GUEST POST: Watch Out for Mortgage Modification Scammers!

Our guest blogger is Jon Wagner, home mortgage loan originator with Wintrust Mortgage in Eagan.  You can find more information about Jon here.

 In the last few years, companies have popped up that offer homeowners "forensic loan audits."  They say they will review the homeowner's mortgage loan documents, establish whether the lender complied with federal and state laws, and speed up the process of requesting a loan modification.

The truth is that even if the audit reveals errors in the loan documents, the process very rarely results in a loan modification or rescind.

Even worse, scammers will often make false promises that they will secure a loan modification, a principal reduction, or have the loan fully rescinded.  They they just the string the homeowner along or simply disappear.

Thankfully there are a few things you can do to best protect yourself:

• Don't trust anyone who guarantees results.
• Don't work with anyone who ask for an upfront fee.
• Don't sign any contracts under time pressure and don't sign any that you don't understand.
• Don't stop paying your mortgage, even if they tell you to.
• Don't give anyone your personal financial information, except an appropriate loan help organization.

Fortunately, free and legitimate help is available from the not-for-profit Homeownership Preservation Foundation.  Call 888-995-HOPE or visit their website for more information.  The U.S. Department of Housing and Urban Development (HUD) also lists by state legitimate housing groups that can help homeowners.  You can view that list here.

And of course, we're always here to answer any questions.

Respectfully,
Jon R. Wagner
NMLS: 331960
Company ID: 1048 

p.s.  Are you thinking of taking advantage of today's affordable home prices and historic-low mortgage rates to upsize, downsize, or refinance?  Please call or e-mail us now to discuss your situation.

Half of Cities See Price Increases

Case-Schiller Price Index for Minneapolis.

A private survey out today reveals that half of the major cities analyzed showed month-over-month price increases.  This signifies the fifth consecutive month where at least half of the 20 cities surveyed showed price gains. 

According to the survey, the cities experiencing the largest price increases were Washington D.C., Chicago, and Detroit.  This is excellent news for the midwest, which has been hit hard by the housing bubble.  In fact, Detroit was one of only two cities (Washington D.C. being the other) that has experienced year-over-year price gains.  Compared to August of 2010, home prices in Detroit were up approximately 2.5%.

In the Minneapolis/St. Paul area, we did experience price gains, but not to the extent of Detroit of Washington D.C.  Month over month, home prices rose .4% in Minneapolis/St. Paul.  This is entirely consistent with the trends we've been seeing in the market:  fewer homes going up for sale, more pending sales, and consistently low mortgage rates. 

All of which is a long way of saying that the housing market is dramatically more stable than it was even a year ago.  Is it possible that we've hit the bottom?  It's hard to say at this point, particularly with the slower winter months ahead.  I believe we will have a much more clear picture at the beginning of Spring 2012.