short sale: Morgan Stanley Predicts that Buy to Rent Will be Very Strong
- 08/14/13 05:58 PM
Although a lot of industry insiders are insisting that the time to buy rental properties as investments has come and gone in this housing market cycle, Morgan Stanley analysts say that the buy-to-rent market is still only “a fraction of where it could be” and is poised for “major growth in the coming years”. Today, this sector is worth about $17 billion; in the future, say the analysts, think more like $100 billion. The market is “a sustainable business with a long runway for growth,” they explained in a recent report.
I have to believe that with all of the … (4 comments)
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short sale: Increase in the Number of Deficiency Judgment Lawsuits
- 07/10/13 05:03 PM
There are a dramatic number of deficiency judgment lawsuits being filed. Many experts predicted this and it is happening. There is just too much money sitting out there for the lenders to ignore. Many states have lengthy statute of limitations and lenders are taking advantage of it. Additionally, many home owners who were in distress are now financially stable and this makes them an easier target.
Home owners quickly breathe a sigh of relief when the short sale is completed. However, for many owners, this is the start of their problems. In the past, it was possible to get a “waiver” … (1 comments)
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short sale: GMAC No Flip Addendum..Comical but Not Funny
- 08/26/11 12:36 PM
GMAC No Flip Addendum is quite interesting. A variation of the below has been circulating lately. In a relatively short document, there are so many issues raised. First, GMAC is defining what a "flip" is. There is no uniform or legal definiition, so let's call it what it is: an opinion only.
Second, what is "inflated" value? If I buy a blow up Elvis on Ebay for $100 and sell it for $102 that is "inflated" value! LOL
Third, in real estate, buying and reselling is NOT a short period of time. Thirty days, maybe, but certainly not 90 days.
Fourth, … (11 comments)
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short sale: Foreclosure Defense is the Practice of Law
- 08/14/11 01:05 AM
Foreclosure defense is the practice of law. You would not think that if your home is in default or foreclosure since there is a remarkable number of firms soliciting distressed home owners with offers of foreclosure defense and delay of foreclosure. Most of these firms have limited ability to help you, since they are not attorneys. Many are being charged with the unauthorized practice of law. My home state of New Jersey just took action against six such firms operating within the state.
The firms will try and lure you in with promises of foreclosure defense success or delay in the … (4 comments)
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short sale: Use of Revocable Trusts Over Stated and Problematic....
- 07/30/11 10:26 PM
There is a new and disturbing trend in foreclosure cases and short sales. "Experts" are advising distressed home owners to place their home in a revocable trust and appoint themself as trustee. There would be advantages to this, but I am suggesting that such home owners consider some free legal advice - and yes, I understand and appreciate the value of "free" advice!!
This is arguably fraud. It would appear to a lender or a judge, that this is an attempt to cloud title or delay or obstruct the foreclosure process. If the short sale is unsuccessful, there could be … (8 comments)
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short sale: Scary Outlook for Real Estate Agents and Investors.. A MUST READ!!!
- 07/09/11 12:22 AM
As always, there seems to be good news and bad news for real estate investors. The truly great news is that recent statistics indicate that 37 % of transactions are now completed with investors. This is up from a previous average of 30% (according to NAR). I personally view this as good news since investors are clearly keeping the market alive since they are completing more than one-third of the transactions.
The bad news?? Seems that major lenders are continuing to clamp down on investor deals. Wells Fargo has recently released a new standard approval letter than includes a NINETY DAY … (10 comments)
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short sale: Flipping, Flopping and Fraud...More Bad News for Investors
- 07/07/11 07:36 PM
Flipping, flopping, fraud….today there is more and more misinformation and disinformation in real estate. I had an agent from back East contact me with concern about a particular deal and that it may be illegal. I hear this EVERY day now and 95% of the time, the deal is not even remotely fraud. This particular case is one in which the BANK’s appraiser came back with a low figure. The bank hired the appraiser and neither the buyer or seller ever met the appraiser. The low appraisal gave the buyer a great deal. How is this fraud?
The agent directed … (137 comments)
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short sale: More on the Astonishing Bankruptcy Court "Game Changer"
- 06/30/11 11:06 AM
Many have made comments to my blog or emailed me separately in regard to my blog about a recent bankruptcy appellate case that could potentially revolutionize loan modifications, forensic audits, short sales, deficiency judgments etc. I wanted to review the case with colleagues prior to discussing it further. Last evening, I met with prominent tax and bankruptcy attorneys. I traveled from the Giant Litter box (Las Vegas) to Palm Desert, California and another traveled from Phoenix to Palm Desert to discuss this case – it is that significant.
The case is In re Veal and it involved AHMSI and Wells Fargo. … (29 comments)
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short sale: Set Phasors on STUN
- 06/24/11 10:11 PM
Yesterday, I spoke with a listing agent in Sacramento. My client and I were speaking with her about an offer on a listing. It is a short sale and the owner must sell because a sale date is approaching. We discussed the parameters of the offer that would be forthcoming in a day or so. Everything was great. The listing agent was happy and my client believed that he would be able to get a short sale approval.
Today, I receive an email from the listing agent and she advises that her BROKER decided that she would not participate in … (11 comments)
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short sale: Chinese Drywall Becoming a HUGE and Costly Problem
- 06/20/11 06:07 PM
I have been working on many short sales, Deeds in Lieu (DIL) and foreclosure defenses in Florida. I recently encountered an almost brand new home that contained “Chinese drywall”. We received an estimate to replace the toxic drywall with new drywall and the price exceeded $100,000! This is a huge problem that is not receiving a lot of media coverage. Perhaps because the affected (infected) areas are mostly Florida, Alabama, Mississippi, Louisiana, Virginia and Southeast Texas homes.
