Real Estate Transactions and Foreclosure Control—A Home Mortgage Reference Handbook: The Causes and Remedies of Foreclosure Pains

Copyright © 2015 Frank M. Igah, Ph.D.

All rights reserved. No part of this book may be used or reproduced by any means, graphic, electronic, or mechanical, including photocopying, recording, taping or by any information storage retrieval system without the written permission of the publisher and the author except in the case of brief quotations embodied in critical articles and reviews.

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ISBN: 978-1-4917-2624-2 (sc)

ISBN: 978-1-4917-2666-2 (hc)

ISBN: 978-1-4917-6455-8 (e)

Library of Congress Control Number: 2014903360

iUniverse rev. date: 06/04/2015

List of Tables

List of Figures

Table of Contents

Federal Land Agreements

Summary of Boom Periods

Calculation of Payment Interest

Investment Selection Guidance

Table Of Book Parts

List of Figures

Affiliated Disciplines

Sequence of Human Needs

Proportion of Real Estate Properties

Truth in Lending Act (TILA)

A second TILA Form

A copy of Good Faith Estimates (GFE) Form

A Copy of HUD:1 Settlement Statement

Contents

Acknowledgement

Tables And Figures

Chapter 1 Preliminary

Introduction of the Book

The Industry Affiliations

The Target Audience

Main Objectives

Author Statements

Disclamation

Affiliated Disciplines

Chapter 2 Real Estate Mortgage Transactions

Mortgage Loan

Recommendation

The Real Estate Industry

Significance and Justification

Real Estate Purchase Contract

Chapter 3 Home Ownership

The Need for a Home

Federal Land Agreements

Summary of Boom Periods with Causes and Duration

Proportion of Real Estate Properties with Diagram

The Distribution of the Diagram Above

Advantages of Single Family Homes

Mortgage and Rent Compared

Mortgage Family Homes

Choosing a Home

Home Investment

Classes of Business and Financial Risks

Facts that Concern Buying Homes

Chapter 4 Plans And Actions Before Mortgage Financing

Mortgage Risk Analysis Before Financing

Required Funds Before Financing

Down Payment of Funds Before Financing

The Closing Cost Before Financing

Ratio Analysis Before Financing

Case Example

Testing and Reconciling

Credit Endorsement Before Financing

Chapter 5 Mortgage Frauds And Cheating Methods

Real Estate Frauds

Definition of Real Estate Fraud

Types of Real Estate Fraud

Classifications of Real Estate Fraud

False Information

Fraud Activities by Other Entities

Title Companies or Settlement Agents – Fraud Activities.

The Appraisers - Fraud Activities

Adverse Effects of Mortgage Fraud

Legal Rights of Home Purchasers

Chapter 6 Plans And Actions During Mortgage Financing

Classifications of Funding or Financing Sources

Real Estate Negotiation

Types of Mortgage Products

Land Contract Mortgage

Balloon Mortgage Contract

Noxious Real Estate Purchase Mistake

Mortgage Documents

Mortgage Loan Closing

Chapter 7 Plans And Actions After Mortgage Financing

Monthly Mortgage Payments

Late Payments

Interest Payments

Calculation of Payment Interest

Payment Incentive

Investing Returns of Home Owners

Security Risk

Better Selection Of Investments

Classifications of Security Issuers (Channels), (Igah, 1983).

Chapter 8 Foreclosure Causes And Repossession Pains

A. D E S C R I P T I O N

Controllable – Foreclosure with Repossession Session

Uncontrollable

B. Remedies Or Mitigations To Solution For Foreclosure With Repossession Pains

Solutions for Foreclosures with Repossessions

C. Immediate And Remote Causes

Immediate Causes (Foreclosure with Repossession Pains)

D. Remote Causes (Foreclosure with Repossession Pains)

Chapter 9 Accommodation Program - Problem Mitigation

The REFA Program Data, with Analysis and Regression, including to but not necessarily limited to:

Service Fee

Advantages of the Lenders

Advantages for the Borrowers

REFA Foreclosure

Chapter 10 Reverse Mortgage

Reverse Mortgage - Definition

Importance of Reverse Mortgage Are:

Required Qualifications of a Senior Home Mortgagor

Advantages of Reserve Mortgage Include:

Disadvantages of Reserve Mortgage Include:

Chapter 11 Definition Of Terminologies

Text Terminologies

Chapter 12 S U M M A R Y

Table Of Book Parts

Bibliography

Dedication

THIS BOOK IS DEDICATED TO MY LOVELY WIFE AND CHILDREN.

