Posts Tagged ‘facing foreclosures’

On the heels of the devastation left behind by the foreclosure catastrophe are slinking in the vultures and jackals to pick the bones of the dead and dying. These are the scammers – aptly called scam artists for their ability to act out the part of genuine helpers.

Their first suggestion is that the foreclosure victim should never press forward with filing documents, as this will make them lose whatever chances they have of saving their houses.

Bill Postmus, the County Assessor of San Bernardino County is alerting the local people facing foreclosures to be aware of these scammers who are trying to take over the property themselves. They do not have any conscience and are absolutely without morals. They make a living by preying on the vulnerable and unsuspecting house owners who are somehow embattling the foreclosure waves and trying to keep themselves afloat. These scams were first noted in many north California counties.
As a precautionary measure those facing foreclosure sales are advised to file their deeds in the recording office of the county while conveying a percentage interest to any third interested party. The deed shows a maximum transfer tax of $1,000 that will be required.

The troubled house owners are being repeatedly told that by transferring a part interest in the property they can avoid foreclosure. It is expected that the owners will record the documents and then deposit the amount into a third party checking account. But Postmus is warning that this will never halt the foreclosure process.

The only way to avoid scams is become aware of the evil and be on the alert. Reports of such duping are on the rise. The District Attorney of San Bernardino started off investigations on these foreclosure-prevention scams focusing on the vulnerable foreclosure victims. More awareness programmes must be generated.

It is the law of Nature that scavengers clean up the mess left by an epidemic. As such there is nothing to be surprised about rats emerging from dark holes to eke out a living from the stench of death. Scavengers have always been a despicable part of life and it is not surprising that scammers will try to penetrate into this danger zone and fatten themselves. What is surprising is that too late society is waking up to this peril and issuing warning notices. Already a lot of damage has been done.

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In a statement the former mayor of Cleveland George Voinovich expressed his grave anguished concern for the ongoing foreclosure crisis in US. He is a senator from Ohio (R-Cleveland) and a former Governor.

He is especially concerned about the repercussions of the foreclosure crisis. Cleveland is his hometown and it is one of the worst affected zones. In his own locality three houses have been abandoned in front of his eyes – the owners have walked away leaving the properties to the mercy of vandals.

He had pitched in with others to revitalize the region with new sidewalks and saw to the repairs and maintenance works. For house construction he initiated a special tax abatement incentive. Now foreclosure clouds darken these same regions. One such locality is Slavic Village. It has the dubious distinction of ranking first in the foreclosure race. So on a very personal level he understands and realizes the sting of the foreclosure tornado that is sweeping through Ohio.
According to latest reports released by Mortgage Banker’s Association the foreclosure crisis is at its worst with Ohio being one of the hardest hit by it. It stands first with 3.72% of the loans slipping into foreclosures. The new law will allow three-year exception to the matter of debt forgiveness on house loans. There is also a clause that allows house owners to deduct mortgage insurance payments from taxable income.

An overwhelming majority by the House passed the second law, Expanding American Homeownership Act. By it Federal Housing Administration loan limits have been increased so that those facing foreclosures or resetting of interest rates will be easily able to refinance and move into safer harbours. The minor differences between the House and Senate bills will be ironed out and sent for the President’s signature in December.

The bill will give a fillip to the real estate market by bringing down the down payment condition from 3% to 1.5%. Consequently millions of Americans for the first time will get an opportunity to have a house of their own. This law also envisages a new counseling programme that will benefit those in the low and middle-income bracket.

Both pieces of legislation will be tools in the hand of the individual to preserve the sanctity and security of the home and the neighbourhood. There are still things to be done but a beginning has been made.

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Statistics is pouring in. Analysis varies Foreclosure numbers fell in November from what it was in October making many opine that the peak has been reached and the process of climbing down has begun. Has the market found something to stand on? According to predictions ‘about $500 billion in adjustable-rate-mortgages are due to reset at higher levels in 2008’.

Perhaps it is too early to be optimistic. This fourth quarter is going to be a trial for many what with fuel prices rising and house prices falling. Some consumers have tricked the gloomy predictions of the economists and somehow managed to save their houses. People are thinking before splurging. According to figures households earning less than $50,000 are not spending as much as they used to during Christmas in previous years. Only those with incomes above $100,000 are keepings sales counters running. But the majority of those in the sub-prime cannot cut enough to survive and yet save their houses.

If the study reports are that foreclosures are falling because of people saving then too it is not good news for all. It means a fall in sale of cars and spending with the credit card. That would now have negative impact on the general economy. A slowing down of consumer activity would help the foreclosure front but disable the GDP on another point. There is not much of a choice between skipping Christmas and keeping the house!

