Category Archives: Real Estate

Real Estate

Need a Loan Modification? Be Careful

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loan modification

As part of a consumer alert, Attorney General Jerry Brown’s office issued the following tips for homeowners to avoid becoming a victim:

DON’T pay money to people who promise to work with your lender to modify your loan. It is unlawful for foreclosure consultants to collect money before (1) they give you a written contract describing the services they promise to provide and (2) they actually perform all the services described in the contract, such as negotiating new monthly payments or a new mortgage loan. However, an advance fee may be charged by an attorney, or by a real estate broker who has submitted the advance fee agreement to the Department of Real Estate, for review.

DO call your lender yourself. Your lender wants to hear from you, and will likely be much more willing to work directly with you than with a foreclosure consultant. (My experience is that this statement is partially true However, they will listen to an attorney before they will listen to you. Some of the original mortgage contracts that consumers signed are fraudulant)

DON’T ignore letters from your lender. Consider contacting your lender yourself, many lenders are willing to work with homeowners who are behind on their payments.

DON’T transfer title or sell your house to a “foreclosure rescuer.” Fraudulent foreclosure consultants often promise that if homeowners transfer title, they may stay in the home as renters and buy their home back later. The foreclosure consultants claim that transfer is necessary so that someone with a better credit rating can obtain a new loan to prevent foreclosure. BEWARE! This is a common scheme so-called “rescuers” use to evict homeowners and steal all or most of the home’s equity.

DON’T pay your mortgage payments to someone other than your lender or loan servicer, even if he or she promises to pass the payment on. Fraudulent foreclosure consultants often keep the money for themselves.

DON’T sign any documents without reading them first. Many homeowners think that they are signing documents for a new loan to pay off the mortgage they are behind on. Later, they discover that they actually transferred ownership to the “rescuer.”

I am a partner with Sarah O’Neal, an attorney and we can help you with your loan modification or short sale. We do not take upfront fees. You are asked to fill out an application to determine if you might qualify for a loan modification. After reviewing your application, Sarah can advise you if you might qualify for a loan modification. See our website for more information Lets Stop Foreclosure

Real Estate

Craigslist, A New Twist on an Old Real Estate Scam

house-for-rent

In a different twist on an old scam, real estate scammers are using new tricks to try to pull a fast one on people searching for a place to rent.

Although everyone thinks they would never fall for a scam, it can happen to anyone. Recently, the people doing the tricking are getting more creative.

You may know that agents list properties for sale on Craigslist.

Instead of just trying to get you to send money in exchange for a key, sight unseen, now scammers are actually putting victims in touch with legitimate real estate agents.

The individual is being told, call the agent, they’ll show you the property, but don’t say anything about renting because I’m the owner and I don’t want them to know I’m going to take the listing away from them.

Once the potential renter has fallen in love with the house, they’re told to send the alleged owner a security deposit. With one pen stroke, the scammer has tricked both the buyer and agent.

Now that they’re more aware of the issues, most agents are being pro-active and trying to stop any fake rentals before things go too far.

Your best protection is to ask the agent if the owner wants to rent the house. Most listing agreements cannot be cancelled by the owner unless the real estate agent agrees to the cancellation.

The best advice, however, is to work with someone you trust, and remember if it seems too good to be true, it probably is.

It is important to note that there are legitimate listings on Craigslist. The site has become a popular place for agents to post listings. If you are searching on Craigslist, just remember to use caution and do your research if you find something that interests you.

Real Estate

Nevada County Home Sales Up April to June 2009

sold-sign2

Nevada County homes sales increased in the three months of April to June, 2009 compared to the same period in 2008 by 14%. Sales for the three month period in 2008 were 203 housing units compared to the three month period in 2009 of 231 housing units. However, the average sales price dropped 17% in the three month period of 2008 which was $417,250 compared to $345,931 for the same three month period in 2009.

In addition the number of foreclosure proceedings started against California homeowners fell slightly in the April-through-June period compared with the prior three months, but remained higher than last year. The dip from earlier this year occurred as lenders and their loan servicers took time to revise procedures and priorities in an environment of continuing home price depreciation, economic distress and mortgage defaults, a real estate information service reported.

Lenders sent out a total of 124,562 default notices during the second quarter (April through June). That was down 8.0% from the prior quarter’s record 135,431 default notices, and up 2.4% from 121,673 in second quarter 2008, according to MDA DataQuick. The San Diego firm tracks real estate trends nationally via public property records.

“There is a perception that the housing market is dragging along bottom, that it probably won’t get much worse, and that the lenders need to get serious about processing the backlog of delinquencies, either with work-outs or foreclosure. We’re hearing that some lenders and servicers are doing just that, hiring more people to do the necessary paperwork. That means the foreclosure numbers will probably shoot back up during the third quarter,” said John Walsh, DataQuick president.

The median origination month for last quarter’s defaulted loans was July 2006, the same as during the first quarter. A year ago the median origination month was April 2006, so the foreclosure process has moved three months forward during the past 12 months.

