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Watch CBS News Videos Online‘ >Loan Modification Ca Housing Crisis

“We had the greatest asset bubble in history and now that bubble is bursting. The single biggest piece of the bubble is the U.S. mortgage market and we’re probably about halfway through the unwinding and bursting of the bubble,” Tilson explains. “It may seem like all the carnage out there, we must be almost finished. But there’s still a lot of pain to come in terms of write-downs and losses that have yet to be recognized.”

In 2007, Tilson teamed up with Amherst Securities, an investment firm that specializes in mortgages. Amherst had done some financial detective work, analyzing the millions of mortgages that were bundled into those mortgage-backed securities that Wall Street was peddling. It found that the sub-primes, loans to the least credit-worthy borrowers, were defaulting. But Amherst also ran the numbers on what were supposed to be higher quality mortgages.

“It was data we’d never seen before and that’s what made us realize, ‘Holy cow, things are gonna be much worse than anyone anticipates,’” Tilson says.

“The defaults right now are incredibly high. At unprecedented levels. And there’s no evidence that the default rate is tapering off. Those defaults almost inevitably are leading to foreclosures, and homes being auctioned, and home prices continuing to fall,” Tilson explains.

“What you seem to be saying is that there is a very predictable time bomb effect here?” Pelley asks.

“Exactly. I mean, you can look back at what was written in ‘05 and ‘07. You can look at the reset dates. You can look at the current default rates, and it’s really very clear and predictable what’s gonna happen here,” Tilson says.

“How big is the potential damage from the Alt As compared to what we just saw in the sub-primes?” Pelley asks.

“Well, the sub-prime is, was approaching $1 trillion, the Alt-A is about $1 trillion. And then you have option ARMs on top of that. That’s probably another $500 billion to $600 billion on top of that,” Tilson says.

Source: 60 Minutes

Publisher- Michael Kench Uncategorized Amherst, Array, Borrowers, Carnage, Cbs, Cbs News, Detective Work, Investment Firm, Loan Modification, Loans, Losses, Mortgage Backed Securities, Mortgage Market, Mortgage Meltdown, Mortgage News, Mortgage Online, Online Loan, Primes, Quality Mortgages, Tilson, Wall Street

Predatory Mortgage Lending-Loan Violations

You may be entitled to restructuring your loan through a loan modification CA homeowners program if your loan

was subject to any of the following:

1. Miscalculation of Interest
2. Inflated Appraisal
3. Illegal Loan Origination Fees
4. Yield Spread Premium
5. Illegal Kickbacks
6. Non-Disclosure of Loan Terms-Federal and State Requirements
7. Discount Points
8. Undisclosed Pre-Payment Penalties
9. Switching Rates between initial Rates and Closing

Any of these violations may fall under the T.I.L.A “Truth In Lending Act” or under the R.E.S.P.A. “Real Estate

Procedures Act.”

A well qualified attorney who specializes in the “Forensic Loan Audit” process would be able to identify and violations in the law and determine if you are entitled to a Loan restructuring under a loan modification CA program and you may entitled to a refund of all points, fees in originating your loan and interest that has been charged on the loan which could result in thousands of dollars in savings to you.  Each case is unique and the outcome may be different, but you do have laws on your side to protect you as a borrower.

It has been estimated that 82% of loans written have some type and form of a violation.  These laws are violated daily by lenders and mortgage brokers who wrote, processed, submitted and approved the loans.

The laws were enacted to protect borrowers but through the greed of some unscrupulous loan agents and brokers have completely disregarded these laws and unfortunately some loan agents and brokers were not aware they were breaking these laws.  Your loan may be an unlawful loan and you may be entitled substantial damages for these violations.  If you suspect you have a violation it would be to your benefit to have a forensic mortgage loan audit on your loan to determine the violations and potential damages or resolutions to a home loan modification CA restructuring program on your loan.  If you are behind in payments, in a notice of default or in foreclosure it would be advisable to check it out. Drop me a post and I will recommend a qualified attorney who will provide a forensic mortgage loan audit free of charge.

