Avoiding Foreclosure

Foreclosure occurs when you fall behind on your mortgage payments. Basically, it means that your lender has the right to take your home. Sometimes, certain circumstances occur that can make it difficult – or impossible – to make mortgage payments. There are alternatives to this so that you can keep your home and avoid foreclosure.

Don’t let the possibility of foreclosure scare you. Contact a lender in your area today for mortgage information.

If you are facing the possibility of foreclosure, keep these things in mind:

• Contact your lender and explain the situation
• Do not abandon your home
• Beware of scams
• Don’t sign things you do not understand
• Explore your alternatives

You may get calls from groups claiming to be counseling agencies that want to help you, when in fact, they really don’t and are just out to take advantage of your bad situation. Another common scam is equity skimming, which still may cause you to foreclose in the end.

You have a few different alternatives to consider. If your loan is between 4 and 12 months delinquent but you are able to afford mortgage payments again, you can qualify for a partial claim. With Special Forbearance, a repayment plan may be arranged. To refinance your debt and make payments smaller, mortgage modification would be a great choice. If things are a little more serious, you can consider a pre-foreclosure sale or a deed-in-lieu of foreclosure. Even though they are last resorts, they are still better than regular foreclosure.

First Time Home Buyers

You have been renting up until now and you are finally making the decision to purchase a home. Congratulations – this will be one of the smartest moves you have ever made. It may seem a little scary, because it is a bold decision, and with every bold, big decision, risks are involved. The best things in life come with risks, so stop being scared and nervous, and get ready to be excited!

Are you ready to buy your first home? Contact a lawyer in your area today.

There are plenty of opportunities and types of loans out there for those just starting off and that have limited funds. These types of loans can help you get a good start in the home buying world, and in the end, you will find out your mortgage payment is practically the same as your rent.

First Time Home Buyer Programs Can Offer The Following:

• Little or no down payment requirements
• Limits on certain fees that lenders charge
• Deferring of payments
• Lowering or completely eliminating interest costs
• Offers for other types of grants and loans

First, you need to establish what exactly you can afford so you don’t get in over your head. Once you establish how much your monthly payments can be, you can figure out the maximum amount you can afford to spend on a home and then find a lender. There are plenty of first time home buyer programs that lenders can offer you. Some good options for first time home buyers include FHA loans, 100% mortgages, and VA loans for veterans. There are also various other types of special programs that can be offered to you depending on what state you reside in.

Flipping Real Estate

Perhaps you an interest, or are already involved in flipping real estate.  Regardless of your experience level, consulting with a Real Estate Lawyer  will save you from potential setbacks.

The term Flipping Real Estate refers to the business practice of acquiring and liquidating the same piece of property within the shortest possible time frame. The actual time frame could be from 3 hours up to sixteen months or longer.  The precise time frame would be dictated by your individual investment objectives combined with current market conditions.

Extreme changes have taken place with the past twelve months governing the financial and legislative acceptance of flipping real estate.

When done properly (legally) this particular form of real estate investing can be very rewarding.  As with many other investments with the potential of generating substantial profits, the practice of flipping real estate has attracted to its ranks unscrupulous operators.  The actions of a few forced ethical entrepreneurs to reassess how they conduct business.

Major Concerns:
• Have you established a practices procedure
• Are you in compliance with both federal and state regulations
• What is the nature of your relationship to other parties involved
• Have you violated any laws in obtaining financing for acquisitions
• Is there any type of arms length transaction between you and your buyer
• Have all other parties to the transaction abided by all applicable laws or are you guilty by association

A real estate business can still be a very profitable venture, with proper planning and strict compliance.
The numerous abuses have sparked a call for reform in the financial community, supported by strict legislation within the legal community.  Today a real estate investor must first and for most design a plan of action with a Real estate Lawyer.  Any deviation of the law, and you could find yourself liable for the actions of your team members.  The infractions could and most likely would amount to a combination of criminal and civil charges.
Extreme changes have taken place within the past twelve months governing the financial and legislative acceptance of flipping real estate

FHA Loans

An FHA loan is a home loan that was established by the government in 1934. It is a great option for first time home buyers or those who do not have much to put down on a home, as an FHA loan can allow you to purchase the home with as little as 3% down, or even no money down in some cases.

