For Sellers

Alternative to Foreclosure

If you had been hearing about it  for a long time, but just kept busy with your normal daily task, take the time and read through this link on HAFA… what is that? did you miss out?  Not too late if you are still in escrow on a short sale, time to call everybody for S.o.S.    If you cannot open this link, it may be requiring a password exclusive to CAR members only;  if so, please shoot me an email with a specific question and I will copy and paste and forward it to you.   Here’s the link :

Home Affordable Foreclosure Alternatives Program

Distress Seller’s FAQ – Credit After Foreclosure, Bankruptcy, Short Sale:

Here’s the link .  It is a detailed Q&A  link I copied from our CAR Legal Section.  It is lengthy and comprehensive. Click it only when you are ready and have time to read .  If for some reason you cannot open it, perhaps because it requires that you are a member of the CAR (California Association of Realtors).  If that happens, please shoot me an email for a specific question and I will copy and paste the answer and forward to you.  Link below:

Credit After Foreclosure, Bankruptcy, or Short Sale.

5 Tips to Avoid Being Scammed

(excerpt from HAFA)

  1. Don’t pay up-front fees. Foreclosure consultants are prohibited by law from collecting money before services are performed.
  2. Don’t ignore letters from your lender or loan servicer. Responding to those letters is your best bet for saving your house.
  3. Don’t transfer title or sell your house to a “foreclosure rescuer.” Beware! This is a scam to convince homeowners they can stay in the home as renters and buy their home back later. It might also be part of a fraudulent bankruptcy filing. Either way, a scammer can then evict the victim and take the home.
  4. Don’t pay your mortgage payments to anyone other than your lender or loan servicer. Mortgage consultants often keep the money for themselves.
  5. Never sign any documents without reading them first. Many homeowners think that they are signing documents for a loan modification or for a new loan to pay off the mortgage they are behind on. Later, they discover that they actually transferred ownership of their home to someone who is now trying to evict them.

Weekly Fraud Alert: HUD campaign promotes homeowner scam awareness

HUD has launched a new campaign in Miami, Chicago, and Los Angeles called “Know It. Avoid It. Report It.,” a campaign that aims to direct homeowners facing foreclosure to trusted resources and housing counselors, and to solicit the support of homeowners in shutting down scammers who regularly target the elderly, Hispanics, and African Americans.  Both objectives will be pursued through education and outreach, anti-scam reporting tools, and close cooperation with federal, state, local, and non-profit partners.

Highlights of the Know It. Avoid It. Report It. campaign include:

  • Information on how to avoid becoming a victim
  • Scam artist red flags and fraud warning signs
  • Complaint form and hotline to report fraud or suspicious activity
  • Resources for finding HUD-approved counselors and free housing workshops in every state
  • Names of individuals and companies identified by law enforcement agencies who have allegedly committed loan modification fraud or foreclosure relief scams
  • Education, outreach, and grassroots efforts in hardest hit communities include:
  • Multilingual brochures, posters, flyers, and other outreach materials
  • Television, radio, print, mass transit, and out-of-home advertising
  • Social media activity

My Observation (Nov 22, 2010)

About 95% of sales in Southern California is under the category: preforeclosure and foreclosed homes, known as distressed sales which is 98% to 100% short pay and bank repos (real estate owned).  Inside the 5%, there are private investors who bought through trustee sales and hence own these homes free and clear with the intent to turn around and sell to endbuyers.  These private investors compete with the short sale listings.  Not that they are worth less; they are worth way better than the short sale properties.  Short sale properties way outnumber the privately owned properties.  The buyers flock around short sale homes and bank repo and made to wait indefinitely with high hopes that they be the ones.  Multiple buyers on one short sale homes…  that’s where our buyers are.  They are missing out on these private REOwners who are remodelling homes, refurbishing, offering buyer incentives, dropping prices until they sell.  They will sell.   Those Sellers who are aware of this market  condition will make it through and do well.