Real Estate

Property Tax Bill Too High? Appeal It

scales-money-house

Do you feel that your property tax bill is too high? Was it raised recently in a declining real estate market? You do have the right of appeal. Listed below are some of the information that you would need to appeal your property tax:

According to the Wall Street Journal, M.P. McQueen (07/16/09)

“The going rate for a property tax consultant, who makes the pitch to the appeals board on behalf of the home owner, is often 25 percent to 50 percent of the amount saved in the first year.

Winning an appeal requires persuading an assessor or appeals board that the current assessment is inaccurate or outdated. Often the window for appeal is very small, so it pays to have key information gathered and ready.

The National Taxpayers Union offers these tips for filing an appeal:

• Check the assessors’ information on file for accuracy, including lot number, zoning category, sales records, land value and dimensions, and significant features.

• Make sure that defects like a leaky basement that could lower the value of the property are on record.

• Provide three to five comparables that prove the point that the property is over-assessed.

• Get a full appraisal if the information on file appears to be hopelessly incorrect.”

Let me know if I can help you in appealing your property tax bill, why pay more than you have too?

Real Estate

How do I Protect a Vacant Home That I’m Trying to Sell?

Vacant home-kitchen has been destroyed
Vacant home-kitchen has been destroyed

To make a long story short, if possible don’t leave your home vacant if you are trying to sell it. However, if you do have to vacate your home, here are some guidelines that will help you.

To begin with, if you leave your home vacant for thirty days, your homeowner’s insurance policy may expire or be cancelled. Check with your insurance agent to protect yourself. You know how Insurance companies are, they are notorious in finding ways not to pay on your insurance policy. Remember, it could be considered fraud if you leave your home vacant for a long period of time and then say you have occupied it if something happened to your home in your absence

• Have your real estate agent (like myself) advise you on how to make your house look occupied and have him check your house on a regular basis.

• Again if at all possible, don’t move out until you’ve sold the home. If you are one of a couple, consider staying behind, or living there occasionally until the home is sold.

• You can rent out the home. Not only will the home be lived in, the rent will help cover your carrying costs. You may still have to change your homeowners’ insurance policy to reflect the property’s new rental status — say to reduce your contents coverage — but it’ll be cheaper than vacant home insurance.. Of course, renting carries its own problems, making sure that you get a good tenant to start with. Then there is a law which states that you have to give the tenant 24 hours notice before you can show the home. This could result in a lost sale. Otherwise, hire a house-sitter or let someone you trust live there until it’s sold.

•If you must move out make the home look lived in. No matter what you do, you still have to keep the home maintained by cleaning the yard and gutters, trimming trees, clearing the gutters, checking for leaks, shoveling the sidewalks and driveway, and winterizing or summer-izing as necessary.

• A good way to protect your home if you must vacate, is to install a home security system that is monitored. Our local Beam Center provides excellent service and I have used their services for years.

• Give the lived-in look some redundancy. Have an acquaintance bring in mail (Security experts say to stop mail and other deliveries when you are away). Ask your neighbors to keep an eye on your home and to report any suspicious activities to the police. Ask a neighbor to park their car in the driveway. Install timers on lights and leave window coverings and some furniture in the home.

Real Estate

Foreclosed Homes Trashed by Previous Owners

Not too long ago I wrote an article about people trashing their homes during the foreclosure process. Somehow, they feel that its the mortgage company’s fault that the home they bought is now in foreclosure.

httpv://www.youtube.com/watch?v=Ms6IzSSfcoI
(Note, if you cannot see the video, download Adobe Flashplayer)

Although this video is a few months old, it’s still shows what happens to many of the homes that have been foreclosed on. The reason I’m reposting about trashed forclosed homes, is because just the other day I know someone that moved out of their condo which will soon be in foreclosure. Abandoning the condo, they decided to take the kitchen stove, built-in micro wave, the dishwasher and some of the light fixtures, none of which is personal propery and is an integral part of the condo. The condo will soon be in foreclosure, since they are not making any more mortgage payments. They decided that the place was not worth the price they paid for the condo. So much about honoring any part of your debt.

I’d appreciate your comments on this article.

Real Estate

Careful of Revese Mortgage Scams

Robert C. Weaver Federal Building HUD Headquarters
Robert C. Weaver Federal Building HUD Headquarters

The FBI and the U.S. Department of Housing and Urban Development Office of Inspector General (HUD-OIG) urge consumers, especially senior citizens, to be vigilant when seeking reverse mortgage products. Reverse mortgages, also known as Home Equity Conversion Mortgages (HECM), have increased more than 1,300 percent between 1999 and 2008, creating significant opportunities for fraud perpetrators.

Reverse mortgage scams are engineered by unscrupulous professionals in a multitude of real estate, financial services, and related entities to steal the equity from the property of unsuspecting senior citizens aged 62 or older or to use these seniors to unwittingly aid the fraudsters in stealing equity from a flipped property.

In many of the reported scams, victim seniors are offered free homes, investment opportunities, and foreclosure or refinance assistance; they are also used as straw buyers in property flipping scams.

Seniors are frequently targeted for this fraud through local churches, investment seminars, and television, radio, billboard, and mailer advertisements.

