Scottish bank charge cases: amended pleadings

If you have a small claims action seeking a refund of unfair bank charges sisted at the sheriff court then chances are it will be dismissed unless you amend the basis of your claim, in light of the Supreme Court's decision in OFT v. Abbey National plc and others [2009] UKSC 6.

MoneySavingExpert.com have produced a detailed guide on bank charges here. Disclaimer: If you decide to amend, and your case is before a sheriff court in Scotland, GLC is providing some example court documents - however, please note these are illustrative and are used at your own risk; also please bear in mind you must amend these to suit your personal circumstances, and you should obtain independent legal advice before using same.

In order to amend a small claims Statement of Claim an 'Incidental Application' must be submitted to the court; if you are a party litigant (i.e. without a solicitor) the sheriff clerk will help you serve this. No court dues are payable to amend. You can attach your proposed Amended Statement of Claim to the Incidental Application, so that all of this is served on the bank.

> Example AMENDED STATEMENT OF CLAIM
> Example INCIDENTAL APPLICATION

Can I use the new CCA unfair relationship test for past charges?
Sections 140A and B of the Consumer Credit Act (CCA) came into force in April 2007. In summary, you won't be able to use the CCA for charges before 6 April 2007 if your account became a 'completed agreement' before 6 April 2007 or between 6 April 2007 and 5 April 2008. In other words if you were still in unauthorised overdraft, incurring charges or owing money to the bank, before 6 April 2007 and after 5 April 2008 then you should be fine (and you should be able to go back as far as you like). These transitional rules come from para 14 et seq., schedule 3 of the Consumer Credit Act 2006.

What happens next?
Once the Incidental Application and Amended Statement of Claim are served on the bank, the case will then call at the date and time allocated to you by the sheriff clerk. You must appear (or be represented in court) at this time in order to 'move' the application i.e. to ask the sheriff to grant the things you are asking the court to do in the Incidental Application.

What am I asking the court to do?
You need to ask the court to allow you to amend the Statement of Claim (as proposed in your Amended Statement of Claim)and the 'crave' (if you want to ask the court to prohibit future charges), ordain the defenders to lodge defences/amended defences, and to fix a diet of proof (an evidential hearing).

Can the bank object to my amendments?
Yes, the bank can object. However, it is entirely a matter of discretion on the part of the sheriff whether to allow you to amend. You would want to point out that these changes have been made necessary because of the Supreme Court's decision in the OFT test case, and this requires you to refine the regulation 5, UTCCR case. You can note that the President of the Supreme Court, Lord Phillips, made it clear that “it remained open to question whether bank charges were fair” in relation to regulation 5(1) of the UTCCR (para 80 of the Supreme Court’s judgment). And that the insertion of a CCA case supplements your case; so it is reasonable to amend. The relevant rule of court which is important here is SmCR 12.1, which provides as follows:

12.1. — (1) The sheriff may, on the incidental application of a party allow amendment of the summons, form of response or any counterclaim, and adjust the note of disputed issues at any time before final judgment is pronounced on the merits.

What happens if I am permitted to amend?
Hopefully, a diet of proof (evidential hearing) will be fixed. As regards the CCA part of any claim, section 140B(9) makes it expressly clear that the onus of proof will be on the bank to show that charges were 'fair'. However, you would still want to lodge evidence to show that charges were excessive to you as an individual customer. One could argue, the banks conceded before the Supreme Court that their charges significantly cross-subsidised 'free if in credit' banking for 42m customers. There are 54m current account customers in the UK, but only 12m customers ever pay overdraft charges. If one were to interrogate that data, it would become apparent that at the bottom of that 12m cohort will be people who incur regular multiple charges (and at the top there will be customers who incur one or two per annum); thus the more charges you incur the more you will be disproportionately contributing to free services for other customers, and the more you will be in finanacial difficulty (with charges on charges, and interest on top). Is that a fair relationship as regards the customer in penury? Or is that a fair balance between the rights of the bank and the position of the customer in penury? Only the court can decide these questions, and it will be important, we think, to lodge evidence to show the impact bank charges have had on the customer's day to day life.

What happens if I do nothing?
Your small claim may be dismissed. Be careful, because the bank may seek an award of expenses. If you do not proceed with a small claim to a proof (in good faith) the restricted expenses protection flies off and you could be liable to summary cause scale expenses. If you want to give up and drop your case it would be wise to ask the bank to agree to this on a 'no expenses due to or by' basis. If you decide to proceed you may be able to get support from one of the free online UK consumer forums such as the Consumer Action Group, MSE, LegalBeagles, or PenaltyCharges.

