Hundreds of mortgage professionals have been arrested within the past week, with most arrests occurring Wednesday, June 18. According to the FBI, there may be as many as 1,400 additional investigations, which could lead to many more arrests for fraud. (more…)
Credit and Debt Blog
A Service of Debtors Unite, Inc.
|
|
|
Archive for the ‘Homeownership’ Category
Foreclosure Hits Former Bash Brother
Former Major League Baseball star Jose Canseco is walking away from his mortgage. His $2.5 million Encino mansion has been foreclosed after Canseco stopped making monthly mortgage payments. (more…)
HUD Secretary Alphonso Jackson Resigns
HUD Secretary Alphonso Jackson rendered his resignation on Monday. The official date for his departure will be April 18 according to his statement.
The reason for his resignation is listed as personal. Jackson is currently being investigated by the Federal Bureau of Investigation over possible ethical concerns. (more…)
President Bush to Visit Novadebt
White House spokeswoman Dana Perino announced that President Bush will visit a nonprofit credit counseling organization in Freehold, NJ. Originally known as Garden State Credit Counseling, Novadebt has provided credit and housing counseling services nationally as well as in New Jersey. (more…)
Lifetime Financial Scheme Shut Down
Several California mortgage companies were recently shut down by Attorney General Edmund Brown for duping homeowners into “illegal and unconscionable loans.” Lifetime Financial, Nations Mortgage, Greenleaf Lending, Virtual Escrow, Direct Credit Solutions and Olympic Escrow, all owned by Eric Pony and his family, have been forced to cease all operations and have had their assets frozen by the Los Angeles Superior Court. (more…)
Free Tax Prep Service Also Provides Credit Scores
The volunteer income tax assistance (VITA) program has been popular with low and moderate income taxpayers for years. One firm has changed the rules by matching eligible taxpayers with asset-building programs.
Instead of simply filing a free tax return, taxpayers are also treated to two of their credit scores. They can find out if they meet lending guidelines for homeownership. The best part is that since the program is funded by Freddie Mac, the service is free. (more…)
Annual DuPage Homeownership Fair
The 16th annual Homeownership Fair is being conducted by the DuPage Homeownership Center in Wheaton, IL. This year’s event is scheduled for March 1 from 10:00 am to 3:00 pm. (more…)
Tennessee Senator Proposes Tax Credit for Home Buyers
In a proposed bill co-sponsored by Senator Johnny Isakson of Georgia, Tennessee Senator Lamar Alexander wants Congress to provide tax credits of up to $15,000 over three years to those who buy new and foreclosed homes. Alexander pointed to a similar strategy used in the 1970’s to stimulate demand for home purchases. (more…)
National Foreclosure Management Inc. Sued by Florida Attorney General
A foreclosure rescue operation was sued in Broward County Circuit Court on allegations of fraud. National Foreclosure Management Inc., which also does business as American Home Rescue Inc. was charged with violating Florida’s deceptive and unfair trade laws.
About 80 homeowners were affected, representing approximately $1.7 million in equity. Most of these homeowners had substantial equity in their homes, yet were facing foreclosure. It is believed that they were targeted specifically because of the higher equity they held.
Homeowners thought that they were getting a deal. They were allowed to remain in the homes while the rescue company held the property titles for a year. Homeowners were expecting to refinance as part of the deal.
Instead, many homes were sold to investors that would in turn rent the homes back at an inflated rental rate. Homeowners lost their equity and ownership interests.
The legislature has proposed House Bill 643 and Senate Bill 992 which are expected to make mortgage rescue scams harder to operate. These bills would require a 5 day cancellation period, additional disclosures and limitations on payments received prior to service.
ARM Holders Should Refinance
Holders of adjustable rate mortgages (ARMs) that are facing a reset (dramatic increase) in their rates and monthly payments should consider refinancing with a fixed rate mortgage loan. Actions by the Fed to cut short-term interest rates should hold mortgage rates low for the next several months. (more…)
