http://www.classifiedflyerads.comClassifiedFlyerAds.com Feedhttp://www.classifiedflyerads.com/images/headerlogo.gifhttp://www.classifiedflyerads.comMortgage Fraud: Facts and Figures Federal investigators have identified an increase in frauds and schemes in the real estate business.  These schemes victimize individuals and businesses, including  lowincome families lured into home loans they cannot afford, legitimate lenders saddled with overinflated mortgages, and honest real estate investors fleeced out of their investment dollars. Special agents with IRS Criminal Investigation are uniquely equipped to investigate these types of mortgage fraud and illegal real estate crimes because they are skilled financial investigators whose mission is to ‘follow the money.’ Some of the common real estate fraud schemes include: Property Flipping — A buyer pays a low price for property, and then resells it quickly for a much higher price. While this may be legal, providing false statements to the lender is not. Two Sets of Settlement Statements — One settlement statement is prepared and provided to the seller accurately reflecting the true selling price of the property. A second fraudulent statement is given to the lender showing a highly inflated purported selling price. The lender provides a loan in excess of the property value, and after the loans are settled, the proceeds are divided among the conspirators. Fraudulent Qualifications — Real estate agents assist buyers who would not otherwise qualify by fabricating their employment history or credit record. The income earned from these types of real estate fraud schemes is often laundered to hide the money from the government.  Money laundering is simply a process of trying to make illegally earned income appear to be legitimately earned.  IRS Criminal Investigation follows the money and collects evidence to prove applicable tax and/or money laundering violations.  Once they have obtained the evidence, IRS agents forward their investigation to the Department of Justice for criminal prosecution. If a criminal investigation is not warranted, the IRS can also take civil action.  Each year the IRS audits thousands of tax returns involving individuals and entities associated with the realestate business.   IRS Criminal Investigation Real Estate/Mortgage Fraud Statistics     FY 2009 FY 2008 FY 2007  Investigations Initiated 336 349 337  Prosecution Recommendations 250 263 217  Indictments/Informations 215 255 134  Convictions 184 136 130  Sentenced 135 104 147  Incarceration Rate 77.8% 82.7% 85.7%  Average Months to Serve 35 38 35 How to Interpret Data. Complex financial investigations may take several years to complete. For example, the data shown for sentenced investigations within a given fiscal year may represent investigations acutally initiated in a previous fiscal year. Incarceration includes confinement to federal prison, halfway house, home detention, or some combination Data Source: Criminal Investigation Management Information System   www.usa.gov http://www.classifiedflyerads.com/blog/Mortgage-Fraud-Facts-and-Figures/30899/post_details/4599/2010-03-09 09:09:375 Tips for Protecting your Home From Foreclosure   Don’t ignore your mortgage problem. If you are unable to pay–or haven’t paid–your mortgage, contact your lender or the company that collects your mortgage payment as soon as possible. Mortgage lenders want to work with you to resolve the problem, and you may have more options if you contact them early. Call the phone number on your monthly mortgage statement or payment coupon book. Explain your financial situation and offer to work with your lender to find the right payment solution for you. If your lender won’t talk with you, contact a housing counseling agency. You can find a list of counseling resources at NeighborWorks and on the U.S. Department of Housing and Urban Development’s (HUD) website or by calling (800) 5694287.   Do your homework before you talk to your lender or housing counselor. Find your original mortgage loan documents and review them. Review your income and budget. Gather information on your expenses, including food, utilities, car payment, insurance, cable, phone, and other bills. If you don’t feel comfortable talking to your lender, contact a housing or credit counseling agency. Counselors can help you examine your budget and determine the options available to you. They may also advise you about ways to work with your lender or offer to negotiate with your lender on your behalf.   Know your options. Some options provide shortterm solutions/help, while others provide longterm or permanent solutions. You may be able to work out a temporary plan for making up missed payments, or you may be able to modify the loan terms. Sometimes, the best option may be to sell the house. For information on different options, visit HUD’s website or Foreclosure Resources for Consumers for links to local resources.   Stick to your plan. Protect your credit score by making timely payments. Prioritize bills and pay those that are most necessary, such as your new mortgage payment. Consider cutting optional expenses such as eating out and premium cable TV services. If your situation changes and you can no longer meet your new payment schedule, call your lender or housing counselor immediately.   Beware of foreclosure rescue scams. Con artists take advantage of people who have fallen behind on their mortgage payments and who face foreclosure. These con artists may even call themselves “counselors.” Your mortgage lender or a legitimate housing counselor can best help you decide which option is best for you. For tips on spotting scam artists, visit the Federal Trade Commission’s website, Foreclosure Rescue Scams. Report suspicious schemes to your state and local consumer protection agencies, which you can find on the Consumer Action Website. Several options are available to you. Some options provide temporary solutions for shortterm problems, such as being one or two months behind in your mortgage due to illness. Other more permanent solutions address longterm financial difficulties, such as job layoffs or longterm unemployment. If you have an FHAapproved loan, special loan modification programs may be available to you–ask your lender about