Some cases also show that mortgages that are supposedly finished due to refinancing are coming back and haunting homeowners. Others who paid in full or through a bankruptcy program are also becoming victims. Worse, homeowners who never had a mortgage are also falling prey. Homeowners claim that repo men are going to their work and harassing them in front of co-workers. They even send threatening letters and phone calls endlessly. One situation reveals that a particular homeowner, after visiting her accountant, learned that she was sued for a foreclosed house that she sold many years ago. The bank said that she had a delinquent account with them. The truth later revealed that fault was with the bank’s encoding error.  The amount of the money allegedly owed by the homeowner amounted to $1.00.

These situations regarding mortgages and foreclosure have made the banks the current subject of many investigations, complaints and lawsuits. With regards to this, the recording systems of mortgage lenders and banks should be improved to avoid these circumstances. Many people are having to go to court even if there is really no case in the first place. Several U.S. Attorney’s General are working with the federal government, and an investigation is still necessary to gather more facts and information.

While these realities are happening in the US and also in other areas, it is important that you fight for your rights as a citizen. Especially if you believe that you have not failed in your responsibilities and following laws and policies.

With all the options and amount of information on different foreclosure and mortgage relief programs that pop up all the time, it’s hard to know what to do or where to turn. Believe it or not, from my limited research, there are well over 250 “mortgage programs” for either loan modification or foreclosure relief being advertised or offered. Some are government related, some are through law firms and others through non-profits groups or consumer advocate groups or agencies.

Which ones are legit? What is the best one for your situation? Who can you talk to that can help you figure out what to do? All legitimate questions that any smart person would ask.

First of all, do not call me! I am not the right person to talk to about this. However, I feel good recommending you to a website called www.relieveyourdebt.com. There you can read about the different scams other people have had the pleasure of going through as well as the 2 to 3 programs that are recommended for people who need some type of mortgage relief.

I have only listened in on one of the webinars and Mr. Doug Johnson, the debt relief advocate who is vetting these programs and helping people get exposed to them, recommends to every person that they listen to ALL the webinars, thus all the options for their given situation. Once you have been exposed to the programs you have the best and latest information to make a decision to see if one of these programs is for you or not.

I know Doug is not an attorney because I asked him. He’s just a guy who has seen the damage done by banks and financial institutions over the years and has decided to do the research and help people. You can read more about Doug here.

For those that know me personally, you know I don’t a have problem thinking out of the box and these programs are out of the box programs. Sometimes, it’s just what you have to do.

When applying for a home loan, it is extremely important to avoid pitfalls and to collect the necessary information you need in order to choose a lender that provides advantageous terms&conditions. First of all, avoid signing a contract with a loaner that doesn’t provide clarity of terms, as it is crucial to perfectly understand what you’re signing for and have everything explained before signing the contract. Any ambiguous or unclear terms might is likely to indicate that the loaner is not trustworthy and reliable, so you should look somewhere else.

Not getting a loan pre-approval is another pitfall you should avoid when applying for a home loan. You should know for sure if you are eligible for the loan you plan to obtain, given the multitude of factors and criteria the approval is based on. Don’t get all too excited of having found the house of your dreams but no lender to give you the money you need because you have a bad credit score or bankruptcies on your credit history. Make sure you are not wasting time and money looking for a house you’ll not be able to pay for.

Also, pay close attention to the interest rate on your loan. Find out what you will be charged after the initial rate period expires. Usually, this happens after maximum three years, after which you will be charged the prime rate at that specific moment, plus additional fees. It should be all in the contract you’re signing, so make sure you avoid these pitfalls when applying for a home loan.

This particular real estate scam is not new. In fact, it was a couple of years ago it was talked about quite a lot on the news. It goes something like this; the bad guy scours the MLS to find a very nice property.  They scrape the listing for pictures and information then go to websites like Craigslist.org and HotPads.com to post the information they pulled from property that is for sale on the MLS and post it as a rental property in the area.

With these types of scams, the “landlord” makes some kind of excuse for being unavailable; traveling, already moved, etc., as well as being unreachable by phone; overseas, on a cruise, etc. So they are only available by email. which is a huge RED FLAG!

After several exchanges, the victims are instructed to send a deposit and first month’s rent (that’s a lot of money for most of these homes) and once received they will instruct the person to set up a time with the realtor to see the inside of the home and get the keys. The problem is that the realtor has the property listed with the real owner and can only inform the victim that they have been scammed out of a lot of money.

