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It’s not news that the housing meltdown continues in 2010. Just ask any one of the millions of homeowners who are receiveing Notices of Default this year.

1. Foreclosure rates show no sign of slowing

2. Foreclosures are climbing the economic ladder, meaning higher priced homes are now coming under price pressure – even in the most sought-after locales.

3. Unemployment continues to drag the economy down. No significant relief is in sight…only a slowing of the rate of increase.

4. Commercial property in the US is the next major industry to implodefollowed by credit card companies.

5. Inflation will be a problem soon, providing additional negative pressure on the economy.

6. Bailouts proved to be controversial in many ways and are not expected to continue.

There’s no reason to expect that there will be any appreciation in home prices anytime soon. A report recently predicted that as many as 48% of homeowners will be “upside-down” on home mortgages by the end of 2010. More price erosion is expected in the coming months before the decline stops and we hit bottom. Gov’t efforts to stem the tide of foreclosures, most notably the loan modification program, just gets more scandalously slow each month. Backlogs, erroneous denial of applications, errors galore…the banks can’t hire and train fast enough to keep up. Some negotiators have as many as 300 files at one time! Real, meaningful principal reductions seem like so much hype at this point.

Homeowners are advised to use every tool available to save your home! During the housing market boom, lenders loosened underwriting standards to sell more and more loans to meet the insatiable global demand for mortgage-backed securities. Loan originators cut corners to meet sales quotas. Lenders, brokers, appraisers, Realtors, and Home Inspectors participated in what has now been labeled predatory lending. Predatory Lending is clearly unethical and some of the actions are illegal. Some violations have remedies that are inconsequential to most borrowers. Some experts estimate that MOST Adjustable-rate mortgages made during the period 2003-2008 show evidence of violations of consumer protection laws. Whether by unintentional errors or through greed and disregard for the law, the violations may now provide leverage for homeowners to negotiate a good workout solution.

Following are the most common violations.

1. Charging Fees for services that were not necessary

2. Charging more (higher points) than needed to buy-down rate

3. Selling private mortgage insurance (pmi) in cases where it was not needed

4. Including single-premium life insurance policy (one that pays the mortgage if the borrower dies) and charging the premium in the loan – without adequate explanation of the product or the need for the product realtive to laon apporval.

5. “Stripping Equity” by refinancing so many times that the fees eat up the equity and make the borrower vulnerable to foreclosure (too high DTI)

6. Not fully disclosing loan terms

7. Use of low (aka “teaser”) rates with adjustable-rate mortgages to get buyers to accept loan products that are high risk

8. Facilitating the misrepresentation of facts (income, home value, assets, etc.) on the loan application to enable the borrower to borrow more than would otherwise be the case.

9. Selling a higher rate loan when the borrower could have qualified for a lower rate

10. Preying on the vulnerable by purposely targeting minority groups, poor, uneducated, or elderly with unfair loan products

11. Selling loans that were clearly “not in the borrowers’ best interest”

12. Promising refinancing in a short period of time – as a way to get borrowers to accept bad loan terms, etc.

If I was able to show you how your lender violated laws during your loan processing and that some of the violations were serious enough to warrant a suit, would you be more confident in workout negotiations with that lender. Oh, I think so! Lenders and others were pretty well versed in the law and how to stay on the fringes. So, often your findings will not reveal big violations. But, the auditor may uncover a “pattern” of behavior thatdemonstrated disregard for your rights and that harmed you.

I highly recommend you conduct a Forensic Loan Audit:

1. your loan was taken in the peiod 2002-2008

2. if the loan came from a broker (not an employee of the lender)

3. if the loan is an ARM, neg-am, “Pick-a-Pay” Option ARM, or interest-only loan

4. if loan is a sub-prime loan (3+ points higher than the best loans at the time) or if it is an Alt-A loan

5. if the loan had any pre-payment penalties

6. if loan was a no-doc or low-doc loan

7. if you felt “hustled” or pressured or hurried to get your loan or sign the documents – you likely were a victim.

