Hub You - What You Need to Know About the Sub-Prime Situation

Short answer: nothing. Nor is every Sub-Prime lender guilty of predatory lending practices. Most mortgage brokers and lenders can still provide quality mortgage financing for the marginal buyer without recourse to dangerous loan practices.

Let your Realtor or real estate attorney watch your back. They are deeply involved in the mortgage process and make it their business to know where the traps lie long before they come to the attention of the Nation, as in the present scandal.

However, if you or someone you know is already in a bad sub-prime loan situation there may be something that can still be done. Here a Realtor cannot be of much help except to point out the areas of the current mortgage that are "fishy" Here a get a good real estate lawyer is essential. On your own the best course is to lodge a complaint with your state's consumer affairs department (see the link below for contact information by state).

A good resource to help deal with mortgage fraud is: http://www.mortgagenewsdaily.com/mortgage_fraud/report_New_York.asp

Meanwhile, the Democrats in Washington lead by Senator Charles Schumer have launched an investigation into predatory lending practices with the intent of drafting legislation to protect consumers. The Supreme Court too has weighed in with a new ruling allowing lenders to offer new terms to borrowers without sanctions from the court. Something most definitely is being done.

In New York State Realtors have a new law that makes it more difficult for a person to lose their home to someone who will never live in it but rather flip the home for a tidy profit, essentially stealing the delinquent owner's built up equity.

However, as a potential homeowner, or a homeowner interested in refinancing, a caution is definitely in order. The good news is that predatory lending is on the way out. And it's about time.

Here are the lenders in question as of April 2007:

New Century Financial Corp., Ownit, Mortgage Lender's Network, People's Choice Home Loans, and ResMAE Corp.

We in the real estate industry have been warning our clients about these shaky loan practices since they started. Americans are being seriously harmed by these technically legal but immoral practices.

I saw this presented in dramatic fashion in the documentary on ABC's Nightline last month (March). My first thought was how anyone could sleep at night and write a loan that could easily cost this retired woman her home. Of course, not every loan officer is a crook. But the guy who sold her that equity loan was obviously a blatant liar and a thief. First he promised that she would have no payments for five years then pressured her by saying she only had until 5:00 PM to sign. Soon she was getting mortgage payment bills for $2,300 a month on a $1,000 social security income. Foreclosure was a foregone conclusion.

They are always out there: the thieves, the swindlers, those that steal far more with a pen or computer than any thug with a gun. They wear suits and ties and act caring and sincere. And they belong in jail. Or at the very least barred from any business where people's lives, health, or homes are at stake.

As mentioned above, your first line of defense in the purchase of real estate is a good Realtor and a good lawyer familiar with the mortgage lender industry. I assure you that we know who the predators are in your area and will make sure you avoid them.

Personally, I just had a situation where the buyers applied for their loan before they started looking for a home. While this makes good sense, it does leave open the possibility that the lender chosen might not be all they appear to be. We started having problems from the first. And when the loan officer continually failed to return phone calls from their client, myself or the attorney regarding suspicious non-standard verbiage in the loan documents I urged them to start over elsewhere. In the end, this not only gave them a much better loan but saved them money. Many borrowers actually qualify for better loans but many lenders prefer to write high profit sub-prime loans that often destroy a homeowner's credit and cost them their home.

Here's what to do to avoid being cheated by predatory lenders:

As mentioned, engage a qualified attorney and Realtor. Obviously, I can't stress this enough. My neither my company, Real Estate New York, nor myself has ever been involved in a home sale that involved predatory lending.

