(LoanSafe.org) – Question: Dear LoanSafe.org, Over the last three years my husband and I have had our ups and downs and have split up several times which has caused major set-backs in our financial situation. We basically traded off leaving one another and moving in with our parents for a month or two at a time leaving the other to take care of all the household expenses and mortgage payment (mostly using our savings).
Even though this happened and we used a significant amount of what we had saved up we have managed to keep our account current and have only been late on several other bills during this time. However, now we have run into a situation that is completely out of our control. My husband is getting a temporary lay-off from work for 60 days and we feel this will leave us in a position where we will not be able to make our monthly payments during this time.
We were wondering if there are any special programs or if you knowledgeable folks think it would be wise just to borrow the funds we need during this time, and if so, how would we go about doing so? Basically, should we borrow money to get caught up on mortgage? (more…)
(LoanSafe.org) – For those out there trying to get out from under a mortgage, there are very few solutions that you will find. Many homeowners are so far underwater and have second mortgages or HELOC’s that there may be now way out for some of them. Bankruptcy may be an option, but many consumers simply would like to avoid BK because of either a security clearance or the long term negative credit affects that it would bring on.
If you are considering bankruptcy in order to prevent defaulting on your home, be aware that bankruptcy can ultimately be as damaging as a foreclosure. In cases when people are facing either of these options because they owe far more than what their house is worth or just can no longer mange their monthly payments, some people try and comfort themselves by just not thinking of the matter or just pushing it aside.
This is by far one of the worst things you could do in this circumstance.
Even if you haven’t figured out how you are going to make things work, not taking action can be quite deadly, especially when the mistake could be found by tracing your own steps. You’d probably want to try fixing your financial issues as soon as possible once you analyze the problem. (more…)
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Submitted by a Chase Mortgage Holder (LoanSafe.org) – Hello all,
I am not one to normally post my thoughts or opinions online but after our successful modification, I thought I should do my part and share the experience.
Everyone, I mean everyone has suffered in some aspect due to the economy. My wife and I are hardworking individuals providing for a family of four. In 2006 we purchased land and built our new home, which we saved an incredible amount of money and built what we wanted for $300,000 not what a builder wanted for $500,000.00. Because we were able to do this, not only were we $200,000.00 a head of the game, today we still owe less than the appraised value. If you do your research instead of falling in love with that shiny new object that you can’t live without, you will save money. This is where most failed and have either foreclosed or bankrupted. When the economy reared its ugly head in my industry we knew it was time to revisit our monthly nut and shave off any unwarranted expenses. (more…)
Facing a hardship that makes it nearly impossible to pay your mortgage payments is hard enough. Having to face the possibility of foreclosure is even harder, especially if you have a FHA or VA mortgage and have exhausted all options including a refinance and/or a loan modification. That’s where short sales come in hand. (more…)
NEW MEXICO FBI (LoanSafe.org) – United States Attorney Kenneth J. Gonzales announced that Anthony Moya, 34, and his wife Eunice Moya, 37, both residents of Santa Fe, were arraigned this morning before United States Magistrate Judge Robert Hayes Scott on a federal indictment charging them with bank fraud. The 11-count indictment charges both defendants with eight counts of bank fraud and aiding and abetting bank fraud. The indictment also charges Anthony Moya, the former manager of a branch office of CitiFinancial Inc. in Santa Fe (“CitiFinancial” or “the bank”), with three counts of misapplication by a bank employee. (more…)
WASHINGTON D.C. (LoanSafe.org) – The FTC also has reached settlements with several defendants who were charged with unlawful practices in four actions filed in 2009. In addition to banning the defendants from the mortgage relief business, the settlement orders permanently prohibit them from misleading consumers about goods and services. That includes falsely claiming to be affiliated with the government, misrepresenting loan or refund terms, and misrepresenting their ability to improve someone’s credit history. The orders also prohibit them from selling or otherwise disclosing customers’ personal information. (more…)
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WASHINGTON D.C. (LoanSafe.org) – U.S. Homeowners Relief. According to the FTC, four companies and six individuals touted a “Government Mortgage Relief Program” that would purportedly reduce mortgage payments as part of the “Obama Act” or the “federal stimulus program,” falsely claiming an affiliation with the government. Claiming a 90 percent or higher success rate, they promised that, in return for a fee of up to $4,250, they could reduce consumers’ monthly mortgage payment and lower their interest rates and principal amounts, or both. The defendants also promised to give full refunds if they failed to obtain loan modifications. The FTC alleged that once consumers paid the fee, they received nothing, did not get refunds, and the defendants stopped responding to their calls or e-mails, disconnected their phone numbers, and changed the name of their business while continuing to make promises and take money from consumers.
At the FTC’s request, a federal court halted the operation and froze the defendants’ assets, pending trial. The FTC seeks to stop the defendants’ deceptive claims and make them forfeit their ill-gotten gains.