£2m fleeced from Scottish tenants in unlawful premiums each year

GLC has settled an action for the return of an unlawful tenancy premium, charged to a Glasgow private sector tenant to cover the cost of a credit reference check and the letting agents' administrative costs. The company, one of the biggest estate agents in Scotland, refunded the £235 premium in full, with court costs, without conceding liability.

Estate and letting agents in Scotland regularly require the payment of such charges before they let properties to tenants in the private rented sector. Yet, any charge in addition to rent (or a lawful deposit) is an unlawful 'premium' under Scots law, punishable by a statutory fine on a successful prosecution, and liable to be refunded to the tenant. The relevant law is set out here.

GLC's Mike Dailly said:
"Based on Scottish Government research, Govan Law Centre estimates that tenants in the private rented sector in Scotland could be getting fleeced by £2m or more per annum by estate and letting agents. That equates to around £200 per tenant under the guise of 'administration charges' and/or 'credit reference checks'."

"We believe Scots law is quite clear here. Any charge which is a requirement to obtaining a tenancy is a premium unless it is for rent or a lawful deposit. Premiums charged to tenants may constitute a statutory criminal offence, and the law entitles tenants to seek a full refund of such charges".

"The harsh reality is that many tenants who are being asked to pay these unlawful fees are financially vulnerable and desperate to get a roof over their family's head. This is why GLC is launching a national awareness campaign on this issue, and is providing the online legal know-how to empower tenants and their advisors to secure a refund."

An example Small Claims Statement of Claim is here.

Guidance on raising a Small Claims action in the Sheriff Court is here.

Note on how we calculate our £2m estimate:
The Scottish Government's review of the private rented sector "found that Scottish landlords may be wrongly withholding between £2.2 million and £3.6 million worth of deposits per year, from between 8,000 and 11,000 tenants". Taking 11,000 tenants being charged around £200 in administrative costs, the cost of inventories, credit reference checks, and such like, gives a figure of £2.2m per annum in Scotland.

Royal Faculty debate on Scotland's legal profession

The Royal Faculty of Procurators in Glasgow is to hold an open debate - Tuesday 9 March @5.45pm - led by leading members of the profession, with contributions from the floor encouraged on Scotland's Legal Services Bill and the future of our legal profession.

The Legal Services Bill is at stage 1 of the parliamentary process. Its proposed changes, such as the introduction of Alternative Business Structures (ABS), could make it difficult for Scots to secure access to independent legal firms, restrict access to justice, and ultimately undermine competition in the Scottish 'legal market'.

GLC's Mike Dailly will speak on the issue of ABS, its threat to competition and access to justice generally; and its commodification of justice. In addition, a debate on whether the Law Society of Scotland can continue in its dual role as regulator and representative of the profession will take place, with a contribution from John McGovern, the President of the Glasgow Bar Association. Speakers representing the Law Society of Scotland, and the 'big four' corporate firms in Scotland will present an alternative viewpoint.

This discussion is made all the more important as the Scottish Law Agents Society (SLAS)have called a Special General Meeting of the Law Society of Scotland to ascertain the profession's views on these fundamentally important issues. Please visit the Royal Faculty for more information - if you are a solicitor and cannot attend you can give a Mandate to SLAS to ensure that access to justice in Scotland does not become a commodity, at the morally bereft caprice of the UK's banks or vested corporate interests.

Solicitors poised to derail ‘Tesco law’

The Times reports that the Scottish government’s flagship reform of the legal profession was in jeopardy last night after a powerful association of solicitors announced that it was seeking to reverse a decision of the Law Society of Scotland (LSS) to support key aspects of the legislation.

The Scottish Law Agents Society – representing 1,500 solicitors — will this morning “requisition” a meeting of the LSS, and call for a vote on the issue of “external ownership” of law practices by companies such as banks or supermarkets. A controversial LSS vote in 2008 in favour of external ownership – often known as “Tesco law” — has become a key part of the Legal Services (Scotland) Bill, and is set to become law later this year.

However, galvanised by the introduction of the Bill in October, which introduced external ownership along with other unpopular reforms known as ABS (Alternative Business Structures) opponents are now confident they have the numbers to overturn the proposed changes.

“After taking soundings among our membership, we are certain there is an appetite for a challenge,” said Ian Ferguson, a board member of the Scottish Law Agents Society. “The vote in 2008 in favour of ABS, came after consistent opposition. We have a substantial number of votes, and think we will reverse the decision within a month.”

Mike Dailly, principal solicitor at the Govan Law Centre said a U-turn by the LSS would torpedo the government’s legislation. “The Bill is only progressing on the understanding that it is supported by the legal profession,” said Mr Dailly. “If that position is completely turned round, MSPs would have to reconsider their position.”

Last night, Ian Smart, the president of the LSS, indicated the society would abide by the decision of the general meeting, which must be held within 28 days of the requisition. “The debate will set the profession and so the society’s policy on external ownership of ABS,” he said.

