Hard Money Loans

A foreclosure judgment on behalf of HSBC Mortgage Services Inc. was reversed by the District Court of Appeal of Florida, Second District. In California, GMAC Mortgage Corp. was denied its application for service upon a borrower by publication in the Santa Clara weekly. A foreclosure filed by Bank of America was dismissed by a judge in the Superior Court of New Jersey Chancery Division.

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GMAC Mortgage has disclosed that it is dismissing about 250 Maryland foreclosure cases. Affidavits in the cases were apparently “robo-signed.” The dismissals give borrowers another chance to avoid a foreclosure.

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The 50 state attorneys general probing foreclosure practices are considering using a third- party monitor to ensure that banks comply with any settlement they reach, Connecticut Attorney General George Jepsen said.

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There are a lot of different loan options out there that you may not be familiar with. Balloon loans, bridge loans,  and many, many more loan types are out there, each offering a different set of advantages and disadvantages, each one potentially just what you’re looking for. If you’re thinking of taking out a mortgage, it may be best to learn a little bit about the alternate options you can choose from before settling on a loan type.

Hard Money Loans

A hard money loan is a type of asset-based loan in which the borrower uses the value of his or her real estate in order to secure a loan. That is, the collateral for the loan is the property itself. Such loans are rarely given by traditional lending institutions, for a number of reasons. These loans are similar to bridge loans, with a few key differences, notably that bridge loans often apply to real estate properties which are in transition. Hard money loans are often used to avoid foreclosure or bankruptcy.

One of the major benefits of this type of loan is that credit score is virtually irrelevant. Because the loan is guaranteed by the property itself, the lender is less interested in your credit history. Additionally, such loans have a low loan-to-value ratio as an added benefit to the lender. A loan-to-value ratio describes the amount of money loaned to the value of the collateral. Usually, a hard money loan has a loan-to-value ratio of about 60% to 70%. If you had a ratio of 65%, then a property valued at $100,000 would guarantee a loan of $65,000.

This lending business took a hit in the late 1980s as the real estate market collapsed, partially due to the overestimation of the value of properties used as collateral in such loans. Because of this, the loan-to-value ratio was lowered significantly to allow for added security to the lender. Hard money loans are largely unregulated, and are provided by commercial lending firms rather than traditional lending institutions.

Because of all the different options out there, and the relative riskiness that can go along with some of them, it can be a good idea to talk to a loan expert before making a decision. For more information about the property loans, visit http://www.mortgagemodificationmaryland.com

Joseph Devine

Author: Joseph Devine
Article Source: EzineArticles.com
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A $12 million settlement was reached in a lawsuit filed by the Federal Trade Commission against National Foreclosure Relief Inc. A $60 million lawsuit was filed in October by California’s attorney general against US Loan Auditors. In Florida, the U.S. Department of Justice announced that Peter James Porcelli II was sentenced to prison and hit with a $1.8 million judgment.

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Washington, DC, United States (AHN) – Officials of American mortgage giants Fannie Mae and Freddie Mac denied Wednesday they caused the foreclosure crisis, instead blaming mortgage services and law firms that they contract.

The executives told Congress that since the two companies do not service loans the responsibility for managing payments by borrowers on home loans or foreclosing mortgages that have defaulted is with the mortgage servicers and loan firms.

Fannie Mae Executive Vice President for Credit Portfolio Terence Edwards said the mortgage servicers are the primary front-line operators who have contact with the borrowers. Fannie Mae pays them service fees to work with borrowers during the duration of the loan.

However, acting Comptroller of the Currency John Walsh disputed Fannie Mae and Freddie Mac’s explanation, countering that the companies’ policies contributed to the foreclosure problem. In particular, he identified the large number of documents used by Fannie Mae and Freddie Mac in their mortgage foreclosure processes.

Walsh said large national bank servicers, namely Bank of America, Citibank, JPMorgan Chase, HSBC, PNC, Wells Fargo and U.S. Bank, have similar deficiencies in their foreclosure processes, which the OCC and other banking regulators are reviewing.

The Treasury Department spent in 2008 $135 billion on Fannie Mae and Freddie Mac after the federal government seized the two firms to cover their losses on soured mortgage loans. In mid-November, President Barack Obama nominated North Carolina Banking Commissioner Joseph Smith Jr. to head the agency that has supervisory power over Fannie Mae and Freddie Mac.

Smith will replace Edward DeMarco, who headed the Federal Housing Finance Agency since August 2009. The agency is in the midst of preparations to overhaul the two mortgage lending giants.

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There are a number of places that have been substantially damaged by the slumping economy in the United States. These are all places that have been impacted in that home values are going down and unemployment levels are going up. These are places where people are less likely to be able to handle their loans. This is why more loan modifications are being offered. Loan modifications from agencies like 1st Foreclosure Mortgage can work to get anyone to stop a foreclosure and save a home.

The Unites States Department of Housing and Urban Development has created new services through its Neighborhood Stabilization Program. This is used to help with giving out grants to local governments that can help to assist homeowners who are at risk of having their homes foreclosed upon. The services that are being offered are working to handle loan concerns that people who are at risk of foreclosure can have.

It is estimated that six billion dollars has been handled through the NSP for handling services. Every state government got a base support payment of $19.6 million. Some of the money that has not been handled yet will be doled out to areas that have to deal with higher foreclosure and unemployment rates. These include places like Michigan, California and Arizona.

This is an important service for people in states that have been impacted severely by foreclosures to see. Many loan modification specialists like the ones with 1st Foreclosure Mortgage will be working to see that clients are going to be able to work with this money. This is needed because of how this money can work to make a better loan modification easier for one to handle. It can also be used as an incentive for lenders to work with loan modification services in a number of hard hit areas.

Another beneficial thing to see is that the government is working to support counseling for people who need services. Loan modification agencies like 1st Foreclosure Mortgage are receiving $150 million in funds to use for housing counseling services. This is used to get people to learn how to handle different services and how to deal with funds that will be used for paying off a mortgage after it has been modified. These funds are needed as a means of making sure that loans can be properly modified.

Many local agencies that can work with loan modifications can work with the standards that have been imposed by the government. This is provided that they work to handle agreements with HUD and to work with a guarantee. Failing to work with a good guarantee will cause an agency to lose money through a series of penalties.

Loan modifications can be great to see in areas that have been impacted substantially by the economy. HUD is working to handle different types of services and is offering funds in grants and counseling services to local governments and to loan modification specialists. These funds are being used to ensure that loan modifications can be easily handled.

Florida attorney David J. Stern laid off around 560 employees as his major clients abandoned him. Stern’s office is under investigation for allegedly fabricating documents in foreclosure cases. The move followed the termination of Stern’s law firm by Fannie Mae and Freddie Mac.

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With the foreclosure crisis raising jitters about bank losses, Chris Farrell says government should steer clear of further help to ailing financial firms

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Amid revelations of the banks’ potentially massive legal problems, Housing and Urban Development Secretary Shaun Donovan said Wednesday that 11 federal agencies are examining aspects of the home foreclosure and financing messes that have stalled the U.S. economy. While revelations about loan servicers’ use of phony affidavits and failure to transfer loans properly have dominated the headlines, major banks appear to be facing far bigger perils. Not only could they be blocked from evicting delinquent borrowers, but they also face the possibility they will be forced to buy back as much $120 billion in mortgage bonds that have since sunk in value.

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