Dean Graziosi Loan Mod Scam
January 13th, 2010 by adminReverse Mortgage Scams Hello, and welcome. This is Charlie Fuller, real estate coach and investor with the Dean Graziosi’s Real Estate Success Academy. In this podcast, I’m going to be talking about reverse mortgage scams. Florida Attorney General Bill McCollum is warning senior citizens about scams involving reverse mortgages, a type of home equity loan frequently abused by con artists and scammers. These loans are often popular options for senior citizens, because they offer a cash source, which can help meet unexpected medical expenses or supplement Social Security, or more. aEoeWhen the senior citizens are concerned about finances and are seeking a legitimate option for say financial relief, they should not have to worry about predatory lenders and brokers trying to capitalize on their precarious position,aE? Attorney General McCollum said. Consumers should take every precaution to avoid scams and situations which would leave them in even worse financial position. Reverse mortgages are a special type of home loan that allows homeowners who are 62 and older to borrow against their home equity without having to repay the money until the home is sold or the borrower passes away or moves out permanently. When the home is sold, lenders recover their principal, plus interest. The remaining value of the home goes to the homeowner or his or her survivors. Unfortunately, as the popularity of reverse mortgages grow, so does the potential for fraud. Predatory lenders, unscrupulous loan agents and dishonest brokers may target senior citizens who may be anxious about their financial security. Deceptive practices and allegations of high-pressure sales tactics are being more frequently encountered as senior citizens are being taken advantage of under the guise of a helpful and legitimate reverse mortgage.
Borrowers also run the risk of being steered into inappropriate loans and annuities by sales agents and insurance brokers who could be working together without disclosing the relationship to the borrower. McCollum noted that the reverse mortgage can serve a purpose when financed through legitimate lenders. According to the US Department of Housing and Urban Development, which we know as HUD, homeowners who take out a reverse mortgage can receive payments in a lump sum or a monthly payment, or on an occasional basis as kind of like a line of credit. Homeowners whose circumstances change can restructure their payment options. Now, HUD-approved housing counseling agencies are available for free or at a minimal cost, to provide information, counseling and free referral to a list of HUD-approved lenders. HUD does not recommend using an estate planning service or any service that charges a fee for just referring a borrower to a lender. Now, this information can be obtained by calling HUD at 1-800-569-4287. That’s 1-800-569-4287. More information is also available on the HUD reverse mortgage website,. I’ll give that to you again.
Now, by all accounts, reverse home mortgages are basically set to explode. Baby-boomers are reaching retirement age and, for most, home equities makes up a large part of their nest eggs. Reverse mortgages will be the tool that many of these retirees will use to tap into the nest egg for retirement living expenses. But along with the reverse home mortgage growth comes an increased opportunity for fraud and scams. Reverse mortgages are different from traditional mortgages in ways that make them attractive vehicles for scam artists. For instance, reverse mortgages are products specifically designed and targeted to senior citizens, the population group most vulnerable to fraud. Also, scam artists know that reverse mortgages provide the senior homeowner with relatively easy access to a sizable pool of cash. And, reverse mortgages are harder to understand than traditional mortgages, making it easier for the scam artist to confuse and take advantage of the victims. Now, we’re going to look at some of the tactics scam artists use and the precautions reverse mortgages borrowers can take to protect themselves.
Downplay Pre-Loan Counseling Now, an educated borrower is the scam artist’s worst enemy. But it’s up to the borrower to educate themselves and take advantage of counseling and other opportunities to learn about the reverse mortgages. All 3 major reverse mortgage programs, that’s HUD, HECM, and Fannie Mae’s Home-Keeper and Financial Freedom Program, require potential borrowers to have counseling with an independent counselor specifically trained in reverse mortgages before taking out a loan. Now, in a recent Detroit area fraud case, a corrupt lender was able to keep the borrower in the dark about the amount she was eligible to borrow. She thought her loan would be for $61,000, when, in fact, she was borrowing $103,000. Guess who pocketed the $42,000? A thorough counseling session would have given the homeowner an accurate idea of the true amount that she was eligible for. Ultimately and unfortunately, the prosecutor in the case said, aEoeThis never had to happen.aE? Now, a counseling meeting explaining the reverse mortgage process is required by Financial Freedom before the loan can actually be processed.
Mr. James allegedly informed Mrs. Schultz that he would be able to waive the counseling meeting by just asking a few questions over the phone. So, here’s a precaution. Although counseling by telephone is allowed, it’s always best to meet face-to-face with the counselor. If you find that anyone that you’re working with in the process suggests that counseling can be done quickly, over the phone, or otherwise downplay the importance of pre-loan counseling, be highly suspicious. Forgery Forgery is a key part of many scams. In the Detroit case cited above, the lender requests that the title company prepare 2 checks payable to the homeowner; one for $61,000, which the homeowner received, and a second one for $42,000, which the corrupt lender endorsed with a forged signature and deposited into his own account. In one California case, 2 con artists, one working with a financial advisor, the other a handyman, convinced an elderly homeowner to take out a reverse mortgage to pay for home repairs.
