What to expect when you're expecting #Foreclosure Part 1: Foreclosure Avoidance What are my rights? 12 New Rules

Foreclosure Avoidance: What are my rights?

CFPB mortgage rules provide federal protections to borrowers to help ensure homeowners are aware of foreclosure avoidance options and know how to go about applying for them... See below...12 rules in place to protect you from unlawful Foreclosure

1. By day 36th of your missed mortgage payment, the servicer (Bank or loan company that's collecting and managing your loan payments) must make a good faith effort to establish contact by phone or meeting in person.

2. If the borrower meets certain criteria the servicer by law has to inform the homeowner about loan modification or workout options available.

3. Before the borrower becomes 45 days delinquent, the servicer must send a written notice to the borrower or borrower's agent encouraging them to contact the servicer, providing the phone number and examples of loss mitigation options.

4. Any periodic mortgage statements the borrower received after being 45 days late must include; risk regarding delinquency, information on whether or not the servicer has started the foreclosure process, the phone number and website for HUD approved counseling agencies, and any information about any loss mitigation programs the borrower has already agreed to.

5. Mortgage servicers can not file a 1st notice for filing foreclosure, notice of sale or anything until the borrower is 121 days or more delinquent.

6. The servicer can not begin the foreclosure process if the borrower has turned in a complete package for mortgage assistance (loss mitigation application) No more dual tracking!!! Servicers are no longer allowed to be pursuing foreclosure at the same time borrowers are pursuing loss mitigation options.

Application for RMA (Request for Mortgage Assistance) Making Home Affordable
http://www.makinghomeaffordable.gov/get-started/request-modification/Documents/RMA_english_03.30.2012_static.pdf

7. New CFPB rules require servicers to assign personnel to help delinquent borrowers...

8. The person or persons the servicer assigns to assist the borrower must be able to; give accurate information about loss mitigation options, explain correctly what a borrower must do to apply for the workout options, tell the borrower the status of the loss mitigation application, and be able to quickly locate the written information the borrower has submitted in connection with a loss
mitigation package.

9. Servicers must be able to tell homeowners the circumstances under which the servicer may make a referral to foreclosure to ensure the borrower has sufficient time to file applications for foreclosure avoidance.

10. If the servicer receives a complete application for loss mitigation options 45 days or more before a scheduled foreclosure sale, the servicer must acknowledge receipt of the application and determine if the application is complete... If not complete the servicer must inform the borrower what additional information or documents are needed... If the servicer received a complete application 90 days or before the fc sale, they must give the borrower at least 14 days to accept or reject an offer of a loss mitigation option, the borrower may appeal the denial for any loan modification within 14 days of the decision....even if a complete application for loss mitigation options is received by a servicer at least 37 days before the scheduled foreclosure sale, it will be evaluated for loss mitigation options.

11. Servicers are required to evaluate the borrower for all foreclosure avoidance options that the borrower may qualify for if they turn in a complete application. If the application for mortgage assistance is denied, the servicer must provide specific reasons for the denial... IE: If a loan modification is denied because of an investor requirement, the servicer must explain the requirement to the borrower, and explain to them why they don't meet the criteria.

12. Under the new laws, borrowers are entitled to loss mitigation evaluations even if they applied before and were rejected before the new rules were put into place...

The CFPB accepts complaints about mortgages... They will forward your complaint
to the company and work to get you a response from them...
File a complaint about any loan product! Mortgage, Student Loan, Car loan etc.
http://www.consumerfinance.gov/complaint/

Contact the CFPB (855) 411-2372 (CFPB)

How to recognize scams claiming to save you from foreclosure:
1. Never pay anyone an advanced fee for claiming they can stop your foreclosure
2. Check with your local Realtors and HUD Approved Counseling Agencies for lists of scams and where to get real help

