Federal Government Getting Out of the Mortgage Business

Fannie Mae and Freddie Mac were created by the Federal Government to assist homeowners in obtaining mortgages to purchase single family and/or multiple family homes. Freddie Mac and Fannie Mae are not doing well. They are both bankrupt. These organizations are currently being bailed out by the Federal Government.

President Obama and his administration would like to abolish Fannie Mae and Freddie Mac. Both the White House and Congress are in agreement that the long term future of the mortgage market should be determined by private enterprise and not by federally backed agencies.

Today, tax payers are shelling out billions of dollars to keep Freddie Mac and Fannie Mae financially solvent. These organizations are involved in almost 90% of all mortgages in the United States. Freddie Mac and Fannie Mae buy mortgage loans from primary lenders (banks). They put them together in investment products and sell them with guarantees in the event the borrower defaults. The initial purpose of Freddie Mac and Fannie Mae was to facilitate the purchase of homes by middle class Americans. The underlying reason for their creation was to allow more Americans to obtain the American dream, the ownership of a single family home at an affordable mortgage rate.

Three Proposals for the replacement of Freddie Mac and Fannie Mae

Proposal 1: The Federal Government would not be involved in the underwriting of home mortgages. The Federal Housing Administration would simply police mortgage activities.

Proposal 2: The Government would act as an insurer of mortgages.

Proposal 3: The Government would act as an insurer of only targeted mortgages. Under this proposal, the government would be involved more as a reinsurer of mortgages.

Congress and the Obama Administration are now discussing these proposals.

New York Foreclosure Defense Lawyers

Our law office can help you with mortgage modifications. We are familiar with mortgage modification programs that fail to meet consumers’ needs. We represent New Yorkers in foreclosure litigation. We defend them from these proceedings. We litigate defective foreclosure lawsuits, predatory lending, bad faith and defective mortgages. We attend foreclosure court conferences on behalf of our clients. We have decades of experience regarding real estate transactions involving mortgages. We maintain a foreclosure blog to educate New Yorkers concerning relevant issues involving mortgages, foreclosures and real estate matters.

We file Chapter 7 and Chapter 13 bankruptcies on behalf of our clients. We explain to our clients why they should or should not file bankruptcy. We utilize bankruptcies to stop foreclosures in their tracks. When the bankruptcy is completed, we are available to assist our clients in re-establishing their credit.

Should you have a foreclosure or mortgage modification problem, feel free to call us a 1-800-344-6431, 516-561-6645 or 718-350-2802.

Home Prices Decline in Large Cities

Home prices are hitting new lows in many major cities. High foreclosure rates, coupled with high unemployment, stricter lending rules and the public’s fear that real estate prices will continue to decline is causing home prices to go down.

Home Prices Decline In Large CitiesUneven Recovery for the Housing Market

The cities in United States are facing different problems based on the location of the city and the economic situation in that locality. Cities that are built up with little room for new housing starts, such as in the Metropolitan New York area and the coastal cities in California, are experiencing a smaller rate of decline in home prices. Unfortunately many new homeowners are unable to obtain mortgages. Underwriting requirements to purchase a new home are very strict. It is estimated that housing prices will continue to decline in 2011 and, in many cities, will hit new lows.

The Economy is Improving While the Housing Industry is Still in the Doldrums

There has been progress with regard to the economy improving in the last few months. The stock market has been going up for approximately six months. However, the improvements in the economy have not impacted the housing industry. In 2011, the prospects for the housing industry are dismal. It is estimated there will be less construction of new homes this year than in the two previous years. Cities with high unemployment rates and high foreclosure rates are having the most problems in the real estate sector.

Nevada Housing Prices Crushed

Homes in Las Vegas have lost more than 50% of their value since 2006. Las Vegas has one of the highest unemployment rates in the country. One out of every four home sales in Nevada is either a foreclosure or a short sale.

Foreclosure Prospects in 2011

It is estimated that there will be millions of homes going into foreclosure in 2011. It is hopeful that the foreclosure crisis will bottom out in the year 2011 and improve in 2012.

Home Prices Decline In Large Cities-2New York Foreclosure Defense Lawyers

Our office represents clients throughout the Metropolitan New York area regarding foreclosure defense issues. We litigate these matters on behalf of our clients. We attend foreclosure court conferences and explain to the judges our clients’ problems with mortgage modifications. We provide assistance to our clients regarding mortgage modification applications. We help our clients with mortgage modification programs that failed to meet their needs. We maintain a foreclosure blog. We litigate defective foreclosures, bad faith, defective mortgages and predatory lending issues. We litigate all types of real estate related matters on behalf of our clients. If our analysis indicates bankruptcy is the appropriate way to assist our clients with their financial problems, we file either Chapter 7 or Chapter 13 bankruptcies. We stop foreclosure proceedings from proceeding. Call us for a free consultation at 516-561-6645, 718-350-2802 or 1-800-344-6431.

