Pre & Post RV Facts

Loan Modification Scam Alerts

3/4/2013

We have received more emails regarding Loan Mortgage Foreclosure Scams - Make sure you deal with a legitimate Company and not any individuals on handling your mortgages and foreclosures....You can lose your home and your money....

Loan Modification Scam Alerts

Common Loan Modification Scams

Loan modifications are changing every day. Here are some of the most common loan modification scams out there today.

Phony Counseling or Foreclosure Rescue Scams
The scam artist poses as a counselor and tells you he can negotiate a deal with your lender to modify your loan or save your house—if you pay him a fee first. The fee may be called a processing fee or administrative fee. He may even tell you not to contact your lender, lawyer or housing counselor—that he'll handle all details. He may even insist that you make all mortgage payments directly to him while he negotiates with the lender. Once you pay the fee, or a few mortgage payments, the scammer disappears with your money.

Fake "Government" Modification Programs
Some scammers may claim to be affiliated with, or approved by, the government, or they may ask you to pay high, up-front fees to "qualify" for government mortgage modification programs. The scammer's company name and Website may sound like a real government agency, but the Website may end with .com or .net instead of .gov. You may also see terms like "federal," "HAMP," "MHA," "HARP" or other words related to official U.S. government programs.

Contact your lender first. Your lender will be able to tell you if you qualify for any government programs to prevent foreclosure or modify your loans. And you do not have to pay to benefit from these programs.

Forensic Loan Audit
The scammer who may be called a forensic or mortgage loan “auditor” offers to review your mortgage loan documents to determine whether your lender complied with state and federal mortgage lending laws. The scammer will usually require that you pay a fee to start the process. The scammer may say you can use the audit report to avoid foreclosure, accelerate the loan modification process, reduce your loan principal, or even cancel your loan.

There is no proof that a forensic loan audit can save your home from foreclosure although it's conducted by a licensed, legitimate and trained auditor, mortgage professional or lawyer. Even if you sue your lender and win, your lender is not required to modify your loan to make it more affordable. If you cancel your loan, you will have to return the borrowed money, which may result in you losing your home.

Mass Joinder Lawsuit
The scam artist, usually a lawyer, law firm or a marketing partner, will promise that they can force your lender to modify your loan. They will tell you that by joining other homeowners in a mass joinder lawsuit against a particular lender, you will be able to stop a foreclosure, reduce your loan balance or interest rate, receive monetary damages, or even receive title to your house free and clear. Mass joinder lawsuits can be used legitimately; these lawyers are usually paid *after* the lawsuit is over, on a contingency basis. However, mass joinder lawsuit scammers will try to "sell" you participation in a lawsuit against your mortgage lender, claiming that you cannot participate in the lawsuit until you pay some type of fee.

Bait-and-Switch
The scam artist convinces you to sign documents for a "new loan modification" that will make your existing mortgage current. This is a trick. You actually just signed documents that surrender the title or deed of your house to the scam artist in exchange for a "rescue" loan. Thoroughly read any document before you sign it.

Rent-to-Own or Leaseback Scheme
A scammer urges you to surrender the title or deed of your home as part of a deal that will let you stay in your home as a renter and then buy it back in a few years. He may tell you that surrendering the title will permit a borrower with a better credit rating to get new financing—and keep you from losing your home. However, the scammer may have no intention of ever selling the home back to you.

But the terms of these deals usually make buying back your home impossible. Worse yet, when the new borrower defaults on the loan, you're evicted.

Variations:
1 The scammer raises your rent over time to the point that you can’t afford it. After missing several rent payments, you are evicted, leaving the "rescuer" free to sell your house.

2 The scammer offers to find a buyer for your home, but only if you sign over the deed and move out. The scammer promises to pay you some of the profit when the home sells. But the scammer simply rents out your home and keeps the profits while your lender proceeds with the foreclosure. You lose your home and are still responsible for the unpaid mortgage, because transferring the deed does not affect your mortgage obligation.

Short Sale Scam
Scammers, sometimes called "short sale negotiators" or "short sale processors," may promise to expedite a short sale and usually require you to pay a fee, which is illegal in many states. Some scammers may even include surcharges or hidden fees before the transaction closes, which are also illegal in many states. The scammer may also misrepresent the value of the home to the lender.

A short sale may be a legitimate option for a homeowner in default or homeowner who is current yet the value of the home has fallen -- if the lender agrees to the short sale. But homeowners should only work with a licensed real estate professional or licensed real estate attorney since the law requires that the person be properly licensed to negotiate the short sale with your lender. Homeowners should verify licenses with their state licensing agencies.

Variation: The negotiator may say that he/she will not personally take a fee from you because he/she is not certified in your state to negotiate a short sale, however a fee must be paid to his/her "people or partners" [usually anywhere between $2,500.00 - $5,000.00] who he/she will claim is certified in your state and will purchase the home from you for what is owed to the bank and then sell it either back to you or to one of your family members. They never sell the house back to you nor to your family member.

