Real Estate & Condos

The Nationwide Mortgage Settlement, a Modest Assist to Troubled Homeowners

admin — Fri, 10 Feb 2012 10:28:14 +0000

Homeowners will benefit from loan modifications, cash payments and regulation changes.

Thursday, February 9, 2012

A $25 billion pot is being provided by 5 banks to settle allegations that they engaged in abusive foreclosure tactics, including so-called “robo-signing,” in which employees faked signatures on foreclosure papers or swore to the accuracy of papers had not actually read. $1.2 billion of the settlement are fines for the banks misconduct, the settlement also mandates a new code of conduct for the treatment of troubled borrowers.The “dual tracking.” practice of proceed with a foreclosure while a borrower is in the process of arranging a loan modification is one of the criticized practices that will be restricted by these regulation changes.

The lenders will reduce loans for about 1 million households at risk of foreclosure, and will send checks of up to $2,000 to about 750,000 Americans who were improperly foreclosed.

The five banks are Ally Financial, Bank of America, Citigroup, JP Morgan Chase, and Wells Fargo.

How the $25 billion is being distributed

$17 billion To homeowners, with the bulk of it to be used for principal reductions.$3 billion For refinancing the mortgages of underwater borrowers.

$1.5 billion For payments to consumers who lost their homes to foreclosure.

$2.6 billion To states for foreclosure prevention.

$750 million To the federal government.

Although it is the biggest settlement involving a single industry since a 1998 tobacco deal, there’s an estimated $700 billion in mortgages exceeding the value of the homes, only $13 billion of the settlement goes toward refinancing or reducing the debt of these troubled home owners.

Statements from The Department of Justice and State officials

The unprecedented joint agreement is the largest federal-state civil settlement ever obtained and is the result of extensive investigations by federal agencies, including the Department of Justice, HUD and the HUD Office of the Inspector General (HUD-OIG), and state attorneys general and state banking regulators across the country. The joint federal-state group entered into the agreement with the nation’s five largest mortgage servicers: Bank of America Corporation, JPMorgan Chase & Co., Wells Fargo & Company, Citigroup Inc. and Ally Financial Inc. (formerly GMAC).

“This agreement – the largest joint federal-state settlement ever obtained – is the result of unprecedented coordination among enforcement agencies throughout the government,” said Attorney General Holder. “It holds mortgage servicers accountable for abusive practices and requires them to commit more than $20 billion towards financial relief for consumers. As a result, struggling homeowners throughout the country will benefit from reduced principals and refinancing of their loans. The agreement also requires substantial changes in how services do business, which will help to ensure the abuses of the past are not repeated.”

“This historic settlement will provide immediate relief to homeowners – forcing banks to reduce the principal balance on many loans, refinance loans for underwater borrowers, and pay billions of dollars to states and consumers,” said HUD Secretary Donovan. “ Banks must follow the laws. Any bank that hasn’t done so should be held accountable and should take prompt action to correct its mistakes. And it will not end with this settlement. One of the most important ways this settlement helps homeowners is that it forces the banks to clean up their acts and fix the problems uncovered during our investigations. And it does that by committing them to major reforms in how they service mortgage loans. These new customer service standards are in keeping with the Homeowners Bill of Rights recently announced by President Obama – a single, straightforward set of commonsense rules that families can count on.”

“This monitored agreement holds the banks accountable, it provides badly needed relief to homeowners, and it transforms the mortgage servicing industry so now homeowners will be protected and treated fairly,” said Iowa Attorney General Miller.

“This settlement has broad bipartisan support from the states because the attorneys general realize that the partnership with the federal agencies made it possible to achieve favorable terms and conditions that would have been difficult for the states or the federal government to achieve on their own,” said Colorado Attorney General Suthers.

The Associated Press contributed to this report.

FTC Bans Mortgage Assistance Relief Service Advance Fees

admin — Sun, 27 Feb 2011 00:39:06 +0000

In response to the plague of fraudulent debt and mortgage relief services, the FTC enacted new regulations, effective January 31, 2011, below is the official announcement.