Now, the financial advisor opened an account for the proceeds of the loan and forged the victim’s name to gain access to the funds. Another California case reported in the Santa Cruz Sentinel newspaper shows how dangerous it can be to sign unfinished documents. Mrs. Sally Scott is 66 years old. Now, while she receives Social Security and a pension check, she still can’t make ends meet. She saw an ad for a reverse mortgage, a loan that allows seniors age 62 and older to receive cash by borrowing against their homes and doesn’t have to repay as long as they live there. Seeking a little financial cushion, she spoke to a mortgage broker about a $10,000 reverse mortgage. When she received the loan papers, she noticed that the loan amount was $200,000. The broker promised that he’d change the figure, but insisted that she sign the papers right there. Trusting the broker, Mrs. Scott signed. A week later, she received a check for $200,000. She immediately notified the broker, who apologized for the mistake and instructed her to wire the money back.
Now, as it turned out, the account that Mrs. Scott returned the money to belonged to the broker. He disappeared, leaving her with a mortgage in default and no way to repay the loan. So, here’s a precaution: never sign any documents with blanks to be filled in, or corrections to be made later. Carefully protect access to your checking and other accounts. Review and reconcile checking accounts and loan documents regularly. And if you find something awry, contact your financial institution immediately. Now, in the Detroit case cited above, the victim caught onto the scam when she received a loan settlement indicating the balance of her reverse mortgage, including interest, totaled $131,000. Also, take advantage of the free credit reports available to you under the federal law. Reviewing your credit report each year is also a good way to catch unauthorized financial activities under your name. Charging For Free Reverse Mortgage Information Now, the complexity of reverse mortgages means that it’s natural for borrowers to seek assistance and guidance to help them understand the loan process, finding a lender, or just generally better understanding what they’re getting themselves into.
Some scammers have seized on this offer for a fee, to give reverse mortgage information and services that are available to consumers at no charge. For example, some senior homeowners have been contacted by firms offering to assist them in finding a reverse mortgage lender in exchange for a percentage of the loan. Now, this type of arrangement should always be avoided. According to the HUD’s website, HUD does not recommend using an estate planning service or any service that charges a fee just for referring a borrower to a lender. HUD provides this information without cost. And HUD-approved housing counseling agencies are available for free or at a very minimal cost, to provide information, counseling and free referral to a list of HUD-approved lenders. To get this information, call 1-800-569-4287. Now, that’s toll-free. And for the name and location of a HUD-approved housing counseling office near you, call that number and you’ll be set up. Here’s a precaution: walk away from anyone who offers to find a reverse mortgage lender for a fee. Use the Internet to find free information about reverse mortgages or read one of the several excellent books that have been published in recent years.
If you feel you have a need for a professional financial planner to assess your overall situation, including a reverse mortgage decision, find a certified financial planner aE” they go by a designation of a CFP aE” who works on a fee-only basis, not a percentage of the loan, and who is knowledgeable of reverse mortgages. The reason we say that is because many are not. Posing As A Government Or Nonprofit Organization The most popular form of reverse mortgage, the Home Equity Conversion Mortgage, which is the HECM, is an official program of the US Department of Housing and Urban Development. However, neither the HECM program nor other reverse mortgage programs are marketed directly to senior homeowners by government employees. Unscrupulous reverse mortgage salesmen have been known to represent themselves to elderly homeowners as government representatives or volunteers for nonprofit organizations. Your precaution: be sure you know who you’re dealing with and what organization they represent. Do not be timid about asking for information such as their home office location and their phone number. Use resources like HUD and the National Reverse Mortgage Lenders Association to check out the company.
Bundling Things With Reverse Mortgage Financing Smart consumers know that the best way to shop for a car is to separate the parts of the transaction aE” the purchase, financing, and the trade-in aE” all from each other. Now, with a bundled transaction, it’s easy for the consumer to be befuddled and not understand the true cost of the overall deal. What appears to be a great price on the car may actually mask exorbitant finance charges or maybe a low trade-in value. Similarly, a common tactic of scam artists to bundle reverse mortgage financing with something else, such as maybe home improvements, an annuity, risky investments, living trusts or other estate planning products, is very common. In one Seattle-area case, elderly consumers were told that living trusts must be purchased in order to obtain a reverse mortgage. In another case, seniors were encouraged to take out a reverse mortgage and use the proceeds to invest in truck-mounted billboards. Frequently, 2 or more scammers work as a team. For example, in the California case cited earlier, an unscrupulous financial advisor steered the homeowner to a home repair contractor, who was a party to the scam and who grossly overcharged the victim for their repairs. So, if you find yourself dealing with someone who attempts to bundle a reverse mortgage with other products or services, just steer clear of those people because they’re highly suspicious.
