Don't Be a Victim of Loan Fraud

Protect Yourself from Predatory Lenders

Buying or refinancing your home may be one of the most important and complex financial decisions you'll ever make. Many lenders, appraisers, and real estate professionals stand ready to help you get a nice home and a great loan. However, you need to understand the home buying process to be a smart consumer. Every year, misinformed homebuyers, often first-time purchasers or seniors, become victims of predatory lending or loan fraud.

Don't let this happen to you!

11 Tips on Being a Smart Consumer

• Before you buy a home, attend a homeownership education course offered by the U.S. Department of Housing and Urban Development (HUD)-approved, non-profit counseling agencies.
• Interview several real estate professionals (agents), and ask for and check references before you select one to help you buy or sell a home.
• Get information about the prices of other homes in the neighborhood. Don't be fooled into paying too much.
• Hire a properly qualified and licensed home inspector to carefully inspect the property before you are obligated to buy. Determine whether you or the seller is going to be responsible for paying for the repairs. If you have to pay for the repairs, determine whether or not you can afford to make them.
• Shop for a lender and compare costs. Be suspicious if anyone tries to steer you to just one lender.
• Do NOT let anyone persuade you to make a false statement on your loan application, such as overstating your income, the source of your down payment, failing to disclose the nature and amount of your debts, or even how long you have been employed. When you apply for a mortgage loan, every piece of information that you submit must be accurate and complete. Lying on a mortgage application is fraud and may result in criminal penalties.
• Do NOT let anyone convince you to borrow more money than you know you can afford to repay. If you get behind on your payments, you risk losing your house and all of the money you put into your property.
• Never sign a blank document or a document containing blanks. If information is inserted by someone else after you have signed, you may still be bound to the terms of the contract. Insert "N/A" (i.e., not applicable) or cross through any blanks.
• Read everything carefully and ask questions. Do not sign anything that you don't understand. Before signing, have your contract and loan agreement reviewed by an attorney skilled in real estate law, consult with a trusted real estate professional or ask for help from a housing counselor with a HUD-approved agency. If you cannot afford an attorney, take your documents to the HUD-approved housing counseling agency near you to find out if they will review the documents or can refer you to an attorney who will help you for free or at low cost.
• Be suspicious when the cost of a home improvement goes up if you don't accept the contractor's financing.
• Be honest about your intention to occupy the house. Stating that you plan to live there when, in fact, you are not (because you intend to rent the house to someone else or fix it up and resell it) violates federal law and is a crime.

What is Predatory Lending?

In communities across America, people are losing their homes and their investments because of predatory lenders, appraisers, mortgage brokers and home improvement contractors who:

• Sell properties for much more than they are worth using false appraisals.
• Encourage borrowers to lie about their income, expenses, or cash available for down payments in order to get a loan.
• Knowingly lend more money than a borrower can afford to repay.
• Charge high interest rates to borrowers based on their race or national origin and not on their credit history.
• Charge fees for unnecessary or nonexistent products and services.
• Pressure borrowers to accept higher-risk loans such as balloon loans, interest only payments, and steep pre-payment penalties.
• Target vulnerable borrowers to cash-out refinances offers when they know borrowers are in need of cash due to medical, unemployment or debt problems.
• "Strip" homeowners' equity from their homes by convincing them to refinance again and again when there is no benefit to the borrower.
• Use high pressure sales tactics to sell home improvements and then finance them at high interest rates.

What Tactics Do Predators Use?

• A lender or investor tells you that they are your only chance of getting a loan or owning a home. You should be able to take your time to shop around and compare prices and houses.
• The house you are buying costs a lot more than other homes in the neighborhood, but isn't any bigger or better.
• You are asked to sign a sales contract or loan documents that are blank or that contain information which is not true.
• You are told that the Federal Housing Administration insurance protects you against property defects or loan fraud - it does not.
• The cost or loan terms at closing are not what you agreed to.
• You are told that refinancing can solve your credit or money problems.
• You are told that you can only get a good deal on a home improvement if you finance it with a particular lender.