Additional benefits of an FHA loan:

• Lower interest rate
• Does not usually require good credit
• Makes it possible to obtain a mortgage even if bankruptcy was filed in the past
• Allows individuals the opportunity to purchase their first home

FHA loans are available to you with an adjustable rate or a fixed rate, just like other mortgages. The choice to choose an adjustable rate or a fixed rate is dependent on you and your situation, as no one choice is “better” than the other. A good way to lower interest rates even more is by paying for “points”. Points are paid to the lender and the more you pay, the lower your interest rate will be.

Deciding between an FHA loan and all the other loans out there can be tough. While an FHA loan is a good option, it may not be the choice for you. For example, with an FHA loan, you can only have one at a time. This is not a good choice for those wishing to purchase multiple properties for investment purposes. On the other hand, this may not even be an issue to you at all – therefore making it a good, possible choice.

If you need go real estate legal advice click here

Applying For Mortgages

So, you’ve made the smart decision of purchasing a home or commercial property. Whether you plan on applying online, over the phone, or just meeting with the lender in the person, it is always good to know what to expect during the process so that you are better prepared.

Make sure you bring the following with you when applying for a mortgage:

• Checking Account Statements
• Gross Income Information
• Pay Stubs
• W-2 Forms
• Any Other Additional Income Information
• Asset Information
• Credit Card Bills
• Social Security Number

Normally, when applying for a mortgage, lenders will charge an application fee, but this is not always so. You will also usually have to pay for an appraisal of the property. These fees are not upfront and are paid when things are becoming more finalized when the contract to purchase the business or home is drawn up.

When you are applying for a mortgage, also make sure you know the exact amount you are seeking to borrow, and the exact amount you are planning on using for a down payment. With all the different loans and options available, it is good to have something in mind before you even contact a lender, but a lender can assist you in making your decision as well. Having all of these things ready and being prepared will only help the application process go that much smoothly and quickly.

Real estate Agent and Broker Roles

Are you involved in a real estate transaction and would like to fully understand the Real Estate Agent ans Broker roles?  Frequently, the first person you typically consult with about buying a home is a real estate agent or broker.  Although a real estate broker may provide helpful advice on many aspects of home buying, they may not represent or serve the best interest of the buyer.

The Real estate Agent and Broker’ roles are determined by the fiduciary relationship and contractual obligation that are established in advance.

The most common practice is for the seller to hire the real estate broker to list and sell the home.  The terms are negotiated, thereby defining the real estate agent and broker’ role and responsibility.  At this point the agent is clearly representing the “seller” and not the buyer.

As a “Buyer”, you should retain separate representation to protect your best interest.  In some states the real estate agent my represent both parties to the transaction, although this may in some minds create a conflict of interest.  By having a Real Estate lawyer represent you, the following key points of negotiations have a far better chance of working out in your favor.

Key Points:

Purchase Contract:  The purchase contract sets all of guidelines that must be met successfully complete the transaction

Price:  Have you been presented with a fair price? No one want to over-pay if it can be avoided.  Remember if the real estate agent or broker represents the “Seller” in any fashion, they are not allowed to make any disclosures that may be to the detriment of the “seller”.

Closing Cost Concessions:  As a “Buyer” certain concessions may be permissible by your prospective mortgage lender.  These concessions need to be negoisted and included within the body of the purchase contract.

