Who makes the real estate market? Buyers and Sellers. Do buyers and sellers mark a stance in the real estate industry as well? Of course they do! Without them, there would be no industry, no market, no foundation to build houses and homes, no real estate agents, or home loans.
But, what aboutbuyers and sellers? Have we forgotten that it is all about them? Putting our fiduciary duties to practice? What about the silent screams from victimized homebuyers and homeowners that permeate through massive stacks of real estate loan contracts piled up on someones desk at a bank or lending institution awaiting foreclosure or their loans modified? These loans are documents that echo the frustrations from real estate loan contracts gone wrong.
A lot of mistakes have occurred in the past years and the damage is unquestionably done. Who is to blame for the mortgage crisis is a query that does not dissolve with a snap of a finger. It is going to take years to rectify the foreclosure saga that entails too many financial hardships and fingers pointed at in every direction, yet solutions seemed to be a parallel shadow of loan medication programs, yet once again, another one has bit the dust.
Real estate agents bitter? How about buyers and sellers? The ones that make our market, the market that we enthrall ourselves in to because we love what we do, sell real estate, help buyers and sellers achieve homeownership and investment goals?
Meanwhile, back in the real estate jungle, juggle and struggle...
I Refuse to Become Bitter...Part Tres: Understanding Human Behavior
The State of Florida Mortgage Frauds on the Rise: Fraudulent Loan Modification Companies
Florida mortgage frauds are an epidemic and are on the rise while vulnerable homeowner's that are being subjugated by up front fees are increasing in numbers as loan modification companies are making false statements and services for services not yet completed.
The State of Florida was ranked #2 in foreclosures with 245,000 foreclosed homes in 2007 alone while it was ranked the highest in mortgage fraud. In the meantime, unscrupulous scam artists encumbered vulnerable homeowners into deceptive ‘foreclosure avoidance' by charging illegal up front fees, an act punishable by law according to Florida Statutes s.501.1377.
More than *50% of homeowner's who are or think they will be behind on their mortgage payments fail to contact their lender directly and feel that they need to contact a third party to rescue them of their defaulted mortgage payments, according to the Office of the Attorney General's website in Florida.
Homeowner's that are facing difficulties in making their mortgage payments are encouraged to contact their primary lender before contacting any ‘mortgage rescue companies' who claim that they can stop foreclosure or modify their mortgage by paying up front fees until services have been rendered from such acclaimed mortgage rescue companies. Your lender may be able to help you at no charge and have workout options to help you save your home.
But, if you feel that you have already fallen prey and have been victimized and scammed by a disreputable mortgage loan modification company, you may file a complaint by calling 1-866-9-NO SCAM or go to www.myfloridalegal.com
The following are current Florida investigations with accusations by the Office of The Attorney General in the State of Florida from companies that are being investigated in various cities of Florida by the Economic Crimes Division.
"Giving appearances that they provide federal government funds"
"Unfair and deceptive trade practices (most common complaint)"
"Utilizing client contract not in compliance with Florida Statutes s.501.1377"
"Collecting up-front fees from homeowners facing foreclosures s.501.1377"
"Continuing monthly withdrawals from consumer's bank account from collecting up-front fees and claiming to be a non-profit organization"
"Charging up front fees with a lawyer referral for loan modifications"
"Loan Modification Company operating under a fictitious name: (Fictitious Name Registration Act 865.09 FS.)
"Misrepresentation in deal documents"
"Using form contracts that do not appear to comply with disclosure and refund requirements"
"Soliciting and securing fees prior to completion of services in violation with s. 501.1377"
"Failure to perform services"
"Unlicensed practice of law"
"Unethical lawyer referrals in violation of Florida Bar Rules"
"Making performance guarantee, which guarantees actions of third parties that cannot be guaranteed"
"Overstating success rate, excessive fees F.S. Chapter 817 Part IV - Excessive Fees for debt management services"
"Deception to avoid invocation of due on sale clauses"
"Misrepresenting relationships with lenders"
"Falsely advertising the presence of an attorney "
Consumer awareness and education is a prevalent key to preventing a homeowner's dream into a nightmare. Help spread the word.