3rd party authorization: Any Realtor, Attorney or Housing Counselor will need written authorization from you to discuss your mortgage loan and assist you. Here is a sample form below, or you can ask your bank for one. If you don't want to give written authorization, you can make a 3 way call and give a one time authorization each time someone else will be speaking to your bank on your behalf.
http://files.consumerfinance.gov/f/201407_cfpb_model-third-party-authorization-form.pdf

7 Qualities in a #QualifiedMortage... QM's are the new black...

Question: What is a Qualified Mortgage or QM?Answer: A Qualified Mortgage is a loan that a borrower should be able to repay.
The Consumer Finance Protection Bureau (CFPB) Put new rules in place to prevent the public from making the same mistakes that contributed to the mortgage crisis of 2008. Here are some of the outlined key features:

1. Since 1.10.14, any lender making mortgage loans will have to assess the borrower's true ability to repay the loan. 

2. QM's can't have risky features like negative amortization or interest only payments. 

3. Borrowers must have a total monthly debt-to-income ratio including mortgage payments of 43% or less. (This means that your mortgage payment + household expenses when added together, can not take up more than 43% of your income.) 

4. Unlike the time during the mortgage crisis, the fees and points in which lenders can charge are limited. Example: A loan over $100K can't be a QM if it has fees and points that are more than 3% of the loan amount. 

5. With QM's, anyone who is paid to offer, arrange or assist you in finding a loan can't be paid to steer you into a higher cost mortgage or be paid by someone else for the same transaction. 

6. For as long as the next 7 years, loans eligible to be purchased, guaranteed or insured by the VA and USDA or which are eligible to be purchased or guaranteed by Fannie or Freddie are automatically QM's as long as they meet certain product requirements... Under HUD rules, loans insured or guaranteed by the FHA or HUD are also QM's. 

7. Qualified Mortgages are easy to find, just about any lender can offer them... QM's do provide a way to meet the ability to pay requirement with the exception of low or no documentation loans. CFPB rules regarding QM's do not ban other types of subprime non qualifying mortgages. The rules do say that lenders have to make a reasonable, good faith effort to determine that a consumer can repay a loan based on their documented income, assets, debts and other common factors.

 

Learn more about QM's by visiting the CFPB website, live link below...

http://www.consumerfinance.gov/

 

 

5 Great Sources for Dispute Letter Templates to Send Your Collectors, Creditors & Credit Bureaus #RealEstate

 

 

5 Great Sources for Dispute Letter Templates to Send your Creditors, Collectors & Credit Bureaus… #RealEstate

 

Federal Trade Commission-Disputing Errors on Credit Reports

http://www.consumer.ftc.gov/articles/0151-disputing-errors-credit-reports

 

 

Lexington Law DIY- Complete list of dispute letters for disputing any and everything on your credit file

http://www.creditinfocenter.com/forms/

 

 

My Fico-Dispute Letter contents

http://www.myfico.com/crediteducation/rights/sample-letter-of-explanation.aspx

 

 

Kel Credit Repair-14 sample credit repair letters for competent disputes that work

 

http://www.kelcreditrepair.com/credit_repair_letters.html

 

About.com/LaToya Irby-8 sample letters for creditors, collectors and credit bureaus

 

http://credit.about.com/b/2013/04/28/free-sample-letters-for-creditors-collectors-and-credit-bureaus.htm

10 Ways To Avoid Foreclosure #RealEstate

10 Ways to Avoid Foreclosure

1. 1. Special Forbearance - The Special Forbearance is a written agreement between the Lender and Unemployed Borrower that consists of a plan enabling the Borrower to make a partial payment during their search for employment; not to exceed 12 months delinquent Principal, Interest, Taxes and Insurance.
    
   
   2. Loan Modification - This option provides for either a permanent change in one or more of the terms of a Borrower’s loan, which allows a loan to be reinstated and results in a payment the Borrower can afford.
    
   
   3. Partial Claim- Under this option, the Lender will advance funds on behalf of a Borrower in an amount necessary to reinstate a delinquent loan.  A Subordinate Mortgage and Note, in the amount of the advance, is prepared in the name of the Secretary of HUD.
    