Home Modification Problems in California (Part 1): Lawyers who Assist Homeowners in Mortgage Modifications Are Now Out of Reach

Mortgage Modifications Are Now Out Of ReachThe Ridiculous Law in California

The State of California has more active foreclosure cases than any other state in the country. Homeowners in California who seek mortgage modifications have had difficulties for the past few years. Today, they have a new difficulty – they can no longer hire lawyers!

Lawyers throughout the State of California are now being forced to reject clients who come to them for the purpose of obtaining mortgage modification loans. This is because California has passed a unique, unusual and restrictive statute. The new law states that attorneys who work on mortgage modification loans can receive no payment until the loan is approved. Under the new statute, clients cannot even put retainer payments in attorney trust accounts.

This California statute is unlike any other statute in the country. The intent of the California statute is for “fly-by-night” loan modification businesses run by non lawyers to be eliminated from the marketplace. Unfortunately, there has been a fallout from this new statute. The unintended consequence of the new law is that honest, hard-working, well-known, well-established attorneys with excellent credentials can no longer represent individuals in dealing with financial institutions’ complicated and burdensome paperwork related to loan modifications.

avoidNew York Foreclosure Defense Lawyers

In the state of New York, there are no restrictions regarding the hiring of foreclosure defense attorneys. For more than 45 years, the Law Offices of Schlissel DeCorpo has been at the forefront of defending consumers and homeowners regarding litigation with financial institutions. We have developed an expertise in defending foreclosure lawsuits. Upon meeting with our attorneys, we will analyze the paperwork related to your case. We will discuss foreclosure defenses, mortgage modifications and the potential of using bankruptcy filings to assist you. We will provide you with a detailed explanation as to the foreclosure process, the mortgage modification process and how bankruptcies affect homeowners. If you are in trouble with your lender, or behind on your mortgage, call us. We can help you! Our phone numbers are 1-800-344-6431, 516-561-6645 and 718-350-2082.

Foreclosure Scam by the Rich and Well Connected

Banks Close in Florida and Arizona

Posted by Elliot S. Schlissel, Esq.

Regulatory agencies in Florida and Arizona have recently closed two banks.  These two banks are the first banks that have been closed in the year 2011.  The Federal Deposit Insurance Company was forced to take over the First Commercial Bank of Florida.  This bank was located in Orlando.  The Federal Deposit Insurance Company (FDIC) also took over the Legacy Bank located in Scottsdale Arizona.  These two banks had approximately 275 million dollars in deposits belonging to consumers in their institutions.  It is estimated that these banks will cost the FDIC approximately 110 million dollars.  It should be noted that the FDIC insures each consumer’s account up to $250,000.00. Therefore, the depositors at the aforementioned banks will not lose any money, provided they didn’t have more than $50,000.00 at these banks.

Florida Has the Biggest Banking Crisis in the United States

In 2010, twenty-nine banks in Florida failed.  Florida has had more bank failures than any other state.  California and Illinois came in second and third in the list of states with bank failures.  During the course of 2010, 157 banks failed nationwide.  This is the highest amount of banks that has failed in the United States in recent history.  In 2009, 140 banks failed in the United States.  This had been the previous record year for bank failures.

In 2009, the FDIC paid our 36 billion dollars due to bank failures.  In 2010, the FDIC paid out 21 Billion dollars due to bank failures.  The numerous bank failures have been draining the FDIC of the funds it maintains to secure accounts deposited in the banks of the United States.  It is estimated that there are almost 900 financial institutions with financial difficulties in the United States.  Thank God for the FDIC! Without this Federally backed institution, hundreds of thousands of consumers would lose their life savings.

New York Foreclosure Defense Lawyers

The Law Offices of Schlissel DeCorpo represents homeowners in New York with foreclosure problems and issues involving mortgage modifications.  Our office is adept at keeping our clients in their homes and preventing the banks from putting them on the street.  We attend foreclosure conferences for our clients.  We deal with defective foreclosure lawsuits, predatory lending issues, mortgage modification programs that don’t work as well as bad faith issues.  If you have a problem involving a foreclosure or mortgage modification, we are the solution! Feel free to cal us at 1-800-344-6431, 516-561-6645 or 718-350-2802.

Foreclosure Defense in Valley Stream, Lynbrook, Baldwin, Malverne, Freeport, Oceanside, Long Beach, Elmont, Lakeview, West Hempstead, Hempstead, Merrick and Bellmore, New York

We represent individuals throughout the New York Metropolitan area with divorce and child custody, personal injury, car accident, wrongful death, estate administration, nursing home and medicaid issues

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