• Avoid loans that do not consider your ability to repay.
• Avoid adjustable rate ARMS and interest only loans unless you are sure you understand the possible consequences of these loans.
• Avoid Universal Default Clauses. These provide mortgage penalties if payments to any other lender are late, even if the mortgage loan is paid up to date.
• Avoid Mandatory Arbitration clauses. They usually remove your legal recourse.
• Avoid Prepayment Penalty Clauses. These charges accrue if you pay off the loan early and can prevent an owner from selling if faced with default.
• Avoid Penalty Interest Rates. These are exorbitant increases in interest rates if a payment is late
• Avoid Balloon Payment loans. These provide for a large payment in a number of years. If you cannot make the payment when due the loan defaults.
• Avoid high LTV (Loan To Value). This means that the debt is larger than the value of the property. An owner with such a loan often cannot afford to sell especially in a declining market. Nor can they refinance with a reputable lender
• Avoid "Foreclosure Rescue Loans" They aren't.

Here are two excellent source of consumer credit fair lending practices: Americans For Fairness in Lending http://www.affil.org/

National Fair House Alliance: Expand Your Reach With an Internet Talk Radio
The success of an advertising media depends on its reach among the audience. Whether it is the print media, electronic media or published media; their unparalleled demand among various sponsors and advertisers is due to the immense coverage they have among the mass. While newspapers, magazines and billboards continue to be an advertiser’s favorite; the streaming media is by far considered the most effective advertising format.Commercials on television and radio are the most popular forms of streaming media advertising; however the increased usage of the World Wide Web has made Internet talk radio advertising a great option. The Internet talk radio is a format that host shows on topical issues. These shows discuss a wide range of topics like business, financep>Meanwhile, the Democrats in Washington lead by Senator Charles Schumer have launched an investigation into predatory lending practices with the intent of drafting legislation to protect consumers. The Supreme Court too has weighed in with a new ruling allowing lenders to offer new terms to borrowers without sanctions from the court. Something most definitely is being done.

In New York State Realtors have a new law that makes it more difficult for a person to lose their home to someone who will never live in it but rather flip the home for a tidy profit, essentially stealing the delinquent owner's built up equity.

However, as a potential homeowner, or a homeowner interested in refinancing, a caution is definitely in order. The good news is that predatory lending is on the way out. And it's about time.

Here are the lenders in question as of April 2007:

New Century Financial Corp., Ownit, Mortgage Lender's Network, People's Choice Home Loans, and ResMAE Corp.

We in the real estate industry have been warning our clients about these shaky loan practices since they started. Americans are being seriously harmed by these technically legal but immoral practices.

I saw this presented in dramatic fashion in the documentary on ABC's Nightline last month (March). My first thought was how anyone could sleep at night and write a loan that could easily cost this retired woman her home. Of course, not every loan officer is a crook. But the guy who sold her that equity loan was obviously a blatant liar and a thief. First he promised that she would have no payments for five years then pressured her by saying she only had until 5:00 PM to sign. Soon she was getting mortgage payment bills for $2,300 a month on a $1,000 social security income. Foreclosure was a foregone conclusion.

They are always out there: the thieves, the swindlers, those that steal far more with a pen or computer than any thug with a gun. They wear suits and ties and act caring and sincere. And they belong in jail. Or at the very least barred from any business where people's lives, health, or homes are at stake.

As mentioned above, your first line of defense in the purchase of real estate is a good Realtor and a good lawyer familiar with the mortgage lender industry. I assure you that we know who the predators are in your area and will make sure you avoid them.

Personally, I just had a situation where the buyers applied for their loan before they started looking for a home. While this makes good sense, it does leave open the possibility that the lender chosen might not be all they appear to be. We started having problems from the first. And when the loan officer continually failed to return phone calls from their client, myself or the attorney regarding suspicious non-standard verbiage in the loan documents I urged them to start over elsewhere. In the end, this not only gave them a much better loan but saved them money. Many borrowers actually qualify for better loans but many lenders prefer to write high profit sub-prime loans that often destroy a homeowner's credit and cost them their home.

Here's what to do to avoid being cheated by predatory lenders:

As mentioned, engage a qualified attorney and Realtor. Obviously, I can't stress this enough. My neither my company, Real Estate New York, nor myself has ever been involved in a home sale that involved predatory lending.

