Reverse mortgages have become a very popular method for seniors to get cash out of their home during this recession.  But what do senior citizens need to know about reverse mortgages before they commit?

 While reverse mortgages are a “no recourse” loan, the heirs of the debtor may still lose the property (to foreclosure ) if the loan is not repaid after the debtor’s death or move.

Reverse …

Category: Debt Collectors , Economy , Loans / Mortgages , Managing Your Finances

Tags: Debt lender reverse mortgages

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… loan allows them fast access to money for 30 days; but unfortunately at a high price.  Car title loans have interest rates that can climb as high as 25 percent per month.  Car title lenders will loan the debtor a small amount of cash in exchange for a promise that if they don’t repay the loan, the lender can take the car.   But what happens most often is that debtors pay on the loan for months and end up sometimes paying more than their car is worth.

For example let’s say a debtor …

Category: Car Loans / Title Loans , Debt Collectors , Loans / Mortgages

Tags: Car Loans / Title Loans interest

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… five people, including a home builder, for allegedly engaging in mortgage fraud involving loans worth $13 million.  Chekeelah Phelps, 45, of Mansfield; Clayton Bennett, 66, of DeSoto; Munzer Kawasmi, 30, of Arlington; Deborah Fernie, 48, of Keller; and Kelvin Kidd, 50, of Mansfield are all charged with hatching an elaborate scheme that mostly involved falsified loan documents originating in the subprime mortgage market.

The case stems from an anonymous letter that the Tarrant …

Category: Loans / Mortgages

Tags: Chekeelah Phelps Fraud Mortgage Subprime Loans

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… to the U.S. Department of Housing and Urban Development, the number of reverse mortgage loans is projected to exceed a record 110,000 this year. Nationally lenders originated 76,351 government-insured reverse loans in 2007, according to the National Reverse Mortgage Lenders Association. But that’s just a small portion of the market. The National Council on Aging estimates that 13.2 million senior households are qualified for the loans, with each household eligible to borrow an …

Category: Loans / Mortgages

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Checkbook loans were created to disguise payday loans after tighter restrictions were put on payday loans.

 

Everyday people get into situations where they need money now, but they don’t have it.  Cars break down, heaters quit working, bills have to be paid, and sometimes the money just isn’t there.  When this happens, one source people turn to for money is payday loans.  Payday loans …

Category: Economy , Loans / Mortgages , Managing Your Finances , Pay Day Loans

Tags: Payday Loan Reform Act Payday Loans

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Mortgages backed by the Federal Housing Administration are literally draining the agency of its cash reserves. The number of FHA foreclosures has increased 26 percent within the past year and at least 9.1 percent of FHA borrowers are at least 3 payments delinquent on their mortgage payments as of December.

The problems are rooted in FHA mortgages made in 2007 and 2008. Those loans are now …

Category: Economy , Foreclosures , Loans / Mortgages

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… this bill will finally end the unwarranted taxpayer subsidies that go to banks for student loans.    Instead, let’s take that money and give families a $10,000 tax credit for four years of college and increase Pell Grants.    And let’s tell another one million students that when they graduate, they will be required to pay only 10 percent of their income on student loans, and all of their debt will be forgiven after 20 years –- and forgiven after 10 years if they choose a …

Category: Loans / Mortgages , Student Loans

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… subpoenas on 15 mortgage companies with suspiciously high default rates and foreclosures for loans backed by the FHA.

On Tuesday, Department of Housing and Urban Development’s inspector general, Kenneth Donohue, said he wanted to determine why defaults are so elevated among the 15 companies being probed and whether any have committed fraud.

“Many of these target loans didn’t last but a short time before defaulting,” Donohue said. “We will conduct an investigation, if …

Category: Economy , Loans / Mortgages

Tags: FHA foreclosure Kenneth Donohue Subprime Loans

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… business in a way that would allow it to charge higher interest rates and offer longer term loans, a move that could help it get around existing payday lending regulations.  Could other payday lenders follow Check Into Cash’s lead?  Blogger W. Bolton, summed it up nicely…

Why the change? Could it be because the state’s new law is supposed to go into effect by February? You know, the one that requires a database to track loans in an effort to end the industry’s practice of …

Category: Economy , Loans / Mortgages

Tags: Cycle of Debt Interest rate Multiple Loans Payday Loans

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… attempting to resolve their debt problems without the help of bankruptcy consider personal loans.  They figure if they take out a personal they can use that money to cover their expenses and debts and avoid bankruptcy until they “get on their feet.”  While in theory it seems to be possible to avoid bankruptcy by taking out a personal loan and using that to survive until you can get another job or more income, it rarely works out that way.  Here are three things you need to …

Category: Loans / Mortgages , Managing Your Finances

Tags: Bankruptcy Creditors Interest Rates Personal Loans

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… were irresponsible or bad; but they were simply good people who had been stuck with bad loans and put into a situation where they were vulnerable to foreclosure.  Many of the people who in error pointed fingers at their neighbors are now also facing foreclosure and even eyeing bankruptcy for a way out of the mess.

The truth about the foreclosure crisis is that many homeowners were lured into bad loans that left them short on money and vulnerable to hard times. Many of these …

Category: Economy , Foreclosures , Loans / Mortgages

Tags: foreclosure loans Making Home Affordable Predatory Lending

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… from the financial industry bailout to grant unemployed homeowners facing foreclosure low-interest loans to help them keep their home.

How The Program Would Work

The government would use some of the interest they collect from payments on the $700 billion Wall Street bailout to give unemployed homeowners low-interest loans for a period of 12 to 24 months. Homeowners facing foreclosure because of  unemployment would be eligible; but they would need to demonstrate that there is a high …

Category: Economy , Foreclosures , Loans / Mortgages

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