On the surface, this sounds like an admirable plan: make the lenders and borrowers work together to prevent foreclosure and keep homeowners in their homes. But according to this real estate blog in Contra Costa, there are loopholes to this law, just like any other. Many lenders will doubtless try to maintain that they are exempt from the restrictions of the law for varying reasons. Another effect of the law, according to this real estate blogger in Sacramento, is that some short sales were pushed through quickly before the law took effect. The reasoning behind that was to recoup ANY funds possible before the moratorium made a quick foreclosure and resale impossible. The blogger wonders whether this new law will have a similar effect on other short sale situations.

Overall, though, the spirit of the law is good, and hopefully it will ease some of the pressure for troubled homeowners in California.

To those who now may be in a position to get the house of their dreams let me offer some education.

First off, the most popular method of mortgage foreclosure in Florida is judicial. This means the sale of the mortgaged property is under the supervision of a court. Proceeds then go first to satisfy the mortgage, second to other lien holders and, finally, the mortgagor/borrower if any proceeds are left. Like all other legal actions, all parties must be notified of the foreclosure. This could take six months or more from the time a property owner receives a notice of default until the property is sold at a public foreclosure auction sale. Please note that in order to keep costs down, you shouldn’t wait until the house becomes what is termed “Real Estate Owned” (REO) after the auction because the property will cost more than it would in preforeclosure. A property becomes REO when it remains the property of the owner of the mortgage. This can occur when the property was unable to attract reasonable auction bids, usually because the remaining mortgage balance is higher than the actual home value. Because of this, the owner/servicer will try to sell it through the standard real estate channels.

Purchasing directly from the bank is the most popular way to buy foreclosed homes because it is simpler and safer than other methods. There are several ways to find properties, but checking the county courthouse or going through the newspapers is a good start. Listing services and Realtors can also be very useful, depending on your level of expertise in this area. There are state-specific laws that govern foreclosures, and for Florida, you can find out more information by calling 1-800-342-1827.

Foreclosures can be a rite of passage, but education and preparation are the best ways to get the maximum possible benefit from this transition.

by Dan Padgug, owner of Padgug and Associates and ManageYourMortgage.org contributor

Funny thing happened when I paid my mortgage payment on Wednesday.
I paid by phone, because i was unable to login to the website as I normally do. This month has bees financially difficult for us and our payment was 23 days late.

I expected a minimal late fee, and was planning to pay it.  I had recently received a notice in the mail regarding the lateness of the account with the breakdown of various fees and charges I was incurring by being late.

The late fee on my statement was $18.66.

The verbal late charge quoted from the customer service representative was $19.00.
When I pointed out the difference, he immediately launched into what seemed like a scripted apology.
“Oh, I’m actually testing a new system today, it has apparently rounded up on the late fee, which it shouldn’t do, I will report this to a supervisor. This shows you pay close attention to detail in your personal accounting, thank you for bringing this to our attention.”

I immediately apologized (I don’t know why) for nickel and diming Citimortgage, but also pointed out that if they got an extra .40 cents on each customer then they probably wouldn’t have anymore financial difficulties.

Think about that. An extra 40 cents on every customer that’s late on a payment right now.
For some reason a little red alarm starting blinking in my brain.  Not good.

Submitted by MYM User..no official response has been solicited

The celebrity news Web site TMZ.com reports that in addition to the millions it pays to sponsor the tournament, the Northern Trust spent lavish amounts on parties and concerts surrounding the event.

TMZ reports hundreds of clients and employees were flown to Los Angeles and put up at some of the fanciest hotels, then wined and dined for several days with concerts by such high-priced talent as Sheryl Crow, Earth Wind & Fire and the band, Chicago.

A spokesman for Northern Trust tells Newsradio 780 the company never requested bailout money, that it agreed to accept it only at the government’s request. The spokesman also says Northern Trust entered into its 5-year contract to sponsor the tournament a full year before there was any bank bailout plan. He says the event is an important marketing tool to attract new clients.

The two main thrusts of the program are to help homeowners modify mortgages that they cannot presently keep on top of, and to help those who are unable to refinance.