   
   4. HAMP-Home Affordable Modification - The Making Home Affordable Modification Program is designed to help Borrowers retain their homes and to prevent the destructive impact of foreclosures on families and communities.  FHA-HAMP is a permanent addition to HUD’s Loss Mitigation Program.  Depending on the default status, the trial payment plan must be for a minimum of 3-4 months.  This option may now consist of a loan mod and or partial claim.
    
   
   5. DIL/CFK-Deed in lieu of Foreclosure/Cash for keys - The Deed in Lieu of Foreclosure allows a Borrower to voluntarily sign the house back over to the Lender.  A Deed in Lieu of Foreclosure cannot be accepted from a Borrower who can financially afford to make their mortgage payments.  The lender can pay, not to exceed $2000 compensation to the borrower.  The money is not paid until the borrower has vacated the property.
    
   
   6. HAFA (Home Affordable Foreclosure Alternatives) Pre-foreclosure Sale Program -The Pre-Foreclosure Sale Program allows a Borrower in default to sell his or her home and use the sales proceeds to satisfy the mortgage debt, even if the proceeds are less than the amount owed.  Outright sale of mortgaged property to a third party and must be an “arm- length” transaction.  Outstanding indebtedness includes; unpaid principle balance + delinquent interest+ partial claim (if applicable).  HUD will pay up to $1000 incentive to the Borrower if closed within 90 days from the date of application; thereafter, the incentive is reduced to $750.
    
   
   7. Short Sale - A short sale work-out is when the borrower and lender come to an agreement where the lender will allow the homeowner to sale the property for less than what it costs to satisfy the mortgage lien, outstanding interest and principal payments, fees and costs in full.  Though the purchase agreement will be between the borrower and home buyer, the bank must fully accept and approve the offer.  If there are subordinate liens on the property, that lien holder will also have to agree to the short sale, taking a small portion of what is actually owed. 
    
   
   8. Traditional Sale - If the property is not negative in equity (determined by BPO/Appraisal/CMA) the Borrower can market the property with a real estate agent and once an offer is received that will satisfy the mortgage lien in full as well as outstanding principal, interest, fees and cost, the parties can close the deal.  Bank approval is not required for this option.
    
   
   9. Rent the Property - If the Mortgage payments are not too far behind and there is no clause in the mortgage preventing it, homeowners may rent the property out and hold it indefinitely.
    
   
   10. Reinstate - By paying all outstanding indebtedness; unpaid principal balance, delinquent interest…fees and cost, foreclosure can be avoided and stopped immediately.
    
    
   
   Guide to Loss mitigation options:
   http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/nsc/lossmit
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
   

5 Programs to Help w/ Down Payment & Closing Costs in the Raleigh/Cary #NC Metro Area

Ready to purchase your first home? Here are 5 programs that will assist you with down payment assistance and or closing costs.

1. Citywide Home Ownership Program-Get a second mortgage for up $20,000 to use as down payment for your home purchase. Click the link below for program guidelines and application.

Citywide Home Ownership Guidelines & Application

2. North Carolina Housing Finance Agency- Get a second mortgage for 3% of the purchase price of the home you are buying for down payment. This means that if the home you are interested in is $200,000, NCHFA will give you 3%- ($6,000) in a second mortgage to use as down payment funds. As long as you remain in the home as your principle residence, this second mortgage will be totally forgivable over time. Click the link below for program qualifications and participating lending institutions.

NCHFA What We Offer Home Buyers

3. Homes4NC- Are you a firefighter, teacher or nurse who can't afford the average priced home in the community you serve? Homes4NC is a statewide program offering a grant for $2000 to assist clients' of Realtor's who have earned the WHS-Workforce Housing Specialist Designation. I am one of those Realtors. Click the link below to see if you meet the other program qualifications.