The advance fee ban under the FTC’s Mortgage Assistance Relief Services (MARS) Rule is designed to protect financially distressed homeowners from mortgage relief scams that have sprung up during the mortgage crisis.

“Banning the collection of up-front fees will protect homeowners from being victimized,” FTC Chairman Jon Leibowitz said. “This is especially important at a time when so many people are behind on their mortgages or facing foreclosure.”

As of January 31, 2011, companies that offer to help homeowners get their loans modified or sell them other types of mortgage assistance relief services are no longer allowed to charge up-front fees. Under the rule, a mortgage assistance relief company may not collect a fee until the consumer has signed a written agreement with the lender that includes the relief obtained by the company. When the company presents the consumer with that relief, it must inform the consumer, in writing, that the consumer can reject the offer without obligation and, if the consumer accepts, the total fee due. Before the consumer agrees to accept the mortgage relief, the company must also provide a written notice from the lender or servicer showing how the relief will change the terms of the consumer’s loan (including any limitations on a trial loan modification).

During the past three years, the FTC has filed 32 lawsuits against mortgage assistance relief companies for deception and abuse, and state law enforcers have filed hundreds of additional cases. The MARS Rule issued in November gives the FTC and the states an additional tool for combating deceptive and unfair acts or practices by these entities.

Attorney exemption

Attorneys are generally exempt from the rule if they provide mortgage assistance relief services as part of the practice of law, are licensed in the state where the consumer or dwelling is located, and comply with state laws and regulations governing attorney conduct related to the rule. To be exempt from the advance fee ban, attorneys must also place any advance fees they collect in a client trust account and abide by state laws and regulations covering such accounts.

Information for Businesses and Consumers

FTC staff has issued two new business education publications. “The Mortgage Assistance Relief Services Rule: A Compliance Guide for Business” describes the key provisions of the MARS Rule to help covered businesses ensure that they are in compliance. “The Mortgage Assistance Relief Services Rule: A Compliance Guide for Lawyers” contains specific guidance for attorneys who provide mortgage assistance relief services. The staff has also issued a consumer publication, “Mortgage Assistance Relief Scams: Another Potential Stress for Homeowners in Distress,” which relates how to spot and avoid these scams.

Ethics of “Strategic Default” Abandonment of homes Discussed on 60 Minutes

admin — Tue, 11 May 2010 01:22:00 +0000

May 9, 2010

(AP Photo/Patrick Semansky)

Last Sunday’s 60 minutes featured a piece addressing the estimated 1 million families who had defaulted on their home loans and walking away in 2009, although they could have afforded to stay. The practice of abandoning homes that are “under water” can be easily justified in financial terms, particularly in those states where one’s other assets are protected. But what about the ethics our parents lived by, calling for one to pay their debts.

One owner who had paid just 10% down on a house that lost nearly 50% of it’s originnal value was asked:

“Aren’t you fearful that you’re gonna get a reputation as being a deadbeat?” Safer asked.
“Yeah. But with the money savings that I will have in four to six years, I’m confident I’ll have money to buy my way into a house if I want to,” he replied.

I find the strategic practice of stopping payments, but staying in the home until being actually evicted, to be particularly underhanded in traditional ethical terms, although it probably has a minimal impact on the bank’s bottom line.
The complete 60 minutes story and additional material online

First Time Buyer Tax Credit Extended, Act Now

admin — Fri, 13 Nov 2009 01:55:48 +0000

The president has signed an extension of the first-time home buyer tax credit of up to $8000. Probably the last extension of this assistance, to take advantage of this tax deal, you must have the contract in place before May 1, 2010, with a closed deal before July 1, 2010.

The extension includes a new benefit of up to $6,500 for ‘old’ home buyers, who have resided in their home for 5 years.

Should your tax bill be lower than the amount if the credit you will receive a check from th IRS for the balance.

A recent Wall Street Journal Online article details the benefits and answers the most common questions in a Q&A segment.