The FTC complaint alleges that the defendants claimed to have established relationships with lenders that enabled them to obtain loan modifications on good terms. In mailers that appear tailored to individual recipients, they expressed certainty that the consumers could receive a loan modification by stating that consumers had been “PRE-SELECTED” because their loan situation met the defendants’ criteria, and specified the consumer’s “New 30 Year Fixed Payment.”
The defendants are U.S. Homeowners Relief Inc.; Waypoint Law Group Inc.; American Lending Review Inc.; New Life Solutions Inc.; D.G.C. Consulting LLC; DLD Consulting LLC; Samuel Paul Bain; Macie Mejeco Bain, also known as Macie Mejeco Manns; Aminullah Sarpas, also known as Amin Sarpas and David Sarpas; and Damon Grant Carriger. They are charged with violating the FTC Act and the FTC’s Telemarketing Sales Rule by falsely claiming that people who purchase their services are highly likely to obtain a mortgage loan modification that will make their payments much more affordable, that they are the U.S. government or affiliated with the federal government, and that they will refund consumers’ money if they do not obtain a loan modification.
The complaint was filed in the U.S. District Court for the Central District of California, Southern Division. On September 28, 2010, a federal judge entered a temporary restraining order that, pending a hearing, halted U.S. Homeowners Relief’s allegedly illegal business practices, froze the defendants’ assets, appointed a receiver to manage their businesses, and allowed the FTC and the receiver immediate access to the defendants’ business premises.
Federal Trade Commission, Plaintiff, v. U.S. Homeowners Relief, Inc., Waypoint Law Group, Inc., American Lending Review, Inc., New Life Solutions, Inc., D.G.C. Consulting, LLC, DLD Consulting, LLC, Samuel Paul Bain, Macie Mejeco Bain, Aminullah Sarpas, and Damon Grant Carriger, Defendants
(United States District Court, Central District of California, Southern Division)
Case No. SACV10-01452 JST (PJWx)
FTC File No. 1023018
In this article we will explain the steps an individual needs to take when pursuing a loan modification under the government’s Home Affordable Modification Program (HAMP), which is also commonly referred to as the Making Home Affordable Program or MHA. Please keep in mind that this program is must definitely not guaranteed and there are traditional in-house modification programs available if you are denied permanent assistance. (more…)
That Pushes Homeowners Into Foreclosure
WASHINGTON (LoanSafe.org) – The “robo-signing” scandal that has exposed illegal practices by servicers of mortgage loans has also showed the urgent need to reform a broken system that is plagued with abuses, lacks adequate resources and has pushed countless homeowners toward foreclosure.
That’s the message that Diane Thompson, a lawyer for the National Consumer Law Center, delivered in testimony Tuesday to the Senate Committee on Banking, Housing and Urban Affairs. (more…)
(LoanSafe.org) – What is a payday loan? Payday loans are typically small, short-term loans intended to cover a borrower’s expenses until his or her’s next payday. Payday loans vary by lenders, but the majority use the borrower’s next paycheck as collateral while charging an interest and fee for the loan. While the most common name is “payday loans” they can also be referred to as cash advance loans, check advance loans, post-dated check loans, or deferred deposit loans. (more…)
Carson City, NV (LoanSafe.org) – The Office of the Nevada Attorney is warning consumers of prerecorded telemarketing calls offering credit repair or loan modification services. Some consumers report they are receiving multiple calls per day. During the call, a recording tells the consumer they qualify for a loan modification or credit repair and the call may quote a loan account number to make the offer appear authentic.
However, when the consumer pushes the telephone button to talk to a representative, the recording states that no one is able to take the call. The recording asks the consumer to provide their name, address, account number and even social security number, promising someone will call them back. This is a scam to collect personal identity information from the unsuspecting victim. (more…)
SAN DIEGO, CALIFORNIA (LoanSafe.org) – Kaveh Khast, a San Diego man from the beautiful city of La Jolla has done what very few people have ever done and some only dream of.
He fought the banks and won!
A California federal judge granted granted his motion for a temporary restraining order blocking Washington Mutual (WAMU) and JP Morgan Chase from foreclosing on his home because they had misled him during the loan modification process into defaulting on his mortgage.
Khast claimed that a WAMU representative had instructed him to stop making his monthly loan payments so he could qualify for a modification. A bank rep confirmed receipt of the required loan mod paperwork, but did not contact the plaintiff as promised.
After learning that Chase bank had purchased WAMU and his mortgage, Khast contacted Chase, and was told to submit another application. All the while, he resumed making his monthly mortgage payments.
Shortly thereafter, the plaintiff was told that in order to qualify for a loan modification, he would have top be delinquent on his home loan. Because the bank told him to stop making his payments and to default on his loan, Gonzalez found that Khast was irreparably harmed and entitled to an order temporarily halting foreclosure proceedings. (more…)