theshortsalegenius.com As we’re entering the second half of January 2011 many real estate agents are reevaluating their business plan. Lee and I sat down and recorded our perspective on what we can expect from the real estate market for 2011 on. Our Predictions HAFA will double it’s record in 2011 and help 1400 homeowners! More real estate agents will be come discouraged with the market. Most Trainings for agents will entirely miss the mark and focus on everything but the real problem that agents deal with and most agents will happily pay for it until they realize they are out of business and money. The market won’t bottom out until 2015. Real estate prices will hit 2006 levels in 2026 If we’ve already hit the bottom, we’ll be seeing short sales/foreclosure as a major part of the market for at least 5 more years. I easily understand why someone might think we’re biased. I’d encourage you to watch the entire video above and then research the subject yourself and see if you don’t come to similar conclusions. The sad fact is, as a nation, we’re in a bad spot. Showing profits was a much bigger focus than paying attention to what was being sacrificed to show the profits. The result is the hole we find ourselves in now. I’ve said it before, the quickest path to recovery is an army of properly trained agents, armed with the truth about banks and short sales that can competently assist homeowners to avoid foreclosure via short sale. This will net the banks more than they would …

I’ve read past answers to this question but the market has changed. Banks are struggling to get bad debt off the books. How are Short Sales being handled today now that there is no tax penalty? (Ref. Mortgage Forgiveness Debt Relief Act of 2007 and Emergency Economic Stabilization Act of 2008) How is it being reported to credit agencies by the banks these days?

I am retired teacher and know nothing about how to buy bank owned or reo property. Is it best to still go through an agent? Do I go to the courthouse steps? Any ideas? I would be interested in other townships.

Short Sale Market Latest ‘Boom’ for Corporate Fraud and Racketeering

Free Online Articles Directory

Why Submit Articles?
Top Authors
Top Articles
FAQ
ABAnswers

Publish Article

0 && $.browser.msie ) {
var ie_version = parseInt($.browser.version);
if(ie_version Login

Login via

Register
Hello
My Home
Sign Out

Email

Password


Remember me?
Lost Password?

Home Page > Finance > Mortgage > Short Sale Market Latest ‘Boom’ for Corporate Fraud and Racketeering

Short Sale Market Latest ‘Boom’ for Corporate Fraud and Racketeering

Posted: Jul 20, 2011 |Comments: 0
|

]]>

To the nearly 250,000 people this month who will have to look hard at their financial solvency options like a short sale or a reverse mortgage because of impending foreclosure, beware of the crooks. The foreclosure real estate “economy” is rife with new forms of sophisticated white-collar crime.

Reverse Mortgage Scams

The majority of Americans are, at least, dimly aware that financial managers, corporate accounts and other bean-counting professionals are steeped and practiced in mathematical alchemy—that medieval science that once claimed, with the right stuff, a cheap, worthless metal could be turned into gold. If you recall, it was this one-plus-one-must-equal-three mentality held by businessmen and economists that lead to the financial crises. However, most of us assume that kind of wizardry and mass deceit is well behind us, or the exclusive territory of Wall Street. Gone? No. Dispersed and diluted? Yes–and still very potent.

With a reverse mortgage agreement, the bank agrees to buy the equity of a borrower’s home and then makes payments to the borrower. Confused? Just wait.

In one recent RMA scam in Southern Florida, mortgage professionals linked up senior citizens with third party, reverse mortgage lenders only to sell them down the river.

]]>

During the equity evaluation, those mortgage ‘professionals’ would inflate the equity of their clients’ homes—sometimes as much as 500%. Once the third-party lender approved the fraudulent loan application, the mortgage professionals would divert the proceeds into their accounts and arrange for a short sale auction with the seniors citizens’ original lenders. Finally, with the capital from the third-party, reverse mortgage agreement, the mortgage professionals would pay off the short sale and pocket the difference of the two sums.

Another fraudulent practice to look out for when in short sale talks is “flopping.” This is where a house is sold in a short sale and quickly resold for a profit. It is considerably more insidious than the previously mentioned RMA scam because brokers are less accountable to lenders and the Federal Government.

Short-Sale Tips:

Firstly, a short sale is when the proceeds from a real estate sale are short of the balance due to the bank. Presumably, this sale is necessary because of imminent delinquency on behalf of the borrower. In such cases, the bank agrees to take less than the amount originally borrowed and the borrowers’ house is put up for auction to cover this new amount. 
The bank agrees to this new, lesser, or ‘short,’ amount due to borrower hardship.
There are serious penalties for going into foreclosure. With a short sale, the borrower is able to maintain good standing with creditors.
Short sales are cheaper and faster than foreclosure (think, less pain).
Many lenders already have departments set up to deal with short sales. The majority of those departments are equipped to deal with short sale transactions and have predetermined criteria for such transactions.
Importantly, neither you nor the bank is required to agree to a short sale.

