In an article written by Melissa Dittmann Tracey who is a contributing editor for REALTOR® magazine, she outlines 5 Real Estate Scams everyone should know about. They are:
1. The Foreclosure Rescue Scheme
2. Loan Documentation Fraud
3. Appraisal Fraud
4. Illegal Property Flipping
5. Short Sales Schemes
To read the entire article, follow the link below:
http://www.realtor.org/rmolaw_and_ethics/articles/2010/1008_law_mortgagefraudscams
Short Sale Time Line firmed up..
Wells Fargo is the first, but this will probably become a reality for other Servicers as well..get those Short Sales done!
Wells Fargo announced today that it would not extend the close dates for it’s Short Sales. The dates in the demand Letters are not going to be pushed out. If it doesn’t close, the property moves on to foreclosure. Fannie Mae has announced it will be cracking down on Lenders that let loans languish with no action..simply collecting servicer fees. This is a good move for our Industry from my perspective..getting the Lenders to go forward with Short Sales instead of just letting them sit is the first step in getting them CLOSED, the property off the market, and a new homeowner in the home.
SB1178: Anti-deficiency Protections for Homeowners..
Hoping that the Gov signs this one. Not asking for ALL homeowners who took out equity from their homes to have this protection. What this bill will do is extend the anti-deficiency protection to Primary Homeowners who refinanced their original purchase money loans. When Owners refinanced to get a better interest rate, lenders did not tell them that the protection is lost if they eventually lose their home to Foreclosure or Short Sale. This is on Primary Residences only. As it stands now, the Lender can not only take their home, but can also pursue them personally for the difference between the current value of the property and the new mortgage balance.
This was unfair to allow Lenders to use this technicality, since most owners are unaware that with a Refinance they lose their anti-deficiency protection in this State. Hopefully, this Bill will pass and primary homeowners that refinanced their purchase money loans will STILL have a non-recourse loan. This would help them tremendously whether they choose to Short Sale or lose their home to Foreclosure..
I like this idea and sent the Gov a letter asking him for his sig. Primary homeowners in CA should be protected from this ability by the Lenders to pursue for deficiency..whether they refinanced or not. PRIMARY RESIDENCES ONLY. We’ll see what happens..
If you need more specific information about Short Sales, contact me at: kjkpolo@earthlink.net or give me a call! 760-285-3578