Fioretti Foreclosure Workshop

Presented July 19,2011 Mario Pantoja, Director Illinois Department of Financial and Professional Regulation William Smirniotis Illinois Licensed Real Estate Broker

Who Owns My Loan?
Determining if your mortgage is Fannie Mae
http://loanlookup.fanniemae.com/loanlookup /
Must verify that you are owner or have owner’s consent
Determining if your mortgage is Freddie Mac
https://ww3.freddiemac.com/corporate/
Must verify that you are owner or have owner’s consent

Homeowner Protection Act
Law signed by Governor Quinn in April 2009
On Aug. 2, 2010, Gov extended HPA thru July 1, 2013
Gives consumers who fall behind on their mortgage payments a 90-day “grace period” during which the lender cannot begin foreclosure
During the 90-day period, a consumer can, with the help of a housing counselor, negotiate a workout plan with the lender

HPA Eligibility
At least 30 days behind on your mortgage payments
Received a notification from your lender or servicer about your right to seek housing counseling
Exercise your right to housing counseling and get the full 90 days!
One-time only per mortgage

HPA Eligibility

Additional Protections
On August 2, 2010, Governor Quinn signed the Save Our Neighborhoods Act of 2010.
Lenders will pay a $50 fee when they file a foreclosure complaint in court
Fees will go toward foreclosure prevention efforts, including grants to community-based groups to connect homeowners with counseling help and foreclosure prevention programs

Mortgage Fraud in Illinois

The Mortgage Fraud Task Force was established by the IDFPR to ensure that mortgage companies comply with the strict standards of conduct established by state laws
Since its inception, the MFTF has taken disciplinary action against more than 150 persons and entities and assessed fines in excess of $2 million and conducted a regulatory sweep of more than 150 mortgage companies
Homeowner Protection Initiatives

BEWARE of anyone who says they can “save” your home if you sign or transfer over the deed to your house
DO NOT sign over the deed to your property to any organization or individual unless you are working directly with your mortgage company and have YOUR OWN lawyer or housing counselor
Beware of Foreclosure Rescue Fraud

Avenue of Broken Dreams
South Side bungalow of 75-year-old woman was “stolen” by people she trusted
“ Friends” persuaded her into signing documents, including the deed to home of 30 years
IDFPR uncovered a slew of fraud and is actively battling to help woman keep her home

IDFPR Enforcement Successes 2007-Present

IDFPR Enforcement Successes
MFTF wins 2010 CLEAR Investigative Excellence Award
The Council on Licensure, Enforcement and Regulation (CLEAR) honored task force for its two-year “Avenue of Broken Dreams” investigation
2010

“ If it sounds too good to be true…”
Do not offer or agree to sell your name and/or credit to help keep “someone else” from losing their home or purchase a home
This is commonly referred to as “Straw Buying” but is better known as Fraud
“ Thou shall not covet thy neighbors goods…”
Many mortgage scam victims are approached by persons they know and trust through church and other religious activities
Don’t Become a Victim to Predators

There is NEVER a fee to get assistance or information about the Making Home Affordable from your lender or a HUD-approved housing counselor
BEWARE of any person or organization that asks you to pay a fee in exchange for housing counseling services or modification of a delinquent loan
Don’t Become a Victim to Predators

If you feel you have been duped during a residential loan transaction, or have paid someone for a loan modification file a complaint with the Illinois Department of Financial and Professional Regulation TODAY!!!
Or, by mail: IDFPR
James R. Thompson Center
100 W. Randolph Street, 9th Floor
Chicago, Illinois 60601
By phone: (800)-532-8785
Online: www.idfpr.com
File a Complaint…TODAY!

Foreclosure
A judicial proceeding by lender/servicer to obtain judgment against the borrower for his/her breach of promise to pay
Lender/servicer takes borrower’s interest in the house, which was given as security for the promise
Summons
An order to appear in court to respond to the foreclosure complaint
Do not ignore this information

What are my options?
Refinance
Pay off the entire mortgage
New loan with affordable monthly payment
Current employment is necessary
Workout
Lender/servicer agrees to new payment plan
Can you afford the proposed plan?
Seek legal advice before signing

Options
Short Sale
Agreement by lender/servicer to sell the property for less than is owed on a mortgage
Deed in lieu
Borrower surrenders property to lender to satisfy the loan and avoid foreclosure proceedings
Does not satisfy junior liens
Be aware of future liabilities!
Seek legal and tax advice!

Options
Apply for a modification through President Obama’s Making Home Affordable Plan
Today begins this process
Meet with a HUD approved counselor
You have the ability today to meet with a counselor even if your lender is present

Options
Graceful Exit
HUD counselor can assist in this process
Opportunity to rebuild your credit

Foreclosure Steps
Court Hearing
Borrower may appear in person or by a lawyer and contest the foreclosure
If no appearance, a default judgment may be entered and all proceedings continue
Many counties grant a continuance just for appearing in court.

Foreclosure Steps
Reinstatement
Within 90 days within the date of service, a borrower may reinstate the loan by fulfilling all payments, including fees and costs
Loan continues as normal
Public Auction
If property is not redeemed, judicial sale is held like an auction

Foreclosure Steps
In the end…
If the property could not be saved, the foreclosure is completed
Eviction
Work with the lender for a graceful exit

Important
Contact your lender/servicer as soon as you think you cannot make a payment, or contact a HUD-certified housing counselor in your community
Do not ignore telephone calls or correspondence from your lender/ servicer. The sooner you call, the better. Lenders do not want your house.
Do not seek assistance from individuals who make you an offer that is too good to be true

If you feel you have been duped during a residential loan transaction, file a complaint with the Illinois Department of Financial and Professional Regulation TODAY!!!
Or, by mail: IDFPR
James R. Thompson Center
100 W. Randolph Street, 9th Floor
Chicago, Illinois 60601
By phone: (800)-532-8785
Online: www.idfpr.com
File a Complaint…TODAY!

Fioretti Foreclosure Workshop

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