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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… 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 …

Tags: FHA foreclosure Kenneth Donohue Subprime Loans

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… 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 won’t budge and a mortgage payment that is now delinquent because they simply can’t afford to pay.  These are ordinary Americans …

Category: Foreclosures , Subprime Mortgages , Unemployment - Job Loss

Tags: foreclosure Real estate Subprime lending

… 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 …

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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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… 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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… to fight foreclosure, repossessions and other financial problems are being ensnared by internet lending scams that offer “high-risk loans” to people with credit problems.

The article said:

“I got on the Internet and looked for high-risk loans because my credit isn’t great,” Woolway said.

She came across a company called Westgate Financial Solutions and after filling out a form, Woolway says she was approved for a $7,000 loan. All she had to do was wire Westgate Financial …

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… Star-Telegram, 20 of the largest banks receiving government bail out funds slightly reduced their lending to consumers and businesses in the last three months of 2008.

The article said: The Treasury Department said the banks reduced their mortgage and business loans by a median of 1 percent each, while credit-card lending rose by a median of 2 percent. The median is the point halfway between the banks that lent the most and those that lent the least.

This report provides further …

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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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According to an article in the Dallas Morning News , John Reich, director of the Office of Thrift Supervision urged over 800 thrift institutions to suspend all foreclosures pending the release of President Obama’s plan designed to combat foreclosures.

The article quoted Reich:

"We’re urging them to do it, but we’re not going to try to force anyone to comply," said …

Category: Subprime Mortgages

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Peer-to-peer lending, allows individuals looking for credit to bypass traditional lending institutions and create listings online detailing how much money they need to borrow, the purpose of the loan and how much interest they are willing to pay. Also known as person-to-person lending, this source of credit is becoming increasingly common as more people find it difficult to meet the new stringent requirements …

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… debtor filed Chapter 13 bankruptcy and sued their original mortgage lender under the Truth In Lending Act.  The bankruptcy court sided with the lender and issued a summary judgment in the lender’s favor.

The details of the bankruptcy case and lawsuit:

On Feb. 20, 2004, the debtor refinanced the mortgage on her home in order to remove her ex-husband’s name from the debt. Within two weeks after the closing, the debtor received copies of the closing documents including five copies …

Tags: Delinquent Mortgage Truth in Lending Act