Bank of America Corp. is near a settlement to pay $8.5 billion to mortgage investors who claim the bank sold them fraudulent mortgage securities, The Wall Street Journal reports.
The mortgage securities in question, originally valued at $105 billion, contained home mortgages that faltered after the financial and housing crisis. Investors claim they were misled by the mortgage securities packages, arguing the securities were highly rated despite being full of loans that had borrowers with questionable credit.
The $8.5 billion payout would be the largest settlement by a financial services firm.
Wednesday, June 29, 2011
Saturday, June 25, 2011
How Long Is the Wait to Buy a House After Foreclosure?
Fannie Mae and Freddie Mac have a 3-year waiting period following a foreclosure, and a 2-year wait following a short sale, deed in lieu, or discharge or dismissal of bankruptcy. However, if you can justify that the circumstance for the foreclosure or bankruptcy occurred because of an illness or job loss, or other “extenuating circumstance”, that may help reduce the wait before you can buy a home again. But with no such extenuating circumstances, you may have to wait longer, even up to seven years following a foreclosure or four years after bankruptcy.
For loans insured by the Federal Housing Administration (FHA), borrowers with good credit afterwards also will, in general, have to wait 3 years after a foreclosure and 2 years after a bankruptcy is discharged.
Following a short sale, borrowers will have to wait 3 years to secure another FHA loan, however, there are plenty of exceptions. Borrowers will have to wait 3 years if they were in default at the time of the short sale and had no extenuating circumstances. However, if the borrowers were on time with all their payments a year prior to the short sale, they may have no wait at all and might even qualify for an FHA loan immediately.
“The key is to avoid the foreclosure,” Andrew Wilson, a spokesman for Fannie Mae. Nevertheless it smart thing to do is to contact a credit repair specialist and see if they can remove your short sale or foreclosure off your credit file. Creditors who report negative items on your file have to sollow specific procedures. With the overlaod, amount of foreclosures, short sales they have to deal with, they do not follow the procedures, so either a lawyer or credit specialists will be able to find out if the banks have not followed the procedures when filing foreclosure or a short sale against you, and if they have not followed the right step, a credit specialist will be able to take off your foreclosure or short sale.
Do not hesitate to contact us and we will let you know rapidly if you have recourse.
CALL 1-877-APPLYFREE
For loans insured by the Federal Housing Administration (FHA), borrowers with good credit afterwards also will, in general, have to wait 3 years after a foreclosure and 2 years after a bankruptcy is discharged.
Following a short sale, borrowers will have to wait 3 years to secure another FHA loan, however, there are plenty of exceptions. Borrowers will have to wait 3 years if they were in default at the time of the short sale and had no extenuating circumstances. However, if the borrowers were on time with all their payments a year prior to the short sale, they may have no wait at all and might even qualify for an FHA loan immediately.
“The key is to avoid the foreclosure,” Andrew Wilson, a spokesman for Fannie Mae. Nevertheless it smart thing to do is to contact a credit repair specialist and see if they can remove your short sale or foreclosure off your credit file. Creditors who report negative items on your file have to sollow specific procedures. With the overlaod, amount of foreclosures, short sales they have to deal with, they do not follow the procedures, so either a lawyer or credit specialists will be able to find out if the banks have not followed the procedures when filing foreclosure or a short sale against you, and if they have not followed the right step, a credit specialist will be able to take off your foreclosure or short sale.
Do not hesitate to contact us and we will let you know rapidly if you have recourse.
CALL 1-877-APPLYFREE
Monday, June 20, 2011
Beware Scam Cheats Borrowers out of Mortgage Payments
Warn your home owner clients to beware of a scam growing in many parts the country that tries to trick home owners out of a month or two of their mortgage payments.
The Chicago Tribune referred to it as the “handoff rip-off” scheme, in which scammers send letters to borrowers informing them that a new company has assumed the management of their loans and to start making mortgage payments to the new company.
Many home owners aren’t familiar with the rules when it comes to the transfer of mortgage-servicing so they follow the letter's directions in sending their payments to the new company and could possibly lose thousands in mortgage payments.
Inform your home owner clients of mortgage-servicing transfer rules so they won’t be duped. For example, the law requires a company that provides a mortgage on behalf of the loan’s owner to send a "goodbye" letter notifying them that at a specific date their payment should be sent to a new company. Then, a week or so later, the home owner is legally to receive a second letter from the new servicer that provides mortgage payment information (their principal, interest, and escrow). Both letters should include the home owner's loan number, the Tribune article explains.
When in doubt, contact your original servicer to find out if the letter received is legit or fraud.
The scheme "works for maybe two months" because that is usually how long it takes for borrowers to realize they've been tricked, says Becky Walzak, a loan-quality assurance expert. "But if the bad guys are any good, they've taken in thousands of payments from thousands of people. They cash them, and they move on to the next batch of borrowers."
The Chicago Tribune referred to it as the “handoff rip-off” scheme, in which scammers send letters to borrowers informing them that a new company has assumed the management of their loans and to start making mortgage payments to the new company.
