Mortgage Relief Fraud: Will You Be the Next Victim?

April 13, 2011 By Michael

Not if I have anything to say about it!

The FBI reported a jump of 71% in mortgage relief fraud investigations from 2008-2009, and expects this number to have grown in 2010.

That’s why it’s my duty to educate homeowners in my community on the cautions they need to take, and what the government has recently done to protect you from unscrupulous individuals and companies who want to take advantage of their desperate situations.

What you need to watch out for if you are looking for mortgage relief assistance:

Upfront fees—just don’t pay them! In fact, they are now illegal!
A request to sign over your deed (this only spells trouble)
Lots of paperwork without the opportunity for review
The claim of government-affiliation

These are just a few red flags you need to be wary of. I’ve created a free report on the homepage of my website that details more of what you need to watch for.

If you are struggling with an unaffordable mortgage and are looking for help, educate yourself. These scammers can be very shrewd and will say almost anything to steal your money.

The Federal Trade Commission has required disclosures of anyone offering mortgage relief services. If you’d like to see an example, check out any of the pages of my website. If a company you are dealing with has not provided these disclosures, please ask why they are not compliant, and proceed with caution!

As a CDPE, you can trust that I have the tools to be in full compliance of FTC regulations, and will always work with your best interests at heart.

If you want viable alternatives to foreclosure, give me a call today. I’m always here to help!

Filed Under: Featured Properties, Foreclosure, Loan Modification, Real Estate Tips, Short Sale Tagged With: CDPE, FBI, Federal Trade Commission, Foreclosure, Fraud, Short Sale

Two Fear Mongering E-Mail Chains Debunked

November 23, 2010 By Michael

The fear mongers have struck again! As troubling as the current real estate market is for sellers, the last thing we need is artificially produced fear. People can get really worked up over politics, twisting the truths to suit their needs. Let’s bring a little sanity to the table.

Email #1:
Have you received an email with the following example content?

“Under the new health care bill – did you know that all real estate transactions are subject to a 3.8% “sales tax”? You can thank nancy, harry & barack (and your local congressman) for this one. If you sell your $400,000 home, this will be a $15,200 tax.”

Read the analysis by FACTCHECK.ORG, Summary:
THE CLAIM IS FALSE.

Let us sum up: The health bill included a provision that imposes a new 3.8 percent Medicare tax for some high-income households that have “net investment income.” Any revenue collected by the tax is dedicated to the Medicare hospital insurance program.

This new tax applies only to households with Adjusted Gross Income (AGI) of more than $200,000 for individuals or more than $250,000 for married couples. Since capital gains are included in the definition of net investment income, an additional tax obligation might result from the sale of real property.

Even if the AGI limits are met, the new tax would not be applied to capital gains that result from the sale of a home, since the existing home sale capital gains exclusion rule still applies – $250,000 (individual)/$500,000 (couple). So if the gain from the sale of the primary residence is below that amount, then NO Medicare tax will have to be paid on the gain. The new Medicare tax would apply only to a home sale gain realized in excess of the $250K/$500K that pushes the filer’s AGI over the $200K/$250K income limits.

Some other quick points:

The new Medicare tax will take effect January 1, 2013.
The legislation makes no changes to the mortgage interest deduction.

E-Mail #2:
Regarding the passed Cap and Trade Energy bill. Email in part:

“This bill prevents you from selling your home without the permission of the EPA administrator. To get this permission,you will have to have the energy efficiency of your home measured. Then the government will tell you what your new energy efficiency requirement is and you will be forced to make modifications to your home under the retrofit provisions of this Act to comply with the new energy and water efficiency requirements.

Then you will have to get your home measured again and get a license (called a “label” in the Act) that must be posted on your property to show what your efficiency rating is; sort of like the Energy Star efficiency rating label on your refrigerator or air conditioner. If you don’t get a high enough rating, you can’t sell.”

Read the analysis by FACTCHECK.ORG, Summary:
THE CLAIM IS FALSE.

The bill does set new national efficiency standards for new residential and commercial buildings. Those standards are outlined in Section 201. But only homes constructed after the bill became law would have to meet them, not currently existing homes.