The National Association of Home Builders sponsors a site dedicated to The Federal Housing Tax Credit

State Real Estate and Mortgage Information

admin — Thu, 12 Nov 2009 02:03:36 +0000

Real Estate and Mortgage Information, by State:

State and local sources of housing and mortgage information and assistance

Alabama Housing Finance Authority

Alaska Housing Finance Corporation

Arizona Department of Housing/Arizona Housing Finance Authority

Arkansas Development Finance Authority

California Housing Finance Agency
California Tax Credit Allocation Committee

Colorado Housing and Finance Authority
Adams County Housing Authority

Connecticut Housing Finance Authority

Delaware State Housing Authority

District of Columbia Department of Housing and Community Development
District of Columbia Housing Finance Agency

Florida Housing Finance Corporation

Georgia Department of Community Affairs/Georgia Housing and Finance Authority
HUD-Approved Housing Counseling Links

Hawaii Housing Finance and Development Corporation

Idaho Housing and Finance Association

Illinois Housing Development Authority

Indiana Housing and Community Development Authority

Iowa Finance Authority

Kansas Housing Resources Corporation

Kentucky Housing Corporation

Louisiana Housing Finance Agency

Maine MaineHousing

Maryland Department of Housing and Community Development
Maryland Foreclosure Counseling Services Law

Massachusetts Department of Housing & Community Development
MassHousing

Michigan State Housing Development Authority
HUD-approved Housing Counseling
Detroit HOPE

Minnesota Minnesota Housing

Mississippi Home Corporation

Missouri Housing Development Commission
HUD-approved Housing Counseling Links

Montana Board of Housing/Housing Division

Nebraska Investment Finance Authority
HUD-approved Housing Counseling Links

Nevada Housing Division

New Hampshire Housing Finance Authority
HUD-approved Housing Counseling Links

New Jersey Housing and Mortgage Finance Agency
HUD-approved Housing Counseling

New Mexico Mortgage Finance Authority
HUD-approved Housing Counseling

New York City Housing Development Corporation
Nassau County foreclosure assistance hotline
New York State Division of Housing and Community Renewal
New York State Foreclosure Prevention
New York State Housing Finance Agency/State of New York Mortgage Agency

North Carolina Housing Finance Agency
HUD-approved Housing Counseling Links

North Dakota Housing Finance Agency

Ohio Housing Finance Agency
Lucas County Foreclosure Prevention Assistance
Ohio Department of Commerce / Consumer Lending Foreclosure Hotline

Oklahoma Housing Finance Agency
HUD-approved Housing Counseling Links

Oregon Housing and Community Services

Pennsylvania Housing Finance Agency
HUD-approved Housing Counseling Links

Puerto Rico Housing Finance Authority

Rhode Island Rhode Island Housing
HUD-approved Housing Counseling Links

South Carolina State Housing Finance and Development Authority
HUD-approved Housing Counseling Links

South Dakota Housing Development Authority
HUD-Approved Housing Counseling Links

Tennessee Housing Development Agency
HUD-approved Housing Counseling Links

Texas Department of Housing and Community Affairs

Utah Utah Housing Corporation

Vermont Housing Finance Agency
HUD-Approved Housing Counseling Links

Virgin Islands Housing Finance Authority

Virginia Housing Development Authority
HUD-Approved Housing Counseling

Washington Washington State Housing Finance Commission

West Virginia Housing Development Fund
HUD-Approved Housing Counseling Links

Wisconsin Housing and Economic Development Authority

Wyoming Community Development Authority

When to Make a Foreclosure Investment

admin — Wed, 09 Sep 2009 06:21:01 +0000

There are three phases of a foreclosure; pre-foreclosure/short sale, auction, and REO (real estate owned). In this article we will discuss the phases of a foreclosure and when, during the process, is the best time to make your foreclosure investment.

A pre-foreclosure is the beginning. Payments are in arrears at least 90 days. The clock is ticking. The first 90 days, only the homeowner and lender know what is happening. After 90 days, a notice of default or Lis Pendens is recorded at the county recorder’s office or register of deeds office. This is the beginning of a foreclosure called a pre-foreclosure. Before a property becomes a foreclosure is a good time to purchase the property. The property is still in the owner’s hands and they may be willing to work with you. First, you need to find them, contact them, ask questions, and do your homework. Only then, offer assistance.

