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03 Jun 09 Home Loan Modifications for Veterans

Unfortunately many VA homeowners run into obstacles with incomes issues that affect their ability to make their VA loan payments on time and loan modification plans and mortgage refinancing must be considered. Many Military Veterans got themselves in to unfavorable loan terms with adjustable rate mortgages from subprime lenders. Many of these Vets also live in areas that have significantly depreciated and over the last few years, they lost their home equity.

Borrowers who paid their mortgage on time or have equity or at least are not upside-down, can do a VA refinance up to 100% with rate and term. Rate and term refinancing means that no cash out is taken in the new refinance transaction. VA borrowers who already have a VA home loan can do a VA streamline and that will ensure them a low fixed interest rate for up to thirty years. Vets who have no equity and who have been late on the mortgage payments for the last few years may have found themselves in a pickle… Many of these VA borrowers find themselves desperately seeking a reduced payment solutions and refinancing may not be an option.

The VA mortgage lenders have significant financing opportunities but many Vets who can’t afford their mortgage and do not qualify for traditional or VA refinancing should consider a loan modification because many mortgage lenders are reconsidering the value of REO properties and the cost of the foreclosure process. VA lenders are saying that offering the distressed veteran borrowers may not be such a bad option.

Obama and his administration have followed Bush in idea that the Federal Reserve and government incentives are key components in reviving the housing sectors nationwide. Unfortunately when veterans attempt to modify their home mortgages they are met with resistance from poorly informed “loss mitigation departments.” There are now thousands of Veterans with mortgages whose monthly payments are scheduled to increase over the next year, so a new wave of foreclosure and loan modifications is visible on the horizon. Remember, VA lenders will agree to VA loan modification plans only if they believe that the borrower has the ability and willingness to repay the loan.

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07 Jan 09 Texas Looking to Stop Foreclosure Relief Scams

Most people in the mortgage industry figured there would be some policing arise to prevent the foreclosure scamming that seems to be popping up in this non-regulated field amid the foreclosure crisis.  Paul Jackson said in a recent article that this was bound to happen with the number of troubled homeowners has increased exponentially, so too have the number of profiteers looking to prey on a homeowner’s desire to avoid foreclosure. Foreclosure rescue scams remain a threat in financially depressed areas in Ohio and Michigan — are now among the fastest-growing areas of problems for servicers who specialize in managing troubled mortgages, according to various sources in the market that have spoken with HousingWire.

Texas Attorney General Greg Abbott in December introduced a unique proposal that would place new restrictions on foreclosure prevention consultants — something that other states, including California, are considering putting into place as well. “At a time when regulators, policy makers and stakeholders are working to help struggling families, unscrupulous operators are scheming to profiteer at homeowners’ expense,” Abbott said. “Too many scam artists attempt to target homeowners with large fees and the false promise that they could help Texans avoid foreclosure on their homes.” Abbott, who proposed the Foreclosure Rescue Fraud Prevention Act alongside state Senator Craig Estes, R-Wichita Falls, says states need more power to crack down on bad actors in the foreclosure prevention space. Professional guidance yielding loan modification plans are definitely in demand, but some form of disclosures would minimize predatory lending.

The Act would require foreclosure prevention consultants to provide customers a written, plain language contract memorializing their services agreement. It would also require that these consultants obtain their customers’ written consent, in the form of a signature, before beginning any services or accepting any fees. An additional requirement mandates a written disclosure statement instructing homeowners to contact an attorney or a housing counselor before signing mortgage rescue agreements. “While most homeowners may never feel the threat of home foreclosure, it is an issue that can impact all of us when it strikes our neighbors, friends, and family,” Estes said. “This issue has impacted constituents in my district and across the state, we are here today to send a very clear signal that these actions by unscrupulous mortgage foreclosure consultants will not be tolerated.”

The written agreements mandated by the proposed law would apply to both foreclosure prevention consulting and equity purchase contracts. Both types of agreements would have to include plain language cancellation procedures. In addition to new disclosure requirements, the proposal would place new limits on equity purchase agreements. To protect Texans’ interest in their homes, the law would require equity purchase agreement buyers to pay at least 82 percent of the property’s fair market value. Read Complete Texas Foreclosure Article >

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