Banks Balance Foreclosures With Loan Modifications
S truggling homeowners who are at risk of losing their home to foreclosure have virtually no option but to apply for a loan modification from the bank. This time consuming and frustrating process has helped some homeowners keep their investment, but has been nothing more than a wasted inquiry for the majority of applicants. This disparity has led many to ask where the disconnect lies. How can so many applicants not qualify? How eager are the banks to rescue these toiling homeowners? Paul Long asks, “Is it really more profitable for the lender to foreclose instead of help?”: “It’s questionable as to whether or not it’s ‘more profitable’ for the lender to allow the loan to foreclose. It might be more accurate to say it’s...
Mortgage Disclosure Improvement Act Starts Today
F urther legislation to create more transparency in lending goes into effect today. Named the Disclosure Improvement Act, and part of the Housing and Economic Recovery Act (HERA), the new rules mean the days of walk-in walk-out loans are gone. While the new legistlation will act as protection for borrowers, it also has the potential to slow down closing times by up to 30 days. David Hitchings posts an article writen by Al Hewitt explaining the new legislation: “Recent federal legislation can impact your closing date. When completing your purchase A=agreement, even if you are prepared to move forward and close quickly, a more conservative timeframe of at least 30-45 days from the time of the contract acceptance would be a more realistic expectation at this...
Loan Modification Scams on the Rise
A s interest rates on adjustable mortgages continue to increase, the number of homeowners finding themselves in a tight spot also rises. The equity that was supposed to insulate those homeowners from losing their home has been lost as home values decreased rapidly. Although the government, along with many companies and non-profit groups, have reached out to assist these troubled homeowners, there are still loan modification scammers who are willing to take advantage of the situation. Lessle Giacobbi advises homeowners to beware of loan modification fraud: “Many homeowners have been considering a loan modification. Here is some helpful information we recently ran across from the Department of Real Estate (DRE) and California Association of REALTORS®...
Attention New Homeowners
I f you are looking to buy a home, you could qualify for a $8,000 First-Time Home Buyer Tax Credit. The American Recovery and Reinvestment Act of 2009 authorizes a tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009. To see if you qualify, answer these simple questions below: 1. Are you planning to buy a home before Dec. 1, 2009? To qualify for the tax credit, you must purchase a home (close and receive title) on or after January 1, 2009 and before December 1, 2009. 2. Have you owned a home in the past three years that was used as your primary residence? To be eligible for this program, buyers cannot have owned a home for the past three years that they have used...