Distressed Homeowners Beware

Facing foreclosure? Scammers are targeting people having trouble paying their mortgages. Some claim to be able to “rescue” homeowners from foreclosures, while others promise loan modifications – for a fee. The Federal Trade Commission, the nation’s consumer protection agency, wants you to know how to avoid scams that could make your housing situation go from bad to worse.

Mortgage Fraud: Just The Facts

Estimated Annual Losses*: $4 billion to $6 billion

Total Mortgage Fraud Suspicious Activity Reports (SARs) in Fiscal Year 2008: 63,173, with more than $1.5 billion in losses
– So far in fiscal year 2009: 28,873 SARs (February 2009)

House Passes Mortgage Reform and Anti-Predatory Lending Act of 2009-H.R. 1728

Washington, DC – The House of Representatives today overwhelmingly approved legislation to curb abusive and predatory lending – a major factor in America’s highest home foreclosure rate in 25 years. H.R. 1728, the Mortgage Reform and Anti-Predatory Lending Act of 2009, will outlaw many of the egregious industry practices that marked the subprime lending boom. It represents a key step in the overhaul of the nation’s financial regulations.

Helping Families Save Their Homes Act of 2009 (H.R. 1106)

The Helping Families Save Their Homes Act will give authorization to bankruptcy courts to modify the terms of mortgages made on homeowners’ primary residences, a practice which is barred by current law. The bill, when passed by both houses, would permit bankruptcy courts to restructure the debt on home mortgages by reducing the principal owed, extending repayment periods, reducing interest rates, and prohibiting, reducing, or delaying future interest rate increases. Bankruptcy law currently permits such restructuring only for vacation homes, family farms, and yachts. Under this bill, eligibility is limited to homeowners with mortgages originated before the enactment of the legislation who have received notice that a foreclosure may be commenced. The legislation restricts the situations in which bankruptcy judges can reduce – or “cram down” – the principal owed.

If It Walks Like A Duck…

Important Notice From Your Mortgage Company. Open Immediately!

How many times have you seen that statement on an envelope? Or how about this one: Important Financial Information Enclosed. Please do not discard – account information enclosed.

Right away an alarm goes off now when I see this because of the constant bombardment of deceptive mailings I’ve received in the past. You probably already know that appearances can be deceiving, but these are examples of where you really have to be on guard.

National Consumer Protection Week

Servicemembers Civil Relief Act
(formerly known as The Soldiers’ and Sailors’ Civil Relief Act of 1940)

Continuing with our spotlight on National Consumer Protection Week, here are some great Q&A’s about the Servicemembers Civil Relief Act provided by the U.S. Department of Housing and Urban Development.

Who Is Eligible?

The provisions of the Act apply to active duty military personnel who had a mortgage obligation prior to enlistment or prior to being ordered to active duty. This includes members of the Army, Navy, Marine Corps, Air Force, Coast Guard; commissioned officers of the Public Health Service and the National Oceanic and Atmospheric Administration who are engaged in active service; reservists ordered to report for military service; persons ordered to report for induction under the Military Selective Service Act; and guardsmen called to active service for more than 30 consecutive days. In limited situations, dependents of servicemembers are also entitled to protections.