Category Archives: Mortgage Information

Mortgage Complaint Window is Now Open

Posted on December 11, 2011 | Leave a comment

Got a beef with your mortgage lender? Is your bank unresponsive when you complain that your escrow account is fouled up and making your monthly payments needlessly high?

Did your loan officer switch you into a more costly home loan than you were promised? Or worse yet, did your home loan servicer ignore you when you told him you’ve had an unexpected drop in income and needed a modification to avoid missing payments?

If any of these situations sound familiar, here’s a heads-up about the newest and least-publicized source of federal help: the Consumer Financial Protection Bureau’s home mortgage complaint and dispute resolution hotline. Never heard of it? That’s not surprising since it went live only Dec. 1 and the bureau hasn’t said much about it, preferring to ease into the potential snake pit of mortgage issues that American consumers have with their lenders rather than get overwhelmed.

The complaint hotline is accessible online at http://www.consumerfinance.gov and by toll-free phone between 8 a.m. and 8 p.m. Eastern at (855) 411-2372.

The 11 Most Bizarre Foreclosure Stories of 2011

Posted on December 6, 2011 | 1 comment

The housing collapse and subsequent foreclosure crisis has claimed the homes of millions of Americans. But that tragedy may only be matched by the absurdity of some of its tales.

As of February, lenders had foreclosed on 2.7 million homes out of the 42.2 million mortgages borrowers took out between 2004 and 2008, according to a recent report by the Center for Responsible Lending. Though many of the foreclosures have been routine, the sheer volume has resulted in some glaring errors and bizarre evictions.

One Florida couple was threatened with foreclosure for making a payment too early. In Texas, a man faced foreclosure on a home that was destroyed by Hurricane Ike years ago, while in Massachusetts, Bank of America threatened to seize a home if it didn’t receive an outstanding mortgage payment worth $0.00.

But there is some indication that these ridiculous stories are indicative of a systematic pattern of wrongdoing on the part of the lenders. Massachusetts Attorney General Martha Coakley announced a lawsuit, earlier this week, against five of the biggest mortgage lenders, JPMorgan Chase, Bank of America, Wells Fargo, Citbank and Ally Financial Inc., alleging the lenders used fraudulent paper work to foreclose on “hundreds if not thousands” of Massachusetts homes, BusinessWeek reports.

The issue of foreclosure fraud stretches beyond just one state. Nationwide, government agencies Fannie Mae and Freddie Mac as well as private lenders face allegations of improper foreclosures, which could have affected homeowners in states across the country. For example, in Las Vegas, the city often referred to as the “foreclosure capital of America,” a leading foreclosure attorney recently estimated that fraud may affect paperwork associated with nine out of 10 foreclosures in the city and surrounding suburbs, KLAS reports.

And while it can’t be foreseen whether these foreclosure mixups will continue, many foreclosures certainly will. “The nation is not even halfway through the foreclosure crisis,” according to the Center for Responsible Lending,

Read the stories at: http://www.huffingtonpost.com/2011/12/02/foreclosure-fails_n_1125773.html#s512531&title=CT_Family_Never

Disclaimer: For information and entertainment purposes only.

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Posted in Mortgage Information

Tagged foreclosure, home foreclosure

Simplifying Loan Paperwork for Buyers – How to Bargain Shop for Mortgages

Posted on December 1, 2011 | Leave a comment

Consumers likely are more comfortable comparison-shopping for microwaves than mortgages because the home-loan process can be cumbersome, with reams of paperwork, unfamiliar jargon, and of course, the rush to close and move to a new place.

The U.S. government is working to make the process easier. Since May, officials have been trying to simplify and combine two required forms that show would-be borrowers their final loan terms and costs before closing. The “Know Before You Owe” campaign, spurred by sweeping financial reforms in 2010, has produced two drafts of the merged documents that are still in testing phase.

Read entire article: http://www.signonsandiego.com/news/2011/nov/30/you-better-shop-around/

A piece of advice a very successful real estate investor once gave me: Don’t let the lender send you the documents to read and sign 2 hours before the notary arrives. A lot of brokers send the papers just hours before the notary arrives and it gives the borrower little time to read the documents and ask questions. People have reported that the loan officers told them the papers had to be signed today….etc… Well unless there is a very good reason the papers have to be signed immediately request the loan officer send you the papers at least 5 days before the notary will arrive. If you do not have the “savvy” to understand the documents you can have someone who is use to reading contracts: a friend, relative, lawyer, or a licensed real estate appraiser(www.socalappraisalserv.com) . Find someone who has no interest in the transaction to look these document over. You can also get a second opinion from a HUD-approved counselor at little or no charge. In San Diego you can call the Housing opportunities Collaborative at (800) 462-0503, someone will direct you to the right agency. 2 things to remember: never sign anything unless you understand it and this is the biggest investment you will ever make; ask for help.

Disclaimer: for information and education purposes only.

Category Archives: Mortgage Information

Mortgage Complaint Window is Now Open

The 11 Most Bizarre Foreclosure Stories of 2011

Simplifying Loan Paperwork for Buyers – How to Bargain Shop for Mortgages

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