Short Sale, Foreclosure and Strategic Default


Friday, July 6, 2007

Best Markets for Buyers - Yahoo! Real Estate

Best Markets for Buyers - Yahoo! Real Estate

Best Markets for buyers. Tampa is leading the way and if Sarasota were larger it would have been included in the top 10.

The determination was based on supply. Supply was caused by the amount of investors who purchased homes. The good news is that the Tampa is strong economically according to the article.

Tuesday, July 3, 2007

State shuts down alleged real estate scammer

At least two neighborhoods where the company focused its operations have been hollowed out: On several streets in the Copper Canyon area of western Murrieta and several others around the SCGA golf course in eastern Murrieta, notices of "bank-owned property" are displayed in front-facing windows and alongside "for sale" signs. Between 100 and 150 houses appear to be involved, based on interviews with former owners and a semi-public real estate database.

It isn't clear to what extent the foreclosures could have on home prices in particular neighborhoods, though median prices in Murrieta have fallen about 15 percent since peaking above $500,000 in May 2006, compared to one-year declines of 3 percent to 10 percent in most parts of Lake Elsinore, Menifee and Temecula, according to DataQuick Information Systems, a research firm.

State shuts down real estate player - The Californian / North County Times -

Note: to people looking in Carmel Valley
Ocean Ridge Equity Inc., another company named as a defendant in one of the lawsuits, continues to operate at an address in San Diego's Carmel Valley neighborhood. The company listed Montecastro as its licensed officer until earlier this year, and several of its employees had either worked for Stonewood Consulting or approved loans for Stonewood clients while working in the San Diego office of a national subprime mortgage lender, according to others who previously worked for the lender.

Foreclosure "prevention" scams

After reading this article homeowners should be sure not to turn over their deed without speaking with an attorney first.

New Scheme Preys on Desperate Homeowners - New York Times

this article details a foreclosure "help" scam that involves a foreclosure consultant, fake buyer, the transfer of the deed and a refinance and cash out by the fake buyer.

Ms. Johnson met with Home Savers officials and agreed to what she thought was a refinancing of her loan at a lower interest rate with more affordable monthly payments. But the Johnsons unknowingly transferred their deed to a straw buyer working with Home Savers, court documents contend.

That stand-in buyer qualified for a type of mortgage that would let him take cash out as part of the financing. He borrowed $425,000 against the house and pocketed $134,000, which included the Johnsons’ equity built up over the years.

Now the Johnsons are fighting to stay in their house and to recover their equity.

Monday, July 2, 2007

CA Real estate Pre-foreclosure

Researchers found that 10% of California homes on the MLS are in foreclosure. The Researchers considered a home to be in foreclosure if the listing Realtor designated the propoerty to be "short sale", "real estate owned", "reo" , or "in foreclosure" in the MLS data sheet.

I suspect the finding of 10% is low. Many Realtors are told by short sale trainers not designate a home as a "short sale" until responding to an offer with a counter offer.

I have been asked whether a a Realtor should "pre-disclose" the short sale. I thought it was a tough question. Ethically it seems like you should not make another Realtor jump through the hoop of making an offer before telling them you have to get bank approval.

However, ethically a Realtor also has a duty to the homeowner. Many Realtors are already avoiding short sales because many banks are taking to long to review the offers. By designating a listing as a "short sale", a Realtor may be preventing Real buyers from previewing their home.

CA Real Estate and Homes