Consumer Financial Protection Bureau Can Help You With Your Credit Report Errors

From our friendly lender Dan Dobbs: useful information on the new consumer protections put into place by the Consumer Financial Protection Bureau....

The Consumer Financial Protection Bureau (CFPB) now allows consumers to “directly dispute” misinformation by directly uploading their complaints on line.
Complaints can be fact checked effectively, and resolved quickly.

And the CFPB is handing out million dollar fines and certifying class action lawsuits against violators.

Consumers now have a “hammer” to force the three credit bureaus and credit vendors to clean up their records.

To begin the complaint process go to their website(CFPB).
The CFPB estimates that 55% of all credit reports have significant inaccurate information.

Below are the most common examples of misreporting.

a) Information is “not creditor’s

b) Belongs to someone else, identity theft, fraud, etc.

c) Account terms are reported wrong

d) Creditor name/info, balance, payment, etc.

e) A ccount status

f) Paid bill on time, account closed, etc.

g) Wrong date of birth, address, etc.

h) Inaccurate public records (Bankruptcy, judgments, etc).

i) Reinserted (previously deleted) information

j) Credit Reporting company's investigation was flawed



To dispute an issue, the consumer must first order a credit report from each bureau and file a dispute for each derogatory item with the specific credit reporting bureau.

Once the bureau has reviewed the filing, they must (within 30 days) inform the consumer the results of their investigation.

Assuming the investigation is negative, the consumer should appeal to the CFPB for relief. Continue reading this post on Dan Dobbs site. And Don't forget if you have questions on your mortgage - are interested in refinance or even a new mortgage Dan is really great place to start. Give him a call at 949-250-3981

Interest Rates Lower Than Ever

[caption id="attachment_2256" align="aligncenter" width="170"] History Of Interest Rates[/caption]

With Shopping for good deals being the focus of the day I thought it was pertinent to bring up our historic low interest rates. Sure we have heard for some time now that interest rates are low, however, It is one thing to hear it but to see this chart it really brings it home.

The best way to take advantage of these great rates is to be pre-qualified with a a good lender. If you need a recommendation don't hesitate to call us at 760-408-5300 or visit our home loan page on our web site.

Help For California Home Owners

[youtube http://www.youtube.com/watch?v=dg4y96bz9yI?rel=0&w=560&h=315]

This site offers clear programs that can help some California home owners stay in their homes or ease the transition of getting out of it.

Well worth a look and

PLEASE NOTE

this is a totally free service. If you are asked for money or payment you have gone to the wrong site. Recheck the link. As always if you have questions give us a call at 760-408-5300. We will help you for free as well!

The main website this video came from:

http://www.keepyourhomecalifornia.org

Breaking News! Foreclosure Reviews Pending

November 1, 2011 it was announced that consumers who were foreclosed on may be eligible for a review of their foreclosure and possible compensation for any wrong doing. Banking regulators are stepping up to the plate and acknowledging that massive irregularities, in 2009 and 2010,  in the processes of the 14 major loan servicing companies requires this review.

The most likely candidates for this review are homeowners who knew something was wrong with their mortgage paperwork but could not get anyone to listen to them back when banks became flooded with foreclosure actions. Many of these homeowners were actively pursuing mortgage loan modifications when the foreclosures took place.

Bank regulators are starting the process by requiring the banks to mail a letter to the former owners of the estimate 4 million cases they intend to review. The reviews will be done at no cost to consumers.  This is a plus as a typical review, often called a forensic audit, could cost a private individual anywhere from $2,500-$5,000.

If you feel like there was something wrong with your foreclosure, now is the time to act. Even if you do not receive one of these letters now is the time to take action.

More information can be found at:

IndependentForeclosureReview.com,   or  toll-free phone line, (888) 952-9105

See more information about short sales and foreclosures on our website

Why Helping Underwater Mortgage Holders Is Big Deal

RELIEF FOR SOME:

This week the administration came up with a new plan.  Their intention is to help people who are currently living with a mortgage on a home that is worth less than the face value of the loan, get a lower payment. For those who don't follow home lending very closely, the problem right now is that if you owe say $150,000 on your home and it is only worth $120,000 then you are shut out of refinancing to take advantage of the historic low interest rates.

Right away I started hearing negative comments that this would "help as few as 250,000 homeowners" but certainly no" more than 1 million."  That this just was "not enough" and would "never help the economy to the extent that it needs to be helped."  And on and on and on.

First I would like to say ....come on people,  just stop it! The negativity is not helping and since when is helping up to  1,000,000 people stay in their homes NOT a good idea? I bet it is going to feel like a real good idea to those people. I bet the banks will appreciate having up to 1,000,000 loans no longer at risk of default. Most of all I think we should note that there are several very fair parts of this proposal.  First, homeowners have to be current on their mortgage. No one can say that bad behavior is being rewarded. Secondly, no one is getting any principle reduction it is just a rate reduction. The program will simply help get around some rules about loan to value ratios that where set in place in different economic times.