TO THE MEMORY OF MY LATE PARENTS,

WHO VALUED EDUCATION TO THE UTMOST LEVEL,

MAY THEIR SOULS REST IN PEACE.

ALSO, I DEDICATE THIS BOOK TO MY BROTHERS AND SISTERS

Acknowledgement

Thanks to the individuals who helped with my book in many ways. They offered services, assistance and cooperation to the book. The first person is my spouse, (Flora O. Igah, PhD, CRC). Her constructive criticisms and suggestions helped steer me to many significant and thoughtful ideas. Special thanks to my children, Frances Chi-chi C. Igah, (BS, MS) and Flora Princess E. Igah, (BS, MS, Doctoral candidate). They handled most of the computer works in the book. Moreover, sincere recommendations and deep assistance are offered to me by my other children named Dr. Katherine Ada Igah, Roswitha O. Igah, Doctoral candidate Madonna O. Igah and Frank, M. Igah Jr. I appreciate the encouragement and spiritual support received from my brother, Engr. Edward U. Igah and his wife Felicia Igah, my sisters Philomena O. Igah and Bridget N. with Joe Emelife, my parents-in-law Raymond and Maria Offiah, brothers and sisters in-laws, nephews, nieces, cousins and finally, my family friends including Peter and Roswitha Dilger (Western Germans).

I extend warm appreciation to the Realtors and Financial Professionals who responded to my investigative interrogations. I finally send gratitude to home owners, buyers and sellers that will read this book.

Front Matters

Overview Of The Chapters

FRONT MATTERS

1. The following information introduces the front matters. This book has twelve chapters. The twelfth chapter contains a summary with recommendations.

CHAPTER TWO

2. Chapter two introduces the real estate industry, audience, main objective and the author. The author outlines his knowledge, skills, experiences, abilities and unique qualification. This chapter explains the importance of home purchases. After reading this text, the readers will understand the readers Mortgage Loans, Real Estate Purchase Contracts and the Significance of this work.

CHAPTER THREE

3. Home mortgage and real estate transactions are well defined in this chapter. Home purchase ownership financing is described. Chapter three explains the etiology of real estate in the United States of America. In the beginning (1976), the land, garden and trees have been issued to the citizens by the Federal government. Also, the Federal government purchased many land from 1780 – 1865. The text of land ordinances are in chapter three.

CHAPTER FOUR

4. Chapter four explains the core activities for Before mortgage financing. This chapter, also, explains ratio analysis, case examples, business risk and financial risk in mortgage transactions. Finally, personal financing success can be summarized by Character, Capacity, Collateral, Condition, Communication and Industry Deceits.

CHAPTER FIVE

5. Chapter five explains Frauds, Cheating, and property theft against home buyers. The types of frauds are higher profit and property theft. Some frauds and activities come in the form of flipping, lies, lumping, misleading and predatory lending. Finally, the home buyers and owners are explained to them as Legal Rights or Acts (Laws) for home actions. This action will help to educate real estate buyers, sellers and home owners.

CHAPTER SIX

6. Chapter six shows necessary actions for During mortgage financing. In most cases in the real estate industry, a purchase financing of less than fifty thousand dollars is not lucrative and not accepted. Moreover, mortgage financing have first, second and third levels of funding sources. Also, mortgage products or resources include Veteran Administration Conventional Mortgage, Package Mortgage, Blanket Mortgage, Budget Mortgage, land contract Mortgage and balloon contract Mortgage.

