USHUD

Via Mike Wald, Scottsdale, AZ, mortgage consultant, 480-659-4514: The FTC has proposed a rule that would ban upfront fees for loan modifications nationwide. Hallelujah. hopefully this is not to little to late! Per the rule, companies offering such services would have to... wait until after receiving a documented offer from the loan servicer or mortgage lender to collect payment. "Homeowners facing foreclosure or struggling to make mortgage payments shouldn't have to contend with fraudulent ‘companies' that don't provide what they promise," said FTC Chairman Jon Leibowitz, in a press release. "The proposed rule would outlaw up-front fees so companies can't take the money and run." Additionally, the rule would ban providers from telling consumers to stop communicating with their lenders or loan servicers, advice that could land a borrower in even more trouble. And to stop sharing misleading facts regarding the the cost, refund, and cancellation policy, the chances of getting a loan modification, and how long one might take. Loan modification providers would also need to disclose the total price of the service, that they're "for-profit" businesses unaffiliated with the government or the consumer's lender/servicer, and that there is no guarantee the lender will agree to modify the loan. Of course, the proposed rule generally exempts entities that own or service mortgage loans, and lawyers would have limited exemption if they represent consumers in a bankruptcy or other legal proceeding (always loopholes). Upfront fees are already banned in 20 states, most notably California and New York. The FTC proposal has a 45-day public comment period ending March 29, 2010; this may have been helpful a year ago...

The New York Times cited a study that claims foreclosures will continue to rise through the summer, peaking at 5.1 million homes, or more than 10 percent of residential inventory that will be worth 75 percent or less than the mortgage on the property.

Many new real estate investors hold the misconception that the banks own foreclosure homes; however, whether through a Deed of Trust or Mortgage, the title to your home is either held by a third party or pledged as security for the loan. So, in fact, the bank does not actually own,

To boost the residential foreclosure segment of the housing market, FHA has suspended its anti-flipping rules beginning today, Feb. 1. The move will help lower-income and first-time buyers.