them. Unfortunately, in some cases, keeping your home may not be possible–options for handling that situation are available as well. Temporary solutions for shortterm financial problems: Reinstatement: Lenders are often willing to “reinstate” your loan if you make up the back payments in a lump sum by a specific date. A forbearance plan may accompany this option. Forbearance: Your lender may be able to provide a temporary reduction or suspension of your mortgage payments for a short period, such as 3 or 4 months. After this time, your lender will work with you to create a repayment plan for the loan. You may qualify for forbearance if you have experienced a reduction in income (for example, if you have become unemployed) or an increase in living expenses (for example, higher medical bills). You must provide information to your lender to show that you will be able to stick with the new payment plan. Repayment plan: Your lender may agree to a plan that includes your regular monthly payments plus a portion of the past due payments each month until your payments are caught up. Longterm solutions or adjustments to your loan: Loan modifications: Your lender may be willing to rewrite the terms of your original mortgage loan to address your financial situation. A loan modification is designed to make your monthly payments affordable. Changes to your loan may include extending the number of years to repay and changing the interest rate, including changing an adjustable rate to a fixed rate. You may have to pay a processing fee to obtain a loan modification. Partial claim: If your mortgage is insured by a private mortgage insurance firm, your lender might help you file a claim. Some insurers provide a onetime, interestfree loan to bring your account up to date. The interestfree loan is due when you refinance, pay off your mortgage, or when you sell the property. If keeping your home is not an option, you may want to consider these alternatives: Sale: Your lender will usually give you a specific amount of time to find a buyer and pay off the amount you owe on your mortgage. Your lender may require you to use a real estate professional to help you sell the property. Preforeclosure sale or short sale: If you can’t sell the property for the full amount of the loan, your lender may accept the amount you get for the selling price, even if it is less than the amount you owe. You may owe income taxes on the difference between the amount you owe and the amount you are able to pay back. Check with the Internal Revenue Service for tax information. Assumption: A qualified buyer may be allowed to assume (take over) your mortgage. Ask your lender whether this option is available to you. Deedinlieu of foreclosure: You may be able to “give back” your property to the lender, who then forgives the balance of your loan. Again, there may be income tax consequences, so check with the IRS. This option will not save your home, but it is less damaging to your credit rating. Some lenders impose certain restrictions on taking back property. For example, they may require that you try to sell your home at a fair market value for at least 90 days. www.federalreserve.gov http://www.classifiedflyerads.com/blog/5-Tips-for-Protecting-your-Home-From-Foreclosure/30899/post_details/4598/2010-03-09 08:46:34Choosing Between an Older Home and A New Build The ageold debate between purchasing a new home or an existing one is worth rehashing because when it comes down to it, both options have their benefits as well as their downfalls. The Argument for an Older Home: A Charming Setting With an older home comes an element of charm that you can’t easily recreate in newer homes. A mature canopy of trees and larger lots can be a selling point for those raising a family. What You See is What You Get When it comes to older neighborhoods, what you see is what you get. You know what to expect—the good and the bad. If you choose to build a home in an emerging residential development, you may have to deal with the hassle of frequent construction trucks, loud hammering and dusty conditions as your neighbors’ homes are built. While waiting for your home to be built, there’s also that uncertainty that you may end up with something a little less than ideal if construction doesn’t go as planned. Many also argue that homes aren’t built as well as they used to be. You be the judge. Historic Homes If you opt for a much older house, one that qualifies as a historic home, you may be able to receive a tax break. The Ohio Historic Preservation Tax Credit Program states that individuals rehabilitating historic properties can apply to receive 25 percent of the rehabilitation expenditures incurred during the rehabilitation process. This incentive is valid for up to 100 projects per year. The Argument for a New Build: Home Safety and Maintenance With a newer home comes a stricter code, which helps minimize household hazards. Asbestos, lead paint and other issues aren’t a concern in newer homes because new knowledge has surfaced about the dangers of these toxins. Customization When you build a new home, you typically have a say in the design and implementation of rooms from start to finish. Picking the countertops, carpeting and cabinetry are some of the calls you get to make when you’re creating the home of your dreams. In an older home, you’re required to work around the established build, and remodeling can be a cumbersome process. It’s also much easier to attain green certification for your home from the beginning. The American Family in 2008 New homes take into account the lifestyles of the modern American family—location of bedrooms, flow from one room to the next and so forth. Newer housing developments sometimes feature clubs with kids’ activities, swimming pools, fitness centers and playgrounds. Many parents like to see their kids learn to ride a bike in a culdesac, and these developments typically feature less traffic, residential streets and sidewalks. If you’re in the market for a new home, but not quite sure if you want an older home or a newer build, Gary May or visit RealLiving.com for more information. Posted By Real Living Real Estatehttp://www.classifiedflyerads.com/blog/Choosing-Between-an-Older-Home-and-A-New-Build/30899/post_details/4597/2010-03-09 08:42:03