Third party Provider:  Sometimes the real estate broker or “Seller” may try to influence which mortgage or Title Company should be used.  You are not required to accept any recommendations, and should compare the cost and services offered by other providers

By retaining a real Estate lawyer to handle all of the many details required to successfully purchase a home, you will be able to have the peace of mind, knowing the single largest investment that you may ever make, has the best opportunity to perhaps be one of the best investments you could have made

Understanding Real Estate Statement Procedures Act (RESPA) Law

 RESPA Law, what is that?  RESPA is the acronym for “ Real Estate Settlement Procedures Act”.  You are probably thinking , I have heard that before, but how does it affect me?

The purpose of RESPA Law is to ensure enforcement of state and federal lending guidelines and curtail predatory lending practices.

Contacting a lawyer is your best bet if you think that a lender may be violating any RESPA Law.

Of all of the safeguards in place to ensure homeowners receive fair and equitable service, along with full and complete disclosure pertaining to each and every detail of the mortgage process, RESPA is by far the most comprehensive.

RESPA centers on consumer protections and prohibited practices.

· RESPA requires that borrowers receive disclosures at various times.  Some disclosures spell out the costs associated with the settlement, outline lender servicing and escrow account practices and describe business relationships between settlement service providers.

· RESPA prohibits fee splitting and receiving unearned fees for services not actually performed.  RESPA prohibits a person from giving or accepting anything of value for referrals of settlement service business.

· RESPA also prohibits certain practices that increase the cost of settlement services.  Prohibits lenders or home sellers from requiring home buyer s to purchase title insurance from a particular company, either directly or indirectly, as a condition of sale.  Prohibits lenders from requiring borrowers to purchase title insurance from a particular company for a refinance .

Borrowers may sue lender or sellers that violate these provisions for an amount equal to three times all charges made for the title insurance, in addition to receiving additional rewards for other damages, court cost and legal fees.

When borrowers apply for a mortgage loan, mortgage brokers and/or lenders must give the borrowers:

A Special Information Booklet, which contains consumer information regarding various real estte settlement services.  If a lender requires the borrower to use a particular settlement provider, then the lender must disclose this requirement on the GFE.

Disclosures before settlement/closing occurs

The HUD-1 Settlement Statement is a standard form that clearly shows all charges imposed on borrowers and sellers in connection with the settlement.  RESPA allows the borrower to request to see the HUD-1 Settlement Statement shows the actual settlement costs of the loan transaction.

The above are only examples of provisions enforced through RESPA.  Any violation of RESPA Law would entitle the borrower to financial compensation.  Do not wait until you are suffering the consequences of being mistreated, deceived or taken advantage of in any way.  Seek the advice of a Real Estate lawyer today.
The purpose of RESPA law is to ensure enforcement of state and federal lending guidelines and curtail predatory lending practices.

Real Estate Resources:

http://www.hud.gov/foreclosure/

http://www.fanniemae.com/index.jhtml

http://www.freddiemac.com/

http://www.irs.gov/newsroom/article/0,,id=174034,00.html

http://www.federalreserve.gov/pubs/foreclosure/default.htm

Predatory Lending Practice

“We are facing, by all accounts, a tsunami of defaults and foreclosures” – Carolyn Maloney, New York Democratic Representative.

Do you feel that you have been taken advantage of by a mortgage lender involved in a predatory lending practice?  Have you been pressured into accepting mortgage terms, or for that matter, have you been cornered into applying for a mortgage against your best interest or wishes?

If you answered yes to any of the above questions then you are a victim of predatory lending.
A Predatory Lending Practice is any unfair and abusive practice whereby a mortgage broker or a mortgage lender uses any type of information about the borrower to the borrower’s disadvantage, and then proceeds to convince the borrower to accept loan programs and or loan terms that were not in the best interest of the borrower.  This practice also includes imposing higher interest rates, cost and fees, along with pre-payment penalties when more favorable terms could have been offered.

Immediately contact a Real Estate Lawyer if you suspect being a victim of any predatory lending practice.

