Seven Foreclosure Scams To Watch Out For - Forbes.com
a run down of foreclosure scams
equity skimming
equity stripping
phony counseling agencies
lender scams
phony loan transactions
loan flipping
Internet phone scams
Bottom line.
If you live in San Diego California or the Sarasota Bradenton area of florida -
You may need a lawyer - you may need a Realtor you may need both. I can not think of any circumstances where it would be advisable to pay a short sale consultant or foreclosure consultant instead of hiring an experienced lawyer.
You can get a lot of legal work for the consultants fee and the rest of the work in a pre-foreclosure can be done by a Realtor in exchange for the listing.
Tuesday, June 12, 2007
Monday, June 11, 2007
Most Resilient U.S. Real Estate Markets - Yahoo! Real Estate
do not know if i believe them but this author says the bottom is in in in places like Seattle and Charlotte and is just about in the Tampa. Market.
Also claims San Diego is may be O.K. if it can whether the correction.
The author astutely points out the inventory overhang is a critical factor.
My research and experience show that the old real estate saw is correct.
under 9 mos give a take a month or so you have a sellers market. Over 9-10 mos you have a balance market and over 10 months of inventory you have a buyers market. As you get higher inventory you get declining prices.
Sure so this in the Sarasota Bradenton market.
We went from two months inventory to 10 mos inventory in about 2-3 mos. When the market brook we saw housing pouring onto the market. Which was sure sign of investor supply.
Most Resilient U.S. Real Estate Markets - Yahoo! Real Estate
Also claims San Diego is may be O.K. if it can whether the correction.
The author astutely points out the inventory overhang is a critical factor.
My research and experience show that the old real estate saw is correct.
under 9 mos give a take a month or so you have a sellers market. Over 9-10 mos you have a balance market and over 10 months of inventory you have a buyers market. As you get higher inventory you get declining prices.
Sure so this in the Sarasota Bradenton market.
We went from two months inventory to 10 mos inventory in about 2-3 mos. When the market brook we saw housing pouring onto the market. Which was sure sign of investor supply.
Most Resilient U.S. Real Estate Markets - Yahoo! Real Estate
pre-forclosure options - selling your home
After reviewing all your options you may determine there is no reason for you to "save" your home.
There are a host of legal issues to consider such as whether there may have been predatory lending. Once you run through the legal checklist some of the options you may consider will be
1. deed in lieu of foreclosure or jingle mail
2. selling to an investor
3. If you have time, you can sell to the public by yourself or with a Realtor
4. If you are upside down (you will net less than you owe)you may negotiate a short sale with the lender. Most short sale advisers incorrectly indicate that you must have a buyer before you begin a short sale negotiation. (This may be because the adviser is actually trying to buy your home via a short sale.)
5. You can allow the foreclosure to happen (although this usually not the best option.)
Some of the Risks:
1. Deficiency judgment (if not part of the negotiation process.)
2. Tax bill from the IRS for debt relief (may put you in a higher tax bracket.
3. Scams
4. Credit
There are a host of legal issues to consider such as whether there may have been predatory lending. Once you run through the legal checklist some of the options you may consider will be
1. deed in lieu of foreclosure or jingle mail
2. selling to an investor
3. If you have time, you can sell to the public by yourself or with a Realtor
4. If you are upside down (you will net less than you owe)you may negotiate a short sale with the lender. Most short sale advisers incorrectly indicate that you must have a buyer before you begin a short sale negotiation. (This may be because the adviser is actually trying to buy your home via a short sale.)
5. You can allow the foreclosure to happen (although this usually not the best option.)
Some of the Risks:
1. Deficiency judgment (if not part of the negotiation process.)
2. Tax bill from the IRS for debt relief (may put you in a higher tax bracket.
3. Scams
4. Credit
Pre foreclosure - keeping your home
Wish to keep your home?
Here is part of our checklist
Potential Legal Outs or leverage
1. Predatory Lending
2. Non compliant documents
3. Faulty closing
4. Overcharging on the loan
Standard ways to prevent foreclosure
1. Pay off the entire loan
2. Pay the reinstatement amount
3. Mortgage Modification or Negotiate a new repayment plan
4. Refinance the loan with your lender or a new lender
5. Special Forbearance
6. Partial Claim against FHA insurance fund
7. Combination of the above
8. Short payoff and refinance with a lender for a new lower amount
(you usually need a very smart bank or a solid legal position for this)
9. Repayment plan forced on the bank though chapter 13 workout plan.
some of the Risks
1. Deficiency suits for the short fall between loan and the amount collected. (this may be subject to negotiation if applicable.)
