|Home | About | Contact | Resources | Blog|
Help for Homeowners
The Consumer Financial Protection Bureau, a new federal agency established to regulate and protect consumer lending and financing, has adopted a new rule that prohibits providers of mortgage foreclosure rescue and loan modification services from collecting fees until homeowners have a written offer from their mortgage lender or servicer and have accepted the offer. The new rule is called “Regulation O.” Regulation O requires anyone offering mortgage foreclosure relief and loan modification services to do the following:
Attorneys are exempt from the advance fee ban if they comply with state court rules governing client trust accounts and the use of advance retainer payments. However, beware of any mortgage relief or modification service that advertises the service but then requires you to retain an attorney “associated” with the agency--they could be using the attorney to get around the prohibition against advance fees, i.e., the homeowner has to pay the attorney, who then pays the mortgage relief provider even though the service provider has not obtained a written modification offer as required by Regulation O.
Example to see if an organization is complying with Regulation O (Click to view example).
Does the MCMS solicitation (link above) comply with Regulation O? Here are some things for a housing counselor or homeowner to note:
Information About Short Sales
As a homeowner considering the sale of your home in a real estate market that is likely to offer you less than what you owe on the home, realtors or mortgage lenders often suggest a “short sale” as a way of getting the home sold. A short sale is basically the sale of the home for less than what is owed against it; the lender agrees to release its mortgage lien on the home in order to receive payment from the sale.
A short sale is not as easy as it sounds. You need a realtor who is experienced in negotiating with one or more mortgage lenders or servicers, and who is committed to making sure your interests are adequately represented in the negotiations with a buyer and mortgage lender. An experienced and trustworthy realtor will make sure you understand the following before putting your home on the short sale market:
How to Find a Realtor Experienced in Short Sales
In today’s real estate market, it is all too common to encounter a realtor who claims to be an expert in short sales but in reality does not understand the details of the transaction or how to bring a short sale to conclusion that is satisfactory to the homeowner. Here are some questions to ask your realtor to make sure he or she is the right person to help you negotiate the minefield of a short sale:
If your realtor does not know the answers to these questions, or has to consult with another realtor, then you should get another realtor to assist you in the sale.
Minnesota Mortgage Foreclosure Prevention Association | 424 W Superior St | Duluth, MN 55802