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.
Showing posts with label foreclosure san diego. Show all posts
Showing posts with label foreclosure san diego. Show all posts
Tuesday, July 3, 2007
Saturday, June 16, 2007
Short sale and foreclosure misinformation
There is a great deal of misinformation about short sales and foreclosures on the net. I see the same potentially negligent information on websites from Florida real estate agents, Arizona real estate agents and California real estate agents.
I suspect the information comes from the same trainers. I frequently see these agents hold themselves out as "certified specialists" trained by a top real estate trainer or loss mitigation specialist.
Lets review the misinformation which I have seen come up in geographically limited searches like short sale florida, short sales san diego, short sales california, short sale bradenton and short sale sarasota.
Misleading statements:
1. There must be a hardship such as a lost job or a health concern for a bank to consider a short sale.
Response: Absolutely wrong. I have a bank considering a short sale right now. I reserved the right to submit appropriately limited financials later if necessary. I expressed my concern to the loss mitigator that this is a business transaction. While being cordial and circumspect, I let the bank know that in a falling market sentiment about hardship may be an inappropriate consideration. (for clients with assets.) Hint: the right statement in the beginning of the negotiation may minimize or eliminate any potential deficiency judgment or debt forgiveness tax claim by the IRS. (Contact me me if you would like to know why.)
2. Short sales cost the homeowner nothing.
Response: Not really, short sales do cost the homeowner his/her credit rating and the homeowner may lose use of the property which he or she could have had for a few extra months. Overall this statement does not seem that harmful.
3. Save your credit with a short sale.
Response: Right now dubious, soon to be incorrect.
4. You have to have a buyer before you can approach the bank with a short sale.
Response: Wrong, this is contrary to one of our proprietary strategies designed to get a property sold and avoid or minimize loan forgiveness.
5. A homeowner can authorize this Realtor to negotiate with the bank because she is certified specialist.
Response: This borders if not crosses the line of practicing law without a license. Actually as I think about it - it must be practicing law without a license. I welcome contrary opinions. I would love to hear from others on this issue.
6. To accomplish the short sale you should give the bank the financial information they request.
Response: Wrong, dangerous, practicing law without a license and very harmful to clients with assets. This has been discussed in a few places on this blog.
7. Then I see Realtors advising homeowners on bankruptcy options. Lawyers are afraid to give advice on the net. We always have disclaimers. Yet we see Realtors telling homeowners not to file for bankruptcy while letting the Realtor conduct short sale negotiations. Can you imagine how much these Realtors' Brokers are going to pay out to people who could have filed bankruptcy but did not because Realtors provided faulty legal advice and foreclosure services. Think about how many people a plaintiff's firm could get in a class action a year from now.
8. I have heard and read Realtors say a short sale is either going to lead to a deficiency judgment or a taxable event as loan forgiveness.
Response: Maybe not. I think you would have to be a educated as a lawyer and trained as a Realtor to understand why. If you spend time to thinking about Fair market value and what statements you might make to the bank to get the clock ticking, you might significantly minimize or eliminate a homeowners liability to the bank and the IRS. For now I do not feel comfortable publishing my thoughts on this subject because it is only my legal opinion, I have not yet negotiated with the IRS on this issue.
I offer to help the first person who contacts me with a large loan forgiveness tax bill from the IRS - for free - or at a very discounted rate.
I suspect the information comes from the same trainers. I frequently see these agents hold themselves out as "certified specialists" trained by a top real estate trainer or loss mitigation specialist.
Lets review the misinformation which I have seen come up in geographically limited searches like short sale florida, short sales san diego, short sales california, short sale bradenton and short sale sarasota.
Misleading statements:
1. There must be a hardship such as a lost job or a health concern for a bank to consider a short sale.
Response: Absolutely wrong. I have a bank considering a short sale right now. I reserved the right to submit appropriately limited financials later if necessary. I expressed my concern to the loss mitigator that this is a business transaction. While being cordial and circumspect, I let the bank know that in a falling market sentiment about hardship may be an inappropriate consideration. (for clients with assets.) Hint: the right statement in the beginning of the negotiation may minimize or eliminate any potential deficiency judgment or debt forgiveness tax claim by the IRS. (Contact me me if you would like to know why.)
2. Short sales cost the homeowner nothing.
Response: Not really, short sales do cost the homeowner his/her credit rating and the homeowner may lose use of the property which he or she could have had for a few extra months. Overall this statement does not seem that harmful.
