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Archive for March, 2009

How not to be a victim of foreclosure fraud

March 31st, 2009 Comments off

As the number of struggling homeowners facing foreclosure continues to rise, so do the number of unscrupulous individuals and firms will to prey on them.

“A mortgage lender or a financial counselor can assist you in finding real options to avoid foreclosure,” said Sissy Osteen, an Oklahoma State University Cooperative Extension resource management specialist. “If someone is offering to consult with your lender and offers to arrange to stop or delay foreclosure for a fee be sure to check his or her credentials, reputation and experience. It’s important to protect yourself and not be a victim of a foreclosure scam.”

Resources for checking out a foreclosure prevention and counseling agencies include the U.S. Department of Housing and Urban Development (HUD), the National Association of Foreclosure Prevention Professionals (NAFPP) and the local Better Business Bureau (BBB). The Federal Deposit Insurance Corporation (FDIC) also recommends  NeighborWorks America, the Fannie Mae Counselor Search, the National Foundation for Credit Counseling (NFCC), and the Homeownership Preservation Foundation among others.

“Homeowners facing foreclosure need to be aware that foreclosure rescue scam artists are out there in full force and see this as a prime opportunity to make money,” said Ken Wade, CEO of NeighborWorks America in February 2009. “If you are facing foreclosure, contact a HUD-approved nonprofit housing counseling agency to receive foreclosure counseling. Nonprofit organizations do not ask for a fee to help you avoid foreclosure. Be wary of any rescue company that attempts to charge you for help.”

Osteen agrees and offers the following tips to help homeowners avoid foreclosure prevention fraud:

  • Be sure the counseling organization is on the Department of Housing and Urban Development’s (HUD) list of approved agencies.
  • Do not work with a counselor or agency that collects a fee prior to providing any service or that accepts payment only by wire transfer or cashier’s check.
  • Read all paperwork thoroughly and understand what it says in detail before signing.
  • Remember – if an offer seems to be too god to be true, it probably is.

NeighborWorks America also reminds individuals never to release financial information online or over the phone to companies or individuals you know nothing about.

The National Association of Foreclosure Prevention Professionals (NAFPP) includes contact information for 47 individuals and organizations across the nation. The NAFPP website at www.nafpp.org includes a list of 49 must-ask questions to help consumers avoid foreclosure prevention fraud and scams. The site also includes instructions for filing complaints against NAFPP members or their representatives and requesting mediation.

Those preferring to learn about their options without actually meeting with a counselor can order “Avoiding Foreclosure,” a free DVD for consumers, from the NFCC.

Osteen offers one last piece of advice to those seeking to prevent foreclosure.

“If a person offers you a guarantee, be cautious,” she said. “Reputable counselors won’t guarantee to stop the foreclosure process, no matter the circumstances. This usually involves legal action outside the abilities of a counselor. Working with a legitimate counselor can definitely increase your chances of keeping your home, just be careful of those promises. Be sure to get everything in writing.”

Shrewd moves net couple $500 a month

March 31st, 2009 Comments off
Wise financial moves have left a couple with $500 a month to invest. What should they do with it?

Does an unactivated credit card hurt score?

March 31st, 2009 Comments off
Many consumers have gotten cards but never activated them. What does this do to their credit scores?

Afternoon Quickie 03/31/2009

March 31st, 2009 Comments off

Huffington Post - Time for a Grand Inquest on the Financial Crisis
Financial Times - ‘Tarp cop’ launches probes into bail-out fraud
Deal Journal - Evening Reading: Absolute Power at the Treasury?
Calculated Risk - Tiered House Price Indices
Housing Wire - Insured Mortgage Defaults Up 47 Percent: Report

Morning Quickie 03/31/2009

March 31st, 2009 Comments off

Mortgage Insider - Fannie, Freddie to the rescue?
MISH’S Global Economic Trend Analysis - Banks Walk Away On Foreclosures
Housing Doom - Bill Maloni: How I would Remake Federal Financial Regulation
Huffington Post - “Economists Laid End To End”: Judging The Geithner Plan

Paying tax on canceled debt

March 30th, 2009 Comments off
Unless you meet certain exclusions, the IRS considers canceled debt as ordinary income.

Share values may differ at conversion

March 30th, 2009 Comments off
Various factors may explain why different classes of shares may not be equivalent at conversion.

Life happens, and so does bankruptcy

March 30th, 2009 Comments off
Bankruptcy isn't just the stuff of over-consumption. It's caused by real people with real problems.

Afternoon Quickie 03/30/2009

March 30th, 2009 Comments off

Media Channel - Needed: A New Commission To Probe Corporate Crime
RealtyTrac - Frustrated Homeowners Take a Walk
Huffington Post - AIG NAME CHANGE
Rain City Guide - Sunday Night Stats - Snapshot of “bottom”
RealtyTrac - Will Loan Modifications Change With Washington?
Calculated Risk - “My Manhattan Project”

Morning Quickie 03/30/2009

March 30th, 2009 Comments off

Naked Capitalism - Auto Company Plans Rejected by Task Force
Infectious Greed - Stating the Auto Obvious
Naked Capitalism - Guest Post: The Banks Were Profitable In January And February Thanks To… AIG
Huffington Post - “Let Them Have Stained Carpets” - Obama’s Marie Antoinette Moment
MISH’S Global Economic Trend Analysis - G-20 Targets Hedge Funds, Ignoring Everything Worth Discussing
Financial Times - A new plan needed as the cycle grows vicious