Personally I think the administration should be given some credit for coming up with a proposal that is pretty positive. It is not a giveaway - it will not be another program to throw money at. It is an adjustment of terms that will create a relief valve for hundreds of thousands of homeowners in a troubled economy. Sure there is more to do but this is a pretty reasonable step in the right direction.

THE DIRTY TRUTH:

As a full time Real Estate agent I can tell you very clearly what I see. It is very easy to paint one big picture of struggling homeowners as either deadbeats who won't pay their bills or unfortunate scenarios of health issues and job losses. But there is a big middle ground full of people that do not fall into either category. Every week I sit with people who are on the edge. They see homes just like theirs selling for $100,000 less than they paid. They have huge financial pressures on them.  They are struggling with pay cuts, layoffs, increased work loads and rising health care costs. It may not seem "responsible" but I have to tell you these people are seriously contemplating walking from their mortgages.

Sure they can make the mortgage this month and perhaps next month but they are on edge. There is a temptation to go that route. They feel so close to the breaking point they are actively considering it ..they are thinking "it wouldn't be so bad to have to rent for awhile" These people are your friends and neighbors. The receptionist at the insurance office, the retail store clerk, the cable TV installer, the retired couple next door who sees their nest egg dwindling much faster than they ever imagined it would. We can insist that what they are thinking about doing is not right - not fair - but IT IS REALITY.

THE REALLY BIG DEAL:

This is why the current proposal is such a big deal. By preventing the "on edge" section of the population avoid this choice there is a much larger ripple effect. Preventative rather than reactive. By putting several hundreds dollars a month back into household budgets, with a policy change not a giveaway, we are taking a step towards housing market stability that is much bigger than people may realize.

Canadian Citizens- US Loans For You Available Again!

Good news for Canadian buyers of US real estate. Our good friends at Pacific Premier bank are once again able to offer home loans for 2nd home purchases in the USA.

Download the flyer

The details of this offer are as follows:

5 year fixed at 4.65% with no points to be paid. Adjustable yearly after that.
There is also a 7 year fixed option at 4.875% with no points to paid.

Downpayment requirements:

35% down payment for Single family homes
45% down payment for Condos

For more information please call Leah Verigan at Pacific Premier Bank
760-969-4557 or  LVerigan@ppbi.com

Foreclosure Can Mean Different Things - Depending Where You Live

Mention the word foreclosure and most people can conjure up the mental image of someone forced out of their home for not paying the mortgage.  Of course this is the broadest and truest sense of what Foreclosure really means and in the last few years it has become distressingly common to hear about in our daily lives.

As a Real Estate Agent I deal with it on a daily basis. The primary way it comes up in my life is a homeowner expressing fear about the inevitability of being foreclosed on.  The mental image most of my clients seem to have is the ultimate end point of foreclosure where the sheriff shows up, guns drawn forcing you to the street.

That point is very far down the road.  The banks are slow to act (more on that below) and the process is much more predictable than most people realize. First you have to understand the process in your particular state.  Part of the US has a process that is called judicial foreclosure where the lenders actually have to go to the court system to take the house back.  The New York Times recently wrote that in New York State the lenders would need 62 years to process all the 213,000 homes currently in some stage of default.

A little more than half the US states do not use the judicial foreclosure process and things can move a little quicker than that.  However, there is still a process, a set time frame in which the foreclosure takes place – do not allow fear to take over. The same article in the New York Times says that all the defaults in California could be processed in three years.  This is still a considerable mess and a huge expenditure of time effort and energy on the lending industry to attempt to get back on course.

So what is the point?  Well even if you only read the headlines you have probably noticed that they are saying that the rate of foreclosures is slowing. There are many factors here. Banks are slowing down the actual foreclosures and going for more loan modifications and short sales. Then you have a higher percentage of homeowners who are trying to fight to stay in their homes.  The people who had 100% financing and “no skin in the game” as it were have pretty much moved through the system.  Those loans were the first to turn sour and get foreclosed on.  More of the people in default now have, or had, an equity stake in their property. Finally there is intense regulatory pressure on the banks by the government. Talk to anyone in the mortgage industry and it quickly becomes clear that the ever changing but increasing pressure from the Government is helping in someways and hurting in others but the end result is a slowdown in the process.

If you or someone you know is in default on your mortgage. Talk with a trusted professional about the process in your state. Start your conversation by first understanding the process then apply it to your situation.  A Realtor, CPA or legal counsel are a good places to start. Scam artists and people who want up front payments to help you save your home should be avoided at all costs. They will only make your situation worse and do no good. Your home is too important an asset to operate in the dark – you must understand the process and come up with a plan of action that is fact based not fear based.