If you feel at all uncomfortable or that the person is using high-pressure sales tactics, walk away. Now, here’s an interesting situation. What are the drawbacks? These are things that oftentimes don’t come to light. Number one, interest rate is typically 1A?% to 2% higher than traditional mortgage rates. So, anyone thinking about using a reverse mortgage should consider comparing the costs and benefits of actually refinancing with a traditional mortgage. Just compare the costs. Number 2, the other costs are fairly high. There is an origination fee, which will be the greater of $2,000 or 2% of the maximum qualified amount. There is typically a mortgage insurance premium equal to 2% of the lesser of the value of the house or the maximum qualifying amount in the first year and A?% of the loan annually thereafter. There are also appraisal fees and a litany of closing costs. And, number 3, the likelihood of keeping a house in the family after the death of the homeowner is highly unlikely. However, for anyone considering a reverse mortgage, the likelihood is low under any other option as well. So, is the reverse mortgage a good situation? Well, yes. There definitely are many Americans for whom it’s going to be a good option. The basic profile would be someone who owns their home, needs either a higher monthly income or mortgage debt relief, and is at or near retirement age, and does not have significant other assets, and highly values living in their current home. So, reverse mortgage is definitely a good situation in some circumstances, and something that you need to be careful with if you’re thinking about it. Until next time, this is Charlie Fuller.
Home Loan Modification Myths Circulating During This Time of Economical Difficulty
January 10th, 2010 by adminEveryone is talking about home loan modification. Even though this has always been a option for homeowners struggling to pay their mortgages, the process of renegotiating the terms of your loan and having it adjusted by the bank or lending institution, is much more commonplace today. Even so, there are still many myths and misconceptions about home loan modification.
Since the President’s new Making Home Affordable (MHA) plan has been introduced, there is now an understandable series of steps lenders must follow before granting home modification loans. There is $75 billion set aside for the Homeowner Stability Initiative that is to be used for loan modifications between March 4, 2009 and December 31, 2012
Lenders participating in this program are paid money to adjust your loan and this incentive makes a modified loan a much better deal than foreclosure or something else. Through this method, the MHA hopes to help 4-5 million homeowners get back on their feet financially and keep their homes.
There is still a lot of false information about the MHA plan. Some people think that participation is mandatory and lenders are being forced into the plan. This is not true, there is a clean set of procedures for modifying loans and the plan does give lenders incentives to work out modifications, but no lender must participate.
The bank has to decide if a modified loan will be more profitable than foreclosing and they will choose the option that gives them the most profit. Foreclosure is a very expensive, lengthy, unprofitable process for lenders. With the recent incentive payments offered by the MHA plan, lenders usually decide that they would rather modify a loan than proceed with foreclosure.
Another common misunderstanding is that the Homeowner Stability Initiative plan will help speculators and house flippers. This is also false. To qualify for a loan modification in the MHA plan, the homeowner must be living in the home to which the mortgage applies. This will be checked. Vacant, condemned, investment properties and second homes are not eligible.
There are a lot of home loan modification myths circulating during this time of economical difficulty. The MHA plan is new and people have yet to learn about it. Learn the facts and understand this loan modification plan.
Learn all you can about home loan modifications and don’t let false information keep you from applying for this new program. You can avoid foreclosure and lower your mortgage payments
Bleeding Financially Due to Loan Repayment, Negotiating Debt is The Cure
January 7th, 2010 by adminTruthfully, most creditors will not want you to go bankrupt once convinced of your financial hardship. Also in such a financial crunch, it is the best option to be able to recover as much as possible. Thus, negotiating debt allows you to seek repayment options that are more favorable, in such trying times. You have settled for a lesser pay a few months back, and now the financial situation has been getting more than sticky at home. The bills do not seem to cease. The out standing loan on your credit card seems to be growing exponentially. Each month the loan payouts towards your other commitments are also pressing you hard. With the mounting pressure of maintaining a decent life style, your mental balance is taking a toll. You are praying for a heavenly intervention. Stop! Heavens will not help you here. Negotiating debt definitely will.
If you have read recent articles in the financial newspapers, or watched the financial programs on television, you will have noticed that credit card delinquency is increasing. On the other hand, interest rates for credit card loans are increasing by the year. Added to that, employment opportunities have reduced following the financial melt down. In this cauldron of financial trouble, negotiating debt may be only answer for people fighting to keep themselves afloat in the increasing tide of loan payments.
If you are talking to a mediator company to negotiate debt on your behalf, they may actually negotiate with your primary creditor and make a one-time payment, which will be substantially lesser than your outstanding amount. While the company negotiating debt for you may ask you to pay them a new repayment amount each month to recover the money. This arrangement would change as follows:
Original arrangement of loan repayment
- Debtor pays the Credit Company directly
- Due to changed financial situation, the debtor is no longer able to pay the repayment amount.
- If the debtor sticks to the original plan of repayment, he would default.
- If the debtor defaults the credit company looses out in terms of revenue and its liquidity is impacted
- Since the debtor is not aware that he can negotiate debt hence he keeps defaulting
- If such a situation persists for long debtor would have to file for bankruptcy.
- If the debtor files for bankruptcy creditor would loose the entire amount.
- Hence, negotiating debt would be the right option for both
New arrangement with Negotiator
- A mediatory, with expertise in negotiating debt, sits with debtor to understand debt problem
- Negotiator is already aware of the credit card companies, knows the people, and the options available
- Negotiator understands how bad is the debt situation and what kind of a solution will work best
- Negotiator counsels the individual on his financial situation and seeks his opinion
- The mediating company or individual then analyze the options that he has in the current market
- The top 2 or 3 options are worked out and discussed with the individual
- All queries pertaining to the process of negotiating debt is explained to the individual seeking assistance.
