Mortgage Reform by President Obama

President Obama seeks to reform the mortgage industry in the United States. He plans on accomplishing this by significant changes in government backed Fannie Mae and Freddie Mac. President Obama has presented several different options to the United States Congress for reducing the country’s dependence on Freddie Mac and Fannie Mae. His program is one of fundamental reform of the mortgage industry. He hopes these reforms will provide greater protection for consumers and allow middle class Americans to obtain affordable mortgages.

Fannie Mae and Freddie Mac

Government backed Fannie Mae and Freddie Mac are involved in approximately 90% of the mortgages, one way or another, in America. As of now, these two government backed agencies have over $150 billion dollars in losses! It is anticipated these losses will climb to $400 billion dollars before the housing bubble is completely corrected.

New Programs

Some of the recommendations made by President Obama’s reform team will require Fannie Mae and Freddie Mac to charge banks the same amount for loan guarantees as paid by private financial institutions. Currently, federally backed mortgage loans can go up to $729,750. One of President Obama’s reforms would be to reduce this amount to $625,500. It is anticipated that this action will motivate the private banking sector to make more high-value mortgage loans.

The administration also seeks to have a minimum down payment of 10% regarding all government backed loans. One of the problems that caused the mortgage bubble is that Freddie Mac and Fannie Mae have been making loans with zero down payment. Query – if a homeowner has no money to put down for the purchase of a home, isn’t this an indication that if things do not go well, they will quickly walk away from making their mortgage payments? This is what caused the housing crisis. The giving of inappropriate mortgage loans to unqualified prospective homeowners!

The removal of government guarantees from the loan market is opposed by various special interest groups. Real estate agents, home builders, home supply companies, mortgage brokers and other individuals who make a living from the housing market oppose any changes to the current system. The Obama Administration seeks to make changes to the mortgage market over a five-year period.

Mortgage Modification and Foreclosure

If you have problems making your mortgage payments, reducing the amount of your monthly payments is a good idea. All financial institutions currently have mortgage modification programs. Unfortunately, some mortgage modification programs fail to provide belingered homeowners with realistic alternatives to their current mortgages. Our law office can help you deal with the complexities of the various mortgage modification programs.

Foreclosure is the process by which a bank takes back a home for the nonpayment of a mortgage. Should you be facing foreclosure, we can keep you in your home. Our foreclosure defense lawyers have developed an expertise in fighting these lawsuits. Once a lawsuit is initiated, we attend foreclosure court conferences on behalf of our clients. We defend defective foreclosure lawsuits. We deal with issues of predatory lending, defective mortgages and the failure of financial institutions to obtain the proper assignments and paperwork necessary to initiate litigation. We also update this foreclosure blog on a regular basis to keep our clients informed about the real estate industry in the United States. Call us for a free consultation at 1-800-344-6431, 516-561-6645 or 718-350-2802.

The Real Cost of Home Ownership

Individuals and families purchasing their first home usually ponder over how large a mortgage they can afford to pay. There are a variety of other costs that should be taken into consideration when purchasing a home. Homes require maintenance. Appliances break, roofs leak and there are numerous other types of maintenance problems homeowners must anticipate. These include landscaping, pest control, plumbing problems and the maintaining of the heating and air conditioning systems. These costs must be taken into consideration when purchasing a home.


Homes must be heated and in the summer they may need air conditioning. The price of fuel oil and gas have been going up for the past few years. You should obtain the expense records from the previous owner for the utilities including heating, gas, oil and electric before purchasing a new home. These costs should be built into your monthly budget.

Homeowners Insurance

It is necessary to maintain casualty insurance on your home. This would repay either you or the bank should your home be damaged in a fire or through other circumstances. Sometimes this expense is built right into the mortgage payment. If you’re paying this expense directly, you should take this into account when budgeting for a new home.

Home Improvements

When a car gets old, you either fix it or you purchase a new car. When you own a home, besides from maintaining it, sometimes it becomes necessary to make improvements to maintain your quality of life. Home improvements involve planning, time and money.

Emergency Fund

One never knows when an emergency will take place. In these situations, it’s important to have a nest egg to bide you over during an emergency.

