How to protect yourself from predatory lending....

Predatory lending is a term that is used to describe practices made by the lenders that are unfair and at times seems like discrimination. Many people have been victims of predatory lending practices, but there are a few groups that are at higher risk.  Most targets for predatory lending have been low income people, minorities, elderly, and less educated.

How to determine if you are a victim of predatory lending

If you suspect that you may be a victim or predatory lending, there are a few telltale signs that you are prey to this growing problem.  First, there is vital information missing from your files.  For example, there are certain disclosures that should be signed and retained, and other documents that need to have a notary seal.  If there are documents in your file without seals and signatures, you need to check things out further.

If you have not received important information, like your cancellation forms that state your rights and the lender's rights, you should be on guard.  There should also be information related to your payment terms and schedule in your file.

Additionally, if you notice that you have high penalty fees if you pay off the loan early, you are being subjected to predatory lending.  Predatory lending also includes the addition of insurance or other unnecessary products with the loan.  Mandatory arbitration requirements have also been found in many incidences of predatory lending.  This contractual stipulation makes it impossible for a borrower to seek legal help when they think that there is illegal or predatory lending occurring.

Avoiding predatory lending before you close the loan

First and foremost, the best way to protect yourself against predatory lending is to educate yourself. Learn the signs and ways to deal with issues that arise.  Always check lenders with government and consumer groups.  You should know the length of time the lender has been in business and how many and what types of complaints are made against the companies.

Pay attention to what is going on during the closing process

It is equally important to watch what is going on during the whole process, including the closing of the loan.  Make sure that you know the real value of the home you are seeking.  Check all documentation and duplicates to make sure everything is signed and looks the same.  Your best option for protection is to make sure that you have a legal representative thoroughly check the file to make sure things is right.  Most importantly, if at any time you suspect something illegal or not right, report the incidence to the proper authorities. Don't second guess yourself; if it seems wrong then usually your instincts are right. 

Remember that, to every problem, there is a solution. If you are facing problem with your home loans, solutions are there. However, predatory lending is not the solution. Take help from a good loan modification company instead. They will help you out and offer you a happy life. 

But hey, why worry? If you opt for loan modification, things will come in shape in no time. 

REAL ESTATE News: An Ideal Middle Point

For nearly the entire lifetime of news – newspapers, circulars, and television reporting – there has always been an overwhelming amount of negative news in comparison to the positive reporting.  It seems almost as though the negative news gets more attention.  In most cases this is true; people want to know the bad things that are happening in the world.  The problem is that the negative things that are being reported are almost depressing and rather scary.

Bad news needs to be taken in and filed away somewhere in your mind.  You need to know what is going on so that you can prepare, but you do not need to dwell on it. There is always a balance, of sorts, in the news.  When you find one bad thing, there will always be one really good thing to help even the odds a bit.

The latest news

All of the latest news had revolved around the economy of the United States and the things that the Obama administration is proposing to help.  We have heard about real estate lending companies going bankrupt, bailouts by the government, the value of a dollar dropping, gas prices skyrocketing, and so much more.

On the flip side, we have heard just as much about new tax credits, extension to unemployment benefits, and new information that suggests that the economy is slowly starting to recover.  Even though the news is good and shows promise it does not change the fact that there are still so many Americans that do not have jobs and are losing their homes.  

Real estate news

There has recently been more promising news in the area of real estate.  The consistent rising in the number of foreclosed homes is providing a huge benefit for potential home buyers.  With so many homes available, new regulations for lenders, new tax credits for buyers, and an all-time low financing rate, this could possibly be the best time to buy a home.  It is kind of ironic.  At a time when most Americans are losing everything that they have worked for, the best time to buy a house at a really good price with really good rates appears.

There are many different opinions about the housing situation.  The consensus among the experts is that the only way to speed up the recovery of the economy is to deal with the excessive amount of houses on the market.  If you think about the bigger picture, the revenue that is earned by the sale of new homes will wind up back into the economy.

The potentials

It is a true fact that we are still smack dab in the middle of a recession; it is another true fact that there are many people who cannot afford to invest in the purchase of a home.  There are also just as many people who are stuck in the renting scene, never owning what they are paying on, and essentially lining the landlord's pocket.  The best thing that Americans can do is check out their options.  There are new options available to help first time home buyers – and do not forget about that new $7,500-$8,000 tax credit that is now available to those who decide it is time to own a home of their own.

Refinancing Changes and eligibility

In past few months, there have been many proposals and changes made for the real estate market and mortgage lending. The majority of these changes are made in response to the large numbers of homes that have been subjected to foreclosure. The troubles with the economy presented many Americans with financial troubles due to the huge rate of unemployment. The recent changes that have been made to the mortgage financing companies provides help for thousands and thousands of struggling Americans who are dangerously close to losing their homes. In addition, there have also been provisions made to help real estate investors as well. Freddie Mac and Fannie Mae are two of the leading mortgage lenders that are making such changes a reality.

The purpose

The purpose for the changes that have been made in mortgage lending for homeowners is simple. The companies are providing help in the form of interest rate reductions and refinancing to keep these people in their homes. With the help of the government bailouts, many more options are becoming available as time progresses.

Previously, it was believed that these changes would only be limited to individual home owners. Now that everything has been finalized, however, it is quite clear that real estate investors also have the same opportunities. Both Freddie Mac and Fannie Mae executives believe that by allowing the same refinancing opportunities to struggling investors that own rental properties the number of evictions will come down.

Refinancing is beneficial during the recovery of the economy. The financing rates are at any all time low. This translates into reduced monthly payment amounts and a reduction in the total amount of the debt. Refinancing is meant to provide more flexible loan terms that consider not only the economic conditions, but also the best interests of the owners and the lending company.

Eligibility requirements

Obviously the main qualifying requirement is that your mortgage(s) need to be owned by one of the two companies. You need to know what the value of your property is, and you may need to have the home appraised for the current market value. Your property value has to be at least 5% higher than your total mortgage amount that you have left. Basically what this means is that the amount of mortgage debt cannot be more than what your property value is under the current market value conditions.

In addition you need to have a near perfect payment history on your mortgage. You need to have timely payments that have been made within the last year – except of course for when the financial struggles began. So, basically if you had made all your payments on time before you got behind you are eligible for refinancing.

Requirement differences

Unlike many other mortgage lenders, Freddie Mac and Fannie Mae are not using credit scores as a determining factor for refinancing. There is also another major difference. These two mortgage lenders are not requiring that you redo your mortgage insurance.