Sometimes the mediator company repays the credit company, the loan amount at original rates while it takes the money from the debtor at a revised rate, which may be more suitable. There are other options, which are listed below that are utilized to bail out the defaulting individual. The result is the creditor gets his money back and debtor is able to manage his debts better. The creditor’s earnings may be reduced but he is getting back principle with some interest as well. Thus, the efforts to negotiate debt resolves the deadlock for both parties, hence both benefit.
Negotiating debt may involve the following aspects.
- Debt consolidation
- Knocking off debt on one card and then next while paying minimum dues on others
- Shifting loans from multiple cards to one card and negotiating with one company
- Negotiate debt on the entire amount help do the following.
- Suitable payment options for a longer term or breaks in payment
- Pay a higher amount each month than agreed upon and reduce the total outstanding
- Full and final settlement at a lower amount
Depending upon your existing loan situation and incomings, the negotiator would take up negotiating debt with the creditor. Therefore, you can manage your spending better with reduced pressure from the creditors. Thereby allowing you peace of mind to focus on how to earn better since you took the correct option to negotiate debt rather than falling prey to the financial situation.
Therefore, make the wise choice of negotiating debt when stuck in the crossroads of loan burden.
Feldman Law Center – The Home Loan Modification Jungle
January 7th, 2010 by adminFeldman Law Center – News by Feldman Law Center – “It’s a jungle out there, kiddies…” ? Jimmy Buffet
Jimmy Buffet wasn’t talking about the home loan modification process, but he could have been. For home owners attempting to pick their way through a loan modification on their own, the experience is not much different than heading into the wild without a guide. Getting lost (waiting weeks for a reply to the simplest questions), taking wrong turns requiring backtracking (multiple submissions of the same paperwork), and surprise attacks from wildlife (rejection of your application for the slightest mis-step) are all part of the territory.
Steven Feldman, of The Feldman Law Center in Mission Viejo, California said recently, “We’ve negotiated loan modifications with just about every lender and servicer in the business. It’s amazing how each one has a slightly different method of measuring qualifying criteria, how much weight certain information carries, and what constitutes a deal breaker.”
The same information submitted to different lenders will often result in completely different outcomes. Amounts in disposable income, in terms of what is too much and what is too little, have different thresholds at different lenders. The same can be said for debt-to-income ratios, current income, expenses, and estimated payment capability. The tiniest of variations in set parameters between lenders can make a huge difference in the number and types of homeowners that qualify for home loan modifications.
The key for homeowners is to align themselves with firms that are familiar with what each lender considers as the key targets for financial information. To that, Mr. Feldman said, “Having executed over six hundred modifications, we feel like we have a pretty good handle on what each lender/servicer is looking for in terms of what financial information qualifies an applicant and what doesn’t.” He added, “Back in the day, mortgages were a pretty straightforward proposition. A fixed interest rate, 360 identical payment coupons, and payoff at maturity in thirty years were the standard. Now, with so many moving parts in a mortgage, you have to stay on top of all them because they all inter-relate and a couple of bucks here or there can make the difference between getting what you want and being turned down.”
The company line for lenders and servicers is that they follow parameters set within the Obama administration’s Home Affordable Modification Program, but attorneys with hundreds of executed modifications behind them tend to disagree. Mr. Feldman is one of them. He said, “We know of several instances where homeowners with almost identical incomes, ratios, etc. applied with different lenders. There were approvals by one lender while others were turned down. The key is knowing what the lenders want so the information can be presented in a manner that suits their protocol.”
Getting a guide for a trip in through a jungle is seen as plain common sense. Just like going on safari, the complexities of negotiating a successful home loan modification require guidance with expertise, knowledge, and experience. Get an attorney to guide your home loan modification. It may not save your life but it could save your home.
Loan Modification Problems in Las Vegas
January 7th, 2010 by adminThere is a lot hand wringing and anxiety in the media these days regarding paying fees for loan modifications. Barack Obama was even quoted as saying, “If you have to pay, walk away”. Generally speaking, the “do it yourself and save a lot of money theory” is advanced with regularity as something anyone can do. That is, until people in the real world actually try to do it by themselves. An article chronicling the labors and frustrations of people that have tried to modify their own loans was recently posted in the Las Vegas Sun. It is a must-read for anyone contemplating the do-it-yourself path toward a loan modification.
Some quotes and comments:
Feldman Law Center – What Do Higher Taxes Mean For Loan Modifications?
January 6th, 2010 by adminIn today’s unpredictable economy, you can’t take anything for granted. You don’t know if you’ll have a job tomorrow, if you will be asked to take an unpaid vacation, or if the interest rate on your home mortgage will spike. What if gas prices soar? Will a trip to the grocery store for your family’s weekly necessities cost more? So much of the territory that our country, and the world, is venturing into is unchartered.
While we don’t know what the future holds, we can try to plan appropriately for it. How can you prepare yourself for future expenses, save money, or spend less in your current situation? Many wise people are considering these questions now.
In addition to planning for the future, we can also take advantage of the opportunities that we are offered today. One opportunity being offered to many troubled homeowners is a home loan modification.
