What information must a lender or creditor disclose?
When you are dealing with lenders or creditors, you have the right to a clear and accurate loan disclosure where important information pertaining to your loan or line of credit will be explained to you in an appropriate manner. The Truth in Lending Act (TILA) requires that all lenders and creditors comply or be held liable for any violation of the act.
Under the TILA, lenders and creditors must disclose the following information:
- the identity of the creditor;
- the amount financed;
- an itemization of the financed amount;
- the annual percentage rate (APR);
What is HAMP and how does it affect foreclosure in Florida?
The federal government has responded to the increase of foreclosure in South Florida and across the nation by developing the Home Affordable Modification Program (HAMP) as part of the Making Home Affordable initiative. HAMP is a loan modification program designed to help homeowners with making their mortgage payments affordable and avoid foreclosure in South Florida.
Eligibility for HAMP involves:
- owning and occupying a 1-4 unit residence;
- owing $729,750 or less on your home;
- having financial circumstances making it difficult or impossible to make your mortgage payments;
Affordable Mortgages Under HAMP
If you have officially received approval for a loan modification under the Home Affordable Modification Program (HAMP), your loan servicer will make sure that your new monthly mortgage payment is no more than 31% of your monthly income.
The strategies used to lower your mortgage payment under HAMP include the following:
- Reduction of your interest rate – a rate as low as 2% is a possibility. In return for the low rate, the U.S. Treasury Department extends financial incentives to your loan provider. This doesn’t mean that everyone who qualifies for a HAMP loan modification will get 2% interest rates. If a 5% rate is sufficient to lower you mortgage to an affordable payment, then a 2% rate would not be necessary.
Warning Signs of South Florida Foreclosure Scams
With the number of South Florida foreclosures rising, scam programs are multiplying. Many fraudulent organizations have been preying on the emotional distress many homeowners feel when facing foreclosure.
Keep your eyes open for the following warning signs when considering a mortgage loan modification or foreclosure assistance:
- High up-front fees – although many legitimate foreclosure assistance companies do charge fees, they are small and not required until after they start your case. Be especially wary of companies that require high up-front fees and claim to be government-sponsored. Government programs are free.
Best Foreclosure Defense in Weston
The recession has hit the state of Florida hard. Currently the sunshine state ranks second from the top for foreclosure filings. The other states hit hard with foreclosures are: California, Michigan, Arizona and Nevada.
For the best foreclosure defense in Weston give Burgess Law firm a call today.
The top Florida cities with high foreclosure rates are: Sarasota, Orlando and Fort Lauderdale. Just in the month of August alone there were 62,400 new foreclosure filings with foreclosure sales numbering 8,498 that had an average sale price of $192,772.