Homes4NC Program guidelines and application


4. Wake County Housing and Community Revitalization- Qualified 1st time home buyers can get $5,000 to assist with closing costs. Program guidelines and phone # contact listed below.

Wake Co. Housing & Community Revitalization Program

5. DHIC-Obtain your home buyer pre-purchase certificate by attending a home buyer counseling workshop with DHIC. Any program that offers any type of funding for 1st time home purchases will require you to get pre-purchase counseling since your 1st home is the biggest investment you will make in your life. Click the link below to go directly to DHIC and view their schedule for counseling workshops and other programs they have to offer.

DHIC.org/ Homebuyer Counseling Workshop Schedule
The complete list of Home Ownership Agencies In North Carolina

HUD Approved Counseling Agencies for Every NC City

No Romance w/o Finance 7 BEST Financing Options for Purchasing #NC #RealEstate

#CreditSchool101 10 Ways to Improve Your Credit Score for a Mortgage Loan or Better Interest Rate...

The most important thing to remember when taking steps towards credit repair, credit rebuilding or credit maintenance is that your credit score is a snap shot of your credit file at a particular point in time. Don't be discouraged if the journey seems impossible at first. As a Realtor I have sold homes to many clients who at first started out with a credit score too low to be pre-qualified for a mortgage loan. With a few months of dedication and persistence these clients were able to get the points needed to boost their credit scores within a 6 month time frame. If you are reading this, you are on the right track to credit worthiness and stability in your financing future. Save this post to your computer as these tricks and tips can be used, applied and repeated to keep your scores soaring high.

1. Collections/Liens/Charge Offs- Be careful when deciding to take action on past due accounts, collections, liens and charge-offs. Paying on an account later than 24 months old will not boost your credit score. In fact, paying on an old account may initially make your score go down since it will appear to make the account look more recent, by adding recent activity, which will weigh more heavily on your score.

• Tackle these negatively reporting accounts by 1st disputing any debt that you believe to be incorrect. The company will have 30 days to validate the debt or they will have to remove it from your report.
• Start paying on negative accounts within 24 months 1st... You can set up a payment plan to just pay $10 per month on the old account and they will have to start reporting the account as positive. 
• When possible payoff all negative collection items & past due accounts that remain on your file. Before you pay it off, get a letter in writing from the company stating that once paid, they will delete the item from your report altogether.
• For liens, it may be best to pay a small fee to a law firm or other credit repair entity to have these types of items quickly removed.
• Finally, consult with your lender before deciding what to pay off. They will be able to tell you which items will make the biggest impact in raising your score

2. Pay existing accounts on time or at least within 30 days. Payment history makes up 35% of your Fico score

• Companies should not report negatively on any item until it is at least 30 days past due.
• Items 60-90 days past due will have a bigger negative impact on your score, so catch these up 1st.

3. Ask the creditor to remove negatively reported payments once you have caught them up.

• Once you catch up your negatively reporting accounts, you can reach out to the creditor by phone or letter and ask them to remove the times where your payment was reported negatively  since the item is now being reported as current or Pays as agreed.

4. Improve your debt to credit ratio-The amounts you owe to creditors make up 30% of your Fico score... 'debt to credit ratio=how much you owe vs. how much credit you have available'.

• A good way to improve your debt to credit ratio is to only utilize 30% of your total credit limit.
• This means that if your credit limit is $1000, you would only use $300 and pay that off monthly while always leaving $700 available. View the chart below for more examples...
• 
  creditKarma.com Raise your credit score by 100 points in 6 months

5. Avoid adding new debt until you are able to successfully manage your current debt. Credit cards are good for emergencies and credit building but you should not have to take a loan for everything. Carry cash and set aside an allowance for the things you need and do not go over your budget! You will be able to track how much you are spending and once it is gone you will more than likely stop spending. Keep your oldest cards and those cards with a positive history while closing other accounts. Try to find deals and better interest rate cards so you can transfer balances to the low-interest cards while paying off and closing out more risky termed ones. The devil is in the detail so read over your terms and avoid hidden fees & costs.