Many home owners aren’t familiar with the rules when it comes to the transfer of mortgage-servicing so they follow the letter's directions in sending their payments to the new company and could possibly lose thousands in mortgage payments.
Inform your home owner clients of mortgage-servicing transfer rules so they won’t be duped. For example, the law requires a company that provides a mortgage on behalf of the loan’s owner to send a "goodbye" letter notifying them that at a specific date their payment should be sent to a new company. Then, a week or so later, the home owner is legally to receive a second letter from the new servicer that provides mortgage payment information (their principal, interest, and escrow). Both letters should include the home owner's loan number, the Tribune article explains.
When in doubt, contact your original servicer to find out if the letter received is legit or fraud.
The scheme "works for maybe two months" because that is usually how long it takes for borrowers to realize they've been tricked, says Becky Walzak, a loan-quality assurance expert. "But if the bad guys are any good, they've taken in thousands of payments from thousands of people. They cash them, and they move on to the next batch of borrowers."
Monday, June 13, 2011
Joke: The Helicopter Ride
Bob and his wife Sandy went to the state fair every year,
And every year Bob would say,
'Edna, I'd like to ride in that helicopter'
Sandy always replied,
'I know Bob, but that helicopter ride is fifty bucks,
And fifty bucks is fifty bucks'
One year Bob and Sandy went to the fair,
and Bob said,
'Sandy, I'm 65 years old.
If I don't ride that helicopter, I might never get another chance'
To this, Sandy replied,
"Bob that helicopter ride is fifty bucks, and fifty bucks is fifty bucks'
The pilot overheard the couple and said,
'Folks I'll make you a deal. I'll take the both of you for a ride.
If you can stay quiet for the entire ride
and don't say a word I won't charge you a penny!
But if you say one word it's fifty dollars.'
Bob and Sandy agreed and up they went.
The pilot did all kinds of fancy maneuvers, but not a word was heard..
He did his daredevil tricks over and over again,
But still not a word...
When they landed, the pilot turned to Bob and said,
'By golly, I did everything I could to get you to yell out, but you didn't.
I'm impressed!'
Bob replied,
'Well, to tell you the truth,
I almost said something when Sandy fell out,
But you know,
"Fifty bucks is fifty bucks!'
And every year Bob would say,
'Edna, I'd like to ride in that helicopter'
Sandy always replied,
'I know Bob, but that helicopter ride is fifty bucks,
And fifty bucks is fifty bucks'
One year Bob and Sandy went to the fair,
and Bob said,
'Sandy, I'm 65 years old.
If I don't ride that helicopter, I might never get another chance'
To this, Sandy replied,
"Bob that helicopter ride is fifty bucks, and fifty bucks is fifty bucks'
The pilot overheard the couple and said,
'Folks I'll make you a deal. I'll take the both of you for a ride.
If you can stay quiet for the entire ride
and don't say a word I won't charge you a penny!
But if you say one word it's fifty dollars.'
Bob and Sandy agreed and up they went.
The pilot did all kinds of fancy maneuvers, but not a word was heard..
He did his daredevil tricks over and over again,
But still not a word...
When they landed, the pilot turned to Bob and said,
'By golly, I did everything I could to get you to yell out, but you didn't.
I'm impressed!'
Bob replied,
'Well, to tell you the truth,
I almost said something when Sandy fell out,
But you know,
"Fifty bucks is fifty bucks!'
Friday, June 10, 2011
Joke of The Week
Recently a rather high profile politician from a large western State who was foreign born misunderstood his wife when he said to her that their housekeeper wanted a raise". His wife, also nationally known in her own right said: "Screw her". It appears that there was some sort of misunderstanding as to what she meant by that.
Beware Short Sale Scams
Banks and distressed home sellers stand to lose more than $375 million this year from a short sale scam that has sellers and banks agreeing to sell homes at very undervalued prices, according to a new study by CoreLogic.
In discovering the short sale fraud scam, CoreLogic analyzed over 400,000 nationwide short-sale transactions in the last two years.
Here’s how the scam often works: Borrowers who are underwater or in financial distress are contacted, often by investors and sales people, then persuaded to sell the property in a short sale and at a low price. Then the banks accept the lowball offer, and the investors resell the house to legitimate buyers at a higher price and for a hefty profit.
65% of short sales resold within 6 months that net profits of 40% or higher were flagged “suspicious,” which means there is a high likelihood that the lender accepted a low ball offer, according to the CoreLogic study. These transactions often go undetected by banks.
In discovering the short sale fraud scam, CoreLogic analyzed over 400,000 nationwide short-sale transactions in the last two years.
Here’s how the scam often works: Borrowers who are underwater or in financial distress are contacted, often by investors and sales people, then persuaded to sell the property in a short sale and at a low price. Then the banks accept the lowball offer, and the investors resell the house to legitimate buyers at a higher price and for a hefty profit.
65% of short sales resold within 6 months that net profits of 40% or higher were flagged “suspicious,” which means there is a high likelihood that the lender accepted a low ball offer, according to the CoreLogic study. These transactions often go undetected by banks.
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