President Obama’s housing plan involves offering many people a chance to modify their home loans. If a distressed homeowner lives in his or her property, falls within the requirements for the amount they owe, and meets additional criteria, they could be eligible for the government plan. The FDIC even has a “mod in a box” home loan modification program that they are hoping to enlist lenders in taking part in. Even if you don’t take advantage of the government’s specific plans, and are a homeowner in a volatile financial situation, you can still opt to modify your home loan.
With the help of the Feldman Law Center, you can have a better chance at protecting your financial future. You do not know when home loan modifications will start to taper off, how long you will be at your current job, or how your taxes could be changed in the future. If you are concerned about your adjustable rate mortgage, or a potential bankruptcy or foreclosure, you need the help of experienced attorneys on your side.
The federal government as well as many state governments, are talking about increasing taxes. What is the potential fallout of that? Given the uncertainty we are facing now, it is hard to guess what higher taxes might result in. But perhaps homeowners would have to pay higher property taxes, or perhaps additional fees and penalties could be added to home loan modifications.
Debates on the efficacy of taxes, both low and high, are inevitable. Chances are good that tax rates and structures will soon change. Will this be good for your current situation? Will you pay more, or less? Will you be a part of the population paying for the benefit of others, or will you be the beneficiary? Obviously, this depends on many factors. It doesn’t seem prudent to generalize widely about this. Every situation will end up being different.
It might not be a good idea to wait for a loan modification. They are available now. Call the Feldman Law Center today. We specialize in loan modifications and are ready to assist you today.
10 Frequently Asked Questions on Loan Modifications
January 4th, 2010 by adminQ) Is unemployment considered a hardship?
Getting the Best Home Mortgage Loan
January 3rd, 2010 by adminAny family would surely love to have a house which they can transform into a happy nest of a home later on. Aside from this want, a shelter that a home can give is the one of the first basic needs of man, according to Maslow’s Hierarchy of needs. Thus, no one should be surprised if people are scrambling to get home mortgage loans.
A home mortgage loan is the most popular way to own a house nowadays. You get to live in a house which you are paying for monthly and sooner or later. However, there is the risk of having your house foreclosed if you default on your payment. Since mortgage is a type of debt that is secured by the house itself upon your failure to complete your payment, you must then be careful in selecting the best home mortgage deal around.
It is widely known that due to the ill-handled financial bubble in the United States brought about by looser rules on granting credits, loans and mortgages to people, a global crisis has since threatened the whole world. With the economy not performing well, interest rates in mortgaged houses went down. This is where you can enter the market, despite more people getting out of the real estate business. You can engage yourself in home mortgage refinancing. To know more about this financing, here are its essential aspects which can convince you to continue investing on a home.
First, home mortgage refinancing can get help to reduce the interest rate that you are paying. One condition though for you to achieve this is to a have a spotless credit history. A clean one will help increase your credit rating. Credibility and trustworthiness will really pay and maintaining these virtues as a debtor can help you pay your mortgage loan. A lower interest rate would entail lower monthly payments.
Second, this will enable you to finish paying your mortgage at a shorter period of time. Thus, you will immediately be assured that the house is totally yours already which will surely make you feel more secured. Through refinancing, the period of payment can be made in fewer months but the monthly payments will be bigger than how they used to be. This is alright though for as long as you will immediately land the definite title of home ownership sooner than expected.
Third, as the mortgage is paid over time, you get to increase the financially important gap between the initial price value of the property and the appreciating market value. This will enable you to derive more cash which you can use anywhere, especially for the enjoyments of the family.
Fourth, you can change your mind to paying a Fixed Mortgage Rate from an adjustable one. This rate is usually lower, which you can steadily pay over time.
These are only some of the financial avenues for you not to be hesitant after seeing many house foreclosures in your neighborhood. Always remember that a house will always be a good investment and an essential asset to possess.
Information To Help You Get That Canada Loan
January 2nd, 2010 by adminThere are four elements that mortgage lenders take into account before they grant your Canada Mortgage application. Your income is a vital consideration. The lenders also look into your credit history. They also review the property to be mortgaged. The Down payment is another factor.
The first information lenders want to know is your income. Are your earnings high? Or are they enough for sustenance? Lenders are not strict when it comes to the nature of your livelihood. What they are strict of are the requirements like certificate of employment, two months latest pay slips and Notice of Assessment Forms from Canada Revenue Agency.
The Notice of Assessment validates your regular earning and timely payment of taxes. If you are working for a company, the mortgage lender will make the necessary employment verification at your office.
Lenders will also look into your capacity to make your monthly payments in case you are granted with mortgage loan. The factors that lending institutions take into account are how many people in your family, how long you have had work, monthly bills and other payments you need to make.
To determine the amount of mortgage that they can grant you, the lending institutions rely on a formula. Your Gross Debt Service Ratio, or GDS and Total Debt Service Ratio, or TDS are critical elements to qualify for Canada Mortgage.
The GDS is the maximum percentage of your gross income that is apportioned to your monthly expenses. This includes payment for the principal and interest of mortgage, property taxes, heating and air-conditioning, and other dues. To qualify, it is important that your monthly expenditures do not go beyond 32% of your total monthly income.
