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

consentDetermining 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,

2013Gives 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

2010MFTF 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

“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 FloorChicago, Illinois 60601

By phone: (800)-532-8785Online: 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 liensBe 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 normalPublic 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: IDFPRJames R. Thompson Center

100 W. Randolph Street, 9th FloorChicago, Illinois 60601

By phone: (800)-532-8785Online: www.idfpr.com

File a Complaint…TODAY!