It May Be Time to Think About Refinancing Your Mortgage (Again)

July 22, 2016 By

House made of dollar bills

Due to shifts in global bond markets, the average interest rate on a 30-year fixed-rate mortgage was 3.49 percent on Monday, which is down from 4.2 percent a year ago. Therefore, it’s a good time to check the rate on your home mortgage because you might be able to save money from refinancing.

According to The New York Times, mortgage rates could even fall further in the upcoming weeks as banks begin to pass more of the savings from low rates in the bond market through to customers. Since refinancing makes sense when rates have fallen by a full percentage point, people who took out loans before 2010 or at the prevailing rates in 2013 and 2014 might see favorable economics for refinancing. Additionally, lower rates make it a good time for people to refinance if they want a different type of mortgage. In addition to talking with a mortgage broker or a banker, you can use this link to figure out whether refinancing might make sense in your situation. Unfortunately, as has always been the case, there is no way to know whether rates will pop back up or continue to drop.

Filed Under: Foreclosure, Mortgage Lending, Mortgage Refinance

Homeownership Obstacles

August 25, 2015 By

There are many obstacles that stand in the road to homeownership. Prospective buyers need to take many preventative measures to ensure their deal. A simple precaution a buyer can take is evaluating all financial information with their lender. Any surprises could disrupt the lending process. Another step to take would be not to make any major purchases when the deal is being closed. This is because lenders can recheck the buyers credit history right before closing, and any new credit obligations may cause for concern.

In today’s competitive market, buyers must obtain more than just pre-approval, but also obtain a loan commitment. A loan commitment is a guarantee that the needed money will be made available to the buyer. This commitment can help ensure the buyers success in this competitive house market.

Contact Shaffer & Gaier – Protecting Homeowner Rights

The law firm of Shaffer & Gaier protects the rights of those who are facing foreclosure or seeking mortgage modifications in New Jersey and Pennsylvania. To set up a free initial consultation, contact our office online or call our foreclosure hotline at 855-289-1660. Or call our office location in Philadelphia at 215-751-0100, or in New Jersey at 856-429-0970.

Filed Under: Foreclosure, Foreclosure Defense, Home Owners, Homeownership, Mortgage Lending, Mortgage Modification, Mortgage Refinance, Uncategorized Tagged With: , , , , , , , , , ,

SoFi and Online Mortgage Lending

August 24, 2015 By

SoFi – How Millennial Usage of Online Mortgage Lending is Changing the Home Lending Landscape

A young couple each in their early 30’s found themselves buying a house outside of San Francisco. Being first time buyers, they searched for sources of financing on the Internet. Online they found a lender called social finance (SoFi). They received pre-qualification in 15 minutes and then got the documents for pre-approval and submitted a formal offer within a week. Because of SoFi’s simplicity, they were able to easily close on their new home.

Large groups of millennials are changing the mortgage industry because more and more lenders are using technology that enables borrowers to submit documentation online. This allows more non-bank start a blenders to compete in the mortgage industry and it also gets mortgage brokers out of the mix (who many blame on the crisis of the last decade) . Online lenders like SoFi are so appealing to millennials because of their online tools and fast closing times. Borrowers feel much more in control of their financial status due to the DIY system provided by online lenders. This freedom is what banks are unable to match.

Contact Shaffer & Gaier – Protecting Homeowner Rights

The law firm of Shaffer & Gaier protects the rights of those who are facing foreclosure or seeking mortgage modifications in New Jersey and Pennsylvania. To set up a free initial consultation, contact our office online or call our foreclosure hotline at 855-289-1660. Or call our office location in Philadelphia at 215-751-0100, or in New Jersey at 856-429-0970.

Filed Under: Bank Loan Modifications, Current Events, Foreclosure, Foreclosure Defense, Home Owners, Homeownership, Mortgage Lending, Mortgage Modification, Mortgage Refinance, Online Mortgage Lenders, SoFi Tagged With: , , , , , , , , , , , , , , ,

U.S. Supreme Court Finds in Favor of Homeowners

February 9, 2015 By

In 2007, a couple from Minnesota, Larry and Cheryl Jesinoski, refinanced their mortgage with Countrywide. Exactly three years later the Jesinoskis tried to rescind the loan by writing a letter to Bank of America Home loans, which purchased Countrywide during the housing crisis. This meant that Larry and Cheryl, through the Truth in Lending Act, had the right to cancel their mortgage as long as they did so within three years after the transaction was completed.