Dump your debt, so your income goes in the bank and not to the bank

Bankrate.com 10 Ways to Dump Your Debt 2010

Dave Ramsey's Guide to Budgeting... Downloadable/Printable PDF

Downloadable/Printable PDF Budget Guide

6. Apply for a secured card. If you can't get a credit card for rebuilding purposes on conventional terms, look for a good secured card to serve as a revolving account on your diversified credit profile. Revolving accounts make up a big portion of your Fico score. Secured cards that report to all 3 major bureaus can easily boost your credit score within a few months.

Experian.com Improve Your Credit Score

Credit.com Tips to Improve Your Credit-Types of Accounts in Your credit History

Creditcardforum.com Best secured cards for rebuilding credit

7. Visualize yourself being debt free. Banks want to lend you money when you don't need it. Take advantage of debt reducing tips and plan for your future retirement. Start a separate savings account just for vacation or special upcoming event where you might want to splurge so that when the time comes you will not have to use credit or money set aside for bills. Always keep your bill money separate from other savings and checking accounts. If you fail to plan, you have planned to fail.

100 Great Tips for Saving Money

8. Always be improving! It does not matter when you start as long as you start. Take action and secure your financial future by planning to improve your finances. Work over time when ever your employer allows. Invest in a skill where you can earn money as an entrepreneur. With all the recovery going on in Real Estate, we are gearing up for great market conditions in 2014 and for the next 5 years or so, why not get a license to sell homes? You can work by referral assisting your friends, family and sphere of influence with all their Real Estate needs. If you want something you have never had, you have to do something you have never done.

9. Keep repeating what you've learned. There may be times when circumstances beyond our control come up and we have to spend money we did not have to spend. Life happens to everyone, but do not be discouraged! The only way to fail is to quit.

10. Invest. As you reduce your debt and increase your savings, take the same amount of money that would have normally went to paying off debt and put it in your savings account. Learn to live on less and take advantage of being thrifty. This new way of thinking will help you be prepared with money already set aside to make your 1st home purchase, invest in stocks or bonds or start up a business.

How to Invest 6 Key Points

Get your free annual score for all 3 CRAs!

US Money 4 Ways to Boost Your Credit Score in 2014

FDIC.gov 3 Major Credit Bureaus Web, Phone and P.O. Box

Free Online Credit Smart Course with Freddie Maac

7307 Pats Branch DR. $699,000 N. Raleigh

Honey stop the car! This Luxury home for sale in N. Raleigh NC has it all... If you like the finer things in life you will love the custom upgrades and features that are included with this 3605 SF beauty. Estimated completion date Feb 2014.

 

All about 7307 Pat's Branch

 

Builder: Lawrence builders:
About Lawrence Builders Custom Luxury Homes

7307 Pats Branch DR.

Remarks: Exquisite Luxury Home w/EVERYTHING, feat. hardwds & triple crown molding on entire 1st floor, gourmet kit w/granite, bksplash, upgrd appl, screened porch with stacked stone f/p, 2nd covered deck & porch, backyd features, brick patio-fire pit & water feature, Master Suite on Main w/ tons & 3 other bedrms, add'l bonus for 5th bdrm, w/ in closets, 3.5 full ba conv to hwys & great schools

　

 

 

Raleigh, NC 27612 (City limits of: Raleigh)

Area/Sub: 002/A

Media: 3

VT: No Yr Blt: 2013 List Type: ER Subdivision: Branch Crossing Nbrhd:

School Information Middle 1: Wake - Daniels Middle 2: High 1: Wake - Broughton High 2:

Directions: Glenwood to Left on Ebenezer Church Rd, Left on Pats Branch and Home Under Construction on Right

Remarks: Exquisite Luxury Home w/EVERYTHING feat.

