By: Dennis Norman
There just seems to be no end in site for the sickening numbers of foreclosures we are seeing take place in the housing market. While, from an investors standpoint, it seems like a “positive” in that foreclosures often present a good opportunity for an investor to purchase property at below-market prices however it’s really a double-edged sword though as foreclosures drag down property values, which hurts an investor. Read more…
Dennis Norman
By: Dennis Norman
Back in April I first did a post on avoiding foreclosure and loan modifcation scams but record numbers of homeowners facing foreclosures and foreclosure scams on the rise I thought it was worth talking about again.
The Federal Reserve , in a public service announcement, published “5 Tips for Avoiding Foreclosure Scams”:
- Work only with a nonprofit, HUD-approved counselor
- Be sure the counseling agrency is on the Department of Housing and Urban Development’s list of approved agencies. HUD’s website has a searchable list of approved housing counseling agencies. If you prefer you can call 877-483-1515 to check the HUD list.
- Don’t pay an arm and a leg
- You should NOT have to pay hundreds–or thousands– of dollars. Most HUD-approved housing counselors provide no-cost counseling services and many more provide low-cost counseling. Do not agree to work with a counselor who collects a fee BEFORE providing you with any services or who accepts payment only by cashier’s check or wire transfer.
- Be wary of “guarantees”
- A reputable counselor will not guarantee to stop the foreclosure process, no matter what your circumstances. Working with a legitimate counselor can certainly increase your chances of keeping your home–but be wary of people who promise a sure thing. Again, get the details of your transaction, along with any promises, in writing first.
- Know what you are signing-and be sure YOU sign it
- Don’t let a counselor pressure you to sign paperwork you haven’t had a chance to read through carefully or that you don’t understand. Don’t sign any blank forms or let “the counselor” fill out forms for you. Be sure to talk with an attorney before signing anything that transfers the title of your home to another party.
- If it sounds goo good to be true, it probably is.
- If you feel you may be the target or victim of foreclosure fraud, trust your instincts and seek help. For tips on spotting scam artists, visit the Federal Trade Commission’s webpage on foreclosure rescue scams. Report suspicious schemes to your state and local consumer protection agencies, which you can find on the Federal Citizen Information Center’s Consumer Action Website.
Dennis Norman
By: Dennis Norman
Over the past few months many people renting or leasing a home have had a rude awakening when they suddenly are told to vacate their home as a result of the property owner losing the home in foreclosure. Many times tenants are unaware of the owners plight prior to this so it leaves the tenant in a very difficult, and many times unfair, position.
There is some help and protection now though. Congress recently addressed this problem as part of the “Helping Families Save Their Homes Act of 2009″ which went into effect as law on May 20, 2009, provides for the following:
Read more…
First off, my usual disclaimer…I am not an attorney and this is not intended to be legal advice or a legal opinion.
Dennis Norman
Now that we have that out of the way lets talk about options that may be available to you if you are one of the 20% of homeowners that a recent study says owes more on their mortgage than their homes are worth.
If you do find yourself in this situation fortunately today there are some options available worth considering:
- See if you qualify for the Making Home Affordable Loan Modification Plan. This program is for those homeowners that are struggling to make their payments, or may have even missed a payment or two, but could make their payments if the amount was reduced. To complete a short questionnaire and find out if you may be eligible for this click here.
- If you have an FHA loan you may wish to contact a HUD approved counseling agency to explore what options may be available to you.
- For an extensive list of resources that are available please see my post “Help for homeowners facing foreclosure“. Read more…
By: Dennis Norman
According to the Metropolitan Foreclosure Market Report for first quarter 2009 issued by RealtyTrac(R) foreclosures for the quarter are up almost 24% from a year ago nationwide.
The twenty six metro areas with the highest rates of foreclosure are all within only four states: California, Florida, Nevada and Arizona. Not surprisingly these states are also the ones that saw some of the highest price increases during the boom and with some of the highest ratios of median home cost to median income. Read more…
By: Dennis Norman
Today the The Office of the Comptroller of the Currency issued a Consumer Advisory. The Advisory contains consumer tips for avoiding mortgage modification scams and foreclosure rescue scams.
It is a shame that while a consumer is dealing with financial difficulties and facing losing their home in foreclosure that they have to also worry about being taken advantage of by an unscrupulous business or individual. Unfortunately the reality is that this does happen and is happening with such frequency the OCC issued this advisory
The advisory states; “Scams that promise to “rescue” you from foreclosure are popping up at an alarming rate nationwide, and you need to protect yourself and your home. If you’re falling behind on your mortgage, others may know it too – including con artists and scam artists. They know that people in this situations are vulnerable and often desperate.” Read more…
By: Dennis Norman
Dennis Norman
Over the past few days I have heard stories of people that have lost their homes through foreclosure and then, as if that was not enough, were told by their tax preparer that they owed thousands of dollars in taxes for “forgiven debt”.
As bad as this sounds it is reality…or at least was reality. Let me give a quick example….You bought a home for $150,000 back in 2000….during the boom it’s value shot up to $300,000…..you need money for the kids college so you refinanced and borrowed $240,000 on your home, or $90,000 more than you actually had “in” it. Unforutnately a few months later you lose your job, can’t make the payments and the lender forecloses on your house. At this time you would normally be olbigated to pay income tax on the $90,000 you borrowed in excess of your cost. Read more…
By: Dennis Norman
Last Friday the Mortgage Bankers Association announced that almost 7% of the homeowners in America with a mortgage were behind in payments on their loan which is a record high. The number of homeowners currently somewhere in the foreclosure process is also at a record high according to the Mortgage Bankers Association quarterly delinquency survey
The number of foreclosures not only hurt the homeowners losing their homes but also hurts the value of homes by continuing to add more housing inventory to a Read more…
By: Dennis Norman
Today many people that never thought they would find themselves in this plight are now facing the potential of losing their homes to foreclosure. Aggressive lenders, creative loans and a super charged real estate market for about 5 years until sometime in 2006 all helped put many people in a difficult position with regard to their home mortgage.
Read more…
