Bank of America halts foreclosures in all 50 States

It's nearly the end of 2010 and Bank of America, JP Morgan Chase and a few others are halting foreclosures pending an investigation into whether these foreclosures are totally legit. Seems there's been a lot of paper-pushing, but the procedures have not passed muster in terms, I guess, of due process in some instances, and proper documentation, etc. So the bank has voluntarily halted all foreclosures to make sure it's people have the procedures right, and that families who shouldn't be foreclosed on, aren't foreclosed on. Stay tuned.

The Workout: Are there errors on account such as the amount in escrow?

If you have been served with a foreclosure petition, you may find that some of the information is not accurate in your account. The law allows you to request a clarification from your lender in writing. RESPA (Real Estate Settlement Procedures Act) is the law that was enacted in 1990. It requires the lender to respond within 20 days of receipt to acknwledge receipt of the QUALIFIED WRITTEN REQUEST. And it further gives the lender 60 days to conduct an investigation if the borrower claims an error.

FORECLOSURE RESCUE SCAMS

There are many types of so called foreclosure rescue scams. Here are three examples:

1) Phantom Help scams:
Under this plan, the home owner is led to believed they are being helped by the "rescuer" who poses as someone who will work on the homeowner's behalf to call the lender, negotiate terms, do paperwork, all of which the homeowner could do him or herself. Then the homeowner runs out of time becuase important deadlines may be missed and the "rescuer" leaves the homeowner and basically runs off with the money. The homeowner could lose the home and sometimes it would have been preventable if the homeowner had gotten the right help.

2) Bait and Switch scam:
The homeowner is led to believe they are signing a refinance document or some other document but in fact they are signing over the deed to someone who may not even be at the closing and who the homeowner has never heard about. Deeds are actually forged in this scenario. And the homeowner is tricked into transfering ownership of the home for a pittance.

3) False bailouts scam:
The homeowner is led to believe that he is giving up title for a short period of time till he gets back on his feet. So he will stay in the home and be a renter. Known as the lease buy back scheme, the homeowners are "told that surrendering title is necessary so that someone with a better credit rating can secure new financing to prevent the loss of hte home." But the end result is that the homeowner never gets to buy back the home because they can never meet the new terms and the "rescuer" takes the home and all the equity.

Commercial Properties in New York are in distress

According to Crains, New York's commercial properties are experiencing significant distress. Many investors are waiting on the sidelines for the bottom to fall out so that they can acquire the properties at wholesale prices. Commerical foreclosures

What is MERS?

It is an acronym for Mortgage Electronic Recording Systems. These days, the holders of mortgages which are various trustees, banks and mortgage companies, can record a deed electronically instead of physically going down to the court house.

The practice of recording deeds electronically can make it very difficult for defendant's attorneys to determine who has "standing" to sue a homeowner for foreclosure.

How does Bankruptcy impact foreclosure?

If all other options fail, filing bankruptcy (a chapter 13) may be a way to buy yourself time to come up with the money to pay the arrears on your mortgage. Bankruptcy STAYS the foreclosure

Foreclosures hit wealthy neighborhoods

Many homeowners in the top income brackets, with homes worth in the millions, are starting to lose their homes. Even here in New York the rate of foreclosures for wealthy owners has spiked in recent weeks.