hardwds & triple crown molding on entire 1st floor,

gourmet kit w/granite, bksplash,

upgrd appl,

screened porch with stacked stone f/p,

2nd covered deck & porch,

backyd features,

brick patio-fire pit & water feature,

Master Suite on Main w/ tons of space & 3 other bedrms,

add'l bonus for 5th bdrm, w/ in closets,

3.5 full ba

SqFt Information Living Area Above Grade: 3605 Below Grade: 0 Total: 3605 Other Area Above Grade: 0 Below Grade: 0 Total: 0

# Rooms: 13 Beds: 4 Full Baths: 3 Half Baths:

1 Living Area-Room Dim/Levels Entry Hall: 11X22 / Main Office/Study: Master BR: 16X17 / Main Bedroom 5: Living: Kitchen: 15X15 / Main Bedroom 2: 12X16 / Second Utility: 7X17 / Main Dining: 12X13 / Main Breakfast: 11X14 / Main Bedroom 3: 12X13 / Second Bonus: 20X24 / Second Family: 17X18 / Main Loft: 10X16 / Second 12X13 / Second Mud Room:6X10 / Main Bedroom 4: Other Area-Room Dim/Levels Scrnd Porch: 14X16 / Second Garage: 20X28 / Main Storage: Patio: Carport: Porch: 6X22 / Main Deck: 8X20 /

Main General Information Appx Acres: 0.26 Foundation: Crawl Zoning: R-4 Lot Dim: 96X96X96X120 Lot #: 2

Restrictive Covenants: Y

Est Fin Date: 2/2014

New Construction: Yes Framed: No HUD Compliant Senior Housing:

Builders Name: LAWRENCE HOMES

Ownership: Primary Residence: HOA Mgmt: Branch Crossing Mgmt HOA Fees 1: $860 Annually - Req: Y HOA Fees 2: $0

Financing and Taxes Tax Value: Tax Rate: 0.0000 TM/BK/PAR/LT or Deed Page:

Financial Comments: Pre-approved letters only,

New loan needed

Legal Desc: LO2 PATS BRANCH BM 2006-01135 Pin #: 0777634158

Features Design: 2 Story Exterior Features: Covered Porch, Deck, Enclosed Patio, Gutters, Landscaped, Porch, Screen Porch Property Type: Detached Construction Type: Site built (Stick) Acres: .26-.5 Acres Exterior Finish: All Brick Style: Traditional Roof: Shingle, 30 Year WarrantyRoof Age 0-5 Years Basement Desc: A/C: A/C Age 0-3 Years, Dual Zone, Central Air Fuel-Heat: Electric Fireplace Desc: Gas Logs, In Family Room, See Remarks Flooring: Hardwood, Tile, CerBath Flr, Carpet Heating: Dual Zone, Heat Age 0-3 Yrs Lot Desc: Open, Hardwood Trees Water Heater: Tankless Water Heater, Water Htr Age 0-3 Yrs Fees Include: HO Association, Maint Com. Area Water/Sewer: Community Sewer, Community Water Parking: 2 Garage, Attached, DW/Concrete, Entry/Side Financing: New Needed Dining: Separate Dining Room, Breakfast Room Assumption: No Assumption Washer/Dryer Loc: 1st Floor, Utility Room Other Rooms: Interior Features: 10Ft+ Ceiling, Bookshelves, Butler’s Pantry, Cable TV Available, Ceiling Fan, Coffered Ceiling, Granite Counter Tops, Pantry, Smoke Alarm, W.I. Closet, Cath. Ceil., Garden Tub, Trey Ceiling Equip /Appl: Cooktop – Electric, Dishwasher, Disposal, Double Oven, Ice Maker Connection, Microwave, Range Hood Accessibility: Green Features: Green Certs: Green Building HERS Rating: High Perform.

Brought you by Lifestyle Realty Inc.

 

To tour this home please call (919) 809-SOLD or email Ebontsoldit@aol.com