Know What Happens Is Your Do Not Pay Your Mortgage

The different choices available to Canadians struggling to fulfill their financial mortgage obligations is determined mostly by what type of lending procedures are practiced in their province. Properties in Ontario, Newfoundland, New Brunswick or Prince Edward Island have mortgage agreements that initiate the primary recoupment process using the power of sale. In the provinces of Manitoba, Quebec, Alberts, Saskatchewan and British Columbia, the courts supervise a Judicial sale to recover the money owed. Although it is referred to as a Mortgage Foreclosure in Nova Scotia, the method is essentially the same as a Judicial sale. In Ontario, both options are available to financial institutions who are facing delinquent payments.

The power of sale provision in the mortgage contract gives all those who sign the contract a personal liability on the loan and can be done without a court’s involvement. Fifteen days following the borrower’s notification of the mortgagee’s intention to enforce the power of sale, communications are sent to anyone with an interest in the home, such as statutory lien holders, advisors or claimants of any subsequent encumbrance. Timing is dependent on whether the power of sale agreement is contractual, giving the borrower 35 days to remit the full amount — or a statutory power of sale which allows the borrower 45 days to sell the property and pay the balance.

Lenders are not able to proceed with their collection until this redemption stage is completed. This gives the borrower a opportunity to sell the property on the open market and clear the mortgage in full from the proceeds. This allows the borrower a chance to liquidate the property on the open market and with the proceeds repay the lender in full. The conditions of power of sale demand that both parties attempt to get the largest possible selling price with a paper trail to prove it or face legal action. If you are unable to recuperate the full amount of the equity in your house, the legal action can be taken from the lender for the balance.

As the name implies, a Judicial sale demands that the mortgage holder apply to the court to be allowed to sell the property. The judge then mediates the discussions between the mortgage holder and mortgagee, assigns a timetable for a resolution and mediates any disagreements that arise. The emission of an order absolute by the courts relieves the mortgagor of needing to be accountable to the lender’s ability to reclaim the entire amount owed from the liquidation of the house. With an order absolute, any other lenders or second mortgages have to be compensated from the sale of the property by the primary mortgage holder.

The idea of both mortgage procedures — the power of sale and Judicial sale — is to allow the mortgagee a fair chance to keep their house by settling the overdue amount. If further money cannot be secured under this timeline, payment extensions can sometimes be discussed or a longer redemption period allowed before the home is given to the lender.

Mortgage Meaning. What Is A Mortgage

We hear the word all over. A couple of years ago, they were being signed like they were going out of fashion; a large mortgage was akin to a large salary at the end of month. But the times have changed and in Dave Ramsey’s words, the paid-off home mortgage has taken the place of the BMW as the status symbol of choice.

But, what does exactly mean? The word ‘mortgage’ comes from the Old French and Latin. In Latin, mori (turned into the mort- part in ‘mortgage’ in Old French) means ‘death’ and -gage means ‘pledge’. Thus the words: ‘death pledge’.

The word mortgage comes from the Old French and Latin. In Latin, mori (turned into the mort- part in mortgage in Old French) means death and -gage means pledge. Thus the words: death pledge.

I can see how, hundreds of years ago, taking on a 30 year mortgage was comparable to signing yourself into bondage for life. As Earl Wilson correctly put it, if you think nobody cares about you try missing a couple of mortgage payments. Thats the ultimate Litmus test for love.

Funny words aside, etymologically, mortgage means that the pledge dies either when the obligation is fulfilled or when payment fails and the property is repossessed.

Interestingly, the French use mutated back into hypothque, derived from the classic Greek and meaning to put something under something else.

In some countries, like France and Spain where they have a civil-law system, a mortgage is closely or even solely related to a loan against real estate or property whereas in common-law, it represents any device in which a debtor (mortgagor) conveys an interest in property to a creditor (mortgagee) as security for the payment of a money debt. The Anglo-American definition has a broader meaning than its civil-law cousin, the hypothec.

Identifying And Avoiding Mortgage Fraud

Recent financial industry distress publicly attributed to widespread mortgage loan defaults has generated mounting pressure on federal prosecutors to increase investigations into incidents of mortgage fraud across the nation. On February 6, 2004, CNN reported that the FBI warned that mortgage fraud was becoming so rampant that the resulting epidemic of fraud could trigger a massive financial crisis. Mortgage fraud has now become so prevalent that the United States Department of Justice and the Federal Bureau of Investigation have been forced to create an entirely new category for tracking these cases. According to a CBS news report, the number of FBI agents assigned to mortgage related crimes increased by 50 percent from 2007 to 2008. Prosecutors and investigators on both the state and local levels are also feverishly organizing task forces and creating real estate fraud departments to counter this burgeoning wave of crime.