Nothing in the bill requires homeowners to obtain an energy license, or retrofit their house to meet energy standards as a condition of sale. That’s something the House Committee on Energy and Commerce mentioned more than once in its summary of the legislation.

NAR (National Association of Realtors) produced a nice 2-page flyer busting these 2 email myths and can be downloaded here.

Filed Under: News, Real Estate Tips, Selling A Home

Nothing is Certain but Death and Taxes

November 21, 2010 By Michael

An alternative version of that quote, from Gone With the Wind “Death, taxes and childbirth! There’s never any convenient time for any of them.”

Yup, it’s that time of year, again! But this time, property taxes.

Here are the important dates:

November 10th – Taxes Due

December 10th – Taxes Delinquent!
(you are here)

February 10th – Taxes Due

April 10th – Taxes Delinquent!

December 10th is just around the corner, so make sure you postmark your mailing on or before the delinquency date to avoid costly late fees. Only U.S. Postal cancellation is acceptable evidence in most counties in California.

Here are some local county tax accessor websites:

Alameda County
http://www.acgov.org/propertytax/

Contra Costa County
http://www.co.contra-costa.ca.us/index.aspx?NID=199

San Francisco County
http://www.sftreasurer.org/

San Mateo County
http://www.sanmateocountytaxcollector.org/index.html

Santa Clara County
http://www.sccgov.org/portal/site/tax/

Filed Under: Featured Properties, News, Real Estate Tips

How to Rent Your Home in 5 Easy Steps

June 15, 2010 By Michael Koenig

A homeowner who is able to sell a property at the asking price has the potential to reap a profit, but what happens when you are having trouble getting your home sold? In today’s difficult market, many homeowners are taking advantage of renting out their homes, or individual rooms, in order to cover the bills.

According to Glenn Curtis, freelance financial writer and analyst, here are five easy steps that will help make the renting process easier and more profitable.

Study the market: Check local newspapers and with local Realtors to see what comparable homes/properties are renting for in the neighborhood. Craigslist can be a great resource as well. This should help you establish a fair rental price.

Prep the home: Renters may not take care of the home or its furnishings; therefore, the owner might consider removing breakables and personal items in order to avoid damage and potential arguments.

Find a renter: Consider advertising in local newspapers, in the brochures and bulletins found in supermarkets and on website classifieds. The idea is to try to get as many people to view the rental details as possible, so that you are left choosing your renter, rather than having to go with the only renter who expresses interest in your place.

Interview: Consider meeting with the potential renter rather than simply dealing over the phone. Knowing who will inhabit your home may put your mind at ease and help you weed out unsuitable candidates.

Spell out the deal: You should consider contacting an attorney (particularly one that specializes in real estate) to help see you through the rental transaction. The lawyer should be able to provide or help draft a rental agreement/contract. Consider any stipulations you want in the paperwork (like late fees, lease terms, payment due dates, etc.) and make sure the attorney includes those items.

Credit to RisMedia, Paige Tepping.

Filed Under: Real Estate Tips

Foreclosure Auction on the County Courthouse Steps

March 22, 2010 By Michael Koenig

Foreclosure Auction on the Courthouse Steps, Oakland, CA

We made a little field-trip to the Alameda County Courthouse in Oakland, California. Today was simply another day on the steps of the courthouse. There were about 110 properties scheduled for the sale. However, after all was said and done, I think only ONE property was actually sold to a high bidder

What happened to the other properties?? The majority were either canceled or postponed (usually due to an agreement between the borrower and lender) or due to bankruptcy. The rest, simply failed to receive a single bid, which then causes the property to become a Bank Owned property or REO.

Here’s a little video clip of the event.

Look for a follow-up post regarding this auction…and what I REALLY think about them.

: Foreclosure Auction on the Courthouse Steps, Oakland, CA

Filed Under: Buying A Home, Foreclosure, News, Oakland, Real Estate Tips, REO, Video Clip Tagged With: video

Mortgage Rates Set to Rise in 2010

March 19, 2010 By Michael Koenig

Historical Mortgage Rate Chart

Is it time to rush out and buy a house before mortgage rates go up?

