LOAN MODIFICATION SCAMS
It is sad that during times of hardship, those who cause harm target the vulnerable.
There are a lot of loan modification scams out there. It is important to remember that not all loan modification programs are scams, and not all loan modification companies are scammers. Loan modifications are very valid in our current market. However, to help you identify the legitimate options from the scammers I have a few characters you should watch out for.
Common Scammers to watch out for:
The Disappearing Hero: “I can help you, and all it costs is a small up-front fee.”
The Disappearing Hero shows up to save you from your financial woes. They sympathize, console, and offer hope. They flex their muscles and boast about their ability to save you from your hardship. All the Hero needs is a 'small' up-front fee. This could be anywhere from $700 to $7,000. The promise is made that once you pay the upfront fee you won't have to make any more house payments until the loan modification process is complete. The Hero get's their fee, and flies off into the night. Months later you discover that there is a notice of default filed on your property, and your hero is nowhere to be found.
The Grant-Giving Goblin: “Trust me I'm from the Government!”
There has just been a notice of default filed on your home. You don't know what to do. When you get a life-line in the mail from the Goblin. This very official looking letter informs you that you are entitled to government bailout money! All you have to do is send some personal information to the trustworthy government address enclosed. There is a place to include your bank information so they can review your financial situation and deposit the money into your account. If you don't feel comfortable sending your bank information through the mail, just send a check to the Grant-Giving Goblin and he'll do all the work for you. Sometimes the Goblin will call to confirm that you received the letter and answer any of your questions. Once the Goblin receives your money, or your information, you will never hear from them again, and your money is lost.
Self-Prescribing Surgeon: “You can't get a loan modification, but I have something special that'll work just for you.”
The Surgeon contacts you to do a preliminary exam of your financial situation. They ask questions to see if you qualify for a loan modification program. With sympathy the Surgeon announces that you do not qualify. However, there are other available alternatives that the Surgeon prescribes. These "alternatives" range from filing bankruptcy to quitclaiming your interest to a third party (the Surgeon). You are assured that the property will not be foreclosed because the Surgeon will personally take responsibility for the mortgage. The Surgeon takes possession of the home, then turns around and lease options the property right back to you.
The best thing you can do to protect yourself from these scammers is to work with a licensed professional. As Real Estate professionals we are trained to help you face these very problems.
Avoid the scams!
Here is a list of simple things you can do to protect yourself:
• Do not work with any individual or company that is not licensed. Use the NMLS Consumer Access system or call 801-530-6747 to make sure that the loan modification company is licensed with the Utah Division of Real Estate as a loan originator.
• Talk to your lender or servicer directly. As soon as you think you could have a problem paying your mortgage on time. Let your lender know your problems, and discuss ways you might resolve the issues. You will not have to pay your lender or servicer to modify your loan IF you meet eligibility requirements and are qualified.
• Make your mortgage payments only to your servicer or lender. Never make your mortgage payment to a third party.
• Make sure you read and understand all documents you are signing.
• Do not sign any documents with blanks.
• Do not ignore mail from your lender or servicer.
• Do not pay an up-front fee to anyone for loan modification services. Do not pay any fees until you receive a written offer from your lender or servicer for modified loan terms and details about the services you will be provided..
• Do not stop making your mortgage payments. Doing so will put you closer to foreclosure.
• Do not work with a loan modification company or individual that appears to be a government agency or government program. You can find government-sponsored mortgage modification and refinance programs at www.makinghomeaffordable.gov and http://portal.hud.gov.
• Do not sign a warranty deed or quitclaim deed giving your title to anyone. When you lose title, you lose ownership.
• If you think you are being scammed, file a complaint with the Division of Real Estate.
December 30, 2010
December 27, 2010
Which Utah Celebrity...
A celebrity's St. George Utah house is being foreclosed.
Do you know who it is?
Don't cheat, see if you can guess from the clues below.
Write me a comment if you think you know who it is.
Clue #1: The House
Clue #3: One of the first basketball players to have a shoe marketed under his name
Clue #4: Well-known for slam dunking from the free throw line
Clue #5: Averaged 24.2 points, 2 steals, and 9 rebounds per game
Clue #6: Was matched against Larry Bird in a 1983 computer game:
Clue #7: The fifth-highest scorer in professional basketball history
Clue #8: Quoted as saying: "Respect is a lot more important, and a lot greater, than popularity."
Clue #9: He was a childhood sports hero to Will smith and President Barack Obama.
Do you know who he is?
Do you know who it is?
Don't cheat, see if you can guess from the clues below.
Write me a comment if you think you know who it is.
Clue #1: The House
- 6,600 Square Feet
- 5 bedrooms
- 6.5 bathrooms
- 5 Fireplaces
- Swimming Pool
- Red, white, and blue Rubberized basketball court
Clue #3: One of the first basketball players to have a shoe marketed under his name
Clue #4: Well-known for slam dunking from the free throw line
Clue #5: Averaged 24.2 points, 2 steals, and 9 rebounds per game
Clue #6: Was matched against Larry Bird in a 1983 computer game:
Clue #7: The fifth-highest scorer in professional basketball history
Clue #8: Quoted as saying: "Respect is a lot more important, and a lot greater, than popularity."
Clue #9: He was a childhood sports hero to Will smith and President Barack Obama.
Do you know who he is?
December 15, 2010
What do Infants and the Government Have in Common?
My daughter has brought to my attention 3 things that infants and the government have in common.
Sometimes they work really hard...
...getting into something they shouldn't.
Other times they find a mess...
...and make it worse.
Sometimes they work really hard...
...getting into something they shouldn't. And what's to be done after all this work?
