Indus Property

Deadline Looms For Emergency Homeowners’ Loan Program Applicants

With the number of Americans going into foreclosure faster than the real estate industry can keep up with, the Emergency Homeowners’ Loan Program was established to provide distressed homeowners with financial assistance. The only problem is that the program was not as heavily promoted as it should have been, and many property owners have no idea that it even exists. In fact, the federally funded homeowners assistance program was supposed to debut nearly a year ago. Because of political debates and financial issues, it didn't go into effect until June. Even still, homeowners only have a short period of time in which to get their applications submitted and approved.

The good news is that all qualified applicants will receive $50,000 to pay their mortgages. This money will be especially helpful to those that are only a few weeks away from foreclosure. As it stands, the Emergency Homeowners’ Loan Program has been developed as a one time deal that will help to spur the lagging housing market. By reducing the number of people that are foreclosed on, the government will be better able to protect its own interests in the mortgage industry. Federally owned mortgage companies Freddie Mac and Fannie Mae nearly went bankrupt because of the massive number of foreclosure filings.

Although there is only a small window for homeowners that are facing foreclosure to get help from the Emergency Homeowners’ Loan Program, the help couldn't have possibly came at a better time. Only homeowners that have lost their jobs and are currently unemployed will be able to qualify.

09.07.2011. 05:01

Former TBW Owner Faces Life In Prison For Collapse Of Mortgage Company

Lee Farkas was the owner of Taylor, Bean & Whitaker when the mortgage company took bailout funds from the federal government. Despite the efforts of lawmakers, Farkas had already set what was to become the biggest mortgage fraud scheme in the history of the US into motion. Several high ranking executives have plead guilty and been sentenced for the role in the collapse of Taylor, Bean & Whitaker. The bank was valued at nearly $3 billion when investors began to catch on.

Farkas had been selling the same mortgages to a number of investment firms. Not only did this cause speculators to inflate the total net worth of Taylor, Bean & Whitaker, it also caused panic when the federal government learned that it had effectively sunk hundreds of millions of dollars into a scam. Farkas has be unapologetic for his role in the collapse of Colonial Bank and the real estate industry as a whole. Instead of pleading guilty to the charges like his co-conspirators, Farkas and his legal team attempted to paint a different picture.

If prosecutors have it their way, Farkas will be sentenced to 385 years in prison. Farkas' attorneys have asked for a far more lenient sentence of 15 years. In total, Farkas was able to dupe investors for seven years. He claims that he was unaware of the actions of his employees, however, it would be impossible for them to have defrauded the company for such an extended period of time. Whether or not Farkas gets the maximum sentence, the damage has already been done to the real estate market.

23.06.2011. 16:40

Courts Decide The Future Of Mortgage Electronic Registration Systems

MERS, also known as Mortgage Electronic Registration Systems, is a company that helps banks to perform deed transfers and assign properties to homeowners quickly and effectively. The company, which has been in the business of tracking and maintaining a database of home loans for the past 20 years, may not have the authority to assist lenders when they foreclose on properties. Recent conflicting rulings in California and New York have shown that even judges don't know what to make of MERS.

The main problem with MERS is that it does not have a vested stake in any of the properties that it foreclosed on. Acting as a proxy for banks that might not have branches, officers or any employees in the area, MERS has seized homes, performed auctions and even hired companies to maintain REO properties. Not only do many judges see this as a conflict of interest, the fact is that MERS is not infallible. Because MERS can register, transfer and foreclose on a property, when mistakes are made there is no way for outside agencies to know.

In other words, Mortgage Electronic Registration Systems has caused people to lose their homes, and all that the company has offered is a weak apology. The company has lost several legal battles, which means that individual states are restricting MERS' power. Mortgage Electronic Registration Systems used to offer a uniform system that would allow homeowners in Michigan to buy a property in California through a lender that was based in Texas. Now, it seem that lenders and buyers may need to come up with a new way to do business.

08.06.2011. 18:28