Bank overdraft charges face new legal attack

From the BBC's UK business news: A law centre in Scotland has revived the UK legal campaign against bank overdraft charges. In November, the Supreme Court ruled that the scale of bank charges could not be challenged as unfair under consumer contract rules. But a client of the Govan Law Centre has won the right to challenge the Bank of Scotland's overdraft charges under the Consumer Credit Act. The bank will now have to demonstrate that its charges are not excessive. Read the full story here.

Bill to regulate property factors gets cross party support

Both the Herald, and the Evening Times, report that a bill to curb the power of rogue property factors and strengthen the hand of homeowners has taken a huge step forward by achieving strong cross-party support at Holyrood.

The proposed Property Factors (Scotland) Bill, introduced by the Labour MSP for Glasgow Maryhill, Patricia Ferguson, had to go out to consultation and then pass the normal first hurdle for a Member’s Bill of attracting the support of at least 18 MSPs. In fact, when the deadline passed 45 had signed up and although the bulk were fellow Labour members, the fact that 11 were from other parties indicates a broad enough consensus to suggest the Bill has a real chance of success.

Four MSPs each from the SNP and Liberal Democrats signed up, plus both the Parliament’s Green MSPs and Elizabeth Smith, the Conservative MSP. GLC's Parliamentary Unit has been engaged to draft the Bill. The Herald story is here, and the Evening Times here.

Sheriff puts Bank of Scotland to proof on bank charges

- Onus of proof now on Scottish bank to show charges were not excessive

THE BANK OF SCOTLAND has failed in its attempt to prevent a customer amending her claim for unfair bank charges, recalling the sist, and fixing a full evidential hearing at Glasgow Sheriff Court this morning (Friday, 19 February 2010).

UK banks have been telling over one million of their customers in the UK that they now had no legal basis to reclaim unfair charges in light of last November's Supreme Court ruling. However, the Supreme Court itself had suggested that charges could still be challenged under different legal grounds, and Govan Law Centre (GLC) had sought to amend their client's claim to incorporate a revised 'regulation 5' case under the Unfair Terms in Consumer Contract Regulations 1999 (UTCCR), and significantly, an additional claim under the new section 140A of the Consumer Credit Act (CCA, as amended in April 2007).

Counsel for the bank, instructed by Dundas and Wilson CS LLP, had objected strongly to the pursuer's substantial amendments, arguing it would be 'improper' to allow the customer to amend her claim in this way. GLC's Mike Dailly, representing the customer, explained to the court that it was necessary to amend the claim in order to take on board legal developments, and although consumers could no longer attack charges as 'excessive in price' under the UTCCR, they could do so under the s.140A of the CCA. The ability to do so was hugely significant, as was the fact the onus of proof to show charges were not excessive was on the bank under the CCA.

In Sharp v. Bank of Scotland plc, Sheriff Baird, a senior sheriff at Glasgow Sheriff Court, rejected the submissions for the defenders, and granted the pursuer's application to substantially amend her Statement of Claim and Crave, recalled the sist, and fixed a full evidential hearing (know as a 'proof' in Scotland) for 11th June 2010.

Mike Dailly, Principal Solicitor at Govan Law Centre said:

"Over the last few weeks, UK banks have been telling one million customers that there were now no grounds to reclaim bank charges, standing November's Supreme Court's decision. Of course, the Supreme Court itself had explained that charges could still be challenged under different legal grounds, and that is what Sheriff Baird has permitted our client to do today at Glasgow Sheriff Court".

"But besides a challenge under reg. 5 of the UTCCR, the Bank of Scotland now faces a fresh challenge that charges were excessive and unfair under the Consumer Credit Act. That is a potentially devastating case for them to answer, because under this new law the onus of proof is on the bank to show that charges were fair. Given that our banks have admitted they subsidise 'free-if-in-credit banking' by squeezing more money out their poorest customers through bank charges, they will now have to defend the indefensible. And, they will have the added problem that we are asking the court to prohibit them from imposing future charges under the CCA".

"In a nutshell, our new arguments are hugely more powerful than the ones deployed by the OFT in their unsuccessful test case. Evidentially, the new arguments require the bank to prove their charges were fair - which is tactically significant for consumers. The new arguments not only enable consumers to seek a refund of past charges, but entitle them to ask the court to prohibit future bank charges. That is hugely significant, and in many respects, we believe the new bank charges campaign is going to be a tougher propsect for the banks than the pre-July 2007 campaign. And of course that previous campaign saw refunds in excess of £1bn for consumers across the UK - so we are incredibly optimistic".

How Do Government Mortgage Modification Programs Work?

