Tag Archives: Living Lies

Specific Stop Bank Foreclosure (Viewer question)

Modifications:Dont waste your time. They do not exist. The terms of the Master agreement  prohibit the lender or  “Companies” from accomplishing a loan modification. The loans must be repurchased before
a servicer can engage in a modification.  They wont so the modification offer is nothing more than running your loan past FHA and documenting compliance with the Governement. M Soliman

www.borrowerhotline.com

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Countrywide Information for those who Suffer!

About Countrywide
Founded in 1969, Countrywide Financial Corporation is a diversified financial services provider and a member of the S&P 500, Forbes 2000 and Fortune 500. Through its family of companies, Countrywide originates, purchases, securitizes, sells, and services residential and commercial loans; provides loan closing services such as credit reports, appraisals and flood determinations; offers banking services which include depository and home loan products; conducts fixed income securities underwriting and trading activities; provides property, life and casualty insurance; and manages a captive mortgage reinsurance company. For more information about the Company, visit Countrywide’s website at www.countrywide.com.

Additional Information About this Transaction
In connection with the proposed merger, Bank of America has filed with the SEC a Registration Statement on Form S-4 that includes a proxy statement of Countrywide that also constitutes a prospectus of Bank of America. Countrywide has mailed the proxy statement/prospectus to its stockholders. Bank of America and Countrywide urge investors and security holders to read the proxy statement/prospectus regarding the proposed merger because it contains important information. You may obtain copies of all documents filed with the SEC regarding this transaction, free of charge, at the SEC’s website (www.sec.gov). You may also obtain these documents, free of charge, from Bank of America’s website (www.bankofamerica.com) under the tab “About Bank of America” and then under the heading “Investor Relations” and then under the item “SEC Filings”. You may also obtain these documents, free of charge, from Countrywide’s website (www.countrywide.com) under the tab “Investor Relations” and then under the heading “SEC & other filings.”

Bank of America, Countrywide and their respective directors, executive officers and certain other members of management and employees may be soliciting proxies from Countrywide stockholders in favor of the merger. Information regarding the persons who may, under the rules of the SEC, be considered participants in the solicitation of the Countrywide stockholders in connection with the proposed merger is set forth in the proxy statement/prospectus filed with the SEC. You can find information about Bank of America’s executive officers and directors in its definitive proxy statement filed with the SEC on March 19, 2008. You can find information about Countrywide’s executive officers and directors in Amendment No. 1 to its Annual Report on Form 10-K/A filed with the SEC on April 24, 2008. You can obtain free copies of these documents from Bank of America and Countrywide using the contact information above.

www.borrowerhotline.com “your killing me larry !”

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Mortgage companies will allow you . . .

As a general rule, mortgage companies will allow you to borrow three times your salary, or two and a half times your joint salaries if you’re buying with someone else.

However, in the current market there are many different types of mortgage available, some of which will let you borrow more than this. For example, some companies will allow two people buying together to borrow three times the greater salary and one times the lesser.

There are also many innovative schemes around, such as those that allow borrowers to add the rental income from letting one room to their salary before their income multiples are assessed.

It’s worth seeking advice from two or three independent mortgage or financial advisers to find the best deal for you. Remember, though, that even if interest rates are low now, there’s absolutely no guarantee they’ll stay that way.

Never keep back any information on debts or county court judgements when securing a mortgage; it could come back to haunt you.
Deposits

It’s worth trying to save as much as possible for an initial deposit, to secure the best repayment deals. With property prices as they are today, however, saving even a five or ten per cent deposit can be a real problem.

If your deposit leaves you flat broke, some mortgage companies will offer you the incentive of cash-back after completion, but you may have to pay a fee (redemption penalty) if you decide to pull out of the agreement.

If it’s a choice between paying off expensive debts such as credit cards or personal loans and saving a deposit, it’s often advisable to do the former and take out the best 100 per cent mortgage available. The choice and rates of such mortgages have become wider and more competitive in the past few years.
Mortgage terms

It’s only natural when buying a property to be more concerned with its size than with studying the small print on the mortgage agreement. But the wrong mortgage can cost you tens of thousands of pounds more than it should.

Mortgage providers often offer special deals to encourage people to take out a mortgage with them, and these are usually in the form of short-term introductory benefits on your mortgage. These benefits might be a discounted rate, a fixed rate, or a capped rate for a certain number of months or years, known as a ‘tie-in period’. Mortgage providers will want you to stay with them for as long as possible, and, because of this, many mortgages may contain a ‘redemption penalty’. This means that if you want to pay off your mortgage early, or move it to another mortgage provider, you will have to pay a fee.

Basically, the longer you borrow the money for, the more interest you’ll pay. The other side of this is that the longer you take to pay back the loan, the less you have to pay each month.

The typical mortgage is lent for 25 years, so you need to be in your first property for five years in order to reap the benefits. This is because, if you have a repayment mortgage, most of your repayments during the first years are spent only paying interest. Also the cost of moving (solicitors, stamp duty, and so on) means that it’s uneconomical to move regularly.

For example, if you pay off a £40,000 mortgage in 15 years, rather than the normal 25 years, you’ll have higher monthly payments for those 15 years, but you could save a staggering £20,000 in interest payments.

Do the same sums for your circumstances on the mortgage calculator – and think what you could do with £20,000.
Interest rates

Your other big decision is what type of interest rate to have on your mortgage.

