Friday, August 28, 2009

California Cracking Down on Illegitimate Loan Modification Companies

To find more great articles like this Visit: Loan Modification News

Beginning in mid-July: the California Real Estate Department, California Attorney General and the Federal Trade Commission buckle down on Scam Foreclosure Rescue Companies. 198 companies across the nation are being jointly sued for deceiving distraught home owners with upfront fees, fraudulent statements, and illegal gestures.

California, along with Arizona, Nevada and Florida were ground zero during the sub prime mortgage debacle. Some of the very same people involved in granting exotic mortgages to unqualified borrowers are now out in force offering to modify the very same mortgages they once originated.

Most of the unscrupulous companies charge heavy upfront fees and then do little if any follow up once they receive the money. Desperate homeowners seeking a way out of financial straits are paying $1,500 - $4,000 to get help. Often, that money is a total waste.

One loan modification company’s response to this statement is that they are “doing all they can” and are not concerned with the accusations brought against their company. Watch the Fox News Report Video that accompanies this post to view his entire statement or visit our feed on youtube at:

911 Foreclosure Video Channel.

Hundreds of foreclosure rescue companies are being brought to suit for charging “advanced fees” for the loan modification. In order for a Loan Modification Company to charge an upfront fee, the arrangement must be approved through the states Real Estate Department who reviews the legalities of the contract.

Here is a list of the many companies and individuals that have received cease and desist orders or other accusations by the California Department of Real Estate -
Also here is a list of companies that have engaged in business while not being licensed.

Looking at these lists of thousands of fraudulent companies, it is safe to say that they would like nothing better than to lighten an already distressed homeowner’s wallet. Be cautious of any company or individual that claims to charge upfront fees for Loan Modifications. It’s better to read more articles such as this to prepare yourself to avoid any scams that you can least afford.

Article by: 911-Foreclosure

Thursday, August 20, 2009

FHA approved Lenders in decline. Taylor, Bean and Whitaker close doors.

After a long track record of providing solid mortgages through its brokerage network, Taylor Bean and Whitaker close its doors after a Federal Raid. The lender Ginnie Mae also terminated their mortgage backed securities wing of TBW due to the ordeal.

With an FHA rescue out of the picture and additional financing unavailable, the companies only other option was to close its doors. Management contacted the employees conveying their disappointment and explaining that another option was unavailable. Now recognize that Taylor, Bean and Whitaker was not a tiny company. At the time of the closure, they employed almost 2,000 people.

The Federal Government “raided” the company headquarters on August 3, 2009 in Ocala, Florida.

Now pay attention that I put “raided” in quotes? This invokes the perception that the social media has with people like Elliot Ness chasing Al Capone. The federal search of TBW was warranted however, since they failed to submit a required financial report. This raised the “fraud” alarm when it was coupled with TBW neglect to disclose any records of irregular transactions.

The company was incorporated in 1982 as a small town retail mortgage firm. But in the past decade or so, TBW had grown substantially to become one of the top mortgage wholesalers in the country.

What this closure means is another stake is in the heart of the mortgage brokerage industry. Look - I'm not saying that Taylor Bean was completely above reproach - I personally have never had any direct dealings with the firm. But through my many years in this industry, I had never heard a disparaging remark about them. As far as I know, this company was one of the better mortgage lenders out there. And now they are gone. And now there is one less competitor, one less company for a broker to choose from.

What comes to the next evolution of the mortgage industry? Well, pay attention because we’re already pulling back the veil. Mortgage borrowers can choose from a Governmental Lender Service or from the remnants of the once powerful brokerage networks. But Who’s LEFT!? Only a few small Local Lenders that still portfolio their own Loans. I hope you can see that your choices are being eliminated since it becomes harder and harder each day to find a broker. Now you may choose a fixed rate - oh, you can choose 30 or 20 or even 15 years or one of a couple of adjustable programs left - 5, 7 or 10 year fixed rate products that convert to floating rates after the fixed rate portion ends. Is that what you call choice? Well that’s all that’s left! And you call this good for business.

Article submitted by: 911 Foreclosure - Loan Modification Advice

Saturday, August 15, 2009

Chapter 13 Bankruptcy....explained

Chapter 13 Bankruptcy also referred as reorganization. Bankruptcy benefits you when you have outstanding debt and all your attempts have been failed to repay your debt, Filing Chapter 13 Bankruptcy can also help you to avoid foreclosure, it also helps you to repay your debt partially or all of your debt within a specific period of time. Usually the time taken to repay your multiple debts can be 3 to 5 years.

