August 31, 2007

FHASecure

Filed under: FHASecure

WASHINGTON – President George W. Bush today announced that HUD’s Federal Housing Administration (FHA) will help an estimated 240,000 families avoid foreclosure by enhancing its refinancing program effective immediately. Under the new FHASecure plan, FHA will allow families with strong credit histories who had been making timely mortgage payments before their loans reset-but are now in default-to qualify for refinancing.
 
In addition, FHA will implement risk-based premiums that match the borrower’s credit profile with the insurance premium they pay-i.e., riskier borrowers pay more. This common-sense, risk-based pricing structure will begin on January 1, 2008.

“Many hard-working American families who were able to make their mortgage payments under the initial teaser terms of the exotic loan are now struggling to make ends meet because their rates have doubled or tripled,” said HUD Secretary Alphonso Jackson. “FHASecure will bring stability to the housing market and give eligible families who were in good financial standing before their loans reset a chance to keep their homes.”

The combination of FHASecure and risk-based premium pricing will permit FHA to return to the role it was originally designed to play, bringing stability to the real estate market by helping break today’s cycle of foreclosures and price depreciation and creating much needed liquidity in the now-constricted mortgage market.

FHA has recently experienced a substantial increase in the number of conventional borrowers refinancing into FHA products. With FHASecure, it can help even more. The number of these refinancing transactions has tripled since the start of 2006. FHA’s transactions are projected to surpass 100,000 loans by the end of the fiscal year. To date, these figures do not include refinances for delinquent borrowers.

The FHASecure initiative will operate under the same safe guidelines as the FHA’s existing mortgage insurance program without affecting FHA’s financial health. Eligible homeowners will be required to meet strict underwriting guidelines and pay a mortgage insurance premium, which offsets the risk to FHA’s insurance fund at no cost to the taxpayer.

The risk-based insurance premium structure will further expand FHA’s reach to additional underserved borrowers, particularly minorities and first-time homebuyers who have been disproportionately lured into exotic mortgages, and enhance the FHA’s overall risk management. The move to risk-based premiums ensures that FHA remains on solid financial footing as a self-financed agency for the long-term.

FHASecure, like all FHA products, will be underwritten to ensure the borrowers have the ability to repay the loan, will require escrow for taxes and insurance, and will continue to offer unprecedented foreclosure prevention assistance. The FHA has never permitted and will not include pre-payment penalties or teaser rates that are common in exotic mortgages and have caused much of the current market troubles.

To qualify for FHASecure, eligible homeowners must meet the following five criteria:

  1. A history of on-time mortgage payments before the borrower’s teaser rates expired and loans reset;
  2. Interest rates must have or will reset between June 2005 and December 2009;
  3. Three percent cash or equity in the home;
  4. A sustained history of employment; and
  5. Sufficient income to make the mortgage payment.

“FHASecure is designed for families who are good borrowers but were steered into high-cost loans with teaser rates,” said Assistant Secretary for Housing-FHA Commissioner Brian Montgomery. “These homeowners, many of whom are minorities, need a safe, affordable mortgage product that will help build wealth. All FHA borrowers pay mortgage insurance premiums to offset claims to the FHA insurance fund and ultimately prevent risk to the taxpayer.” (more…)

Arizona Judgment

I just went on the county court site and found out that I have 2 judements against me here in Arizona. I know that I have paid one of them off and I was wondering do they stay on your credit report even when you pay them off and for how long. Also I was wondering if there is anything I can do to fix that.

Jackie (more…)

Federal Subprime Mortgage Help

Filed under: Mortgage,Real Estate

The Wall Street Journal Online reports:

“WASHINGTON — President Bush, looking for ways to respond to the subprime-mortgage crisis, will outline a series of policy changes and recommendations today to help borrowers avoid default, senior administration officials said.

Among the moves will be an administrative change to allow the Federal Housing Administration, which insures mortgages for low- and middle-income borrowers, to guarantee loans for delinquent borrowers. The change is intended to help borrowers who are at least 90 days behind in payments but still living in their homes avoid foreclosure; the guarantees help homeowners by allowing them to refinance at more favorable rates. (more…)

Debt Collection after a 1099-C

First of all I want to say you have an excellent and very informative web site.  I have a question that I think will stump you. 

Let’s assume I have a credit card with a credit card company.  Let’s also assume that I quit paying on this account and the credit card company reports that loss on their taxes as most businesses do.

If a business would write that account off and the credit was given by the IRS on the proper form then in my opinion there is no debt anymore.  If anybody owns it the government does.

