Scammers Target Homeowners As Foreclosures Increase
As the number of foreclosures rises, homeowners unable to make their mortgage payments are facing another growing threat: "foreclosure rescue" scams.
State and federal authorities say they are investigating an increasing number of homeowner complaints about fraud and deception by companies that engage in lending to financially distressed borrowers seeking to avoid foreclosure. Several states have recently passed or are contemplating new laws to provide more protection against dishonest businesses trying to take advantage of already vulnerable homeowners.
The problem centers on foreclosure-rescue companies, which target homeowners behind on their mortgage payments through newspaper ads or fliers claiming services such as "fast cash," "equity funding" and "no credit check." According to some recent cases filed by consumers and regulators, the companies mislead borrowers into believing they can save their homes from foreclosure in exchange for a transfer of the title for a year or two. The companies promise borrowers they can stay in their homes by paying rent for that period, giving them time to catch up financially until they can buy back their property. Often unknown to the borrowers, however, the companies may have sold their homes to a third party, stripping out the home equity and leaving the borrowers on the verge of eviction.
Read more about fraud and deception by foreclosure-rescue companies…
Have you ever witnessed this kind of fraud procedure? Share your experiences… We'd love to hear from you.
Heating Expenses Down Again This Winter
Falling energy prices are helping lower household heating expenses this winter even more than originally forecast.
According to the Energy Department, the average U.S. household will pay $873 in heating bills this winter, down from $938 forecast a month ago and the $948 average last winter. If so, consumers this winter will have the lowest heating tab in two years and the first year-over-year decline in five years.
A sharp drop in oil and natural gas prices is the main reason for the lowered estimate. Mild weather is also allowing consumers to conserve energy.
How has the lower energy prices affected your household budget this winter? Leave us your comment on that below.
Consumer Sentiment Hits 3-Year High
U.S. consumer sentiment improved to a 3-year high in early January, propelled by falling gasoline prices and a favorable view of personal finances and economic growth, according to a recent survey.
The Reuters/University of Michigan Surveys of Consumers said its preliminary January reading on consumer sentiment index rose to 98.0 from 91.7 at the end of December.
This was the highest since 103.80 in January 2004 and well above the 92.5 median forecast of analysts polled by Reuters. The surveys' gauge of current consumer conditions was 112.5 against a final December reading of 108.1, while its measure of consumer expectations was 88.7 versus 81.2.
Consumers, while generally upbeat, remain worried about inflation. The surveys' one-year inflation index edged up to 3.0 percent from 2.9 in late December, and its five-year index stood at 3.0 percent for a third straight month.
What effect do you think consumer confidence (or a lack thereof) will have on the real estate industry? We'd love to hear your comments.
Sales of New and Existing Homes Sliding
Mortgage-finance company Fannie Mae said that sales of new and existing homes will continue their slide this year, due largely to investors pulling out of the housing market.
In an economic and housing outlook, Fannie Mae said sales of new homes are expected to drop by 7.1% in 2007, while sales of existing homes are expected to drop 8.1% this year.
Fannie Mae's projections follow similar estimates released by the Mortgage Bankers Association. The trade group forecast declines in 2007 of 7% in existing-home sales and 8% in new-home sales. Fannie economists said the projected sales for 2007 would be the lowest since 2002.
Read the complete story here…
If you're in the market for a new home, tell us how you feel about the current state of new home sales. Does it make you feel inclined to wait, or hurry, with a new home decision. We'd love to hear your comments.
Selling a Home During a Slumping Market
Selling a home during a slumping market can be a grueling process for owners. Going it alone can be especially tough — and now a smaller proportion of sellers does that.
For-sale-by-owner deals increased steadily for two decades into the late 1990s. They accounted for 18% of sales in 1997, but that has fallen to 12%, says the National Association of Realtors.
Many homeowners feel that in a difficult market a real estate agent can sell a property more quickly and fetch more money than can an owner alone, says NAR spokesman Walter Molony.
Read the complete story here…
Are you in the process of selling your home? If yes, share with us your experience. What does it mean to sell a house during a slumping market? We'd love to hear from you.