* fixed rate
* variable rate
* capped rate
* tracker
* discounted

Definitions of all the above rates can be found at news.bbc.co.uk
Types of mortgage

The basic decision you have to make is how you’re going to repay the money you’ve borrowed. Don’t be confused – there are only two basic types of mortgage:

* repayment, where the capital is re-paid gradually over the term of the mortgage
* interest only, which, as the name suggests, is where you only pay the monthly interest of the mortgage. However, your lender will stipulate that you set up a repayment vehicle, such as an ISA, an endowment policy, or a pension plan which, when it matures, can be used to pay off the outstanding debt. If you take out this type of mortgage, check regularly that you’re on target to pay off the mortgage when it’s due. If not, then increase your savings.

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Deed in Lieu

A Deed in lieu of foreclosure is a deed instrument in which a mortgagor (i.e. the borrower) conveys all interest in a real property to the mortgagee (i.e. the lender) to satisfy a loan that is in default and avoid foreclosure proceedings.

The deed in lieu of foreclosure offers several advantages to both the borrower and the lender. The principal advantage to the borrower is that it immediately releases him/her from most or all of the personal indebtedness associated with the defaulted loan. The borrower also avoids the public notoriety of a foreclosure proceeding and may receive more generous terms than he/she would in a formal foreclosure. Advantages to a lender include a reduction in the time and cost of a repossession, and additional advantages if the borrower subsequently files for bankruptcy.

In order to be considered a deed in lieu of foreclosure, the indebtedness must be secured by the real estate being transferred. Both sides must enter into the transaction voluntarily and in good faith. The settlement agreement must have total consideration that is at least equal to the fair market value of the property being conveyed. Generally, the lender will not proceed with a deed in lieu of foreclosure if the outstanding indebtedness of the borrower exceeds the current fair market value of the property.

Because of the requirement that the instrument be voluntary, lenders will often not act upon a deed in lieu of foreclosure unless they receive a written offer of such a conveyance from the borrower that specifically states that the offer to enter into negotiations is being made voluntarily. This will enact the parol evidence rule and protect the lender from a possible subsequent claim that the lender acted in bad faith or pressured the borrower into the settlement. Both sides may then proceed with settlement negotiations.

Neither the borrower nor the lender is obliged to proceed with the deed in lieu of foreclosure until a final agreement is reached.

In New York, the Home Equity Theft Prevention Act has created some confusion regarding this frequently-used method of settlement. It is unclear whether HETPA applies to deeds in lieu of foreclosure since there is no clear exclusion as there is for a referee’s deed, for example. The 2-year right of recission is not a risk that banks or title insurers are comfortable with, especially given the complexities of compliance, so many banks and title insurers in New York are not willing to work with deeds in lieu.

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Is tme running Out for Foreclosure Victims

In what has become a sadly familiar story, a homeowner in trouble responds to a company that promises to help them avoid foreclosure. The solution turns into another problem, and the homeowner is now part of a class action lawsuit against the company.

“They say the money was going to go in an escrow account and help you get back on your feet so you can go ahead and keep your home and whatnot after a year….I thought it was a good program!”

So good, that this Suitland woman– who didn’t want to be named– recommended the financial service she was using to a neighbor. Now, she’s one of hundreds of homeowners from Maryland, D.C., and Virginia in a class action lawsuit filed in federal court.

Attorney Phillip Robinson with Civil Justice Incorporated says most homeowners were looking to refinance.

“They were trying refinance from an exploding unaffordable loan to a loan they could afford,” said Robinson. “Instead, they got placed in a foreclosure reversal program. And the homeowners are left with nothing and they’re facing a second foreclosure in someone else’s name on a fraudulent loan.”

In federal court on Friday, an attorney for one of the title companies named in the civil suit told federal Judge Roger Titus that the victims were guilty of contributory negligence — that they in essence, were also to blame. This infuriated Angele Reid of Oxon Hill, who sat in on the motions hearing.

“I was really ready to strangle him,” Reid said. “Because if you look at the documents, even a real estate attorney would have difficulty figuring out that something was going wrong.”

Judge Titus seemed to agree, pointing out that the federal forms known as HUD-1′s were indecipherable. At one point, Titus said only a mathematician could understand them.

One of those named in the class action suit–Joy Jackson of the Lanham-based Metropolitan Money Store–has also been indicted on criminal charges. According to the criminal indictment, Jackson allegedly took money from clients and spent it on fur coats, fancy cars, a limo to take her son to his private school, and an $800,000 wedding at the Mayflower Hotel.

But even as attorneys go to bat for victimized homeowners, cleaning up after the mortgage mess won’t be easy.

Many consumer advocates say homeowners tell them they are in an endless game of phone tag with lenders as they try to forestall foreclosure. Attorney Peter Holland, who represents some of the hundreds of homeowners from Herndon to Hyattsville in a class action lawsuit in federal court, hears that too.

“The lenders are giving instructions, I’m told, to foreclose. And so, it’s like a battlefield every day,” said Holland.

But some in the housing market say another victim in the mortgage crisis are the reputable companies who do act in good faith. One thing everyone agrees from homeowners, to consumer advocates, to mortgage firms is that the process of cleaning up the market will be a long, hard slog.

(Copyright 2008 by WTOP Radio. All rights reserved.)

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