This is a public service message as we are all trying to get the word out.  . but tomorrow I will go back to our regular program once I figure out what that is. 

Read this only if you think it is possible that a mindless money grubbing corporation could make a mistake or intentionally do something wrong. 

 Do you qualify for an Independent Foreclosure Review or any remedies under the National Mortgage Settlement (Attorney Generals' Settlement?)

What’s Available?

Options vary but may include:

- Direct payments to borrowers, estimated at $2,000 if home was lost to foreclosure;

- Refinance options for underwater mortgages;

- Loan modification assistance including principal reduction.

Your mortgage must have been serviced by one of the 14 participating mortgage lenders/servicers or their affiliates:

America’s Servicing Co.; Aurora Loan Services; BAC Home Loans Servicing; Bank of America; Beneficial; Chase; Citibank; CitiFinancial;CitiMortgage; Countrywide; EMC;EverBank/EverHome Mortgage Company; Financial Freedom; GMAC Mortgage; HFC; HSBC; IndyMacMortgage Services; MetLife Bank; National City Mortgage; PNC Mortgage; Sovereign Bank; SunTrust Mortgage; U.S. Bank; Wachovia; Washington Mutual; Wells Fargo; Wilshire Credit Corporation

Seriously  what do you have to lose?  Contact my friends at the Minnesota Home Ownership Center.  They are a legitimate organization that I highly recommend for help with housing issues including foreclosure and foreclosure prevention. 

interest rates - Freddie Mac

Rates are up again but not as high as they were last October.  Mortgage interest rates remain low with little fluxuation.   Home sales are up locally from last year which is a good thing because they were at an all time low last year.  The weather is helping.  This might be a good time.  

Even though it is harder to get a loan than it used to be mortgage fraud is alive and well and depending upon who you listen to it is at an all time high even right here in Minnesota. . . and in St. Paul too.

St. Paul

Last week I attended a class for Realtors about mortgage fraud.  It wasn't a how to class it taught us what to look for.   Sometimes real estate agents are involved in mortgage fraud and they don't even know it.  In other cases they orchestrate it. 

Here are some basic tips on how to avoid fraud:

1.   Get referrals for real estate and mortgage professionals when you want to buy or sell a home. And once you do, check out their licenses with state, county, or city regulatory agencies. Most of these people are exceedingly honest and above-board—it’s just a small percentage who have given the overall profession a black eye.
2.   Do your own research into what other homes in the neighborhood have sold for. Also, look into recent tax assessments of neighborhood homes.
Beware of “no money down” loans. These are a gimmick used to entice people to buy a home they really can’t afford.
3.   Don’t let anyone (i.e., a realtor, mortgage broker) talk you into making a false statement on your loan application, like overstating your income or lying about where your down payment is coming from.
4.   Never sign a blank document or a document containing blank lines. Be sure to read and review all loan documents signed at closing. If you don’t understand what you’re signing, get an attorney who can review the documents for you.

There are people who want to buy homes very badly and there are real estate and mortgage professionals who need business very badly.  This isn't always a good mix.  Real estate agents are taught to find a loan that will work and that everyone should be able to buy a home.  Truth is not everyone can or should buy a home. 

Mortgage fraud is thriving in our current economy and housing market.  There are refinancing scams and foreclosure rescue scams that take advantage of those who would do anything to save their homes. 

There are property flipping schemes and short sale schemes too.  

One of the things I like to tell my clients it that if it seems too good to be true or too easy there is probably something wrong.  If something doesn't seem right or feel right it probably isn't.   

There is almost always a title company involved when there is fraud.  Sometimes they need to overlook a few things for a fraudulent  closing to work.   

Here are some excellent resources for learning more about real estate and foreclosure fraud. 

The FBI web site - Mortgage Fraud

The Minnesota Attorney General's web site - Fraud

Both of these sites have places where people can submit information or complaints which is nice because fraud can runin lives and the people who profit from it should be behind bars. 
 

Foreclosure by Jeff Turner Flickr

 It is hard to get a handle on the foreclosure situation.  One day we read that foreclosures have gone down, the next we read that the foreclosure rate is going up.  Either way we do know that there are people who are behind on their mortgage payments and they need help and that there are still homes out there owned by banks that have not been put on the market yet. 

Foreclosure has become far too common in recent years.  There is help for some but not for those who wait until they are several months behind on payments before they ask for help. 

There is an organization that can help and that has helped people avoid foreclosure and that is the Minnesota Home Ownership Center.  Their web site is packed with useful information and they have a staff of qualified councilors who can help. 

There are foreclosure scams out there.  The Minnesota attorney generals website is a great place to learn about them and avoid them. 

Also beware of the real estate agent that is a short sale expert.  It is always in a real estate agents best interest to sell a home.  That is what we do and how we make money.  Short sales are not always in your best interest.  

If you need to walk away consider giving the bank a deed in lieu of foreclosure which is giving the house back rather than having the bank go through the foreclosure process.  Keep in mind that your mortgage agreement is a two way contract and that is that if you don't make the payments they get the house. 

Also see 

Who Benefits The Most From A Short Sale?

1948 Home Sales Await Bank Approval

I don't have a PHd in economics but I am going to go out on a limb and say that interest rates are not holding the housing market back.   They are at a 60 year low yet the housing market continues to struggle. 

It seems to me that if there were more jobs more people would buy houses and they would pay more taxes which would help governments pay their bills.  

If you have a job and can afford your rent or house payment there is no recession, or if there was it is over.   If you are unemployed, under employed and or struggling to pay a mortgage we are in an economic depression that started in several years ago. 

We should only report happy news because happy news is good for the economy and the housing market.  My happy news is interest rates are at a 60 year low.  Do your part, help the economy and buy a house today. 

Interest rates have been low and trending down rather than up.  They are so pretty that I thought I would publish the chart from Freddie Mac.

Interest rates are still at an all time low and the common wisdom is that rates will go up but no one knows when.  Yesterday I saw a news segment on TV about what a great time it is to refinance because of the lower interest rates.  It is never a great time or the best time for everyone when it comes to refinancing or buying a home.     If anyone tells you now is a great time to buy or to refinance without knowing what your situation is . . RUN!

Just because the rates are lower does not mean that it is a good time to refinance.  We pay the most interest on our mortgages during the first few years.  On a thirty year mortgage that first payment is mostly interest.  As time goes on we begin to pay more principal and less interest.  When you refinance you start all over again paying a lot of interest but and not paying much on the principle.  There are also closing costs to pay on a refinance.

For people like me who are at the tale end of a mortgage that was for a higher rate it doesn’t always make sense to start all over paying all of that interest.  My own mortgage payments are mostly on the principle, I already paid most of the interest and for me there is no advantage to refinancing unless it is to a loan with zero interest.

Also see Home Equity