When to file Chapter 13 Bankruptcy?

When you are experiencing any of the following situations:-

* You are willing to pay off your secured debts.
* You are not in a situation to pay off your monthly payment of mortgage.
* You have more property lien compared to collateral value.
* You are not able to clear off your debt filing Chapter 7 bankruptcy.
* You earn more then the requirement for filing chapter 7.
* And last but not the least you want your valuable asset to keep with you by not using it to pay of your debt.

Eligible criteria for filing Chapter 13 Bankruptcy:-

1.You should have income on a regular basis so that you don’t find any difficulties to pay your monthly payments.

2.Before filing Bankruptcy within last six months you must have enrolled in session of credit counseling.

3.You must have your gross monthly income more then you’re estimated median income.

4.If you have filed Chapter 7 Bankruptcy before, then you have to wait for four years to file Chapter 13,you can’t file Chapter 13 within two years.

Hope this article will be helpful for those who need to file Chapter 13 Bankruptcy.

Friday, August 7, 2009

How to choose the Best Debt consolidation Loan

If you are looking for a debt consolidation loan, you will find a lot of companies in and around you .There are thousands of companies ready to assist you on your financial owes, you have seen lot of them in commercials in televisions and also while searching on internet. Millions of people are in debt today and also lots of debt consolidation companies which are growing day by day. And you need to choose is the best of them.

Here are some Tips on choosing the best Debt consolidation Company:-

1.Go for a thorough market research find some of the best companies; compare between those companies which can legitimately lower your monthly payment with low interest rate.

2.Check out company profile .A Company with good service background and friendly representative will make your task smooth and easier.

3.Look out for the company which has a minimum charge with good service.

4.Try to negotiate with the company.

5.Calculate your interest charges, monthly payments, and also fees of the company and then make a budget. Remember it should not exceed your current debt.

6.And last but not the least before signing any document read carefully the charges of the company their pros and cons etc.Make sure they don’t have any hidden cost.

Hope this Article will be helpful for those looking for a Debt consolidation loan .

Saturday, August 1, 2009

Debt consolidation loans

Debt consolidation loan is the best resolution for all your accumulated loans for which you were paying a high interest rate. You can replace all your accumulated loans into a single debt consolidation loan and also with a low interest rate. It is better to opt for Debt consolidation before everything gets out of control. There are two types of Debt consolidation loan available secured and unsecured personnel loan.

Secured consolidation loan-In this type of loan you will have to keep your property or house as security deposit against the loan and in case you are not able to pay back the amount. It would result in loss of your property or house.

Unsecured debt consolidation loan-In this type of loan you do not have to own a large property or house to get your loan approved. But in this type of loan you will end up paying more, since it is a loan without owning any property or home and require a long time to repay the loan amount .Moreover this type of loan doesn’t provide any tax benefit to you.

When to opt for a debt consolidation loan:-

1. If you are suffering from accumulated loan and unable to manage your multiple bill payment.

2. If you are not able to manage with different creditors at one time.

3. If you want to make all your bills into one monthly payment.

4. And last but not the least you want save after repaying all your debt.

Benefits from unsecured loans:-

  1. Helps to consolidate debt-With debt consolidation loan you can pay all your unsecured bills like payday loan, credit cards, and medical bills etc at one single payment plan. So you will have only one single affordable loan to repay,

  2. It reduces stress-When all your loans are made into one repayment plan then you will not have to deal with several creditors thus help you to reduce stress.

  3. Helps to get rid from collections calls-Since all your bill payment are taken care by debt consolidation loan, you get rid off getting harassing calls from your creditors and collection agencies.

  4. Interest rate can be lowered-You can save a good amount by opting for unsecured loan for consolidating debt available in the market with low interest rate, even lower then credit card interest rate.

  5. Improves your credit score-Paying off all your accumulated dues with a single debt consolidation loan will help you to improve your credit score with positive impact.

  6. Helps in Budgeting-Since now you are paying all your dues in a single monthly affordable plan you can easily budget your plan accordingly.

There are some things which you should keep in mind before choosing the best consolidation loan which I will be discussing in my next post..