Consumer Resources:
Florida Statues s.501.1377 What you need to and should know about your rights as a homeowner seeking mortgage loan relief.
It is highly advisable that you hire an attorney before signing any documents regarding your mortgage loan:
If you are not able to afford an attorney, a HUD representative may help assist and direct you to the program(s) best suitable and available for you.
Go to the HUD website for additional information concerning mortgages or the Housing Counseling Agency to help you find a HUD approved housing counselor nearest you. 1-800-569-4287.
Mortgage Fraud Blog by Rachel Dollar - Ms. Rachel Dollar is an attorney, certified Mortgage Banker, and a nationally recognized speaker on mortgage fraud, and handles fraud recovery litigation for lenders and secondary market investors nationwide.
One of the biggest complaints of buyers and sellers in the real estate business is that their Realtor (or their Realtor's) does not communicate with them enough, an attribute that Realtor's should acquire from day one of setting foot in the business. In essence, some Realtor's have become desolately bitter from the business. Regardless of the circumstances of today's uncertain real estate market and saga, maybe it is time to quit or, go with the flow. Uncertainties does not make or break an industry or a market, only individuals who choose to live, act, and think that it does.
I just wrote on my Facebook status two days ago how rude and cold real estate agents can be and how they have seemingly lost their finesse in the business. One person replied, "Yeah, its true", and another, "Not at EWM!"
Not that I discredit the philosophy of any brokerage's agent/client/customer relations. It is not the real estate firm/agency/broker that can shape an agent's business character per se (or so it is), but to me, it is the agent that makes a name for themselves while representing the real estate brokerage firm that they work for.
Although a broker's business' mission, vision, and philosophy reflects the identity of their business with professionalism, integrity, reputation and respect within a particular company and their agents, the majority of the times brokers have a company policy that helps to personify professional ethics within this industry, a practicality that should remain that way. But not everybody is on the same page of how professionalism and ethics plays an imminent role in the real estate business.
Our attitudes can make or break a company but most importantly, our reputation as real estate agents. There is one agent that I would NEVER call. My apologies for Mr. / Mrs. Buyer for my indirect/'unprofessional'/'unethical' behavior, but I cannot tolerate the fact that another Realtor has offended me or treated me with so much disrespect that they devalue my persona and discredit the hard working years of experience as a Realtor. I refuse to become bitter...
Part I of a A Mini Series of the Daily Life of a Realtor - I Refuse to Become Bitter...
The first time homebuyers tax credit of $8,000 has been approved by HUD for all FHA loans. But don't get too excited too quickly. If you get a chance to read the mortgagee letter, ML 2009-15, it states that you can't use this tax credit for the required down payment of 3.5%.
HUD originally put out mortgagee letter 2009-15 on May 12th, but was rescinded the next day. Please read about that here : $8,000 tax credit rescinded by HUD. For some reason, it was prematurely placed on HUD's web site, but apparently wasn't finalized. Now we have a new version and if not read correctly, you could be putting misinformation out there. So what does the new mortgagee letter state?
Here is the positive part about the tax credit. You can receive the first time homebuyers tax credit upfront, but not through the IRS. This would be illegal. Please read : It's illegal to receive your tax credit before you close on your home. Buyers - BEWARE, please read that, because too many people are saying that you can get the money directly from the IRS prior to closing. The IRS & HUD both say no!!!
So how can you receive this upfront? It can be given to you as a second or a silent second from any Federal, State, or local agencies, and any FHA mortgagee or any FHA approved non-profit organization. People, in layman's terms, this is already acceptable by HUD's standards, except for the lender that is now able to give the monies upfront in a form of a 2nd mortgage. Another terminology is that this can be an advance loan from any of the entities mentioned above.
