One presidential candidate has been proposing government intervention in the mortgage crisis consistently while the other has changed his position recently. This speech’s purpose is to let everyone know about the details encircling each candidates plan thus empowering the voter with the right information to judge their candidates.

The audience will be composed of an equal mixture of men and women. Most of them will be between the ages of twenty two to forty five years. It is likely that the audience already knows about the mortgage crisis. Furthermore, it is likely that the audience will already be familiar with the overall solutions for each of the presidential candidates i.e. McCain and Obama; however, some of them may not be familiar with the differences between the two presidential candidates. It is likely that each member of the audience may be biased towards their favored presidential candidate and may not know the faults inherent in their presidential candidate’s solutions. Also, it is likely that they may not know the advantages in an opponent’s proposal.

The question of mortgage foreclosure has been addressed by this presidential candidate under two scenarios. The first was before the month of September 2008 when Wall Street’s performance indices dropped dramatically and the second was after that occurrence. (Kaopp, 2008)

Before the Wall Street down turn, Mc Cain believed that the best solution to this problem lay in the hands of the mortgage lenders themselves. He added that lenders should proceed to lend only to persons who were capable of repaying. This was an issue that caused lot of friction between McCain and his opponent since the latter candidate accused McCain of being unrealistic. According to Mc Cain, no lender should be assisted by the government even if they were large banks or small lenders. This presidential candidate claimed that assistance given by the government should only be a short term measure since long term arrangements would encourage irresponsible lenders to continue with their practice while at the same time punishing persons who had played cautiously. Mc Cain strongly affirms that such firms exercised bad judgment and should thus be left to bear the consequences of their actions. This assertion was found to be wanting after the 14th September crisis thus forcing McCain to change his stance on the matter after realizing that he had been wrong.

The other aspect about Mc Cain’s solution to the mortgage crisis is increased transparency during the process of lending. He believes that most firms allow their representatives to conduct business on their behalf without clarifying the procedures which those representatives used in the process. He believes that this creates a lot of room for dishonesty and has thus caused the problems that Americans are now seeing.

Mc Cain also proposed that mortgage firms need to have greater capital reserves than they do currently. He asserts that the reason why most mortgage consumers are faced with foreclosure is that lending firms proceed to provide them with finances even when they do not have sufficient funds to tackle the problem if the consumer cannot payback. Consequently, lenders are left with no alternative in such a scenario. They may resort to drastic measures such as cutting down on production or filing for bankruptcy. ( Bedard, 2008)

]]>

Mc Cain also affirms that it is necessary to back up the Federal Housing Administration which will assist in the process of changing their mortgage scheme from subprime to traditional mortgages. In close relation with this is the move to support what president Bush had instituted i.e. halting foreclosure for some time. He believes that interest rates for sub prime mortgages should not be increased for a period of five years.

It should be noted that McCain has not given any direct regulatory solutions related to mortgage foreclosure. He however believes that the regulations surrounding capital collection should be eliminated so as to create some sort of leveling ground for mortgage lenders.

After September fourteenth. McCain changed his stand on the crisis claiming that there was a need for the government to intervene in the situation and institute tighter controls.

The major difference between what Obama proposed and what Mc Cain proposed before September was the fact that Obama supported government involvement in the mortgage problem. He asserted that home owners can be assisted by changing the nature of their loans in line with certain regulations.  Furthermore, Obama believes that the country should institute lending reform such that borrowers can access financial assistance. (International Herald Tribune, 2008)

The Democratic presidential candidate also believes that foreclosure should be prevented by creating a fund known as the fore closure prevention fund. The latter would have a ten billion package available to borrowers who may be at the highest risk of facing foreclosures. He explained that the sum needed for this fund would be raised by penalizing lenders who had engaged in irregular or fraudulent acts.

Besides the latter, the Democrat believed that home owners should be given the alternative of a mortgagee related credit in instances where they choose not to utilize deduction in their income taxes. He believed that this would be possible by giving homeowners from low income areas a chance of getting five hundred in tax savings annually. The scheme would benefit close to ten million citizens who currently fall in the latter mentioned category.

Obama suggested that there ought to be an institution of certain mechanisms that would heighten transparency in lending institutions. In this scheme, Obama claimed that a rating system should be introduced for all types of mortgage products. By doing this, then consumers would know about hidden interest rates, terms, obligations or costs that could possibly lead to foreclosures or bad debts. This would prevent occurrence of the latter in the future

It should be noted that Obama’s proposals are based upon the Stop fraud Act. He introduced this concept at the beginning of the year in order to institute transparency. This was not something that he brought out at the beginning of the September crisis. However, it should be noted that most of his proposals have changed as the year has progressed.

