New York Attorney General Andrew Cuomo investigate mortgage rescue companies

New York Attorney General Andrew Cuomo expanded his investigation on mortgage rescue companies that abuse homeowners. Cuomo send 182 seal down letters to companies that list themselves as mortgage rescue companies. Cuomo said he sent out another 31 letters to mortgage rescue companies to end all illegal behaviors.

Cuomo said the companies regularly gather fees illegally from people on the verge of losing their homes to stop foreclosure. Then the companies failed to help them decrease their mortgage payments.

Cuomo said thousands of New Yorkers have been distressed by mortgage rescue scams. Upto 64,778 homes have been foreclosed on in New York since May 2010. Many The rescue companies fail to aid consumers in lowering their mortgage payments or saving their homes.

San Jose Bay area people struggle to stop foreclosure

San Jose Bay area peoples explained their struggles to stop foreclosure. Many of them eventually got their expenses lowered through Federal Home Affordable Modification Program. Also many others are not eligible and are presently waiting for their chance to stop foreclosure.

The inquiry done by Treasury Department and community advocacy group was an upsetting prompt. The Obama administration loan modification program is worsening. It has enduringly altered conditions for 350,000 borrowers, about 10% of its goal. It is obvious that banks must decrease loan balances for troubled borrowers. It will work not only for homeowners and for economy of lenders, who in many cases can improve more of their investment this way than in a foreclosure sale.

Smaller and temporary changes such as interest rate decrease is not helpful for the borrowers who owe more than their homes now are value in part because the foreclosure wave has decreased their value. The decrease in principal of house owners has no incentive to make payments.

Mortgage applications are decreased last week

Mortgage applications are decreased to 1.2% last week when compared with the previous week according to the weekly review by the Mortgage Bankers Association or MBA.

The purchased applications are decreased to 2.3 % and they were 36.8% lower than they were the same week last year on an adjusted basis. The decrease in purchase applications was determined by a 4.4 % decrease in applications for government supported mortgages, according to the MBA. The conventional purchase applications are actually increased to 1%.

The majority of mortgage rates were at their lowest point since middle of May. 30-year fixed-rate mortgages are decreased to 4.75%, 15-year fixed-rate mortgages are decreased to 4.19% and 1-year ARMs are decreased to 7.05%.

HAMP Loan Modifications increasing

The United States Treasury and Department of Housing and Urban Development released a monthly housing scorecard on Monday and announced that housing is on the recover. The report also confirms more loan modifications canceled than approved.

More than 340,000 households had expected long term reduction in mortgage payments under the Home Affordable Modification Program or HAMP by the end of May and are making on time payments. More than 429,696 assessments had been canceled, up from 277,640 in April. Upto 468,000 houses were still in trial phase, with 190,000 trapped there for at least six months because banks are moving gradually.