Short selling is a last, best option for many people facing foreclosure. Don’t be scammed though. If you don’t think you can do alone, if you are being harassed, hassled or just generally feel uneasy about the brokers of a short sale or the attitude of your bank, seek out legal advice.

For more information visit: http://leefinancialhelp.com.

Start increasing your traffic today just by submitting articles with us, click here to get started.
Liked this article? Click here to publish it on your website or blog, it’s free and easy!

Christopher M Lee -
About the Author:

Christopher understands that financial hardships can affect honest, hard-working people. Growing up in a very blue collar family and rural area of Indiana , money didn’t always come easy for his parents. The struggles his family faced in his childhood made a significant impression on his business philosophy today. As a Fort Worth foreclosure attorney his practice has given him the opportunity to directly impact the lives of many people. For more information visit: http://leefinancialhelp.com

]]>
Questions and Answers

Ask our experts your Mortgage related questions here…

Ask

200 Characters left

I was denied a Hamp mod due to NPV caculations. My lender will not explain these terms to me. They said they cannot help me. I need to short sale and get out. Can u please help me
What are tax implications of short sale ?
What are the repercussions of a short sale ?

Rate this Article

1
2
3
4
5

vote(s)
0 vote(s)

Feedback

Print

Re-Publish

0) {
ch_selected = Math.floor(Math.random()*ch_queries.length);
if(ch_selected == ch_queries.length) ch_selected–;
ch_query = ch_queries[ch_selected];
}
}catch(e){
ch_query = document.title;
}
]]>

Source:  http://www.articlesbase.com/mortgage-articles/short-sale-market-latest-boom-for-corporate-fraud-and-racketeering-5046854.html

Article Tags:
short sale, mortgage professionals, short sale market, reverse mortgage, short sale tips

Related Videos

Related Articles

Latest Mortgage Articles
More from Christopher M Lee

Short Sale Offer Tips

short sale timing, buying a short sale, foreclosure timing. (03:58)

Learn how to Sell a Home in a Short Sale

Learn how to sell a home in a short sale in this video from experienced realtors and mortgage brokers. (02:54)

Short Sale Secrets Clip 2

Short Sale Secrets Clip 2
Learn how to short sale real estate. Bill Twyford and Dwan Bent-Twyford define short sales, outline the structure of deals, and explain the relationship with the banks you need to get those deals done. A.D. Kessler’s Real Estate Roundtable #354 Clip 2 from www.cremag.com.
(01:10)

Learn about Short Sale?

Learn what foreclose means and what you can do to get back on track -Learn about Short Sale? (00:42)

Investing Tips: Short Sale - Part 3

Learn how to: Bill and Dwan Twyford discuss the details of the short sale and offer many other options for investors to use when assisting the homeowner in the beginning stages of foreclosure. A.D. Kessler’s Real Estate Roundtable #357 Clip 3 from Creative Real Estate Magazine at www.cremag.com. (01:04)

Debt Solutions Quick Ways To Save Money

We have compiled over 80 ways for you to save money. Tell us know your money saving ideas.

By:
No Debt Dival

Finance>
Debt Consolidationl
May 19, 2011

Knowing Your Mortgage

Controlling your financial plans has become a little more difficult today because of the volatile dynamics of the economy. A number of people came up with businesses that serve the necessity to protect one’s funds. A few ideas ended up to become productive entrepreneurial campaigns although some failed to. This kind of exact same need produced the business of lending money. This specific market happens to be so successful because of people’s need to buy on an every day basis.

By:
Cash Back Mortgagel

Finance>
Mortgagel
Aug 05, 2011

Depressed Home Value and Market Instability Make Short Sale Schemes More Common

Short selling, where a lending institution agrees to accept less from the borrower than the value of the bank-held mortgage or lien, is susceptible to shady practices by third parties, like real estate agents. It’s a rather simple scenario: the borrower faces a foreclosure and opts to short sell.

By:
Christopher M Leel

Finance>
Mortgagel
Aug 04, 2011

Picking Between Mortgage Brokers and Direct Financial institutions

Mortgage tools such as online mortgage calculators offer a good deal of perception concerning the fees included in a mortgage. The fact is, making use of mortgage calculators are the simplest and most productive solution to assist you in getting an estimate of your mortgage loan fees. In addition, it enables you to analyze your mortgage payment alternatives

By:
Cash Back Mortgagel

Finance>
Mortgagel
Aug 04, 2011

Luxury Homes in Today’s Economy: In or Out?