• Avoid loans that do not consider your ability to repay.
• Avoid adjustable rate ARMS and interest only loans unless you are sure you understand the possible consequences of these loans.
• Avoid Universal Default Clauses. These provide mortgage penalties if payments to any other lender are late, even if the mortgage loan is paid up to date.
• Avoid Mandatory Arbitration clauses. They usually remove your legal recourse.
• Avoid Prepayment Penalty Clauses. These charges accrue if you pay off the loan early and can prevent an owner from selling if faced with default.
• Avoid Penalty Interest Rates. These are exorbitant increases in interest rates if a payment is late
• Avoid Balloon Payment loans. These provide for a large payment in a number of years. If you cannot make the payment when due the loan defaults.
• Avoid high LTV (Loan To Value). This means that the debt is larger than the value of the property. An owner with such a loan often cannot afford to sell especially in a declining market. Nor can they refinance with a reputable lender
• Avoid "Foreclosure Rescue Loans" They aren't.

Here are two excellent source of consumer credit fair lending practices: Americans For Fairness in Lending http://www.affil.org/

National Fair House Alliance: The Real Estate Market in Las Vegas, Nevada
Las Vegas is known as a mecca of entertainment and gambling. Although not as hot as the weather, the real estate market is primed to take off again in this expanding city.The Real Estate Market in Las Vegas, NevadaLas Vegas is the biggest city in Nevada and really needs no introduction. With incredible casinos and entertainment, most people only associate Las Vegas with gambling. There is much more to this city in the sun, which is why it is one of the fastest growing cities in the country. In fact, the population is now more than half a million people and everyone move to Las Vegas from somewhere else.The average Las Vegas property sells for about $170,000, a discount of roughly $10,000 compared to the national average. Even with this discountsented in dramatic fashion in the documentary on ABC's Nightline last month (March). My first thought was how anyone could sleep at night and write a loan that could easily cost this retired woman her home. Of course, not every loan officer is a crook. But the guy who sold her that equity loan was obviously a blatant liar and a thief. First he promised that she would have no payments for five years then pressured her by saying she only had until 5:00 PM to sign. Soon she was getting mortgage payment bills for $2,300 a month on a $1,000 social security income. Foreclosure was a foregone conclusion.

They are always out there: the thieves, the swindlers, those that steal far more with a pen or computer than any thug with a gun. They wear suits and ties and act caring and sincere. And they belong in jail. Or at the very least barred from any business where people's lives, health, or homes are at stake.

As mentioned above, your first line of defense in the purchase of real estate is a good Realtor and a good lawyer familiar with the mortgage lender industry. I assure you that we know who the predators are in your area and will make sure you avoid them.

Personally, I just had a situation where the buyers applied for their loan before they started looking for a home. While this makes good sense, it does leave open the possibility that the lender chosen might not be all they appear to be. We started having problems from the first. And when the loan officer continually failed to return phone calls from their client, myself or the attorney regarding suspicious non-standard verbiage in the loan documents I urged them to start over elsewhere. In the end, this not only gave them a much better loan but saved them money. Many borrowers actually qualify for better loans but many lenders prefer to write high profit sub-prime loans that often destroy a homeowner's credit and cost them their home.

Here's what to do to avoid being cheated by predatory lenders:

As mentioned, engage a qualified attorney and Realtor. Obviously, I can't stress this enough. My neither my company, Real Estate New York, nor myself has ever been involved in a home sale that involved predatory lending.

• Avoid loans that do not consider your ability to repay.
• Avoid adjustable rate ARMS and interest only loans unless you are sure you understand the possible consequences of these loans.
• Avoid Universal Default Clauses. These provide mortgage penalties if payments to any other lender are late, even if the mortgage loan is paid up to date.
• Avoid Mandatory Arbitration clauses. They usually remove your legal recourse.
• Avoid Prepayment Penalty Clauses. These charges accrue if you pay off the loan early and can prevent an owner from selling if faced with default.
• Avoid Penalty Interest Rates. These are exorbitant increases in interest rates if a payment is late
• Avoid Balloon Payment loans. These provide for a large payment in a number of years. If you cannot make the payment when due the loan defaults.
• Avoid high LTV (Loan To Value). This means that the debt is larger than the value of the property. An owner with such a loan often cannot afford to sell especially in a declining market. Nor can they refinance with a reputable lender
• Avoid "Foreclosure Rescue Loans" They aren't.