8. If you were promised that your loan could be re-financed after a very short period (1-3 years) as persuasion to get you to accept “less-than-optimal” terms and costs

9. If your loan payment, including principal, interest, tax, insurance and homeowner’s association fees (HOA) exceeds 40% of your gross household income

10. If you were forced to accept mandatory arbitrationto limit your legal rights. Legal Action – Is it worth it?

Legal Action – worth it? The loan modification process is a negotiation. The more leverage you have the more likely it is that you will succeed. Proof of lender violations of TILA, RESPA, HOEPA or state or federal consumer protection laws can give you a significant advantage. Forensic Loan Audits are professional audits of the loan and the process used to qualify you and the property for the loan. They are extensive. They are performed by auditors, specially trained in spotting violations.

Three observations in 2010

I am convinced that Forensic Loan Audits give leverage to homeowners in loan modifications negotiations. Workouts are routinely concluded faster and better for borrowers who present such information during the negotiations. Secondly, I have observed that the power isofte in the effective use of the information. That is, even common results from an audit can be used effectively in negotiations as a signal that you are serious about the negotiations and will not just stand in line…like everyone else. finally, I’ve seen that often there are what I call “low-hanging fruit”. These are clear violations of a serious nature that can be readily identified. An informed consumer can spot these violations without too much effort. After that it is simply a matter of finding a trustworthy auditor. More on this topic, next time.

Want to find out more about actually getting loan modifications? Visit Rockwood’s site about DIY Loan Modiification at Home Loan Modification Click here to get your own unique version of this article with free reprint rights.

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If you’re looking for credit repair secrets, here are 5 negotiating tips. They work regardless of how good or bad your credit might currently be. Let’s get started.

Tip #1 Ask

The credit card industry is competitive. They know it too. You can switch from one company to another with a phone call. They want to keep you as a customer so they’re willing to make all sorts of offers if you just call and ask. If you need a reason, tell them because you’ve been a good customer. If that’s not true, tell them you need a better rate to help you financially which is true no matter where you are financially.

I know one person who called her credit card company to close the account. She was wanting to pay down her debt and didn’t want to think about the possibility that she might use the card again. The company made her all kinds of offers from lower interest to lower payments. It reminded me of an outright settlement. In this economy, creditor are becoming more flexible because it’s harder to make the same profit they did before.

Tip #2 Manage your balances well

When you have additional spending limit on your cards, you can do a balance transfer if one card doesn’t give you as good a deal as you’d like. If you’re wanting to extend your credit lines, the best way to do that is to maintain a balance of around 30% of your limit. That way the creditor is making money on interest and can see you’re handling it responsibly.

Tip #3 Get creditor to fight over you

Having a better deal somewhere else is the easiest way to get a good deal. Credit card companies know they are a dime a dozen and will give you whatever deal necessary to keep you. If you can make a balance transfer out of their account, they’ll be more willing to work with you. If not, make the transfer and then see what kind of deal they’ll give you to get it back.

Tip #4 Maintain better credit

Hopefully this goes without saying. The better customer you are, the better terms they’ll give you. If something happens and you won’t be able to stay on time, consider whether it makes sense to only fall behind on some of your accounts. For example, if you have a zero percent interest rate credit card, you might want to stay current on that one and let the rest slide.

Tip #5 Do the math

There are more things you can negotiate than just the interest rate. When assessing the value of an account, consider any additional fees, any bonuses for using the card, if a low rate is temporary, etc. You can even ask to have negative items removed from your credit report if you ask. The only limit is what you’re willing to ask for.

At the end of the day, the key to negotiating is to know where you are and where you want to be. Then get out there and keep asking until you get what you want.

Find out how to do your own credit repair without an agency. Visit www.creditrepairsecrets.org for free credit repair secrets.