Bankruptcy to Avoid Foreclosure
The scammer may promise to negotiate with your lender or get refinancing on your behalf if you pay a fee up front. Instead of contacting your lender or refinancing your loan, he pockets the fee and files a bankruptcy case in your name—sometimes without your knowledge.

A bankruptcy filing often stops a home foreclosure, but only temporarily. Filing bankruptcy stops any collection and foreclosure while the bankruptcy court administers the case. But, eventually you must start paying your mortgage, or the lender will be able to foreclose.

You could lose the money you paid to the scammer and your home. Worse yet, a bankruptcy stays on your credit report for 10 years, which makes it difficult to obtain credit, buy a home, get life insurance or even get a job.

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Some get mortgage-principal relief from nationwide settlement

9/1/2012

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Some get mortgage-principal relief from nationwide settlement

9:32 p.m. EST, August 30, 2012|By Drew Harwell, Tampa Bay Times

The jackpot of a lifetime arrived last month inside a letter from GMAC Mortgage: an offer to make more than $200,000 in debt instantly disappear.

The lender, the letter said, would slash what the homeowner owed to ribbons, including shrinking her mortgage's $204,000 in remaining principal to about a third its size.

"When they first came across, I thought they were certainly a scam," said St. Petersburg foreclosure lawyer Matt Weidner. "The next thing I thought was, where's mine?"

Credit the National Mortgage Settlement, the $25 billion foreclosure-abuse agreement between state attorneys general across the country and five of the nation's largest banks.

In Florida, these offers have already shaved more than $115 million from residents' mortgage principals. Since March, more than 1,000 borrowers across the state have been informed that their principals would drop by an average of $114,000 each.

Investigated during the "robo-signing" scandal for pushing faulty documents to foreclose and repossess homes, the five banks were placed on the hook earlier this year for billions in direct homeowner relief by the largest consumer-finance settlement in U.S. history.

The settlement, which includes $8.4 billion in aid for Florida homeowners, is being paid out through modifications on monthly mortgage payments, home refinancings and cash incentives. But it's the prized principal reductions, the Holy Grail of mortgage relief, that is turning so many heads.

The settlement has already quashed $1.3 billion in mortgage principals nationwide, an independent monitor reported this week. Short sales, refinancing and other consumer relief have accounted for another $9 billion.

In Florida, the five banks — Ally Financial, Bank of America, Citigroup, J.P. Morgan Chase and Wells Fargo — have allowed for $1.7 billion in relief to more than 23,000 borrowers through short sales and forgiven debt. Banks have three years to meet the settlement's requirements, which mandate that at least $10 billion nationwide go toward principal reduction for homeowners who are underwater, delinquent or at risk of default.

Wednesday's report stated that nearly $500 million more in further relief for Florida homeowners is already in the works.

The principal-reduction offers are preapproved, but banks' requirements differ. Generally, homeowners must owe more on their mortgage than their property is worth, be at least a few months behind on their mortgage payments, and face a financial hardship or impending default.

The owners of a home in Tampa, for example, received a letter earlier this month from Bank of America offering to slash their $165,000 principal to $98,000, forgive all past debt, and reduce their monthly payments from $1,000 to $650.

Real estate agent Tony Delgado said the homeowners' new principal had been cut so low it was now less than the home's actual value. "If they were to turn around and sell that house right now, they could probably sell it for around $115,000," Delgado said. "So yeah, they're pretty happy."

That's a good start, said Weidner, the foreclosure lawyer, but banks are still getting off easy for billions of dollars of foreclosure abuse. "The reductions going back to homeowners right now are just a fraction of the fraudulent insurance claims [banks] submitted," Weidner said. "It would be like if you robbed a bank and walked away with $10,000, and you gave $10 back."

Wondering whether you might qualify for a refinancing or loan modification, including a reduction in your mortgage principal? Call your bank to ask if you would be eligible under the National Mortgage Settlement or one of the bank's other programs:

•Ally Financial/GMAC: 1-800-766-4622

•Bank of America: 1-877-488-7814

•Citigroup: 1-866-272-4749

•J.P. Morgan Chase: 1-866-372-6901

•Wells Fargo: 1-800-288-3212

http://articles.orlandosentinel.com/2012-08-30/business/os-tbt-mortgage-principal-reduction-20120830_1_principal-reduction-mortgage-relief-national-mortgage-settlement

REMINDER: THERE ARE SCAMS OUT THERE SO ONLY DEAL DIRECTLY WITH YOUR BANK

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6 Ways To Keep Aggressive Debt Collectors At Bay

5/8/2012

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6 Ways To Keep Aggressive Debt Collectors At Bay

April 30, 2012 |

Debt collectors are a lot like vultures. Once they sense that you're in trouble, they'll keep picking at you until there's nothing left. They shamelessly (and often illegally) harass consumers into paying their debt, ruining hundreds of innocent lives in the process. For consumers, debt is bad enough, but the unrelentingly aggressive and demeaning phone calls from company collectors or third-party agencies can make you feel like you've got a serious stalker. Anyone who's ever been in that position will tell you it's somewhere they never want to be again in their lives.

