Mortgage foreclosure scams

April 19th, 2012

Because of the real estate bubble and its aftermath, foreclosure filings have increased dramatically all over the country and have come to the forefront of national attention.  And as you can probably imagine, thieves have seen the potential for profit.  People wanting to save their homes are willing to do whatever it takes to make something happen, and because of that thieves believe they will be easy targets.   So, now everywhere you look, TV, billboards, radio, there is another so called foreclosure expert making wild claims of how they can solve all of your problems.  But, remember the old adage, “if it sounds too good to be true, it usually is”.

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Tenants living in a house that is being foreclosed have rights

April 13th, 2012

 

The Helping Families Save Their Homes Act of 2009 (Pub. L. 111–22) provides a 90-day notice requirement and additional protections for tenants in foreclosed properties. Below you will find the major provisions outlined under Title VII, Protecting Tenants at Foreclosure Act of 2009.

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Peter Ticktin of the Ticktin Law Firm suspended two times since 2009

March 30th, 2012

Recently while doing some research on the internet I ran across a blog posted by South Florida Lawyers.  It is in regards to Peter Ticktin of the Ticktin Law Firm who advertises regularly on TV.  Apparently Peter Ticktin of the Ticktin Law Firm has been suspended from the practice of law two times since 2009.  The blog appears below and here is the URL http://southfloridalawyers.blogspot.com/2010/11/peter-ticktin-says-client-mortgages-ok.html

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The KEL Law Firm gets an F grade by the Better Business Bureau

March 26th, 2012

By now you have no doubt seen one of the KEL Law Firm commercials on TV.  KEL, which is an abbreviation for Kaufman, Englett and Lynd, is an Orlando based law firm founded in 2008 that advertises in the Tampa Bay area.  Below is an article recently published in the ABA Law Journal by Martha Neil and reported in the Orlando Sentinel.

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Florida Hardest Hit Fund

March 6th, 2012

Unemployed or underemployed homeowners in Florida having difficulty paying their mortgages can apply for financial assistance from the Florida Hardest-Hit Fund.  The program was designed to distribute money the state received from the federal government’s Hardest Hit Fund.

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Bank of America Settlement

November 25th, 2011

NEW YORK, Nov 3 (Reuters)

Investors want to lift the “shroud of secrecy” over the proposed $8.5 billion settlement of Bank of America Corp’s mortgage-backed securities liability in the coming weeks, a lawyer said on Wednesday.

Dan Reilly, a Colorado lawyer representing American International Group Inc, told a New York federal judge that some investors want negotiations and documents over the deal to be made available to parties who have an interest.

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Huge Bonuses for Fannie & Freddie Execs

November 12th, 2011

Article taken from Politico: Written by Josh Boak & Joseph Williams

The Obama administration’s efforts to fix the housing crisis may have fallen well short of helping millions of distressed mortgage holders, but they have led to seven-figure paydays for some top executives at troubled mortgage giants Fannie Mae and Freddie Mac.

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What is Cancellation of Debt?

October 21st, 2011

Because of the current mortgage foreclosure crisis, many people are concerned about the issue of forgiven debt and receiving a Form 1099.  Below is an explanation of what is cancelled debt directly from the IRS website:

If you borrow money from a commercial lender and the lender later cancels or forgives the debt, you may have to include the cancelled amount in income for tax purposes, depending on the circumstances. When you borrowed the money you were not required to include the loan proceeds in income because you had an obligation to repay the lender. When that obligation is subsequently forgiven, the amount you received as loan proceeds is normally reportable as income because you no longer have an obligation to repay the lender. The lender is usually required to report the amount of the canceled debt to you and the IRS on a Form 1099-C, Cancellation of Debt.
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HAMP Loan Modifications

October 7th, 2011

Previously I wrote on the subject of loan modification where I explained mortgage lenders involved in the government bail-outs involving TARP (Toxic Asset Recovery Program) funds must attempt to qualify certain homeowners for a HAMP (Home Affordable Modification Program) loan modification.  One of the primary goals of the HAMP program is to lower the homeowner’s mortgage payment to 31% of their gross income.  For people with a regular job, determining gross income is easy.  As an example, if a person makes $15.00 an hour and works 40 hours a week, their gross annual income is: $15.00 x 40 hours x 52 weeks = $31,200.00.  You then divide the annual income by 12 (12 months in a years) which equals a gross monthly income of $2,600.00.  You then multiple $2,600.00 by 31% and you will arrive at a monthly mortgage payment of $806.00, which includes taxes and insurance.  In this example, $806.00 would be considered a reasonable payment.

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Deficiency Judgments

September 30th, 2011

Years ago it was not that common to see deficiency lawsuits involving real property.  But, because of the current mortgage foreclosure crisis, deficiencies on homes have become a real issue for a lot of people.  As I explained previously, when a person owes more on a piece of property than what it is worth, and the person is letting the property go, whether it be through a foreclosure, short sale or deed in lieu, and the lender is not being paid in full, there is a real chance for a deficiency suit.  Since second mortgages and home equity lines of credit (HELOC) almost never get paid in full, a person’s chance of having one of these types of lenders suing them for a deficiency judgment is great.  But, first mortgage lenders have the same rights and are starting to consider and sue people for deficiencies.

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