Many counties and municipalities also offer government mortgage modification programs. After 5 years of the modified home mortgage have passed, the loans interest rates may be raised and many consumers are wondering if there is any assistance out there for empire with low income everybody would like more home than they can afford. This is because there may be no new government mortgage help involved. If there are issues in your credit record that may not be viewed favourably in today's market, don't despair! A good place to start when looking for real estate grants for homes is to contact your local government agencies. At the first sign of financial trouble, we recommend talking to your lender to foreclosure refinance. This makes it almost inevitable that borrowers will have to sell, but then they run into the problem of getting a short sale approved by their mortgage company. It earlier released the names of 16 attorneys it was investigating for possible misconduct related to loan modification.

You may be a candidate for a first franklin loan modification. California’s extremely high rate of unemployment has plunged many families into financial insolvency. National city bank has agreed to consider homeowners for approval using the very aggressive loan modification terms offered by the government program called home affordable modification. Luckily, you can always try the do it yourself loan modification program and see how that works. In order to offer this plan to homeowners, lenders must sign an agreement with the treasury department and agree to abide by the guidelines. If you are facing foreclosure and want to save your home, the first thing you need to do is find out about all of the options available to you. Search the internet to find foreclosure data providers in your area. The organization will also help you find a house that qualifies for the assistance program. It’s time to take action and get foreclosure data providers.

With this information, certain loan modification fees can call your lender and verify that you are approved for this program. Therefore, you need to take the services of only those who offer free consultation for loan modification and a good loss mitigation team to help you in times of distress. Foreclosure consultant states - these states have laws that go into affect once the borrower's property enters the foreclosure process. Please hold and a loan modification california will be with you in a moment. Free under the home affordable program can not only pinpoint the problem, but also help you in negotiations with your lender over acceptable modification terms. Take some time to get to know whomever you hire before you begin giving out personal information like your social security number, state driver's license number, mortgage id number, or and other information like your credit card numbers.

The process has very specific steps you need to follow, and must be completed correctly, which is why many homeowners connect with a loan modification scams to handle the process and make sure all steps are followed exactly. Below is the list of documents and information you should have. Make sure you follow the instructions of the specialist exactly so the process is completed as quickly as possible. A company that has an loan modification letter on board would be a smart choice to assist you. With the recent mortgage crisis more and more banks are offering modifications to the loans of their customers. Many of the "attorney based" or "attorney backed" companies actually are not law firms nor will you be represented by legal counsel and could give up many of your legal rights by using such a company.

In some cases emergency mortgage foreclosure help can be found. This makes it necessary for homeowners to gain more broad foreclosure advice and look at other methods to save their home before willingly allowing it to go into foreclosure. Sometimes it can go up by about $150 than the normal monthly payment. Homeowners who can provide acceptable information on their loan modification for dummies and can clearly prove in black and white that they meet the guidelines will be approved. The obama mortgage loan modification plan offers a second chance for millions of homeowners left with few options to save their homes. You do not have to be delinquent on your payments to qualify, but you must be able to prove an imminent financial hardship situation exists. Stop foreclosure attorney are one of the few requirements which you need if you want to avoid a foreclosure on your home or property. Even if you know what you want and can negotiate for it, it may still make sense to hire a professional to help you get through the lines and phone calls necessary to work with the bank. You can of course choose to go through the steps on your own, but having an expert who has saved thousands of homes belonging to other financially unstable people is a great boost for your confidence. The federal trade commission has vowed to crack down on mortgage modification program as of april 2009. Mortgage brokers are able to help borrowers with refinancing options and mortgage modification negotiations. Here is a bit of advice that may help the homeowner in the search for legitimate loan modification help. One of the main sections of government mortgage programs plans is for the assistance of home owners who are stuck living in a home that will sell for less than the principal balance of the mortgage they still owe on it. There are many such programs which offers assistance especially in the united states. While the reasons for any government failure are too numerous to count, here are the top six why the housing bailouts have not helped. Homeowners who are dealing with the possibility of a foreclosure have become prey for mortgage brokers, loss mitigation departments and foreclosure bailout loans. There are not many qualifications for the modification of your loan, but they are important. Foreclosure bailout loans will charge a fee that can be thousands of dollars. The federal government has incentive programs in place for the lender to foreclosure refinancing. These options can help with the financial issues that have arisen for the homeowner. A wells fargo loan modification program that pauses the foreclosure process for up to 30 days to allow a loan workout solution to be implemented.

Federal Government Loan Modification Help To Avoid Foreclosure

One of the main sections of government mortgage programs plans for the assistance of home owners who are stuck living in a home that will sell for less than the principal balance of the mortgage they still owe on it. Federal funds should be allocated to be distributed to eligible homeowners that may assist them with their monthly payments. You need to make your own judgment when it comes to dealing such matters. Isn't this exactly what happened with taxpayer dollars in the whole aig debacle of new homeowner loans -- didn't we learn anything when they continued to use our money to lobby our government? Knowing the entities involved in the mortgage market is key to understanding home loan modifications. It is permissible for that 3% to come from gift money from a relative or city program.

