FDIC Issues an Email Scam Alert

According to an American Bankers Association communication last week, one of the first 2011 FDIC Special Alerts has been issued to warn consumers about an email scam that uses the alleged suspension of your deposit insurance coverage as a ploy to obtain personal info from you. The email scam states that the FDIC has withdrawn insurance coverage on your account due to activity that violates of the Patriot Act.

It further states that coverage will be withheld until account info can be verified and provides a link (of course). Watch this video from the FDIC and,





George Sinacori
rebuygeorge@yahoo.com

Protections For Renters Living In Foreclosed Homes

A bill passed by both houses and signed by the President on May 20, 2009 titled "Helping Families Save Their Homes" establishes among other provisions, some level of comfort for renters unwittingly caught in the foreclosure crisis. Many renting families have become victims of the foreclosure crisis by not knowing that the home is being foreclosed. Without warning they may be told that the home now belongs to the bank and that they have 48 hours to vacate. A provision of this bill finally addresses the problem and provides some security for renters of foreclosed homes. Helping Families Save Their Homes establishes protections for renters living in foreclosed homes.

According to Senator Dodd of Connecticut and a U.S. Senate publication: "One of the overlooked problems in the foreclosure crisis has been the eviction of renters in good standing from homes that go through foreclosure because owners of those homes, unbeknown to the renters, have not been paying their mortgage. The bill will require the bank that forecloses to honor the existing leases, for renters on a month-to-month basis, provide a 90 day notice. If the bank sells the property to an intended owner occupant, 90 day notice is required. Parallel protection are provided for Section 8 tenants.

Senator Chris Dodd is Chairman of the Senate Banking, Housing and Urban Affairs Committee.

Other provisions of the bill reportedly are designed to help prevent foreclosures and increase the availability of consumer and business credit. Some of these are listed as:

- Expand Access to Hope For Homeowners

- Increase funding for Foreclosure Prevention

- Provide New Resources for Homeless Americans

- Increase borrowing authority for FDIC and NCUA (National Credit Union Association).

For more information on this new legislation or answers to questions about buying selling or renting in Southeast Florida please call me directly at 561-306-6736 or email rebuygeorge@yahoo.com.

Free MLS searches and up to date information on how to buy or sell, including short sales and foreclosure are available at ges-realty.com

Home Equity Lenders Trample Regulations

Numerous consumer complaints regarding freezing or reducing the available credit on HELOC's or home equity lines of credit have gotten the attention of the Treasury Department, the FDIC and the OTS or Office of Thrift Supervision, a branch of the Treasury Department.

As home values in many areas continue to decline complaints continue to grow that some thrifts are freezing the credit promised to borrowers and that they may be altering accounts that were not supposed to be changed. After receiving what OTS describes as an "uptick in complaints" regarding Savings and Loans reducing or freezing HELOC's, the OTC issued a six page letter to the institutions known as thrifts which spells out their obligations to HELOCs.

The letter of guidance may serve more as a warning to thrifts that they can freeze promised credit only under approved circumstances and not for broad geographic areas that may be harder hit by the housing slump than others. Each loan must be looked at individually in order to determine a "significant decline" in value. Regulation Z has interpreted and considers "significant decline" to be at least a 50% drop in the homes equity from the time the HELOC was issued.
i.e. Assume that a house had a first mortgage of $50,000 and appraised for $100,000. A $30,000 HELOC is opened leaving the available equity at $20,000. The creditor could reduce the available credit if the home value declined to $90,000 or 50% of the equity at the time the HELOC was taken.

The letter of guidance to thrifts goes on to outline legal risks to thrifts violating Regulation Z by stating:...."Regulation Z, which implements the Truth In Lending Act (TILA) sets forth the circumstances under which a HELOC may be terminated, suspended or reduced. Savings associations are responsible under Regulation Z for timely reinstatement of lines of credit that cease to meet the criteria for suspension or reduction." ............."With limited exceptions, Regulation Z prohibits lenders from terminating a HELOC and accelerating repayment" Exceptions include fraud, failure to meet repayment terms and actions adversely affecting the property.

For a copy of the six page letter go to GES Realty.

The FDIC has a hot line for concerned consumers 877-ASK-FDIC

The OTC also has hotline available at 800-842-6929