Mortgage by Randy
monthly update to our clients, colleagues, family & friends
By: Randy Mitchelson, October 2010
=================================================================================
In Issue 31 We Touch On:
Foreclosures Halted
Gas Price Scam
Sneaky School Tax
Our restaurant tour enters week 7 as frustrating delays have slowed the kitchen remodel project. However, the end is near and if anyone is planning on a kitchen project, hit me up for some tips before you get started. I recorded some short videos to help people think through some remodeling details that typically are overlooked until it is too late. If we knew then what we know now...
The current newsletter and all prior newsletters are archived at the Mortgage by Randy blog. Bookmark it and share with your friends and family. You can make your own comments and feedback as well. Time for the news...
Mortgage Market: Courts Crack Down On Lender Foreclosure Proceedings
Mortgage rates continue to stay steady and even trend slightly lower. This is due to current rumors that our Federal Reserve will be pumping massive amounts of currency into our economy. This is giving rise to fear of inflation and as a result, commodity prices such as gold and oil are on the rise and the stock market is seeing an influx of dollars into blue chip, dividend paying companies.
The biggest news in recent weeks is that courts are beginning to crack down on lenders that are pumping massive numbers of foreclosures through the system. The paper was flowing so fast that back office clerks responsible for carefully inspecting foreclosure documents for accuracy were, in some cases, rubber stamping them without performing adequate due diligence.
For example, Bank of America and GMAC (now doing business as Ally Financial) have halted foreclosure proceedings and several other lenders are doing the same. Reports of forged signatures and fake documents are coming to light and real estate attorneys are successfully getting foreclosure cases dismissed. As a result people's homes are being saved regardless of whether they really are in default or not. This is kind of like a known burglar being set free from a court due to sloppy police work such as broken chain of evidence or failure to inform the suspect of their rights. In both cases, people get off on a technicality. Accuracy is critical to the public having trust in their judicial system so the slowdown in foreclosure processing is good. The consequences is that buyers of properties from banks will have to wait a little longer to close.
Personal Credit: Final Nail In Coffin Of Free Credit Report TV And Radio Ads
Effective September 1, 2010, a new Federal Trade Commission (FTC) rule took effect which aims to reduce consumer confusion from television and radio advertisements about "free credit reports". The new rule, which already went into effect on April 2, 2010 for Internet advertising, restricts practices that might confuse consumers when they try to get their free annual credit reports.
The FTC's Free Credit Reports Rule requires clearly displayed disclosures in advertisements for "free credit reports." For example, any Web site offering free credit reports must include a disclosure, across the top of each page that mentions free credit reports, which states:
THIS NOTICE IS REQUIRED BY LAW. Read more at FTC.GOV.
You have the right to a free credit report from AnnualCreditReport.com or 877-322-8228, the ONLY authorized source under federal law.
The Web site disclosure must include a clickable button to "Take me to the authorized source" and clickable links to AnnualCreditReport.com and ftc.gov. The work-around? Now we see ads for Free Credit Scores which bypass this law.
Economy & Financial Insights: Anyone Else Fall Victim To This Gas Scam?
Like a lot of people, I like to get a good deal when I can. Recently, I saw a great gas price posted by my local Estero Shell gas station. I pulled in, popped my gas tank and as I began to pump I noticed that the price per gallon tallying up on the meter was higher than what was on the road sign. Hmmm.
I noticed a sign placed on the top of each pump which said that the special price was only applicable with purchase of a car wash. What annoyed me the most was that the sign by the road is so small that it is very difficult to read driving 30 mph and by the time you figure it out they already have you captured and pulling in. I was already parked and pumping so I just chalked it up to a lesson learned.
 |
 |
In the left picture notice the size of the gas price compared to the size of the sign that the gas price requires purchase of a car wash - it's that little red sign stuck on the left side and there is another tiny sign directly above the price. It is virtually unreadable. To make things worse, notice how far away from the road the sign is. This picture is taken from the gas station parking lot. The road is in the background. The sign on the pump is much more clear, but by then you are already pulled in, parked and getting ready to pump. Once again, the adage applies, "if something is too good to be true, it probably is".