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There are barriers to filing for Chapter 7 bankruptcy protection and receiving the benefits of a financial fresh start and putting an end to harassing creditors, and wage garnishments. Requirements for filing a Chapter 7 bankruptcy include:

- Within the last 180 days you completed a credit counseling course on the internet, on the phone, or in person from a counseling agency approved by the Court;

- The state in which you are filing must have been your place of residence for the previous 90 days. If you have not resided in the state for 90 days then you may file in the state where the majority of your assets have been located for the last 180 days or where your principal of business is located;

- A previous bankruptcy has not been dismissed within the last 180 days for (1) voluntary dismissal after a creditor has filed for a Motion of Relief From Stay, or (2) failure to obey court orders or failure to appear before the court;

- Not having filed a Chapter 7 within the last 8 years where a discharge was received;

- Not have received a discharge in a Chapter 13 filed within the last 6 years. This does not apply if you paid 70% or more to unsecured creditors in your Chapter 13 Plan;

- Average monthly income over the last 6 months is less than the median for your county OR the average monthly income over the last 6 months minus allowable expenses is not enough to pay one quarter of your debt over the next 5 years;

- Not be a financial institution, a railroad, nor an insurance company;

The requirements for who can and cannot file for Chapter 7 bankruptcy protection are found in the federal bankruptcy code. Failing to meet one or more of the requirements does not necessarily mean that you cannot receive bankruptcy protection, it may mean that you have to file a petition under another Chapter of the Code.

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Home foreclosure is a not the best situation to be in. Once the notices start coming and the phone starts ringing you can’t really keep hiding. Your going to hear from lots of people who claim that they can help you. These calls are from organizations and companies that have their own motives and goals. Beware, in desperate times even a good sales pitch may sound like a miracle. Lets take a look at what they really want.

There are a number of people who are going to send mail or call. Most likely they were able to get your address or your number from the court system. Due to the legal nature of the process your information will be deemed as public and be published. This means anyone with internet access can find you. In some cases they may get your name from a list that was generated on the web…most of these lists go to investors/ investment trust companies.

The most common people or organizations that are going to give you call:

Swindlers/Con Men

These are the ones you have to be aware of. (And there are a lot of them out there.) All of them offer promises and refer you to a chapter 13 attorney for collect a fee. In worse cases, they will take the deed of the house and force you to pay rent while leading you to believe that they can save your home and in the end you loose it all because they do nothing but take your “rent money” and skip town.

This is the most common problem you will face besides the actual foreclosure.

Mortgage brokers

They can help you by refinancing your property. However, these loans may have higher interest rates and closing costs than what you payed at the bank. Some may even charge you more to see how much you are willing to pay and take advantage of it. Not all brokers will rip you off. Over the last several years mortgage brokers have gotten the short end of the stick in the press. Shop around and ask family and friends for a referral if you decide to use a broker. (and just for the record..no I am not a mortgage broker)

Attorneys

This is your last resort. Most attorneys don’t really care about the situation you’re in or give you the attention you need.

Mortgage negotiators/Mortgage “Mod gods”

They negotiate repayment schemes with mortgage lenders. You can negotiate with the bank but in case it fails you can ask the help of a professional to get the plan approved. Some banks may impose a much more demanding plan and these professionals can get you a more favorable agreement.

Hard money lenders

These people are normally wealthy and are looking to loan you money, to cover your mortgage, at a higher interest rate. In some cases they will over to buy your house and lease to own it back to you…for a higher interest rate of course. (this may not be a bad option IF you can arrage something that works fr your financial position)

Mortgage/note holder

Your mortgage holder will call you to reinstate your house. This can be a good option depending on your situation. These are usually offered by mortgages backed by the government.

Whoever calls you or wherever the mail comes from be aware and think things through. You can stop a home foreclosure with the right options applicable for your situation. Do not throw in the towel if you don’t have to.

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If you want to improve the odds of getting your loan modification approved, we’ll go over a few tips to do that. You can increase your chances of success by using some of these little known secrets. Let’s discuss a few of these tips.

Financial hardship is a key factor to show when applying for mortgage loan modification. You have to write your lender a financial hardship letter. A hardship letter details and explains your circumstances. You also need to tell your lender what steps you’ve taken to improve your situation. Finally, tell the bank you’re committed to continuing being a home owner.

If you set up a new home budget and free up some money, this gives you more space for monthly payments. You have to be aware of your expendable income to be able to define an affordable monthly payment. Reassure the banking company that can pay that amount now and will be able to keep it up in the future.

Inform your lender about your financial position by filling out the essential financial statements. Never try to leave out information and be meticulous when filling out the forms. Make it easy for the lender by providing your financial statement and a financial statement offer for the future.

