Plenty of companies are eager to exploit the uncertain economy and housing market by trying to separate property owners from their money, consumer columnist David Lazarus says. Here’s what to watch out for: http://lat.ms/vyed8L
Duration : 0:1:27
In partnership with The Center for Public Integrity, CBS News chief investigative correspondent Armen Keteyian finds out who is behind the big business of online payday Loans that provide an advance on a paycheck attached with crippling interest rates.
Duration : 0:4:48
We are currently looking for 250 people to test the New Mac Book Air. http://bit.ly/qIWcy3
http://realestatemarketingthisweek.com- Real Estate Marketing – Foreclosure rates on Forbearance Agreements done with banks reaches 58% – With Michael J Barnes and Dan Havey of Real Estate Marketing This Week
Part 3 – In studio with us today on this fine New years eve is Dan Havey, the co founder of the modification hotline as well as the author of The Foreclosure Sharks a great white paper he put together. He is also the author of Real Estates Future and this segment we are talking about loan modifications and some specific information.
You also have a great story to tell about this to. Well unfortunately I have too many stories about people who have had to go through foreclosures, bankruptcies, loan modifications. The one story I want to talk about real quick is a friend of mine who unbeknownst to me went out and did a Loan modification on her own and not to get into a whole bunch of technical details on it she ended up getting a pretty decent interest rate because they actually cut her Mortgage payment in half and she was pretty happy about that.
She owed a little bit more than the house was worth, she wasnt terribly upside down, but by the time they got done with her she certainly was going to be because the modification, and actually I should not call it a modification, I should call it a forbearance agreement, what they did to her was to say, OK we will cut your interest rate in half, we will cut your monthly payment in half, but we will take all of that deferred interest and tack it onto the back end of the loan. So that by the time her interest rate went back to where it had been, it was going to adjust up over the next five years, so that within that five year time period she was actually going to owe $60,000 in back interest on top of the principal balance that she had before she went to go talk to her bank.
What kind of a deal is that? I didnt think it was a very good one and she ended up eventually not taking it and just recently let the house go back to the bank, because she just looked at it and said, Wait a second here, I am already $20,000 upside down, by the time Im done with you guys I will be $80,000 upside down and so great I get a cheaper payment for a while. She moved into a rental property that was even cheaper then what she would have had to pay to stay in the house and from what she tells me the house is nicer.
Some of the unfortunate scenarios that come up that we get to see. Unfortunately we talk to lots of people that have similar situations, trying to do these on their own and it is possible to do a loan modification on your own. We know that, the program is designed for you to do that. The problem is it generally does not work out.
The re-default rate on loan modifications done on your own is significantly higher than loan modifications facilitated by an attorney that is representing you, for a number of reasons. Number one you have to pay an attorney to represent you. The other is that I think you are going to get a better modification based its not just a negotiation between you and the loss mitigation department for the bank. We are talking about using a professional attorney who is a trained negotiator to negotiate on your behalf with another attorney. By the way, theyre not talking to the same loss mitigation people in India that you may be talking too.
Here are some numbers that just came out from John Dugan who is the Office of the Comptroller of the Currency and they did a study of the loan modifications that have been done to date. In many cases these were forbearance agreements, not loan modifications. If an individual talks to his bank, generally speaking he will not get the same as result as what an attorney would do, so most of these are really forbearance agreements. And in that case, 36% had defaulted or were 30 days past due after 6 months and 58% were in default after 8 months. Again that is 58% in default after eight months and I saw some numbers the other day and unfortunately I didnt bring them in with me today, that according to some study of the very few modifications that have been done using an attorney, I say very few, but it is still thousands or tens of thousands, but few compared to what is getting done directly with the bank, the number is only like 5% of the ones done with an attorney have re-defaulted and again I dont have the numbers with me so I cant site the source… http://realestatemarketingthisweek.com/foreclosure-rates-on-forbearance-agreements-reaches-58/
Duration : 0:5:47
Former president George Bush pushed the American Dream Downpayment plan to use taxpayer money to give Loans to those with low income interested in purchasing a home. Cenk Uygur and Ben Mankiewicz discuss.