In response to the escalating trend in foreclosures Shelia Blair, Chairman of the Federal Deposit Insurance Corporation, recently expressed to the House of Representatives, “The time has come for national anti-predatory lending standards applicable to all mortgage lenders.”  Furthermore, Blair indicated that regulations be imposed upon lenders to determine a borrower’s ability to repay a loan at its true cost, rather than on artificially low rates offered through aggressive advertising campaigns.  Other areas needing immediate improvement include: Loan Flipping, Pre-Payment Penalties, Escrow of Taxes, and Fiduciary Obligation of Mortgage Originators.

Common Predatory Lending Practice Violations includes:

• Foreclosure:  Homeowners should not be misleading about their rights and remedies when facing  foreclosure.
• Loan Flipping:  Mortgage companies should not be engaged in the practice of persuading homeowners to refinance their homes with little or no apparent significant improvement of the homeowner’s situation.
• Red Lining:  This involves imposing higher interest rates and or steeper prepayment penalties in areas of a city considered to be less desirable.
• Adjustable Rate Mortgages:  Some lenders have steered homeowners into adjustable rate mortgages with low teaser rates without considering the borrowers capacity to reasonably meet future increases in the monthly payments.

Failure to Disclose:  Each and lender has the legal responsibility to fully disclose and completely explain each and every aspect of the mortgage for which you are applying.  Under no circumstance is it permissible for any lender not to explore all possible options and reveal the potential short coming of any mortgage being offered.  It is also the lender’s responsibility to ensure that the borrower fully understands, and fully agrees with the terms being offered.

• Were you asked to leave signature lines blank?
• Was any of the information altered without your approval?
• Did you receive copies of all required disclosures?
• Did you incur and unexpected cost at settlement that were not explained and agreed upon prior to settlement?
• After settlement were you surprised to find that the monthly payments higher than you anticipated based on initial disclosures?
• Were you required to buy credit insurance?

Housing Discrimination:  If you feel your race, creed, religion, national origin, marital status, health status, sex or sexual orientation may have impacted your mortgage terms, your rights may have been violated.

Lenders are not allowed to take advantage of a homeowner’s circumstances to make excessive profits on a loan application.  The law also precludes lenders from exploiting to their own advantage.  It stems from the consumer’s lack of knowledge on various mortgage programs, offering guidelines.  Furthermore, the law explicitly forbids any deviation of a particular or specific mortgage offered from one borrower to another based upon, race, creed , religion, national origin, marital status, sex or sexual orientation, or geographic location.  You do not have to settle for less than what you are entitled to.  Do not allow any lender to take advantage of you or your situation.

Real Estate Resources:

http://www.hud.gov/foreclosure/

http://www.fanniemae.com/index.jhtml

http://www.freddiemac.com/

http://www.irs.gov/newsroom/article/0,,id=174034,00.html

http://www.federalreserve.gov/pubs/foreclosure/default.htm

Buying and Selling Foreclosures

Some people think that will keep waiting on buying a home so that they can purchase a foreclosure. A foreclosure is a house that is being sold by the government or bank for a very cheap price because the owner could not afford their mortgage payments anymore. Waiting to find a good foreclosure is not always the best idea in the world.

Remember to contact a real estate law firm is you are ready to buy or sell foreclosures or any other type of property.

After all, if it seems too good to be true, it probably is. You are much better off just buying a home through a realty professional, so that you will know you have something to count on and that you will have a new home to live in soon. Now, turning a foreclosure into an investment is a different story.

Disadvantages of Buying a Foreclosure as Opposed to Buying a Home through a Real Estate Professional:

• Finding a foreclosure can be very difficult, especially one you like
• Overall frustrating process
• You may have to deal with other liens that are attached to the property
• Involves a lot of hard work on your part

If one, just so happens to come along and you can afford it, or you already have purchased one, why not turn it into an investment? Although laws vary, you may have to be living in your foreclosure purchase for a certain amount of the time first. If this sounds like your situation, contact one of our realtors right now, re-sell that foreclosure, and make yourself a great profit. In addition, if you still have your heart set on buying a foreclosure, there are some real estate professionals that are registered with HUD and that market foreclosures.