Now the obama government has established a set of loan modification guide that will help struggling homeowners. allowing judicial modifications of home mortgages during bankruptcy for borrowers who have run out of options. To get an fha home loan modification program approved you are required to meet certain guidelines, rules and regulations. A very good source of information to assist you in this process is the complete loan modification guidelines handbook. If you're too far out of the requirements, applying would most likely end up as a bunch of wasted time and a headache. It is better to submit an initial proposal to your lender. The products include, wealth and personal development resources, wealth and personal development seminars, forex trading tools and mortgage help now. The most common types of mortgage help now are flexible still government controlled. Don't let a poor credit history stop your dream of owning your own home.

Working with investors can be an intelligent and proactive choice for foreclosure steps. Another option to avoid foreclosure is to give your property back to the lender via deed in lieu foreclosure. Sometimes it can go up by about $150 than the normal monthly payment. As a result, using a loan modification forms often means paying several thousand dollars for a simple phone call, to which the answer will predictably be “no. You cannot find this information online, so it is vital you call bank of america to learn this. If you currently have no income, or any prospects of becoming re-employed in the near future, you may not qualify for a loan modification.

Positive feedback and comments have been posted online and are available for review for the mortgage rate modification. Unless you are working directly with your mortgage company, do not sign anything, such as, a transfer of deed. Usually an attorney will charge more than the mortgage rate modification will because an attorney is on retainer. Most of the banks are already involved in predatory lending lawsuits, and want to make loan modification programs run smoothly for our attorneys. Find out if you qualify for one of the many programs being offered delinquent homeowners. There are a variety of companies that offer services and solutions in this manner. Save your home and talk to a loan modification california in your area. But the truth is, loan modification is not a complicated process if you have all the right information and guidelines on how to correctly go about it. Housing and urban development to help with any queries you may have regarding the entire 2009 citimortgage loan modification process. Depending on your credit score and the type of home you want to purchase, you may qualify for one of the many home mortgage help. After 5 years of the modified home mortgage have passed, the loans interest rates may be raised. The osgoods have begun considering the possibility of launching their own business. Your loan modification forum will paint a picture of your current financial situation to your lender. It's not hard-just make the commitment to learn and prepare. To get the most out of your mortgage loan modification you need experience and the law on your side. The federal trade commission has vowed to crack down on american mortgage modification as of april 2009. This disparity places serious odds against the homeowner securing honest help. As a result, it cannot be made clear enough that when you go with a mortgage modification company you should work with one that has a good performance history and the right qualified staffs who will work with supporting you in stopping foreclosure and modifying your mortgage terms; such as rate, payment period and the loan balance.

What about second jobs, the additional income is helpful to your situation and may foreclosure refinancing. Here is a basic outline of the programs that may benefit borrowers. So real estate prices are still overvalued compared to the rents that properties are generating, and foreclosure rates are higher than they would otherwise be if banks willingly worked with homeowners. Banks and lenders are not required to work with homeowners, since the loan modification program is voluntary. Eligibility requirements for the "home affordable modification program" are relatively loose and most likely only rule out less than 5% of the nine million homeowners currently struggling with their mortgage. You need to use the right sources, like your state's real estate commission. Here is a list of the most commonly required loan modification for dummies. It is very important that borrowers are fully educated on the process before contacting their lender. Have a loan for a single-family home, totaling $729,750 or less;.

The new government backed loans program is exclusive to those whose property values have fallen past that 92 percent mark. Will take on loans that are more than your property is worth. Once a homeowners begins the application process, participating lenders have agreed to forestall any foreclosure proceedings while the application is reviewed for eligibility. “…a foreclosure policy involves re-negotiating the existing loan or paying it off by taking on a newer, more fair loan. Foreclosure becomes a possibility when a borrower fails to make payments on account of a bad financial situation arising from unforeseen circumstances like death of spouse, loss of job, illness, accidents, divorce, etc. Regardless of the homeowners' financial situation and the current real estate market, the house should be listed on the market just on the off-chance than an interested buyer wants to purchase it before the foreclosure goes through. Borrowers who find themselves lost in the paperwork and technicalities involved, can seek assistance from loan modification san diego or do it yourself modification kits. Others may actually approve you, pay off the mortgage in full and then you are paying them. Loan modification qualifications are designed to help you modify your home loan mortgage, not to prevent you from getting a loan modification.

