San Diego, CA (PRWEB) March 17, 2008 -- With home foreclosures surging to unprecedented levels in the United States, homeowners are being devastated by bankruptcy and home loss -- oftentimes the result of agreeing to unintelligible, misrepresented, and even fraudulent mortgages peddled by predatory lenders. As a result, ethical mortgage brokers are unfairly losing the trust and the business of people who truly need and would benefit from honest home loans. Fortunately, a new organization, Mortgage Accountability Association (MAA), is begining to protect consumers and ethical mortgage brokers by providing an objective review and explanation of the consumer's loan documents (termed the "MAA Review").
Based in the active real estate market of San Diego, MAA is a national association composed of real estate attorneys and mortgage professionals with years of experience assisting home loan borrowers. Jeffrey L. Hogue and Tyler J. Belong, the organization's founders, are licensed real estate attorneys and real estate brokers. Their collective experience encompasses reviewing real estate loan and transfer documents, as well as litigating against unethical mortgage brokers and other professionals in cases involving real estate purchase contracts, loan agreements, promissory notes, and other real estate loan documents.
Mr. Hogue and Mr. Belong created MAA to address the growing needs of home mortgage consumers: Even the most intelligent and financially savvy individuals can find it difficult, if not impossible, to fully understand even the most basic loan documents written by mortgage lenders. Far more common is the plight of an average mortgage customer, who has absolutely no knowledge of loan documents, and consequently can easily fall victim to a mortgage broker who fails to communicate the details of the loan, as a result of oversight or the pressure to make a sale.
MAA makes available two services that can be a tremendous help to such borrowers: MAA Review and MAA Legal Advice. 1) MAA Review provides a comprehensive and independent review, including a full explanation and summary of the critical terms in any home loan. This service costs only 5. 2) MAA Legal Advice provides the services of a knowledgeable and experienced real estate attorney, who can offer legal advice, review and explain the loan documents, negotiate terms, and even accompany the customer during the document signing, for a discounted hourly rate.
Hogue and Belong point out that residential borrowers are eager to pay for a home inspector or appraiser to tell the borrower what their home is worth and to point out any defects in the home. However, very few residential borrowers ever hire an attorney or other objective professional to provide the borrower with a review, and to explain the borrower's loan and related documents. This is in stark contrast to the commercial real estate industry, notes Belong, in which almost every borrower has at least one attorney reviewing their loan (usually because the commercial borrower can afford to pay 0/hour for an attorney). MAA's goal is to revolutionize the residential mortgage industry by making objective loan reviews so affordable and so efficient that it will become the standard for residential borrowers to have their loan reviewed prior to signing it. The idea is that if borrowers are informed of their loan terms ahead of time, they are less likely to be foreclosed on in the future, because they understand how their loan works, and they have not been mislead or defrauded regarding their loan terms.
By helping to protect mortgage borrowers, MAA also helps ethical mortgage lenders who utilize these services, in several ways: 1) Lenders can minimize and even eliminate the risks of being sued by clients, because any loan documents the lenders originate and have reviewed by MAA, would have been completely explained to their clients. This makes it nearly impossible for a client to demonstrate in a court of law that they did not receive a comprehensive and clear explanation of their mortgage's terms. 2) Loan officers and mortgage brokers are working harder than ever, exacerbated by downsizing in the real estate market. This increases the chances that even the most honest mortgage lender can make a mistake in presenting and selling a mortgage, or that a rogue loan officer can misrepresent a mortgage, unbeknownst to the supervising broker. MAA effectively solves this problem, providing lenders with peace of mind, as well as allowing them to better focus on their areas of expertise -- loan sales and support. 3) An independent and reliable third party review of a loan increases a borrower's confidence, the esteem with which they hold their chosen lender, and in turn the odds that they will recommend that lender to other potential clients.
Visit MAA's Web site (http://www.helpma.org/) today to learn more about the valuable services that they offer. The Web site also has a blog, where visitors can read the latest news in the dynamic home mortgage industry, check links to other useful sites, and even suggest news items and provide other input to the blog.
We're all entitled to the opportunities and benefits of home ownership. But because most of us aren't loaded with cash, we must find banks and lenders to assist us with finance. No matter what your credit history is, or what your circumstances are, the internet has now made this process a billion times easier. This article will outline a 5 point plan, to assist you in your pursuit of financing online:
Step 1: Don't be afraid to go shopping.
Discussing personal mistakes in life can paralyze us with fear, namely, getting into the "bad credit" issues.