Buying and Selling Foreclosures
Some people think that will keep waiting on buying a home so that they can purchase a foreclosure. A foreclosure is a house that is being sold by the government or bank for a very cheap price because the owner could not afford their mortgage payments anymore. Waiting to find a good foreclosure is not always the best idea in the world.

Remember to contact a professional is you are ready to buy or sell foreclosures or any other type of property.

After all, if it seems too good to be true, it probably is. You are much better off just buying a home through a realty professional, so that you will know you have something to count on and that you will have a new home to live in soon. Now, turning a foreclosure into an investment is a different story.

Disadvantages of Buying a Foreclosure as Opposed to Buying a Home through a Real Estate Professional:

• Finding a foreclosure can be very difficult, especially one you like
• Overall frustrating process
• You may have to deal with other liens that are attached to the property
• Involves a lot of hard work on your part

If one, just so happens to come along and you can afford it, or you already have purchased one, why not turn it into an investment? Although laws vary, you may have to be living in your foreclosure purchase for a certain amount of the time first. If this sounds like your situation, contact one of our realtors right now, re-sell that foreclosure, and make yourself a great profit. In addition, if you still have your heart set on buying a foreclosure, there are some real estate professionals that are registered with HUD and that market foreclosures.

Real Estate Resources:

http://www.hud.gov/foreclosure/

http://www.fanniemae.com/index.jhtml

http://www.freddiemac.com/

http://www.irs.gov/newsroom/article/0,,id=174034,00.html

http://www.federalreserve.gov/pubs/foreclosure/default.htm

Mortgage Fraud Lending

Are you concerned that you may have been a victim of mortgage fraud lending?

Mortgage fraud is defined as a “knowing misrepresentation of the truth or concealment of a material fact to induce another to act to his or her detriment.”

The FBI investigates mortgage fraud in two distinct areas: Fraud for Profit and Fraud for Housing. Fraud for Profit is sometimes referred to as “Industry Insider Fraud” and the motive is to revolve equity, falsely inflate the value of the of the property, or issue loans based on fictitious properties. Fraud for Housing represents illegal actions perpetrated solely by the borrower. The defrauding of mortgage lenders should not be compared to predatory lending practices which primarily affect borrowers.

Mortgage fraud lending has serious complications and must be investigated immediately.  Contact a Real Estate Lawyer to recover from mortgage fraud lending.

Statistics for Mortgage Fraud

SOURCE:. FBI

MORTGAGE FRAUD LENDING INDICATORS & COMMON MORTGAGE FRAUD SCHEMES

• Property Flipping – The schemes typically involve one or more of the following: fraudulent appraisals, doctored loan documentation, inflating buyer income, etc. Kickbacks to buyers, investors, property/loan brokers, appraisers, title company employees.
• Fictitious/Stolen Identity – A fictitious/stolen identity maybe used on the loan application. The applicant may be involved in an identity theft scheme: the applicant’s name, personal identifying information and credit history are used without the true person’s knowledge.
• Foreclosure Schemes – The perpetrator identifies homeowners who are at risk of defaulting on loans or whose houses are already in foreclosure. The perpetrator profits from these schemes by re-mortgaging the property or pocketing fees paid by the homeowner.

Any one of the above schemes may have been used to wrongfully cause financial harm to you. The loss of your home due to fraud should not be tolerated. Take action to reverse the damages which you may have suffered.

Real Estate Resources:

http://www.hud.gov/foreclosure/

http://www.fanniemae.com/index.jhtml

http://www.freddiemac.com/

http://www.irs.gov/newsroom/article/0,,id=174034,00.html

http://www.federalreserve.gov/pubs/foreclosure/default.htm