My question is this.  If the credit card company writes it off as a loss how can they turn around and sell that account to a Junk Debt Buyer?  Just to make this more interesting I will ask a second question.  If the account was written off how can the Junk Debt Buyer purchase anything that really no longer exists? 

I personally don’t know of any company after a debt has been written off that will even attempt to collect it at a future date.

It just appears to me that the credit card company is trying to have it both ways.  First claiming the loss on taxes.  And secondly then turning around and selling something they really don’t have the right to sell. 

Can I please take my star now or must I continue to try and Stump The Experts.

Thanks again for a really great web site.

Robert (more…)

August 30, 2007

New Mexico AG Slams Debt Collector!

Filed under: Collections,FDCPA

(SANTA FE)—The office of Attorney General Gary King is suing an Illinois debt collection company for violating New Mexico’s Unfair Practices Act (UPA) while attempting to collect debts that are legally unenforceable because the statute of limitation has run without disclosing that material information to the debtors.

Merchants’ Credit Guide Company is also charged with violating the Collection Agency Regulatory Act for having engaged in debt collection activities in New Mexico without a proper business license.  The Act requires any debt collector attempting to collect New Mexico incurred debt from New Mexico residents to obtain a Collection Agency License from the Department of Regulation and Licensing, Financial Institutions Division.  Merchants Credit Guide Company is alleged to have attempted to collect at least 23,300 accounts in New Mexico before it became licensed on April 1, 2005.

The Attorney General also alleges that the company engages in unfair or deceptive business activities when leaving messages on debtors’ home answering machines and voice mail by failing to identify the purpose of the call as an attempt to collect a debt.  Federal law requires debt collectors to identify themselves and disclose the purpose of the call.

The lawsuit, filed in the Thirteenth Judicial District, Valencia County, asks the court to order Merchants’ Credit Guide Company to meaningfully disclose to all debtors from whom it is attempting to collect time-barred debt that the obligation cannot be enforced in any court, to identify its purpose of an attempt to collect a debt in all telephone messages left at home telephone numbers, and to force the company to return all monies collected while in violation of the UPA.

(source=ago.state.nm.us/pio/pressrel/2007/pressrel_2007.htm)

Texas Debt Validation

My vehicle was repossessed in April of 2005. I was two months late on my payment and had made firm arrangements to pay with my first check. Two days before I received my check, the finance company repossessed my vehicle while I was working. Recently, I pulled my credit report and soon after began receiving calls from the finance company. I attempted to make arrangements but the finance company stated I could make a lump settlement no payments. From day one they have stated this. I advised recently that I still have no means to pay a lump sum.

A month later the finance company placed account with Collection agency. Since then I have received two notices from them and two calls. One voicemail incidated my file was being turned over to the state of Texas for legal proceedings and one of the Collectors told me they were preparing to file suit. My question: The finance company charged off the balance in June of 2005 but are charging me the same interest rate when I purchased the vehicle and the collection agency total amount is $2000 in addition to the balance forwarded to them from the finance company. I would like to know where I could further research the amount of interest that can be charged and for how long after a charge off by the original creditor has been placed. 2. What type of fees can a collection agency charge. 3.and I was considering sending in a $10 payment along with a letter disputing balance and requesting info from collection agency for a breakdown of the fees to make sure these are legal and applicable charge added to balance. What type of letter would be possibly get results?

Amanda (more…)

Collection Reporting Wrongs

Why is it that paying the collection agency without getting a PFD can lower your score? How does FICO come up with that calculation? Why won’t your score raise with a paid in full or 0 balance?
Oh…Awesome website by the way.

Chuck (more…)

August 29, 2007

Join Paul’s Family

Filed under: Credit Repair,Mortgage

The Broken Credit Blog was created eighteen-months ago and the traffic to the site has been growing exponentially ever since.  I want to thank everyone who has contributed to our mutual success and in making this the #1 credit blog on the internet!

OK, it’s time to give back to the Broken Credit Blog fans.  We are working on a system to refer all of our visitors to professionals that truly want to help them when they ask for help.  Our intention is to track the success of each referral and monitor these relationships so that we develop the absolute best industry professional resource on the web.  We are looking for the following professional folks:

  • Mortgage Brokers
  • Short Sale Experts
  • Credit Experts

If you would like to be a part of our referral network, then Join Paul’s Family!

