We have been saying this for quite some time now, almost a year. But its still good when we read articles that agree with us =). The Seattle times by way of the New York Times has an article called “Swindlers swarm to foreclosures” which talks about Loan Modification scams.
Borrowers seeking loan modification are often frustrated that they cannot reach the right people at their lender or that the lender insists on a repayment plan they cannot keep, said Ira Rheingold, executive director of the National Association of Consumer Advocates.
“When you’re desperate, that’s when the crooks come out,” Rheingold said.
“You’ve tried everything, and a guy calls you up on the phone or there’s an ad on TV, and you have no other options, what do you do? You go to those guys,” he said, adding:
“People probably know in their heart of hearts that they may be getting ripped off, just like most people understood on their mortgages that they were getting in too deep, but bankers said yes, so it must be OK. It’s the same thing. The real problem is that we continue to fail to have systems in place that help people,” Rheingold said.
Rosenau, the California prosecutor, said that even when she told people that they had been swindled, “they don’t believe it, because they want it not to be true.
To read the entire article click here
Loan Modification, Scams
loan modificatio, Scam, Scams
A loan modification can really benefit you if you are facing financial hardship and having a hard time making your monthly mortgage payments. Loan modification companies can assist you in getting a loan modification with your lender. A loan modification involves changes to the terms of your loan such as lowering the interest rate, extending the length of the loan, or some form of principal forgiveness or forbearance to help make your monthly payments more affordable and avoid foreclosure.
Lenders will require a hardship letter to document your financial difficulties as well as financial documents showing proof of your income, a detailing of your monthly expenses, and a plan for how you can meet all your monthly obligations if a loan modification is granted. Loan modification companies can help you prepare the necessary documentation and also negotiate on your behalf with your lender.
The services provided by loan modification companies can be a very big help in successfully obtaining a loan modification. However, these services can be quite costly and may require a substantial upfront fee without any guarantee of a successful outcome. You will need to weigh the cost of hiring professionals to help you versus negotiating the loan modification process yourself. It is possible to contact your lender directly and negotiate a loan modification, but it will require that you become familiar with all facets of the loan modification process and have the ability to writing a persuasive hardship letter and produce the necessary documentation to show proof of income, a detailed accounting of monthly expenses, and a plan to show how you will meet all your monthly obligations if a loan modification is granted.
Here are a few tips to help evaluate loan modification companies if you are considering hiring one.
Tip #1 Make sure that the loan modification companies you are considering are properly licensed and meet all government regulations. Your local department of real estate should be able to provide you with what requirements are needed for loan modification companies to be in compliance. You should also verify their local business licenses and physical addresses.
Tip #2 Contact the Better Business Bureau to see if there are any complaints filed against the loan modification companies you are considering.
Tip #3 Find out how long the loan modification companies have been in business and determine how much and what type of experience the firms have in handling loan modifications.
If you are considering loan modification companies to help you with your loan modification, do your homework. Make sure the firms have the necessary licenses and experience. Weigh the pros and cons of hiring a firm versus negotiating a loan modification yourself before making your final decision.
Loan Modification
Countrywide has settled a lawsuit accusing it of predatory lending with the state of Tennessee. As part of the settlement countrywide has agreed to modify as many as 6,900 mortgages. The lawsuit accused Bank of America owned Countrywide of allegedly deceived borrowers by misrepresenting loan terms, loan payments increases and the borrower’s ability to afford loans.
Also as part of the settlement, countrywide has agreed to suspend foreclosures, if the home owner is eligible for a loan modification.
Countywide borrowers can also call Countrywide toll-free at (800) 669-6607 to find out now if they are potentially eligible.
Loan Modification, Mortgage
The California DRE warns consumers to be careful of company’s asking for upfront fees, which are only allowed for certain licensed companies. It lists 145 companies that have “submitted advance fee agreements for loan modification and/or similar services to the Department of Real Estate for review, and have received “no objection” letters regarding their use.” That number has jumped from less than 25 just sixty days ago, an indication of just how many folks are looking to profit from the modification game. There is “no objection” if the companies are run by a licensed real estate broker or a licensed attorney.
“I wouldn’t say they are all legitimate,” says Tom Pool of the DRE. The California DRE alone is currently investigating 250 open cases, looking into loan mod scams. It’s already shut down several.
Still, as I said, many of these companies are legitimate, but you might ask, if banks are supposedly getting so aggressive in trying to help troubled borrowers, and Fannie [FNM 0.74 0.11 (+17.46%) ] and Freddie [FRE 0.72 0.07 (+10.77%) ] are ramping up their efforts as well, not to mention all the non-profits out there trying to help, why do you need to pay these companies for a service that should be provided by your lender for free?
Click here to read the full article
Mortgage
We dont usually cover overseas, but how could i pass this up?
“Mortgage overpayments can also be a real boon for anyone planning for retirement who doesn’t have the safety net of a large pension pot in place. By reducing the term of the deal with overpayments now they will significantly ease their outgoings later in life.”
Click here to read the article
Mortgage
Millions of homeowners across America find themselves without many options to stay in their home and avoid foreclosure. Adjustable rate mortgages and declining home values find many homeowners backed against a corner with no where to turn. However, for many of these distressed borrowers, a loan modification could be the solution they need. But if you need help with a loan modification of your own with your bank, how to you get started to apply for help?
Here are the Top 10 Loan Modification Facts that Every Homeowner who needs help should know:
Fact #1: Billions of dollars in Federal aid is being earmarked to fund these aggressive loan modification programs to help homeowners just like you. You need to learn how to apply for these programs and take advantage of your tax dollars-don’t hesitate or be intimidated-you deserve this help and now is the time take advantage of these loan modification programs.
Fact #2: You are not alone there are approximately 16 millions homeowners that are in the same shape situation. The Federal Government is now sponsoring meaningful loan modification programs to help millions of homeowners who will face foreclosure in the coming years.
Read more…
Loan Modification
Third, you must be able to demonstrate that you have suffered a financial hardship that has made your current mortgage payment unaffordable. Provide your bank with a written Hardship Letter, explaining the circumstances that have lead you into financial hardship. Job loss, divorce, death of a family member, and illness are all reasonable explanations. You must be very convincing in your Hardship Letter; lenders receive hundreds daily, and are looking for candidates who have really experienced hardship. The manual provides some examples of Hardship Letters, and a template to follow.
Click here to read the full article
Loan Modification
Washington D.C.-based nonprofit called Rainy Day Foundation offers something special to new home owners, a promise to pay your mortgage if you happen to lose your job within 2 years of a home purchase.
The policy offers the unemployed worker as much as $1800 for up to six months, for a total of $10,800. This is to be applied to the home owners Mortgage, Taxes, and Insurance.
The Rainy Day coverage lasts only two years and doesn’t take effect until 60 days after the loan closes. Rainy Day Foundation said its program, which is available to other lenders, gained attention as the unemployment rate soared in the last half of 2008.
Rainy Day charges lenders $500 to $600 per loan for the coverage and requires the lenders it works with to offer the guarantee to all buyers, who choose whether to accept it or not. Homebuyers in the program agree to participate in a counseling program as part of the coverage. After the coverage period ends, buyers can extend it, but then must pay the fee themselves.
Click here to read the original article
Mortgage
