Stop Foreclosure Answer

In early March the Obama Administration announced the Making Home Affordable Program. A major portion of this program deals with mortgage modifications.

The modification part of the program is impressive. It brings down the monthly mortgage payments of people facing foreclosure to 31% of their income. Many people who in the past would never have been able to save their homes will now be able to do so.

A major drawback of this part of the program is that it is too restrictive. It only covers first mortgages on primary residences. It does not cover many other types of mortgages.

The first is second mortgages. The Obama Administration has said that they are working on a plan to deal with second mortgages. This has not been released yet. The challenge is that the longer the delay the bigger the problem becomes.

It also does not cover mortgages on second homes or vacation property. Most of these are located in recreational areas. People will be less likely to save these from foreclosure. The home and property values in these areas will drop more drastically and take longer to recover.

Third – the modification program does not cover mortgages on investment properties. When these mortgages go into foreclosure, not only are the owners impacted but also the renters typically have to find a new place to live. Here again the impact on a local economy is huge.

I urge you to write to you congressman and senators and ask them to address the shortcomings of the Making Home Affordable Program. A plan needs to be developed to help people who are falling behind on all mortgages not only those on their primary residence. It needs to include second mortgages and mortgages on second homes, vacation homes and investment properties.

Please do this as quickly as possible.

Much Success,

Mark Elkins

From 2000 to 2006 some mortgage lenders and mortgage brokers frequently used deceptive and unlawful tactics when advertising and selling subprime mortgages.

They frequently targeted people who had issues with their credit and who could not qualify for a regular mortgage.  They fed on the dream these people had to own their own homes.

What were some of the tactics they used?

They offered people mortgages with significant financial risks without adequately explaining the risks to them.  Frequently these were adjustable rate mortgages where the interest rate and monthly payment were fixed for 2 to 3 years.

These people were not told how much the interest rate and payment would increase at the end of the 2 or 3 years.  They were not told that the interest rate and payment could adjust every 6 months or year from that point forward.

The fact the payment after the first 2 or 3 years would be significantly higher and it could continue to rise with each subsequent adjustment was never disclosed

Sometimes the mortgage lenders and mortgage brokers gave these people interest only mortgages while implying that they were regular mortgages where part of every payment went toward reducing the principal balance.

Sometimes the people were told that the interest rate was lower than the rate on their closing papers.  They were not informed that they did not have to accept this mortgage.  They ended up accepting the mortgage with this higher rate.

At times the mortgage they were given was an adjustable rate mortgage with several different payment options.  In all conversations with the mortgage lender or broker they were told that their payment would be a certain amount.  When they got their payment information, they learned that the payment they were initially quoted was indeed low.  However, it did not even cover the interest due on the mortgage.  Each month they paid that amount, the difference between that and the full amount of interest due would be added to their principal balance.  If they made that lower payment, they would owe more on the mortgage than the amount they originally borrowed.

They were given mortgages where the monthly payments were much higher than they could pay. In their conversations with the mortgage lender or broker, they were never told what the monthly payment would be.  They were never asked if they could handle that payment along with paying their other bills on a regular basis.

Any of these practices provide a basis for a lawyer to take action against a mortgage company and to start legal action to save a home from foreclosure.

If you were the victim of any of these tactics and are now facing foreclosure, contact a lawyer immediately.  Explain what happened and how you believe you were misled by the mortgage lender or broker that got your mortgage for you.

The sooner you act the more quickly you will see a resolution to your problem.

Much Success,

Mark Elkins

P. S. Check out my EBook at http://www.stopforeclosureanswer.com. It contains ideas for you to take charge of the foreclosure process and to keep your home – the home you always wanted and have worked so hard for.