In keeping with lame duck Presidential tradition, George W. Bush recently pardoned a number of convicted criminals including Timothy Alfred Thone, who was convicted of making a false statement to the US Department of Housing and Urban Development (HUD) to get a mortgage loan. During the past year, several federal indictments have been made including multiple counts connected with various types of mortgage fraud including house flipping schemes, “straw” buyers, and fraudulent mortgage applications for FHA/HUD mortgages.
Will Bush pardon more mortgage scammers? Will he encourage current and potential mortgage fraud by pardoning more criminals who’ve helped bring the mortgage industry to its knees, while cronies such as John Mc Cain continue to blame homeowners for the mortgage mess? Stay tuned, folks.
Your house could be stolen right out from under you. Recent research by the Mortgage Asset Research Institute has shown that mortgage fraud is an increasing problem and “house stealing” is the newest form. Watch this video to see how it’s being done and check your house title as often as you check your credit report.
Meanwhile, President George W. Bush reminded Americans that help may be on the way, in the form of tax rebate checks that are due to start arriving in May.
When considering what to make of all these reports, mortgage shoppers would do well to minimize discussions of the past and the future, and focus on the status of the here and now. In that light, there are concrete indications that this is a good time to act.
California legislators are in the process of approving a bill that would provide state tax relief for eligible homeowners who’ve had debt forgiven by mortgage lenders through relief provisions including mortgage modifications and short sales. This is another step toward cleaning up the mortgage mess; If homeowners facing the loss of their homes can also expect to lose their shirts paying taxes, what’s their incentive for staying in their homes and cooperating with lenders? No one wants more people to walk away from homes they can’t sell, or mortgages they can’t pay.
The bill, which has been unanimously passed by California’s state Senate, is now in the hands of the state Assembly. It’s important to note that tax relief would be available only to owner-occupants.
CNN’s Ali Velshi breaks down Hillary’s housing plan to bring relief to home owners. According to Clinton, “aggressive action” should be taken now to help families avoid foreclosure and increase falls in the US economy.
Is this a good plan or is it possible this plan could bankrupt the country? To learn more read:
It’s great that community services agencies, the government, and some lenders are working with homeowners who are having problems making their mortgage payments, or refinancing mortgages they can’t afford. Unfortunately, the scam artists are out to make a from borrowers facing foreclosure.
Foreclosure proceedings are a matter of public record. Scammers can get your name and property address from these records. Yes, folks, there are people who will send offers of quick help, no money required “solutions,” and they may also offer to pay you to stay in your home. These kinds of schemes can result in losing your home, your money, and your credit rating. Don’t get involved in any deal that seems too good to be true; it probably is!
Well-intentioned community agencies are hitting a brick wall as they try to re-work subprime and other mortgages threatened by foreclosure. Mortgage counseling programs are not getting much cooperation from mortgage lenders. Oops, make that mortgage holders. Gone are the days when you could buy a home and your local bank held the mortgage. Nowadays, mortgage loans are promptly packaged and sold to obscure entities that often have legal agreements preventing mortgage servicers from changing the terms of mortgages sold into the secondary market.
Is Wall Street the only street that matters when it comes to owning a home? Does the entire US economy have to tank before the broken mortgage industry is fixed?
While the action of the Federal Reserve to lower its rate to 2.25% grabbed the headlines, a little further behind the scenes were several positive indications for the mortgage markets:
As much as the regulatory actions indicate a desire to ease the mortgage crisis and stimulate the economy, it is the financial market developments that could indicate a fundamental improvement in conditions on the way.
According to a poll by Gallup News, 76% of the Americans asked stated that they believe the United States is, in fact, in a recession. A similar poll was taken in October of 2007 where only 36% replied that they felt America was experiencing a recession. This is a striking rise in this opinion and numbers like this haven’t been seen since 1992.
But how many Americans reported they felt the United States is headed for a depression?
Reducing capital requirements on lending giants Freddie Mac and Fannie Mae from 30% to 20% could provide an additional $200 billion to the ailing mortgage industry. These funds can be used for refinancing sub-prime loans and for making mortgage loans according to Freddie and Fannie’s recently increased loan limits.
On the surface, this is great news, as anything that boosts the depressed housing market could be good for the US economy. On the other hand, let’s proceed carefully and avoid taking on excessive risk. Responsible approval of mortgage applications is essential to cleaning up the meltdown mess and stabilizing the housing market