SEE: What You Need To Know About Bankruptcy

If you're in debt and the birds of prey are circling, there are a few things you can do to beat them off. You have rights as an American citizen - rights that debt collection agencies cannot infringe upon no matter how much money you owe. The next time the collectors come calling, use these techniques to keep them at bay.

Get Everything on Paper
A debt collector can't legally pursue you unless he or she gives you a written statement outlining your debt within five days of contacting you. You don't have to say anything to him or her over the phone until that letter arrives. If the letter doesn't arrive within five days, you could have grounds to sue him or her for harassment.

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Write a Cease and Desist Letter
In-house collection agents for banks and credit card companies are forthcoming about their identities. Third party collectors who buy your debt from your credit issuer are not. They'll try to keep their identities a secret, because they know that the Fair Debt Collection Act gives you the power to demand, in writing, that they stop calling you. Force him or her to give up his or her name and address. Once he or she does, write him or her multiple certified letters demanding that he or she cease calling you. It's important to make sure all your letters are certified, because otherwise the collectors will try to deny that they received the letters.

Know Your Rights
Never, ever believe anything a debt collector tells you. Multiple collection agencies have been slammed by the FTC recently for deceiving consumers into believing that they owed money when they really didn't. Since debtors' rights vary by state, it's up to you to do your research and keep yourself informed. A working knowledge of your rights is your best defense against a collection agency's lies.

SEE: Are You Living Too Close To The Edge?

Negotiate Your Debt Down
Debt collectors are aggressive about pursuing their money partly because they're desperate themselves. They need your debt if they're going to stay afloat in this economy, and that need makes many of them open to compromise. Don't accept any of their payment plan offers when they call. Instead, offer to pay 10% to 15% of what you owe. Tell them you can't afford any more, and stand firm if they don't accept. If you haggle with them every step of the way, they're likely to let you off for a fraction of your total debt. Just remember to keep the next rule in mind when making any agreement with your collection agency.

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Record Everything
As soon as your debt collector starts calling, record everything he or she says. When he or she calls, inform him or her that he or she is being monitored and start taping. When you make an agreement with him or her, get it in writing and keep the letter on file. Think of it as gathering evidence. If the collection agency ever crosses the line, you'll have a strong enough case to take the agency to court. Sometimes, even a small clerical error is enough to get your debt completely erased. You can only win the battle if you've got enough bullets.

Contact an Attorney
If a collection agency refuses to stop overstepping its bounds to contact you, then you should strongly consider contacting an attorney. If you've been recording evidence of after-hours calls and verbal harassment, you could be able to file a lawsuit. Who knows, you might even be able to clear your debts through a settlement.

SEE: Saving Your Home From Foreclosure

The Bottom Line
Debt collection agencies walk all over consumers because they think they can get away with it. Consumer inaction has led them to believe that they can infringe on a debtor’s rights through intimidation and deception. Don’t let yourself become another victim of illegal collection practices. If the vultures are after your debt, use these tips to shoot them down. The chances of getting some or all of your debt forgiven are much higher than you’d believe.

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Bank of America Starts Mortgage Reduction Effort

5/8/2012

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Bank of America Starts Mortgage Reduction Effort

By NATASHA SINGER | New York Times – 7 hours ago

RELATED QUOTES Symbol Price Change BAC 7.715 -0.24

Bank of America has started sending letters to thousands of homeowners in the United States, offering to forgive a portion of the principal balance on their mortgages by an average of $150,000 each.

The reduction for qualifying homeowners could amount to monthly savings of up to 35 percent on mortgage payments, Bank of America said in a news release on Monday evening.

The principal reduction offers from Bank of America Home Loans are the result of a $25 billion settlement agreement earlier this year with 49 state attorneys general as well as federal authorities who had been investigating allegations of abuses over the handling of foreclosures.

“To the extent principal reduction and other modification tools help us turn mortgages headed for possible foreclosure into long-term performing loans, it will be positive for homeowners, mortgage investors and communities,” Ron Sturzenegger, a legacy asset servicing executive, said in the statement.

The bank said it planned to contact more than 200,000 homeowners who could be candidates for the offers, sending letters to a majority of them by the third quarter of this year.

To be eligible for the principal reductions, however, homeowners will have to meet certain criteria, including: having a loan owned or serviced by Bank of America; owing more on the mortgage than their property is worth; and being at least 60 days behind on payments as of the end of January.