Here are two excellent source of consumer credit fair lending practices: Americans For Fairness in Lending http://www.affil.org/

National Fair House Alliance: Research , Research , Research Before That Job Interview
Complete Industry, employer and job research gives job career search applicants a competitive edge. The work you do before the interview will pay off in spades many times over and over.Employers nationwide report soundly that applicants who research employers well increase their employability as much as 25- 40 %. Thus by doing a thorough job of research of the complete industry, employer and job you will have a big payoff. This is most important both for getting that job, increasing your salary requests and later promotion on the job. Remember that first impressions carry a tremendous amount of weight and that “First Impressions are Lasting Impressions”.The advantages of researching your career field and potential employers affect the success oftion where the buyers applied for their loan before they started looking for a home. While this makes good sense, it does leave open the possibility that the lender chosen might not be all they appear to be. We started having problems from the first. And when the loan officer continually failed to return phone calls from their client, myself or the attorney regarding suspicious non-standard verbiage in the loan documents I urged them to start over elsewhere. In the end, this not only gave them a much better loan but saved them money. Many borrowers actually qualify for better loans but many lenders prefer to write high profit sub-prime loans that often destroy a homeowner's credit and cost them their home.

Here's what to do to avoid being cheated by predatory lenders:

As mentioned, engage a qualified attorney and Realtor. Obviously, I can't stress this enough. My neither my company, Real Estate New York, nor myself has ever been involved in a home sale that involved predatory lending.

• Avoid loans that do not consider your ability to repay.
• Avoid adjustable rate ARMS and interest only loans unless you are sure you understand the possible consequences of these loans.
• Avoid Universal Default Clauses. These provide mortgage penalties if payments to any other lender are late, even if the mortgage loan is paid up to date.
• Avoid Mandatory Arbitration clauses. They usually remove your legal recourse.
• Avoid Prepayment Penalty Clauses. These charges accrue if you pay off the loan early and can prevent an owner from selling if faced with default.
• Avoid Penalty Interest Rates. These are exorbitant increases in interest rates if a payment is late
• Avoid Balloon Payment loans. These provide for a large payment in a number of years. If you cannot make the payment when due the loan defaults.
• Avoid high LTV (Loan To Value). This means that the debt is larger than the value of the property. An owner with such a loan often cannot afford to sell especially in a declining market. Nor can they refinance with a reputable lender
• Avoid "Foreclosure Rescue Loans" They aren't.

Here are two excellent source of consumer credit fair lending practices: Americans For Fairness in Lending http://www.affil.org/

National Fair House Alliance: Insurance: A Necessity for Peace of Mind
There are many choices for insurance. Insurance is a policy where you pay in a certain figure, that you do not usually get back, and pays out in the event of a certain situation. The details vary according to the type of coverage.Health insurance was invented to help with your medical care. You will typically pay in a certain amount every month called premiums and you may have invest a certain percentage on your presciptions and doctor's visits but the insurance is created to help you with the costs. It will also help you in emergencies such as a broken bone, accident or a sudden illness. Insurance is there to benefit you if you are having a baby or any other time you require regular care.Car insurance is intended for accidents; either yoi>Avoid Universal Default Clauses. These provide mortgage penalties if payments to any other lender are late, even if the mortgage loan is paid up to date.

Here are two excellent source of consumer credit fair lending practices: Americans For Fairness in Lending http://www.affil.org/

National Fair House Alliance: http://www.nationalfairhousing.org/index.php

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