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Be Wary of Loan Modification Scams
Fraudulent foreclosure “rescue” professionals use half truths and outright lies to sell services that promise relief, but fail to deliver. Some are even bold enough to offer a money-back guarantee. In reality, they make a quick profit by charging high fees or collecting mortgage payments, and keeping the money, rather than passing it on to the lender.
They use simple and straightforward messages, like “Stop Foreclosure Now!” or “We guarantee to stop your foreclosure.” Once they have your attention, they are known to use a variety of tactics to take your money, and sometimes your home. (…)
Bank Can Not Pursue Deficiency in Short Sale
I was recently approached by a past client who was experiencing financial difficulties due to the economic downturn and was just four days from foreclosure on his home. Like many people, he was not in this position because of anything he had done wrong and did not act sooner because he continued to believe he could rectify the situation on his own.
Things fortunately fell into place right away and within two days I was able to postpone the auction date by 45 days and received an approval for a short sale in less than one week (another story). The interesting part of this story has to do with a clause contained in the approval letter stating that the lender reserved the right to pursue the borrower for any deficiency in the loan, meaning that they could come after my client for (in this case) almost $400,000 at some future date (this was the difference between what he owed and what the bank would receive from the short sale). (…)
Rate of California Home Sales Soars
Sales of previously-owned single family homes in California increased 83 percent year-over-year for the month of February, as reported by the California Association of Realtors (CAR). The surge was attributed to sharp declines in prices (40.8 percent on average) and near record-low interest rates (now averaging 4.89%).
Regionally, the High Desert region experienced the greatest sales increase with a 203.1 percent year-over-year climb, while Santa Barbara was the only one of the 19 regions to experience a sales decline (down 9.4 percent). (…)