Mark Sumpter is very good at marketing. I frequently run across his stuff every time I look for information for this blog.
He is selling courses to people wishing to profit as investors from short sales. His marketing piece is the state of the art from a year ago. Hes got the personal story, the pitch, the appeal to greed, the testimonals and the risk reversal promise.
He also provides a wealth of questionable practices:
1. He says Short sales can be very profitable for investors. (Note to homeowners many short sale "advisers" are investors trying to get leads to distressed properties)
2. He (and other trainers) state investors must get the deed to the property from the homeowners prior to contacting the bank. Why? Because, if they don't get the deed an investor may lose time, effort and money setting the deal up and then seeing the homeowner back out. Mr. Sumpter explains you only have to lose 30,000 dollars once before you make sure you get the deed. On another site I saw them speak of putting the deeds into land trusts before commencing negotiations with the bank.
Note to homeowners speak with and attorney before you do anything with your deed. Now I understand why there are warnings from Hud about the scams out there.
3. Next Mr. Sumpter advises investors not to tell the banks they are investors. He advises that you call the bank and state you represent the buyer or the homeowner. He warns sometimes the bank may ask if you are a real estate attorney. Mr. Sumpter just says repeat what you just said.
Note - to everyone who reads this blog. When someone repeats what they just said in response to your question (make an internal memo this person has not respect for my situation- he is most likely a crook using a script.) repeat your question and keep repeating your question till you get an answer.
4. Mr. Sumpter also says the lender is going to ask for a hardship letter and information about the homeowners finances, including: bank statments, pay stubs, income statements, and so on. "Be prepared to send everything they ask for because if you don't it will not be accepted".
If the banks rejects the short sale, a smart lawyer may find you responsible for a host of damages. You are practicing law without a license and you may also be preventing all future short sales from happening. Other damages in Florida and California will have to do with the intersection of anti deficiency laws, foreclosure, bankruptcy and homestead protections.
Wednesday, June 13, 2007
Warning to Realtors short sale consultants
Potential liablity for Realtors? Given the inherent conflict of interest—a Realtor makes a commission on a short sale and doesn’t in a foreclosure—the real estate professional should proceed cautiously when counselling a seller. A short sale that leads to a tax liability and possibly to further financial hardship or bankruptcy could easily backfire on the party who profited most from the transaction. If the resulting credit scores also render the buyer unable to purchase another home or cause increased costs for auto loans or credit cards, it is easy to imagine the borrower taking a dive and hoping for a red card.
LendingClarity.com » Blog Archive » Short Sales vs. Foreclosures….Your Credit Will Suck Either Way
LendingClarity.com » Blog Archive » Short Sales vs. Foreclosures….Your Credit Will Suck Either Way
LendingClarity.com » Blog Archive » Short Sales vs. Foreclosures….Your Credit Will Suck Either Way
LendingClarity.com » Blog Archive » Short Sales vs. Foreclosures….Your Credit Will Suck Either Way
More dangers for Realtors who counsel sellers about the benefits of short sales.
Credit bureaus may give short sales and deeds in lieu of foreclosure the same damaging score they currently give to foreclosures.
More dangers for Realtors who counsel sellers about the benefits of short sales.
Credit bureaus may give short sales and deeds in lieu of foreclosure the same damaging score they currently give to foreclosures.
Benefits of a short sale
Some of the benefits of a short sale. This is not an exclusive list and some of these benefits have to be negotiated.
You may be able to negotiate:
1. Occupying the home until the new owner closes.
2. Not paying on the mortgage until the new owner closes.
3. I hear many "consultants saying foreclosure is worse than a short sale for your credit. Even if that is true now, that may be changing.
4. Avoiding a deficiency action.
5. You may be able to minimize the deficiency which may have a large impact on your IRS bill for loan forgiveness.
6. With the help of an attorney you may even be able to minimize or eliminate loan forgiveness.
7. A short sale or short payoff may help you avoid bankruptcy.
Short sale information for people in California and Florida.
You may be able to negotiate:
1. Occupying the home until the new owner closes.
2. Not paying on the mortgage until the new owner closes.
3. I hear many "consultants saying foreclosure is worse than a short sale for your credit. Even if that is true now, that may be changing.
