Foreclosure Consultants Are Expected To Increase
- Date: 2007-03-29 - Word Count: 397
Share This!
When homeowners receive a home foreclosure notice they often look for help from consultants who may not have the homeowners' best interest in mind and may instead take title to the about-to-be-foreclosed property, thereby cheating the owners out of any equity they might have had in the property. The fraudulent consultants pocket the profit gained on the equity when the property is sold and the homeowner loses it all.
Under a new bill (LB1230) introduced into the Nebraska Legislature consultants are restricted as to the advice they can give, homeowners have the opportunity to rescind any agreement which removes their home equity, and consultants are barred from asking for title to the property.
The bill is similar to ones in place in eight U.S. states already, including one passed in Colorado last year. They are designed to protect consumers from questionable practices in the foreclosure consultancy businesses, which are springing up all over the country.
Foreclosure consultants are expected to increase due to the tremendous increase in the number of foreclosures in this country.
According to the Center for Responsible Lending, foreclosures rates for subprime loans made during the last two years are expected to double. This chilling projects means that as many as one in five subprime mortgages which originated during the last two years could end up in trouble. Subprime loans are those made at higher interest rates and sometimes with complicated financing structure. For example the loan known as a 228 has two years of fixed interest rates and then is allowed to increase sometimes to dramatically higher levels in a short period of time. In many cases, the 228 loans are starting to arrive at the point where the interest begins to increase which leads experts to believe that foreclosure rates will also increase.
Another factor impacting the foreclosure rate is the cooling housing market which means people seeking to refinance their houses to avoid potential foreclosure no longer have equity to show in order to refinance.
While there are an increasing number of foreclosures and an increasing number of foreclosure consultants, the legislation is intended to prevent the consultant from obtaining the deed to a $100,000 house with $75,000 owing and pocketing the profit based on the $25,000 equity in the house. The bill was crafted by members of the State Banking Department and is aimed at the few 'bad apples' who take unfair advantage of people at a most vulnerable time.
Under a new bill (LB1230) introduced into the Nebraska Legislature consultants are restricted as to the advice they can give, homeowners have the opportunity to rescind any agreement which removes their home equity, and consultants are barred from asking for title to the property.
The bill is similar to ones in place in eight U.S. states already, including one passed in Colorado last year. They are designed to protect consumers from questionable practices in the foreclosure consultancy businesses, which are springing up all over the country.
Foreclosure consultants are expected to increase due to the tremendous increase in the number of foreclosures in this country.
According to the Center for Responsible Lending, foreclosures rates for subprime loans made during the last two years are expected to double. This chilling projects means that as many as one in five subprime mortgages which originated during the last two years could end up in trouble. Subprime loans are those made at higher interest rates and sometimes with complicated financing structure. For example the loan known as a 228 has two years of fixed interest rates and then is allowed to increase sometimes to dramatically higher levels in a short period of time. In many cases, the 228 loans are starting to arrive at the point where the interest begins to increase which leads experts to believe that foreclosure rates will also increase.
Another factor impacting the foreclosure rate is the cooling housing market which means people seeking to refinance their houses to avoid potential foreclosure no longer have equity to show in order to refinance.
While there are an increasing number of foreclosures and an increasing number of foreclosure consultants, the legislation is intended to prevent the consultant from obtaining the deed to a $100,000 house with $75,000 owing and pocketing the profit based on the $25,000 equity in the house. The bill was crafted by members of the State Banking Department and is aimed at the few 'bad apples' who take unfair advantage of people at a most vulnerable time.
Related Tags: foreclosed homes, distressed houses, bank foreclosure lists in, repossessed, hud forclosur, foreclosed properties in ne, ne bank foreclosure listings
Bob Smith is the writter of Mostlyforeclosures.com. For more information on Nebraska Foreclosures please visit www.mostlyforeclosures.com/. Your Article Search Directory : Find in Articles
Recent articles in this category:
- 5 Reasons to Buy Jasper Real Estate
Jasper is a small town in North Georgia and it is growing rapidly. Since North Georgia Foreclosures - Ellijay Real Estate
Ellijay Georgia has always been known for it's outdoor activities and seasonal festivals. Downtown E - How to Deal With Blocked Drains
A blocked drain is an occurrence that happens eventually to all households. You may have experienced - The Benefits of Hiring a Plumbing Consultant
Your dream home may not always be brand new, with fresh paint and home essentials. There are certain - The Worst Mistake You Can Make When You Apply to Rent a Home
A whole new class of people has become renters and potential renters in America during the last thre - State of Individual Real Estate Markets
Everybody is well aware of the hit that the real estate market has taken over the past three years. - Thoughts on Avoiding the Landlord Trap
I've heard several people say they would never invest in a multifamily rental property because they - An Idea to Increase the Bottom Line of Your Investment Property
Are you pretty sure that you've already maximized the income coming from your property? If you've cl - Finding the Value of a Piece of Investment Real Estate
There is a lot of confusion about how much investment property is really worth. We'll look at three - Arkansas Land For Sale - Search Engine Optimization and Your Website
If you have Arkansas land for sale and are interested in advertising it on your website I have a few
Most viewed articles in this category:
- How High Did Home Prices Really Go
The U.S. Census Bureau released data on Tuesday that revealed where the nation's hottest markets wer - New Homeowners Tips for Household Safety
With so many items on their ¡°buying a home¡± checklist, few homeowners take into considerati - Truth About VA Foreclosures
Many people now days are finding themselves out of work and not being able to make the mortgage paym - Avoid Rookie Real Estate Investing Mistakes
When Robert Kiyosaki, author of the Rich Dad book series, bought his first property he was, of cours - Finding The Perfect Roommate On Craigslist
Craigslist, Roommates, and The Concerns Craigslist is "great" when it comes to looking for housing - The Forgotten Secret To Selling Property - Simple, Quick And Cheap
Why spend big dollars trying to get people to drive a long way to see your house, when your best pro - Get Amazing Results Selling Real Estate Online
This is the age of the internet. Why not take advantage of the widespread use of the internet to ad - Dallas Real Estate Information
In the United States, Dallas is considered as the second leading state according to the area. If any - The Largest Private Equity Indian Real Estate Deal
In the largest private equity deal won by the real estate sector, Morgan Stanley Real Estate has inv - Fractional Real Estate Ownership
Fractional ownership of vacation ski condos is growing in popularity. Park City Utah a popular ski t