In the statement, the bank said it had started making such offers in March to a narrower group of homeowners — those who were already in the process of seeking mortgage modification. The bank estimated that the earlier wave of trial reduction offers to about 5,000 people could amount to more than $700 million in forgiven principal. But homeowners have to make at least three timely payments for the reductions to become permanent.

THANKS LEE

http://finance.yahoo.com/news/bank-america-starts-mortgage-reduction-100202589.html

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FHA extends waiver to help resell foreclosed homes

1/7/2012

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December 28, 2011 1:31 PM

FHA extends waiver to help resell foreclosed homes

By
Ilyce Glink

(MoneyWatch)

In response to high foreclosure rates and a continually sluggish housing market, the Federal Housing Administration (FHA) announced today they will extend the temporary waiver of FHA's anti-flipping regulations through 2012.

The waiver, which was first announced in 2010 and set to expire in December 2011, will permit buyers to use FHA-insured financing to purchase HUD-owned properties, bank-owned properties or properties resold through private sales. The goal is to help stabilize communities that have been devastated by the foreclosure crisis.

In a press release announcing the move, Carol Galante, acting FHA commissioner, said that the "extension is intended to accelerate the resale of foreclosed properties in neighborhoods struggling to overcome the possible effects of abandonment and blight."

"FHA remains a critical source of mortgage financing and stability and we must make every effort to promote recovery in ever responsible way we can," she added.

To protect consumers, the waiver contains strict conditions and guidelines to prevent what FHA calls "the predatory practice of property flipping, in which properties are quickly resold as inflated prices to unsuspecting borrowers."

Housing market predictions for 2012
FHA's financial condition worsened in October
Fewer homeowners underwater, but number is still high

According to today's release from the Department of Housing and Urban Development (HUD), the waiver is limited to sales that meet the following conditions:

-- All transactions must be arms-length, with no identity of interest between the buyer and seller or other parties participating in the sales transaction. In other words, buyers and sellers are acting of their own accord and have no relationship with one another.

-- In cases in which the sales price of the property is 20 percent or more above the seller's acquisition cost, the waiver will apply only if the lender meets specific conditions, and documents the justification for the increase in value.

-- The waiver is limited to forward mortgages, and does not apply to the Home Equity Conversion Mortgage (HECM) for purchase program.

The extension is effective through December 31, 2012, unless otherwise extended or withdrawn by FHA.

SOURCE LINK

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Freddie Mac offers a break to unemployed homeowners

1/7/2012

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Freddie Mac offers a break to unemployed homeowners

By
Ilyce Glink

(MoneyWatch)

Unemployed homeowners will be allowed to suspend or reduce mortgage payments for as long as a year under a new policy announced by mortgage finance firm Freddie Mac on Friday. The new rules take effect on Feb. 1.

Freddie Mac will give mortgage servicers the authority to provide six months of forbearance to unemployed borrowers without prior approval, and the agency can approve an additional six months of forbearance after that. Homeowners are still responsible for paying off their full mortgage plus interest after the forbearance period ends.

According to a Freddie Mac news release, unemployed borrowers can now avoid foreclosure by asking their lender to lower their payments for up to one year. The latest statistics suggest nearly 10 percent of delinquencies on Freddie Mac mortgages were tied to unemployment.

FHA extends waiver to help resell foreclosed homes
FHA's financial conditioned worsened in October
Housing market predictions for 2012

The Federal Housing Finance Agency (FHFA) called for the extension, in the hope it would keep more families in their homes. Freddie Mac previously allowed lenders to grant up to three months of forbearance with no payment, or six months at a reduced payment, without the firm's prior approval.

Longer forbearance times were restricted to events such as natural disasters, permanent disability or long-term medical emergencies, and still required prior approval.

"These expanded forbearance periods will provide families facing prolonged periods of unemployment with a greater measure of security by giving them more time to find new employment and resolve their delinquencies," Tracy Mooney, Senior Vice President of Single-Family Servicing and REO at Freddie Mac, wrote in a news release. "We believe this will put more families back on track to successful long-term homeownership."

Delinquent borrowers with Freddie Mac owned- or guaranteed-mortgages who are in an existing short-term forbearance plan can be evaluated for an extension under the new policy.

Borrowers interested in learning more about the forbearance program should contact their mortgage servicer. A list of phone numbers can be found at BankRate.com.

If you are unemployed and need financial help, contact your lender or the Hope for Homeowners hotline, 888-995-HOPE.

SOURCE LINK

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Loan Modification Scam Alerts

Some get mortgage-principal relief from nationwide settlement

6 Ways To Keep Aggressive Debt Collectors At Bay

Bank of America Starts Mortgage Reduction Effort

FHA extends waiver to help resell foreclosed homes

Freddie Mac offers a break to unemployed homeowners

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