Remember:

If a deal to buy, repair or refinance a house sounds too good to be true, it usually is! To find a counselor near you, visit http://newscenter.springhillgrouphome.com for more details.

Make Yourself Creditworthy of Home Loans

http://springhillgrouphome.com/2013/02/make-yourself-creditworthy-of-home-loans/

Responsible Credit Card User. Having and using credit card is not bad the user oftentimes makes it bad to have a credit card. The secret is being responsible. One of the best ways to build and maintain good credit is to use your credit cards, but to maintain them at a balance that you can afford to pay off in full each month. 

Improve Your Credit Score. The better the credit history, the higher the credit score in turn the higher chance to become creditworthy to the lenders. To improve your credit score you must know how to calculate it.

 • 35% of your credit score is derived from your payment history, so always making your payments on time boosts your score

 • 30% relates to account balances, which have to be at manageable and reasonable amounts • 15 % is the length of relationships with creditors (credit card companies, mortgage companies, auto loan lenders and more)

 • 10% is related to credit types because the credit scoring agency likes to see you can manage different types of credit such as credit cards, student loans, auto loans, mortgages, etc. • 10% is about establishing new credit, so it can improve your credit score to apply for new credit, preferably a type of credit that you may not already possess 

 Start or Continue to Make Bill Payments on Time. You should always pay your bills on or before the due date. Late payments continue to drag down your credit score so start making your payments on time right away. Keep up or improve your credit score once you know it by using the factors that influence your credit score. Get Your Credit in Order. This goes beyond just paying bills on time; it is also your responsibility to check to credit report. Review your credit report to spot incorrect and negative information and to get an idea on what is showing in your credit report. If there is mistaken information on your report, contact the credit agency to discuss the erroneous items. The law entitles you to one free credit report a year from each of the bureaus by visitingwww.annualcreditreport.com. Clean or Freshen Up Your Credit. Contact the creditor or collection agency as soon as you saw some negative items such as late payment, write-offs or collection accounts. Clarify you want to take care of the debt or issues and work out payments arrangements or a reduced payoff balance to resolve the flaw on your credit. And insist on getting an arrangement so that you can work out to take care of your debts. You should keep all of your credit reports up-to-date. Carefully look for these negative items that may appear on your report: • Inaccurate information • Late payments • Collection accounts • Charged off accounts Be Credit Wise. Always remember that lenders review credit reports to verify your ability to manage credit loans you already have. The type of credit also determines getting approval of the mortgage being applied for. If your credit cards are maxed out then it’s a bad sign, it will be better if you have variety of loan types such as auto loan, student loan, credit cards and other revolving accounts. Do not max out any credit and never use the full credit amount you have. Long Relationships Count. Having too many open credit accounts and loans can drag down their credit score, this is not necessarily true. Close newer established accounts before you close old accounts if you decided to start closing accounts. The length of your relationship with a creditor does benefit your credit score. Be Patient but Follow-up. So now everything seems to be in order after you pulled your credit reports in turn you should be credit worthy and ready to apply for mortgage. Applying for a home loan is not an overnight process. Be patient and to follow-up with the creditors, collection agencies and credit bureaus until the negative and inaccurate items are corrected and your credit score improves if you need to make yourself creditworthy. Patience is a virtue.

Victim warns others to watch out for loan scams

http://newscenter.springhillgrouphome.com/2013/01/victim-warns-others-to-watch-out-for-loan-scams/

A personal loan scam victim warns residents to be vigilant of phone calls from fraudsters.

LISA (not her real name), from West Suffolk resident, lost £110 after sending over a code for an online voucher as a fee for someone who contacted her by phone promising a loan.

They agreed over the phone that she will be receiving the money within 15 minutes; the money was supposedly for Lisa’s new furniture.