The maximum amount of your gross income allocated for GDS constitutes your TDS. It sets aside money for payment of utility bills including credit cards, all types of loans and other disbursements. To ensure approval for Canada Mortgage, your TDS should be within 40% of your total income.
Credit History is an equally important element that lenders always review. If in case your credit history is tainted, there are available programs that can help you re-build it. To determine the credit score, there are free services or software that a website offers to calculate it. Whenever loans are the issue, credit history is always a determining factor.
The selection of real estate property subject for mortgage is another crucial element. To qualify, choose the house and lot that use quality materials. The appearance and physical attributes of the property matter to the mortgage lenders. Mostly, they initiate a property inspection.
The real estate property is the lender’s security in case of non-payment. Lenders are very cautious that the real estate property should still be in perfect condition for re-sale, in case of default. Hence, a property appraisal by the lender is a requirement before a Canada Mortgage is granted.
Generally, the down payments are not a constant requirement since there are mortgage program that can cover 100% financing. However, if you have 20% or more of the purchasing price, the Canada Mortgage lender will not require default insurance.
Feldman Law Center – Avoiding Loan Modification Scams
December 31st, 2009 by adminAvoiding a loan modification scam can be difficult, especially if you have not done your homework. Today, recent statistics show that one in ten homeowners is either in foreclosure or behind on their payments. This means there are millions of homeowners in dangerous financial positions, with millions more on the brink of chaos. There are so many loan modification companies in California, let alone America, that keeping on top of the illegitimate ones is impossible.
Here are some common loan modification scams being perpetrated throughout California:
The Disappearing Foreclosure Professional ? This is the kind of person who promises the world, then takes a payment and finally just vanishes. This individual will perform little or no service, will take your money and will leave you with all the problems you had to start with.
Loan Modification Helpers ? In this situation, a loan modification “expert” claiming they can negotiate directly with your bank. However, they never produce the results they promise. Sometimes, the expert will gain your trust and try to get you to make payments directly to them. Unfortunately, this loan modification scam can take quite a bit of your money.
Sale and Leaseback Scams ? There are people out there claiming to be able to bail you out of a jam. You sign over your house to the scam artist and then pay that person rent. They then claim that they will sell the house back to you at a bargain price later. Of course, being that this is a scam, these people often sell the house out from under the former owner, and they don’t tell the current occupants. What winds up happening is that you rent the home you used to own, then the home gets sold and you are left homeless.
Books and Seminars ? While attending a loan modification seminar, or buying a “do your own loan modification” book is not necessarily a scam, they can be misleading. Good writers and good public speakers can often portray a scenario as being much easier than it really is. For example, the loan modification process is complex, and there is quite a bit on the line for you and your family. A loan modification seminar or loan modification book will suggest that it is a simple process that you can handle all on your own. However, without a solid understanding of real estate, mortgages, foreclosure, the courts and lenders, doing a loan modification on your own is extremely difficult. You wind up exposing yourself to all kinds of mistakes, and without someone helping you there is a great chance you could be taken advantage of by a lender.
Finding a quality loan modification company is important. The Feldman Law Center has been around for many years, and we are constantly helping people who are facing foreclosure and other financial challenges. If you are afraid of losing your home, a California loan modification attorney can walk you through the loan modification process, negotiate with lenders and help keep you in your home, where you belong.
Visit us at http://www.feldmanlawcenter.com or call 800-588-0425
Legal Disclaimer
The information contained herein is provided for general information and advertising purposes only and is not intended to convey a legal option nor legal advice for any particular case or situation. Nothing in this article shall create an attorney-client relationship. Nothing sent to this law office via e-mail shall constitute an attorney-client relationship. Nothing contained in this article shall be construed to be a guarantee or prediction of result. Prior results are provided for general information purposes only and do not guaranty, warranty or predict a similar outcome with respect to any future matter. Results achieved depend on individual circumstances and not everyone will qualify or be successful in restructuring their mortgage loan.
Author: Greg Feldman
New Hope Mortgage Solutions is The Flagship of Loan Modification/Loss Mitigation Companies
December 31st, 2009 by adminWhy is New hope Mortgage Solutions so successful? That’s a great question.. The homeowner that try’s to attempt a loan modification by them selves, is not aware of what a true loan modification entails.
First you ask what Loss Mitigation is really. How does it all “really” work? Why do I need a reputable company to help me, and why can’t I do this myself…. Ok let’s address the “what is” Loss Mitigation AKA= Loan Modification question first…..
What is Loss Mitigation?
A Mortgage modification is simply a modification to an existing loan made by the current lender in response to a borrower’s long-term inability to repay the loan. Loan modifications typically involve a reduction in the interest rate on the loan, an extension of the length of the term on the loan, a different type of loan or any combination of the three.
Some consumers confuse a loan modification with a forbearance agreement. These are two separate types of agreements. A loan modification is a long term permanent solution for borrowers that show an inability to repay the existing loan, where as, a forbearance agreement is short term relief for those suffering a temporary financial problem.
