Foreclosures and Debt

The Difference Between Credit Score and Credit Report

Jacky — Mon, 25 Apr 2011 22:40:31 +0000

In our current economic condition in the United States of America, there has never been so much talk about credit scores, credit reports, bad credit and anything credit! Why, even several years ago when we began offering credit repair services to a few special clients, we had to literally take our clients by the hand and educate them about the credit and borrowing system and how it impacts their everyday lives! Fast forward to the 21st Century and we still get questions about how to know the difference between credit scores and credit reports. First of all, let’s explain what a credit report is. Basically a credit report is a history of your credit activities.You create a credit record on file at a credit bureau if you have ever applied for a credit or charge account, loan, rental housing, insurance, or even a job. Your credit record basically contains information about your income, debts, and credit payment history. It can also contain information about arrests, lawsuits and if you have ever file for bankruptcy. Just as the name says it is “a report”. As an example, take a report card that you receive from most schools that indicates your academic progress. It lists all of your performance grades for each class by letters such as “A” for excellent, ” B ” for above average, ” C ” for satisfactory and so on. Each letter grade in many schools carry a point value, for example an A is 4 points, B is 3 points which allows the school to calculate your overall grade point average, or a sum total of your grades. Once all of the grades in your report card have been reported, a grade point averge is computed in order to give you a number that represents your overall academic progress for those classes. In credit terms, that number, like a grade point average, is a credit score! Although there are many credit reporting bureaus, there are three main ones that are used by most creditors and lenders, TransUnion, Experian, and Equifax. The credit bureaus maintain a history record of your credit activity and are regulated by The Federal Trade Commission. Your rights on how your credit information is used can be found in The Fair Credit Reporting Act. Credit scores are bit more complex to define since they depend on factors that vary from each credit score provider as well as the information maintained by each of the “Big Three” Credit reporting bureaus mentioned above. A definition of a credit score is that it is a numerical expression based on a statistical analysis of a person’s credit files maintained at the credit bureaus, to represent how creditworthy a person is. Just as there are many credit reporting agencies, there are a few credit score providers, but for this article we will refer to one of the largest and widely used, FICO which stands for Fair Isaac Company. A FICO credit score ranges from 300 to 850, with 850 being best. This is just a little clarification of the difference between credit report and credit score. Remember, if you need to view your credit reports, you can get them for free without any hidden terms at annualcreditreport.com The free credit reports from annualcreditreport.com are available once a year from each of the three main credit bureaus, Experian, TransUnion and Equifax. Be sure to check back as we go more into fixing bad credit! Good luck! Contributed by: MyCreditClean.com

Banks Stop Foreclosure Temporarily

Jacky — Tue, 19 Oct 2010 22:13:07 +0000

Foreclosures are on a see-saw! One week they are at an all time high and the next, they are stopped!

Of course, it would be too optimistic to think that there would be a permanent freeze on foreclosures for families that want to save their homes. No, this is not the case. In recent weeks, large banks such as Bank of America, Ally, Chase and others were made aware that systemic faulty foreclosures may have occurred in the processing of their foreclosures on home mortgages. As a result, foreclosures were halted in up to 50 states while the banks re-examined their foreclosure processes and documents.

Let’s take a look at how we got to this point where some of the largest banks in the U.S. put a stop to their own foreclosure processes.

Starting back in September, there were reports that Ally Financial, formerly GMAC Mortgage, sent a memo to it’s employees to halt evictions temporarily on homes that they foreclosed on in 23 states across America. Initially, there were denials that a freeze in foreclosures and evictions was taking place, but later employees of GMAC Mortgage acknowledged receiving an urgent memo ordering them to stop evictions and lock outs due to foreclosures on properties of homeowners with delinquent loans.

According to Bloomberg, an Ally spokesperson, James Olecki, they may “need to take corrective action in connection with some foreclosures” in the affected states, according to a two-page memo dated Sept. 17 and obtained by Bloomberg News. Not only did Ally halt evictions and foreclosure proceedings on delinquent mortgage loans, but also they stopped cash-for-keys as well as suspended sales of repossessed foreclosed properties.

About a week later, around September 30, 2010, Chase announces that it also is stopping foreclosures in the same 23 states for similar reasons; illegal foreclosure proceedings! Now most of the states where the foreclosures were halted are in states where foreclosure proceedings must go through and approved by the courts. Chase states that most of their mistakes were caused by “clerical errors” by employing the process of “robo-signing” of documents instead of legally and manually reviewing the documents in the foreclosure process. In order to expedite foreclosures, JP Morgan Chase like other large institutions of holders of delinquent home mortgages enlisted the services of “robo-signers”. Robo-signers were individuals who quickly signed documents to speed up the foreclosure process.

In addition to states Attorney’s Generals and other foreclosure fraud litigation, many cases could be challenged and even thrown out due to these so-called “illegal” foreclosure processes as stated in the New York Times.