CRIME & PUNISHMENT

The primary focus of these investigations appears to be on borrowers, investors, mortgage brokers, appraisers and real estate agents. Some of the charges levied against these perpetrators have included making false statements on loan applications, bank fraud, mail fraud, wire fraud, conspiracy to launder funds and a number of applicable state laws. However, the primary legal vehicle implemented by federal prosecutors has been section 1014 of Title 18 of the United States Code which declares mortgage fraud as a federal crime encompassing anyone who willfully overvalues any land or property, or knowingly makes any false statement, for the purpose of influencing a financial institution upon a loan application, purchase agreement or other related documents. A violation of the federal mortgage fraud law (18 U.S.C. 1014) alone is punishable by up to thirty years imprisonment and a one million dollar fine.

MORTGAGE FRAUD SCHEMES

The most effective way to avoid prosecution for mortgage fraud is to identify mortgage fraud schemes prior to any actual involvement. Most mortgage fraud offenses fall into one of two general categories: fraud for housing and fraud for profit. Fraud for housing often involves fraudulent acts committed by a borrower, often coached by his or her mortgage broker or real estate agent, to obtain a loan for the ultimate goal of acquiring a home. These fraudulent facts generally pertain to the falsification of facts and documents during the loan application process to enable the borrower to obtain financing that he or she would otherwise not be qualified to receive. Conversely, fraud for profit typically involves a more concerted plan to abuse the entire real estate transactional process for pecuniary gain.

FRAUD FOR HOUSING

Income Fraud

This occurs when a borrower inflates his or her amount of income to qualify for a loan or a larger loan amount. Although recent reductions in the use of stated income or no-doc liar loans has somewhat curbed income fraud, daring borrowers are increasingly generating more fraudulent documents to falsify income. Information technology and photocopy equipment have become so advanced that very convincing documentation, such as income statements, savings accounts and tax returns, can be produced on demand.

Employment Fraud

In order to justify overstated income in a loan application, borrowers will claim self-employment in a non-existent company or represent having a higher position in a company than the borrower actually holds.

Failure to Disclose Liabilities

The debt-to-income ratio is an important part of the loan underwriting criteria used to determine a borrowers eligibility for mortgage loans. Consequently, borrowers will conceal financial obligations like newly acquired credit card debt, other mortgages, and private loans to artificially reduce their debt-to-income ratios.

Occupancy Fraud

Generally occurs when a borrower states on a loan application that he or she intends to occupy a property as a primary residence to secure a lower interest rate when the borrower actually intends to obtain the loan to acquire an investment property.

FRAUD FOR PROFIT

Equity Skimming and Cash-Back Schemes

A straw buyer is typically implemented as the buyer of the property due to his or her creditworthiness and resulting ability to obtain favorable financing. Unknowing straw buyers can be manipulated by mortgage brokers and real estate agents to purchase a property as a primary residence with the broker or agent later serving as a property manager to collect anticipated rental income. After the escrow closes and the mortgage and real estate brokers collect their commissions, they proceed to collect rental income and fail to make the mortgage payments.

Complex schemes can involve a knowing straw buyer, an appraiser who intentionally overstates the propertys value, a dishonest seller that intentionally inflates the selling price, and a dishonest settlement officer that makes undisclosed disbursements from the loan proceeds. All of these conspirators collaborate to collect portions of the proceeds of an inappropriately large loan before eventually letting it go into default.

Appraisal Fraud or Price Inflation

This fraud occurs when a dishonest appraiser intentionally overstates the value of a property or when an existing appraisal is altered to reflect a higher value. When a home is overvalued, more money can be obtained by the seller in a purchase transaction or by the borrower in a cash-out refinance.

The New Appraisal Fraud: Price Deflation

When done legitimately, a short sale occurs when a borrower that owes more than his or her property is worth sells the property below market value and the lender agrees to accept the lower repayment amount and forgive the difference. A new hybrid of fraud has emerged where an appraiser or a real estate agent drastically devalues the property in an appraisal or brokers price opinion (BPO) so that the home will sell with ease at a price well below market value. Of course the new buyer is in collaboration with the seller, agent and appraiser, so all of the conspirators proceed to sell the home at a higher price for a big profit.

Identity Theft

Identity theft fraud occurs when a victims identity is assumed by another to obtain a mortgage without ever intending to make any payments on the loan. The perpetrators often abscond with a portion of the loan proceeds and sometimes are daring enough to lease the property and collect some deposits and rental income before disappearing.

The Buy and Bail

This completely new scheme is perpetrated by a home owner who cannot sell the home because more is owed on the property than its worth. Because no lender will provide the owner a loan for a second primary residence, the owner tells the lender that he or she plans to rent out the current home despite having no intention of doing so. Sometimes a falsified rental agreement is used to further support the falsehood. Once the second home is purchased, the owner bails on the original home and fails to make any further mortgage payments.