4. Avoiding a deficiency action.
5. You may be able to minimize the deficiency which may have a large impact on your IRS bill for loan forgiveness.
6. With the help of an attorney you may even be able to minimize or eliminate loan forgiveness.
7. A short sale or short payoff may help you avoid bankruptcy.
Short sale information for people in California and Florida.
Foreclosures up 90% in May
U.S. home foreclosures in May jumped 90% from a year earlier, reflecting a poor spring
housing market and foreshadowing even higher levels later in 2007, real estate data firm RealtyTrac said on Tuesday.
The May foreclosures -- a sum of default notices, auction sale notices and bank repossessions -- totaled 176,137, up 19% from April, the firm said in its May 2007 U.S. Foreclosure Market Report.
The number of filings in May was the largest amount since RealtyTrac started tracking foreclosure activity in January 2005.
"After a barely perceptible dip in April, foreclosure activity roared back with a vengeance in May," James Saccacio, chief executive officer of RealtyTrac, said in a statement.
"Such strong activity in the midst of the typical spring buying season could foreshadow even higher foreclosure levels later in the year," said Saccacio. "Certainly not every community nationwide is seeing an increase in foreclosures, but foreclosed properties are becoming more commonplace and adding to the downward pressure on home prices in many areas."
RealtyTrac said there was a national foreclosure rate of one foreclosure filing for every 656 U.S. households during May.
Defaults in Subprime
The default rates in the subprime segment of the U.S. mortgage market, which caters to borrowers with poor credit histories, have jumped in recent months as the housing industry
has slowed and prices have fallen.
More than two dozen lenders in the subprime mortgage sector have collapsed as rising defaults drove them out of business during a downturn in the housing market.
Market observers are keeping a watchful eye on the subprime crisis because it has triggered broader concerns that the fallout may spread to mainstream lenders and damage the
economy.
Nevada, once one of the hottest real estate markets and a favorite among investors, led the nation in May with one foreclosure filing for every 166 households, which was the nation's highest for the fifth month in a row and nearly four times the national average.
Nevada's foreclosure activity, at 5,235 foreclosure filings during the month, rose 40 percent from April and was nearly five times the number reported in May of 2006.
Colorado came in second with one foreclosure filing for every 290 households, which was 2.3 times the national average. Colorado's foreclosure activity, at 6,231 foreclosure filings in May, rose 9 percent from the previous month and was an increase of more than 50 percent from May 2006
The state's foreclosure total was the eighth highest among the states.
Other States Hit
California, the largest state, reported foreclosure activity increasing by 30% from the previous month and more than 350% from May 2006, which boosted the state's foreclosure rate to the third highest in the country.
California documented one foreclosure filing for every 308 households, which as more than twice the the national average.
Florida, Ohio, Arizona, Georgia, Michigan, Indiana and Connecticut were some of the other states with foreclosures rates ranking among the nation's 10 highest in May.
The cities with the nation's top three metropolitan foreclosure rates were all located in California, and three other California cities also documented foreclosure rates among
the top 10.
A 49% increase in foreclosure activity ensured that Stockton, Cali., would register the nation's highest metropolitan foreclosure rate at one filing for every 88 households, which was nearly 7.5 times the national a average.
Merced, Cali., documented the second highest metro foreclosure rate, one foreclosure filing for every 100 households, followed by Modesto, Cali., with one foreclosure filing for every 118 households. Other California metros in the top 10 were Riverside-San Bernardino at No. 5,
Vallejo-Fairfield at No. 6, and Sacramento at No. 7.
Las Vegas at No. 4, Denver at No. 7, Detroit and No. 8, and Miami at No. 10 were other top 10 cities.
http://www.cnbc.com/id/19193611
housing market and foreshadowing even higher levels later in 2007, real estate data firm RealtyTrac said on Tuesday.
The May foreclosures -- a sum of default notices, auction sale notices and bank repossessions -- totaled 176,137, up 19% from April, the firm said in its May 2007 U.S. Foreclosure Market Report.
The number of filings in May was the largest amount since RealtyTrac started tracking foreclosure activity in January 2005.