The 23 states affected are as follows;

Connecticut

Florida

Hawaii

Illinois

Indiana

Iowa

Kansas

Kentucky

Louisiana

Maine

Nebraska

New Jersey

New Mexico

New York

North Carolina

North Dakota

Ohio

Oklahoma

Pennsylvania

South Carolina

South Dakota

Vermont

Wisconsin

Now Bank of America first stopped foreclosure proceedings and sales in 50 states, but are on the verge of lifting it’s stay on foreclosures. More on Bank of America coming up, so check back shortly!

Citigroup and Ally Sued for False Foreclosures

Jacky — Tue, 19 Oct 2010 19:12:51 +0000

According to Bloomberg.com, Citigroup and Ally Mortgage were sued by homeowners in Kentucky for allegedly working with the Mortgage Electronic Registration System or MERS, to falsely foreclose on mortgages.

The suit, filed as a civil-racketeering class action on behalf of all Kentucky homeowners facing foreclosure, claims that through MERS the banks werre foreclosing on homes even when they don’t hold titles to the properties.

Defendants have filed foreclosures throughout the state of Kentucky and the United States of America knowing that they were not the ‘owners’ or beneficiaries of the loan they filed foreclosure upon,” the homeowners wrote in their complaint filed Sept. 28 in federal court in Louisville, Kentucky.

The banks are being accused of RICO- The Racketeer Influenced and Corrupt Organizations Act (commonly referred to as RICO Act or RICO), fraud of which Ally has denied the allegations. Read more how other cases allege MERS are “too close” to banks at Bloomberg.com!

Lease Back Home In Foreclosure

Jacky — Sat, 14 Nov 2009 00:47:29 +0000

In spite of all the good intentions that the Banks and the Obama Administration had in mind when they initiated the Making Home Affordable loan modification program to stop foreclosure for home borrowers that were facing foreclosures, there were many borrowers unable to qualify for the program. Due to the inability of the “Making Home Affordable” program to help stop foreclosure for a large number of ineligible, willing applicants, foreclosures continued to spiral out of control. Many families despite their efforts to keep their homes, were unqualified for foreclosure avoidance programs offered and had to give up their American Dream of home ownership that they worked so hard for.

Not so fast! Fannie Mae have come up with another option for slowing foreclosures, “Deed for Lease™ Program”. The Deed for Lease program announced by Fannie Mae in November, is a program designed to offer up another option for borrowers facing foreclosure who do not qualify for other stop foreclosure programs like loan modifications. The way it works is that qualifying homeowners facing foreclosure may be able to stay in their homes if they sign a lease and at the same time, voluntarily transfer the deed of the property back to the lender, also called “deed in lieu of foreclosure”. The primary aim of the Deed for Lease program is to help alleviate the problems associated with foreclosure, such as uprooting families, decaying neighborhoods and other harddships caused by foreclosures. According to the Vice President of Fannie Mae, Jay Ryan, Deed for Lease is another option for troubled borrowers facing foreclosures;

The Deed for Lease Program provides an additional option for qualifying homeowners who are facing foreclosure and are not eligible for modifications. This new program helps eliminate some of the uncertainty of foreclosure, keeps families and tenants in their homes during a transitional period, and helps to stabilize neighborhoods and communities.

A few of the general requirements to participate in the Deed for Lease program as follows,

borrowers must live in the home as their primary residence
borrower must be released from subordinate liens, i.e. second Trust Deeds etc…
documented proof that new rental rate is less than 31% of gross income

Leases can be up to 12 months, with the possibility at the end of that term, month-to-month extensions may be arranged. According to Fannie Mae, “A Deed for Lease property that is subsequently sold includes an assignment of the lease to the buyer“, which means you may get a new owner of the property. A new owner, who knows, could go in a good way or a bad way, so be sure to ask as many questions about the program. For more information about the Deed For Lease program, please click here to read the announcement of the program by Fannie Mae.

Under this new program, tenants of borrowers facing foreclosure may also participate which is a drastic change from previous programs where many tenants of borrowers in foreclosure had no recourse but eviction.

For details and information on how to qualify for the Deed For Lease program and other programs, please click here to visit the Fannie Mae site.

Talking with a Foreclosure Guru

Foreclosure — Sun, 23 Aug 2009 02:22:57 +0000

Ralph Roberts is a Realtor who has written many books about the real estate market and flipping homes, such as Foreclosure Investing for Dummies. U.S. News talked with Roberts about some of the first things a potential investor should know before getting into the foreclosure market. Excerpts:

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Housing Crisis Hits Small-Town America

Foreclosure — Sun, 23 Aug 2009 02:22:56 +0000

With all the talk about how the housing crisis has hit large urban areas—Los Angeles, Las Vegas, Miami—it's easy to overlook its effect on rural America. But according to the Charlotte Observer, the housing slowdown could be hurting rural communities just as much—if not more—than cities.

"The foreclosure problems in small-town America may be even more widespread than in cities. Mobile and prefab homes make up at least 15 percent of the nation's rural housing, and three-quarters of them were financed with installment or personal property loans rather than mortgage loans," the Observer reports. "When the owners default, it leads to repossession rather than foreclosure, and these defaults are not included in the foreclosure data."

Full article here.