Publisher- Michael Kench Uncategorized Array, Avoiding Foreclosure, Borrowers, California Homeowners, Disclosure, Foreclosures, Greed, Home Loan, Home Loan Mortgage, Illegal Kickbacks, Initial Rates, Lenders, Loan Agents, Loan Modification, Loan Origination Fees, Loan Terms, loan-modification-ca, Miscalculation, Mortgage Brokers, Mortgage Lending, Mortgage Loan, Mortgage Loan Audit, Mortgage Loan Modification, Non Disclosure, Notice Of Default, Predatory Loan Violations, Predatory Mortgage, Resolutions, Substantial Damages, Thousands Of Dollars, Truth In Lending, Truth In Lending Act

What May Cause A Loan To Be Illegal

Unaffordable Loan- You were put into a mortgage and your income is not able to pay the monthly loan payment because your loan payment is adjusting higher.

Making loans based only on the value of the collateral without regard to the borrower’s ability to repay the loan.

Bait And Switch- Were you promised a low interest rate, but then you ended up with a higher rate at closing?

Failure To Disclose Loan Terms- Federal and State laws require creditors disclose the terms of the loan to borrowers, and when those terms are not disclosed or are inaccurately disclosed these terms are in violation of the law.

If you were a victim of any of these predatory lending violations :

Misrepresentation
Fraud
Miscalculation
Mistake
Deception
Non-Disclosure
The T.I.L.A. “Truth In Lending Act”
The Real Estate Settlement Procedures Act
Federal and State Lending Provisions

You may be entitled to get back all of your origination fees “points” plus interest.  Have your loan restructured at no cost to you through a loan modification CA homeonwers program.  Obtain a better rate, new loan terms and lower payments.

To determine if you have any violations with your home mortgage loan you should have a qualified attorney who specializes in the loan mortgage audit process also know as a forensic loan audit.  I can offer some great recommendations if you need a loan audit completed on your loan and the attorneys will offer this Free Of Charge to qualified candidates.  Drop me a post or an email at mikekench@gmail.com

Publisher- Michael Kench Uncategorized Avoiding Foreclosure, Bait And Switch, Borrowers, Collateral, Creditors, Disclosure, Estate Settlement, Facing Foreclosure, Fraud, Home Mortgage Loan, Interest Rate, Loan Modification, Loan Mortgage, Loan Payment, Loan Terms, loan-modification-ca, Miscalculation, Misrepresentation, Mistake, Mortgage Loan Modification, Non Disclosure, Origination Fees, Predatory Lending, Provisions, Settlement Procedures, State Laws, Truth In Lending, Truth In Lending Act

If you were a victim of predatory lending, then you may qualify to have your loan restructured through a loan modification Ca homeowners loan program.

The best way to determine if you were a victim is by having a Mortgage Audit done on your home loan. Your mortgage lender or broker may have failed to follow the rules under the Truth in Lending Act, the Real Estate Settlement Procedures Act or other federal and state lending regulations  and statutes.  If you were a victim of these home loan mortgage procedures you may be entitled to the return of a portion, or all loan fees and interest and a restructure of your loan under a loan modification CA modification program.

If you have  received a “Notice of Default,” or your home is in foreclosure, or you are in a position where your loan is becoming un affordable due to rate and payment increases.  Having a mortgage loan audit by a qualified professional, preferably an attorney who specializes in the mortgage audit process may save your home from foreclosure and may also provide you with a restructered mortgage loan modification CA program to lower your payments, loan balance, or loan terms.

Most homeowners are unaware of the Laws that are in place to protect borrowers from violations in the law or Fraud.  And without a professional eye are unaware of these violations in their mortgage loan contracts.

These May Have Happened To You!

Were you charged high closing costs (Points and Fees?)
Did you have to provide proof of Income or did you just “state your income?” or did your loan agent or broker put a number in your application to qualify you?
Were all of your loan documents completely filled out prior to signing, or did you sign any blank documents?
Did your loan have any prepayment penalties?
Did you receive copies of all loan documents upon signing or loan closing?
Did the terms of your loan change at the last minute prior to signing
Were all loan fees or charges disclosed and properly explained to you in a clear, conspicuous and accurate way upon closing?