CHAPTER SEVEN

7. Chapter seven educates the home owners on actions to engage in After mortgage financing. Also, this chapter emphasizes the importance of keeping up with the monthly payments. Lenders understand as primary sources of risk for home owners. Further, security risks and diagram illustrations are Common stocks, Preferred stocks, Loans, and Real Estate stocks. Also, investment issuing channels which have been collaborated the classification of security loans are listed as well.

CHAPTER EIGHT

8. The most significant issues of Foreclosures with Repossessions are described in chapter eight. This chapter affects foreclosure causes, repossession pains, interest rates, remedy control and insurance protection. In this chapter, the author writes about how to stop or mitigate foreclosure damages and/or pains. This chapter concludes by mandating all citizens, especially home buyers and owners, to take the suggested actions to eliminate unfair practices, unjust actions and foreclosure punishments. In most cases, a home owner with foreclosure and repossession may suffer homelessness, acute poverty, Hopeless hunger and more. Finally, this book portrays how best to take care of owner sufferings from foreclosure and repossession.

CHAPTER NINE

9. The ninth chapter introduces and explains a new concept called the Real Estate Foreclosure Accommodation (REFA) program. The program’s objective is to reshuffle mortgage financing and accommodate foreclosures with repossession. A mortgage in default is reshuffled during refinancing and with special features, rates and calculations which are uniquely related to the foreclosure victims. Moreover, if the REFA program is successfully accomplished, the result will give birth to Reshuffled Mortgage Financing (RMF). RMF mortgage is a newly structured deal that will permit a foreclosure victim to move back into his or her home with less demanding an affordable agreement.

CHAPTER TEN

10. Reverse Mortgage Program (RMP) is explained in details. The program is structured to reverse the payment of a mortgage. This program is introduced to assist home owners with an alternative way to avoid foreclosure with repossession. The home owner instead of making a mortgage payment to a bank, the bank makes mortgage payments to him or her. Thus, the home owner becomes the mortgagee and the bank becomes the mortgagor. When both the home owners (his and her spouse), if any, are deceased, the home will go to the bank.

CHAPTER ELEVEN

11. Chapter eleven shows the features and definitions of terminologies used in this study. This is necessary because Real Estate industry has its own jargon or unique terminologies and moreover, a word may have more than one meaning. The definition in this chapter will help readers and users of this book to fully comprehend the context of certain words used in the text.

CHAPTER TWELVE

12. The conclusion and summary of the book is made succinct in this chapter. It shows a short synopsis of the text contents.

Tables And Figures

Table and Figures are used because of the questions asked when this book was presented to a group of real estate professionals. The questions that are asked are included. It presents or illustrates topics of tables and figures. The author agrees and promises that table(s) and figure(s) will be included in the book’s text.

CHAPTER ONE

Preliminary

Chapter one illustrates this book, industry affiliations, target audience, main objective and author statements (partial autobiography). They show the ideas of the preliminary actions.

Introduction of the Book

Real Estate Transactions & Foreclosure Control book emphasizes the need for adequate knowledge and skills before involving oneself in a real estate transaction. Continuing, it provides significant information about home buying, selling and foreclosure that everyone needs to know and understand, especially those engaging in the real estate industry. Real estate professionals, non real-estate professionals (buyers and sellers) and new-arrivals in the industry will benefit from the evidence and advice in the book.

The Industry Affiliations

Research shows that Real Estate is the most significant industries in any society. As presented with a figure, real estate has affiliations with many other organizations. It also entertains a wide scope of assistance in the employment systems. Many employment opportunities develop from the network in the real estate industry and its affiliated entities. This is one reason why the industry has immeasurable influence on the economy of a country or any other society. Unfortunately, whenever the real estate industry of the country takes a downward turn, the economy of that country yields a similar lower turn.

The Target Audience

The target population for this study is anyone who benefits or wishes to benefit in any way or manner from the real estate industry. The contents of this book reflect what everyone needs to know about real estate transactions such as, real estate negotiations and foreclosures with repossessions. Research shows that, globally, most people live in homes or houses. Homes can be built with grass, leaves, mud, cement, bricks, metals, woods, stones and other materials. Nevertheless, each style when built is recognized as a home or shelter where people reside. If the concept of a home