The Misconceptions on Reversed Mortgage Reality

September 27, 2010
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Most people have preconceived notions about reverse mortgages. There are many misconceptions of reverse mortgage reality.

Here are some facts to ease your fear from reverse mortgage reality:

* A reverse mortgage is a mortgage just like any loan against the home but it has special terms for seniors 62 and older.
* The lender or bank does NOT own the home – YOU OWN THE HOME, you keep the title!
* There are no income or credit score requirements to qualify.
* No monthly payments required.
* There is no limitation on how the funds can be used.
* More options – Funds can be received in monthly payments structured as needed, line of credit (with…

Mortgage Fraud Committed by a Home Builder

August 10, 2010
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Jacksonville, Florida – Marshall Craig Scott was found guilty of committing mail fraud, wire fraud, and conspiracy to commit mail fraud. Scott faces a maximum penalty of 145 years in federal prison. The sentencing hearing is scheduled for June 24, 2010. Scott was indicted on October 29, 2009.

Scott was one of four conspirators who schemed to defraud a variety of lending institutions in connection with residential home mortgages. Scott was one of three owners of American Home Builders, Inc. (AHB), who participated in a scheme to trick lending institutions into lending money to fund the purchases of new homes built by AHB.

Evidence established that the “extra money” extended by the…

Big Plan to Cut Mortgage Debt Reveal by Bank of America

July 28, 2010
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Bank of America stated that it would trim down mortgage-loan balances in so far as 30% for thousands of troubled borrowers, in what could foretell a wider government effort to encourage banks to offer debt reduction to ease the mortgage crisis.

The plan is one of the boldest moves so far to address the dilemma of millions of U.S. homeowners who owe more on their homes than they are worth. It would make it easier for the Obama administration to move in a similar direction with its present loan-modification program, though senior government officials and many bankers remain very cautious of offering to cut loan balances as the main way of…

Mortgage Rates Stuck at 4.75

July 25, 2010
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According to a rate research website, the conventional 30-year fixed mortgages are available at 4.75% for well-qualified consumers that pay a standard .07 to 1 point.

Today’s 15-yr fixed rate is 4.125%, and the 5/1 ARM rate 3.625.

The FHA mortgage rates continue to mirror those of conventional loans. Whereas FHA loans do offer similar rates, the closing cost associated with those rates is significantly higher. The 30-year fixed jumbo loans are available at 5.625% with little better rates (5.5) for borrowers with an extremely low LTV. Mortgage-backed securities prices that drive mortgage rates in the opposite direction have been flat in the month of March.

In just a week until the much…

A Multi-Million-Dollar Mortgage Fraud Scam Sends a Broker in Prison

July 9, 2010
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Bethesda, Maryland - Michael Milan was sentenced to 108 months in prison, pursued by three years of supervised release, for his role in carrying out a multi-million-dollar mortgage fraud scheme. He was also ordered to pay restitution of $3,141,409 and to forfeit $1,061,890 in proceeds he got hold of.

Milan was a consultant to various mortgage brokerage companies and connived with others to defraud mortgage lenders into lending funds for the purchase and refinance of residential properties. Milan caused his associates to prepare false mortgage applications which contained false information about the income and assets of the borrowers. Some of the mortgage applications falsely claimed that the borrowers earned hundreds of…

Home Loss has Its Consequences

July 9, 2010
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Financially distraught homeowners must consider choices that have both tax and credit implications and not only face the painful personal circumstances.

In recent times, the legal department of the California Association of Realtors® (CAR) issued a memorandum titled “Credit After Foreclosure, Bankruptcy, or Short Sale,” it is a very useful document for those who have questions about how credit is affected by the various ways in which one might lose his or her home.

The memo is basically based on the 2008 update of Fannie Mae guidelines (Fannie Mae Announcement 08-16), so it should be clear that the explanations are not completely general or unqualified.

For instance, it is said that a person…

Nearly 17 Years of Imprisonment for a Fraudster

June 21, 2010
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Haiti – Mario G. Bernadel was sentenced to nearly 17 years in prison for his conviction on multiple counts for leading a mortgage fraud scheme in Phoenix, Arizona that cost banks over $9 million.

In September 2009, Bernadel was found guilty by a jury on 19 counts related to mortgage fraud that includes mail, wire, bank fraud, and transactional money laundering. Bernadel led a two-year conspiracy involving the purchase of 37 properties using fraudulent loan documents and receiving cash back at closing.

Seven co-conspirators were also charged and have pleaded guilty for their involvement in the conspiracy and many will be sentenced in the next few months.

The case in opposition to Bernadel…

Get Your Home Loans Approved

June 21, 2010
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Nowadays, the economy tries to rebound from a four year slump, but the housing market has never been better.

Through low interest rates, foreclosures at an all time high and property values a fraction of what they were a few years ago, the real estate market has never been better to buy into than it is now. There is also government assistance to help you pay for your down payment or tax exemptions, there is no reason you should avoid taking advantage of this great situation.

Years ago the economy and especially the housing market got into trouble because no one was thinking carefully.

Banks were so eager to get as many mortgages…

Home Sales ‘Setback’ Could Hurt Overall Economic Recovery – Fannie Mae

June 8, 2010
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The largest provider of U.S. residential funding, Fannie Mae, cut its forecast for residential investment this quarter following a “setback” in home sales and cautioned on its impact on the economic recovery.

With reference to its monthly outlook, Fannie Mae also cut its forecast for 2010 mortgage originations for a second month. Residential investment is likely to drop 17.2 percent in the first quarter and rebound for the rest of 2010, Fannie Mae economists, led by Doug Duncan, said in their outlook.

For all of 2010, residential investment will grow 10 percent, slightly below the previous forecast, they said. Severe weather interrupted activity in the first two months of 2010, while the…