Reminder to all Realtors:  Be aware; Be Watchful and be Informed:

Fraud and Scams are on the Rise:  Be willing to go the extra mile to protect the public

Part I

With the rise of mortgage fraudulent behavior and foreclosure scams, Realtors must know that California has been hit hard by the foreclosure crisis. 

Last year alone, there were foreclosure filings against 546,669 California homes.  It is projected that between 2009 and 2012, a total of 2 million California homes will enter the foreclosure process.

Furthermore, news report indicates that Department of Justice has received thousands of complaints related to foreclosure scams, mortgage fraud, and mortgage servicing practices.  Being educated, informed, and aware of the following illegal practices, such as:

1.      Predatory lending,

2.      Unfair business practice in originating loans,

3.      Deceptive marketing,

4.      Loan modification and foreclosure consultant scams;

In addition to Unethical practices, we must be determined more than ever to be committed to adhere to the N.A.R. Code of Ethics-by raising the standards of real estate practice, preserving the right of property ownership in the interest of the public welfare; promote and maintain high standards of conduct in all transactions of the real estate business. 

Clearly, as Realtors we must constantly educate, evaluate, inform, and question ourselves to make sure that not only are we acting ethically and legally; but also we are exercising good Morals and Values in our dealings with the public. 

As Realtors, we must be committed to working hard to protect the public from any hint or presence of Fraud, Scams and Unethical behavior.

Caution: The rise of Mortgage and Foreclosure Fraud and Scams are here:

 As Realtors, what are we doing to educate, and inform ourselves to do better and to be better?  First Step:

Being a willing and ethical Realtor, we can take no safer guide than that which has been handed down through the centuries integrated in the Golden Rule:

“Whatsoever ye would that others should do to you, do ye even so to them.”  This high and lofty ideal of moral conduct in the real estate business is all about a common responsibility for integrity and honor.

Second Step: This simply means:

1.      We must be obligated to treat all parties honestly (Duties to Clients and Customers); Article 1:

2.      Realtors shall not deny equal professional services to any person for reasons of race, color, religion, sex, handicap, familial status, or national origin (Duties to the Public); Article 10:

3.      Realtors shall not knowingly or recklessly make false or misleading statements about competitors, their businesses, or their business practices (Duties to Realtors); Article 15:

Reference: Code of Ethics and Standards of Practice of the National Association of Realtors

Specifically, what can we do as Realtors to avoid the pitfalls of illegal and unethical practices?

Third Step: I believe in order to operate at this high level of professionalism, we need to know and put into practice the Big Threes:  Morals, Ethics and Values:  There is Power in Knowing the Difference; but even more powerful is putting ‘the big three’ into action:  

MEV: Morals, Ethics, and Values:

Morals

·        Morals have a greater social element to values and tend to have a very broad acceptance.

·         Morals are far more about good and bad than other values.  As Realtors we must judge others more strongly on morals than values.   A person can be described as immoral, yet there is no word for them not following values.

·        Morals are the motivation based on ideas of right and wrong.

·        Example: Treat others the way you want to be treated

·         

Ethics

·        Ethics tend to be codified into a formal system or set of rules which are adopted by a group of people/organization i.e. N. A. R (National Association of Realtors). Ethics is the rules or standards governing the conduct of a person or the members of a profession.

·        Ethics of principled conviction: If you have good principles, then you will act ethically.

·        Ethics of responsibility challenges this notion, saying that you must understand the consequences of your decisions and actions and answer to these, not just high-minded principles.  Example: We see the medical maxim ‘do no harm’ is based in the outcome-oriented ethics of responsibility. 

·        Ethical conduct, or professional decision-making is a necessary requisite to being called a professional.  A professional must be able to properly balance competing values in making decisions that affect both society and the client, especially where personal, societal, and cultural values conflict. 

Values

·        Values are the rules, by which we make decisions about right and wrong, should and should not-good and bad.  They also tell us which are more or less important, which is useful when we have to trade off meeting one value over another. 

·        Values Defined: Beliefs of a person or social group in which they have an emotional investment (either for or against something):

·        Examples of Values such as loyalty, honesty, respect, and sensitivity to the public.

Finally, being willing and committed to Treat others the way you want to be treated, to do no harm, and to live a life of loyalty, respect and honesty will eliminate the pitfalls of being caught directly and indirectly in any type of fraud and/or scams.

What say you?  Any other suggestions?  What are you doing to avoid pitfalls of fraud and scams?  Let me hear from you regarding how we can avoid the pitfalls of unethical and illegal practices.

Hollywood Homes by MC

MC Griffin Campbell, Broker License #: 01819507

Short Sales and Foreclosure Resource (SFR) Certification

Seniors Real Estate Specialist Designation (SRES); MFT, M.Div.

323-382-4364: 323-464-5431      

www.hollywoodhomesbymcampbell.com

email: hollywoodhomesmc@aol.com