These are just a few areas that a mortgage loan audit would uncover violations in the law.  More information to follow.

Publisher- Michael Kench Uncategorized Avoiding Foreclosure, Borrowers, California Homeowners, Estate Settlement, Facing Foreclosure, Foreclosure, Fraud, Home Loan Mortgage, Homeowners Loan, Loan Agent, Loan Balance, Loan Contracts, Loan Documents, Loan Fees, Loan Program, Loan Terms, loan-modification-ca, Mortgage Lender, Mortgage Loan Modification, Notice Of Default, Payment Increases, Prepayment Penalties, Professional Eye, Proof Of Income, Restructure, Settlement Procedures, Truth In Lending, Truth In Lending Act

5 Reasons California Loan Modifications Are Going Bad Again

In 2009 more loan modifications are going bad. Why?  To many borrowers that were at the mercy of their lenders accepted mortgage modifications that were not in the borrowers best interest.  Most home owners when presented with a loan modification Ca program  did not know how to negotiate better terms and accepted the first offer that was presented to them.  The loss mitigation representative who is negotiating the modification is representing the bank and has the lenders interest that they represent and they are trying to achieve a home loan mortgage modification that is in the lenders best interest and not necessarily the borrowers best interest.  So it is important to way all options before you accept a loan modification proposal on your home loan.

There are other factors that are affecting loan modifications to go bad which have caused some borrowers to give up and throw in the towel.  5 of the reasons are as follows

 
5 factors behind the trend:
1. Overextended borrowers: With the ease of credit and negative-amortized, adjustable, pick-a-pay, interest only loans.  Many unknowing borrowers were led into the American Dream of home ownerships, with ease of qualifying, the fear that many first time homeowners would simply miss the boat of owning a home with the rise in real estate values and the speculative gold rush of of home appreciation.  Many borrowers not only fell into the real estate trap, but also overextended their consumer credit cards, personal loans and luxury items. Unfortunately many of these over extended consumers won’t be able to make their payments even in the most generous of loan modification Ca programs.
2. Underwater effect: IN several parts of the country for example California, housing prices have declined over 50 % in value and borrowers are having a hard time trying to deal with making a mortgage payment on an asset that is not worth nearly what it was when they bought it.  And in most cases even if they were to have they mortgage modified it would not address the negative amount of equity in their homes and know one knows when values will increase again.
3. Housing Market decline: Has the home market reached a bottom yet?  Is the housing market going to continue a decline?  These are questions that troubled homeowners have to deal with in deciding if the loan modification Ca program they received is worth paying into an investment that will continue to devalue.  Historically speaking real estate prices have increased in value over time.  Unfortunately we do not have a crystal ball that will tell us when home prices will return and home appreciation will become a benefit of home ownership.  One thing most homeowners need to remember is that they will need shelter, and it may be better to own a home in the long run than to rent, taking into account that your home is still one of the only tax write offs you have and that if you get a loan modification that will work for you short term and long term you should focus on paying down and eventually off your mortgage so you can own your home free and clear. Owning a home without out payments and with the benefit of future appreciation.
4. Original Loan Modification Ca terms: Some of the modified loans weren’t modified appropriately to make them affordable for troubled borrowers.  The loans could have been adjusted to more in line with the borrowers debt to income ratios to make there loan payments more viable for long term success.

5. Unemployment: This is another major cause of defaults on loan modification programs. Many homeowners who were successful in obtaining a mortgage loan modification were unable to maintain their mortgage payments due to a loss of employment, decrease in income, or other unforeseen events, which made it impossible to keep up with payments or to do another loan modification on their home loan.

Publisher- Michael Kench Uncategorized American Dream, Avoiding Foreclosure, Best Interest, Borrowers, California Loan, Consumer Credit Cards, Example California, First Time Homeowners, Gold Rush, Hard Time, Home Appreciation, Home Loan Mortgage, Interest Only Loans, Loan Modification, loan-modification-ca, Loss Mitigation, Luxury Items, Mortgage Loan Modification, Mortgage Market, Mortgage Payment, Ownerships, Owning A Home, Personal Loans, Posal, Real Estate Values, Underwater Effect