These questions keep going round and round.. For those facing foreclosures, for those having faced it and living in cramped quarters or state homes, for those surrounded by abandoned houses there is no time to wait for answers to come in for tomorrow’s solution. The ship is sinking and the positive point is that all are going down and therefore the lenders too are bestirring themselves to do something. The same holds true for the government that looks aghast at the disgruntled electorate rising by the numbers. Nothing will happen overnight. The soil of a land scorched by fires gets rejuvenated and rich to bring forth a new rich harvest. So too perhaps the nation and the world needed this lesson that thrift pays. The debt culture has been the curse. It has brought about a complete change in values. Economy is not plastic money or facts and figures – it is the people; people with values.

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The allegation is that for a decade Stonebridge Landings never paid fees to the master community. As a result a huge chunk in south east Orange County is facing foreclosures sandwiched in a tussle between two house owners associations. Of the two the big brother filed a suit to nab 74 houses into the foreclosure net because of unpaid dues for as long as 10 years. $5,500 is to be contributed for the maintenance of common areas.

Both sides are slinging mud at each other. Most probably foreclosure will be avoided but 74 house owners of Stonebridge Landings 1, could be slapped with a special assessment amounting to nearly $1,000. The developer is being blamed by some for agreeing in the covenant that Stonebridge Landings would pay $5,500 annually to Stonebridge Village Homeowners Association for the maintenance of common zones like entry sign, walls etc.
The president of Sentry Management, (hired for managing assessments) Jim Hart, says that from the very beginning it knew about the fee. But a succession of Stonebridge Landing Homeowners Association boards does not agree and are demanding to see the invoices from Stonebridge Village. Hart argued that the Stonebridge Village does not have to justify matters since the figure is in the covenant.

Drake, a house owner says that had they knows about it they would have definitely paid. The irony is that if the fee had been equitably spread out then each house owner would have had to pay only $74 per year. For the first six years of his stay Drake’s annual assessment amounted to $108. This year it rose to $178 but his share of $5,500 was never included.

The Stonebridge Village association is hoping to recover about 60% of arrears after an agreement is reached at. Including interest and legal fees the amount totaled to more than $84,000 in May 2007. Olsen, their legal representative, said that none of the house owners have been served with foreclosure notice because all are optimistic about a settlement. He suggested that $945 would cover a part of the debt together with next year’s dues. The house owners would be allowed five to six months to pay. Some have already paid their share of $1,200 because of their need either to refinance or sell the unit. If the settlement reaches at a lower figure the extra amount would be refunded.

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In the raw the jackals and vultures move in when the big predators have had their fill. It seems to be the same today in human society – and that too in America. Victims facing foreclosures are in a traumatized state – ready to clutch at any straw of hope. They cannot think rationally and calmly. This is the ideal scene for the scammers to enter the stage and pick the bones. With foreclosures on the rise it is a party out there for those who have a taste for rotten carcass. The foreclosure scammers are gorging and belching. Beware!

The wolf in sheep’s clothing comes knocking with sweet words of help. They promise the sky. But instead of succour the foreclosure victims find themselves not only without their foreclosed homes but also with slimmer purses – notes and coins they could have ill afforded to have lost during this severe weather.

Reports about sham rescue schemes from about all the 50 states have been pouring it – reports BBB. The number of foreclosure scams complaints rises in proportion to the number of foreclosures. Thus the maximum number is reported in the worst affected places like Georgia, Colorado and Ohio.

The line of action follows the route of email and posting of printed offers. It seems to be the same story repeated everywhere. There are even eye-catching web sites to trap the unwary. Treat personal approach with extreme caution. Usually hand written notes are pushed inside mailboxes overflowing with messages of concern for the foreclosure victim’s plight. No documents should be signed that writes away the title deed. Get the documents scrutinized by someone who knows and can be trusted – preferably a legal advisor. The helpers offer to negotiate satisfactory terms to stop foreclosures. The assurance is that if the process fails then the fees will be refunded. Some have been desperate enough to pay $1,300. Neither was action taken nor was the money returned – only precious time was lost.

The general advice to mortgage victims, from all responsible quarters, is to contact BBB – which is available on the web. A reliability-report is available for free. It is also relevant to remember that those who offer help should have a license from the state’s Department of Finance. A license from Real Estate Commission is required for those trading in property. The bottom line however is – contact the lender directly and immediately.

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The South Side Bank, Shore Bank is a bank with a difference. It lays great stress on community welfare. It has started a new high-interest account on the Internet to attract those savers who are socially committed. Long-term gains are tied to the health of the land and the people who live on it. It is foolish to ignore this fact. The bank is of the opinion that there are many who may be termed as responsible investors in equities.

Joseph Hasten joined the bank as its CEO last spring. He feels that there are many who have kept their investments in market or bank funds but may be persuaded to try out the offers of Shore Bank. Hasten wants to use these deposits to hasten development of community by taking head on the problems of the lending and borrowing. The focus is on 10,000 borrowers in Chicago South and West who are facing foreclosures. Refinancing and debt consolidation schemes are part of the strategy to bail them out.