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Duration : 0:3:51
Mortgage Foreclosure Rescue Scams – Documentary Video
We Stop Foreclosure Rescue Scams (2008) by Kyra Olds
This is a documentary about mortgage foreclosure rescue scams that are occurring across the country in light of the growing foreclosures. The movie describes common scam tactics and how distressed homeowners fall for these scams. The movie concludes with what lawyers can do to challenge these scams in court and the Washington State Legislature’s response to try to to stop these scams by passing House Bill 2791 and Senate Bill 6381. It is intended to educate advocates so they can better assist homeowners facing foreclosure.
Director: Kyra Olds
Producer: Northwest Justice Project
Sponsor: Eric Dunn
Keywords: foreclosure rescue scam; washington; mortgage; foreclosure; 2791; northwest justice project; njp
Contact Information: Northwest Justice Project 401 2nd Ave S Seattle, WA 98104 www.nwjustice.org
Creative Commons license: Attribution-Noncommercial-Share Alike 3.0 United States
Credits:
We Stop Foreclosure Rescue Scams
by Northwest Justice Project;
Featuring:
Eva, Client of NJP; Eric Dunn, Attorney at NJP; Melissa Huelsman, Private; Attorney in Seattle; Judy Poston, Housing Counselor at Solid Ground; Julia Kellison, Attorney at NJPl; Fred Corbit, Attorney at NJP
Produced by: Kyra Olds, Intern at NJP
Foreclosures are increasing nationwide, and so are scams that promise to rescue homeowners from foreclosure. What these scams do is take your money, ruin your credit record, and wipe out any equity you have in your home. Foreclosure con artists take advantage of people who have fallen behind on their Mortgages and face foreclosure. Con artists know that people in these situations are vulnerable and likely to be desperate. Potential victims are easy to find: mortgage lenders publish notices before foreclosing on homes. After reading such notices, con artists approach their targets in person, by mail, over the telephone, or by e-mail. They advertise their services on Web sites or publications. They often refer to themselves with titles that sound official, such as foreclosure consultant or mortgage consultant, and market themselves as a foreclosure service or foreclosure rescue agency. Your mortgage lender or any legitimate financial counselor can help you find real options to avoid foreclosure. If someone offers to negotiate with your lender and offers to arrange to stop or delay foreclosure for a fee, carefully check his or her credentials, reputation, and experience. To protect yourself, follow the recommendations contained in this Consumer Advisory.
Duration : 1:34:41
http://realestatemarketingthisweek.com – Foreclosure Rescue Scams and How to Protect Yourself –
Part 7 – The Foreclosure Sharks, you have written this book or I think it’s called a white paper. Free report whatever you want to call it its packed full of really good and interesting information. It’s called The Foreclosure Sharks – A look at the rampant theft of Americans homes through foreclosure rescue scams.
And folks I have to tell you I think we’re going to spend the next week, the majority of the show talking about what the heck is going on out there. And what you need to do to protect yourself in case you should happen to be against this problem. You really need to know what your options are. This free report is available online at http://Mortgageanswerman.com. You have got to get this. The information is really good, and one of the taglines that you have here Dan is, Theres blood in the water and the sharks can smell it.
Right. What made me actually write this was a number of years ago I had been working with people in foreclosure for years, and it was just a way to let them know what was going to be going on once the foreclosure was filed against them. Now in many cases, these people were already experiencing what was going on.
And again I’ve recently had a friend or two go through foreclosure and I had them collect all of the paperwork that they got from all of the foreclosure guys out there trying to help them sell their house or do whatever it was, and I was surprised at how thin the stack was. This one gal in particular, lives in Scottsdale in a very nice house and she didnt have more than maybe 6 letters. In the past, a couple of years ago, especially at the peak of the market, when somebody was in a foreclosure situation they would have seriously a stack 6 inches thick.
People would be knocking on their door 24 hours a day, calling them, dropping off stuff. There were cars driving by all the time and it really got to be a nuisance. And frankly I think it hurt the home owner and their standing in a neighborhood, with all of that traffic and of course everybody knew that they were having problems. So that is why the report was originally written and why I wanted to talk about it today because of all the foreclosures going on in the market right now.
Now let me ask you a question, you are saying that two years ago if I were in a foreclosure my mail box would be chock-full of marketing products. Youre telling me now that there is virtually none?
