Avoid Bank Foreclosure Homes, Pick Right Lender- By: John Cutts
The Consumer Financial Protection Bureau plans to release a simplified form for mortgage disclosure to make sure borrowers will have an easier time comparing deals offered by different mortgage lenders. By doing so, they will be able to avoid mortgage default and risk their home ending up as bank foreclosure homes.
It is expected that by this time, the bureau has awarded the contract for the development of such form. The new form is the first project of the relatively-new agency, which is backed by the White House and Treasury Department. The goal is actually simple – make the market less profitable for lending giants like Wells Fargo, JP Morgan Chase, and Bank of America. In any case, it would even control the ballooning number of government tax foreclosures.
When borrowers are better informed, they tend to make the best financial decisions involving their homes. In the past, unscrupulous individuals convinced buyers to take out adjustable rate mortgages without the borrower realizing what they are really getting into. Most of the houses that ended up as bank owned homes were result of such unfair lending practices.
Lending giants are known to prefer letting a home end up in home auctions and become bank foreclosure homes. But if this form is released, you can expect tough competition among these lenders and certainly better mortgage products.
Studies have revealed that the shopping and comparing done by consumers have resulted to a significant price cut down, especially for consumer products.
Ideally, 80 percent of the current mortgage disclosure form will be replaced, but its content will still adhere to the Truth in Lending Act as well as the Real Estate Settlement Procedures Act. The present form is a bit bulky and tends to create confusion among consumers and considered to be costly, especially on the part of the borrower if their house ended up belonging to bank foreclosure homes.
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John Cutts has been educated in the finer points of the foreclosure market over 5 years.