There are six top reasons that a loan modification will work for you. If any of these apply to your current situation than you are a definite candidate for a mortgage modification. The seven top reasons are as follows;
1. Inability to refinance due to loss of equity, owing more than your home is worth
2. Inability to refinance due to lack of positive credit or late mortgage payments
3. Rate currently adjusting or going to adjust
4. Do you have a “Pick-A-Pay” or Minimum Payment Interest only Loan
5. Suffered a Financial hardship (job loss, pay reduction, medical bills, divorce, etc)
6. Currently Facing Foreclosure
7. Inability to be able to afford your current financial situation.
If any of the above reasons apply to your current situation than you need to attempt a loan modification. You can try it on your own, but I must caution you, only 10% of homeowner submitted loan modifications are successful. This is mostly due to homeowners submitting incomplete loan modification packages.
Another reason for this lack of success is that the homeowner must spend several hours navigating through the phone tree, re-telling their story over and over again. This can be very discouraging on top of the fact that the homeowner must call during normal business hours, usually 9am-6pm. Plus, it doesn’t get done with one phone call. There is constant follow up involved and more than likely you’ll have to send in information that you have already sent over and over again.
Company’s like New Hope Mortgage Solutions LLC are able to navigate through this intricate system of phone trees and incompetent phone jockeys without emotion and get right to the decision maker with speed and efficiency. And when the clock is ticking, that is exactly what is needed. They realize that when dealing with these complicated and frustrating financial matters, some homeowners may be looking for a more economical solution towards solving this problem. There are many forms of Loss Mitigation or types of Loan Modifications. The meaning of Loss Mitigation is a legal third party representation. The representation should be done by an attorney in the homeowner’s behalf.
The homeowner usually has no idea what the lender/banks guidelines and ratios are for qualifying for a full term, (change the note) Loan Modification. Normally the homeowner thinks the lender is in his/her favor, and they somehow believe the lender is just going to help them because they are their lender. This is absolutely untrue, and incorrect. The truth is the bank is an investor, and your rate and payment is the investment. Unfortunately you are nothing more than a loan number.
The banks start out awarding any relief in the lowest most frugal manner they can. Everyone is calling for loan modifications, everyone. Lenders just do change the terms of someone’s actual mortgage (”NOTE”(what your rate and payments are for the life of the loan), without knowing you are able to handle the payment they modify the new loan too. If everyone qualified for a full term loan modification, then we all would be getting one, just like that. The new programs being offered by the government “Keeping America in their homes” is all based on your income minus your expenses. These numbers are calculated your housing ratios, as well as your debt to income ratios. This is the pitfall of the program because people do not know this going in. If they did they would have gotten a Loss Mitigation company to help them reach those ratios if possible. What the media and the “Hope Now” programs being offered for free are not telling everyone is…….your numbers have to work, and you must be a darn good negotiator to fight for the lowest payment and rate. The banks first offer to a homeowner is the famous Forbearance Program also known as the repayment plan. This is the least relief a lender can give. This is applied to the homeowner who is late on their payments. The lender adds up all the payments that haven’t been paid, with the late fees as well as any legal fees. The divide this number by six or twelve. Then they add that number to the homeowner’s already unaffordable mortgage payment. If this were a success, this particular program would not have turned out to be a “Flop” for the banks thus far. For the homeowner who is not late on mortgage payments the lender is offering a temporary solution. This means they will offer the homeowner a lower rate and payment, but only for a short amount of time. The “Mortgage Note” does not change during this process. Reaching a full term Loan Modification is what New Hope Mortgage Solutions Attorneys do.
Now I don’t know about you, but I do not want to do my own taxes prepared without a professional guiding me through my options. Empowering the homeowner before negotiations begin with a company like New Hope Mortgage Solutions, and the network of attorneys they work for is the smartest move a homeowner can defend themselves with. They conduct a 100% free evaluation of every single homeowner before the attorney’s retainer is obtained. The attorney also calls each bank with the homeowner’s authorization to see if the lender/bank will allow a third party representation as a part of the pre- qualifying consultation. If any loan modification company wants to take your money before checking these ratios………run….run far away. Ask to speak to the actual attorney before paying the retainer fee. If they say the attorney is not there, or can’t take your call………..run….run far away. It is unethical for any company to take a homeowners money without doing a complete check of your income v/s your expenses….period…no exceptions. There should not be a fee to check these ratios either…why take someone’s money that is already hurting to tell them you can not help them…..To me that’s getting off to a rocky start.
At New Hope Mortgage Solutions you will receive a complete evaluation before moving forward with the Loss Mitigation Case. You will also receive a personnel attorney that handles your case from start to finish. You will be updated regularly with report on your case. New Hope Mortgage Solutions has helped all of our clients reach the ultimate loan modification for their situation. As I said New Hope Mortgage Solutions is the flagship of Loss Mitigation Companies. Call today for an evaluation 1-866-611-7725
Has The Turkish Home Loan Market Saved Because No Mortgage Regulations Was In Place?
December 30th, 2009 by adminA lot of foreign investors are contemplating on renting up a property on Turkish grounds. This is basically because of the real value of the place especially when it comes to tourism. The country is a good combination of big beach resorts and a favourable climate. An added advantage that foreign investors see is the fact that homes are reasonably priced. With all these facts about Turkey, everybody seems to be interested in signing up a home loan in any of the banks or financial institutions offering one.
