The Bureau of Consumer Financial Protection released a snapshot of mortgage complaints on their website filed by consumers. This report allows everyone to see the trends in mortgage complaints being filed and the progress.
These complaints received allows the Bureau of Consumer Financial Protection to regulate consumer financial products or services under existing federal consumer financial laws, enforce those laws judiciously, and educate and empower people to make better-informed financial decisions.
Bureau of Consumer Financial Protection
This report reveals many interesting data points about complaints submitted by consumers:
Between November 1, 2016, and October 31, 2018, approximately 11 percent of complaints were about mortgages.
Most mortgage complaints were about “trouble during payment process” (42 percent) and “struggling to pay the mortgage” (36 percent).
Compared to the monthly average during the past 24 months, people submitted 18 percent fewer mortgage complaints in October 2018.
There were 15 percent fewer mortgage complaints from August 2018 to October 2018 compared to August 2017 to October 2017.
Cash out refinance options offer the perfect solution to stop foreclosure by using the equity existing in the property. Often times foreclosure rescue scams trick homeowners by stealingequity in the property, in exchange for offering to stop foreclosure. Sadly, most homeowners are unaware that they can work out a better solution to use their cash out refinance options, that wouldn’t involve giving a large portion of equity away in the home to a third party offering to help.
Plus lots of these foreclosure rescue scams end up not stopping foreclosure, the property and equity are gone forever. The homeowner is left with no property and no equity once the property is foreclosed on.
This is why homeowners must educate themselves so that they don’t become victims to foreclosure rescue scams, as well as fraudulent lending scams.
Typically, real estate investors are always looking for houses to buy. However, not all real estate investors are looking to do the right thing or treat the homeowner with fairness. Many properties facing foreclosures are often being sold as for sale by owner to move them faster. Often promoted on Zillow for mass exposure. It’s even harder to find houses for rent in a foreclosure situation because of late mortgage payments being reported on credit reports.
If you facing a foreclosure situation, the very first thing you should do is to explore your cash out refinance options to prevent foreclosure.
Ask a lender to cash out refinance, some lenders look at the deal (amount of equity) in the property when considering a cash-out refinance option.
If your home is worth $375,000 and you owe only $75,000 on the existing mortgage loan balance about to be foreclosed on. Then you have $300,000 worth of equity in the property. In the cash out refinance option you could pay off the existing mortgage loan balance of $75,000 including foreclosure fees, etc. Which all fees are itemized in the Pay Off Statement with the due date.
Whatever is left from the balance of paying off the existing mortgage loan is money that can be cashedout and the new loan would be the perfect solution to save the property from foreclosure.
Sell the property to a trusted real estate investor, if you find that there is simply not enough time to complete cash out refinance before foreclosure, selling the property to a real estate investor is a great option.
(This is not legal advice, for informational purposes only). If your home is in foreclosure, the worst thing that you can do is “do nothing or wait” until the last minute to respond. In a foreclosure situation, you must act fast and the sooner you act the better chances you will have to resolve your foreclosure situation. However, most homeowners facing foreclosure, still don’t challenge their mortgage lender.
The reason most homeowners don’t challenge foreclosure is that they lack knowledge and don’t understand that they have also “do have rights in a foreclosure matter.” Lenders and their lawyers are well aware of the rights homeowners have in foreclosure situations. Lawyers who represent mortgage lenders don’t tell homeowners about their rights because they are hired by the bank (representing the lender and not the homeowner). Homeowners need their own legal representation for foreclosure defense to have their rights represented.
Using QWR As Foreclosure Defense
State court judges often rule for mortgage lenders (more cases are won by lenders against homeowners in state court across the nation), where homeowners have little defenses against their mortgage loan default in foreclosure situations. In general, state courts are focused on the homeowner failing to pay the mortgage on time or falling behind and not paying the mortgage loan.
There are a wide variety of consumer protection laws that homeowners can use as foreclosure defenses. While in general in the United States both federal and state levels regulate consumer affairs. Federal courts often handle issues where questions are asked on the Fair Debt Collection Practices Act (FDCPA), Truth in Lending Act (TILA), and the Real Estate Settlement Procedures Act (RESPA).
For this reason, QWR (Qualified Written Request) can be a strong foreclosure defense strategy.
A QWR is covered under Section 6 of RESPA which provides borrowers with consumer protections relating to the servicing of their loans.
Once the homeowner sends a “QWR” the servicer has only exactly 20 business days to provide a written acknowledgment of the request. Often times the homeowner sends the “QWR” without knowing what to request. Free examples of a QWR found online don’t provide valuable information needed to build a strong foreclosure defense strategy.
When the QWR is presented properly the homeowner can learn about very important information concerning their mortgage loan contract. This information can be useful in working out a mortgage loan modification or even when a mortgage loan modification was denied before.
Learning details for the best information to request in a QWR put the homeowner at an advantage. The mortgage servicer has a timeline to resolve issues with QWR demands. Section 6 of RESPA requires the mortgage servicer to reach a resolution within 60 business days.
Most homeowners are unaware that because of improper mortgage securitization conducted by mortgage lenders, there are errors with their mortgage loan servicing documents. If these concerns are raised properly it can create a strong foreclosure defense strategy for negotiations.
Even when homeowners are not behind on their mortgage payments, it is a good idea to send a QWR to learn important information about their mortgage loan contract. During this time it is also a good idea to always continue to make the mortgage and escrow payments until the request resolution is completed.
For a QWR to provide a strong foreclosure defense, the homeowner should:
Ask questions about loan servicing and ownership.
Inform the mortgage servicer of specific improper mortgage securitization violations.
Notify the servicer that the QWR is a demand under Section 6 of RESPA requirements and deadlines.
Explain the errors and issues of concerns that are foreclosure defenses.