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Fannie and Freddie Go After Jingle Mailers

Foreclosure — Sun, 23 Aug 2009 02:22:56 +0000

One of the many curiosities to accompany the mortgage crisis is the growing number of struggling borrowers who have elected to simply walk away from their homes instead of launching an all-out effort to prevent foreclosure. The sharp drop in home prices—which has put millions of Americans "underwater," meaning they owe more on their mortgages than their homes are worth—is one factor behind the trend. Meanwhile, since most mortgages are packaged and sold to investors, rather than held by a local banker, it may be easier for homeowners to justify walking away and sending their house keys to the lender—so-called jingle mail.

In addition, a number of companies have emerged on the Web that present foreclosure as an attractive alternative for cash-strapped borrowers.

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Loan Modification to Save Your Home

Jacky — Fri, 20 Mar 2009 00:08:27 +0000

Exploding foreclosure rates have continued in 2009 in the U.S., especially in California, Nevada, Florida and Arizona. Under the Bush Administration there were programs initiated to help homeowners facing foreclosures starting in 2007, such as FHA Secure, Project Hope and others that did not appear to produce much fruit. Foreclosures continue to spiral out-of-control up until this day.

Now, President Obama and his Administration has rolled out what is sure to be a few of many programs to address the run away foreclosure rates and help about 9 million homeowners save and keep their homes. One such program launched this month is the “Making Home Affordable” Program. The “Making Home Affordable” program, is a two-prong approach for the foreclosure crisis that involves loan modification and refinancing programs for struggling homeowners. The loan modification approach is designed to bring lenders and borrowers together to modify the terms of their loan by lowering interest rates to as low as 2 percent for five years. After the five years, rates will rise to about five percent until the loan is repaid. For eligible borrowers, they will have to provide their most recent tax return and two pay stubs, as well as an “affidavit of financial hardship” to qualify for the loan modification program, which runs through 2012. Making Home Affordable modification program guidelines are as follows;

The home must be an owner occupied, single family 1-4 unit property (including condominium, cooperative, and manufactured home affixed to a foundation and treated as real property under state law).

The home must be a primary residence (verified with tax return, credit report, and other documentation such as a utility bill).

The home may not be investor-owned.

The home may not be vacant or condemned.

Borrowers in bankruptcy are not automatically eliminated from consideration for a modification.

Borrowers in active litigation regarding the mortgage loan can qualify for a modification without waiving their legal rights.

First lien loans must have an unpaid principal balance (prior to capitalization of arrearages) equal to or less than:

1 Unit: $729,750

2 Units: $934,200

3 Units: $1,129,250

4 Units: $1,403,400

Borrowers are only allowed to have their loans modified once, and the program only applies to loans made on Jan. 1, 2009, or earlier. There wil be a temporary suspension of the foreclosure proces according to the Modification program guidelines;

Any foreclosure action will be temporarily suspended during the trial period, or while borrowers are considered for alternative foreclosure prevention options. In the event that the Home Affordable Modification or alternative foreclosure prevention options fail, the foreclosure action may be resumed.

To read the entire modification program guidelines click here. Not all borrowers will be eligible. To read about the borrowers requirements as well as the lenders and servicers requirements to use the Modification Program, please click here to be well informed as to how you can save your home foreclosure.

A Look At Life After Eviction

Jacky — Tue, 17 Mar 2009 19:16:45 +0000

Dateline’s Chris Hansen checks up on a family that was evicted from their Las Vegas Home a year ago. Look at the video and see how they are doing after the foreclosure process.

Visit msnbc.com for Breaking News, World News, and News about the Economy

Lower Mortgage Rates Wonâ€™t Stem Foreclosures

Free Financial Book by Suze and Oprah

Jacky — Sat, 10 Jan 2009 20:38:41 +0000

Best selling author of personal financial management advice, Suze Orman has teamed up with Media Queen, Oprah Winfrey to bring you a free ebook download called “Suze Orman’s 2009 Action Plan”!

Suze Orman

“Suze Orman’s 2009 Action Plan” book offers straight talking advice about various financial scenarios that may be the answer to some of your more pressing questions about your money in this financial hurricane of foreclosures, bankruptcy, loan defaults, and debt overload! Oprah Winfrey is giving away Suze’s book as a electronic download or ebook , on the Oprah.com website.

Once you click on the link above you will see two download links to Suze Orman’s 2009 Action Plan in English and one in Spanish. To download the ebook, right click on your preferred language and save to file to computer. I tried to simply click on the link, but the ebook did not open in my Firefox browser.

Once you have saved the file to your computer, you will need Adobe Acrobat Reader to open and read the ebook, get Adobe Acrobat Reader here if you do not have it already installed on your computer.Â When you open the ebook, you may want to reduce the size of the print by using the down button next to the size indicator, my default size is 221%. See image below.

reduce pdf size

Hurry and do not wait to get this free book Suze Orman’s 2009 Action Plan, according to the Oprah Winfrey website, there will be a cut off of download on Thursday, January 15, 2009! Get the Suze Orman’s 2009 Action Plan Now, and jumpstart your credit and credit rebuilding for 2009!

Loan Modification to Save Your Home