fioretti foreclosure workshop
DESCRIPTION
TRANSCRIPT
Presented July 19,2011 Mario Pantoja, Director
Illinois Department of Financial and Professional Regulation
William Smirniotis
Illinois Licensed Real Estate Broker
Who Owns My Loan?
Determining if your mortgage is Fannie Mae• http://loanlookup.fanniemae.com/loanlookup/• Must verify that you are owner or have owner’s
consentDetermining if your mortgage is Freddie Mac
• https://ww3.freddiemac.com/corporate/• Must verify that you are owner or have owner’s
consent
Homeowner Protection Act
Law signed by Governor Quinn in April 2009 On Aug. 2, 2010, Gov extended HPA thru July 1,
2013Gives consumers who fall behind on their
mortgage payments a 90-day “grace period” during which the lender cannot begin foreclosure
During the 90-day period, a consumer can, with the help of a housing counselor, negotiate a workout plan with the lender
HPA Eligibility
At least 30 days behind on your mortgage payments
Received a notification from your lender or servicer about your right to seek housing counseling
Exercise your right to housing counseling and get the full 90 days!
One-time only per mortgage
HPA Eligibility
Additional Protections
On August 2, 2010, Governor Quinn signed the Save Our Neighborhoods Act of 2010. Lenders will pay a $50 fee when they file a
foreclosure complaint in court Fees will go toward foreclosure prevention
efforts, including grants to community-based groups to connect homeowners with counseling help and foreclosure prevention programs
Mortgage Fraud in Illinois
The Mortgage Fraud Task Force was established by the IDFPR to ensure that mortgage companies comply with the strict standards of conduct established by state laws
Since its inception, the MFTF has taken disciplinary action against more than 150 persons and entities and assessed fines in excess of $2 million and conducted a regulatory sweep of more than 150 mortgage companies
Homeowner Protection Initiatives
BEWARE of anyone who says they can “save” your home if you sign or transfer over the deed to your house
DO NOT sign over the deed to your property to any organization or individual unless you are working directly with your mortgage company and have YOUR OWN lawyer or housing counselor
Beware of Foreclosure Rescue Fraud
Avenue of Broken Dreams
South Side bungalow of 75-year-old woman was “stolen” by people she trusted
“Friends” persuaded her into signing documents, including the deed to home of 30 years
IDFPR uncovered a slew of fraud and is actively battling to help woman keep her home
IDFPR Enforcement Successes
2007-Present
IDFPR Enforcement Successes
2010MFTF wins 2010 CLEAR
Investigative Excellence Award
The Council on Licensure, Enforcement and Regulation (CLEAR) honored task force for its two-year “Avenue of Broken Dreams” investigation
“If it sounds too good to be true…”• Do not offer or agree to sell your name
and/or credit to help keep “someone else” from losing their home or purchase a home
• This is commonly referred to as “Straw Buying” but is better known as Fraud
“Thou shall not covet thy neighbors goods…”• Many mortgage scam victims are approached
by persons they know and trust through church and other religious activities
Don’t Become a Victim to Predators
There is NEVER a fee to get assistance or information about the Making Home Affordable from your lender or a HUD-approved housing counselor
BEWARE of any person or organization that asks you to pay a fee in exchange for housing counseling services or modification of a delinquent loan
Don’t Become a Victim to Predators
If you feel you have been duped during a residential loan transaction, or have paid someone for a loan modification file a complaint with the Illinois Department of Financial and Professional Regulation TODAY!!!
Or, by mail: IDFPR James R. Thompson Center
100 W. Randolph Street, 9th FloorChicago, Illinois 60601
By phone: (800)-532-8785Online: www.idfpr.com
File a Complaint…TODAY!
Foreclosure
A judicial proceeding by lender/servicer to obtain judgment against the borrower for his/her breach of promise to pay
Lender/servicer takes borrower’s interest in the house, which was given as security for the promise
Summons• An order to appear in court to respond to
the foreclosure complaint• Do not ignore this information
What are my options?
Refinance• Pay off the entire mortgage• New loan with affordable monthly
payment• Current employment is necessary
Workout• Lender/servicer agrees to new payment
plan• Can you afford the proposed plan?• Seek legal advice before signing
Options
Short Sale• Agreement by lender/servicer to sell
the property for less than is owed on a mortgage
Deed in lieu• Borrower surrenders property to
lender to satisfy the loan and avoid foreclosure proceedings
• Does not satisfy junior liensBe aware of future liabilities!
Seek legal and tax advice!
Options
Apply for a modification through President Obama’s Making Home Affordable Plan
Today begins this process
Meet with a HUD approved counselor
You have the ability today to meet with a counselor even if your lender is present
Options
Graceful Exit
HUD counselor can assist in this process
Opportunity to rebuild your credit
Foreclosure Steps
Court Hearing• Borrower may appear in person or
by a lawyer and contest the foreclosure
• If no appearance, a default judgment may be entered and all proceedings continue
• Many counties grant a continuance just for appearing in court.
Foreclosure Steps
Reinstatement• Within 90 days within the date of
service, a borrower may reinstate the loan by fulfilling all payments, including fees and costs
• Loan continues as normalPublic Auction• If property is not redeemed, judicial
sale is held like an auction
Foreclosure Steps
In the end…• If the property could not be
saved, the foreclosure is completed
• Eviction• Work with the lender for a
graceful exit
Important
Contact your lender/servicer as soon as you think you cannot make a payment, or contact a HUD-certified housing counselor in your community
Do not ignore telephone calls or correspondence from your lender/ servicer. The sooner you call, the better. Lenders do not want your house.
Do not seek assistance from individuals who make you an offer that is too good to be true
If you feel you have been duped during a residential loan transaction, file a complaint with the Illinois Department of Financial and Professional Regulation TODAY!!!
Or, by mail: IDFPRJames R. Thompson Center
100 W. Randolph Street, 9th FloorChicago, Illinois 60601
By phone: (800)-532-8785Online: www.idfpr.com
File a Complaint…TODAY!