Hide from the repercussions.
My daughter did all of this mayhem in one day. What a busy little girl. :)
December 13, 2010
The Small Window of Opportunity
Question: Why is it a small window? Answer: Supply
The number of available homes to purchase has decreased. There is not much supply out there. In fact the supply of homes is lower than I have seen it in a long time. Lately the demand has also been low. We have had the least amount of buyers looking for homes that we have ever seen. What happens when you have small demand? Prices fall flat on their face. That is where we are right now, low prices! That is the opportunity.
Question: How long will this window last? Answer: Not Long
The opportunity will end when the cost of homes starts to increase again. This will happen when demand increases to normal levels. A few factors suggest that demand may be normalizing soon.
1st: it has been more than 6 months since the expiration of the tax credit.
2nd: housing in Utah follows a very consistent pattern. Typically December January and February are slower months for real estate in Utah. Right now our January is poised to be better than our worst January 2 years ago. (Indicating that the market hit bottom and we are now on our way up.)
3rd: interest rates* have slowly started to creep up. Interest rates are getting closer to 4.75%. They used to be around 4%!
With low supply, and demand beginning to increase, we will see prices start to rise again. An important adage to remember when purchasing is: "prices come down like a parachute and go up like a rocket!" When this happens we will look back at our little window of opportunity and realize how nice it was. Don't be a victim of backward longing. Recognize this small window of opportunity for what it is.
Here is another article about the near future of the market.
*Check out my article here to see a MBA mortgage forecast report and to see how much 3/4 of a percent can influence your purchasing power.
Question: How long will this window last? Answer: Not Long
The opportunity will end when the cost of homes starts to increase again. This will happen when demand increases to normal levels. A few factors suggest that demand may be normalizing soon.
1st: it has been more than 6 months since the expiration of the tax credit.
2nd: housing in Utah follows a very consistent pattern. Typically December January and February are slower months for real estate in Utah. Right now our January is poised to be better than our worst January 2 years ago. (Indicating that the market hit bottom and we are now on our way up.)
3rd: interest rates* have slowly started to creep up. Interest rates are getting closer to 4.75%. They used to be around 4%!
With low supply, and demand beginning to increase, we will see prices start to rise again. An important adage to remember when purchasing is: "prices come down like a parachute and go up like a rocket!" When this happens we will look back at our little window of opportunity and realize how nice it was. Don't be a victim of backward longing. Recognize this small window of opportunity for what it is.
Here is another article about the near future of the market.
*Check out my article here to see a MBA mortgage forecast report and to see how much 3/4 of a percent can influence your purchasing power.
Do You Like?
I just added the latest local market statistics to my Facebook Fanpage.
Find my review of 2010 HERE
It is part of my Fans-Only page, so be sure to "like" the page to see the content.
My report includes a month-to-month look at the total number of homes sold as well as active homes on market. You can also see a breakdown of new listings per month, new under contracts for each month, and total number of homes under contract for the month.
There is a link to recent articles on foreclosures and reports on the current market value.
You can also see information on remaining grant money, interest rates, and my interpretation of current trends.
Become a fan, and gain access to valuable market information!
Find my review of 2010 HERE
It is part of my Fans-Only page, so be sure to "like" the page to see the content.
My report includes a month-to-month look at the total number of homes sold as well as active homes on market. You can also see a breakdown of new listings per month, new under contracts for each month, and total number of homes under contract for the month.
There is a link to recent articles on foreclosures and reports on the current market value.
You can also see information on remaining grant money, interest rates, and my interpretation of current trends.
Become a fan, and gain access to valuable market information!
December 2, 2010
Should You Sell This December?
Location is still the paramount law in real estate. Knowing when to sell your home requires careful examination of the local market in your neighborhood. As a local real estate professional I monitor which neighborhoods have high demand so you can be aware when the timing is right to sell your home.
We track where homes are sold, where homes are listed, and where buyers want to buy. With these statistics I have selected the top 5 areas for selling a home in December. If you live in one of these areas, now is the time to sell!
1. Salt Lake City, Zip 84103 $200K - $250K
Sales History Current Homes for Sale
2. Murray, Zip 84123 $200K - $250K
Sales History Current Homes for Sale
3. Orem, Zip 84058 $300K - $350K
Sales History Current Homes for Sale
4. Orem, Zip 84097 $350K - $400K
Sales History Current Homes for Sale
5. Alpine, Zip 84004 $400K - $500K
Sales History Current Homes for Sale
To view home sales history for all Zip codes and price ranges click here
Utah's Hot Spots are the zip codes and price ranges that had the highest demand last month. Economic improvement and recovery start in hot spots and spread to other areas. Purchasing a home in one of these Hot Spots gives you a front row seat to economic recovery.
We track where homes are sold, where homes are listed, and where buyers want to buy. With these statistics I have selected the top 5 areas for selling a home in December. If you live in one of these areas, now is the time to sell!
1. Salt Lake City, Zip 84103 $200K - $250K
Sales History Current Homes for Sale
2. Murray, Zip 84123 $200K - $250K
Sales History Current Homes for Sale
3. Orem, Zip 84058 $300K - $350K
Sales History Current Homes for Sale
4. Orem, Zip 84097 $350K - $400K
Sales History Current Homes for Sale
5. Alpine, Zip 84004 $400K - $500K
Sales History Current Homes for Sale
To view home sales history for all Zip codes and price ranges click here
Utah's Hot Spots are the zip codes and price ranges that had the highest demand last month. Economic improvement and recovery start in hot spots and spread to other areas. Purchasing a home in one of these Hot Spots gives you a front row seat to economic recovery.
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