What Will The Government Do To Save You?
Reportedly the housing crisis is slowly coming to an end, which will be a cause for joy to many homeowners as well as many of the major financial institutions. But the dismal aftermath of the storm remains, with more than 1,000,000 facing foreclosure. And in the midst of the foreclosure worries of those many homeowners, are the sharks, the shams and those who wish to make a quick buck off the misfortune of others.
Mortgage law – does it exist? And if so, what is the government doing to protect homeowners facing foreclosures because of the illicit actions of those who baited the vulnerable with the ‘mortgage aid’ schemes?
As far as mortgage law goes, it does exist, but mostly in a capacity to safeguard the transaction between the creditor and the debtor. Subsequent loopholes are therefore left, enabling those rogue salesmen of profitable mortgage schemes to roam freely and without restraint and therefore cause many current homeowners to face foreclosure proceedings. After all, they have the documentation in which homeowners have signed over the deeds to their homes, which, according to the law, makes it a legal transaction.
Changes in Mortgage Law
But times change and so do mortgage laws. Where previously there was a reluctance on behalf of the government to intervene on behalf of the victims of these mortgage laws, changes are being seen in mortgage law that ban ‘for profit’ mortgage assistance and those that seek to assist the victims of these scams such as the Home Equity Theft Prevention Act of New York, as reported in The New York Times on July 3rd, 2007. Of course, the most significant thing about these mortgage laws are that they are only implemented on state level, not national, and therefore still leaves thousands upon thousands of homeowners at risk, who may ultimately face foreclosure.
The real solution, and one that might of course be available in a more timely fashion, is of course the education of homeowners nationwide concerning the mortgage laws and foreclosure options available to protect them from possible future risks. Just browsing on the internet, mortgage laws and options to stop foreclosure from happening are readily available at the mere click of a button. In addition, using keywords like ‘mortgage scam education’, ‘mortgage scam prevention’ or ‘mortgage law’ in a search engine will land you at the pages of those institutions who are capable of offering sound advice.
On our part, all we can do is offer a couple of tips for homeowners to be keen on when seeking mortgage assistance to avoid foreclosure– that is, until mortgage laws are sufficiently updated.
For those facing foreclosure or seeking mortgage assistance, we advise asking questions which are not apparent in the contract:
1. What is the amount of the monthly instalment?
2. What about taxes, interest rates, penalties, fees and insurance and are they added to the instalment amount?
3. Will the amount remain constant? What changes is it subject to?
4. What happens if I manage to settle the outstanding amount of the loan before the final payment?
5. How long is the pre foreclosure period?