market is now stagnant. The American dream of homeownership is much more complicated than wanting to purchase a home. For those who are in a position to purchase a residential home or a vacation home in Florida there are a few traps to avoid.

It may be tempting for home buyers to seize the first good deal they come upon. Bear in mind, that even in this economy,with the current state of the market, if it seems too good to be true, it often is. Certainly there are bargains available. Short sales are plentiful and many sellers are willing to take no more than what they owe in order to escape their mortgage payments. In those situations, often the seller, because of mounting debt may have been unable to maintain proper care of their home. If every dollar is going to debt, that leaves little extra for home maintenance. A buyer should be sure to request a thorough professional inspection of the property. This will help uncover any area which has been neglected. If an inspection is not possible, proceed with caution. Plan for additional expenses, above and beyond the negotiated contract price. Additionally, it is important to make sure that you are buying a property free and clear. Investigate as to whether liens exist against the property. This could be a deal breaker in the end.

Those searching for a homemay also be tempted to fall for the “bigger is better” myth. The idea of adding square footage to your place of residence is not a bad idea on the surface. Maybe you are quickly outgrowing your current dwelling. Maybe your family is expanding and could use an extra bedroom or playroom. Now may be an excellent time to buy up. Houses typically are selling for less dollars per square foot than in recent years. Remember though, that your current home is likely to sell for less too. Will the current equity in your existing home satisfy your financial goals? Additionally, is a move to a larger space worth the hassle of selling your current home. For many people the answer is yes, but for others, the inconvenience may be too great. Also keep in mind, a move to a larger home will most likely require a larger monthly utilities bill. Home improvements may also be more costly. Is your pocketbook ready to handle those commitments?

House hunters should be careful not to get caught up in the frenzy of buying. As a house hunter it is very important to get good assistance with your purchase. A licensed real estate agent can help a buyer make sure that they are indeed doing everything they can to make a wise purchase. Purchasing a home without professional assistance, especially when purchasing a home through short sale or mortgage default, can be a tricky proposition. Agents are well equipped to prepare contracts, as well as, review contracts with their clients. Agents can also provide detailed home buying information.

Article written by 911-Foreclosure.com
“What if Your Lender CAN’T Produce the Note?” is an article written by Terry Smiljanich and published on the Consumer Warning Network in March 2009. The article gives homeowners a great opportunity to buy more time when faced with foreclosure by their financial association.
The article gives the homeowner a great opportunity to buy more time when faced with foreclosure by their financial association. and many homeowners facing foreclosure are using the principles contained in it as part of their defence in Court. This is not a legal loop-hole or technicality, but a serious and important issue that needs to be properly understood by all homeowners and lenders as well as the Courts.

It is the responsibility of the lender to prove that they have a legal and legitimate right to foreclose on a property. The lender, or person to whom the money is owed, proves this by producing the original note containing the signature of the person who they claim owes them money. The note cannot be a copy of any kind, not even an electronic entry.

A homeowner confronted by foreclosure, “can demand to that the lender present the original promissory note before authority to proceed to the next step of foreclosure”, states Smiljanich But what happens if the lender claims that they have “lost” the original copy of the note?

In the “Uniform Commercial Code” ” Section 3-309, many states created a “specific provision” to handle the subject. The section emphasizes that certain circumstances must be adhered to for a promissory note to be administered without the original note .. It is up to the lender to legally prove all 4 conditions.

The Court will determine whether or not the lender has proven their right to foreclose. The Court needs to be extensive in determining that the lender was in possession of the note when it was lost or destroyed. The Courts need to understand that this matter is not a mere technicality and enforce the “full proof”, because it is the homeowner or borrower who stands to lose if the incorrect person is allowed to foreclose on the property.

As Smiljanich explains, “even if a Court has found that the original note is lost and the foreclosure sale is finalized, the homeowner may still be accountable if the original note is found.This article comes at an impecable time and homeowners faced with foreclosure need to be aware of the requirements of the law so that they can properly protect themselves and their property.

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