Within the next year and a half these borrowers will be facing increased high rates of interest. Time is running out. The community needs immediate help. The country is sitting on a socio-economic time bomb kicked off by the sub-prime market that might explode any moment unless properly diffused.

Shore Bank’s new Saving Account, ShoreBank Direct offers an annual interest of 5%. It is more or less at par with other competitors like ING Direct paying 4.5% and EmigrantDirect offering 5.05%. The country’s average for passbook accounts is 0.44%. ShoreBank has provisions for clients to use a pc to route funds from any checking account to that particular Savings Account. Hasten is optimistic about raising $350 million. Since the past few years a number foundations and large corporate bodies have already come forward. Now the focus is on individuals.

The project is drawing attention. Forty nine year old David Farr is a resident of Ravenswood. He is by profession an architect and planner working for environmentally sustainable ventures. The online banking account attracts him for two reasons. He has a penchant for ShoreBank and secondly he is averse to going personally to banks. The idea of leaving his desk is anathema to him. So the basic plan of getting transactions operable through the computer is definitely interesting and likable.

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No less a person than the Attorney General of Massachusetts, Coakley, came down heavily against pretentious rescue teams that tempt house owners facing foreclosures to sign over their ownership to temporary buyers nursing a false hope that in the long run they will not lose the roof above their heads.
The recent surge in foreclosures compelled the office of the Attorney General to take emergency measures against clever tricks that are impoverishing many. The borrowers income is often falsely inflated to make matters simple. As many as four lawsuits have been filed against firms that tempted owners to hand over property deeds to ‘straw purchasers’. Reviews show that recently there have been several cases of similar firms that never keep their promises. The Consumer Protection Division of the Attorney Generals’ office is of the opinion that in fact there has been no single instance of them coming forward with a genuine helping hand. These firms are riddled with fraud and abuse. About a dozen of these so-called rescuers operated in Massachusetts.

Coakley’s is however in the dark about similar steps being taken in other states.
The ban would spell civil penalties only for those firms that worked for profit. It will not hamper the activities of genuine non-profit housing groups. Temporary ownership is taken to allow the victims time to solve the problem. A way out is to allow property transfers to extended family groups.
The regulation did not come in the way of legitimate bailouts wherein the lenders relax terms of repayment and offer new mortgages, which does not involve surrender of ownership.
Massachusetts Mortgage Bankers Association welcomed the move of the Attorney General and had no reservations about it curbing legitimate operations.
Coakley said that she had to use emergency powers to impose immediate bans on foreclosure takeovers because of an alarming growth of such scams. There was a jump of 70% from last year in the state. Massachusetts had always had a low rating but this high brought it at par with the national ratings. After ninety days the ban could be made into a law by state legislators following public hearings.
Coakley’s office is also engaging voluntary attorneys to help foreclosure sufferers.

The Attorney General, Secretary of State and other lawmakers have suggested a string of legislations to check foreclosures and its snowballing effect on real estate prices and sub-prime facilities for helping needy borrowers.

No less a person than the Attorney General of Massachusetts, Coakley, came down heavily against pretentious rescue teams that tempt house owners facing foreclosures to sign over their ownership to temporary buyers nursing a false hope that in the long run they will not lose the roof above their heads.
The recent surge in foreclosures compelled the office of the Attorney General to take emergency measures against clever tricks that are impoverishing many. The borrowers income is often falsely inflated to make matters simple. As many as four lawsuits have been filed against firms that tempted owners to hand over property deeds to ‘straw purchasers’. Reviews show that recently there have been several cases of similar firms that never keep their promises. The Consumer Protection Division of the Attorney Generals’ office is of the opinion that in fact there has been no single instance of them coming forward with a genuine helping hand. These firms are riddled with fraud and abuse. About a dozen of these so-called rescuers operated in Massachusetts.

Coakley’s is however in the dark about similar steps being taken in other states.
The ban would spell civil penalties only for those firms that worked for profit. It will not hamper the activities of genuine non-profit housing groups. Temporary ownership is taken to allow the victims time to solve the problem. A way out is to allow property transfers to extended family groups.
The regulation did not come in the way of legitimate bailouts wherein the lenders relax terms of repayment and offer new mortgages, which does not involve surrender of ownership.
Massachusetts Mortgage Bankers Association welcomed the move of the Attorney General and had no reservations about it curbing legitimate operations.
Coakley said that she had to use emergency powers to impose immediate bans on foreclosure takeovers because of an alarming growth of such scams. There was a jump of 70% from last year in the state. Massachusetts had always had a low rating but this high brought it at par with the national ratings. After ninety days the ban could be made into a law by state legislators following public hearings.
Coakley’s office is also engaging voluntary attorneys to help foreclosure sufferers.

The Attorney General, Secretary of State and other lawmakers have suggested a string of legislations to check foreclosures and its snowballing effect on real estate prices and sub-prime facilities for helping needy borrowers.

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