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New Consumer Protection from Predatory Loans

February 14, 2013 by  
Filed under Blogs, Real Estate

by: .
TILAs of January 10, 2013, the CFPB (Consumer Financial Protection Bureau) amended Regulation Z, more commonly known as the Truth in Lending Act (TILA). The amendment to regulation Z, called the “Ability to Repay” rule, requires creditors to make a reasonable determination whether a consumer is able to repay a loan before proceeding with any transaction.

This new rule will protect consumers from irresponsible and possibly fraudulent mortgage lending such as “no doc” and “interest only” loans which contributed to the housing collapse in 2008 and put many homeowners in foreclosure.

Finally, the CFPB proposed a new category of loans called “Qualified Mortgages”, which are mortgages where borrowers are highly protected from deceptive practices. These loans exclude programs like negative-amortization, where the monthly payment does not cover the accrued interest rate and the loan balance actually increases every single month.

Consumers should be able to trust the American dream of home ownership without worrying about losing their homes, getting buried in debt, or damaging their credit.

If your credit suffered as a result of predatory lending, let CreditFirm.net help you get you back on the road toward credit recovery.

 

Why Choose CreditFirm.net?

Assurance. Our Credit Repair process was developed by experienced attorneys.

Speed. Documents are typically processed and sent out for investigation within 5 days.

Support. Award winning customer service guarantees your satisfaction.

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How to Fix Bad Credit to Buy a House

by:

A good credit history is very important these days.

Especially if you plan on buying a home.

Consumers with good credit scores easily qualify for mortgages, and save hundreds of thousands of dollars by getting low interest rates. On the other hand, consumers with bad credit have a lot more difficult time obtaining mortgages.

Individuals with bad credit end up with high interest rate loans, large down payment requirements, and very often get denied for home loans altogether. But fortunately, bad credit doesn’t have to be a permanent problem. There is a solution for bad credit which will help you qualify for a mortgage loan in the future.

Instructions:

onePay your current bills/debt on time. If you’re struggling to pay your bills on time, you will need to create a budget  which outlines your income and all of your expenses. Cut back all non essential expenditures and make sure that you do not make any late payments.
twoMake payment arrangements. If after cutting back your expenses your income still can’t cover your bills, contact your creditors to work out alternative payment arrangements and make sure to make all payments on time per your agreement.

threeReduce your debt.  Debt is kryptonite to mortgages. A high amount of debt lowers your credit score and increases your debt to income ratio (DTI), which makes it more difficult if not impossible to get financing. Pay down your debt, start with your credit cards and pay them down until the balances are no more than 30% of the credit limits. Then, pay down your debt to get your DTI down to 31% or less.

Repair your payment history. If you have derogatory accounts such as late payments, collections, charge-offs, repossessions, etc… appearing on your credit report, you will need to repair your credit history.  Payment history accounts for 35% of your credit score and removing these types of accounts will help increase your chances of getting a loan. You may either fix your credit yourself or hire a professional credit repair agency like CreditFirm.net to help you fix your credit report.

 

Why Choose CreditFirm.net?

Assurance. Our Credit Repair process was developed by experienced attorneys.

Speed. Documents are typically processed and sent out for investigation within 5 days.

Support. Award winning customer service guarantees your satisfaction.

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No-Doc/ Stated Income Loans Are Back!

August 17, 2012 by  
Filed under Blogs, Real Estate

by: Michael Creditfirm.

approved-green

Looking to Buy a house but can’t prove income?

A few years ago, your loan officer would have steered you toward a “no doc” or “low doc” loan where you would have to provide limited to no information about your income. But those loans are pretty much dead. Or are they?

Joe Kelly, president of ArcLoan.com, a national mortgage firm, says that no doc loans may be available from “portfolio lenders,” such as credit unions or community banks.

A Portfolio Lender is a company that not only originates mortgage loans, but also holds a portfolio of their loans instead of selling them off in the secondary market.

Portfolio Lender requirements for a no doc loan:

  • Very high credit scores (720 and up)
  • No Derogatory marks on your Credit Report
  • Low LTV (loan-to-value)
If you are interested in doing a no doc/stated income loan. Contact your Local Community Bank or Credit Union.

Why Choose CreditFirm.net?

Assurance. Our Credit Repair process was developed by experienced attorneys.