Summary : Essentially, this means that the entities mentioned above, are purchasing this tax credit on your behalf and giving it back to you. The short version of this is that you can use some of the money from the $8,000 Tax Credit as your down payment, but after you put down the first 3.5% of that down payment. Meaning, you have to come up with 3.5% of your own money still. With FHA loans, it can still be a gift from a relative/family member. It also can come from non-profit or government agencies to be used as your initial down payment, but not used through the tax credit. Overall, the tax credit that is advanced, can be used for all closing costs. But you can't receive monies back at closing.
And again, keeping in mind, it's illegal to receive this tax credit upfront directly from the IRS. There is more verbiage in the mortgagee letter 2009-15 , but the main point is that you have to have 3.5% of the downpayment yourself, before you can use the tax credit that would be 'loaned' to you.
THOUGHTS??? - Well, in all honesty, how does this truly help? What is the gov't thinking here? As a buyer, I would still need the initial 3.5% of my monies for the down payment. Again, needing money to buy. I know some of you are for this fact, that buyers should have skin in the game. But keep in mind, this was not the true demise to our foreclosure mess. We need to sell houses to keep this economy going. Just my opinions and food for thought. thanks
My Series on the First time homebuyers $8,000 tax credit - Everything you need to now, from start to finish - What's allowed and what's not allowed :
Helping buyers and sellers beat ramifications that may hinder a real estate transaction. Informative FHA expert advice written by Jeff Belonger, FHA Expert -Infinity Home Mortgage Company, Inc., New Jersey
Do you know the difference, as a consumer or even as a realtor? It can be deceiving when shopping for a home, because you might think that you are fully approved, but you aren't. Why doe this matter? There are several reasons why.
Pre-Qualification Letter
Just a standard letter by the lender stating that they have either verified your information over the phone or from your originals. The loan officer will review the information, anything from credit, to income, and with regards to assets. They then will place you in a certain program and go over the details with you. Usually to put an offer on a house, the realtor would want a pre-qual letter to accompany the offer that they will give the seller's agent. It will usually have a specified loan amount that you are qualified up to in regards to purchasing of your home. This paper doesn't always have the weight that one might think. There are many reasons why to this.
There have been some loan officers known to not even check your credit.
Some lenders just put anything down to get you comfortable, thinking that it's easy as 1-2-3.
Some consumers who thought were pre-qualified actually weren't, because the loan officer didn't really know how to qualify. Meaning, they didn't know how to read the credit, came up with the wrong income, etc etc. These mistakes could put you into a new loan program that might have a higher rate. Worst of all, that you wouldn't be qualified period.
Now, don't get me wrong. I am not saying that this happens often, but that it has happened in the past.
Above is a copy of a Pre-Approval letter, better known as a Commitment Letter or a Loan Approval Letter.
This type of letter and or approval is very important for several reasons.
All of your information has been verified and approved by an underwriter. The only time that this might need to be updated is if there is a change in your income or if the approval has expired. Depending on the type of mortgage program, your credit is good for 45 to 90 days and would be listed on the commitment letter.
With this approval, you might have a better chance at getting your offer accepted. Why? Because this would supersede any pre-qual letter. I have seen a few clients actually get a lower offer accepted because of this type of approval. This is a more powerful tool than anything else offered.
Basically, this form states that you are fully approved. Everything except for an appraisal, which would state "subject to an appraisal" and possibly in regards to title insurance also.
This commitment letter would show you what is still need to finalize the approval.
As a consumer, you want to be careful on how you shop for your lender. It's recommended to speak to friends, family, and co-workers for a referral of someone that they have used and trusted in the past. Sometimes your realtor has a few trusted lenders that they have worked with over the past several years. If you trust the realtor, this might be your best option.
