Attorneys At Law

Attorneys practicing in and around the Chicagoland area. Experienced in the practice areas of Real Estate Law, Mortgage Foreclosure Defense Litigation, Social Security Disability, Business Law, & Estate Law.

Attorneys At Law - Attorneys practicing in and around the Chicagoland area. Experienced in the practice areas of Real Estate Law, Mortgage Foreclosure Defense Litigation, Social Security Disability, Business Law, & Estate Law.

Federal Reserve to Keep Interest Rates Steady

If you are planning on buying a home in the near future, there is good news for you from the Federal Reserve about interest rates.

The Federal Open Market Committee unanimously voted to maintain the federal funds rate at a range of 1.75-2 percent.

 

Here is the original story as published by The Federal Savings Bank:

Fed holds benchmark interest rate steady for now

August 2018

The Federal Open Market Committee wrapped up its fifth meeting of 2018 with a unanimous vote to maintain the federal funds rate at a range of 1.75-2 percent, according to the group’s statement.

Home for saleThough rates will remain the same, the Fed also alluded to a strong national economic climate, which will likely result in future rate hikes later this year.

With only three meetings left in 2018 – Sept. 25-26, Nov. 7-8 and Dec. 18-19 – it’s not hard to narrow down when those increases might happen. The New York Times reported that the paper expects them to occur in September’s and December’s meetings.

 

Why the Fed raises rates

The Federal Reserve typically decides to increase interest rates during times of economic growth. But just because FOMC members voted to maintain the current rate doesn’t mean they’re not optimistic about current conditions.

First Time Home Buyer Mortgage WorkshopIn fact, the statement issued after the meeting pointed to job gains and household spending as indications of strength.

In the most recent Employment Situation, the Bureau of Labor Statistics reported an increase in nonfarm payroll employment of 213,000 in June. Wages also increased, with the average pay increasing 5 cents to $26.98 per hour.

Personal consumption expenditures – another way of saying consumer spending – increased 0.4 percent in June, according to the most recent release from the Bureau of Economic Analysis.

The increased spending was primarily focused on accommodations and restaurants, a sign of strong consumer confidence.

Because of these positive signals, many economists are confident that there will be two rate hikes before the end of the year.

 

How consumers can prepare for increased rates

Though there’s no rate hike to respond to this month, consumers can take steps to prepare for any increases that might occur in the coming months.

Model Home TaxAlthough a rate hike likely won’t have an immediate effect on most consumers’ day-to-day financial lives, they can see gradual changes in interest rates and other costs over time.

Rate changes could lead to higher credit card interest rates. As such, consumers who are carrying a balance now might begin to strategize a plan to pay down their debt.

Mortgage interest rates may also begin to escalate. So far in 2018, rates have grown from an average of 3.95 percent for a 30-year fixed-rate mortgage at the beginning of January to 4.54 percent for the same product during the week ending July 26, according to Freddie Mac’s Primary Mortgage Market Summary.

For prospective homebuyers hoping to close on a purchase this year, it may be smart to get preapproved soon.

This story was originally published by The Federal Savings Bank

 


* Advertising Material: To the extent that the information in this post is interpreted as attorney advertising in accordance with the Illinois Rules of Professional Conduct or within the meaning of state bar rules from all other localities, this statement is made pursuant to those rules.

Specialties: Specialization claims are prohibited by Illinois Supreme Court Rules and we do not claim to be specialists. The content of this e-mail is organized and presented for the sole purpose of general information. None of the included content should be construed as legal advice. Viewing this e-mail or e-mailing the account holder does not create an attorney-client relationship. NOTICE: This page may be considered advertising material.


 

The Law Offices of Lora Fausett P.C. provides real estate law services including loan modificationsbuying and selling legal assistanceshort sales and deeds in lieumortgage foreclosure defense, and more.

Located in Glen Ellyn, Illinois and serving clients in DuPageCookKane, Will, and Kendall Counties.

For Information Call 630-858-0090


 

Beware Online Wire Transfer Fraud

Online Banking Fraud

Be aware! Online banking fraud is on the rise.

If you receive an email containing WIRE TRANSFER INSTRUCTIONS, call the title company directly to verify the information prior to sending funds.

Scam artists in the United States and around the world defraud millions of people each year by using internet scams to deceive people into giving them personal information or sending money through wire transfers.

Just recently, a Washington D.C. couple was defrauded $1.5 million dollars in an online wire transfer title company scam.

They were waiting to go to closing on their new “dream home” when they got an email that they thought was from their title company.

When they replied to the email to double check and received a reply, they assumed it was legitimate and so they wired the remaining $1.5 million to the bank.