AVOIDING & PREVENTING FRAUD

Mortgage fraud frequently emanates from groups that complete an abnormal amount of similar transactions or churn out many offers to purchase at once. These outfits may appear disorganized or unprofessional due to the large amount of transactions they are attempting to manage. It is also no coincidence that mortgage fraud has significantly increased as housing values have decreased since most fraud schemes involve a financially distressed or otherwise vulnerable seller. It is equally important to remember that agents owe a very strict fiduciary duty to act in their clients best interests. So before reporting a client to your local authorities, speak with legal counsel or your state real estate licensing department to ensure that your proposed actions dont constitute a breach of your fiduciary duty to your client.

Real estate agents are in a unique position that enables them to identify and even prevent the occurrence of fraud by recognizing the red flags, asking appropriate questions, and giving the principals in their transactions the full picture of what consequences are associated with participating in mortgage fraud. While a lot of damage has been done in the real estate market, we can prevent more of the same from occurring in the future.

Mortgage Outsourcing Companies A Must Have For Mortgage Lenders

The procedure of getting a mortgage is able to be tremendously difficult because of the many procedures which one requires going through particularly on the service provider being a small sized company. Mortgage outsourcing Companies has made the procedure a lot easier, so, making small firms deliberate on more money-making ventures. Mortgage outsourcing entails employing a firm having competent personnel who recognize the procedure and know the way of reducing the time taken and making it additionally manageable.

Among the benefits in appointing the services of an outsourcing company is:

1) The lender getting to save much money that they would be spending on not having involved the firm. This happen to be in order to the plan of the mortgage lender company as they now just focus on seeking additional clients, and bettering the additional services which they provide to their clients.

2) A company ought to make sure that they are spending less and earning more, a feature which the mortgage outsourcing companies assist the lenders attain. The firms not engaging services of mortgage outsourcing companies require employing everlasting staff to deal with such matters. This is having a cost inference to it on a month- by- month basis so that the firm requires paying their wages if or not they are having work in that month. Mortgage outsourcing companies just come in on being needed, and are paid just for the work that they do. The acquisition procedure of a mortgage is a lengthy one, for the lenders as well as the customer. To go through the procedure might be taking up time which the firm is able to make use of for additional income making ventures.

Mortgage outsourcing companies, in contrast, take up an extremely brief time that in a number of cases is able to be inside 24 hours. The procedure of mortgage achievement has need of the services of legal representatives, to guarantee that the procedure followed is not having any legal irregularities, underwriters for ensuring that the land is in the correct state ahead of the documentation making its way to the lender and professionals for looking after the foreclosure. All such activities and more would be costing the company much money that Mortgage Outsourcing companies of good reputation would be saving for the company.

3) Besides completing the procedure in record time, clients and lenders are having the guarantee that the work quality which they would be getting is exceptional, to make the lending corporation have an enhanced reputation amongst clients. On a firm dedicating its hours and reserves in reporting on the client mortgage request, they would be spending time which they could have used for additional business in the process. The work distribution amongst diverse players guarantees that a firm can serve many clients in a speedier and much more efficient way. In situations in which the lenders take on all of the work themselves, mistakes take place which are able to be avoided if Mortgage outsourcing companies had been used.

Mortgage outsourcing companies are crucial business partners to have for all mortgage lenders irrespective of being small / medium sized, as they look after all facets which would be expensive and lengthy for them.

Instant Payday Loans No Credit Check Ultimate Approach For You

Do you need fast money to take care of your small vital requirements? Do you find yourself in money shortfall to carry out unexpected requirements? Do you want to procure cash support as fast as possible? If your answer is yes to all these questions then instant payday loans no credit check are the wonderful options for you. You dont need to be fear because of your lower credit scores while applying for these loans. Actually, these loans are specially planned for salaried people during financial crisis.

As the title suggests, these loans grant funds to you in the least span of possible time in a day of application. Hence, you have a great option to tackle your financial requirements as soon as possible without any hurdle. Instant payday loans no credit check are really very convenient options especially to those people who have fixed job. All salaried people dont need to provide any security as collateral to pledge aligned the loan offered.

You are permitted with instant payday loans no credit check to access a loan amount ranging from 100 to 1000 without any assurance. Keep in mind that the finance is for the limited time period and so you have to repay the fund within 14 to 31 days, or you can repay the fund till your next payday. Lenders dont prejudice in borrowers credit scores and so there is no credit verification required. As a result, people marked with adverse credit scores can also enjoy these financial facilities right away.

It is inevitable that you have to meet with some specific criterions ahead of submitting your loan application to the provider of loan. In keeping certain grounds you need to be a permanent citizen of United Kingdom above 18 years old age, you are a permanent employee for any reputed firm with the fixed income minimum ranging from 1000 per month and you have a valid active checking account.

Both no faxing required and no credit check required while applying for these loans via online medium. Thats all you have to fulfill a simple application form on the website of the loan. After confirming your details, the finance is transferred directly into your active bank account within a matter of few hours of the day. This is hassle free medium through which you can get a loan approved in no time. The borrowed money can be used for covering various small term expenses such as medical bills, electricity bills, home rent and so forth.