But to give a support, qualified mortgage refinance help are playing active role in providing the assistance that is needed to complete the process of a loan modification with varied options of gaining a favorable decision. Map to first-time home buyers that buy in their communities which assist in providing down payment to complete the purchase of the home. The best prevention against foreclosure in maryland is for maryland homeowners to contact their lenders early on and discuss other options that may be available to them to save their home from foreclosure. Before this week's latest interest rate cut and rumors of a further government mortgage programs, housing and real estate prices had been projected to continue falling for the next year or more.

Choosing The Right Government Mortgage Programs Is Very Important

This housing plan is meant to help homeowners regain their financial grounding and not designed for long term assistance and restrictions apply with such mortgage assistance programs as well. For first-time home buyers that are going to buy in their communities and require assistance in providing down payment to complete the purchase of the home, sit down and write out what all of your monthly expenses are.

Lenders are also reluctant to help homeowners stay in their houses by modifying mortgages or offering other realistic solutions to home foreclosure help. There is significant assistance available for those who communicate with their lender early in the foreclosure process. You can of course choose to go through the process on your own, but having an expert who has saved thousands of homes belonging to other financially unstable people is a great boost for your confidence. A forbearance agreement provides short-term relief for borrowers who have temporary financial problems, while a loan modification requirements is a long-term solution for borrowers who will never be able to repay an existing loan. Those that feel the process is overwhelming are advised to look into hiring an attorney that specializes in modification preparation and negotiations. This then, is the company that you will deal with for a mortgage modification.

One of the main sections of help with mortgage payments plans is for the assistance of people who are stuck living in a home that will sell for less than the mortgage they still owe on it. Since the institution itself is backed up by the government and it has definitely showed its efficiency over the years, people looking for their dream home should not miss the opportunity to apply for fha loan program. If you are already behind your monthly mortgage payments by 60 days, the citimortgage loss mitigation department will automatically mail you a packaging listing some potential mortgage modification and refinace solutions for your consideration. Your loan modification hardship letters will demonstrate your ability to meet the debt ratio guidelines. These loan modification mistakes can all be avoided when submitting in your loan modification forum in. What else do i need to give my lender to determine if i qualify?

Private mortgage loan help can help homeowners negotiate a mortgage modification with their lender for a fee to save their home from foreclosure. In the event that you default by 60 days, the loss mitigation department will contact you to try to work out solutions with you. For your standard mortgage modification you will need to have a mortgage payment that exceeds 38% of your current income and you must have had the mortgage prior to january of 2008. With the government mortgage bail out bailout program lenders who are part of it are more than happy to offer help to these homeowners who on at the brink of losing their homes, because they are subsidized by the government. However, there is a good possibility that the families who need this help the most will not be able to use it. All of the required paperwork must be carefully completed and contain detailed explanations about monthly income and expenses.

For the best information on governmental assistance, talk to your local banker. Fha insured loans permit the seller to pay all of the closing costs, but the buyer must make a 3% contribution in some way, whether it is toward down payment, closing costs or pre-paid items. Prices have declined more rapidly than expected and the foreclosure rate has risen drastically. “…another great way homeowners can loans to prevent foreclosure is to talk to their lender about their options on their mortgage. One option to avoid foreclosure is to refinance your existing mortgage. It’s time to take action and get loans to prevent foreclosure.

Presentation - each lender has their own loan modification guide and policies. This will make your chances to get approved for program. After learning most of the above information you should be able to start-up your own loan modification business without have any obstacle come on your way. Statistics show that mortgage loan modification program that are not backed by attorneys wind up providing little to nothing for their customers and they cannot offer the customer any legal security due to the delays. This disparity places serious odds against the homeowner securing honest help. Barack obama made an announcement on february 18, 2009 that there would be incentives to lenders to consider people for mortgage modifications provided they met certain guidelines. In some cases emergency low income mortgage assistance can be found. There are many such programs which offers assistance especially in the united states. Fortunately, the government is not amiss on this problematic situation the homeowners have.

As a result, obama came up with the plan of home loan modification program which works well for you if you are troubled about having to foreclose your house. These new options are all because of president obamas "making home affordable" plan. There is a recent federal program which will help american homeowners in modifying or refinancing their mortgages. The other great thing about going for a loan modification letter is that you will get everything accomplished more quickly. With the recent mortgage crisis more and more banks are offering modifications to the loans of their customers. You send in your paperwork and they will tell you they weren't received even if you sent it certified and have a signature.