New York Foreclosure Defense

If your home is in foreclosure, you need a foreclosure defense lawyer. Call us. This is what we do! We litigate numerous foreclosure defense issues including, but not limited to, defective foreclosure lawsuits, predatory lending, bad faith, defective mortgages, and other real estate related issues. We attend court conferences on behalf of our clients and we keep them up to date concerning the status of the foreclosure. We handle mortgage modifications for our clients and we deal with mortgage modification programs that fail to meet our clients needs. When appropriate, we also file Chapter 7 or Chapter 13 bankruptcies on behalf of our clients. If you have a mortgage related problem call us at 516-561-6645, 1-800-344-6431 or 718-350-2802.

Cities With High Foreclosure Rates

Cities With High Foreclosure RatesLas Vegas, Nevada and Phoenix, Arizona are running neck and neck for the title of having the highest foreclosure rates in the United States of America. Although it has been widely written about these two cities enormous foreclosure rates, there are numerous other small cities in America that have similar problems.

Albuquerque, New Mexico

Albuquerque is a city of approximately 500,000 people. They have a foreclosure rate of one in every forty-six homes. During 2010, their foreclosure rate increased by over 60%. Albuquerque was one of the fastest growing metropolitan areas in the continental United States. It has a warm climate and, for many years, it had a very favorable job market. Albuquerque has been devastated in recent years due to the falling economy.

Albuquerque is suffering from a high unemployment rate. More than 13% of all of construction jobs were lost in Albuquerque during 2010, pursuant to the Associated General Contractors of America. High lay-offs in the construction industry contributed to Albuquerque having a high foreclosure rate.

Savanna, Georgia

Savanna is a beautiful city. It is known for its beautiful old south architecture. The city has a population of approximately 350,000 people. Unfortunately, one in every forty homes is in foreclosure. This amounts to a home being in foreclosure on every three blocks in the city of Savanna. In 2010, Savanna’s foreclosure rate increased by 37%. Some homes in Savanna are now selling for less then $50,000. The cost of the raw materials to build these homes would be more then double this amount!

Tulsa, Oklahoma

Tulsa has a population of about a million people. One out of every fifty homes in Tulsa is in foreclosure. This amounted to a 37% increase during the 2010 calendar year. Although the unemployment rate in Tulsa has been below the national average for the past few years, the foreclosure rate has been increasingly high. Job losses in Tulsa increased by 38% in 2010.

Myrtle Beach, South Carolina

Myrtle Beach, South Carolina, is dependent on vacation home buyers. It is a vacation destination for the majority of the families who spend time there. In 2009, the unemployment rate was over 12% for this city. The unemployment rate dipped to 11.8% in 2010.

During 2010, there was an increase of approximately 45% in the amount of homes going into foreclosure. This is a small increase compared with the increase of 446% for foreclosures in 2009. The huge foreclosure increases in 2009 and 2010 is indicative of the fact that Myrtle Beach is a tourism dependent community. When Americans have financial difficulties, they have less discretionary funds to spend on vacation homes and tourism.

Foreclosure rates throughout the United States are causing pain in many communities. This will delay the economic recovery in the United States.

Stop Foreclosure In Its Tracks

There are legal defenses to foreclosure lawsuits. We litigate foreclosure lawsuits. We assist our clients with mortgage modifications. We attend foreclosure court conferences on behalf of our clients. We litigate defective mortgages, predatory lending issues and defective foreclosure lawsuits. We advise our clients as to whether Chapter 7 or Chapter 13 bankruptcies are the appropriate means to deal with their financial situations.

Read our foreclosure blog. It will help you understand the nature of the foreclosure crisis in the United States and the fact that there are things that can be done to keep you and your family in your home. Feel free to call our foreclosure defense and real estate attorneys at 516-561-6645, 1-800-344-6431 and 718-350-2802 for a free consultation. Call us now, our phones are answered 24/7.

Mortgage Modification Scams

There are companies advertising on the internet that they assist homeowners with mortgage modifications. Sometimes these companies are run by charlatans who are engaged in mortgage modification scams. These companies target the elderly, minority members, and individuals with bad credit.

Sometimes the mortgage scam companies request the mortgage holder to make their payments to them and not to their financial institution. They claim they will take care of the problem at their end. This is always a mistake. If you are going to pay your mortgage, pay it directly to your financial institution.

Another mortgage scam involves the submitting of an application to your mortgage company showing you have a higher income then you actually have. If you can’t afford the mortgage to begin with, you’ll not be able to make your mortgage payments. This will result in your home ending up in foreclosure. This is a route you should not start down.