In an economy where people are often unsure about their next meal, it can be difficult to talk about extra income. Owning a home may be a stretch, and owning a second is unthinkable. For those who are secure in their jobs and have a steady income, fine. But for those scrounging up change from the couch to purchase gas that is nearing $4 a gallon, the word “luxury” can sound more like a curse word than something that is to be appreciated.

By:
Bethaney Wallacel

Finance>
Mortgagel
Aug 03, 2011

What exactly is a foreclosure auction

A foreclosure іs a legal proceeding іn whiсh а bank оr lender sells оr repossesses a property due to thе owner’s inability to comply wіth thе mortgage or deed оf trust payment
schedule. Banks and other lenders usuаllу соnsіdеr a mortgage tо bе in default whеn payments havе not bеen made for ѕеveral months. Now despite bеіng a dreaded word, а foreclosure сan aсtuallу bе extremely lucrative for thоѕе lookіng tо invest іn distressed real estate. Now that you hаvе an idea of whаt а foreclosure is, I

By:
Dan Closerl

Finance>
Mortgagel
Aug 03, 2011

Depressed Home Value and Market Instability Make Short Sale Schemes More Common

Short selling, where a lending institution agrees to accept less from the borrower than the value of the bank-held mortgage or lien, is susceptible to shady practices by third parties, like real estate agents. It’s a rather simple scenario: the borrower faces a foreclosure and opts to short sell.

By:
Christopher M Leel

Finance>
Mortgagel
Aug 04, 2011

Foreclosed upon homes deep bruises for neighborhood, carry stigma

A recent Federal Reserve study out of Cleveland has found that homes sold at foreclosure auctions are harmful to the reputations of neighborhoods, depressing local market value of all homes, and carry a real estate ‘scarlet letter’ for years to come.

By:
Christopher M Leel

Finance>
Mortgagel
Aug 03, 2011

National Debt Ceiling Debate has raised the ire of everyone, who is to blame?

An inconvenient truth of many of the Nation’s perpetual debt woes is this: America is made up of Americans. If politicians are accountable for anything, it is making bad decisions with taxpayer money. Amidst the finger pointing on Capitol Hill, the President and congressmen are avoiding the not so insignificant reality that the national debt ceiling crisis is the result of fiscal irresponsibility by the many.

By:
Christopher M Leel

Finance>
Personal Financel
Aug 01, 2011

Megabanks Moving To Reduce Borrowers’ Negative Equity

Since the housing bubble burst three years ago, banks of all sizes have seen their ledgers bleed red as many of their costumers went ‘underwater.” As a result, banks are quietly contacting borrowers and offering them generous loan modification or refinancing options. Many of these newly relieved borrowers pay on time, too. However, their houses are ‘underwater,’ meaning what they paid for the house or what they still owe is more than their property is worth.

By:
Christopher M Leel

Finance>
Mortgagel
Jul 29, 2011

To Refinance Or Not?

If you have a mortgage and are looking for ways to save money and spend smarter, considering refinancing that mortgage is probably at the forefront of your mind. However, it’s important to realize that not all refinancing is created equal - and for certain homeowners it might end up causing more problems than it solves.

By:
Christopher M Leel

Finance>
Mortgagel
Jul 27, 2011

Add new Comment

Your Name: *

Your Email:

Comment Body: *

 

Verification code:*

* Required fields

Submit

Your Articles Here
It’s Free and easy

Sign Up Today

Author Navigation

My Home
Publish Article
View/Edit Articles
View/Edit Q&A
Edit your Account
Manage Authors
Statistics Page
Personal RSS Builder
My Home
Edit your Account
Update Profile
View/Edit Q&A
Publish Article
Author Box

Christopher M Lee has 9 articles online

Contact Author

Subscribe to RSS

Print article

Send to friend

Re-Publish article

Articles Categories
All Categories

Advertising
Arts & Entertainment
Automotive
Beauty
Business
Careers
Computers
Education
Finance
Food and Beverage
Health
Hobbies
Home and Family
Home Improvement
Internet
Law
Marketing
News and Society
Relationships
Self Improvement
Shopping
Spirituality
Sports and Fitness
Technology
Travel
Writing

Finance

Accounting
Banking
Credit
Currency Trading
Day Trading
Debt Consolidation
Insurance
Investing
Loans
Mortgage
Personal Finance
Real Estate
Taxes
Wealth Building

]]>

Need Help?
Contact Us
FAQ
Submit Articles
Editorial Guidelines
Blog

Site Links
Recent Articles
Top Authors
Top Articles
Find Articles
Site Map
Mobile Version

Webmasters
RSS Builder
RSS
Link to Us

Business Info
Advertising

Use of this web site constitutes acceptance of the Terms Of Use and Privacy Policy | User published content is licensed under a Creative Commons License.
Copyright © 2005-2011 Free Articles by ArticlesBase.com, All rights reserved.