Obama believes that the mortgage crisis has been brought on by lack of regulation in the sector. He asserts that if the problem was eradicated in the future, then lenders should not be left to ‘run their own show’. According to this presidential candidate US economic fundamentals were not strong as his opponent McCain had repeatedly suggested. It seems that the US public strongly agrees with Obama’s opinions because before September 14th, Obama’s ratings were neck to neck with McCain’s (as reported by Gallop polls). However, after Walls street’s crisis, Obama’s ratings increased to fifty percent while Mc Cain’s rating declined to forty four percent. Obama’s position also seemed to indicate the fact that it was adhering to economic fundamentals. During the September fourteenth week and subsequent days, the New York stock index drastically reduced. However, after the introduction of a multi billion dollar financial bail out by the government, the NYS index rose sharply. The latter intervention strategies had been supported by Obama long before the election. (Smith, 2008)

Obama has also lashed out at his opponent for his solutions to the mortgagee crisis by accusing him of ‘burying his head in the sand’. Obama believes that McCain’s response to the crisis illustrates just how much the Republican had lost his way. This was after McCain had asserted that he would appoint a commission to look into the September fourteenth issue. Obama believed that that was an escapist view point. Obama also attacked McCain’s’ blame game on the crisis since the latter had claimed that one of the investment banks that received government compensation had contributed substantial amount to Obama’s campaigns prior to the September crisis.

The mortgage situation in the country has worsened and everyone is looking for a way of making their presidential platform appear solid. Mc Cain who opposed regulation now supports it and Obama who had been supported by one of the mortgage companies has thrown back the accusations to McCain. The truth of the matter is that both candidates have made wrong and right decisions about mortgage foreclosures and at the end of the day, the voter ought to decide which candidate committed lesser evils in this policy.

Bedard, M. (2008): Fore Closure Prize fighters: Obama vs. McCain, retrieved from http://www.loanworkout.org/ accessed on 24th Sept 2008

International Herald Tribune (2008): McCain and Obama trade charges on financial crisis, The Associated Press, 21st September

Kaopp, B. (2008): Obama Accuses McCain of passing the buck on eth economic crisis, the Associated Press, September 16th

Smith, B. (2008): Obama: Panicked McCain’s solution is to blame me for it, retrieved from http://www.politico.com/ accessed on 24th Sept 2008

Original Post: How To Stop Foreclosure

The Solutions For Each Presidential Candidate On The Mortgage Foreclosure

The after effects of a bank mortgage foreclosure are a real bad sequence of things that one might face. It’s truly a distressing feel to lose your own home. Some times it may assist in commencing an all new life.

It is advised that you follow the bank regulation really close so as to get a clear knowledge on the procedures involving bank mortgage foreclosure that might trouble you.

Take it seriously

Some take this bank mortgage foreclosure issue lightly. It’s not good to be so. Take this seriously. Don’t ignore it. Thousands of house owners all over the world are getting affected by this bank mortgage foreclosure issue.

It’s really a sad sight to see your own house kept for sale and some third person gets the deal for a cheaper cost.  This process happens in a very short notice of time. Sometimes you don’t even will get time to react.

You might feel like the whole world turning against you. You might have the feel of awaiting a darker and terrifying future. The causes for bank mortgage foreclosure are many. Some of them include the property tax value getting high, increase in interest rates, divorce or due to decline of the value of property.

Without a doubt, bank mortgage foreclosure would frequently drive you into beginning life entirely again and this isn’t forever comfortable to accomplish.

A great alteration in living is indeed really unacceptable and the painful sensation that you’ll experience while you lose the house to a foreclosure would actually bring your self-confidence down to exceedingly small levels.

Nevertheless, just in case you’re just a couple of defrayals trailing on your mortgage you had better attempt and renegotiate for dearer payment price with the bank authorities or financial organization.

No one welcomes bank mortgage. There is loss of precious money both for bank and the customer. The person who gets profit is the one who buys the foreclosure.

Most of the times, the bank would also try not to go for foreclosure. They might extend the possible help that are possible. If nothing turn out well then it’s your responsibility to go for that extra income that will save your property from mortgage.

In case of bank mortgage foreclosure, the sufferer might feel that the world is falling on their head. This all happens when you fail to pay the monthly mortgage interests on time. There are also various reasons in addition.

Don’t feel to be at the end of the world. All you have to do is to talk with the bank officials in this regard. Explain them your financial position. Let them know your stand clearly.