Well I think that part of it is that back then there was financing available to be able to come in and refinance the people. I certainly myself did dozens of loans, at least, to bail people out of bankruptcies and foreclosures, and also people had equity back then. Property values were continuing to go up. I forget how many scams I pointed out here in the book, I think there are 18 or something in here, and most of them are essentially people attempting to get your house away from you, either refinance it, sell it for you, take a lease option, there are all kinds of different scams involved, but I think the reason we see so much less of it today is because there is so much less equity. So if you are upside down by $300,000 in your house, i dont care how good of a scammer you are, you are not going to make a lot of money off that.
But there are a couple of scams going on right now that I want to talk about because there are a couple of things that happened just recently that harkened me back to when I first got started in real estate here in Arizona in the late 1980s. I was selling repos for Fannie Mae, Countrywide, and the Resolution Trust Corporation, which was in charge of selling off all of the real estate owned for the 1,800 or so Savings and Loans that failed in the late 1980s early 1990s. There were so many scams going on then, I mean we had just tons of vacant houses we were selling, and one of the big scams that I thought was actually being perpetrated on a friend of mine the other day is a little something known as rent skimming… http://realestatemarketingthisweek.com
Duration : 0:6:36
http://RealEstateMarketingThisWeek.com – What is a Short Sale? – Short Sale experts discuss How to Negotiate to Stop a Foreclosure… http://www.youtube.com/watch?v=kIQ4-b3KnbU
- Short Sale and Loan Modifications; great alternative to Foreclosure –
Kalyn Roberts and Jeri league, welcome to the program. Jeri and Kalyn are short sale experts and have graciously decided to come to the program to discuss some of the short sale important things that people do need to know, and were going to get to all of this short sale information, but a couple of things important to mortgage interest rates. Today is a fantastic day in the mortgage rate world. Leslie and Staci at Velocity Financial were kind enough to put together a scenario for us so listen to this folks.
This is not the teaser, this is not the loss leader, this is the real deal as of today, a $417,000 loan amount, the interest rate is 4.875%, thats 4.875% that is below 5% obviously, the APR is 4.948% and that is for a no cash out loan, and that is a special rate and we have a certain allotment of loans that were allowed to do at that special rate. If youre interested in talking to a member of my staff or myself or anyone else about that program you would call. There are people there standing by to take your phone call.
Were a local licensed firm and one of the only 15% of the Mortgage companies in the state of Arizona that is licensed to do FHA loans as well. Any mortgage related needs that you have were here to help but for the next hour were going to be talking about Short Sales.
Now over the last several months we have been talking about loan modifications on the show a lot, Velocity Financial was one of the first companies to work with a national network of attorneys, a 16 year old firm that were working with. They have done thousands of these loan modifications, and the loan modification industry in Arizona is for the most part unregulated, but you want to make sure youre working with a licensed firm, and you want to make sure youre utilizing an attorney.
You dont want to be giving money to anybody that says they can get you a loan modification, the only money you give is to an attorney, dont be giving money to people who come by and say they can help you out. Youre going to have to be very careful on how you handle that, but interestingly enough the loan modification is for the mortgage side, essentially the Loan modification is to the loan officer what a short sale would be to a realtor.
Now the short sale part of real estate is not something you want to trust to somebody starting out doing short sales, unless they are being supervised by a pro, you dont want to mess around with it. This is not a time to be trying it out, this is not a time for people to be using you as their guinea pig, not a good idea at all.
That is why we brought Jeri and Kalyn in and were going to talk about some of the specifics. You definitely want to make sure that if you need to do a loan modification, if youre facing foreclosure or you want to do a short sale, whatever scenario is the better decision for you and your family, you have got to work with a professional, Jeri and Kalyn have extensive experience, they have an unbelievably great success rate.