Developments of various properties in the place are considered budget-friendly. This being so, investors both from within and outside the nation are taking their chances on investing on home loan. But, is it true that the Turkish home loan market was put aside because there were no concrete mortgage regulations in the place?
The real scenario in Turkish home loan market
The Turkish mortgage regulation was supposed to provide tax incentives to mortgagors. These tax incentives are now utilized in order to develop the primary and secondary mortgage markets in the country.
Mortgage regulations in Turkey are not to be taken as an opportunity to raise the fair market value of Turkish properties offered in the loan mortgage market. If this happens, prospects of the said market ? especially foreign investors ? may back out from the project. This may even be a cause of another problem when selling mortgage bonds to countries like the USA.
How did Turkey solve the home loan problem coinciding with mortgage regulations?
Turkey must be very thankful with the presence of big construction companies who helped develop new projects just after the mortgage regulations have been implemented. These projects led to the decrease of home prices and are now available for loan. Effortlessly, the government as well as project proponents are able to sell the homes to various investors.
Of course, the country continued to flourish in terms of tourism. In fact, Kusadasi and Fethiye on the west continue to be recognized worldwide because of its well-known resorts. Smaller beach towns like the Aegean and Mediterranean Region are not left lagging behind. For anyone who continues to search for mortgaged property in Turkey, Antalya and Side at the southern part are popular choices.
Mortgage regulations increase the value of the Turkish home loan market
Despite the presence of mortgage regulations in Turkey, there is no reason for an investor to be afraid about investing on a property through loan mortgage. In fact, as the market progresses, investors are given the chance to use the gearing technique.
Gearing is a method that can help anybody who looks for higher returns on investment. Simply put, if you eye to purchase a property worth
Mortgage loan modification and the law
December 30th, 2009 by adminThe passage of legislation that affects the mortgage industry has taken a major upswing.
The Early Stages of This Loan Modification Plan
December 28th, 2009 by adminWhen the first stages of discussions and talks got underway on Obama’s loan modification program, many people responded with good cheer and a healthy dose of curiosity. Many politicians were uncomfortable in their division of their stance against, and with Obama’s loan modification plan, that would provide incentives for lenders to help homeowners keep or modify their mortgages on their homes. There of course, are stipulations for the handing out and the usage of these loans. This includes a lending company to stimulate the housing economy by loan modifications to a homeowner deemed eligible to receive the loan. Each year the recipeints could receive up to a thousand dollars for up to five years in the maintenance of their mortgage.
Within the early stages of this loan modification plan, many people were already bailing out of their mortgages by the thousands and leaving lenders with a bad taste for helping America’s homeowner at all. On the other side, with money already being given to these large corporate banks, holding companies and investment companies, most American’s were already losing their faith in the companies who handle, negotiate, process and finalize their loans.
This seemed to be a standoff at first with politicians heating up the talk radio shows, firing rounds at the President from their political podiums, and hounding the House and Senate representatives with fervor over the government bailouts. This was not something that suddenly sounded just and fair for the average American, because once again, the Federal government was bailing out the bad guys.
The reports of the housing industry’s downfall, came on the heels of homeowners being served with eviction notices, while still other people were ultimately defaulting on loans that had sky-rocketed to momentous proportions. This grand scheme of Obama’s loan modification program came into the light as a way to use federal money, up to the tune of 9 million dollars to help lenders adjust and modify their client’s home mortgages. How sad to see the Federal government bailing out these same companies that were looking for their own skins to be saved, while still closing down on the necks of the American people they were set upon to make loans to.
This was just one of Obama’s first ventures into helping America get back onto its feet, and it comes hot on the heels of the occupancy of the oval office. With the promise of the American dream held in the hands of the federal government, one wonders just what the loan modification will eventually do for the American homeowner.
Payday Advance Loans – The Loan Depo
December 28th, 2009 by adminThe Loan Depo is here to meet your immediate cash needs through a simple, flexible solution, a Payday Advance Loan. We always work hard to meet you on your terms to help you solve all your short term financial needs and in a way that best fits your busy lifestyle. The Loan Depo gives you access to payday advance loans (also called cash advances), and we also now feature many other competitively-priced financial services, including auto title loans.
Payday Advance Loan is a small personal payday loan that comes in handy when you are short on cash, to hold you over until your next payday. You can get a payday advance loan by filling out our short online loan application. The application takes just minutes to fill out and the approval process is instant. All we require is that you are at least 18 years of age, have an open and active checking or savings account (preferably with Direct Deposit), at least $1,000 per month of steady verifiable income, and a current permanent residence.* We even offer you flexible repayment options for your cash advance loan. We understand that financial situations may present themselves that you aren’t always prepared for, that is why we offer you a wonderful Payday Advance Loan service.
Don’t let life’s little surprises get the best of you. If you are in a situation where you are short on cash don’t hesitate to get the help you need. With our payday advance loan service you can even get the cash advance you need from the comforts of your own home. We will even deposit the money directly into your bank account on the next bank business day. So, don’t waste your time waiting in lines and filling out tons of paperwork at your nearest payday advance loan store. You won’t find a more simple and discrete service then a Payday Advance Loan from The Loan Depo.
Start the process immediately by calling toll free (800) 979-1824 or visit The Loan Depo website at:
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