Be sure to do your research and plan ahead when applying for mortgage loan modification. As soon as you’re aware of the approval criteria, you dramatically step-up your chances of success. When applying for mortgage loan modification, know that you need to hurry. You’re responsible for doing the required steps in order to save your house!

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Whenever you read a general article about mortgages the term foreclosure is oftentimes accompanying it. This recession in the U.S. today has sacrificed the jobs of millions and caused unemployment to skyrocket. Millions are at risk of losing their homes right under their feet. The news doesn’t provide much comfort too. What can we do as Americans in this stressful declining mortgage market?

In order to find a solution to the problem one needs to understand what a mortgage is. Webster defines mortgage as, the pledging of property to a creditor as security for the payment of a debt.Which can also be taken as, you apply for a loan through a bank, receive that loan to buy your property and have to pay funds back to the bank. If in any circumstances you are to default on your payment to the bank that trusted you with their funds they can take your home. There are several avenues you can take to avoid such action being taken against you. You can choose to refinance your home, apply for a reverse mortgage, or receive a loan modification.

Most people choose to refinance their home versus any other option. Millions of people refinance their property aspiring to get a lower yearly interest rate. When considering refinancing your property read all fine print with your contract and try to obtain a rate between 2-4%. Refinancing is supposed to drop the rate of interest you pay on your property yearly and therefore reduce your monthly mortgage rate.

Are you at least 62 years old, own your home, and have a low mortgage balance remaining on the home you reside in? Reverse mortgage will probably be the best avenue you can take. Reverse mortgages allow homeowners to change equity in their homes over to cash and pay off their mortgage all together. This home loan never has to be repaid and is tax free because it’s included as your yearly income. The only downside to reverse mortgage is the debt on home increases, equity diminishes, and the upfront costs and expenses can be pretty expensive.

A new trend in helping to solve the foreclosure dilemma is loan modifications. Loan modifications enable you to find an affordable mortgage payment for your situation. You negotiate terms on your current loan instead of having to reapply with different companies. Loan medications save time and money. In order to be able to obtain a loan modification there are a few standards that must be met. Loan modifications were put in place for people going through a financial hardship for example unemployment. The unemployed must provide proper documentation outlining the hardship, you must be at least three payments behind on your current mortgage, and have not filed a bankruptcy. If, you feel you may qualify for a loan modification contact your current lender or service owner for your property.

There are several solutions to solving your mortgage issues. The best advise to give is to weigh the pro’s and con’s to each method mentioned. And determine which method is right for your current situation.

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When the banking companies started to sink, many homeowners needed to look for an alternative to foreclosure. This option is loan modification.. In order to be able to pay the monthly costs, you request your lender to change the terms of your mortgage permanently. That, in short, is loan modification.. The change of terms oftentimes means lowering interest rates. Because of interest lowering, the duration of the mortgage is often increased.

Because of the greater demand for mortgage loan modification, a lot of swindles are surfacing right now. Scammers will try to get an upfront payment from you, promising that they can help you out. If you’re not careful, you may lose your shirt with one of these cons.

Fast results and guarantees are exactly what most people are looking for when trying to do mortgage loan modification. The wrong kinds of companies will play to these desires and promise you all kinds of things to get you to sign up with them. Because the loan modification is not in charge of the decision, they can’t guarantee anything about the outcome.

It takes a month to two months for a lender to consider your loan modification request. The fraudulent loan modification companies will promise anything, because they know they will never have to make good on their promises. They don’t care about anything but the upfront payments.

Don’t be lackadaisical in finding out facts about the company you want to deal with when doing mortgage loan modification. Don’t rush into signing with a company that doesn’t feel entirely right. There are enough of those around, and you need to be careful who you give your money.

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Now, let’s take a look at some ways to increase the chances of obtaining a loan modification You can increase your chances of success by using some of these little known secrets Let’s see a couple of these tips.

If you want to get your mortgage loan modification approved, you have to prove financial hardship. First, write a financial hardship letter to your lender. In this letter, you explain your financial problems. Also, make sure you tell your bank what measures you will take to improve your state of affairs. Finally, write that you are committed to staying a home owner.

