Archive for the 'National News/Local News' Category
Illinois Attorney General Sues Debt Settlement Company
October 12th, 2009 categories: Loan Modification, National News/Local News
Illinois Attorney General Lisa Madigan has filed a law suit against Dallas Based “Credit Solutions of America”. Madigan is attempting to stop them from doing business in Illinois and wants the company to pay restitution to its Illinois customer, pay a $50,000 fine for violating the state’s Consumer Fraud Act and pay additional fines of $50,000 for each instance of fraud.
In the lawsuit, Credit Solutions of America accepted money from Illinois customers but failed to negotiate a lower payment on their debt with the bank. While Credit Solutions claimed to be successful in reducing customers debt by 50% it actually left them deeper in debt according to the law suit.
Lisa Madigan and the Illinois Attorney Generals office has filed similar lawsuits against SDS West Corporation and Debt Relief USA.
Her office seeks to ban all Debt Settlement Companies from operating in Illinois, unless they meet the following requirements:
- Provide individual credit counseling:
- Become licensed and Bonded in Illinois:
- Disclose risks to customers about entering into a debt settlement contract;
- Provide a written contract with a right to cancel clause.
Over the past year the Attorney Generals office received over 12,000 complaints regarding debt an credit issues.
| Discussion: No Comments »
Listen to NPR Report “FDIC is Running out of Money”
September 30th, 2009 categories: National News/Local News
| Discussion: No Comments »
Do You Feel the Recession is Over?
September 23rd, 2009 categories: National News/Local News
Last week we heard news that the “Recession is Over” and that we are on the “Road to Recovery”. Economists looked at several indicators from consumer confidence, stock market,housing, and concluded that the “Worst is Over” and we should be coming out of the recession.
Why it appears we may be coming out of a recession there were words of caution. Both Fed Chairman Bernake and Treasury Secretary Geithner warned us that even though we are coming out of a recession it may not feel like it and it will be slow.
There are still concerns about unemployment and predict the number of people unemployed will continue to lag even though we are in a recovery.
| Discussion: No Comments »
Countrywide Told it could not Pass the Buck …
August 20th, 2009 categories: National News/Local News
Greenwich Financial Services wins case against Countrywide Financial in the State of New York.
Greenwich Financial Services, as Plaintiff, alleged that Countrywide had no right to transfer any losses onto trusts who purchased loans from Countrywide and sold them as Securities to Investors.
As part of a class action law suit made against Countrywide by the Attorney Generals in at least 15 state, Countrywide Financial Corporation agreed to reduce payments on hundreds of mortgages that were thought to be fraudulent. The total amount of this settlement was up to $8.4 billion dollars.
In its lawsuit Greenwich Financial Services, said that any agreement to reduce payments was not something that investors had agreed to and that if there were any losses or reductions in payments to investors then Countrywide had to payoff the loans so investors would not loose money.
While we will never know who owns these bad loans the complaint states that the number of Investors could be in the thousands. When Countrywide needed money it pooled and sold loans to Trusts, these Trusts in turn sold securities( often called “certificates” which were sold in different classes or ‘tranches”)
| Discussion: No Comments »
13% of All Americans are Behind in their Mortage…
August 20th, 2009 categories: National News/Local News
The Mortgage Bankers Association new numbers indicate more than 13 % of American homeowners are behind on their mortgage or in foreclosure.
As of June, 4% of all mortgage borrowers were in foreclosure and 9% had missed at least on mortgage payment.
According to the Mortgage Bankers Association, one in three new foreclosure is from a prime, fixed rate mortgage, rather than a sub-prime, adjustable rate, or option arm mortgage.
The recession, economy, and loss of jobs have been listed as the primary reason mortgage delinquencies are on the rise.
The number of jobless claims for unemployment benefits has risen for the second week in a row from 561,000 to 576,000.
| Discussion: No Comments »
Foreclosure Activity Is Up After Ban Is Lifted
August 18th, 2009 categories: For Buyers, National News/Local News
Illinois Foreclosure Activity is up 35% after ban is lifted.
According to Realty Trac, 14,524 foreclosures were filed in July. One in 361 housing units received a foreclosure filing in July.