A legitimate HECM loan product is insured by the Federal Housing Authority (FHA). It enables eligible homeowners to access the equity in their homes by providing funds without incurring a monthly payment. Eligible borrowers must be 62 years or older who occupy their property as their primary residence and who own their property or have a small mortgage balance. See the FBI/HUD Intelligence Bulletin for specific details on HECMs as well as other foreclosure rescue and investment schemes.

Seniors should consider the following:

* Do not respond to unsolicited advertisements.

* Be suspicious of anyone claiming that you can own a home with no down payment.

* Do not sign anything that you do not fully understand.

* Do not accept payment from individuals for a home you did not purchase.

* Seek out your own reverse mortgage counselor.

If you are a victim of this type of fraud and want to file a complaint, please submit information through our electronic tip line or through your local FBI office. You may also file a complaint with HUD-OIG at HUD Complaints or by calling HUD’s Hotline at 1-800-347-3735.

Source: PopDeCay

Real Estate

Another Real Estate Scam, Call Me on My Foreign Mobile Phone

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mobile-phone-scam

One of the scam’s that has been going on since at least 2007 is to send an e-mail to you stating they are interested in viewing one of your properties. The e-mails are usually sent to someone who is renting property and Realtors® seem to be a prime target.

The e-mail goes something like this:

“I am interested in viewing one of your properties, could you please call me on my foreign mobile +882 135 502 99 to setup a time. As I am travelling at the moment I am unable to pickup emails regularly so please call.
Kind regards,
Liz Casey
———
Mobile: +882 135 502 99 (of course do not call!)
Email: lizcasey@zapak.com”

~~~~~~~~~~
It’s obvious that if you receive an e-mail like this that it’s a scam. There is no mention of what property they are referring to, or if there is, the next thing they will do to get your money is send you a bogus check as a deposit to hold the property, most often in the form of a certified check. Next, they will e-mail you and say they have overpaid you, or they decided they did not want the property and request a refund.

I Googled this scam and came up with someone who had experience with this and here is what they wrote:

“They will eventually get around to talking you into discontinuing the ad then they will send a counterfeit check. Next comes a request to refund some of the money from the bogus check claiming they overpaid. It’s amazing that folk’s fall for these scams. We played one along and got a $25.00 reward for turning the check over to the bank. If you play along with a scammer and receive a check. don’t handle it, the FBI may want to lift prints from it.”

I’m not sure the FBI is interested at all. The last time I tried to report a scam they were not interested and really did not even want to talk about it..
.

Real Estate

Michael Jackson’s Neverland Home has a Buyer

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Michael Jackson's Neverland
Michael Jackson's Neverland

LONDON – French fashion tycoon Christian Audigier is set to buy Michael Jackson’s Neverland home.

“I have decided to buy that house,” the Mirror quoted him as telling French TV.

The designer is also planning to build a theme complex dedicated to the icon similar to Elvis Presley’s Graceland.

He may also offer online tours for fans to the ranch that Jackson turned into a personal theme park.

Colony Capital who had purchased the California ranch in 2008 for 20million-pound is keen to sell it after the legend’s demise.

Neverland is now worth an estimated $97,150,000.

Real Estate

California Real Estate Sales Up

 house-selling

 

  A survey by the California Association of Realtors found that sales of California real estate have actually increased from the end of 2008 to the beginning of 2009. Survey respondents indicated that attractive prices and low mortgage rates were the leading factors motivating them to buy. For more see the following article from HousingWire.  

After a two-year downturn, California home sales have increased 27% through the end of 2008 and beginning of 2009, spurred by low home prices, mortgage rates and a belief that rates will increase in the near future, according to a survey by the California Association of Realtors (CAR).
Lower home prices encouraged 68% of the survey’s respondents, while 39% said low interest rates put them in the market for a new home. An additional 23% named the belief that mortgage rates will increase in the near future as a motivating factor in their decision to buy a home.
Distressed sales made up more than half of California’s home sales. The 38% percent of homebuyers that purchased real-estate-owned (REO) properties reported they had the most difficulty securing financing, on averaging rating their experience an 8.9 on a scale of 10. While short-sale properties only accounted for 13% of California sales, buyers rated their financing experience the easiest, a 7.6 on average. The 49% of home buyers involved in a traditional transaction rated their financing experience a 7.7 on average.
The glut of bank-owned properties on the market has kept California’s housing inventory stocked, giving buyers many options.

“In contrast to peak years when inventory levels were at record lows, inventory levels over the past several months have been in the range of the long-run average,” CAR chief economist Leslie Appleton-Young said in a release. “With many homes available on the market at more affordable prices in the past year, home buyers have been devoting more time to considering and carefully selecting their home during the researching and buying process.”

The average home buyer spent 8.4 weeks considering their purchase in 2009, up from 7.2 weeks in 2008. Buyers spent 10.3 weeks searching for a home with their real estate agent, compared to 8.7 weeks in 2008.

Nearly one-third of respondents who purchased in a traditional market sale said they either did not know or were not sure they knew the terms of their loan. A smaller percentage, 12%, of REO buyers and 7% of short-sale buyers indicated the same response.

This article has been republished from HousingWire. You can also view this article at HousingWire a mortgage finance news website