Mortgage Modification ScamsInterest Only Mortgage Payments

Obtaining a mortgage that requires that you, for a period of time, only make interest payments is also not a wise choice. These type of loans sometimes have balloon payments. In a balloon payment situation, after a period of time you must make a lump sum payment or refinance. Under this type of scam the scammer will tell you that down the road things will be better and you’ll be able to refinance at a lower rate and obtain a better quality conventional mortgage. Don’t bet on it!

Mortgage Modification Attorneys

Under the appropriate circumstances, we assist clients in submitting mortgage modification applications. We also defend our clients in the event their homes go into foreclosure. We attend foreclosure court conferences on behalf of our clients. We litigate issues involving defective foreclosure lawsuits, bad faith on behalf of financial institutions, defective mortgages, predatory lending and other real estate related issues. We maintain a foreclosure blog which is updated regularly concerning various issues related to foreclosure, mortgage modification and real estate matters.

We review our client’s situations carefully and, when appropriate, we file either Chapter 7 or Chapter 13 bankruptcies on their behalf. Call us for a free consultation at 1-800-344-6431, 516-561-6645 or 718-350-2802.

Decimated Home Values

Decimated Home ValuesDuring the last three months of 2010, home values nationwide went down 2.6%. As home values have gone down, foreclosures have increased. The more homes foreclosed and brought onto the market, the greater the over-supply of inventory. In a supply and demand based market place, the greater the supply without a corresponding increase of demand will lead to a continual reduction in the value of homes in the United States.

Phoenix, Arizona: a Hot Spot of Foreclosures

It is estimated that as much as 70% of all of the homes in the Metropolitan Phoenix area are under water (worth less than the amount of mortgages attached to these homes). Las Vegas, Nevada, is also in a similar situation. Recent studies have shown it is less expensive in Las Vegas to buy than to rent a home.

Thirty Percent of the Homes in America are Underwater

Recent studies have shown that approximately one out of every four Americans has no equity in their home. This is an extremely sad state of affairs considering the ownership of a single family home in the past represented the greatest single asset for most American families.

Selling Homes For a Loss

The real estate website recently wrote that in December of 2010, more than 33.3% of all homes sold in the United States were sold at a loss!

There was a period of home stagnation due to the disclosure of “Robo Signing”, which was the name given to faulty bank procedures that rushed into foreclosing homes without the proper paperwork by the banks, and the execution of legal documents by bank officials without reading and examining them as to the truthfulness of their contents. In the fall of 2010, thousands of foreclosures were put on hold for the banks to investigate these problems and correct these deficiencies. Many of the banks have now dealt with these issues and thousands of homes that had their foreclosure stopped are now being aggressively pursued by the financial institutions.

Foreclosed homes are expected to flood the real estate market during the first half of 2011. This will lead to further reductions in home values in localities that are subject to high foreclosure rates. It is expected to be a buyer’s real estate market for the next several years!

Defense of Foreclosure Lawsuits

Law Offices of Schlissel DeCorpo defends foreclosure lawsuits. We aggressively litigate these matters and we appear in court for foreclosure court conferences on behalf of our clients. We submit numerous counterclaims and affirmative defenses to delay and possibly defeat foreclosure lawsuits. We deal with failed mortgage modification programs , defective foreclosure lawsuits, predatory lending issues and financial institutions inability to produce the necessary documents regarding their claims. Our law office has been handling real estate matters for more than three decades. Feel free to review our foreclosure blog, which is updated several times a week. Contact us for a consultation at 1-800-344-6431, 516-561-6645 or 718-350-2802.

President Obama will not be Successful in Slashing Mortgage Deductions for the Wealthy

Mortgage Deductions For The WealthyPresident Obama wants to limit two popular mortgage deductions utilized by wealthy taxpayers. Unfortunately, the President is meeting a tremendous amount of difficulty from entrenched special interest groups. President Obama has proposed that there be a curtailment of tax deductions for mortgage interest payments and charitable contributions from high-income earners.

President Obama’s proposal is that taxpayers in the 33% and 35% tax brackets will only be allowed to deduct their contributions and mortgage interest payments at a rate of 28%. This would affect taxpayers with incomes of $250,000 and up. It is estimated that this would bring in $321 billion dollars into the federal treasury over a period of ten years. This is not the first time reducing tax deductions for mortgage interest has been proposed. In the past, these proposals have been unsuccessful because of resistance from special interest groups.

Intense Lobbying by the Real Estate Industry

Real estate industry groups, as well as not-for-profit lobbying groups, are lobbying heavily in both the Senate and the House of Representatives against limiting tax deductions for mortgage payments and charitable contributions.