One last thing to always keep in mind. When interviewing your loan officer, a very good one would ask you about your goals. He/she would want to give you different options and always be looking out for your best interest. Not just giving you what you want or think might be best for you. Just because your friend received a certain type of mortgage, doesn't mean it might be best suited for you. Remember, there is a Big Difference in regards to the different types of letters.
Looking for a rental property nowadays can be an intense experience, especially when there can be doubts that a rental may be a foreclosure property. But when you are fortunate to rent a property that is a normal rental that you look forward to moving into, another question may rise as to the maintenance of the apartment/home - Wear and Tear.
What is Normal Wear and Tear?
Just as a vehicle has normal wear and tear, e.g., tires, hoses, paint abrasion's, dents, scratches, scuffs, and fabric discoloration, rental properties also have normal wear and tear, such as paint, carpeting, walls, and appliances.
Who is Responsible for Normal Wear and Tear?
It all depends how you confront the situation prior to move-in. Before you move into a rental, make sure that your landlord provides you with a Move-In and Move-Out Inspection List (or, Walk-Through List). If the landlord does not provide you with a Move-In and Move-Out Inspection list, you may demand to document any damages that the rental had prior to moving into your place. This will avoid any fees that the landlord may deduct from you security deposits for damages that were not caused by you but actually by a prior tenant.
Make Sure you Inspect and Document Everything Prior to Move-In Date (Walk-Through)
Just because a rental property has a couple of years of new construction does not mean that everything may be in actual tip top condition although we hope and assume that things are. Same principle goes to a buyer/investor when purchasing a home.
Use your Camera and Take Images
Another way to document wear and tear damages of a rental is to take images. As they say, a picture is worth a thousand words. A camera is also a great tool to have when doing your Move-Out Inspection List as well.
There is Always Room for Negotiations
You may also negotiate fixing or cleaning the apartment with prior damages and have the landlord deduct it from your security money deposit or your rental monthly payments.Remember, make sure it is done in writing and document everything that you did for your time and money. Landlord should rectify any prior damages done to the apartment at their own expense prior to your move-in date. Some landlords are also willing to negotiate so ask, ask, ask!
You can also apply the same principle when doing your Move-Out Inspection List. Some tenants like to paint the rental with their own colors to match furniture or simply to liven up the place but must repaint back to white prior to move-out. Painting may cause you your whole deposit security money depending on how many rooms were painted.
Not all Landlords are out to Get your Money
A responsible and reputable landlord and property manager should supply you with the proper Move-in and Move-Out Inspection List form, ask for it!
Or, you may demand to do your own Move-In and Move-Out Inspection List. If the landlord/property manager refuses to do so then it is time to move-on!
3/2 Short Sale $215K 15055 Michelangelo Blvd. #6-202 Delray Beach, FL 33446
Location: Murano at Delray Beach Condominiums
The Murano at Delray Beach, one of Delray's most sought after neighborhoods. Located ideally between Boca Raton and West Palm Beach. Tastefully upgraded kitchen with granite counters, S/S appliances, wood cabinetry, hardwwod flooring, granite bathroom counters, W/D utility room, detached garage, controlled access community gate. Also Delray Beach Marketplace coming soon to the neighborhood. Additional images see Virtual Tour. Short Sale - Cash Offers Only.
Don't let this week's wet atmosphere give you the blues. Instead, opt for a weekend full of cheerful rhythms from samba to mambo to lift your dancing spirit this weekend at the infamous Hollywood Beach Boardwalk off Hollywood Boulevard and A1A.
Hollywood Boardwalk is best known for its popular beach attracting events such as Ocean Dance, Hollywood Beach Latin Festival, Global Groove, and many more events that are weekly, biweekly and monthly free admission events attracting locals and visitors who truly enjoy what Hollywood Beach has to offer for the entire family.
Brazil on The Beach event starts this Friday, Saturday and Sunday March 20th through the 22nd.