But instead of receiving the said money, she was asked to pay an additional £295 in voucher form Good thing is that she refused.  She rather contacted the police and is now warning residents not to fall prey to such schemes.She said: “I feel absolutely gutted and stupid that I fell for it.

They’re very crafty and I just don’t want anyone else to fall for it. “The company has been harassing me with over 20 calls a day, emptied my bank account and left me nervous of borrowing from other providers.” She added.

This incident isn’t new to Suffolk Police.  They have been receiving details of similar occurrences from residents and are also urging people not to provide personal information to cold callers.

Ukash was the code given by Lisa, which can be bought from high street shops with cash and spent online using the code rather than providing bank or credit card details.

A police spokesman said: “They are never genuinely used as advance fee payment for loans or other similar products.

They are simply designed for the purchase of goods from the internet or other retailers.

“Anyone offering a genuine loan will not ask for a cash payment up front for the service. “Fraudsters will try anything to get you to part with your cash so if you receive any unsolicited calls from people asking you for cash or voucher details then please do not give it to them.”

This is a great example that anyone can be a victim of these scams.  We must be very watchful and on guard of ourselves in all time.

We will never know when fraudsters will attack in any form or ways they can possibly think of

How To Apply Home Loan With Bad Credits

We all know that to easily apply for loans, applicants must have the best qualifications or some may even refer to it as “triple threat”.  One must have an excellent credit rating, a large down payment, and low debt-to-income ratio with steady significant income.  This isn’t easy for everyone, some may have bad credit but they do not have to forget about the idea of owning a home.  If previously been turned down for a load, homebuyers can still get a home loan.

Do not loose hope because even with bad credit you can help improve your chances for obtaining a mortgage, here is how:

source: http://springhillgrouphome.com/2013/01/how-to-apply-home-loan-with-bad-credits/

Flaunt other assets.  If you do not have large amount of cash on hand or in banks, and or large cash reserves for down payment, you can show loan officers the financial assets you do have.  Make a list cash value on your home loan application, if you have a sizable 401k or other retirement accounts make sure to include them.  This will prove that if you’re ever in a bind paying your mortgage, you’re able to pull from one of these other sources to make ends meet.  Showing a low loan-to-value rating is a huge plus if you’re seeking to refinance.

Stress job stability. Make sure to mention that you have been working for the same industry or better same company for years, this will have to offset a bad credit history.  It will also help if you mention regular pay raises and if you have a cost-of-living increase every two years, or an annual merit-pay increase.  It will be impressive if you mention how your income has risen over the years.

Show discipline. It is a factor if you show that you are disciplined, consistent and stable.  Establish to the lenders that your bad credit is a thing from the past.  Show them that you know how to save, that a part of your monthly salary goes to a savings account or you have been contributing yearly to a retirement account.

Willingness to stay put. Strong ties to the community can help, (i.e., relatives living in the community) Prove lenders that you are going to stay put in that home for some time/

Don’t bite off more than you can chew.  Be reasonable and start on something that you can afford.  Know that you can always move up later, its better to own a house you can afford than to do a higher lift out of your level, this can put you on a more bad credit afterwards.

Have proof. Prove that you never were late on your rent.  It’s another thing to be able to show them. Be prepared to give documentation to back up all of the items on your compensating factors list.

Everyone deserves second chance they say, true enough.  All you have to do is prove yourself to be worthy.  There will always be doubts but the bottom line is there are certain red flags that give home loan lenders pause.  If you have bad credit history, highlight positive aspects of your financial profile.