The National Association of Home Builders, through its chief executive Jeffrey Howard, has issued a statement that “this is an attack on the middle class.” Where the housing industry is concerned, capping deductions will have a further negative effect on the housing market. These tax deductions are an incentive for home ownership.

Tom Delaney, the head of the National Council of Non-profits, a network of charity organizations, stated, “we look for every opportunity to help policy makers understand the consequences of different proposals.” The National Council of Non-profits are against limiting these tax deductions. Their position is that limiting the charitable deductions will curtail donations to charities by large donors.

The fifty-four most generous donors in America in the year 2010 gave $3.3 billion dollars to charities. Charities are reliant on donations from wealthy individuals. Charities throughout the country strongly oppose any changes regarding mortgage deductions for individuals who make over $250,000 a year. Individual families in New York State that earn more than $250,000 a year are not wealthy. They are middle class!

Foreclosure Defense In New York

The Law Offices of Schlissel DeCorpo assists it’s clients in applying for mortgage modifications. In situations where the mortgage modifications program fail to approve clients applications, the law office represents them in foreclosure proceedings. Our attorneys attend foreclosure court conferences on behalf of our clients. They defend clients from defective foreclosure lawsuits, predatory lending issues, bad faith on behalf of financial institutions and all aspects of real estate litigation. Call for a free consultation at 516- 561-6645, 1-800-344-6431 or 718-350-2802.

Wells Fargo Faces Penalties in Foreclosure

Wells Fargo Faces Penalties In ForeclosureWells Fargo is currently being investigated by various governmental agencies with regard to illegal practices concerning mortgages and foreclosures. Wells Fargo has been accused of violating fair lending laws by the Security and Exchange Commission.

The company spokesman for Wells Fargo recently stated “with regard to the investigation into foreclosure practices, it is likely that one or more of the government enforcement actions against Wells Fargo will result in civil monetary penalties.” There are also more than half a dozen class action lawsuits pending against Wells Fargo on behalf of homeowners. These lawsuits claim that employees at Wells Fargo executed documents in foreclosure proceedings without having personal knowledge of the facts contained in these documents. The relief requested in the lawsuits against Wells Fargo asks for monitory damages, cancellation of mortgages and other penalties against the bank. Wells Fargo has indicated that they make be facing as much as $1.2 billion dollars in losses related to the pending litigation. This has caused the bank’s share price to go down.

New York Foreclosure Defense Attorney

If you are sued in a foreclosure proceeding, we can help you. The foreclosure defense lawyers at the Law Offices of Schlissel DeCorpo have been assisting homeowners and consumers regarding lawsuits involving financial institutions for more than twenty years. We prepare mortgage modification applications on behalf of our clients. We assist our clients in dealing with mortgage modification programs that fail to provide our clients with the appropriate relief.

We defend our clients in foreclosure proceedings. We defend defective foreclosure lawsuits, defective mortgage issues, predatory lending, and bad faith by financial institutions. We maintain a foreclosure blog to update our clients and the general public concerning issues involving the banking industry, mortgages and foreclosures.

We represent our clients in real estate related litigation. In the appropriate situations we also file Chapter 7 bankruptcies and Chapter 13 bankruptcies on behalf of our clients. If bankruptcies are filed, we help our clients reestablish credit at the end of the bankruptcy procedures. If you need an attorney to stop a foreclosure or help you out of debt feel free to call us. Our office numbers are 1-800-344-6431, 516-561-6645 and 718-350-2802.

Fannie Mae and Freddie Mac

Fannie Mae and Freddie Mac are the two federally-backed agencies that are responsible for the large majority of mortgages in the United States. Congress and the White House are now at odds as to how to deal with these financially ravished, federally-backed agencies.

Steps need to be taken to reform the mortgage business. There has to be greater consumer protection for prospective homeowners. Changes must be made regarding how the mortgage servicing industry deals with prospective homeowners. Mortgage companies must work with borrowers who unfortunately fall behind on their mortgage payments. Action must also be taken to deal with the bundling of loans for sale to investors. These loan bundling schemes were a significant part of the current mortgage crisis.

Democrats and Republicans Both Agree and Disagree

Democrats and Republicans both agree that Fannie Mae and Freddie Mac should not continue to exist. The problem is Democrats and Republicans can’t agree on what should replace them. Both the Democrats and Republicans want the private market place to assume the responsibility currently maintained by Freddie Mac and Fannie Mae. The actual setup of the new organizations is the subject of spirited debate between the two parties in Congress, as well as within the Obama Administration.