3. Save your credit with a short sale.
Response: Right now dubious, soon to be incorrect.
4. You have to have a buyer before you can approach the bank with a short sale.
Response: Wrong, this is contrary to one of our proprietary strategies designed to get a property sold and avoid or minimize loan forgiveness.
5. A homeowner can authorize this Realtor to negotiate with the bank because she is certified specialist.
Response: This borders if not crosses the line of practicing law without a license. Actually as I think about it - it must be practicing law without a license. I welcome contrary opinions. I would love to hear from others on this issue.
6. To accomplish the short sale you should give the bank the financial information they request.
Response: Wrong, dangerous, practicing law without a license and very harmful to clients with assets. This has been discussed in a few places on this blog.
7. Then I see Realtors advising homeowners on bankruptcy options. Lawyers are afraid to give advice on the net. We always have disclaimers. Yet we see Realtors telling homeowners not to file for bankruptcy while letting the Realtor conduct short sale negotiations. Can you imagine how much these Realtors' Brokers are going to pay out to people who could have filed bankruptcy but did not because Realtors provided faulty legal advice and foreclosure services. Think about how many people a plaintiff's firm could get in a class action a year from now.
8. I have heard and read Realtors say a short sale is either going to lead to a deficiency judgment or a taxable event as loan forgiveness.
Response: Maybe not. I think you would have to be a educated as a lawyer and trained as a Realtor to understand why. If you spend time to thinking about Fair market value and what statements you might make to the bank to get the clock ticking, you might significantly minimize or eliminate a homeowners liability to the bank and the IRS. For now I do not feel comfortable publishing my thoughts on this subject because it is only my legal opinion, I have not yet negotiated with the IRS on this issue.
I offer to help the first person who contacts me with a large loan forgiveness tax bill from the IRS - for free - or at a very discounted rate.
Friday, June 15, 2007
SignOnSanDiego.com > News > Business -- Harvard: Housing slump to continue into 2008
SignOnSanDiego.com > News > Business -- Harvard: Housing slump to continue into 2008
Harvard Study said housing slump likely to continue into 2008. Study cites the subprime adjustible rate mortgages.
The article cited a professor from the university of San Diego as well.
Harvard Study said housing slump likely to continue into 2008. Study cites the subprime adjustible rate mortgages.
The article cited a professor from the university of San Diego as well.
Foreclosure and Short Sale Solutions
If you are Florida or California homeowner and your home is upside down, it seems you are now very fortunate. Swimming around you is now a thriving industry of foreclosure consultants, short sale specialists, Realtors, loan brokers and former "loss mitigation specialists" ready to dive in and help. Interestingly, attorneys do not yet seem to be making a big push into the recently expanding area of work. (I will discuss the reasons for this in a later blog.)
Lets review the players -
Loan Broker Mortgage Lender - What you may find interesting is that when you work with a loan broker most of you solutions will involve refinancing or taking out new loans. You may get this really nice large second mortgage with a interest rate well below market for six months. Or, you may work with one of the few brokers who can negotiate a short payoff with your bank and set you up with a new lender. (This may be a great option for some people, but, you do have to watch out for the loan forgiveness bill from the IRS.)
Realtor - When you work with a Realtor most of your solutions will usually involve listing and selling your home, to get you get out from under the debt. One of the pitches from many Realtors is that a short sale will save your credit. This is a dubious claim and it may be false. Again, watch out for loan forgiveness. You may need an accountant or a lawyer to negotiate with the IRS.
Foreclosure or short sale consultant - When you work with the foreclosure consultants most solutions involve paying 1000-2000 dollars or more upfront, and then letting the "specialist" negotiate with your bank. While this may be practicing law without a license it is certainly representation without a full quiver. Unfortunately a specialists ability to leverage a homeowners position is severely limited by the "specialist" lack of legal authority. There is no sincere option for filing a 13 and forcing the bank take a court ordered payment schedule. Again, watch out for the 1099 and the tax bill from the IRS.
Investor or scam artist posing as "Consultant" - You may even run into the "consultant who wants to help you by buying your home." He may even offer to let you sign over your deed so he can help you.
Except for the charlatans all of these "consultants" may be suggesting real solutions, which may be a great fit for the right situation. All those solutions should be in your tool box. There are also some solutions that only a lawyer may suggest.
We urge every upside down homeowner to speak with with someone from each vocation and consider each of these options before choosing a solution.