Talk about negotiation of the monthly defrayals. Come to a conclusion that is favourable for both the parties that is you and the bank.

excerpts from Capitol TV April 12, 2011 RELATING TO MORTGAGE FORECLOSURES. Report Title: Mortgage Foreclosures Description: Establishes a temporary mortgage foreclosure dispute resolution program. Implements recommendations of the mortgage foreclosure task force relating to conversion from nonjudicial to judicial foreclosure. Strengthens laws regarding mortgage servicers. Repeals the old nonjudicial foreclosure process. Strengthens and clarifies the new nonjudicial foreclosure process. Effective July 1, 2050. (SB651 HD2) Companion:

Original Post: How To Stop Foreclosure

How To Stop Bank Mortgage Foreclosure

Are you one of the millions of Americans under the threat of foreclosure? Mortgage foreclosure appraisal is one thing you might consider to look into as leverage. One of your options before you go into foreclosure is to get a mortgage refinancing and avoid or prevent foreclosure on your property or home. And when you are in the process of mortgage refinancing, the lender may require you to get an appraisal or mortgage foreclosure appraisal before getting your application approved.

It is very important to have a mortgage foreclosure appraisal before you get into the process of foreclosing your property or home. The appraisal is traditionally required by the financial institution or the lender. This method can give the lender or mortgage company leverage over the homeowner or the one foreclosing the property.

This appraisal is needed when you foreclose or try to refinance your mortgage. But if do the appraisal yourself, you will have the chance or opportunity to use the same appraisal deeded to you, and go shopping for another lender or financial institution who can give you a better offer.

Mortgage foreclosures are a scary thing for anybody. But there are things you need to do in order to avoid more problems. Like, do a realistic assessment of your situation. Ask yourself the question; is my financial problem only a temporary one? If it is temporary, then call your lender and ask for forbearance or a repayment plan, the lender might be willing to offer you this plans.

And always pay attention to your mails and phone calls from your lender. Avoiding those calls, mails and emails do not make your problem go away. In fact it will worsen your problem.

Because you have the mortgage foreclosure appraisal with you, assessing the value of your property is a lot easier and you can make a more informed decision on what to do next. You may also have the option of avoiding foreclosure, like selling it before the lender will foreclose your property. Refinancing is another option for you if you want to avoid foreclosure on your home. But beware of second mortgage that is high risk as it may cause your harm than good. Bear in mind that if you have an option of refinancing or taking a second mortgage, your lender will let you know that because they have vested interest in your mortgage.

Armed with the mortgage foreclosure appraisal in your hand, and knowing the dos and donts of foreclosure, you will undoubtedly make best decision on how to deal with your mortgage.

Original Post: How To Stop Foreclosure

Mortgage Foreclosure Appraisal: What You Need Before You Start

There are many things that you cannot control in your foreclosure process but the key to being able to stop mortgage foreclosure is to focus on what you can control instead of what you cannot. Part of the key here is understanding what is in your control and what is not.

What You Cannot Control
You cannot change who your mortgage company is. You are dealing with who you are dealing with and no amount of anger is going to change that. You will have to deal with your mortgage company in order to stop mortgage foreclosure and you will have to find a way to work with who you have.

You cannot change what the foreclosure timelines are for your state. Much of the timing of your foreclosure is dictated by the laws that govern foreclosure in your state. Being able to stop mortgage foreclosure means finding a way to work within those timelines. Some states have short timelines, others have long ones. Come to terms with what the timelines are for your state and find a way to work within them.

You cannot change the fact that you are currently in foreclosure. Many people try to deny that foreclosure is happening. Accept that it is happening. You can stop mortgage foreclosure on your home but you need to recognize that you are in foreclosure.

What You Can Control
You can control how you work with your mortgage company. You can decide to ignore them or you can actively work with them. The only way I was able to stop mortgage foreclosure on my own home was by actively tracking down someone at my mortgage company who was willing to help me. You have to be persistent in calling them and in communicating with them. But avoid getting angry at the person at the other end of the line. It is not their fault that you are in foreclosure and they simply have a job to do. Recognize that and you will be able to get much further with them.

You can control how you react to being in foreclosure. You have a choice. You can get depressed or angry or you can decide to be calm and confident. The choice is yours. Is it easy to control your emotions in this way while you are in the middle of foreclosure? Of course not and I know that I was not always calm and in control of my emotions. But I can tell you this, I got much further with my mortgage companies when I was calm and rational. If you are going to stop mortgage foreclosure, you will need to be able to calmly and rationally look at your situation and solutions to it.

You can control whether or not you give up. The moment that you decide that there is nothing you can do to stop mortgage foreclosure, you have lost. Be always actively looking for solutions. Spend time every day working on ways to stop mortgage foreclosure and educating yourself about foreclosure. The more you look for a solution and believe that one is available to you, the quicker a solution will present itself. The solution to your problem is not going to come smack you on the face, you have to go out and actively look for it.