Fannie Mae And Freddie MacForeclosure Defense Lawyers in New York

If you have problems with a mortgage modification, we can help you. If you have difficulties dealing with mortgage modification programs that fail to approve your application, we are the lawyers for you. Should you be the subject of a foreclosure lawsuit, we are the lawyers for you. We litigate foreclosure proceedings. We provide foreclosure defense for our clients. We maintain a foreclosure blog to educate our clients and homeowners throughout the Metropolitan New York area with regard to their rights in foreclosure proceedings.

We litigate defective mortgages, predatory lending issues, defective foreclosure lawsuits, bad faith and other related real estate issues. We also assist our clients in filing Chapter 7 and Chapter 13 bankruptcies.

We meet with our clients, we review all of the financial documents related to their mortgage and loan modification and we set up a plan to help keep them in their homes. Feel free to call us at 1-800-344-6431, 516-561-6645 or 718-350-2802. We can help you!!

Mortgage Delinquencies Declined

Mortgage Delinquencies DeclinedDuring the past few months, there has been a reduction in the number of mortgages becoming delinquent. In the third quarter of 2010, the mortgage delinquency rate fell from 14.42% to 13.52%, according to the Mortgage Banker’s Association.

There are several explanations for a decline in mortgage delinquency rates. One explanation is that the economy is improving and this is having a positive effect on home owners ability to make mortgage payments.

Delinquencies and Foreclosures above Normal

The good news is that mortgage delinquency rates and the number of foreclosures is starting to go down. The bad news is that mortgage foreclosure rates and mortgage delinquencies are extremely high by historical standards.

It is thought that one of the reasons why foreclosure rates are starting to decline is that the new foreclosures in 2011 are not being caused by bad bank loans. Many of the foreclosures in 2009 and 2010 were caused by banking practices that provided mortgage loans to individuals who didn’t qualify. Most of the new foreclosures are related to prime loans. These loans are much harder for banks to modify than sub-prime loans. Prime loans are given out at low interest rates to start with.

The number of home owners obtaining mortgage modifications has also been decreasing. Twenty-four thousand homeowners throughout the United States obtained mortgage modifications in October of 2010. Hopefully, we will see a continuation of the reduction of mortgages that are delinquent and foreclosure rate will continue to decline.

Queens, Nassau and Suffolk County Mortgage Modification and Foreclosure Defense Lawyers

Our office can assist you with mortgage modifications. If you are sued in foreclosure, we will aggressively represent you and stop the foreclosure in its tracks.

We litigate bad faith bank practices, defective foreclosure lawsuits, predatory lending issues and fraudulent mortgages. We attend foreclosure conferences in court on behalf of our clients. We also deal with problems caused by mortgage modification programs that do not work. We will analyze your financial situation to see if filing Chapter 7 or Chapter 13 bankruptcy is the appropriate remedy for your difficulties.

Feel free to call us at 1-800-344-6431, 516-561-6645 or 718-350-2802 for a free consultation.

Higher Mortgage Rates and Stricter Mortgage Procedures likely for 2011

Low Mortgage Rates

In the year 2010, mortgage rates were extremely low. They were the lowest they have ever been in the past forty years. It is likely that there will be an upward trend of mortgage rates in the year 2011. As the economy starts to improve, consumer spending will increase and the public’s confidence in our economy will be a factor in the Federal Reserve raising interest rates.

Prospective Home Buyers

If you are a prospective home buyer, you will still be able to obtain an inexpensive mortgage in 2011. Although rates may go up, they are so incredibly low right now that even if they increase in 2011, by historical standards, the rates will still be very reasonable.

Prospective home owners should be aware that the procedures to obtain a new mortgage have been tightened in the past few years. Financial institutions are investigating the information provided by prospective home buyers. The financial institutions are conducting due diligence to a higher degree than existed before.

Mortgage ModificationMortgage Modification

Should you, a friend or a loved one require a mortgage modification, we can help. When homes go into foreclosure, we provide foreclosure defense for our clients. We attend foreclosure conferences. We litigate defective foreclosure lawsuits, bad faith on behalf of financial institutions and predatory lending practices. We also analyze our clients financial situations and advise them as to whether filing a Chapter 7 or Chapter 13 bankruptcy would be appropriate. Feel free to call us at 1-800-344-6431, 516-561-6645 or 718-350-2802 for a free consultation.

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

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