Dave Thurman's Real Estate Blog » 2009 » July

Real Estate Foreclosure Scams

Dave Thurman — Wed, 29 Jul 2009 04:15:42 +0000

With rising unemployment and 1.9 million foreclosure filings reported in the first half of the year; scammers are coming out of the woodwork in droves. Due to the recent credit crunch and less than careful lending practices by banks, more people are having trouble paying their mortgage. And because the housing market is in a slump, its harder for homeowners in financial distress to sell their home.

Don’t Lose Your Home to Foreclosure “Rescue” Scammers!

Equity Skimming

In this type of scam, a “buyer” approaches you, offering to get you out of financial trouble by promising to pay off your mortgage or give you a sum of money when the property is sold. The “buyer” may suggest that you move out quickly and deed the property to him or her. The “buyer” then collects rent for a time, does not make any mortgage payments, and allows the lender to foreclose.

The Balloon Payment

Another lender offers to save you from foreclosure by refinancing your mortgage and lowering your monthly payments. Look carefully at the loan terms. The payments may be lower because the lender is offering a loan on which you repay only the interest each month. At the end of the loan term, the principal – that is, the entire amount that you borrowed – is due in one lump sum called a balloon payment. If you can’t make the balloon payment or refinance, you face foreclosure and the loss of your home.

Signing Over Your Deed

If you are having trouble paying your mortgage and the lender has threatened to foreclose and take your home, you may feel desperate. Another “lender” may contact you with an offer to help you find new financing. Before he can help you, he asks you to deed your property to him, claiming that it’s a temporary measure to prevent foreclosure. The promised refinancing that would let you save your home never comes through.

Once the lender has the deed to your property, he starts to treat it as his own. He may borrow against it (for his benefit, not yours) or even sell it to someone else. Because you don’t own the home any more, you won’t get any money when the property is sold. The lender will treat you as a tenant and your mortgage payments as rent. If your “rent” payments are late, you can be evicted from your home.

Phony Counseling Agencies

Some groups calling themselves “counseling agencies” may approach you and offer to perform certain services for a fee. These could well be services you could do for yourself for free, such as negotiating a new payment plan with your lender, or pursuing a pre-foreclosure sale.

The problem is that many homeowners, when faced with foreclosure, panic and think that paying a for-profit company will get them better and faster results. Unfortunately, that typically doesn’t happen.

Stay away form companies that:

Ask you to pay a fee before the service is rendered.
“Guarantee” they can stop the foreclosure proceedings.
Tell you to stop paying the mortgage company.
Tell you to make your mortgage payments to the “rescue” firm.
Recommend that you cut off contact with your lender.

What Could Have Been!

Dave Thurman — Tue, 21 Jul 2009 05:40:45 +0000

Tom Watson said “it could have been one hell of a story”…If you are into golf and over 50 years old, the Open was one of the most thrilling Sundays in a long time. Even though Tom Watson did not win the tournament, he proved and reminded many of us that age is just a number. At age 59 he missed by one stroke being the oldest professional golfer to win a major by more than 10 years. Many of us were pulling for him and living his dream!

His grace in defeat should be remembered!

Are Stockton CA Home Prices Increasing or Decreasing?

Dave Thurman — Wed, 15 Jul 2009 02:20:22 +0000

Almost every home I have listed in the last six months or so was priced properly according to the most recent real estate data (comps). But also, almost every home received one or more offers at and sometimes above the asking price! What does all this mean? Am I working harder and better than all the other Realtors? Is my marketing that much more superior than the other real estate companies? I would like to say yes, but most likely all of us in the business are having the same results. Properties are selling quickly, if priced correctly to the market place and there are plenty of buyers who are ready, willing and able to buy.

Stockton CA Residential real estate inventory is low and we have lots of buyers who want to buy now!

The median price paid for a Bay Area home jumped in May as more expensive homes started to sell again. The overall number of homes sold increased for the ninth month in a row… full story

In my opinion… the worm has turned! What do you think?

Realty World – Dave Thurman