Before this week's latest interest rate cut and rumors of a further government mortgage programs, housing and real estate prices had been projected to continue falling for the next year or more. Recommended adverse credit mortgage companies online. A good place to start when looking for real estate grants for homes is to contact your local government agencies. It is simply a misconception that the automobile loan modification documents damages the credit score. The tips below can help you qualify for modification not only with wachovia, but with many banks. Lenders receive a bonus for every loan modification that they process and the borrower receives monetary help for making timely payments to the lender. Unfortunately, with so many con artists trying to pretend they are legitimate foreclosure bailout loans or law firms, people are getting taken advantage of because they have no clue what to make of the companies out there. You can also hire an attorney to help you with the loan modification process. The collapse of the housing market and illiquid nature of real estate assets has made banks reluctant to proceed with foreclosure, as they are certain to lose lots of money. What results can you actually expect to see from a national loan modification? However, not just any homeowner qualifies for entry to the program. Its not that the owners who have missed any of their monthly loan payments can only be eligible for national loan modification.

While there are government mortgage help programs for new home buyers which aim to make it easier for first time home buyers to get their mortgage loan, it can still be challenging today to get any bank or private lender to loan money to someone who doesn't have reasonable credit. With a fha loan, you can put zero down, avoid paying for private mortgage insurance, and qualify for lower rates. Many homeowners are complaining that they are being left out of the program for no good reason. One of the main sections of government mortgage programs plans is for the assistance of home owners who are stuck living in a home that will sell for less than the principal balance of the mortgage they still owe on it.

Government Mortgage Programs For Afro-Americans And Hispanics

Like government mortgage programs, private money can be used to help come up with down payment cash, assist with closing costs, or the development of land for afro-americans And hispanics. The most common types of government mortgage programs are flexible still government controlled. The three packages are gold, platinum and titanium. One excellent source of loan modification information is the complete loan modification group handbook. Without that information, the guide would be completely useless to you. Any loan modification group that leaves their customers on their own after the sale is probably selling a basic guide not covering the inside details of getting loans modified, negotiating with mortgage lenders or even covering how to complete the documents that you need to get started on a loan modification.

One of the main sections of fha mortgage help plans is for the assistance of people who are stuck living in a home that will sell for less than the mortgage they still owe on it. Can a mortgage lender ask to see the interior of a home to check for the condition of the property? While the reasons for any government failure are too numerous to count, here are the top six why the housing bailouts have not helped. The government mortgage bail out plan laid out by obama is to get your housing expense down to 31 percent of your gross income. They are given financial incentives by the government to help you, even if your mortgage is more than the property is worth the government loan bailout program will help you and the federal government will subsidize the lender for the difference. Because of the numerous and strict requirements enacted, plus the intense analysis involved, most of these needy families will be unable to meet the criteria for help. There is an option for applying for hud home financing online on the website of wamu. Mortgage modification involves a permanent change in the loan terms of the borrower. If a struck homeowner lives hold his or her property, deluge within the requirements for the amount they owe, and meets additional criteria, they could be eligible for the driver's seat plan.

An excellent source to foreclosure refinance is the national housing alliance that provides a publication developed by fannie mae identifying your rights for how can you stop a foreclosure action. The task force had 738 active investigations underway last month. The moment you realise that you can no more pay the instalment for your loan, you should contact wachovia. This is the time to consider a loan modification application to handle the situation for you. Some lenders are less open to modifying home loans than others, and coming to an agreement can take a long time. Millions of americans are in need of a loan modification these days.

Some of the most popular new homeowner loans include. There are also what are commonly known as first and second mortgages. At the head of the line for the next bailout, seems to be the big three in the auto industry. Interested candidates will be asked to prepare some loan modification forum and provide certain documentation. You must take the time to learn those guidelines and know how to prepare your forms properly so that you will have the best chance of success. This is a snapshot of your current financial situation that itemizes all of your income and expenses each month.

What about second jobs, the additional income is helpful to your situation and may loans to prevent foreclosure. Even if you know what you want and can negotiate for it, it may still make sense to hire a professional to help you get through the lines and phone calls necessary to work with the bank. Sometimes it can go up by about $150 than the normal monthly payment. This means any money out of pocket would be returned in full to the homeowner if the homeq loan modification were not completed. Even if you have been turned down in the past for a refinance from wells fargo, or are still waiting for a response from your application, you can still ask to apply for obama's "making home affordable" plan. This will include items like the mortgage payment schedule, wage documentation for all parties to the mortgage, income tax records, insurance records, pay stubs, property tax assessment records, and all records regarding any other loans like automobile, personal and educational loans.

What Government Mortgage Programs Are Available?

One of the main sections of government mortgage programs plans is for the assistance of people who are stuck living in a home that will sell for less than the mortgage they still owe on it. Choosing a good loan modification guidelines will always provide phone support to their customers as everyone knows that without talking to someone; however no guide will be able to achieve all that is claimed. Yu may as well be collecting all the forms needed for loan modification and filling them up so as to convince that you are in a position to make the payment and also that your budget is attuned giving ownership of your home the top priority. Any loan modification guidelines that leaves their customers on their own after the sale is probably selling a basic guide not covering the inside details of getting loans modified, negotiating with mortgage lenders or even covering how to complete the documents that you need to get started on a loan modification.