Only later when they went to sign the settlement papers on the house, they learned they had been victims of a scam.

Tips to Avoid Internet Fraud

According to USA.gov, you should take these measures before entering into transactions over the internet:

  • Know your seller – If you don’t know who you’re buying from online, do some research.
  • Protect your personal information – Don’t provide it in response to an email, a pop-up, or a website you’ve linked to from an email or web page.

Report Internet Fraud

If you believe you’ve been a victim of internet fraud or cyber crime, report it:


* Advertising Material: To the extent that the information in this post is interpreted as attorney advertising in accordance with the Illinois Rules of Professional Conduct or within the meaning of state bar rules from all other localities, this statement is made pursuant to those rules.

Specialties: Specialization claims are prohibited by Illinois Supreme Court Rules and we do not claim to be specialists. The content of this e-mail is organized and presented for the sole purpose of general information. None of the included content should be construed as legal advice. Viewing this e-mail or e-mailing the account holder does not create an attorney-client relationship. NOTICE: This page may be considered advertising material.


The Law Offices of Lora Fausett P.C. provides real estate law services including loan modificationsbuying and selling legal assistanceshort sales and deeds in lieumortgage foreclosure defense, and more.

Located in Glen Ellyn, Illinois and serving clients in DuPageCookKane, Will, and Kendall Counties.

For Information Call 630-858-0090


Mortgage Rates Surging After Presidential Election

mortgage rates going up after presidential electionThe average rate of a 30-year-fixed rate mortgage has jumped to 3.94%, up from 3.57% last week. In the past two weeks, the rate has increased 40 basis points.

But that’s still pretty low. This time last year, a 30-year mortgage was 3.97%.

The higher rate means the monthly payment on a $250,000 home loan with a 20% down payment would be $948 — $42 more than it would have been last week.

The initial bump in mortgage rates last week was more of a knee-jerk reaction to the election results from the market, explained Keith Gumbinger, vice president of HSH.com.

But now concerns over President-elect Donald Trump’s proposed spending and tax cuts, are fueling volatility in the bond market.

“The prospect for faster growth comes with faster inflation, and even though not a stitch of policy has been written, markets are preparing for what is likely to come in the months ahead,” said Gumbinger.

Treasury notes serve as a benchmark for various types of credit, including mortgages and car loans.

The 10-year Treasury note closed at 1.85% on Election Day. A week later, it stood at 2.24%. Higher yields make borrowing more expensive.

“There is a flight to safety of assets outside the U.S.,” said Erin Lantz, vice president of mortgages for Zillow Group.

Tight inventory levels have pushed up housing prices in many markets throughout the country. But low interest rates have helped buyers stomach the higher prices.

While mortgage rates increased 10%, they are still close to historic lows.

“It is always important to keep perspective: If you look back, rates are only as bad as when we began 2016,” noted Gumbinger.

But the prospect of higher rates is starting to set in. Mortgage applications dropped 9.2% last week, according to The Mortgage Bankers Association. The Refinance Index took an 11% tumble to the lowest level since March.

The Federal Reserve is set to meet in December and is expected to raise the federal funds rate, which is the short-term interest rate it uses to lend money to banks.

While an increase is heavily anticipated, Gumbinger said he will be paying attention to the central bank’s language.

“It’s more about what they say about future policy. If the message is a soothing one, markets won’t react very much. If it’s a more hawkish tone, then you will see markets reposition for the next interest rate increase.”

Original story appeared on CNN.Money

Wells Fargo Limiting Short Sale Extensions

Wells Fargo has announced that the company will stop granting extensions for many distressed homeowners to complete short sales.

The bank has stated it changed its policy on short sales at the behest of investors for whom it services mortgages, including the government-sponsored enterprises.

Mary Berg, a spokeswoman for Wells, confirmed that the story reported in the financial media was true but that it had “caused confusion.” Berg stressed that Wells still grants short sale extensions on loans in its own portfolio and in cases where investors allow it.

Read the full story originally published on American Banker.com…

Wells Fargo Curtailing Short Sale Extensions
October 2010

By Kate Berry

In a move that will expedite some foreclosures, Wells Fargo & Co. has stopped granting extensions for certain distressed homeowners to complete short sales.

The change last month preceded recent revelations of faulty documentation at two major mortgage servicers — JPMorgan Chase & Co. and Ally Financial Inc. — that suspended thousands of foreclosure actions to review their processes. Wells said it does not have the same problems as those servicers.

The company said it changed its policy on short sales at the behest of investors for whom it services mortgages, including the government-sponsored enterprises.

