• Not For Profit, But Is NHS For Fraud?

    Michael Henderson told the website Rebel Pundit that he initially went to the Neighborhood Housing Services (NHS) eight years ago because the local non-profit was “featured in a number of publications as leaders in foreclosure prevention” and had been recommended by the office of then-Mayor Richard M. Daley. According to the story published on November 3, 2011, Henderson is claiming that after turning to NHS for foreclosure help , he was “the victim of the very predatory lending tactics that NHS publicly claims to help protect homeowners from.”

    Among Henderson’s charges:

    • Henderson claims that NHS inflated his income, adding rental income even though the property was a single-family residence that was gutted at the time of the loan, making it impossible to have any renters. According to Pundit, NHS put the inflated income figure on all of his loan documents. While Henderson says he was making just over $50,000 annually at the time of the loan, the income listed on his application was $5,232.12 per month, or $82,785.44 yearly. The application claimed he would receive $1,650 in monthly rent.
    • Pundit said the recorded mortgage has an inaccurate legal description which adds about 1600 square feet to the lot. That extra land includes three additional empty lots the city now owns.
    • Henderson claims that he has been unable to receive one mortgage statement or escrow analysis for the past eight years. Payoffs would routinely take months to prepare even though competitive banks can often complete them in real time.
    • According to Pundit, Henderson also charges that he was allowed to make a payment of $185.83 for four consecutive years without once being penalized as late, even though the payment amount would be a negative rate on a $352,000 loan. $185.83 happened to be the exact amount of the monthly taxes and insurance payment when the loan closed.

    The article also said that an analysis of the closing documents Henderson provided revealed numerous predatory and fraudulent entries. According to Pundit, Henderson was charged more than 4 percent in closing costs, even though the organization claims to be a non-profit.

    It is unfortunate that there remains so many predatory lenders, but homeowners hoping to avoid to foreclosure should know that our Chicago bankruptcy attorney can help you stay in your house and get control of your debt through a Chapter 7 or Chapter 13 bankruptcy filing.

    Benjamin Brand Services – Chicago bankruptcy lawyer

  • Foreclosure ‘Rain Delay’ Coming To an End

    While home foreclosure activity in Illinois rose 9.7 percent in October compared to the previous month, the number was almost 26.2 percent lower than in October of last year when the rate was seventh-highest nationally. Crain’s Chicago Business reported on November 10, 2011, that a report from RealtyTrac Inc. found that Illinois had 12,522 foreclosure-related filings in October, or one for every 423 housing units in the state.

    Crain’s said the state’s numbers mirrored the national figures for people needing foreclosure help , as RealtyTrac found 230,678 foreclosure filings reported in October represented one in every 563 housing units.

    “The October foreclosure numbers continue to show strong signs that foreclosure activity is coming out of the rain delay we’ve been in for the past year as lenders corrected foreclosure paperwork and processing problems,” RealtyTrac CEO James Saccacio said in a statement, according to Crain’s. “However, recent state court rulings and new state laws keep changing the rules of the foreclosure game on the fly, creating more uncertainty in the housing market and threatening to prolong the road to a robust real estate recovery.”

    If the ever-changing rules of foreclosure are leaving you with questions about what options you have, our Chicago bankruptcy lawyer can show you how filing Chapter 7 or Chapter 13 will help end debt collector harassment and help you get deserved relief today.

    Benjamin Brand Services – Chicago bankruptcy attorney