Lenders are losing out on thousands of dollars, sometimes within just mere hours, due to short sale fraud, which is skyrocketing and plaguing the housing market.
In one of the most common short sale scams, an investor submits a low offer on a home that is underwater, in which the borrower owes more on the mortgage than the home is currently worth. Scam artists, working with the investor, present the lowball offer to the lender, asking for a short sale to be completed. Appraisals or broker price opinions may be manipulated to help persuade lenders to do the short sale (one common method: Misstating the home’s location so that the home is compared to lower cost homes).
Friday, July 15, 2011
Friday, July 8, 2011
President Obama Announces More Financial Aid for the Unemployed
Home owners who have lost their jobs will get more mortgage relief. The Obama administration has announced that two programs for unemployed home owners will extend the forbearance period on mortgages to 12 months.
For unemployed home owners with a Federal Housing Administration loan, the forbearance period will be extended from four months to 12 months. The Obama administration also said it will remove hurdles to make it easier for unemployed borrowers to qualify for FHA’s Special Forbearance Program.
“The current unemployment forbearance programs have mandatory periods that are inadequate for the majority of unemployed borrowers,” U.S. Housing and Urban Development Secretary Shaun Donovan said in a statement. “Today, 60 percent of the unemployed have been out of work for more than three months and 45 percent have been out of work for more than six. Providing the option for a year of forbearance will give struggling home owners a substantially greater chance of finding employment before they lose their home.”
The administration also announced that it will extend the minimum forbearance period in the Making Home Affordable Program from three months to 12 months for eligible unemployed home owners, when possible under regulator and investor guidelines. Forbearance will also be available to borrowers who are seriously delinquent.
All FHA-approved mortgage servicers are required to participate in FHA’s Loss Mitigation Program, which includes the Special Forbearance program.
For unemployed home owners with a Federal Housing Administration loan, the forbearance period will be extended from four months to 12 months. The Obama administration also said it will remove hurdles to make it easier for unemployed borrowers to qualify for FHA’s Special Forbearance Program.
“The current unemployment forbearance programs have mandatory periods that are inadequate for the majority of unemployed borrowers,” U.S. Housing and Urban Development Secretary Shaun Donovan said in a statement. “Today, 60 percent of the unemployed have been out of work for more than three months and 45 percent have been out of work for more than six. Providing the option for a year of forbearance will give struggling home owners a substantially greater chance of finding employment before they lose their home.”
The administration also announced that it will extend the minimum forbearance period in the Making Home Affordable Program from three months to 12 months for eligible unemployed home owners, when possible under regulator and investor guidelines. Forbearance will also be available to borrowers who are seriously delinquent.
All FHA-approved mortgage servicers are required to participate in FHA’s Loss Mitigation Program, which includes the Special Forbearance program.
Wednesday, July 6, 2011
Beware Loan Modification Scams
More home owners in Los Angeles who are desperate to avoid foreclosure are finding themselves victims to loan-modification scams that are all over.
In the latest to headlines, attorneys in California, where these scams are particularly rampant, filed the state’s first class-action lawsuit against an alleged loan modification scam, part of http://www.rewiremyloan.com/. In the lawsuit, prosecutors charge that the company collected nearly $5,000 each from at least 90 victims, promising to do loan modifications and offering a 100 percent money-back guarantee. The victims say the company never did the loan modification or refunded their payments.
The majority of the victims in the lawsuit are Spanish-speaking, and while the advertising and discussions they had with the company were in Spanish, they say the contracts they signed were in English. The home owners say they were also told to not contact their bank directly or their contracts would be voided. (Read: How to Spot Foreclosure-Prevention Scams)
Scam Prevention Network
The Lawyers' Committee for Civil Rights, government housing agencies, and other nonprofits have created the Loan Modification Scam Prevention Network to compile complaints about such fraud. From February 2010 to June 1, the network gathered nearly 15,000 complaints involving $37 million in lost money. California accounted for the majority of the losses, with 3,105 complaints filed and $11 million in losses from these scams.
For home owners who believe they were a victim of a loan-modification scam, the Loan Modification Scam Prevention Network encourages them to visit www.preventloanscams.org to file a complaint. I have always understood that people need to be surrounded by a team of financial expert, that can guide them so they can potentially reduce dramatically the risk of financial setback, but if for any reason financial setback occur due to unforseen circumstances, they can at least get reliable advice for experts.