It doesnt have to take six months to get this done they can execute this for you and they are the pros so were going to go through some questions over the next hour, there is just one more thing I want to talk about and that is if a loan modification is something you think you need call the office and we have put together a video for you that you can watch, its very short, it explains the process and we will then get together with you and answer any questions that you have… http://realestatemarketingthisweek.com
Duration : 0:5:36
http://realestatemarketingthisweek.com/short-sales/prices-are-back-to-2003-levels-a-short-sale-is-significantly-cheaper-for-a-bank-than-a-foreclosure/ – Prices are back to 2003 levels: A Short Sale is significantly cheaper for a bank than a foreclosure
Part 7 – Were in the studio today with Kalyn Roberts and Jeri League of the Dreamvesting Group, these two young ladies are experts in the short sale area, they are NOT going to tell you what you want to hear, they are going to tell you what you need to hear. There is a big difference between what you want and what you need in the case of getting out of a situation. We talked during the break about the different types of people; who qualifies, who doesn’t qualify, who this is good for, and who its not good for. I want you to talk about people who are upside down and how you’re here to help.
What we want to get across today if you just need to call someone if you’re upside down in your mortgage, if you have a listing next door and its a bank owned or short sale, there is a good chance you’re probably upside down in you mortgage if you bought anytime in the last, in the last 5 years were almost back to 2003 pricing now.
Just to jump in real quick, Jeri and Kalyn its not just the people who purchased, its the people who used their homes as ATMs which is a crude way for me to say it but lets be honest. You watch the television, and I am not going to name any names, but a company that rhymes with lie-tech though, they have a commercial where they are showing pictures of using your home to buy a big boat and everybody got sucked into that and now here were.
Yes, if you used your second Mortgage to build that big beautiful pool in your backyard, maybe you need to call us. Yes, its unfortunate, we always tell everyone like you just said, everybody got sucked into it, it doesn’t mean you’re stupid, it doesn’t mean you necessarily made a really bad decision. Most people got caught up in the real estate market and good marketing ploys like that, and the bottom line is as we said earlier you dont have to be late on your mortgage payment, you don’t have to be facing a foreclosure, if you’re simply upside down because you refinanced your home or purchased too recently and the house next door is selling for $100,000 less than yours and you just need to get out of a bad financial situation, you’re a candidate for a short sale or even a loan modification.
One of the things about loan modifications that I hear all the time is, and I research other Loan modification companies, and what I hear is they are telling people things that just aren’t real. For instance if your owe $400,000 and your house is worth $300,000 and you want your lender to forgive $100,000 on a loan modification, chances are that isnt going to happen, whereas with a short sale, when youre exiting the property because it just isnt going to work, they would in most cases consider doing that.
Absolutely if that is the market value of your home they are going to consider the bottom line, the banks dont want these properties back, it costs them so much money to go through a foreclosure process and as our prices are falling, monthly, weekly, daily, the likelihood of the value of the property being extremely lower by the time they get the property back is 100%.
In addition to the $60,000 in foreclosure cost, paying real estate commissions and a few other fees is significantly better, because the loss is going to be significantly less with a short sale. Heres a question and I hope that I am not putting either of you on the spot, but suppose the guy owes $400,000 on his house, lets just say its worth $300,000 and you get the listing and this guy is out at a cocktail party and his cousin shows up and says, Ill buy the house from you. Ill buy the house from you, we will make the bank pay the difference and Ill just let you stay in the house. Is that a realistic situation, is someone going to find out about it? Is it good to do that or not?
In real estate, real estate purchases and transactions have to be non-arms length. Now arms length is described as your parents and your children, other than that we pretty much stay out of it because theoretically, yes that could happen, however the banks want to see that the homeowner is not benefiting, so the homeowner would have to become a tenant and be paying rent to new owner at that point. So there are many legitimate situations where you could meet someone who would buy the home and allow you to stay in the home… http://realestatemarketingthisweek.com
Duration : 0:5:53
LISTEN TO THIS SHOW NOW!
http://www.blogtalkradio.com/illuminatingminds/2011/04/27/forensic-auditing-team-dissects-wamu
Uncovering Mortgage Fraud with Forensic Auditing Team by helping HomeOwners who are faced with an option of Short Sale & LIABILITY can now utilize an Alternative Program with the NonProfit Organization in transferring their Liabilities into an Asset!! Join http://www.illuminatingminds.ning.com and email Druanna and Ronnai Kim for more information!
Listen to some Empowering Remedies for Home Owners, Secure Party Creditors, Metaphysics, on http://www.blogtalkradio.com/illuminatingminds
Duration : 0:8:1
How You Can Avoid Foreclosure Scams. Please visit MakingHomeAffordable.gov
Duration : 0:5:15