Mortgage Resolution (Litigation)

Posted by on Oct 15, 2013 in Litigation, Mortgage, Personal Finance | 1 comment

Mortgage Resolution (Litigation)

Definition: Mortgage Resolution, also commonly referred to as Mortgage Litigation is the examination of loan documents for the prevalence of fraud in the origination or implementation of the loan. Legal recourse is then sought against the lender based on the findings. It is not a loan modification and the results are typically a lot more impressive. The legal recourse that can be sought is a substantially lower mortgage payment, principal reductions, cash settlements or rescission of the original loan. Between 1999 and 2008 over 80% of all loans were found to have violations. The loan resolution process will find the violations in a loan and provide clients with experienced attorneys for representation against lenders. When loan violations are discovered, the lender will possibly receive penalties and fines. Facing possible penalties lenders will come to the bargaining table. Mortgage Resolution is both the process of pre-litigation and litigation by licensed attorneys against mortgage lenders. The pre-litigation process starts by identifying violations that may have occurred in the origination, implementation, execution or recording of the loan. Over the course of the last 10 years nearly 80% of all mortgage loans have substantial violations. Some of these violations are found in Real Estate Settlement Procedures Act, Truth in lending, appraisal fraud, HUD-1 disclosures, The Home Owners and Equity Protection Act, Mortgage Electronic Registration System improperly foreclosing on properties, failure to record with the SEC or the local county recorder’s office, claiming insurance on your loan and still attempting to collect on the loan. These are just a few of the violations that may exist in your loan. Some of these violations are felonies. Once violations are discovered and a resolution strategy is determined, attorneys then draft a demand letter seeking specific legal recourse. The demand letter will summarize to the lender violations found related to the loan and will include, when applicable, an econometrics damages estimate and a determination of what type of reformation or rescission action sought. You might ask why this is important to you. In the event you have you have violations, which 4 out of 5 loans that are reviewed do, then you now have leverage against you lender to settle the law firm’s demands. You may have fraud (civil and/or criminal) perpetrated against you and the law firm will use this as leverage to settle with your mortgage company. As stated before the results could include a substantially lower mortgage payment, principal reductions, cash settlements or rescission of the original loan. The intent is to ensure that the client is made whole. Individuals cannot rely on their lender to cooperate without proper legal counsel. Experienced mortgage resolution attorneys do not play the games your lender is offering. They go straight to the legal departments and if necessary the US Court System. Mortgage Resolution is a commonly used term but does not always translate to the litigation concept discussed here. Mortgage Resolution is very different from loan modification although the outcomes can be very similar if successful. Mortgage Resolutions is for the consumer who feels they have been a victim of predatory lending practices or was misguided during the loan origination process. If facts were misrepresented during your loan origination or you feel you may be a victim of fraudulent lending practices Mortgage Resolution is for...

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5 Simple Ways To Reduce Debt Payments

Posted by on Oct 15, 2013 in Debt, Debt Relief | 0 comments

5 Simple Ways To Reduce Debt Payments

How You Can Reduce Your Monthly Debt Payments An Advanced Strategy In Debt Reduction: These 5 simple steps to reduce debt are designed for those who are truly struggling with their unsecured debt. There are basic debt reduction steps you can take that are outlined here. The methods listed below are more of a last Hoorah! Before a complete debt settlement or bankruptcy decision is made. Please feel free to contact us if you’d like a free debt diagnosis to find out where you might stand and what your next move should be. Reducing monthly debt payments isn’t rocket science. All it takes is a little organization and determination on your part. If you find yourself struggling to make the minimum payments, and you’re continually watching your balance climb due to high interest rates, give at least one of these options a try. In most cases 2-3 of them will take a substantial load of your back and free you of the stress your unsecured debt has so kindly placed on you.   1. Transfer Credit Card Balances: This option may not be available for everyone, but if your credit is still in good shape there are plenty of offers out there for you. Most of the time you can get a balance transfer credit card at a rate much lower than your present credit card interest rate.  If you do your homework, you can find credit cards offering extremely low introductory APR’s on all credit card balance transfers. There are a few credit card programs left that even offer 0% introductory APR’s on balance transfers; utilizing this period to make interest free payments is extremely beneficial.   2. Negotiate Debts With Creditors: Again, this may or may not work depending on if you’re still current on your payments, and who your creditor is. Unfortunately most creditors are unwilling to negotiate if you’re still making your monthly payments on time. If you are current, and don’t want to “settle” your debt, call and talk to each individual creditor and let them know you’ve run into some sort of hardship. Make sure you’ve got all your facts and figures straight before making the call, this way you know exactly what you’re able to pay to them each month and what your current balances are. In some cases they may even reduce your APR in attempt to assist you. On the flip side of this, as we’ve mentioned above, it seems the majority of companies out there are unwilling to negotiate anything until you’ve defaulted 3-9 months. This is the start of Debt Settlement, which is talked about in more detail HERE.   3. Consolidate Your Debt: Using a debt consolidation company is something that we at Total Debt Network don’t necessarily recommend, and here’s why. In very few cases can a debt consolidation program TRULY help you out? The majority of the time, it only looks better on the outside. Sure your interest rate is a little lower and your payment is a bit less, but generally the terms have been lengthened. Meaning, you’re in debt longer which negates the little savings you’ve accrued anyway. There is a way to consolidate your debt that we do recommend. If your credit is still intact, head over to your personal bank or...