Speed. Documents are typically processed and sent out for investigation within 5 days.

Support. Award winning customer service guarantees your satisfaction.

CreditFirm.net Review

Deficiency Judgment State Reference List

July 3, 2012 by  
Filed under Blogs, Real Estate

by: .
Foreclosure

 

The following is a list of the limits, if any, that states have imposed on deficiency judgments after a foreclosure. Not every state limits the amount of such judgments, while other states do not allow them at all. Any limitations on suing the borrowers after foreclosure for the deficiency balance and related issues can be found by searching the statutes and codes of the state.

 

 

Alabama: Deficiency judgments are possible. No limits.

Alaska: Deficiency judgments are not allowed if the foreclosure is by power of sale (nonjudicial foreclosure).

Arizona: No deficiency judgment on a purchase money mortgage for one- or two-family properties on less than two and a half acres. A deficiency may be allowed if a court decides the owners committed waste.

Arkansas: Lawsuit for deficiency must be brought within one year from the date of the public sale. Deficiency limited to amount of indebtedness less fair market value; or deficiency limited to amount of indebtedness less sales price of home.

California: No deficiency allowed under judicial foreclosure unless there is no redemption period, and no deficiencies are allowed under nonjudicial foreclosure. Deficiencies that are allowed are limited by fair market value of property.

Colorado: Deficiency is allowed, but homeowners may claim the house sold for less than the fair market value as a defense against this.

Connecticut: Deficiencies are allowed if they are pursued within thirty days of the end of the redemption period.

Delaware: Deficiency judgment allowed if lawsuit filed on note. Not allowed in judicial foreclosure proceedings.

District of Columbia: Deficiency judgments are allowed. If one is sought under judicial foreclosure proceedings, it may be entered in the foreclosure lawsuit.

Florida: Homeowners entitled to jury trial in deficiency case. Bank must have in-hand service on borrowers to include deficiency action in the foreclosure lawsuit.

Georgia: Sale will not be confirmed unless court is satisfied the sales price was for the true market value of the house. No deficiency is allowed unless the bank makes a request to the court and the sale is confirmed.

Hawaii: Allowed in some types of foreclosure, not allowed in others.

Idaho: Lawsuit for deficiency must be brought within 3 months of the public auction. Deficiency limited by fair market value as of the date of the sale.

Illinois: Deficiency judgments are allowed.

Indiana: If there is an agreement and an applicable waiting period is not waived, a deficiency judgment may be obtained.

Iowa: Deficiency not allowed if nonjudicial foreclosure process is used. Otherwise, deficiencies may be limited by statute.

Kansas: Deficiencies are allowed, but the court can refuse to allow confirmation of the sale or set an upset price.

Kentucky: Deficiency allowed if homeowners fail to answer foreclosure lawsuit or if they are served with the paperwork in-hand.

Louisiana: Deficiency only allowed in ordinary proceeding or executory proceeding if property has had an appraisal done under the state regulations.

Maine: Deficiencies are limited to an amount set on the date of the sale. If the bank that owns the mortgage is the high bidder at auction, any deficiency is also limited to the fair market value of the property.

Maryland: Report of sale and audit are required, but a deficiency can be obtained by filing a motion in court after the sale has been conducted.

Massachusetts: If a deficiency is to be pursued, the bank must include a notice of intent to seek deficiency with the required Notice of Sale. This Notice of Sale must be served on the borrowers at least 21 days prior to the actual auction.

Michigan: If the mortgagee bank purchases the property at auction, homeowners may use as a defense that the sale price was for less than the fair market value of the property.

Minnesota: Deficiency allowed, but limited by fair market value determined through a jury trial. If nonjudicial foreclosure is used and the six-month redemption period is available, no deficiency is allowed.

Mississippi: Judgment allowed if suit filed within one year of the auction. If the mortgagee bank was the winner at auction, deficiency may be denied based on unreasonably low sales price.

Missouri: Deficiency judgments allowed.

Montana: Allowed on a purchase money mortgage only under judicial foreclosure procedures.

Nebraska: Suit must be brought within 3 months of auction date. A deficiency is limited to the lessor of the difference between the amount owed to the bank and the fair market value at the time of the sale, or the difference between the amount owed and the sales price at auction.

