Fred Chamberlin - Eugene/Springfield's #1 Experienced FHA Mortgage Consultant

There is a huge amount of talk about foreclosure right now, not just with the media but with almost any conversation that is about Real Estate. The issue of what foreclosures are doing to the market place as far as bringing values down, the problem that this company is having and laying off employees and what will happen to their housing budget, the cousin, uncle or sister that is about to lose their home, all of these are current topics of conversation. One of the nastiest parts of this process it the increase in the number of scammers that come out of the woodwork in times like this. There are good and valuable services being provided by "for profit" companies, but there are also scammers out there. Please review this, my latest post on EugeneLoanGuy, with information from the Federal Reserve Bank on how to prevent foreclosure scams.

Foreclosure Rescue Program Could Be A Scam

Author: fchamberlin // Category: Adjustable Rate Mortgage, Bank Owned properties, Eugene Homes for Sale, Eugene Oregon, Foreclosures, Local Information, lane county, refinance

Tomorrow is the last day of National Consumer Protection Week and the Federal Reserve Board has compiled some items to protect consumers from becoming victims of foreclosure avoidance scams. Reports of mortgage foreclosure scams are on the rise. Knowing what to watch for and where to turn for help is vital for families who are struggling to remain in their homes. It's important for consumers to know that housing counselors and other resources are available at no or low cost to assist homeowners who have fallen behind on their mortgage payments. One note before we get into the following information, the best and safest way to avoid foreclosure is to make your payments on time.

Solicitors of foreclosure schemes reach out to potential victims by a variety of means using the Internet, the telephone, and direct mailings. Some solicitors go door-to-door or approach homeowners at events related to home preservation. The information the Federal Reserve is providing, which is part of its "5 Tips" series, is intended to give consumers the basic information they need to recognize and avoid foreclosure avoidance scams. Consumers are urged to check the credentials of counselors and to avoid working with someone who collects a fee before providing any services or accepts payment only by cashier's check or wire transfer. Consumers should not pay for a service without knowing exactly what they are buying.

"Saving a home from foreclosure requires fast and informed action but the solution doesn't have to be costly," said Federal Reserve Governor Elizabeth A Duke. "It shouldn't hurt to get help." Avoiding foreclosure cannot be guaranteed-regardless of the circumstances. Working with a legitimate counselor can increase the chances of keeping a home, but consumers should be wary of people who tell them it's a sure thing. Details of the transaction, along with any promises, should be provided up front and in writing.

The tips to follow from the Federal Reserve Board will help consumers select a reputable counselor and avoid fraudulent foreclosure scams.

1. Work only with a nonprofit, HUD-approved counselor.

If you are looking for help to prevent foreclosure, be sure the counseling agency is on the Department of Housing and Urban Development's list of approved agencies. Visit HUD's website for an easily searchable list of HUD-approved housing counseling agencies, or call 877-HUD-1515 (877-483-1515) for more information. If you are approached by foreclosure counselors--by mail, phone, or in person--make sure the counseling agency is HUD-approved before you do business with them.

2. Don't pay an arm and a leg.

You should not have to pay hundreds--or thousands--of dollars. Most HUD-approved housing counselors provide no-cost counseling services and many more provide low-cost counseling. Do not agree to work with a counselor who collects a fee before providing you with any services or who accepts payment only by cashier's check or wire transfer. In general, do not pay money to anyone unless you know exactly what services you will receive.

3. Be wary of "guarantees."

A reputable counselor will not guarantee to stop the foreclosure process, no matter what your circumstances. Working with a legitimate counselor can certainly increase your chances of keeping your home--but be wary of people who promise a sure thing. Again, get the details of your transaction, along with any promises, in writing first.

4. Know what you are signing--and be sure you sign it.

Don't let a counselor pressure you to sign paperwork you haven't had a chance to read through carefully or that you don't understand. Don't sign any blank forms or let "the counselor" fill out forms for you. Be sure to talk with an attorney before signing anything that transfers the title of your home to another party.

5. If it sounds too good to be true, it probably is.

If you feel you may be the target or victim of foreclosure fraud, trust your instincts and seek help. For tips on spotting scam artists, visit the Federal Trade Commission's webpage on foreclosure rescue scams. Report suspicious schemes to your state and local consumer protection agencies; which you can find on the Federal Citizen Information Center's Consumer Action Website.

Protection of your rights in a foreclosure procedure is very important. Make sure you make use of the programs and organizations that are available to help you. The Oregon Department of Insurance and Finance also has some very good information on their website about things you can do to avoid foreclosure. Here is a link to their PDF pamphlet about how to avoid foreclosure.

Do you want to buy a home with just a $100 down payment? HUD allows some of the homes that they have foreclosed to be purchase with an FHA loan with only a $100 down payment. Most HUD owned homes in Oregon, Washington, Idaho and Alaska are eligible for this program. This is a great way for a first time home buyer to get into a home with very little down and take advantage of the $8,000 first time home buyer tax credit too. Here is a list of the current Deschutes County foreclosures, according to the HUD website:

To make an offer on a HUD home, you must use a Realtor® that is approved to work with HUD. If you check the list for Deschutes County, one that comes to the forefront is Thesa Chambers, S & S Pense Investments. You can reach Thesa at 541-536-0117 or through her e-mail, thesa@centraloregonbuzz.com. These loans are for owner occupied properties only to qualify for the $100 down payment program. You also must use an FHA approved lender, like me. This program will work for manufactured homes, but there are some special considerations.

There are some good deals to be made, give me a call and let's get you qualified for the purchase. Some of the properties are in need of repair, and there are two ways to do that, one is an FHA 203b with up to $5,000 in an escrow account for repairs (there are requirements for this to work) or an FHA 203k Streamline where you can do repairs after closing up to $35,000, but the 203k does not work with $100 down. (Since several of the foreclosures are manufactured homes, please note the following: The 203k Streamline will not work with a manufactured home unless the foundation and tie downs are already installed. The 203b will work, but has some additional requirements.) HUD wants to help first time homebuyers get into their homes. They are doing their part. Let's get you started today. You can check out their page for new listings here. This is the main page so you first need to select state. Overall, I don't think we have a lot of foreclosures in Oregon, do you?

Hud has raised the FHA loan limit for Lane County. There was no announcement or release that I am aware of. The new loan limit is the same as the temporary loan limit in place prior to Jan. 1 or $343,750. This is an increase of $72,700 over the minimum FHA loan limit that was in place for Lane County. This is a tremendous change in limit at a time that should be beneficial for moving some of the higher priced foreclosures off of the listing rolls. Combine the higher loan limit with an FHA 203k Streamline and the Energy Efficient Mortgage and you have an excellent vehicle for purchasing a foreclosure. Check out the entire post here.