So, how do you protect yourself? Just follow the following rules and you should be able to detect the bad guys from those that are legitimate.

• Don’t respond to a listing that does not have a local phone number and address.
• Insist on meeting the landlord or property management company in person or look up the property on MLS and call the listing Realtor.
• Never send money to anyone via the mail or hand over money in person without a signed contract in hand.
• Stay away from properties that are renting way below market value. (Check with a Realtor as they can help you determine this) and remember: If it’s too good to be true, it most likely is.

Pass this information along to everyone you know. This way we can make as many people as possible aware of this scam and put a stop to it.

Then credit is pulled and they are shocked to find late pays on loans they have never heard of that are in their name. Most tend to be student loans that parents have co-signed and defaulted on but I’ve seen car and credit cards in the kids names that the children have either never known about or thought they were being paid by parents on time and in good standing.

Even the parents have been shocked a time or two because they thought the debt was rolled into a bankruptcy or debt reduction plan. The truth is many student loans cannot be included in bankruptcy procedures and most debts will revert to the other name holder at some point.

What this means for the person or persons trying to purchase their first home is that they can’t qualify due to debt ratios, late pays or default and can put them back for years financially. While this is normally seen in families, I have also seen it in past roommates and friends that have tried to help or helped and have gotten burned.

It’s extremely important that if you need a cosigner or have been asked to co-sign any type of loan, be aware of the downfalls to your own credit that can take place if you or the other party ever defaults. Starting from zero is a lot easier than starting in the negative and could take years to recover. No one wants this to happen so make these choices carefully.

There are routine fees associated with any home purchase. Lender feeds and third party fees (inspection, attorney, title companies) can add up and if you’re not prepared they can be quite a surprise. Some homebuyers ask the seller to pay for the closing costs and include this in their offer. Sellers who are eager to close the deal may be more willing to pay at least some of the closing costs. It may also be helpful to get a Good Faith Estimate from your lender that includes all the costs associated with your home purchase, including inspector feeds and appraisal fees. If possible, negotiate with several different lenders to find the best deal, and the most upfront pricing. Feel comfortable with every step of the closing process, and don’t let closing costs take you by surprise.

Speak with your mortgage lender and discuss your finances openly. Now is not the time to stretch or exaggerate your earnings. Instead, work with your lender to get approved for a mortgage you can actually afford. If you are not honest about your finances, and you are approved for a mortgage that you cannot necessarily afford there is not feasible way you can pay your mortgage bill, utilities, and other necessary home costs. This will inevitably create a situation where you become house poor, and your finances will be drained into your house, leaving you without much else. Avoid this, and the potential of foreclosure by doing your research, organizing your finances and approving yourself for a mortgage that you and your family can reasonably afford.

Refinancing is smart when interest rates are low, because this is the time when you are likely to get the best deal. Beyond this, an adjustable rate mortgage will allow your mortgage rates to change with current trends – which can be to your benefit. If you have a fixed rate mortgage, you can refinance to lock in a great rate that won’t change no matter the real estate climate. If your specific financial situation has increasing debt, you can refinance your home in order to get a handle on your debt. This is a realistic solution for many people who experience difficult financial times throughout a specific time of the year, or who may be between jobs. There are so many reasons to refinance, and depending on the time and your specific situation, the best time (and best rate) could be waiting for you.

If you don’t have at least 20% of the price of the home saved for a down payment, you’re most likely not ready to purchase a home. Many people are under the impression that mortgage payments are less than most rent payments, and so they can obviously afford to purchase a house. Yet, so many first-time home buyers forget that they have to pay for all utilities and are responsible for any repairs that need to be done on the home (emergency and non-emergency). There are many additional taxes that need to be paid when you own a home as well. Because these are often oversights for first-time home shoppers, many people purchase homes they can’t afford, only to become house poor. Be sure you have your finances in order before you purchase a home to ensure your home buying experience is a positive one.

The federal housing tax credit was worth up to $8,000 for first time homebuyers. For repeat homebuyers, the tax credit was worth $6,500. The tax credit has since expired, but if you filed for the extension before May 1, 2010 you may qualify for an extension lasting one year. Also, homebuyers whose homes were in contract by April 30, 2010, had until September 30, 2010 to complete the sale of their home in order to receive the federal housing tax credit. Those in the military have been granted further extensions for this housing tax credit, as long as the home is closed by June 30, 2011. If you believe you and your family are entitled to the federal housing tax credit, wish to file for an extension, or would like to learn more about the tax credit visit FederalHousingTaxCredit.com.