Subprime brokers now in the loan modification business, consumers duped by promise of security for homes.

Most of us have seen at least one infomercial on TV that has tempted us to pick up the phone an order a product.  We are tempted by the hope that the product will make our lives easier or better.  Eventually, one of the local TV stations will run a program and tell us that the product is …

Category: Loans / Mortgages , Subprime Mortgages

Tags: Federal Trade Commission loan modification Subprime lending

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The Mortgage Bankers Association released a report stating that 11.5 percent of subprime loans in Texas were in foreclosure or facing imminent foreclosure. The foreclosure rate was only 9 percent last year. Many of these subprime homeowners have adjustable-rate mortgages with interest rates that have reset to unaffordable levels. One of those borrowers, a 78-year-old veteran featured in the Dallas Morning News, is facing foreclosure after seeing his mortgage payments …

Category: Subprime Mortgages

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… loans against default/ foreclosure.  Is it possible that lenders who were previously in the subprime lending industry and responsible for much of the foreclosure crisis have now targeted the FHA program with the intent of reaping the benefits of a quick default and foreclosure by ill-prepared borrowers?  I wouldn’t put it past them. We just need to look at the current foreclosure crisis to understand that this is a possibility.   And the FHA which now backs 30 percent of all the …

Category: Economy , Loans / Mortgages

Tags: FHA foreclosure Kenneth Donohue Subprime Loans

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… agreed to pay $7.46 million to over 3,000 Texans who lost their homes in foreclosure because of subprime mortgages issued by Countrywide Financial, which is now owned by Bank of America. Each household will receive approximately $2,330 in restitution as part of the settlement. Just enough money for first and last month’s rent on the rental they will never own no matter how long they pay. But if you thought the $7.46 million was small, you’re right because that’s only a fraction of …

Category: Subprime Mortgages

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… crisis serious enough. Homeowners facing foreclosure are being forced to comply with toxic mortgages that should have never been allowed on the marketplace and that they can’t modify (in many cases) because no one wants to force anyone (banks) to comply or do something that might make them uncomfortable (or lose a profit). This is why it has been so difficult to pass legislation that will allow homeowners facing foreclosure to modify toxic mortgages in Chapter 13 bankruptcy. We …

Category: Subprime Mortgages

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… about the need of bankruptcy reform to save hundreds of thousands of homeowners struggling to pay subprime mortgage loans and facing imminent foreclosure.

Consumer groups quoted in the article said:

"The only chance many of these (subprime) borrowers have is through declaring bankruptcy…the problem is that as currently enacted, the Bankruptcy Code favors home mortgage lenders over virtually all other secured and unsecured creditors. The amendment disfavoring protection of …

Category: Loans / Mortgages

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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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… 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 County district attorney ’s office received months ago, asking authorities to look into why so many houses in Mansfield’s Twin Creeks subdivision were foreclosed on, vacant or for sale.

Chekeelah Phelps, a mortgage broker is accused of being the head of the fraudulent scheme and it’s not her first time …

Category: Loans / Mortgages

Tags: Chekeelah Phelps Fraud Mortgage Subprime Loans

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… now victims of foreclosure, depended on the goodwill of the mortgage industry to provide safe mortgages that would allow them to fulfill their dreams of homeownership. But instead of long-term homeownership many homeowners got subprime mortgages designed to explode in cost within a few years or toxic mortgages that were never affordable to begin with. “You can refinance next year, in two years, in five years…” the homeowners were told, only to be faced with a credit crunch that …

Category: Foreclosures , Subprime Mortgages , Unemployment - Job Loss

Tags: foreclosure Real estate Subprime lending

… many potential buyers searching for foreclosure deals are once again eyeing “affordable” mortgages. But it’s important that future homeowners move cautiously because it is often these types of loans that are the most vulnerable to foreclosure. One of the pitfalls of “affordable” mortgages which often include low (or no) down payments, adjustable rate loans and larger payments waiting down the road, is that most borrowers who buy into these programs are not able to afford the …

Category: Breaking News , DFW Metro Bankruptcy , Subprime Mortgages

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… an article in the Star-Telegram, the Goldman Sachs Group which is now the owners of thousands of subprime mortgages facing foreclosure is finding itself battling homeowners in bankruptcy court.

The article said:

“Goldman spent years buying hundreds of thousands of subprime mortgages, many of them from some of the more unsavory lenders in the business, and packaging them into high-yield bonds. Now that the bottom has fallen out of that market, Goldman finds itself in a different role: …

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… the upper hand when it comes to foreclosure; but if we allowed bankruptcy courts to modify toxic mortgages in bankruptcy it would offer a comparable incentive to mortgage servicers and lenders to play fair. By allowing bankruptcy courts to modify toxic mortgages, millions of Americans facing foreclosure and other debt issues could seek bankruptcy relief, avoid foreclosure and remain in their home with an affordable and fair mortgage.

Category: Economy , Loans / Mortgages , Subprime Mortgages

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