Andre Plessis, REALTOR & Financial Educator.
Call - 1-877 APPLYFREE NOW!!!
In the latest to headlines, attorneys in California, where these scams are particularly rampant, filed the state’s first class-action lawsuit against an alleged loan modification scam, part of http://www.rewiremyloan.com/. In the lawsuit, prosecutors charge that the company collected nearly $5,000 each from at least 90 victims, promising to do loan modifications and offering a 100 percent money-back guarantee. The victims say the company never did the loan modification or refunded their payments.
The majority of the victims in the lawsuit are Spanish-speaking, and while the advertising and discussions they had with the company were in Spanish, they say the contracts they signed were in English. The home owners say they were also told to not contact their bank directly or their contracts would be voided. (Read: How to Spot Foreclosure-Prevention Scams)
Scam Prevention Network
The Lawyers' Committee for Civil Rights, government housing agencies, and other nonprofits have created the Loan Modification Scam Prevention Network to compile complaints about such fraud. From February 2010 to June 1, the network gathered nearly 15,000 complaints involving $37 million in lost money. California accounted for the majority of the losses, with 3,105 complaints filed and $11 million in losses from these scams.
For home owners who believe they were a victim of a loan-modification scam, the Loan Modification Scam Prevention Network encourages them to visit www.preventloanscams.org to file a complaint. I have always understood that people need to be surrounded by a team of financial expert, that can guide them so they can potentially reduce dramatically the risk of financial setback, but if for any reason financial setback occur due to unforseen circumstances, they can at least get reliable advice for experts.
Andre Plessis, REALTOR & Financial Educator.
Call - 1-877 APPLYFREE NOW!!!
Friday, June 10, 2011
How Much Will It Cost To Raise A Child In 2011?
The cost of raising a child continues to climb and parents starting a family this year should be prepared to shell out hundreds of thousands of dollars before their kid even turns 18.
According to the U.S. Department of Agriculture, children who were born in 2010 will cost a middle-income family nearly $227,000. The kicker , that number does not include college tuition.
According to the study, the highest price hikes were in child care, education, health care and transportation.
In 1960, when the first report was issued, it cost slightly more than $25,000 to raise a child to the age of 18.
According to the U.S. Department of Agriculture, children who were born in 2010 will cost a middle-income family nearly $227,000. The kicker , that number does not include college tuition.
According to the study, the highest price hikes were in child care, education, health care and transportation.
In 1960, when the first report was issued, it cost slightly more than $25,000 to raise a child to the age of 18.
Falling Home Prices Dwindling Home Equity
On average, home owners now hold about 38 percent equity in their homes, down from 61% a decade ago, the Federal Reserve says in citing data from the first quarter of this year.
Despite outstanding balances on loans getting smaller, home owners are losing equity due to drastically falling home prices, which have inched down in many markets since prices peaked in 2006, the Fed reports.
Home equity is an important indicator to the overall health of the economy because the more home equity people have, the more wealthy they tend to feel. Plus, home equity also tends to serve as collateral for other loans.
Despite outstanding balances on loans getting smaller, home owners are losing equity due to drastically falling home prices, which have inched down in many markets since prices peaked in 2006, the Fed reports.
Home equity is an important indicator to the overall health of the economy because the more home equity people have, the more wealthy they tend to feel. Plus, home equity also tends to serve as collateral for other loans.
Monday, June 6, 2011
How To Find Crimes in an Area?
If you want to move to an area, it may be a good idea to see how crime rate is inthat particular area. There are 4 websites you can visit and will give you the latest update on how to spot crimes in an area you live in or you want to move in.
Visit:
http://www.crimereports.com/
http://www.everyblock.com/
http://www.spotcrime.com/
http://www.trulia.com/voices/q_Crime+Rate+By+Zip+Code/
http://www.trulia.com/crime/#
Visit:
http://www.crimereports.com/
http://www.everyblock.com/
http://www.spotcrime.com/
http://www.trulia.com/voices/q_Crime+Rate+By+Zip+Code/
http://www.trulia.com/crime/#
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