2008 September

Indiana AG Files Court Injunction to Stop Deceptive Foreclosure Consultants

Posted on September 24th, 2008 in Indiana by Mary

In Indiana, the Attorney General has decided to file a court injunction against foreclosure rescue company National Foreclosure Consultants as response to the growing number of complaints that the state has received. It would seem that the company’s foreclosure consultants are engaged in activities that violate several state laws that aim to protect consumers.

Indiana AG Files Court Injunction to Stop Deceptive Foreclosure Consultants

These laws include the Deceptive Consumer Sales Act, Mortgage Rescue Protection Fraud Act and the Credit Services Organization Act.

Based on its investigation, the Office of the Attorney General discovered how a foreclosure consultant convinced a distressed homeowner to pay a certain amount in upfront fees to stop foreclosure immediately. After the homeowner agreed to do so, a contract was signed. The said contract did not contain statements which are required by Indiana law to protect consumer rights.

When the foreclosure proceeded, the troubled homeowner decided to terminate the contract and ask the foreclosure consultant for a refund considering that the latter was not able to fulfill the services promised. Unfortunately, the foreclosure consultant did not see this as a valid reason and refused to refund the upfront fee.

For the state, this is a clear violation of consumer rights. Aside from asking the court for an injunction, it also seeks penalties amounting to $5,500 per violation as well as refund of the upfront fee.

It is certainly disheartening to know that there are still many individuals who are taking advantage of these unfortunate homeowners. Nationwide, foreclosure – related scams are on the rise as the problems in the housing and credit industries deepen.

Government officials and housing advocates have repeatedly warned troubled borrowers to stay away from suspicious individuals, offering them quick and simple answers to their mortgage problems. But due to desperation and lack of knowledge, many homeowners still fall victim to these fraudulent activities.

Foreclosure Basics: The After Effects of a Short Sale

Posted on September 23rd, 2008 in Foreclosure by Shanon

With more and more homeowners facing foreclosure nationwide, the short sale transaction is increasingly becoming popular for those who can not refinance their existing mortgages and are having a hard time looking for a buyer who will agree to their asking price.

Although a short sale will allow a distressed homeowner to avoid foreclosure, there is still considerable damage on the credit. In order for you to determine if you can live with them, here are the things you should expect from a short sale.

Credit Score

For many experts, the losses you will incur in terms of credit points from a short sale transaction are almost the same as an actual foreclosure. You can actually lose as much as 300 points. This means that if you have a FICO score of 700, you will be left with just 400. In the United States, it is very important for you to have a high credit score as it is a testament to your paying credibility. Those with high credit scores usually enjoy lower interest rate when they take out a loan.

Credibility

When you choose a short sale transaction, it will come up in your credit report as “pre-foreclosure in redemption status”. Although it sounds better than a “foreclosure” entry, you will still have to live with the fact that it is still a negative entry that can damage your financial reputation.

Waiting Period

This is perhaps the only advantage that a short sale has over a foreclosure. Instead of waiting for as long as 6 years - typical for a foreclosure victim - before you are qualified to buy a home at an acceptable interest rate, a short sale will only mean two years of waiting.

You must also remember that some short sale transactions will require you to settle the difference between the proceeds of the sale and the loan amount, depending on the state you are living in. To be sure, check the short sale procedure being followed in your area.

Illinois Foreclosure Listings - Local Help Helps

Posted on September 17th, 2008 in Illinois by Johnny

Relief, that the housing bill signed by President Bush last week is to provide to close to 400,000 home owners facing foreclosures by getting their loans refinanced to loans of lower values, might be too late for many already in some stage of the foreclosure process.

The state of Illinois already has programs that are helping borrowers who are part of the Illinois Foreclosure Listings.

FHASecure, the program run by the Federal Housing Administration has seen around 15,000 home owners from Illinois refinancing through them. This program lets home owners with good credit, who are expecting their interest rates to rise to refinance their loans. Borrowers who have ended up missing on even one of their payments do not qualify. Last month, the Department of Housing and Urban Development issued a ruling, which would allow into the program, borrowers with bad credit too. Only lenders who have been approved by the government can pass FHA loans.

Homeowners Assistance Initiative which began in February is along the lines of FHASecure, set up by the state of Illinois with a pledge by 8 lenders to generate three hundred and ten million dollars in FHA re-finances. Since inception about twelve refinances have gone through or are about to very soon. About 12 others who approached for help had loans with a lender who was part of the 8 who were in the program, and the terms of the loans were modified making them comparatively affordable.

Five of the lenders in the program are based out of Chicago. They are Townstone Financial Inc., Professional Mortgage Inc., Chicago Bancorp, Perl Mortgage and Guaranteed Rate. The Alliance Credit Union in Rockford, the National Bank of Commerce, 1st Advantage Mortgage LLC and Berkeley make up the remainder of the eight.

The Neighborhood Assistance Corp. of America, a non profit organization, works with borrowers and lenders to set up revised payment plans or modifying terms of the loans. Their Chicago office conducts workshops twice a month, attracting close to six hundred local homeowners.
For working on new loan terms, attending the work shops is a must.

Start your search for Illinois Foreclosure Listings by Top Cities:

Ohio Foreclosure Listings - Awaited Help Finally Arriving

Posted on September 10th, 2008 in Ohio by Alana

The housing bill passed by President Bush is viewed in different light by different sets of people. Critics say that with the number of loans that were passed by either negligent or greedy lenders in the past, the reversal of the foreclosure crisis will need more than what the bill has to offer. Supporters of the bill though view it as a blessing, considering the disbursement of funds and new programs that the bill encompasses. With the bill in place, Ohio foreclosure listings could very well see a decrease.

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