Is A Foreclosure Legal?
Is A Foreclosure Legal?
You ask yourself this question and maybe just maybe there is some light at the end of the tunnel. Just passing on some thoughts heard around the water cooler. If you or a friend is facing foreclosure you no doubt can find in the foreclosure action a petition from the plaintiffs lender attorney asking the court to “accept a lost note or document affidavit”.
Now this statement in itself shouldn’t cause any dynamite to blow up but if you look into the actual reason for this simple little petition you will be amazed at what might be happening right before your eyes in front of the Judge and the entire world.
You see almost ninetynine percent 99 of the average citizens do not have a clue about how the real money is made in the mortgage business. In fact I would venture to say that over seventyfive percent 75 of today’s mortgage brokers don’t have a clue about how money is made in the mortgage business.
You will see ads in all of the mortgage magazines “looking for sharp loan officers” commissions up to one hundred percent 100. Now think about this just for a minute. IF a mortgage company was going to pay out one hundred percent 100 commissions how do they make any money? Confused? Join the crowd. Here is how they make their money and I mean really really big money.
Let’s just say that ABC Mortgage Company has ten loan officers and each one creates two 2 mortgages a month. ABC now has twenty mortgages at an average of twohundred thousand dollars 200000 on the table and they have paid out ALL of the commissions earned from the lenders to the loan officers. DUMB? Nah just read further on.
For many years international investors would buy US Mortgage Notes because they were looked at as one of the most secured investments in the entire world. So these groups of which might be Honda Yamaha Toyota and other financial giants would diversify their investment portfolios with secured US Mortgage Notes. For the mortgage company like ABC that had twenty loans a month and you thought they were not making any money look at what happens.
The secondary market buys those twenty mortgage notes from the mortgage company at the closing or soon thereafter. They pay the mortgage company a commission of twopercent 2 which is called a service release premium. That term is NOT known on the streets but it DOES EXIST in the industry. So on a commission of twopercent 2 and a loan portfolio of fourmillion dollars 4000000 ABC Mortgage Company gets a monthly check from the buyer of those mortgage notes to the tune of eightythousand dollars.80000 for that month. This is how mortgage companies can pay out onehundred percent 100 commissions and make tons of money.
So along comes the attorney for the mortgage company and he is suing you in court to foreclose on your home. When he petitions the court to accept the lost note affidavit he is not really telling the truth. The question arises. How could you lose a note that you did not have possession of? Do you think for one “cotton pickin” minute that Honda or Toyota would pay commissions and buy those notes without getting the original notes. That is the only paper that is negotiable.
So if you didn’t have possession because you collateralized the note which simply means that you used the value of the note to acquire an equal amount of cash and gave possession of the note to the party that put up the cash. Plain and simple. So where is the rub? Well is it possible that the lender through its attorney is possibly committing fraud on the court by stating that “the original note is lost” when in fact it cannot be lost IF the mortgage company sold it.
This makes for a very interesting conversation between folks in the mortgage industry attorneys representing both the homeowner and those representing the lenders. I would love to see a ruling on this up to the highest level. After all without proof of the debt there is no debt.
There is a lot of case law where it has been determined that the only proof of debt is the original document or a certified copy thereof. How can anyone produce a certified copy when none exists. In closing I don’t know where this thought is going to lead to or end up but I was just totally amazed when the conversation of which it was from experts in the mortgage industry started talking about mortgage notes deeds and collateralization. Today’s average person would let this go right over their heads and not know the difference
About the writer:nbsp;nbsp;Regis Sauger is a Licensed Mortgage Broker in Florida. He has written numerous aritlces on consumer credit. He has over 25000 readers of his articles.
If You Are In Financial Hardship Loan Modification Is For You
If you are a homeowner facing foreclosure due to financial hardship loan modification may be the only option for you to be able to stay in your home.Loan modification hasn’t been a viable option to avoid foreclosure for very long. Prior to March 2009 even refinancing was easier to receive for most those with good credit but as the housing crisis hit its peak the government needed to step in and make strides to save millions of homes. The Obama Administration enacted the Home Affordable Modification Program to help homeowners just like yourself steer clear of possible foreclosure.Essentially modifying your mortgage entails lowering your interest rate and spreading the mortgage out over anywhere from a five to thirty year period. Some lenders offer programs that also wipe away part of the principal but it is not available everywhere.With property values at their lowest in years and people across the country losing their jobs or being demoted modification is meant to be an assistance to those who are having financial hardship. Financial hardship is when your debt to income ratio has made it difficult to afford anything but your week to week expenses. For those in financial hardship loan modification is an option for you and only you.When looking at an application for modification lenders look at a variety of factors to determine whether you’re eligible or not. It’s worth calling your lender before filling out an application online or requesting one so you know what they are looking for. Knowing exactly what they are looking for will greatly increase the likelihood that you will be approved.It is possible to get assistance from a loan modification company if you are not confident about your application or whether you fit into the required criteria. Loan modification companies will walk you through the steps from consultation to a successful modification agreement with your lender. However; these services are not free. Most modification companies will charge you for helping with the paperwork as well as an additional fee if the modification has been a success. The fees can range anywhere from the hundreds to the thousands depending on the company or the services they provided you with.But just because you’re eligible to apply doesn’t mean you will be approved. Arm yourself with knowledge and possibly a professional and you will get much further than rushing in the dark.
About the writer: No matter your circumstances for financial hardship loan modification is something you are eligible to apply for under the new government program. If you would like additional resources and information visit the 1 loans modification spot on the net: http://HomeLoanModifications101.com
How To Get The Best Fixed Rate Mortgage
How would you like to be able to qualify for a 55000 larger fixed rate mortgage? I know it sounds too good to be true. But it’s just simple math. How about we procrastinate. It can wait a few minutes while we have a little fun.
Tomorrow you’re getting a raise. See I told you we were gonna have some fun.
If you’re anything like me you can really use that money. But first lunch. You buy. You did just get a raise after all.
Lets go to dinner. Do you like lobster? Me too.
Now the ball is rolling. Youre spending that raise already.
Buy yourself some new clothes tomorrow next week a new TV. Dont forget to save a little for a down payment on a new car.
You deserve it and can afford the monthly payments with your big fat raise.
Or can you?
Sure you can but can you live with 55k less house. WARNING: Here comes the math!
Lets suppose you earn 5000 a month and your monthly car payment is 400. Using an interest rate of 8 you just qualified for about 55000 less house because of that car payment!
Moral: Buy the house first and the car second.
Not only will you be able to afford more house but you may qualify for a lower interest rate.
Already have a car loan? Dont sweat it but dont run out and pay off that loan either. Not even if you can afford to.
When you begin talking to a loan officer ask him what would be best for your situation. No two people have the same situation so me giving you some blanket statement piece of advice about your current loans would be a waste.
You might be better off putting that cash down on the house than paying off the car. Maybe paying off your bookie is a higher priority for you now anyway.
Let your loan officer give you specific advice. Advising you how to get the most house with the least risk is his job after all.
About the writer: This article is written by Scott Jenkins of About Fixed Rate Mortgages. For more helpful advice visit his website to get the important facts about getting an accurate mortgage rate comparison and how to make mortgage rate predictions.’>