Have you experienced a scam like this or another gas price scam? Share your story with us.
Question of the Month: Do I Really Have To Miss Mortgage Payments To Qualify For Help?
In a word, "No". However, you do have to demonstrate to the lender that you are in danger of falling behind on your mortgage. This will require documentation of income and other pertinent information to prove that your monthly cash flow has changed to the point where you need help. Homeowners facing a big adjustment in their monthly payment or a balloon payment can certainly seek help from their lender under this provision.
Giving Back: For Only $35 Per Day You Too Can Help A Child Pay For A Field Trip
School is back in full swing. One of the trends that has emerged since I was in school is school fundraising. Every Fall, school faculty send their students into the streets to panhandle family, friends and neighbors for orders of all kinds of overpriced items so that school administrators can help cover their mismanagement of our tax dollars. In one week, I spent almost $200 to help four of the cutest kids pursue an extracurricular activity or class trip. If our school taxes were raised by that much there would be revolution, but the grown-ups in charge have figured out this sneaky cash grab. Who can say no to the cute kid working their butt off to pound pavement and hit every door answerer up for an order? The holidays are coming, so my advice is to think of gift ideas that you can cross off your list with these school fundraiser orders and at least kill two birds with one stone.
Need volunteers? Do you have a fundraising event upcoming? Do you have a personal web site where you are raising donations for your cause? Submit the information to randy@mortgagebyrandy.com by the 5th day of each month and we will do our best to include your information in the next issue.
Just returned from my first visit to Delray Beach, Florida and am already making plans to go back. Headed to New York City in two weeks for ad:tech and then a long weekend in Troy, New York to celebrate the 60th anniversary of my fraternity at Rensselaer. Then 5 days of sun and fun at Disney. Everyone have a safe and fun Halloween.
Randy
____________________________________________________________________________________________
Mortgage by Randy newsletter, Copyright 2010 Randy Mitchelson. All Rights Reserved.
Randy Mitchelson is a licensed mortgage professional. All material presented herein is believed to be reliable but we cannot attest to its accuracy. All material represents the opinions of Randy Mitchelson. Recommendations may change and readers are urged to check with their financial advisors before making any decisions. Opinions expressed in these reports may change without prior notice. Mitchelson can be reached at 239-851-6738.
___________________________________________________________________________________________
You have permission to publish this article electronically or in print as long as the following is included:
Randy Mitchelson, of Estero, Florida, is a business professional, entrepreneur and author with over 15 years experience in financial services. Mitchelson has served in leadership roles for Global & Fortune 500 firms like Bank of America, KeyBank and CIBC.
As a member of National Association of Mortgage Brokers, Randy has earned the Lending Integrity Seal of Approval. He educates both individuals and groups about credit scoring by conducting personalized credit report reviews, action plans and one on one consultations. He is author of the free monthly newsletter, Mortgage by Randy as well as the Daily Dollar newsletter. A licensed mortgage professional, Mitchelson also founded Trinity Home Financing, LLC.
He is owner of Estero, Florida based National Web Leads, LLC, an internet lead generation service matching consumers with lenders for auto, cash advance and other financial products. Through its network of partners, National Web Leads delivers innovative Web 2.0 performance marketing solutions to advertisers and affiliate marketers.
Mitchelson earned his BS and MBA at Rensselaer Polytechnic Institute in Troy, NY. He is a founding member and Finance Chairman of the Southwest Florida Regional Technology Partnership Inc. and Vice President for the Michelle's Angels Foundation Inc. He is married to Susan, a Pharmacy Supervisor in the Lee Memorial Health System in Fort Myers, Florida.
Comments(1)