County’s housing market is still in flux
Brittnie Potter folds her daughters’ clothes in the home that she and her husband bought in January on Thursday, March 24, 2011.

Read more on Yakima Herald-Republic

I purchased a home nearly 2 years ago with a 100% financing with 2 loans for $365K in Northern California. I have a 1st 80% and 2nd 20% from the same lender, both loans closed on the same day, never refi the loans and the 2nd 20% loan is not a HELOC. The properties comparable to my house around my neighborhood now sold for $265k-$280k so in that respect, I’m very upside down. To make long story short, I’m having difficulties paying my mortgage and here’s my question: If I foreclosed on the property, the bank would lose about $80k-$100k. If I go with short sale, assuming the bank approves it. It would still only be selling around $265k - $280k at the most, I’m 90 days late on my mortgage and I realized this might be a good time to negotiate with the bank since I might be able to leverage the current market turmoil situation to renegotiate the terms. What are chances the bank are willing to forgive my 2nd loan, which is at around $72k? Please advice, time is running out. Thank you.

I just received 2 more new bank listings!

With foreclosures on the rise in Southern California, the team at REALESTATE-SANTAMONICA.COM has been getting a lot of inquiries about short sales. Mostly people are asking what they are. Well in short…no pun intended, a short sale is a transaction where the lender is willing to take less money than what is actually owed on the mortgage. The point behind this is to avoid a foreclosure.

Foreclosing on a home is something that the bank as well as the borrower usually tries to avoid. When the borrower defaults on a mortgage (doesn’t pay for months in a row), the borrower begins to accrue much more than just the mortgage payment. Quickly other expenses begin to add up, such as late fees, attorney fees etc…not good.

With a foreclosure the lender can lose nearly half of the mortgage amount because of the costs involved in foreclosing on a property: attorney fees, lost interest, property maintenance, court costs etc. Foreclosure is also a very drawn-out process. It can take over a year in some states. Because of this, many lenders are amenable to a short sale over a foreclosure so that they can simply cut their losses and move on.

Short sales can also be in the homeowner’s best interest as well. Most agree that the primary benefit to the homeowner is that he/she is able to get out from under the mortgage without suffering through a foreclosure. Additionally, the homeowner’s debt is getting taken care of for much less than is actually owed on the home. The homeowner’s credit is usually spared some of the wear and tear caused by foreclosure as well.

What is the process?

When a homeowner gets behind on the mortgage and wants to try and avoid foreclosure, the lender must be contacted immediately. The last thing a lender wants to do is foreclose, but there is a process that needs to be started to make a short sale possible.

The lender will usually require quite a bit of information including:

- Hardship Letter. Basically the homeowner is telling the lender the story behind being late with the mortgage. Additionally the letter should request a short sale.

- Bank Statements. This is to verify assets…or sadly, the lack thereof.

- Income documentation. W-2’s or 1099’s to verify the borrowers’ income.

- Value of Home. Banks will either order an appraisal or a CMA “comparative market analysis.” CMA’s are generated by realtors and we at realestate-santamonica.com can help with that.

- Listing Agreement. This just documents that the home has been put on the market. After it sells, the purchase agreement is included as well.

With any luck the lender will approve the short sale and the home will not go into foreclosure. If the short sale occurs, a preliminary proceeds sheet is generated. This document lists the net proceeds of the sale after the mortgage is paid off, as well the closing costs and all other related fees. This amount will be negative…and is the shortage.

Potential Consequences

Before requesting a short sale, a borrower should consult with his/her attorney and/or accountant as there are a few things to be mindful of.

First, the lender may require the borrower to sign a note to repay the shortage. Also the lender may file a collection or judgement to recover the shortage. A good real estate attorney will be able to guide the borrower through this.

The IRS may also come calling for the income taxes owed on the amount of the shortage. A tax professional should be contacted by the borrower regarding this.

Hopefully this shed a little light on the world of Short Sales and remember REALESTATE-SANTAMONICA.COM is here to help you.