Nevada: Allowed, but limited to the lessor of the following: the difference between the debt and the fair market value; or the difference between the debt and the sales price at auction, including interest from the date of sale.

New Hampshire: Allowed if action is brought in court after sale.

New Jersey: Judgment allowed only on the note after foreclosure, but no personal deficiency judgment allowed. Deficiency is limited by the fair market value of the property, and action must be brought into court within 3 months of sale.

New Mexico: Allowed in judicial foreclosure, but property can not be sold for less than 2/3 of its appraised value. In nonjudicial foreclosure, creditor can sue for deficiency within 6 years of sale, unless property was occupied by a low-income household.

New York: Deficiencies limited by fair market value of property, and are only allowed if homeowner was served in-hand or appeared for lawsuit.

North Carolina: May be limited by fair market value in judicial cases. No deficiency allowed in nonjudicial foreclosure of purchase money mortgage.

North Dakota: Deficiencies limited by fair market value or appraised value, but allowed on land of more than 40 acres. Not allowed on residential property of four or fewer units on less 40 acres.

Ohio: Allowed but void after two years after sale date. The property can not be sold for less than 2/3 of its appraised market value.

Oklahoma: Limited by fair market value as of auction date. Objections may be filed to confirmation of sale.

Oregon: Deficiency judgments not allowed on judicial foreclosure proceedings involving residential mortgages, or in nonjudicial foreclosures.

Pennsylvania: Allowed if a separate action is filed in court after auction. If the mortgagee purchases the property at auction, any deficiency is limited by the fair market value.

Rhode Island: Deficiency judgments are allowed.

South Carolina: Homeowners may request court to issue an order of appraisal within 30 days of the auction. If this is done, deficiency is limited by the amount of the debt over the appraised value.

South Dakota: If mortgagee or holder of note purchases the property at auction, any deficiency is limited by the market value. In judicial foreclosure proceedings, a deficiency judgment may be barred. In cases of voluntary foreclosure, no deficiency or surplus is allowed.

Tennessee: Deficiency judgments are allowed.

Texas: Action to pursue a deficiency must be brought into court within two years of auction date. If the borrowers ask the court to determine the fair market value, the deficiency may be limited or offset if the market value is greater than the price obtained at auction.

Utah: Action to pursue deficiency judgment must be made within three months of the sale date. Any judgment is limited to difference between the debt owed, including fees and charges on the account, and the fair market value

Vermont: In judicial foreclosure proceedings, the lender must request deficiency in original complaint and will be limited to the fair market value if the mortgagee is the winner at auction. In strict foreclosure proceedings, a separate judgment must be obtained and is limited by the fair market value.

Virginia: Deficiency judgments are allowed.

Washington: Deficiency judgments are allowed in judicial foreclosure proceedings, but not if nonjudicial foreclosure is pursued.

West Virginia: Deficiency judgments are not allowed if the sales price is less than the amount of the indebtedness.

Wisconsin: Deficiency judgments are allowed if included in the foreclosure action, but court must be satisfied that the house sold for its fair market value. If a lender waives its right to deficiency, the redemption period is shortened.

Wyoming: Deficiency judgments are allowed if the homeowner is obligated by a separate written agreement.

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Housing Market Update for June 12, 2012

June 13, 2012 by  
Filed under Blogs, Real Estate

housing market improvingForward is where the housing recovery appears to be going, though some advances are bigger than others. According to a leading data aggregate, home prices rose in April for the second month in a row, UP 2.2% over March and UP 1.1% versus a year ago. Taking out distressed sales, prices were UP 2.6% for the month and UP 1.9% year over year. These price gains are at a rate not seen since late 2006 and better than 2010, when sales jumped thanks to the federal tax credit.

In April, among the 100 largest metros, only 44 saw price drops year over year, 10 fewer than in March. Even better, 6 of the 10 biggest metros reported home price increases. Analysts noted that home prices are responding to a restricted supply that they think will exist for some time to come. The supply of homes in current inventory is down to 6.5 months, a level we haven’t seen in more than five years!

This is a great time to buy a house, unfortunately, many Americans still don’t qualify for a mortgage due to stringent lending practices and poor credit scores.  If you have been denied for a mortgage or wish to increase your credit score to get the best interest rate possible, Sign Up to improve your credit today.

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