 |  |  |  |  |  |  |
Check 21 - What is it, and how does it affect me?
"Our #1 reason is you"
Your savings federally insured to at least $100,000 and
backed by the full faith and credit of the U.S.
Government. National Credit Union Administration,
a U.S.Government agency.
backed by the full faith and credit of the U.S.
Government. National Credit Union Administration,
a U.S.Government agency.
We do business in accordance
with the Federal Fair Housing
Laws and the Equal Credit
Opportunity Act.
with the Federal Fair Housing
Laws and the Equal Credit
Opportunity Act.
A new look for a familiar blue sign means more protection
and less worry for you.
and less worry for you.
Hardly a day goes by without more bad news about mortgage woes across the
country. Bright spots seem nonexistent in this dark cloud—except possibly for one.
Some consumers looking to buy a home are wondering: Could I find a good deal
on a foreclosed house?
Good deals may exist, although that depends on the locale, the quality of the
foreclosed property, and the willingness of the owner or lender to negotiate.
You can buy a foreclosed house in four ways:
1. Through a foreclosure sale
2. At a foreclosure auction
3. From a lender who has taken back the property
4. From the U.S. Department of Housing and Urban Development (HUD)
Generally speaking, the first two methods in this list are best left to highly
experienced property buyers. You must be familiar with your state's foreclosure
laws, your rights as a buyer, and how the foreclosure process works. Mortgage
foreclosure laws and procedures vary by state.
The last two processes above are the least risky for buyers. You can buy a
foreclosed house from a lender who has taken back the property. That means the
property didn't sell at the foreclosure auction, and the lender took it back to sell it
through its "real estate owned" department. With these properties, known as
REOs, the lender usually has paid off taxes or liens owed on the property, and
handled any necessary evictions. As a buyer you get to inspect the property. Thus,
you avoid the nasty surprises that can spring up with preforeclosure sales or
foreclosure auctions.
Your ability to negotiate a discounted price will depend on the lender's situation. A
lender who has begun to accumulate foreclosed houses is more likely to want to
lower the sales price.
With HUD foreclosures, HUD sells homes to the public after Federal Housing
Administration (FHA) and Department of Veterans Affairs (VA) mortgage
foreclosures. Check with your local HUD office to find out about sales procedures,
or go to www.hud.gov.
country. Bright spots seem nonexistent in this dark cloud—except possibly for one.
Some consumers looking to buy a home are wondering: Could I find a good deal
on a foreclosed house?
Good deals may exist, although that depends on the locale, the quality of the
foreclosed property, and the willingness of the owner or lender to negotiate.
You can buy a foreclosed house in four ways:
1. Through a foreclosure sale
2. At a foreclosure auction
3. From a lender who has taken back the property
4. From the U.S. Department of Housing and Urban Development (HUD)
Generally speaking, the first two methods in this list are best left to highly
experienced property buyers. You must be familiar with your state's foreclosure
laws, your rights as a buyer, and how the foreclosure process works. Mortgage
foreclosure laws and procedures vary by state.
The last two processes above are the least risky for buyers. You can buy a
foreclosed house from a lender who has taken back the property. That means the
property didn't sell at the foreclosure auction, and the lender took it back to sell it
through its "real estate owned" department. With these properties, known as
REOs, the lender usually has paid off taxes or liens owed on the property, and
handled any necessary evictions. As a buyer you get to inspect the property. Thus,
you avoid the nasty surprises that can spring up with preforeclosure sales or
foreclosure auctions.
Your ability to negotiate a discounted price will depend on the lender's situation. A
lender who has begun to accumulate foreclosed houses is more likely to want to
lower the sales price.
With HUD foreclosures, HUD sells homes to the public after Federal Housing
Administration (FHA) and Department of Veterans Affairs (VA) mortgage
foreclosures. Check with your local HUD office to find out about sales procedures,
or go to www.hud.gov.
Buying Foreclosed Houses Not A Slam Dunk Deal
Fake Cashier's Checks - Don't Be a Victim
- Many of us have always said "Hey, it's a cashier's check, no need to worry." Wrong. Cashier's checks have
always been treated as if they are as good as cash, but that's not a sure thing anymore. Scammers are using
phony cashier's checks to take advantage of our trust. Unfortunately, the trickster is not often caught and
individuals and businesses suffer the loss. This means that all of us, individuals and financial institutions, must
change the way we do business with cashier's checks.
How does this fraud happen? Theses scammers are using PC's and scanners to make these counterfeit checks. In many cases, the
fraudster has gone into a bank or credit union, gets a legitimate cashier's check and then uses a scanner to copy it on to a computer.
With the help of sophisticated printing software, the scanned copy can be altered, payble to anyone, for any amount.
When you advertise an item for sale, such as a car or piece of equipment, you may place an ad in the local newspaper or on a popular
Internet site such as e-bay or Craig's list. Let's say you offer to sell your car for $5,000, a fair price. You make a deal with a buyer (many
times via e-mail), you receive a cashier's check and the buyer takes the item. You head to the credit union to deposit the cashier's
check. At some point, you will be using the money for other things, perhaps a down payment on another car. A week later, the credit
union calls and says that the cashier's check has been returned unpaid because it is a counterfeit. You have a negative balance in
your account and you do not have your car. You have been a victim of a scam and have lost $10,000.
A nastier version of the same scam has the buyer giving you a $7,000 cashier's check for the $5,000 car. The buyer tells you that he
already had a cashier's check for $7,000, but he trusts you to send him back the extra $2,000. You think the buyer must be legitimate -
after all he is trusting you to give back the extra $2,000. You deposit the $7,000 check, sign over the title, and send the buyer $2,000 in
cash. A week later the cashier's check is returned as counterfeit, and now you have lost $12,000.
What can you do to protect yourself? Call the financial institution that issued the check and verify that they issued the item. The
financial institution should be able to verify the amount, payee, date issued and the signature on the front of the check. Don't use the
information printed on the check to contact the financial institution. Use a phone book or Internet search to locate the phone number.
Don't sign over the title or release goods to a buyer until you have verified the check. To be really sure, after depositing the check, wait
at least 15 business days. Contact your credit union to see if the check has been returned before releasing sold goods or signing over
ownership. If you can't confirm that the item was issued or that the check has cleared, consider cancelling the transaction. For local
transactions, consider meeting the seller at their financial institution, and have the bank or credit union give you the check directly. That
way you can be assured that it is real.
Remember that genuine cashier's checks are as good as cash, but the fake ones can look just like the real thing. If you think that you
have been the victim of fraud, contact the Internet Crimes Complaint Center (IC3). The IC3 was founded six years ago as a partnership
between the FBI and the National White Collar Crime Center (NW3C). The NW3C is a nonprofit organization which assists state and
local law enforcement in fighting cyber and economic crime.
Find out more about the IC3.