"After a barely perceptible dip in April, foreclosure activity roared back with a vengeance in May," James Saccacio, chief executive officer of RealtyTrac, said in a statement.
"Such strong activity in the midst of the typical spring buying season could foreshadow even higher foreclosure levels later in the year," said Saccacio. "Certainly not every community nationwide is seeing an increase in foreclosures, but foreclosed properties are becoming more commonplace and adding to the downward pressure on home prices in many areas."
RealtyTrac said there was a national foreclosure rate of one foreclosure filing for every 656 U.S. households during May.
Defaults in Subprime
The default rates in the subprime segment of the U.S. mortgage market, which caters to borrowers with poor credit histories, have jumped in recent months as the housing industry
has slowed and prices have fallen.
More than two dozen lenders in the subprime mortgage sector have collapsed as rising defaults drove them out of business during a downturn in the housing market.
Market observers are keeping a watchful eye on the subprime crisis because it has triggered broader concerns that the fallout may spread to mainstream lenders and damage the
economy.
Nevada, once one of the hottest real estate markets and a favorite among investors, led the nation in May with one foreclosure filing for every 166 households, which was the nation's highest for the fifth month in a row and nearly four times the national average.
Nevada's foreclosure activity, at 5,235 foreclosure filings during the month, rose 40 percent from April and was nearly five times the number reported in May of 2006.
Colorado came in second with one foreclosure filing for every 290 households, which was 2.3 times the national average. Colorado's foreclosure activity, at 6,231 foreclosure filings in May, rose 9 percent from the previous month and was an increase of more than 50 percent from May 2006
The state's foreclosure total was the eighth highest among the states.
Other States Hit
California, the largest state, reported foreclosure activity increasing by 30% from the previous month and more than 350% from May 2006, which boosted the state's foreclosure rate to the third highest in the country.
California documented one foreclosure filing for every 308 households, which as more than twice the the national average.
Florida, Ohio, Arizona, Georgia, Michigan, Indiana and Connecticut were some of the other states with foreclosures rates ranking among the nation's 10 highest in May.
The cities with the nation's top three metropolitan foreclosure rates were all located in California, and three other California cities also documented foreclosure rates among
the top 10.
A 49% increase in foreclosure activity ensured that Stockton, Cali., would register the nation's highest metropolitan foreclosure rate at one filing for every 88 households, which was nearly 7.5 times the national a average.
Merced, Cali., documented the second highest metro foreclosure rate, one foreclosure filing for every 100 households, followed by Modesto, Cali., with one foreclosure filing for every 118 households. Other California metros in the top 10 were Riverside-San Bernardino at No. 5,
Vallejo-Fairfield at No. 6, and Sacramento at No. 7.
Las Vegas at No. 4, Denver at No. 7, Detroit and No. 8, and Miami at No. 10 were other top 10 cities.
http://www.cnbc.com/id/19193611
Tuesday, June 12, 2007
California Realtors - 14% sales drop
Business Briefs: June 11, 2007 : Business News : Redding Record Searchlight
The California Association of Realtors projects a 14 percent decline in single-family home sales this year and a 1.8 percent increase in the median price of a home.
The California Association of Realtors projects a 14 percent decline in single-family home sales this year and a 1.8 percent increase in the median price of a home.
Most at risk for foreclosure
Who's most at risk for foreclosure? - Buying a House - MSN Real Estate
according to this source 33% of the arms from 2004-2006 which started out with a rate of less than 4 percent will lose their homes will be foreclosed upon.
The prediction assumes that property values remain flat with December 2006 levels. Since property values have fallen in San Diego and the Sarasota Bradenton area we may expect even more people to lose their homes to foreclosure. (according to the author of the study)
Each 1% drop in house prices translates in an increase of roughtly 70,000 foreclosures.
according to this source 33% of the arms from 2004-2006 which started out with a rate of less than 4 percent will lose their homes will be foreclosed upon.
The prediction assumes that property values remain flat with December 2006 levels. Since property values have fallen in San Diego and the Sarasota Bradenton area we may expect even more people to lose their homes to foreclosure. (according to the author of the study)
Each 1% drop in house prices translates in an increase of roughtly 70,000 foreclosures.
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