As hard as it may be to believe, there is actually a Chinese Drywall Complaint Center (CDCC) and they are now claiming that Fannie … (2 comments)
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short sale: My Most Important blog Ever...My Best Kept Secret
- 04/06/11 09:16 PM
I have had success with loan modifications and short sales. Tremendous success with foreclosure defense either as an attorney or an expert witness. There is one central element to all of this success: a report of title.
More often than not, there is some defect in the chain of title in foreclosure. Perhaps the Note was assigned; perhaps the Deed of Trust or mortgage was assigned. Rarely are the assignments properly perfected. In a foreclosure defense, it probably means that the servicing agent or the plaintiff is not the "real party in interest". In other words, they do not … (2 comments)
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short sale: Practical Considerations in a Short Sale, loan Modification
- 03/20/11 06:05 PM
Most real estate sellers, buyers and investors understand what a "short sale" in real estate means. It is not a new concept and simply means that there are not enough proceeds from an anticipated sale to payoff the existing liens and encumbrances. However, many people do not realize that the methodology to obtain and approval changes as does the terms that a lender may require in order to approve a short sale.There are business cycles that affect whether a short sale will be approved. Lenders have different times when they are more amenable to a short sale. There are many reasons for this, … (2 comments)
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short sale: More Foreclosure Mill Fallout
- 03/08/11 08:19 PM
The Law Offices of David Stern are closing this month after fallout from Robo signer and other problems in Florida. They were one of the big three foreclosure attorney practices in Florida. Fannie Mae and Feddie Mac stopped doing business with them last year. The Florida Attorney General is looking into their work product (as well as one of the other Big Three foreclosure mills in Florida).
I have had a lot of experience dealing with these firms (not Stern however) and I am disgusted as an attorney that such attorneys are allowed to practice law. Unreturned phone calls, no … (2 comments)
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short sale: Mortgage Forgiveness Debt Relief Act of 2007
- 02/23/11 08:17 PM
I have attempted to write a blog about this for a long time....for one thing, it is a long and difficult subject. It is also frequently misinterpreted and misunderstood. The MFDRA of 2007 was signed into law by President Bush (for whatever reason many seem to want to give credit to Obama for this...but it was 2007)!!! It was a response to the rapidly rising foreclosure crisis that was perceived to be the result of subprime loans.
One interesting provision of the Act is that it does NOT exlcude from forgiveness of debt consideration HELOC or equity loans unless they … (2 comments)
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short sale: An Update on Deficiency Judgment Considerations...
- 02/03/11 04:49 PM
Deficiency Judgments are an area of law, as they apply to real estate, that are frequently misunderstood and mis-stated. There are business cycles that help determine whether lenders will seek a deficiency and their are tax considerations as well.
The "investor" (lenders should call them who they really are - the government backed programs) cannot charge down the remaining debt until they have exhausted their means of collection. In other words, a lender cannot properly charge down a short sale deficiency amount until they have tried everything to collect the money i.e. obtain a deficiency judgment. That was a primary … (1 comments)
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short sale: PMI II
- 01/28/11 06:46 PM
I decided to post another blog on PMI since it is largely misunderstood and is seldom spoken about but it plays a MAJOR role in foreclosures and short sales. To further explain PMI - PMI does not cover the full exposure of the lender. They are covering the top portion (maybe 20% in most cases) plus some fees. In the case of a 90% loan, then PMI is usually 10% of loan amount. In order for the Lender not to void their claim for the PMI coverage, several things must happen. The lender must manage the default to its completion, usually … (3 comments)
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short sale: Analysis of Distressed Real Estate
- 01/27/11 07:13 PM
When I am first contacted by the owner of distressed real estate, I ask them THEIR goals. It is important to establish what they would like to do (i.e. keep the home, walk away intelligently, etc). The next step is that I advise them that there are three issues...
1). Cash flow issues - meaning their monthly money coming in vs, money going out. this is especially significant if the distressed property is an rental property and providing monthly rental income;
2). Tax ramifications...there are tax ramifications to virtually every resolution and these need to be addressed;
3). Credit issues.
I then … (2 comments)
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short sale: Confessions of an Industry Insider
- 11/29/10 06:35 AM
Every day I read various posts about short sales, foreclosures, loan modifications etc. There is a perspective that I would like to share as an industry insider. Why am I an insider?? I work with many other attorneys throughout the nation in these areas on behalf of home owners - short sales, loan modifications, deed in lieu, foreclosure defense, etc. However, I am also still listed as a foreclosure attorney for one of the nations largest (and most hated) banks.
The perspective that I would like to share is that PLEASE, PLEASE, have a third party negotiate the short … (2 comments)
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short sale: Real Estate Professionals and the Negotiation of a Short Sale
- 02/01/10 02:53 PM
Real estate professionals must be exceptionally careful in negotiating short sales on behalf of their sellers. There are many (thousands) of lawsuits pending in virtually every jurisdiction in which a homeowner has sued the real estate agent when the short sale negotiations did not culminate in a sale and the property goes into foreclosure. Right or wrong..and whether you agree or disagree with this trend, it is an inescapable fact that realtors are being sued. In Los Angeles and Orange County California, there are so many lawsuits against real estate professionals that it prompted proposed federal legislation that would prohibit anyone … (2 comments)
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Although a lot of industry insiders are insisting that the time to buy rental properties as investments has come and gone in this housing market cycle, Morgan Stanley analysts say that the buy-to-rent market is still only “a fraction of where it could be” and is poised for “major growth in the coming years”. Today, this sector is worth about $17 billion; in the future, say the analysts, think more like $100 billion. The market is “a sustainable business with a long runway for growth,” they explained in a recent report.
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