For more information please visit hollywoodfl.org or call 954-924-2980 for event hours.
It's hard enough to fathom the delinquent acts that have developed into our financial crisis yet the numbers of scams that perpetrators are using are in increasing numbers.
The most recent scam alert from the FDIC dated January 7, 2009 states that there are "E-mail[s] Claiming to Be From The Federal Reserve Bank"
In the last couple of years, Southeast Florida residents have been victimized by door-to-door 'salesmen' claiming to be repairmen or utility workers who prey especially on the elderly. The elderly have victimized in numerous occassions by being robbed out of money and/or services not rendered according to local television news.
There is also a scam alert from the IRS which warns consumers that "...if it sounds to be too good to be true, it probably is", an old cliche that we are mostly familiar with.
The Broward County, Florida website has developed a Consumer Protection web page and has compiled a list of scams and alerts, warning consumers to be on the lookout and to prepare themselves from devious perpetrators who claim to be someone that they are not. The website focuses on key scam issues that perpetrators are using to exploit their victims. The website also gives advice and information on what to do in case you have fallen prey of these malicious acts, emphasizing on how to practice safety precautions on how not to fall prey on the hands of these criminals.
Florida ranks #2 according to a Mortgage Asset Research Institute Study: Mortgage Fraud Rises As Sales Decline ~DREN March 17, 2009 - The Associated Press
Federal Trade Commision: Rescue Scam Consumer Facts - How Scams Work
Consumer Resources: National Association of Consumer Advocates (NACA)
For more information on criminal scams and alerts visit your local state, county, or city websites for recent scam activities. Although we cannot stop crimes from occurring and will always exist, we can prevent and outsmart scam artists from making more victims out of innocent ones.
The area of expertise all Americans have mastered is bargain hunting and bargain shopping. We have to, to survive. When we venture to the grocery store, we may purchase a can of house brand corn over the other brands; unless we are corn connoisseurs, and truly believe a certain brand tastes better, we are happy to salvage a few pennies.
Buying and selling a house is similar, though of lot more is at stake than in selecting vegetables. After buyers figure out what they want in a home, where they want to be located, and what the price range they want, they begin to research the best deals. With most subdivisions, the houses are built very much alike. Your home must have something to stand out from homes in your subdivision or your area. Instead of duplicating what everyone else has already done wrong, do your homework, and research! Sell it low!
Houses are sitting on the market and home owners have been dropping prices consistently trying to attract potential buyers. Once a house has been on the market too long, buyers may begin to think something is wrong with the home. If price keeps dropping the longer it is on the market, buyers assume it was overpriced.
Some steps you can take when setting your price is to first have an appraisal done. If you can, have more than one done by two different companies. This will keep you in line with the current market trends and prevent your agent from having to call 911 when you hear the value assigned by an objective third party. Once your appraisals are done, discuss pricing options with your agent, and consider dropping the initial starting price by at least 5%. This will show prospective buyers that your home is not overpriced, and you are competitive to sell.
When your home is placed on the market, make sure it is ready to go on the market. Always be one step ahead of what buyers will expect. Make sure all repairs are done, make sure your home is clean inside and out, and make sure everything is put away. This way, if you have to lower your price, you will be able to and you will still have your competitive edge. The market, unfortunately, is the worst it has been in 30 years, and if you are in a position where you have to sell your home, be prepared. Do your homework and research, and when you are ready - sell it low!
Sellers! There are two sides to every story. Your competitive selling strategy will help you sell your home more quickly so that you can take advantage of the great deals available to you as a buyer of your next home. Call Don Wenner today to discuss selling strategies in this tough market and locate your next Allentown home.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
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The area of expertise all Americans have mastered is bargain hunting and bargain shopping. We have to, to survive. When we venture to the grocery store, we may purchase a can of house brand corn over the other brands; unless we are corn connoisseurs, and truly believe a certain brand tastes better, we are happy to salvage a few pennies.
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