I went to local Foreclosure Seminar that was advertised as a city event. When I get there it turns out that is was being held by a private organization. They had representatives from lenders, real estate firms and lawyers. I immediately gravitated towards the real estate table and started asking questions. I was instantly appalled by the misinformation these people were giving the public. After a few more questions it became painfully clear the scam that being played before my eyes. It goes something like this. Someone would go to the table and ask about how to sell their home if they're upside down. They tell the person that it could be done and the way they do it is to price it at the lowest level and send in whatever offer comes in and start negotiating. What? Then they tell them that they could get hit with a 1099 for the difference between the sale price and the amount owed even if it's their primary home. What? And this is when it was all exposed. They them send them to the lawyers who tells them that they can get rid of the tax consequence by doing a bankruptcy. They can also, for a fee, negotiate with the lender to extend the time frame of the foreclosure. What? They are going to charge the Seller to write a letter and ask for an extension of the bank sale--that should cost the Seller the price of a stamp. They don't need to pay a retainer fee to write that letter. Ridiculous!
So here it is. The real estate company puts the home on the market at the lowest level of the market. They say that they don't pay attention to the latest sales just what the lowest active is and then price it below that. The Seller hires the lawyer for $2500 up front or $500 a month. When the Seller get an offer it is submitted to the lender and they start negotiating. The lender will not accept such a low price and the home goes into foreclosure. After that process the Seller then retains the lawyer again, for another $2500 to do a bankruptcy. So the Seller is out at least $5000 and now has a bankruptcy and foreclosure on their record. NICE! What happens to the house? It turns out the lawyer's real estate company represents investors that can get a really good deal. It is all spelled out in their website.
By the way, the lawyer owns the real estate company and work out of the same office. Their business cards and branding are completely different. They even set up on opposite ends of their table. Oh wait! The lawyer is a Realtor and has about 30 listings. Does anyone see anything wrong with this? Richard HELP!!!!
I went to the event organizers and told them of the problem and they just told me that it's business and they can't tell anyone how to go about it. What?
www.SidneyJimenez.com Certified Distressed Property Expert, helping homeowners in Broward and Palm Beach Counties, FL avoid forelcosure. Call me today 954-665-9449 or by email Info@SidneyJimenez.com
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