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Protecting Your Home Against Foreclosure

Foreclosure Process Explained - A Detailed Overview

As a way to offset the high amount of foreclosures in the housing market, foreclosure rescuers have risen up to the endeavor; they do this with the use of refinancing loans secured by the home. Homeowners can easily win the argument that all loans are necessary by the federal truth and Lending Act and the Home Ownership and Equity Protection Act. The HUD arm citizens with the knowledge to avoid foreclosures by offering alternative information. They will refer them to legitimate credit counselors that will provide the service free of charge and a list of Tips for Avoiding Foreclosure. The Protecting Tenants at Foreclosure Act of 2009 was signed into a law by President Obama May 20, a legislation that prevents renters from being removed from their home if there are foreclosures that result in a new owner. This benefits the military and allots more time to renters to find a new home. Service members rent homes throughout the nation so this additional protection is beneficial.

This act protects the renter until the end of the lease or in the case that the renter’s lease is monthly, it still gives the renter at least 90 days before they can be evicted. The Federal Reserve provides a Five Tip series to the public with the intent of giving the people basic information in the prevention of scams thus allowing the consumer to select a legitimate counselor and avoid scam artists. HUD-approved counselors are non-profit and a list of certified counselors can be contacted by dialing 877-HUD-1515 (877-483-1515). When it comes to counseling paying a large fee should not be part of the agreement. No one can guarantee good results but following the rules, tips, and guidelines will help increase the likelihood against a foreclosure. Pay attention to fine print and know exactly what is being signed, never sign paperwork you haven’t had the opportunity to read thoroughly especially if it sounds too good to be true, it most likely is. If you feel victimized by foreclosure fraud ask for help, asking never hurt anyone especially if you are unsure. Report suspicious activity to local and state protection agencies found on the Consumer Action Website.

The Real Estate Settlement Procedures Act, RESPA, is a federal law that governs that lenders disclose at the time of closing; it prohibits kickbacks and unearned fees, enables damages and at times sometimes rescissions if the error triggers TILA. HOEPA, The Home Ownership and Equity Protection Act, is another Federal law that strictly governs high cost refinance loans. Violations enable rescissions and money damages that may be in excess of the loan dollar amount. The Racketeering and Corrupt Organizations Act, RICO, enables a borrower to plead a RICO claim a yield spread premium case. The claim must satisfy the requirements of RICO such in the case that the payment of the premium was not disclosed and the cost of the premium is in the form of a high rate of interest; especially if the broker lead the borrower to the belief that it would provide a low interest rate. ECOA, The Equal Credit Opportunity Act uses bait-and-switch tactics to be filed. It is the remedy for actual and punitive damages, attorney fees, equitable relief.

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