Yet, Bank of America tried to block the rescission and the Court of Appeals for the Eighth Circuit ruled in favor of the bank, stating that the borrower must not only give notice but also file a lawsuit within three years. However, on Tuesday Jan 13, 2015, the U.S. Supreme Court ruled in favor of the couple, with Justice Antonin Scalia interpreting the law, stating that it without a doubt requires only a notification of rescission within three years and not litigation. Please note that when a loan is rescinded, however, the homeowners often have to give the mortgage loan funds and fees back to the bank or lender.

Contact Philadelphia Foreclosure & Mortgage Modification
Attorneys Shaffer & Gaier

To set up an appointment, call our foreclosure hotline at 855-289-1660 or contact us online. Your first consultation is free of charge. Evening and weekend meetings can be arranged upon request. We will travel to your home if necessary to meet with you.

Filed Under: Bank Loan Modifications, Bank of America, Countrywide Mortgages, Foreclosure, Foreclosure Defense, Home Owners, Mortgage Lending, Mortgage Modification, Mortgage Refinance, Mortgage Settlements Tagged With: , , , , , , , , , , , , , , , ,

New Jersey Foreclosures Lead the Nation

January 6, 2015 By

South New Jersey Foreclosure Attorneys

As of November 2014, information released by the Mortgage Bankers Association indicates New Jersey leads the nation in foreclosures. For the most part, the foreclosure crisis that followed the 2008 financial meltdown has abated and returned to levels seen before the 2008 recession. In New Jersey, however, one in six home mortgages is either delinquent or in foreclosure. While the percent of mortgages in foreclosure or delinquent is slightly less than this time last year (8 percent and 7 percent respectively in November of 2013), New Jersey is still posting foreclosure rates substantially higher than the national average.

Why Foreclosures are Higher in New Jersey

Part of the reason why New Jersey’s foreclosure rate is so high at this time is due to how foreclosures are handled in New Jersey. Under state law, foreclosures must go through the courts, which inevitably prolong the process. Additionally, due to a near halt in foreclosure activity in 2011 after questions regarding allegations of abuse and fraud in the mortgage industry, the system now has to play catch up.

Interestingly enough, most of the troubled mortgage loans are ones that were made prior to 2007.  According to Mike Fratantoni, the chief economist for the Mortgage Bankers Association, 74 percent of delinquent loans were made before the beginning of the 2007 sub-prime mortgage crisis.

Mortgage Troubles? Contact Foreclosure Attorneys at Shaffer & Gaier

If you’re facing foreclosure or the bank has already initiated foreclosure actions against you, it’s important that you understand your legal rights and protections. In some cases, foreclosure can be avoided if you bank is willing to refinance your home. If this isn’t an option, short-selling your home can help you avoid bankruptcy and other unwanted financial complications.

To learn how we can help you, contact the foreclosure attorneys at Shaffer & Gaier today. We have offices in Haddonfield, New Jersey, Philadelphia, Pennsylvania, and Fort Lauderdale, Florida.

Filed Under: Foreclosure, Foreclosure Abuses, Foreclosure Defense, Mortgage Fraud, Mortgage Lending, Mortgage Modification, Mortgage Settlements Tagged With: , , , , , , ,

Make Your Home Affordable

November 20, 2014 By

According to the US Census bureau, there are over 75 million homeowners in America; homeowner, however, is a broad term used to encompass many Americans on all different “levels” of homeownership. Based on a study conducted by the Department of Housing and Urban Development, of these 75 million homeowners, only 40% of the homes were paid off. Therefore 60% of US homeowners are essentially still paying a monthly bill for their homes and do not hold the deed that equates to actual ownership.

Be it that 45,000,000 American homeowners do not in fact actually own their homes, foreclosure is an ominous threat lurking at a vast number of doorsteps. With the aftershock of the recession still weighing heavily on our economy, an increasingly large number of Americans are finding their once affordable monthly mortgage payments are now incredibly unaffordable. As overwhelming as it is to realize that once seemingly reasonable mortgage payments now exceed your budget, it is important to never forget that help is available through a variety of channels for homeowners just like you. Specifically, a loan modification is a permanent change in the original terms of your loan that result in a payment you can afford. The Home Affordable Modification Program, commonly known as H.A.M.P., is a federal program specifically designed to offer loan modifications to eligible homeowners in mortgage debt

Been turned down before? Don’t panic. Many changes have been made to these programs to maximize the eligibility and assist as many borrowers as possible in retaining their homes. Don’t lose your home to due to circumstances out of control. It’s worth it to get the help that you deserve.

Contact Our Office

To set up an appointment, call our foreclosure hotline at 855-289-1660 or contact us online. Your first consultation is free of charge. Evening and weekend meetings can be arranged upon request. We will travel to your home if necessary to meet with you.