Of course ideally you might find all the solutions in one stop. Our group at upsidedownrealestate.com is set up so that you can work with loan brokers, Realtors and or Lawyers depending on your needs. And if you choose one of our solutions you have our lawyers on retainer to work with the IRS for up to 4 hours resolving loan forgiveness matter if you get a tax bill.
Some of our solutions require no up front fees and we always inform you of the fees before we do any work.
3 Easy Steps
1. Give us a call (941) 356-4653 or (760) 415-5873.
2. Discuss your options for free.
3. Get started on your solution.
We are located in San Diego and the Sarasota - Bradenton area of Florida. If your property is located in other areas we will be happy to work with you, but we will have to interview local Realtors to see if they can produce the data we need for some of the proprietary features in our short sale package.
Lets review the players -
Loan Broker Mortgage Lender - What you may find interesting is that when you work with a loan broker most of you solutions will involve refinancing or taking out new loans. You may get this really nice large second mortgage with a interest rate well below market for six months. Or, you may work with one of the few brokers who can negotiate a short payoff with your bank and set you up with a new lender. (This may be a great option for some people, but, you do have to watch out for the loan forgiveness bill from the IRS.)
Realtor - When you work with a Realtor most of your solutions will usually involve listing and selling your home, to get you get out from under the debt. One of the pitches from many Realtors is that a short sale will save your credit. This is a dubious claim and it may be false. Again, watch out for loan forgiveness. You may need an accountant or a lawyer to negotiate with the IRS.
Foreclosure or short sale consultant - When you work with the foreclosure consultants most solutions involve paying 1000-2000 dollars or more upfront, and then letting the "specialist" negotiate with your bank. While this may be practicing law without a license it is certainly representation without a full quiver. Unfortunately a specialists ability to leverage a homeowners position is severely limited by the "specialist" lack of legal authority. There is no sincere option for filing a 13 and forcing the bank take a court ordered payment schedule. Again, watch out for the 1099 and the tax bill from the IRS.
Investor or scam artist posing as "Consultant" - You may even run into the "consultant who wants to help you by buying your home." He may even offer to let you sign over your deed so he can help you.
Except for the charlatans all of these "consultants" may be suggesting real solutions, which may be a great fit for the right situation. All those solutions should be in your tool box. There are also some solutions that only a lawyer may suggest.
We urge every upside down homeowner to speak with with someone from each vocation and consider each of these options before choosing a solution.
Of course ideally you might find all the solutions in one stop. Our group at upsidedownrealestate.com is set up so that you can work with loan brokers, Realtors and or Lawyers depending on your needs. And if you choose one of our solutions you have our lawyers on retainer to work with the IRS for up to 4 hours resolving loan forgiveness matter if you get a tax bill.
Some of our solutions require no up front fees and we always inform you of the fees before we do any work.
3 Easy Steps
1. Give us a call (941) 356-4653 or (760) 415-5873.
2. Discuss your options for free.
3. Get started on your solution.
We are located in San Diego and the Sarasota - Bradenton area of Florida. If your property is located in other areas we will be happy to work with you, but we will have to interview local Realtors to see if they can produce the data we need for some of the proprietary features in our short sale package.
Arm resets
Interest rates on 30 year fixed jumped from 6.21 to 6.74 during the last month. Which means payments went from 1,839 to 1,944 dollars a month on a $300,000.00 loan.
Looking at it another way a borrower who can only afford 1839 a month can no longer afford a $300,000 house. He can only afford a 283,000 home.
According to south florida's Sun Sentinel.
Those higher rates are going to make it difficult for troubled homeowners to refinance in here in the Sarasota and Bradenton Florida area. I would not expect the rate of short sales or foreclosures to go down.
Looking at it another way a borrower who can only afford 1839 a month can no longer afford a $300,000 house. He can only afford a 283,000 home.
According to south florida's Sun Sentinel.
Those higher rates are going to make it difficult for troubled homeowners to refinance in here in the Sarasota and Bradenton Florida area. I would not expect the rate of short sales or foreclosures to go down.
Thursday, June 14, 2007
voiceofsandiego.org: News... A Gray May for Home Sales
25% fewer homes sold in May in San Diego than last year. And forelosures on the rise in may.
voiceofsandiego.org: News... A Gray May for Home Sales
voiceofsandiego.org: News... A Gray May for Home Sales
Subscribe to:
Posts (Atom)