Original Post: How To Stop Foreclosure

Focus on What You Can Control to Stop Mortgage Foreclosure

There’s no doubt mortgage foreclosure is at the forefront of economic concerns. Every news outlet predicts a gloomy outlook. Realtors and mortgage lenders are feeling the financial wreckage that has ensued from subprime lending and unprecedented unemployment. Even with economic improvements, mortgage financiers predict nearly 4 million Americans will receive foreclosure notices by the end of 2010.

Although mortgage foreclosure is a serious problem, options still exist to help homeowners avoid losing their home or at least minimize the financial impacts associated with bank repossession of their property.

Lenders offer an array of foreclosure options including: mortgage forbearance, loan modification, mortgage refinance, real estate short sales, and deed in lieu of foreclosure. Each offers advantages and disadvantages, so borrowers should take time to investigate each available option and weigh the financial consequences.

The Obama Administration established the Making Home Affordable program which offers homeowners the option of entering into a loan modification or mortgage refinance. Unfortunately, this government sponsored program is only offered to borrowers who are current on their mortgage note and have not been delinquent by more than thirty days during the previous twelve months.

Loan modifications can be helpful for borrowers who endured temporary financial setbacks but are now able to maintain future mortgage payments. Lenders can offer various loan modification options to help borrowers cure mortgage arrears. The most common strategy is to temporarily reduce the rate of interest to lower payments. Some lenders allow borrowers to provide partial payments for a set period of time and roll the remaining outstanding balance to the end of the loan.

With mortgage refinance, homeowners must apply for a new mortgage loan which pays off their existing mortgage. Borrowers with poor credit may not qualify for mortgage refinance due to tightened credit criteria. Homeowners in need of bad credit lender loan mortgage should first apply for Making Home Affordable refinancing.

Mortgage forbearance can be a good foreclosure prevention option for borrowers who have become delinquent on their home loan but have overcome financial challenges. Mortgage forbearance is typically reserved for borrowers who can cure mortgage arrears within a short period of time.

It is important to note that borrowers are required to submit their regular home loan payment along with additional funds which are contributed to past due amounts. When forbearance agreements are active, lenders are prohibited from commencing with foreclosure action as long as borrowers adhere to the contract. Mortgage forbearance plans typically extend for three to six months.

In rare instances, banks will grant short sale approval to borrowers who are financially insolvent. Using real estate short sales, lenders agree to accept less than the full loan balance in exchange for a quick sale of the property.

Short sales are complicated and usually require the assistance of a real estate attorney or short sale specialist. At present, lenders accept less than 20-percent of short sale requests. Working with a short sale professional can improve chances of approval ten-fold.

Borrowers who do not qualify for any of the aforementioned foreclosure alternatives might be able to obtain a deed in lieu of foreclosure. Using deed in lieu contracts, borrowers must give their house back to the lender and vacate the premises. Borrowers entering into deed in lieu agreements should work with a foreclosure lawyer to ensure they are not responsible for monetary deficiency between the loan balance and sale price.

One trusted source for learning about foreclosure prevention options is the Department of Housing and Urban Development. HUD offers low- or no-cost housing counseling to help borrowers determine which strategy is best suited for their needs. Details of foreclosure programs and housing counseling services are presented at HUD.gov.

Mortgage Industry Bristles at ‘Robin Hood’ Foreclosure Theories
The mortgage industry is casting aside concern that its foreclosure practices are rife with unfixable errors, even as executives acknowledge inappropriate practices such as robo-signing, officials said at a conference.
Read more on Bloomberg

Original Post: How To Stop Foreclosure

Strategies to Prevent Mortgage Foreclosure

When that jump happened, many people saw their payments rise so much they couldnt believe it. Sometimes, the payments more than doubled. When that happened, and they could no longer afford their payments, they found a note on their door saying that if they didnt pay within a certain amount of time, they would face mortgage foreclosure. A mortgage foreclosure is when you are forced to leave your home. Your home is then put up for resale or it is auctioned. You see, the bank or the lender would rather have someone else in the home who is able to make payments than to have you live there for free. They dont care who lives there, as long as whoever does pays their mortgage.

Protect Yourself

To avoid situations like these when you sign for a new home, make sure you read the fine print. If you know your payments are going to jump up, youll be able to plan for such an increase. If you budge accordingly, youll always be on time with your payments and youll never have to face a mortgage foreclosure. So get into the habit of always reading the fine print on everything you sign, whether its for a new house or for a new car. Everything that you finance can suddenly jump up in price if the fine print says your interest rates are going to increase and thats what happens with mortgage foreclosures all the time. People find out they cant make their payments and the next thing they know, theyre homeless. Dont let this happen to you. Be a smart consumer and always make your payments on time so that you never fall victim to a mortgage foreclosure.

Original Post: How To Stop Foreclosure

Subprime Mortgage Foreclosures: Read The Fine Print

Original Post: How To Stop Foreclosure

The Honest Mans Guide To Mortgage Foreclosure Solutions