New York City residents are now protected by new federal rules intended to protect homeowners from being unfairly preyed upon by unscrupulous mortgages companies. Under the new regulations, mortgage companies must supply homeowners with clear and detailed statements, notify them if interest rates will go up, and do everything possible to assist them in defaulting on their mortgages. There are also regulations in place to ensure that payments are quickly credited to accounts so that the number of clerical errors leading to erroneous foreclosures can be minimized.
New York City homeowners will also be protected from foreclosure if they are in the process of seeking mortgage modifications. This regulation is intended to keep mortgage companies from foreclosing on a home at the same time that the same company is in negotiations regarding loan modifications with the same homeowner. Because so many New York City homeowners have experienced so many mortgage difficulties over the past several years, these new regulations are meant to level the playing field somewhat and to provide a more effective way for those experiencing mortgage problems to avoid the loss of their homes.
Unscrupulous providers of mortgages have been blamed, in part, for the housing crisis not just in New York City, but across the nation, because they charged excessive fees, foreclosed in some instance without completing the necessary paperwork, and did not help homeowners to try to keep their homes before foreclosing. The new rules will help to protect borrowers in New York City and elsewhere from paying exorbitant premiums on insurance that the lender was requiring that they carry. A practice that lenders were engaging in with premiums, sometimes, three and four times higher than a typical policy.
In the event that a New York City homeowner does fall behind in mortgage payments, the lender will be required to begin a foreclosure notification process after two payments are missed. The process must outline acceptable alternatives to foreclosure such as modified monthly payments and the process for applying for those modified payments must be a single easy to use form that will be provided by the New York City mortgages company.
A new day is dawning for New York City homeowners and prospective homeowners when it comes to mortgages and being treated fairly by their lenders. Of course, there have always been those companies that were above board with their customers and handling their mortgages fairly. If you are looking at various mortgages from lenders in the New York City area, you will want to deal with those who have a great track record of customer service and of treating their customers with respect.
Problems with New York City mortgages should not be an issue for you when you deal with Members Mortgage Corp. Created to cater to the needs of union laborers who are seeking home mortgages, Members Mortgage Corp can provide you with the best mortgages available in New York City. Let Members Mortgage Corp help you at every step of the way.