Illinois is now 8th highest nationally with the number of foreclosures.
| Discussion: 1 Comment »
Foreclosure News Briefs
July 17th, 2009 categories: National News/Local News
Chicago Crain reports Antoin “Tony ” Rezko , the controversial fundraiser for Barak Obama and Governor Blagoyavich, home is to be auctioned off in Wilmette as part of a foreclosure lawsuit by Lasalle Bank (aka Bank of America).
The home is 8,400 SF and the loan balance is $5.15 million dollars. The auction is to take place on August 10, 2009. Local realtors estimate the true market value of the home to be between $3-4 million dollars.
Chicago Crains reports that former Bulls Star Eddie Curry is in foreclosure on his $3.7 million dollar mansion in Burr Ridge. This was the same home the former Bulls Center was bound and robbed in 2007.
Also in the News, Plymouth Consultants, Inc. a British Virgin Islands Investment Co. has filed a lien on a home in Highland Park for $12 million dollars. The 7,000 SF home was described as a “lakefront mansion” was used as collateral for the loan.
| Discussion: No Comments »
Who Do You Believe?
July 16th, 2009 categories: National News/Local News
The New York Times announced that JP Morgan Chase has reported $2.7 billion dollar profit this second quarter even though we are in the midst of the worst economic downturn in decades.
Meanwhile in a Chicago Crains article, Realty track was quoted reporting a 32 % increase in foreclosure filings in Illinois. In Illinois, 10,796 households received a foreclosure notice in June, or one in every 486 households.
Based on these two different article, who are we to believe? Are the banks getting better and or are more homeowners loosing their homes to foreclosure?
One would believe a little bit of both.
Certain big banks and JP Morgan Chase is one of the biggest, has benefited from the stimulus plan and while reporting some profits is not totally out of the woods as some experts are predicting.
There are not only bad debts on the books of the bank but if the economy continues to slump and unemployment continues to rise as some experts predict the current health of the banks will be in question.
As I have said in the number 1 problem that we are about to face is the rise in unemployment. As more people loose their jobs more homes will be foreclosed by banks and therefore threaten the banks balance sheets.
| Discussion: No Comments »
Foreclosures Affect Wealthy Families Too.
June 19th, 2009 categories: National News/Local News
According to Chicago Crains the most expensive home sold in 2006 is pending foreclosure from its lender Amcore Bank in the amount of $16 million
The property is a 400 acre estate horse farm that includes a 10,000 SF home built in 1992 with guest and staff quarters, numerous barns and 1/2 mile race track. The property has a conservation easement that restricts any future development on the property to 8 additional homes.
The property was sold to the current owner in 2006 in a sealed bid for $19 million dollars. This sale was the most expensive home sold in Illinois at that time.
According to Crains the foreclosure suit was filed by Amcore Bank when the homeowners failed to payoff their $14.5 million mortgage when it became due in May 2009. The owners have a counter suit against the bank.
| Discussion: 1 Comment »
Obama Plan Defined
June 8th, 2009 categories: Loan Modification, National News/Local News
Making Home Affordable Program often referred to as the “Obama Plan” offers two programs: Home Affordable Refinance: For borrowers who are current on their mortgage but find it difficult to refinance because the value of their home has declined in value. Eligibility:
- You must own a 1-4 unit building
- The loan must be a Fannie Mae or Freddie Mac Loan.
- For Fannie Mae call: 1-800-7Fannie (8am to 8pm EST) or visit Fannie Mae
- For Freddie Mac call: 1-800-Freddie (8am to 8pm EST) or visit www.freddiemac.com
- You must be current on your mortgage,
- What you owe on your mortgage is the same as the current market value or slightly less.
- You have a job and income to support a new loan at a lower rate.
Home Affordable Modifications: For borrowers who are either struggling to keep their loans current or are all ready behind on their mortgage. Eligibility:
- You must owne a 1-4 unit building
- Have an unpaid principal balance equal to or less than $ 729,750
- Loan Origination date on or before January 1, 2009
- Have a mortgage payment including taxes, insurance, association dues that is more than 31% of your gross income.
- Have a mortgage payment that has become difficult to pay due to loss of job, income or other personal family problems which is considered a hardship.
- The loan Modification program is a voluntary program with the following Mortgage servicers
| Discussion: No Comments »