Free up money by designing a new home budget. To determine a healthy monthly payment, you need to know your expendable income. Reassure the bank that you’re able to pay that monthly amount now and will be able to pay it in the near future.

Fill out the required financial statements to let your lender know about your financial position. Don’t leave out information and be thorough. Offer your financial statement and a financial statement for the future to make the lenders job easier.

If you’re applying for mortgage loan modification, plan ahead and do your research. If you know the approval criteria, you drastically step-up your chances of success. Know that time is not your ally when doing mortgage loan modification. You’re responsible for doing the necessary steps in order to save your home!

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Looking for a service that offers help in solving your debt problems? It always seems like a reasonable solution to ask for professional help when your bills turn to unmanageable levels.

Just a few words of precaution before you transact business with any financial company; check the background of the business including the history and performance with your state Attorney General, the local consumer protection agency, or the Better Business Bureau. They will provide information if there consumer complaints on file associated with the firm you are transacting with. Seek for their license detail to operate on your state with your state Attorney General as well.

Most firms charge a fee to offer the necessary help with your situation. Others will only be after your money and charge you unbelievably high fees yet fail to follow through on the services they recommend. Again, check the history of the firm you are to do business with as they may have complaints in the past.

Other companies may misrepresent some terms of a debt consolidation loan or fail to explain certain costs associated with certain deals. They may even neglect to mention that you are signing over your home as collateral to an agreement. Only deal with well-trained and certified counselors in this case. The stakes are too high for you to ignore these crucial information.

I saw firms advertising voluntary debt restructuring plans. However, they may not actually clarify that the plan is in fact a bankruptcy filing. Some firms are obscure with all the details or will not tell you everything unless you ask. Others are simply apathetic about help you get through this complex process.

Moreover, there are companies guaranteeing a loan if you shell out an advanced fee ranging from a hundred to even a thousand dollars. These advance-fee loan guarantees may be illegal and are worth avoiding.

While it may be true that legitimate creditors offer credit extensions through telemarketing and require you an advanced appraisal fee, they never should guarantee clients to be ascertained of a loan. You should be cautious of claims from companies appealing to consumers with poor credit histories. At this moment, be wary and take time with your every step. You can’t afford another costly mistake this time.

For more information on financial directory, get FREE Articles Tips at DollarGuides.com. Get debt-free today with tips on how to get rid of debt here. Start improving your personal finance today.

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When starting your first session with your financial counselor, here are some tips what to ask to help you search for that counselor you can trust. Ask what services he or she offers. Look for a counselor from a reputed non-profit organization offering a wide range of services. This can include budget counseling to debt management classes. As a warning, never make a deal with organizations pushing for a certain debt management plan as the only option before they even spend the time to analyze your financial situation.

Do they offer information and educational materials for free? Avoid those organizations charging you even for preliminary information. Can they help you develop some kind of a plan to avoid future financial problems? If they don’t, they are not truly concerned with your situation. Ditch them.

Ask for their rates and other fees. What are the terms? Do they require monthly fees? Get a written price quote to have a reference later. Inquire if they are willing to help you even if you can’t afford to pay the fees. If they are not even willing to help you right now when you have financial problems, how much more in the future? Look somewhere else, help is available with so many options today.

Ask if a written agreement or contract will be made between you and the organization. Never sign anything first without reading it. Ensure that verbal promises during your conversations are well recorded and in writing.

Always seek information of their legitimacy. Are they licensed in your state? What are the qualifications and designations of the counselors? They should have at least been they accredited by an outside organization. Try to deal with organizations whose counselors were trained by non-affiliated parties.

Expect to be treated with confidentiality as you are dealing very delicate information. Query on the assurance that your personal information like your address, phone number, and financial information will be kept secure.

And lastly, ask how the employees are compensated. Inquire along the process if they are paid more if a client signs up for certain service or if one makes a contribution. A positive answer is a red flag and a good signal for you to exit the signing of that deal.

For more information on financial directory, get FREE Articles Tips at DollarGuides.com. Get debt-free today with tips on how to get rid of debt here. Start improving your personal finance today.

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