The homeowner still is in control. If there is equity in the property, work with the owner to take an equity position. If there is no equity, work with the lender. Negotiate with the lender to buy the property for less than what is owed (short sale). This can help the homeowner avoid foreclosure and possibly help them avoid any more damage done to their credit. Bank gets rid of a bad loan and you make a profit on the resale. Win-win for everyone.

The next step is a foreclosure auction. After the property goes into foreclosure, it then goes to auction. In order to purchase a home at a foreclosure auction, you need to make a minimum bid, pay off loan balance, all accrued debt, attorney’s fees, and you are responsible for all costs. If someone is still living in the home, you are responsible to evict them. You are responsible for all repairs and repairing all damage. There are no inspections. You buy the house “as is”.

If the house does not sell in the auction, it reverts back to the bank. The lender now has the right to sell the property as an REO (real estate owned), the third and final phase of a foreclosure. What does this mean?

An REO is the simplest way to purchase property. It is a good investment for the first-time homebuyers and investors. An REO property allows you to gain access to the property for an inspection. Lenders have a responsibility to their shareholders and they lose money on non-producing assets. So, they want a quick sale. They are able to provide 20% to 30% savings. All liens and back taxes removed. They are able to negotiate on rehab costs, interest, closing points, and loan amounts. They may allow a less than normal down payment. If there are tenants, the lender will evict them. You don’t have to. 100% risk free.

There are pros and cons to all three ways. However, the safest way is for you to do your homework. Know the property inside and out. Research everything about the property. Then, when you have done your due-diligence, you can make an educated decision and make your foreclosure investment.

Kimberly Ann

My name is Kimberly Ann. I am a new author. I am in the process of starting a new business. I am very excited about it. I am trying to provide good information and products that will help people to achieve all of their financial goals and to change their lives. Tall order, I hope with hard work and perseverance, I can accomplish my goal. To learn more about foreclosure investments; How to buy, sell, and make HUGE profits on your investments, what’s the secret? visit http://www.makeaforeclosureinvestment.com today!

Article Source: http://EzineArticles.com/?expert=Kimberly_Ann_Scharfenberg

Obama Administration’s Foreclosure Reduction Program Progress

admin — Wed, 09 Sep 2009 05:16:09 +0000

Federal Housing Administration Commissioner Dave Stevens reports mortgage servicers have extended approx. 571,000 loan modification offers through August, up from about 400,000 reported through July. About 360,000 modification offers are in a 90-day trial period prior to being made permanent modifications.
These reported figures show the administration’s program to combat rising U.S. home foreclosures is on track to meet it’s goal of modifying more than half a million delinquent mortgages.
Under the government’s Home Affordable Modification Program (HAMP), mortgage companies receive $1,000 for each loan modification completed, and additional moneys for up to 3 years, as long as the borrower stays current. Mortgage Bankers Association data show that first-quarter 2009 delinquency rates among securities backed by multifamily mortgages rose dramatically from the year-ago quarter, Stevens said.

Stevens warns of increasing evidence of “material and growing” challenges in the multifamily mortgage sector that could have negative consequences for tenants. He also indicated the administration was conducting a “high level review” of the housing rescue effort and was also exploring “programmatic options” to ensure signs of stabilization in the housing market are maintained.

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If you think you may benefit, the official Home Affordable Modification Program eligibility questionnaire asks a quick 5 questions, the hilites of which include: Are you in distress?, is the mortgage for less than $729,750 and are the payments more than 31% of your gross income?

The program’s official site also provides a simple Payment Reduction Estimator requiring just your mortgage payment and income to be entered.

Welcome to the Real Estate & Condo info center

admin — Wed, 02 Sep 2009 20:00:00 +0000

This site contains a compilation of information regarding Buying – Owning and Selling Real Estate, with an emphasis on the unique requirements of Condominiums.