Some analysts believe mortgage rates will jump to around 6% by year end from 5% in recent weeks, while others see only a slight increase. As the Federal Reserve winds down its intervention in the mortgage market, rates on home loans are generally expected to rise at least modestly during the rest of this year from today’s unusually low levels.

Meanwhile, federal tax credits available for some home buyers are due to expire at the end of April, adding to the sense of urgency many shoppers feel.

“I’d hate to miss out on really low [mortgage] rates” or the tax credit, says Jennifer Hale, a veterinarian who is looking for a new home near Minneapolis with her fiance, Lawrence Nystrom.

If rates do go up sharply, that will have a big effect on home buyers. Richard Redmond, a mortgage adviser at All California Mortgage in Larkspur, Calif., offers the example of a couple with combined pretax income of $100,000 a year and debt obligations (excluding mortgage) of $500 a month. At a 5% mortgage rate, he figures, the couple could qualify for a loan big enough to buy a $590,000 house, assuming a 20% down payment. At 6%, that would fall to $540,000.

Since late 2008, 30-year fixed-rate mortgages have been available for people with strong credit records at around 5%, near the lowest levels since the 1950s, thanks to the Federal Reserve’s heavy purchases of mortgage securities. At the end of March, the Fed is due to stop buying the securities. Most mortgage analysts think the immediate effect of the Fed’s withdrawal will be modest.

Filed Under: Buying A Home, News, Real Estate Tips Tagged With: Chart, Graphic, Mortgage Rate

California Home Mortgage Protection Program

March 17, 2010 By Michael Koenig

Did you buy a home after April 2009? Or do you plan on completing a purchase this year before July 2010? If so, then you may qualify for a little extra peace of mind.

Due to popularity and demand, the California Association of Realtors (C.A.R.) has extended their Mortgage Protection program to June 30th.

What are the benefits, and how much does it cost? It’s dead simple: Qualifying buyers can receive up to $1,500 a month for up to six months in the event of job loss, a qualified co-buyer can also receive a $750 benefit for up to six months to help pay the mortgage. And the cost? NOTHING, other than the cost of the home you just completed!

Here are the basic qualifications:

Be a first-time home buyer – someone who has not owned property in the last three years. (includes co-buyer).
Open escrow April 2, 2009, or later, and close on or before June 30, 2010. (purchase agreement cannot be dated before April 2, 2009)
Use a California REALTOR® in the transaction (fee for referral does not qualify)
Be a W-2 employee (cannot be self-employed)
Purchase the property in California
To qualify for the program applications must be received within 30 days of closing escrow

Do you qualify (or will)? If so, what are you waiting for! Contact me for assistance and Download the Revised MPP Application followed by a list of Frequently Asked Questions.
( This must be submitted by an active California REALTOR®, such as me)

Filed Under: Buying A Home, News, Real Estate Tips Tagged With: C.A.R., H.A.F., Housing Affordability Fund, Mortgage, protection

January 2010 California Foreclosure Report

March 15, 2010 By Michael

I couldn’t have said it better myself. In January 2010 we saw that despite apparent declines in foreclosure filings, daily foreclosure activity is up on all fronts as the foreclosure stalemate continues. Publicly reported figures are not always the ‘whole’ truth.

Sean O’Toole from ForeclosureRadar.com put’s together a great market report which reveals the other half of the truth. Check it out!

January 2010 California Foreclosure Report

Posted using ShareThis

Filed Under: Buying A Home, Foreclosure, Loan Modification, News, Real Estate Tips, REO, Short Sale Tagged With: auction, cancellations, investors

Federal Tax Credit Expiring Soon!

March 10, 2010 By Michael Koenig

Time to get your documents in order.

It would be a total shame to meet all the requirements and be eligible for the $8,000.00 Federal Tax Credit for First-Time Home buyers, and then fail to file the required documents.

Here are the requirements, as per the Internal Revenue Service website:

IRS First-Time Homebuyer Credit Documentation Requirements

Tax time is just around the corner and if you became a First-Time Homebuyer in 2009, you’re definitely looking forward to the First-Time Homebuyer Credit. However, are you confused about the documents required to claim the credit? The IRS has put together five tips to help clarify the documentation requirements.

