Beware of the Short Sale Scam
Because of the large number of short sales and because they promise to remain strong for the next five years, they are the perfect playing field for unscrupulous scammers.
Unlicensed “Short Sale” negotiators are approaching homeowners in distress and asking for upfront money to negotiate with lenders. This is illegal. Only attorneys and licensed brokers can ask for money up front – and only after the Department of Real Estate approves the agreement with an individual seller.
These “so called” Short Sale negotiators, including some real estate agents are lowballing offers to overwhelmed banks. This is called “flopping.” The home is then flipped to a waiting buyer for a much higher price. Beware when you are asked to use one of these “floppers” title companies. This could be a clue you are involved in a flop.
Another practice that is happening with regularity is that often the holder of a 2nd mortgage on the property is demanding extra money outside of escrow in a “secret deal”, because they don’t want the primary lender to know. If you don’t play ball with them they will refuse to approve the sale. It is out and out blackmail and extortion. The government really needs to crack down on this practice.
Some homeowners, especially savvy, well-off owners who owe far more than their houses are worth, are hiding savings and income to persuade lenders to agree to short sales. Many can afford their mortgages, but know it will take them years to recoup their 2006 values.
If someone asks you for money to negotiate a Short Sale, you should probably look elsewhere for help. HELP IS FREE! There are many well qualified people who can help for free. Look for an agent who holds a CDPE or SFR designation. These agents have been trained to help you through the process.
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Archive for the ‘short sales’
Beware of Short Sale Scammers
Delinquencies and Foreclosure Starts Increase in First Quarter
The delinquency rate for mortgage loans on one-to-four-unit residential properties rose to a seasonally adjusted rate of 10.06 percent of all loans outstanding in the first quarter, up 59 basis points from the fourth quarter, and up 94 basis points from one year ago, according to the recently released Mortgage Bankers Association’s (MBA) National Delinquency Survey.
The delinquency rate includes loans that are at least one payment past due, but does not include loans in the process of foreclosure. When you consider that current loans in the foreclosure process already are not being counted, the numbers are very sobering. The percentage of loans in the foreclosure process at the end of the first quarter was 4.63 percent, an increase of five basis points compared with the fourth quarter of 2009 and 78 basis points from one year ago. That difference from a year ago is very dramatic, no matter how one wants to spin it.
Foreclosures continue to be a big issue in the marketplace. With the prospect of a lot of adjustable rate mortgages taken out in 2007 and 2008 readjusting in 2012 and 2013, it looks we may need to hunker down for the long haul.
Short Sale and Foreclosure Resource SFA
Having earned the CDPE designation was a great step in a quest to help homeowners facing foreclosure. Recently I added to that designation with the SFR which is the National Association of Realtors course with certification upon passing course materials and exams for those agents interested in working short sales. It stands for Short Sale Foreclosure Resource.
Sellers facing foreclosure deserve representation by knowledgeable agents. The vast majority of agents certainly want to do a good job for a seller in distress. Wanting to do a good job and having specialized training are distinctly different. The details, follow-up and timelines in the foreclosure process are very precise and require specialized training to insure the greatest possibility of success.
An agent would be much better advised to refer short sales to a verifiable short sale specialist, earn a referral and praise from their clients for their help than muddle through an unfamiliar process and possibly end up with less than a favorable result.
Keep Your Eye on The Foreclosure Numbers
Foreclosure trends for the month of February, 2010 show 47, 035 Notices of Default nationally, with 30, 881 in California and 1, 573 in Orange County. Notices of Trustee Sales show 86,595 nationally, with 26,591 in California and 1,493 in Orange County. Bank owned properties nationally came in at 80,232 with 12,591 in California and 400 in Orange County.
According to many real estate experts, 2010 will be a good time to buy a foreclosure or pre-foreclosure home, an investment property or a vacation rental.
There is a lot of confusion between HAMP and HAFA
There is a lot of confusion between HAMPand HAFA. HAMP is the Home Affordable Modification Plan and HAMP is the Home Affordable Foreclosure Alternative program. Under one program (HAMP) you are trying to get a loan modification on your loan/s. Under the other program (HAFA) you are trying to find an alternative to a foreclosure by selling your home using the short sale process or giving your property back to the bank using a Deed in Lieu of foreclosure.
If you qualify under HAFA to sell your home and your lender is identified as subscribing to the HAFA program, you, as the borrower will be fully released from all liability for repayment of the loan.
Because, in any case, there could be significant tax and credit issues, it is always best to check with your attorney and tax advisor as to your personal situation.
What are the eligibility requirements for a HAFA Short Sale?
What is HAFA?
The Short Sale Seller Interview
Interviewing the seller in pre-foreclosure is an important part of the short sale process. Not all sellers will qualify.
There are 9 Ways to Avoid Foreclosure
A CDPE will make the difference!
I have just finished passing all of the requirements to become a CDPE (Certified Distressed Property Expert).I am very excited about this, as it will allow me to make a real difference in the lives of so many homeowners.
When faced with a financial hardship, many families reach the point where they can no longer afford their mortgage payments and have fallen behind or are just a payment or two away from falling behind in their payments. This is a very scary place to be. While this situation is an economic one, it is even more an emotional one. We see responses from out there from out and out panic to people who feel completely helpless to those who pretend it isn’t happening. People in this situation are under incredible stress as they see their whole world crashing down around them. Most people just don’t know what to do. They’ve seen ads for help (usually requiring some sort of payment), they’ve heard nightmare stories about short sales and many have tried one of the loan modification programs available and have not qualified. This is not a process to undertake without aligning ones self with an expert.
Most agents want very much to help, but wanting to help and having the educational background to do so are a world apart. You need a CDPE, (an agent or broker who has the knowledge, the insider track, has intimate knowledge of the data required by the lenders and knows how to accelerate your file when time issues arise). You wouldn’t think of having a friend who loves numbers do your taxes or a non-surgeon perform heart surgery. You need a professional who understands the process and can walk you through it. You need a CDPE. A one-hour, no-obligation free consultation is yours for the asking.
Not all sellers will qualify. There is a qualification questionnaire that will help us determine, if we can be of help. Call us today. 949-682-5416. Time is not your friend, but we are.
Barbara Amstadter
Named 2009 "Realtor of the
Year", Barbara
Amstadter is a name well recognized in the local community. She served as a co-founder of the "Committee of 4000", representing the owners of 4000 leasehold parcels in a legal fight for "leaseholder" rights. She helped negotiate the final monetary settlement, the largest in US history at the time.
Susi Scholl
Susi brings extensive
backgrounds in escrow
and new home sales to the 22 year successful partnership of Barbara and Susi. She is, also, a recipient of the 15 year "Legend" award (bestowed on only 3 agents out of 66,000 worldwide at the time). Susi and Barbara have been ranked in the top 1% of realtors internationally year in and year out.