Mortgage Is All Locked Up….Unfortunately

This is a mortgage problemTranscript of Mortgage Problem Video from wxyz.com:

[HEATHER] JILL BLAZE HAS WORKED HARD FOR HER HOME. SO SHE WAS FURIOUS WHEN HER MORTGAGE COMPANY REFUSED TO HELP HER – AFTER THEY ADMITTED THEY MADE AN ERROR ON HER CREDIT HISTORY.

JILL BLAZE TAKES PRIDE IN HER HOME.

BUT WHEN SHE MET WITH HER MORTGAGE BROKER BACK IN MARCH… JILL WAS IN FOR A SURPRISE.

[Jill Blaze/Homeowner] “I started the process to refinance my house, because I knew my interest rate was going to go up in September. She had then pulled my credit report, found out I had a late payment, delinquent payment, and I’ve never been late.”

JILL SAYS SHE CONTACTED HER LENDER – HSBC – TO DEFEND HER PAYMENT HISTORY.

[Jill Blaze/Homeowner] “I went to their website and pulled my payment history, and its right there, clear as day, that they screwed up, where they credited my account, and debited, and credited. You could see it was their error.”

JILL SAYS HSBC SENT HER THIS LETTER… ADMITTING THAT THE INFORMATION THEY REPORTED TO THE CREDIT BUREAUS WAS “SUBMITTED IN ERROR.”

[Jill Blaze/Homeowner] “I was upset. You know, you work very hard in your life to get your credit to a good score.”

JILL SAYS THE TROUBLE DIDN’T END THERE. TWO MONTHS LATER… SHE FOUND OUT THAT HER MORTGAGE WAS NO LONGER BEING REPORTED AT ALL TO THE CREDIT BUREAU’S. JILL SAYS SHE CALLED HSBC AT LEAST 50 TIMES IN ORDER TO GET HER MORTAGAGE LISTED AGAIN WITH THE CREDIT BUREAU’S.

[Jill Blaze/Homeowner] “They would go and say I don’t understand why we’re not doing that, and I’d tell them the whole speel – I’m trying to refinance, I can’t you guys are holding me up, you’re not reporting it. I just kept getting the run around over and over and over.”

NOW JILL FOUND HERSELF UP AGAINST A DEADLINE. COME SEPTEMBER FIRST… HER MORTGAGE RATE WAS GOING TO ADJUST, COSTING HER AN EXTRA $126 A MONTH.

[Jill Blaze/Homeowner] “I’m a little freaked out. It’s only $126, but $126 is gas now for a month. That’s a lot of money for a single person.”

SO SHE ASKED HSBC TO EXTEND HER CURRENT RATE FOR A FEW MONTHS… UNTIL THE REPORTING ERRORS COULD BE CORRECTED.

[Jill Blaze/Homeowner] “He basically said, there’s nothing I can do for you. And you feel very alone, you feel like you’re up against this huge company, and basically they’re there to make money, they’re not there to help me. They want to make the extra $126 a month.”

THAT’S WHEN JILL CONTACTED THE INVESTIGATORS. AFTER WE CALLED HSBC – TWO DAYS LATER, THEY OFFERED TO LOCK IN JILL’S CURRENT RATE FOR THE REST OF HER 30 YEAR LOAN.

[Jill Blaze/Homeowner] “I was very happy, you know, after you fight so long to get something, and I was only looking for 6 months, and they gave me the rest of my loan. So I can take my time, if I want to refinance down the road, so that’s fine.”

[HEATHER]

HSBC TOLD ME, BECAUSE OF THEIR PRIVACY RULES, THEY CAN’T TELL US WHY JILL BLAZE’S INFORMATION WASN’T BEING REPORTED TO THE CREDIT BUREAU’S.

BUT THEY DID SAY, HSBC “IS STRONGLY COMMITTED TO DELIVERING EXCELLENT SERVICE TO IT’S CUSTOMERS AND ACTIVELY ENCOURAGES CUSTOMERS TO CONTACT US DIRECTLY WHENEVER ANY PROBLEM ARISES WITH AN HSBC ACCOUNT. WE PLEDGE TO RESOLVE THOSE PROBLEMS TO THE BEST OF OUR ABILITY.”

Sensible Auto Loan

Filed under: Auto Loan,Bad Credit

Hello, how would i go around getting a car loan for 7000 dollars. Im 16 and need a cosigner but my mom is the only person that i live with that will sign but she does not have great credit.I make 1200 dollars a month in the summer but only about 350 in my current school job a month.  Ive heard of bad credit auto loans , how do u get those? i only have like 300 dollars saved up and i need a car now.

Michael (more…)

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