2. IRS bill which could change your tax bracket for the loan forgiveness
3. Giving the bank financial information about the location and size of your assets.
4. Speaking with an adviser who can not protect your conversations from discovery by third parties.
5. Watch out for scams.
Here is part of our checklist
Potential Legal Outs or leverage
1. Predatory Lending
2. Non compliant documents
3. Faulty closing
4. Overcharging on the loan
Standard ways to prevent foreclosure
1. Pay off the entire loan
2. Pay the reinstatement amount
3. Mortgage Modification or Negotiate a new repayment plan
4. Refinance the loan with your lender or a new lender
5. Special Forbearance
6. Partial Claim against FHA insurance fund
7. Combination of the above
8. Short payoff and refinance with a lender for a new lower amount
(you usually need a very smart bank or a solid legal position for this)
9. Repayment plan forced on the bank though chapter 13 workout plan.
some of the Risks
1. Deficiency suits for the short fall between loan and the amount collected. (this may be subject to negotiation if applicable.)
2. IRS bill which could change your tax bracket for the loan forgiveness
3. Giving the bank financial information about the location and size of your assets.
4. Speaking with an adviser who can not protect your conversations from discovery by third parties.
5. Watch out for scams.
Sunday, June 10, 2007
San Jose Mercury News - `Short sales' can bail out underwater borrowers
short sale article in california.
Explains that is critical that the listing agent can take a leadership position with a bank during a short sale negotiation.
Which is true. But I think leadership involves more than waiting for an offer to get submitted and then starting the process. A listing agent combined with an attorney can take real leadership role with the bank.
There are reasons to get these negotiations done quickly with a bank. There are ways to frame the negotiation so that the homeowner does not get stuck with an every increasing potential IRS bill for debt forgiveness.
In my opinion for many homeowners it may be negligent to wait to a buyer comes forward negotiate a short sale and tell the homeowner well the bank is not going to seek a deficiency judgment but you will get loan forgiveness bill and there is nothing you can do about it because it is a taxable event.
I suggest that homeowners contact attorneys familiar with this area of the law as well as real estate agents.
If the real estate market is falling - every day waiting for a buyer could be increasing the likelyhood of a larger IRS bill.
Just imagine how the owner will feel when she gets a 1099 for $100,000 and finds that her tax bracket is also higher.
San Jose Mercury News - `Short sales' can bail out underwater borrowers
Explains that is critical that the listing agent can take a leadership position with a bank during a short sale negotiation.
Which is true. But I think leadership involves more than waiting for an offer to get submitted and then starting the process. A listing agent combined with an attorney can take real leadership role with the bank.
There are reasons to get these negotiations done quickly with a bank. There are ways to frame the negotiation so that the homeowner does not get stuck with an every increasing potential IRS bill for debt forgiveness.
In my opinion for many homeowners it may be negligent to wait to a buyer comes forward negotiate a short sale and tell the homeowner well the bank is not going to seek a deficiency judgment but you will get loan forgiveness bill and there is nothing you can do about it because it is a taxable event.
I suggest that homeowners contact attorneys familiar with this area of the law as well as real estate agents.
If the real estate market is falling - every day waiting for a buyer could be increasing the likelyhood of a larger IRS bill.
Just imagine how the owner will feel when she gets a 1099 for $100,000 and finds that her tax bracket is also higher.
San Jose Mercury News - `Short sales' can bail out underwater borrowers
risk of foreclosure
an article explaining why a short sale might be better than foreclosure - this article is not from california or florida.
Beloit Daily News
Beloit Daily News
Avoid foreclosure's black eye by going with a 'short sale'
here the article makes a distinction between a short sale and an upside down sale. This seems to expand on the concept of what upside down is technically, but it does agree with the lose definition I recently gave.
Of course the definitions do not really matter to the homeowner.
The important questions are - do they have to come up with cash to close, do they have to worry about being sued by the bank for a deficiency or do they have to worry about a higher tax bill from the IRS.
PoughkeepsieJournal.com - Avoid foreclosure's black eye by going with a 'short sale'
Of course the definitions do not really matter to the homeowner.
The important questions are - do they have to come up with cash to close, do they have to worry about being sued by the bank for a deficiency or do they have to worry about a higher tax bill from the IRS.
PoughkeepsieJournal.com - Avoid foreclosure's black eye by going with a 'short sale'
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