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Debt Settlement Information

Posted by on Oct 15, 2013 in Debt, Debt Relief | 0 comments

Debt Settlement Information

Debt Settlement Programs That Work: Why Trusted Debt Settlement Programs Can Be Exactly What You Need In Your Life! Debt Settlement, also known as Debt Consolidation, is the process of paying less than is owed on credit cards and other unsecured debts, by negotiating with your creditors. Secured debts such as student loans, auto loans, and home mortgages unfortunately do not qualify for such programs. You will need to be in default on your current loans to utilize any debt settlement program and be able to gain the leverage needed to negotiate with your creditors. Typically, debts can be reduced by 40-70%.   Debt Settlement FAQ’s:   Does Debt Settlement Work?:   Yes! However, debt settlement isn’t for everyone. Debt settlement is designed for those who can no longer make their payments, already behind on their payments, or even considering bankruptcy. Debt settlement, when done properly, is a very safe alternative to bankruptcy. Debt settlement may not be an ideal option for those with very little debt. On average, a debt settlement client has $30,000 of unsecured debt.   Does Debt Settlement Hurt Your Credit?:   Debt Settlement is listed on your credit report, so yes, it will definitely impact your score. Debt settlement only works once you’ve been in default on your loans, because if you’re still current, creditors are unlikely to want to work and negotiate with you. Even though debt settlement can adversely affect your credit score, when compared to filing bankruptcy, debt settlement is far less detrimental to your score.   Is Debt Settlement Better Than Bankruptcy?:   Like we’ve discussed Bankruptcy, comparing debt settlement to bankruptcy, should be on a case by case basis. They both have their pro’s, and they both have their con’s. Bankruptcy will offer you legal protection under the court so that you don’t have to worry about being sued or harassed by creditors during the bankruptcy process. Debt settlement does not provide the guaranteed legal protection that bankruptcy does, however most reputable debt settlement companies will work to assist you in minimizing creditor calls and harassment where they’re able to.   Obviously there’s much to consider when deciding which route to take between bankruptcy and debt settlement. Our recommendation is to speak directly to a bankruptcy attorney to make sure you understand all the ins and outs of the process. This will help you make a more informed decision and should not be taken lightly.   If you’re in need of a trusted bankruptcy attorney or debt settlement company, please fill out the form to the right and one of our professionals will contact you personally to assist.   Debt Settlement Tax Implications:   Probably the worst part of the entire debt settlement process are the tax implications. Unfortunately, Uncle Sam won’t let you off completely scott free. Any money saved from utilizing the debt settlement program is considered taxable income by the IRS. Meaning, if you settle $30,000 in credit card debt for $10,000, $20,000 will be considered taxable come tax time. However, this is a small price to pay for the amount saved so this really shouldn’t be a deterrent when considering debt settlement. Should you have any further questions regarding this topic, please contact your personal accountant or tax advisor.   Credit Repair After Debt Settlement:  ...