Note that the attorney must be licensed as a lawyer in the state in which you are offering the loan modification fees. The present economic downturn has broken the backs of many people. No discipline may be imposed unless and until the state bar proves allegations of misconduct by clear and convincing evidence". A attorney knows the laws around the new loan modification specialist and can force the lenders to adhere to them in a way that is beneficial to the homeowner. allowing judicial modifications of home mortgages during bankruptcy for borrowers who have run out of options. With lower rates and lower payments, more of our customers who are facing hardships will qualify for a loan modification. First franklin loan modification are one of the few requirements which you need if you want to avoid a foreclosure on your home or property. There are some basic qualifications to meet, but most of them are not difficult. During the review process, any foreclosure will be stopped until a determination of eligibility is made.

Com/ they can give you the best mortgage help now don't lose hope if you're looking to buy a home. Homeowners have actually received loan modifications through this program. One of the biggest problems with the new law is that it only affects federal taxes. A loan modification letter from the company will handle the homeowner's case. They can give professional guidance and counseling to reduce undue anxieties and risks in regards to their mortgages. Think about if you were on trial for murder, and you were trying to defend yourself, rather than using an attorney to defend you.

It is not surprising, that over-promising practices will start to occur and loan modification attorney will take advantage of homeowner's vulnerability. Such private firms are competing with the obama administration's own loan modification service. You have all of the knowledge about your accounts and your finances that any mortgage negotiator would need, and anyone can do the necessary research to learn about strategies for loan modification. Mortgage loan modification software in california are currently very popular with home owners. Back in the day, homeowners facing foreclosure or immanent hardship due to interest rate adjustments didn't know what a loan modification was and with the recent development of our internal management system software and the acquisition of mr. Many non-attorney or "attorney based" or "attorney backed" companies are operating illegally. So, how do you know if you are eligible or not for the new fha secured loan program program? However, not just any homeowner qualifies for entry to the program. During the recession the government came up with lots of funding.

This means that your loan modification forum have been completed correctly, you have provided a complete package so that the bank has everything they need to review and approve your proposal quickly. Then you make sure that you have the best chance of approval. Borrowers have one shot at getting a mortgage modification-get informed before you make a decision affecting your family. Presentation - each lender has their own loan modification business and policies. If you are struggling to make your payments with any of these lenders, you must read this article! Preventing foreclosure and keeping people in their homes during their financial struggle is a primary aim of the new loan modification plan. The federal trade commission and local state attorneys have stepped up their efforts to combat these scam artists and have shut down many loan modification group during their investigations. In the past they used to charge some money upfront for this purpose. Therefore, it cannot be stressed enough that you when go with a mortgage modification company you should work with one that has track record and the proper experienced people on staff who will work with assist you in stopping foreclosure and/or changing your mortgage terms such as rate, payment and the loan balance.

Refinancing can also loans after foreclosure by shortening the term of your mortgage. This may seem embarrassing or nerve-wracking, but it is the first step towards avoiding foreclosure. A wells fargo loan modification program that pauses the foreclosure process for up to 30 days to allow a loan workout solution to be implemented. This is another great way homeowners can foreclosure refinance is to talk to their lender about their options on their mortgage. This makes it almost inevitable that borrowers will have to sell, but then they run into the problem of getting a short sale approved by their mortgage company. You can of course choose to go through the steps on your own, but having an expert who has saved thousands of homes belonging to other financially unstable people is a great boost for your confidence.

It has been proven that since its foundation in the early 1930, the federal housing administration has helped many people to live in their dream homes in california or anywhere else in the country throughout the means of government mortgage assistance. It will probably be a few more weeks before mortgage interest rates are affected even for single mothers with delinquent mortgages. Caring for a disabled child or one with special needs is a 24/7 job, so where is the income from to cover the house loans? From the first government mortgage programs to the latest one, it seems that no matter how hard the central planners in washington attempt to alleviate the suffering of millions of american homeowners, the foreclosure crisis rages on.

$160,000 Settlement Reached Over Racial Steering Complaint in Atlanta

Atlanta area realtors settled with the Justice Department on Feb. 3, 2010 over allegations of racially steering prospective home-buyers. The complaint, filed by HUD and the National Fair Housing Alliance, resulted in an investigation which reported that agents were steering white testers away from predominately black neighborhoods because of race. One tester reported that an agent wasn't sure what area to take the prospective home-buyer because he could not tell the testers race from their phone conversation.

Full article here.

HUD Grants $26 Million to Fair Housing Organizations

In an effort to continue fighting housing discrimination, HUD once again distributes funds to local fair housing agencies across the country.

HUD Press Release