Tips For Selling a Condo

admin — Wed, 02 Sep 2009 10:51:23 +0000

By Julian Bryce

Are you ready to move out of the downtown area into quieter neighborhoods, bigger living areas and safer streets with less congestion? If the glitz and glamour that once brought you to the city now interrupts your nightly slumber, perhaps it’s time you move to the suburbs. But that means you’ll have to put your condo, and city lifestyle, up for sale. Are you ready?

When looking to sell your condo, remember what brought you to the city in the first place. Although you may now long for spacious lawns and nights uninterrupted by traffic noises, the lack of landscape upkeep and a city that is awake 24-hours once drew you to the condo your presently own. Make a list of all the city conveniences you have enjoyed over the years: your favorite lunch spots within walking distance, night time entertainment options, relation to transportation services such as MARTA, the neighborhood gym and that pool hall that only locals know about. Leave your list of helpful area tips for potential buyers and make sure your real estate agent knows to give it to interested parties.

Also, make a list of utility and home service vendors that may be helpful for new owners. Make sure to include those services included in your homeowner’s association dues, such as water and sewage, trash pick-up, pest control and other amenities.

Make sure your living quarters are decorated nicely but not cluttered. Invest in inexpensive window dressings, such as curtains, if you do not have them; and place fresh flowers on the kitchen and coffee tables. Make sure clean towels are folded and hung in the bathrooms and appropriately in the kitchen. Tidy stray magazines and books and hide personal papers and belongings.

It is important that your condo looks lived in yet organized. Potential buyers have difficulty envisioning furniture in bare rooms, so try to keep your condo furnished. If you are a person who likes a lot of furniture, and overstuffed at that, think about moving some of the furniture out or putting it in storage. Remember that potential buyers need to easily move around your rooms and to be able to envision their furniture in the space. An overstuffed condo can be worse than a bare one since it makes the living quarters seem small and cramped to potential buyers.

For more info on Atlanta Condos, Atlanta GA Condos for sale or Atlanta Lofts please visit DwellAtlanta.Com

Article Source: http://EzineArticles.com/?expert=Julian_Bryce

Selling a Condo With Pride

admin — Wed, 02 Sep 2009 10:48:39 +0000

By Eliza Maledevic

Before starting a new life to a new location, of course, you need to sell your current property. Selling a property is not that simple, there are factors to be considered that are important in making a sale.

If you are selling your home at Miami Beach condo, you need to let anyone know that you are selling your property. A good advertising strategy is a good help to let everyone knows that you are selling your home. You can start by putting a big house for sale in front of your home. Include important details on the poster like your contact number and address of the property. This is a good way to let the passers by knows that your house is for sale.

You can also try to give away leaflets or flyers on a crowded place or leave a flyer on the wind shield of a car in the parking area of a grocery store. Contact your affiliates and ask them if they know someone who is interested in buying a home or ask your relatives if they have a friend who is looking for a Miami Beach condo.

You can also ask assistance from real estate agent and usually these agents do have a list of home buyers and investor who are interested in buying properties.

Above all these suggestions, you need to prepare your home so will have an easy way to convince prospected buyers. Convincing would be easy if the home that you are selling has the quality that a buyer wants. Technically you need to know the characteristics that a buyer wants in a home. You can ask yourself, if you were the one who will buy a home, what are the things you want in a home? This is very clear and it is also a way on how to have a great deal selling your home.

Preparing your home for a make over, beautifying the surroundings and landscaping the garden is what most home buyers want. Make sure that all facilities are all in a good working condition; check the lights and electrical wiring, if all the faucets and toilet facilities are working. This will save you from getting some disappointment from your buyers. You need to impress them with the things that you have in your home.

You need to learn how to say good things about your home and as much as possible answer their entire question promptly and honestly. Of course you don’t want to give your buyer a bad impression on your home. You can also tell your buyers that having a Miami Beach condo is more practical because there are features that you can have in a condo. Aside from the 24 hours security, there are personnel who are in charged of the maintenance of the condo.

Eliza Maledevic Ayson

http://luxurylivingrealty.net

Eliza Maledevic writes for http://Jump2Top.com – SEO Company

Article Source: http://EzineArticles.com/?expert=Eliza_Maledevic