Filed Under: Foreclosure, Foreclosure Defense, Home Owners, Homeownership, Mortgage Fraud, Mortgage Lending, Mortgage Modification Tagged With: , , , , , , , , , , , , , ,

PA SUPREME COURTS ALLOWS DEFAULT TO STAND AGAINST BANK OF AMERICA

September 10, 2014 By

As an update to a blog I posted in January, 2014, in which I discussed a default judgment I secured for my client against Bank of America, the Pennsylvania Supreme Court just ordered that the default judgment shall remain in place. I filed a lawsuit against Bank of America in Delaware County, PA for predatory lending and unfair trade practices. The bank failed to answer the lawsuit and I moved for a default judgment. Of course, the bank appealed, asking the trial judge to allow it to file an Answer, but the trial judge refused. The bank unsuccessfully appealed to the Superior Court and then to the Pennsylvania Supreme Court, also unsuccessfully.

This means that the case can now proceed to a jury trial to determine the amount of my clients’ monetary damages. Certain discovery issues need to be worked out; primarily I am in the process of securing testimony from a Bank of America Corporate Representative regarding the net worth of the company in 2012 and 2013.

This is because I included a claim for punitive damages, which are used to punish the defendant for wrongful conduct. One of the ways that a jury is allowed to and able to determine an appropriate dollar amount for damages is to consider the net worth of the defendant. The Bank is, of course, objecting to such an inquiry, and is not agreeing to produce such a representative; again, the trial judge will decide the scope of the deposition testimony. I am hopeful for trial in January/February 2015. I will keep you posted.

Contact the law firm of Shaffer & Gaier, LLC

We provide a free initial consultation to anyone with concerns about foreclosure or who is involved in foreclosure proceedings. To schedule an appointment, call our foreclosure hotline at 855-289-1660 or contact us online. Evening and weekend meetings can be arranged upon request. We will travel to your home if necessary to meet with you.

Filed Under: Bank of America, Current Events, Foreclosure, Foreclosure Defense, Mortgage Lending, Mortgage Modification, Mortgage Settlements Tagged With: , , , , , , , , , , , , , , ,

Recovering from a Short Sale

July 1, 2014 By

Borrowers who owe more money than their homes are worth sometimes can get out from under by negotiating a short sale with their lender. A short sale is when a lender agrees to accept less than is owed on a property and in result, the borrower can walk away and avoid foreclosure. Yet, short-sellers are branded as high-risk borrowers, so new loans will not come quickly or easily. Fannie Mae, the federally controlled mortgage investor, sets a minimum amount of time that must elapse before a short-seller is eligible for another loan. For example, for those who can only put down 10 percent on their next home, Fannie Mae requires a four-year waiting period. Yet, borrowers who can put down 20 percent of their next home, the waiting period is shortened to two years. This waiting period is a penalty on borrowers who did not fully repay a previous loan and even if you could put 30 or 40 percent down, you would still have a two-year borrowing period. Short-sellers who are getting back into the housing market should keep detailed records of their income sources and should avoid loans which require very little money or no money down.

A Fix for the Mortgage Market?

The Senate Banking Committee is set to vote on a bipartisan bill, which aims to rejuvenate the housing market while guarding against the excesses of the past. This bill has been named the Housing Finance Reform and Taxpayer Protection Act of 2014, with the goal to ensure broad and steady access to sustainable and affordable mortgages by providing an explicit government guarantee to attract investment in 30-year fixed-rate mortgages and other loans. In addition, this bill includes a new financing provision, a fee on government-guaranteed securities, to generate money for affordable housing. Essentially, this bill would end Fannie Mae and Freddie Mac—federally backed mortgage companies with implicit government guarantees and confusing ownership status—but would continue vital federal support for mortgages though the Federal Mortgage Insurance Corporation. Overall, this bill hopes to ensure that mortgage loans are broadly available, while giving taxpayers a housing market that serves the long-term interests of families and the broader economy. Yet, this bill is overly complex and is subject to being misinterpreted and falling short, especially on the subject of fostering affordable mortgages.

Fallout from Refinancing

Homeowners who refinanced when fixed mortgage rates dropped below 4 percent are less inclined to put their homes on the market as interest rates increase. As a result, the limited property supply already impending sales in many markets may not ease anytime soon. A recent survey by Redfin showed that even recipients of low-refinance rates who decided that they want to move may want to make money by renting out their own homes while waiting for prices to rise, rather than selling right away. Most borrowers cannot afford to buy another home without using equity from their first down payment. Yet, those who take advantage of low refinance rates tend to be “premium consumers” with very good credit and stable income. Before these people decide to rent out their homes, they may want to consider a few other factors. For example, managing a rental property is a very large effort. In addition, there is a greater financial risk for those who own two homes in the same market if home prices take a dive. Lastly, the reasons for renting a home always change.