Settlement Statement: Purchasers of conventional homes must include a copy of the Form HUD-1 or other executed Settlement Statement.
Properly Executed Settle Statement: A properly executed settlement statement shows all parties’ names and signatures, property address, sales price and date of purchase. However, settlement statements, including the Form HUD-1 can vary from one location to another and may not include the signatures of both the buyer and seller. In areas where signatures are not required on the settlement document, the IRS encourages buyers to sign the settlement statement when they file their tax return – even in cases where the settlement form does not include a signature line.
Retail Sales Contract: Purchasers of mobile homes who are unable to get a settlement must attach a copy of the executed retail sales contract showing all parties’ names and signatures, property address, purchase price and date of purchase.
Certificate of Occupancy: For a newly constructed home, where a settlement statement is not available, attached a copy of the certificate of occupancy showing the owner’s name, property address and date of the certificate.
Long-Time Residents: If you are a long-time resident claiming the credit, the IRS recommends that you also attach documentation covering the five-consecutive-year period such as Form 1098, Mortgage Interest Statement or substitute mortgage interest statements, property tax records or homeowner’s insurance records.

Visit IRS.gov/recovery for more information.

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Filed Under: Buying A Home, Real Estate Tips Tagged With: $8000, Contract, documents, Federal Tax Credit, HUD-1, IRS, required, Settlement Statement

So Where Are These REO Listings?

March 3, 2010 By Michael Koenig

So Where Are These REO Listings?
You are ONE click away from finding some REO listings in the East Bay area. Click here to see them.

Buying bank owned properties
There is a lot of interest in buying bank owned properties these days. A lot of information, some good and some bad, is floating around about the subject. Often the information offered is for sale, with the promise that you can make a lot of money with little effort once you know “the secret formula”. The fact is that there are no secrets, and to make money does require effort.

What’s an REO?
REO stands for “Real Estate Owned”. These are properties that have gone through foreclosure and are now owned by the bank or mortgage company. This is not the same as a property up for foreclosure auction. When buying a property during a foreclosure sale, you must pay at least the loan balance plus any interest and other fees accumulated during the foreclosure process. You must also be prepared to pay with cash in hand. And on top of all that, you’ll receive the property 100% “as is”. That could include existing liens and even current occupants that need to be evicted. A REO, by contrast, is a much “cleaner” and attractive transaction. The REO property did not find a buyer during foreclosure auction. The bank now owns it. The bank will see to the removal of tax liens, evict occupants if needed and generally prepare for the issuance of a title insurance policy to the buyer at closing. Do be aware that REO’s may be exempt from normal disclosure requirements. In California, for example, banks are exempt from giving a Transfer Disclosure Statement, a document that normally requires sellers to tell you about any defects they are aware of.

Is it a bargain?
It’s commonly assumed that any REO must be a bargain and an opportunity for easy money. This simply isn’t true. You have to be very careful about buying a REO if your intent is to make money off of it. While it’s true that the bank is typically anxious to sell it quickly, they are also strongly motivated to get as much as they can for it. When considering the value of a REO, you need to look closely at comparable sales in the neighborhood and be sure to take into account the time and cost of any repairs or remodeling needed to prepare the house for resale. The bargains with money making potential exist, and many people do very well buying foreclosures. But there are also many REO’s that are not good buys and not likely to turn a profit.

Ready to make an offer?
Typically the REO department of a bank will use a listing agent to get their REO properties listed on the local MLS. Before making your offer, you’ll want to contact either the listing agent and find out as much as you can about what they know about the condition of the property and what their process is for receiving offers. Since banks almost always sell REO properties “as is”, you’ll want to be sure and include an inspection contingency in your offer that gives you time to check for hidden damage and terminate the offer if you find it. As with making any offer on real estate, you’ll make your offer more attractive if you can include documentation of your ability to pay, such as a pre-approval letter from a lender. After you’ve made your offer, you can expect the bank to make a counter offer. Then it will be up to you to decide whether to accept their counter, or offer a counter to the counter offer. Realize, you’ll be dealing with a process that probably involves multiple people at the bank, and they don’t work evenings or weekends. It’s not unusual for the process of offers and counter offers to take days or even weeks.