Read More about Foreclosures

Read More about Short Sales

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How Much Home Can I Afford?

     Knowing how much home you can afford is more crucial than ever.  This handy calculator will help you get the whole picture.  As you enter your figures it will help you see the true cost of your loan. Keep in mind the percentage of your monthly expenses that will be devoted to your housing expense should probably not exceed 30% of your income.  Calculate my monthly Payment

If you need an Insurance Agent to give you a quote please just let me know and I would be happy to refer one.  Also, keep in mind that property taxes in the Palm Springs area average 1.15% of purchase price so we use 1.25% as a general guide.  Typically your property taxes will be lower than this.

Lastly, be sure you understand the closing costs. Closing costs are the cost of the financing.  While they are deductible, in  most cases on your taxes, they  can eat into the amount of money you have to put down.

Treasury Department Issues Statement

Yesterday, November 18th, the Treasury Department issued a statement about the measures the government is taking to help home owners in distress. It is interesting to read for two reasons. One if you are in a modification program you can compare what you are being told and what the governments stated objective is for that program. Two, if you are wondering what options are really out there and confused by the media coverage it is spelled out pretty clearly in this speech.

To see the whole statement visit my page about it on this blog or use this link Treasury Department Statement.

This Month In Real Estate Aug 2010

July 2010 This Month In Real Estate

HAFA Program Explained

This video does a great job explaining the basics of this new program that is quickly becoming the benchmark for handling short sales.

Save your Home - Get Help Now!

Dramatic words but these are tough times. Many people are finding that they are in a place they never thought they would be - in Danger of losing their home.

As an Real Estate Agent I see this and talk with people everyday who have some sort of issue with their home loans. Many home owners need help right away but are afraid to call attorneys because of the cost.

In times like these there are some that would take advantage of you. It is hard to know who to trust. I have seen many foreclosure prevention scams come across my desk.

Recently I became aware of the a non-profit organization called Neighborhood Assistance Corporation Of America. NACA for short.

This organization offers, for no charge, a program that will help you analyze your problem and see if you need a loan modification, a refiance or a restructuring of your loan. They will even look for things that were done incorrectly in your initial paperwork.

As I said they do this all for free. Your requirement is to attend one two hour introduction session. Then the balance of the work can be done on the phone or online.

I have gone over their materials that they provided to a client of mine and was very impressed.

I have long urged people not to fall for scams that require upfront payments and absurd promises that they will do all the work and you will be debt free. With NACA I seemed to have found the real deal. Go to their website by clicking on the icon above and see what you think.

If any reader has had a bad experience with NACA I would like to know as so far I have only seen and heard good things.

Keep in mind any of the legitimate option to save your home, restructure a loan or reduce your payments will require paperwork. However, NACA has that all neatly detailed in their materials for you.

As always if you have questions about Real Estate in the Palm Springs California area contact Michael Layton.

Going, Going, Gone..... Before You Knew It!

California has come up with a new tax credit of up to $10,000 for first time home buyers as well as on new homes or homes never previously lived in. The program does not officially start ...and you can't even apply for it until May 1, 2010 but rumours are swirling that all the funds in the program maybe gone before the month is out.

The total tax credit allocation for all taxpayers is $100 million for first-time homebuyers and $100 million for new homes, both on a first-come, first-served basis. Needless to say if you want your share of these funds the time to act is May 1st. Call your lender now and be prepared to take advantage of this very generous incentive plan.

If you need A lender recommendation please see California Lenders

New Short Sale Plans Offered By Feds

Certain Banks are now eligible to provide HAFA short sale plans to borrowers. Essentially this is an attempt by the Feds to make short sales a more organized and fair process for the primary homeowner who, for whatever reason, finds themselves having to sell in a short sale scenario.

In order to qualify you must meet these guidelines:

 The property is the borrower’s principal residence;
 The mortgage loan is a first lien mortgage originated on or before January 1, 2009;
 The mortgage is delinquent or default is reasonably foreseeable;
 The current unpaid principal balance is equal to or less than $729,7501;
and
 The borrower’s total monthly mortgage payment (as defined in Supplemental Directive 09-01) exceeds 31 percent of the borrower’s gross income.

You will be hearing lots about this new program and confusion is bound to exist as the program get up and running and Realtors, lenders and the general public start to digest the complexities of the program.



Two advantages I see right away are the release of liability on the forgivben debt. In other words no tax bill coming on the difference between what you borrow ed and what the bank was paid off.

And homeowners who move throught he program will then be eligible for up to $3,000 relocation money.

A disadvantage I see is that you have to try a loan modification first through the HAMPA plan. This is another Federal program designed to try and modify your loan and keep you in the home. The biggest problem with these is that the debt is just shifted around and not forgiven or removed. This does not solve the issues for most homeowners.


To read about the entire HAFA program use this link