Early last month, Fannie Mae told its servicers to stop unnecessarily delaying foreclosures. The GSE said it would hold servicers responsible for unexplained delays to foreclosures with fines and on-site reviews.

In a memo e-mailed to short sale vendors last month and obtained by American Banker, Wells said it will no longer postpone foreclosure sales for those who do not close short sales by the date in their approval letter from the company. Only extension letters dated Sept. 14 or earlier would be honored, Wells said.

Mary Berg, a spokeswoman for Wells, confirmed that the memo was genuine. But she said it had “caused confusion,” and stressed that Wells still grants extensions on loans in its own portfolio (including those it acquired with Wachovia Corp.) and in cases where investors allow it. For those two categories, Berg said, Wells allows one foreclosure postponement, provided these conditions are met: a short sale has been approved by Wells, by junior lienholders and by mortgage insurers; the buyer has proof of funds or approved financing; and the short sale can close within 30 days of the scheduled foreclosure sale.

Berg would not say how often Wells’ investors allow extensions.

The new policy on short sales was put in place “over the past couple of months … in response to various investor changes,” Berg said. Those investors “would include the GSEs, HUD and those investing in private-label” mortgage-backed securities.

In a short sale, a home is sold for less than the amount owed on the mortgage and the lender accepts a discounted payoff. The transactions are often less costly to the lender than seizing and liquidating the home.

“As long as there is a short sale possibility, the loss will always be less,” said Rayman Mathoda, the president and chief executive of AssetPlan USA, a Long Beach, Calif., provider of short sale training and education. “Basically foreclosure sales should be delayed for any responsible homeowner that has a real buyer available.”

Wells’ decision also follows efforts by the Obama administration to encourage short sales for borrowers who do not qualify for loan modifications.

“It makes no business sense why they are doing this, since it’s wrong for the borrowers and for the government,” said Eli Tene, the CEO of IShortSale Inc., a Woodland Hills, Calif., firm that advises distressed borrowers.

But experts on short sales said that in recent months servicers have been reluctant to approve the transactions out of concern that they will fall through, further prolonging the process.

“There is also a growing issue with the new buyer and financing issues, either losing their jobs ahead of closing or the new lender not being ready to close, which then gives rise to the buyer running out of patience and walking,” said Jim Satterwhite, executive vice president and chief operating officer of Infusion Technologies LLC, a Jacksonville, Fla., provider of short sale services.

Satterwhite said many servicers have reached the point where they know which borrowers do not qualify for a modification and are moving those borrowers through to foreclosure to deal with the backlog of inventory. “A lot of servicers are just falling in line with Fannie,” he said.

Moreover, the expectation that housing prices will fall further is forcing servicers — and the GSEs — to push for a quicker resolution through foreclosure, since short sales can involve further delays. “Values are dropping faster and that also means the losses on short sales are going up,” Satterwhite said.

Of course, the recent reports of “robo-signing” at Ally Financial’s GMAC Mortgage and at JPMorgan Chase could gum up the foreclosure works again. For example, on Friday, Connecticut Attorney General Richard Blumenthal asked state courts to freeze all home foreclosures for 60 days to “stop a foreclosure steamroller based on defective documents.” The day before, Acting Comptroller of the Currency John Walsh said he had told seven major servicers, including Wells, to review their foreclosure processes.

Another Wells spokeswoman, Vickee J. Adams, said the company’s “policies, procedures and practices satisfy us that the affidavits we sign are accurate.”

Five Tips for Beating Bank Foreclosure

Since the recession of 2008, foreclosures have become much more common than before. Luckily, there is a new legal practice area for lawyers to help homeowners keep their homes. Lawyers combine many facets of their knowledge to help you keep your home.

Five Common Defenses

Standing is one of the tactics. The entity filing the suit must be the proper party to enforce the note and foreclose the mortgage.

Acceleration would be the next tactic. A note is what is called an installment contract. One party lends money and the other makes periodic payments. If the responsible party fails to live up to their end of the bargain, the lender can sue for past due amounts.

Damages. As part of any civil lawsuit for money, including breach of contract, the plaintiff must prove damages.

Evidence. Lack of evidence can cause any case to collapse. Lack of evidence can cause any case to derail.

Second Lawsuits. In every other practice of law, once the case is closed, that is the end of it. However, in Florida, the Supreme Court of the state has decided that banks can have as many chances as they like as long as they can claim a different date on the defaults.

For More In-Depth Information Click the Article:

http://www.law360.com/articles/695014/5-tips-for-beating-a-bank-foreclosure