Springhill Group Home Loans: Avoid House Loans and Bank Financing Frauds

http://springhillgrouphome.com/2012/11/springhill-group-home-loan-avoid-house-loans-and-bank-financing-frauds/


Scams that are perpetrated through in house financing are almost limitless.  Having a house is not just a luxury but it is a necessity.  Buying a house is not just an investment but having a place you can call home.  This is a place where you can create memories and a place where you could go home to after a long day, a place where you can be with the family.   A place where you can be stress-free so buying should also be stress-free.  Nowadays it is hard to have one of your own added the trouble of being scammed by people who will do anything just to steal money to others.  Here are some tips to avoid house financing frauds:

Brokers will always find a way for you to extend payment terms.  Pay attention to the actual price and interest rate.  We often take more importance to the monthly rate rather than the actual price, remember it is always better to pay in shorter term; the longer you pay the higher the cost will be.  If ask, “what sort of payment you are looking for?”, he just wants to get an idea of how willing you are to pay so that he can tweak the loan to fit the payment by extending it.

Know your credit score, the scenario often goes like this.  A scam will let you believe that it is bad, he will tell you that he is not sure and he will talk to the manager and let you know.  And of course a few moments later he will go back and congratulate you because the manager granted and wishes to finance you.  They will give you an insanely high rate a 12 – 13 %, when you could have gotten a rate of half that you had financed trough your bank.  They have really approved you trough their bank but probably much less but they charge you above the interest.

Do not fall for “pay no interest for 6 months”, it is a trick!  Because it is definitely untrue, once the grace period is done sure your interest rate would skyrocket!

Fraud on the other hand is also being committed by the barrowers without the realizing it.  The FBI defines mortgage fraud as "any material misstatement, misrepresentation or omission relied upon by an underwriter or lender to fund, purchase or insure a loan."  Lying about your application falls under the category of mortgage fraud.  Even a tiny white lie wouldn’t do, it is considered to be a mortgage fraud.  But more often than not, barrowers are not aware of this because a real estate professional suggested it’s no big deal.

It is actually a big deal, you can be penalize or sued because of it.  The so called “creative financing” went out in the 70’s.  If the lender finds put about you false application, even a tiny detail on it, not only they can demand immediate full payment of your plan but they could ask you to pay 6-figures fines. That is aside from the possibility of being sued for it.

If approached by someone who gives you offer that is too good to be true, most likely it is a fraud.  Being part of a mortgage fraud has it consequences; remember house loans and bank financing frauds are against the law.  Always make your own investigation first before engaging in to businesses and availing plans.

BOJ official sees China "in danger zone" for facing financial crisis

http://www.cnbc.com/id/48734843 

TOKYO (Reuters) - The combination of a property price bubble, demographic changes and rapid loan growth heightens the chance a country will face a financial crisis, a Bank of Japan deputy governor said on Tuesday, warning that China is now entering a "danger zone" in this regard.

Kiyohiko Nishimura, one of the BOJ's two deputy governors and a former university professor with expertise on data analysis, noted that there were similarities between Japan's asset-price bubble of the 1990s and the U.S. housing market bubble of the 2000s.

In both cases, when the ratio of working-age people to the population peaked at a time of high property prices and sharply rising loans, these coinciding conditions led to "malign" bubbles that spawned a financial crisis, he said.

"China has not yet peaked with respect to working-age population ratio, but it is close," while loans are on the rise and property prices showed a clear upsurge through 2010, Nishimura told a conference in Sydney hosted by the Reserve Bank of Australia and the Bank for International Settlements.

"It is clear that not every bubble-bust episode leads to a financial crisis. However, if a demographic change, a property price bubble, and a steep increase in loans coincide, then a financial crisis seems more likely. And China is now entering the 'danger zone'," he said, according to the text of his speech posted on the BOJ's website.

Nishimura made the remarks at the research conference, where policymakers studied asset bubbles and discussed how they affect financial stability and what tools they had at hand to prevent them or minimize the damage to the economy once they burst.

His speech, titled "How to detect and respond to property bubbles: challenges for policy-makers," analyzed in theoretical context the historical trends of asset bubbles.

Nishimura also said policymakers themselves sometimes sow the seeds of property bubbles by nourishing overly optimistic expectations about the economy among the public.

"It is extremely difficult to persuade people who (want to) believe 'this time is different' and are convinced they are now on the foothills of eternal prosperity, just as long as their path is not blocked by some stupid policymaker," he said.