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How To Qualify For A Short Sale

Posted by on Oct 15, 2013 in Mortgage, Short Sale | 0 comments

How To Qualify For A Short Sale

What is a Short Sale? A short sale can potentially occur when a homeowner finds themselves in a situation of being upside down in their mortgage. What this means is, the current market value of the property is much less than the present mortgage value on the home.  The Lender then agrees to accept less than the mortgage amount by the current homeowner from the sale of the property.   How Do I know if I Qualify for a Short Sale? Qualifying for a short sale today is no easy task unfortunately. There are many variables going into the short sale process. Before getting into all of those, there are 4 vital questions and qualifications one must ask themselves before moving forward with a short sale.   1. Has your home value depreciated since it was purchased? If you’re unsure about this, the easiest way is to contact your local realtor and have him/her pull up comparable SOLD homes in your neighborhood or surrounding area for a precise market evaluation. If you don’t know a trusted or certified short sale agent, we work with the top producing agents nationwide. Simply fill out the form to the right and one of our agents will provide you with a fair market value analysis of your home.   2. Your mortgage must be in or near default There have been cases in the past when the bank will accept a short sale if the loan is not in default, however times have changed and it’s become a rarity that they will do such a thing. Nowadays in the majority of cases, you must have missed mortgage payments, and received a Notice of Default from your lender.   3. Have You Fallen on Hard Times? This step can be the trickiest of all. A hardship letter must be written up and submitted to the bank proving you have fallen on rough times financially. This letter must address why you will no longer be able to continue to make payments. The hardship letter must include detailed financial information in regards to your inability to pay the difference as well.   Some Examples of Hardships May Include: Divorce Unemployment Medical Emergency Bankruptcy Death   4. You Must Have No Assets Having no assets that can be used to pay off the remaining balance is the last big step that needs to be addressed in the short sale process. Your lender will most likely ask for your financial statement, income tax returns and other financial documents to support your claims. If assets are discovered, the lender may not grant the short sale simply because they will feel you have the ability to pay back the shorted difference. If the bank grants the short sale even with your assets, you may be required to pay back the shorted difference.   If you are seeking some professional assistance or simply have more questions in regards to a short sale, please fill out our contact us form to the right and our short sale specialists will assist you. Total Debt Network works exclusively with the best short sale certified professionals and attorneys in the country.  ...

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5 Easy Ways To Improve Your Credit Score

Posted by on Oct 15, 2013 in Credit, Credit Repair | 0 comments

5 Easy Ways To Improve Your Credit Score

A Proactive Approach Never Hurt Anyone: Improving Your Credit Score One Step At A Time A damaged credit score can affect a number of things in your everyday life. Aside from the emotional strain and stress that damaged credit provides, a poor credit score can affect anything from applying for loans, to potential job opportunities. Credit restoration takes more than just time; it requires effort on your part as well. It’s easy, we’ll show you how.   1. Order Your Credit Reports You can’t begin the process of credit restoration without having a good grasp on your own credit situation. This is an extremely important step. You must find out what the 3 main credit bureaus, Equifax, TransUnion and Experian, have on file about you and what is being reported.  Chances are all 3 are going to vary, this is completely normal as creditors aren’t required to report to all 3 bureaus.   2. Carefully Examine Your Credit Reports We can’t stress this enough! Be extremely thorough in your examination. The majority of Americans have incorrect information reported on their credit reports. The credit bureaus are not required to verify the information the creditors send over to them. They generate your credit score/reports based solely on what they receive, regardless of the accuracy of the information. This leads us straight into our next step.   3. Credit Disputes and Resolution Credit errors hurt your credit score more than you may think. This is why creating a dispute is vital. You can do this all online as you’re investigating your credit report. If you prefer to have hard copies of your documents, mailing these disputes in is an option as well. It is important to clearly identify and document all the disputes being submitted. Make sure to print out and keep extensive records of EVERYTHING. Once submitted, a resolution may take up to 45 days to be completed. If you need assistance with this step, please call 888-586-7099   4. Get Caught up on All Open Accounts Devise a structured plan to bring all your open accounts current. Do this as fast as you can. If you’re struggling to make your monthly payments, call your creditors and let them know your situation. Communication is key during this time. The easy way is to just ignore it and hide under a rock, but if you show the creditors you’re actively trying to get caught up, they will work with you and you’ll feel surprisingly relieved after this.   5. Don’t Wait! It’s very easy to become overwhelmed and put off the credit score restoration process. Don’t do this. Whether you’ve just filed Bankruptcy or you’ve finally decided to do something about your situation, get started now. One of the easiest ways to get up your credit score is getting a secured credit card. Go to your personal banking institution and apply. The majority of them will report to all 3 major credit bureaus. This is an excellent way to get your credit score back on track. Start small and remember to keep your CUR (Credit Utilization Rate) between 20%-40%. Be patient, and most of all be smart about your purchase.   Be sure to visit our blog for more information on how to repair your credit, on your own, with little out of...

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