The good news is that for the most part, getting into this "stuff' is completely unnecessary in the preliminary phase of shopping for a loan, beyond the basic information provided in an online short-form.
In other words, you don't really have to talk about the nitty-gritty details, until after a loan offer has been presented to you. We'll get into that later...
But since we're on the subject, if you are a consumer with credit history issues, let me briefly take this opportunity to state the obvious:
You're no different then anyone else. We all live imperfect lives.
Credit problems do not make you a bad person, they are simply reference points.
There are loan products designed for you.
There are lending institutions that are interested in earning your business.
There is nothing wrong with you, or your credit, or your situation. You are who you are, and that's just fine!
You need to first get into the right frame of mind. Don't be afraid to ask questions, and don't be intimidated by your credit history. Be honest. Give truthful information. But don't feel shame or regret for your past or present personal circumstance. They make you who you are, and that earns you respect! So with that said, put on your confidence, and let's GO!
Step 2: What's the going rate?
Information is free, so why not be informed? Many resources are available on the internet to get current interest rates, including a rate-watch at our website:
So to start with, take a look at two pieces of information:
Current Interest Rate, 30 year fixed
6 month trend graph
A little exercise: Do you see the current rate? What about the 6 month graph. Are rates going up, down, or staying about the same? Is the current rate higher than it was 6 months ago? Lower then 6 months ago?
Now don't feel the need to analyze this information too much. Relax. For now, just look at it, and perhaps, check it several times a week to stay informed.
If you do this, you're already 10 steps ahead of the game!
You are now an informed shopper. When an offer is presented to you in the near future, you'll be able to ascertain how good an offer it actually is by knowing how it compares to the "going rate". (sidenote: Don't forget to check terms, fees aka: "points", and conditions relating to your loan offer. Often times you will see higher points or less favorable terms, in exchange for a lower rate.)
In addition, you'll be able to assess if you think rates are declining or on the rise, which may help you to decide if "NOW" is the right time.
Step 3 – Obtain several offers, and SHOP RATE!
When you buy a car, do you seek out the best deal? When you go grocery shopping, do you consider which store offers the best prices?
Shopping for a mortgage should not be seen any differently, and the best way to do this is to obtain several preliminary loan offers online.
Preliminary loan offers are simple, painless, and easy to get.
They contain the terms, rates, and pertinent information you need to assess the lenders.
They will take all the guesswork out of where you stand.
Get 3 or 4 offers, and compare them. How do they compete against each-other? How do they compare to the going interest rates (see step 2 above).
Our website has compiled an index of hundreds of lenders and institutions that provide these preliminary services. This information is free, and available for you to peruse at your leisure.
Many of these companies' conduct searches of thousands of lenders, a lot of them in your local area, and they provide you with 4 loan offers almost instantly.
Take advantage of this! These are no obligation services, and for the most part, the online application forms are simple, fast, and easy. They literally can take no more then a couple minutes to complete.
In addition, you don't need to be burdened with going through your credit history at this phase. Completing the simple form is all it takes. If you qualify, and a lender is located that wants to do business with you, then you'll go to the next step which is to discuss this possible opportunity over the phone.
But isn't it nice to know that by that point, the lender has basically, already approved your loan?
Step 4: A couple things to keep in mind
Lenders should never ask you for personal or private information during this preliminary phase. Of course they'll need to know some basic information about you and your situation, but never give out information you feel uncomfortable disclosing (such as your social security number), and look for a "privacy policy" on their website.
Remember that these are "preliminary" loan offers, which means no immediate commitment on your part. You complete a simple, on-line short-form, and then you get several offers in return. The lenders that made the offers may wish to talk with you over the phone, but that's where the preliminary process ends. The ball is in your court to choose a product that meets your needs, or to keep shopping.
These services are offered for "FREE" and you should not be asked for any service charges at any time, ever!
Step 5: Understanding your Options
Let's put this all together.
If you've followed this simple plan, you will discover that there are indeed consumer loan products tailor made to meet everyone's needs. Remember to examine the terms and rates, obtain several loan offers, and then talk to the lenders over the phone. Find out who they are, and whether or not you'd like to do business with them. Throughout this process, stay informed by checking interest rates.
We've enjoyed providing this information to you, and we wish you the best of luck in your pursuits. Remember to always seek out good advice from those you trust, but never turn your back on your own common sense.
Sincerely, Webmaster Tom Levine
Copyright 2004, by LoanResources.Net
This article may be freely distributed so long as the copyright, author's information and an active link (where possible) are included.
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