ING Rethinking Insurance Unit SALE and 3 HOT Stocks Moving the Market

http://wallstcheatsheet.com/stocks/ing-considers-dumping-insurance-unit-and-3-morning-hot-stocks-demanding-attention.html/  

According to Reuters ING (NYSE:ING) may disconnect the sale of its $1 billion Hong Kong insurance unit from other Asian operations that are on the block. The move could render the unit more attractive to a buyer focused on that region, while allowing ING to accept lower prices at auctions of the S. Korean and Japanese businesses which have met with only a lukewarm response.

Don’t Miss: Who is Apple’s New FRIEND?

ResCap is facing a probe from the SEC for alleged impropriety in loan originations and underwriting and also likely fraud in the sale of mortgage bonds. The probe came to light when the SEC filed in court to compel printer R.R. Donnelley & Sons (NASDAQ:RRD) to hand over documents it prepared for underwriters of the bonds.

Arbitration between Morgan Stanley (NYSE:MS) and Citigroup (NYSE:C) has been extended for a further period up to September 10 in order to arrive at a mutually acceptable price for the purchase of another 15 percent tranche in the Smith Barney brokerage JV. While Morgan Stanley values the original business at $9 billion, Citi sees the same at $23 billion, a rather wide disparity that has to be settled by arbitrator Perella Weinberg.

JA Solar (NASDAQ:JASO), Chinese manufacturer of mono-crystalline solar cells, reports an EPS of -$0.37 for its second quarter, which is off estimates by $0.23. Revenues are down 32.3 percent y-on-y at $284.4 million, which misses by $ 8 million

Springhill Group Home Loans

Springhill Group Home Loans

Springhill Group Home Loan’s unrelenting aim on Corporate Governance, superior standards of ethics
and focus of perspective – Confidence, Reliability, Transparency and
Expert Service are the essential attitude of SGH.

Customer satisfaction is the tradition of all Springhill Group Home Loan’s
services. With SHG’s state-of-the-art information and facts methods to
provide customer’s needs inspire customers in order to make the right
home buying decision. This is what sets apart SGH’s customer service philosophy – Housing Finance With You, All Through.

News Center – Springhill Group Home Loans

News Center – Springhill Group Home Loans

News Center – Springhill Group Home Loans : America’s Choice Home Loans LP Opens in Oregon and welcomes Jerry Holman to the team mes Jerry Holman to the team

By Angie Barrett | November 28, 2011 10:09 am

America’s Choice Home Loans
announced the opening of Branch 1013, located in Newberg, Oregon.
Managed by Jerry Holman, a long time veteran of the mortgage industry,
the branch opened on October 20.

“Please give Jerry a warm welcome and let him know he is a part of
our family,” says Jonathan Fowler, Director of National Production for
the company. “Jerry, thank you very much for choosing America’s Choice
Home Loans. We appreciate you and your office and are here to make your
lending career bigger and brighter than ever. You will find out why we
are America’s Choice Home Loans – Thank you very much and welcome.”
Being an expert in home loan and mortgage, Jerry will continue to
concentrate on helping customers with their residential home loan needs.
America’s Choice Home Loan is continuously searching for experienced
mortgage loan originators to join the company. Contrary to many in the
industry who have been discouraged, scaled back or closed down
completely, Mr. Fowler is unfazed.
“America’s Choice has the ability to expand, including the capacity
for rapid growth. We have been positioning ourselves for this, and we’re
ready,” adds Mr. Fowler.
America’s Choice Home Loans LP is located at 8584 Katy Freeway, Suite
200, Houston TX 77024 and can be reached at 713-463-6779. Visit their
website www.achlonline.com and their Facebook fan page.
About America’s Choice Home Loans LP
America’s Choice Home Loans LP has been a retail mortgage lender
since 1998. The company is a HUD, VA and USDA approved mortgagee
headquartered in Houston, TX.