Foreclosures Help Information

Archive for August, 2009

Fannie Mae Foreclosure Attorney Fees

"Subprime rate" mortgages are deceptively appealing. They have enabled families to buy a home (usually their first home) with little money down, an immediate low, affordable interest rate, and a hope that interest rates won't rise.

From 1938 to 1968, Fannie Mae was a government monopoly, and in 1968 the federal government created competition for Fannie Mae by authorizing the creation of privately-owned Freddie Mac.

Because of the great appeal of lending to families not qualified to obtain a regular mortgage, the lenders set significantly higher interest rates (after expiration of the initial period of less than a year in which the interest rate is artificially low) than are being paid on regular mortgages.

Most of these originating lenders (including Fannie Mae and Freddie Mac) never intended to hold these mortgages. They package and sell mortgages to investors of various types. The originating lenders would generally put together a group of recently-created home mortgages (together with the promissory note and personal guarantees) and sell them as a package to investors or groups of investors often specializing in the acquisition and service of home mortgages.

Another interest obtained by the lender, and assigned to investors, is the right to take back your property in the event of a default, and (if they comply with various rules) wind up owning the property while you, the borrower, still owe them a sizeable amount on the loan, including default interest at a much higher rate, attorneys' fees for the foreclosure proceedings, costs and other expensesIt is not inconceivable that you could wind up owing far more than the principal amount of the loan and lose all interest in your property. This is a neat way for the lender or investor to have his cake and eat it too. The lender still has you owing at least as much and the lender winds up owning the property.

An Associated Press article on March 25, 2007 entitled Senator "Schumer urges more regulation of subprime mortgage rates" stated that over the next few years there is going to be "the biggest foreclosure crisis ever", unless action is taken to prevent "economic forces" from pulling the trigger.  "The subprime market is the wild west of mortgage loans, and it's time we bring a sheriff into town," Schumer said. "The first step is making sure that borrowers are protected from these usurious lenders.

Subprime lenders peddle mortgages that often require no money down and are made at "teaser" interest rates that soon rise. They target marginal borrowers with weak credit or questionable incomes who previously might not have gotten a loan at all. Schumer said an analysis by his office found that an estimated 1.8 million American families are at risk of foreclosure when the rates are reset within two years. Schumer said his bill would establish a suitability standard for borrowers so that lenders won't be able to issue a loan that the borrower cannot afford."

Further information about  the meltdown in the subprime market, look at the Wikipedia article "Subprime Meltdown" at Wikipedia: Subprime Meltdown.

 

 

About the Author:

Peter is a leadding expert on the topic of loan modification. His firm The Loan Modification Network connects homeowners with a nationally recognized group of attorneys licensed in all fifty states to assist homeowners in forclosure preventioan strategies and loan modifications. Call 800-437-2185 or go to http://www.us-loan-modification.com to learn more.

Source - About The Subprime Mortgage Metldown

Real Estate & Mortgage Marketing 6 - Making Home Affordable Dec08 Fannie Mae Loan Mod Guidelines

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Tax Foreclosures Auctions

Question: Florida Tax Lien certificate not paid after 2 year redemption period?

I purchased a Florida tax lien certificate in 2005...The redemption period ended after 2 years & it hasn't been redeemed.I found out I have up to 7 years to foreclose but need to go to County Clerk pay $200 & file for foreclosure...and then it goes into a Tax deed sale. Before I do that... my question is, what is the chance of getting the property? Property has 2 mortgages...Do the banks come & outbid & win property at auction? Is there a secondary market whereby I can sell this tax lien certificate wihtout going to tax deed auction.If I was to foreclose & win at Tax deed auction will I be responsible for other debts from previous owner? What is best course of action? Thx

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Answer: When you foreclose on the tax lien the lender will lose their security interest if they don't jump in and buy it from you. Unless you're looking at a worthless toilet of a property that's not very likely to happen. A tax foreclosure extinguishes any other liens on the property so you would not owe them if the lender(s) didn't step in and buy the lien from you.

Real Estate Tax Auctions Tax Forfeited Lands part2

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Albuquerque Foreclosed Homes

Question: foreclosed homes WEBSITE?

where can i browse forclosed homes for FREE without having to get a "free trial"...i live in albuquerque, nm

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Answer: go to www.fha.gov then do a search for hud homes for sale. There you can pick the state in which you live in and then i would suggest find a realtor to help you out with the process of bidding and advantages. Advantages like bidding 10 to 25% below the listed price and the fact that hud pays 3% of the sales price to you for closing cost assistance. Good luck the site for new mexico area is www.southwestalliance.com

www.real-estate-albuquerque.com Short Sale Foreclosures

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