Contact Our Office

We provide a free initial consultation to anyone with concerns about foreclosure or who is involved in foreclosure proceedings. To schedule an appointment, call our foreclosure hotline at 855-289-1660 or contact us online. Evening and weekend meetings can be arranged upon request. We will travel to your home if necessary to meet with you.

Filed Under: Foreclosure, Foreclosure Defense, Mortgage Debt Forgiveness, Mortgage Lending, Mortgage Modification, Short Sales Tagged With: , , , , , , , , , ,

THE ELUSIVE HOUSING RECOVERY

June 26, 2014 By

With all the happy talk recently about the nation’s housing recovery, much of eastern Pennsylvania and central and southern New Jersey real estate markets still have a significant amount of homes that are underwater (when the mortgage balance is greater than the value of the home). Many of these properties were purchased or refinanced by homeowners during the housing bubble which collapsed in 2007.

Recent reports continue to suggest that the best solution for all parties (banks, homeowners, investors, states and municipalities) is for the approach of “principal reduction.” By this method, if lenders rewrote the loans to reflect fair market values, then owners would have lower monthly payments which would put more money and tax dollars into local economies. Cities and towns could have more stable property tax revenues and lenders may ultimately benefit by having fewer delinquent loans.

The solution is not so simple because many banks no longer own the loans they made. Many of the underwater home loans have been pooled into private securities, and sold off to investors. The companies who service these securities and loans generally will not reduce the principal because, since they do not own the loan, they do not have the authority to reduce the principal balance. With all the talk over the last 12 to 18 months about settlement agreements between the Justice Department and the big banks, none of these initiatives require the banks or their investors to reset loans as a condition of getting Federal funds. Even the government’s Home Affordable Modification Program (HAMP) has helped barely 25% of the 4 million homeowners it was supposed to reach. Worse still, the Federal Government itself is an obstacle to a lot of the reform measures because the Federal Housing Finance Agency, which oversees Fannie Mae and Freddie Mac, will not allow these two mortgage giants to reduce the principal on any of the underwater mortgages they own or guarantee. The new FHFA director, former-Representative Melvin Watt, could change that policy and he could do it without Congressional approval. It remains to be seen if the Administration will embark on principal reduction.

Contact Our Office

We provide a free initial consultation to anyone with concerns about foreclosure or who is involved in foreclosure proceedings. To schedule an appointment, call our foreclosure hotline at 855-289-1660 or contact us online. Evening and weekend meetings can be arranged upon request. We will travel to your home if necessary to meet with you.

Filed Under: Foreclosure, Foreclosure Defense, Mortgage Lending, Mortgage Modification, Underwater Home Loans Tagged With: , , , , , , , ,

FORECLOSURE ERRORS CONFIRMED

June 16, 2014 By

On Wednesday, April 30, 2014, a Federal regulator confirmed that the biggest banks committed widespread errors when dealing with homeowners who faced foreclosure at the height of the mortgage crisis. The report released by the Office of the Comptroller of the Currency was really a post-mortem of the earlier-released Independent Foreclosure Review, a very expensive review though limited in scope, of how the banks mistreated homeowners in the foreclosure process.

Almost 10% of the errors discovered in the review involve situations when banks improperly denied loan modifications that would have prevented a foreclosure filing in the first place. Many of these errors involved administrative flaws and improper fees being charged to the homeowners during the foreclosure process. In 2013, however, 15 banks settled with banking regulators making payments that totaled $3.9 billion, paid out to more than 4 million homeowners (averaging about $1,100 per household). These settlements ended the Independent Reviews, and the banks agreed to pay homeowners regardless of whether they had been harmed. The banks and regulators agreed to halt the review process because it was so expensive and lengthy, even though only a small fraction of the mortgage files were reviewed.

The report released on April 30 showed that the banks had made even less progress in the reviews than was previously disclosed. For example, Bank of America reviewed only 6% of its files, yet revealed a financial error rate of nearly 9%. Wells Fargo examined less than 10% of its records, and found an error rate of nearly 11.5%. Parties on both sides of the crisis were not pleased, and one reason could be that the decision to cut short the review left regulators with limited information about actual harm to borrowers, even though there was a multi-billion dollar settlement.

Contact Shaffer & Gaier – Protecting Homeowner Rights

The law firm of Shaffer & Gaier protects the rights of those who are facing foreclosure or seeking mortgage modifications in New Jersey and Pennsylvania. To set up a free initial consultation, contact our office online or call our foreclosure hotline at 855-289-1660. Or call our office location in Philadelphia at 215-751-0100, or in New Jersey at 856-429-0970.

Filed Under: Foreclosure, Foreclosure Abuses, Foreclosure Defense, Mortgage Lending, Mortgage Modification Tagged With: , , , , , , ,
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