Realty Times – Curb Appeal For Rental Properties

Realty Times – Curb Appeal For Rental Properties.

by AshleyHalligan

When it comes to common-knowledge approaches to curb appeal, first impressions are lasting impressions, and property managers can build on that axiom to boost love-at-first-sight interest in rental properties.

“You never get a second chance to make a good first impression. No matter how great the service is, or how great the programs are, if the property doesn’t look good, you’ll never get the chance to go further with,” a potential tenant, says Cris Sullivan, senior vice president and executive director of operations at Gables Residential, a Atlanta, GA-based real estate acquisition, development and management company for multifamily properties and mixed-use communities.

Potential tenants expect a manicured property, a tamed yard, fresh paint and an overall neat presentation, but, as niche or more unique properties become more popular, a creative curb appeal strategy with a personal touch can add value.

Jared Meadors, owner of Medusa Properties in Houston, TX says property owners should expect to make an investment that enhances the appeal of the property from the outside in because the effort will pay for itself over time.

“That’s the thing about improvements in general. They pay for themselves five to 10 times over,” says Meadors who specializes in resorted, older properties.

“It took me a decade before I learned that competing on price alone is a race to the bottom. Apple products are the most expensive in every category where they compete, but they dominate those categories, and make more money than everyone else while doing it,” he added.

Meadors also says curb appeal investments allow him to charge slightly higher rent and they reduce vacancy periods because nicer looking properties rent faster than their less appealing competitors.

Meadors’ first addresses a property’s character to add curb appeal.

He often selects properties that may appear to look “boring,” because the property was built in the 1920s or 1930s and may have been stripped of its character over time due to shifting attitudes about style. These architecturally-stripped properties are like a blank canvas. He selects the most appealing qualities of an era and restores them to the property. This often means modifying the facade with renewed architectural detail.

“The style of the building itself is really important. From an architectural approach, I take the coolest elements of an era and apply them to a building,” Meadors says.

Meadors also says fencing can serve as a multi-functional addition to a property. Fencing frames a property’s boundaries, it’s a friendly bonus for pet owners, it acts as a backdrop for landscaping and it acts as a buffer between the front door and the street a major benefit in high traffic areas.

“In a really dense urban environment, any kind of buffer you can give your tenants from the street is really nice. Rather than having a big, open yard, add a cool fence or wall and a private patio. Now they have a buffer from the street and private space,” Meadors said.

Meadors also encourages creative landscaping.

Appealing foliage is an eye-catching addition to a property, but it doesn’t have to be high-maintenance or an expensive addition. Climbers, for example, require little attention and they add a colorful flair to a rental property and the benefit of added privacy.

Do you have suggestions for improving a property’s curb appeal? Share your efforts – successes and failures – as insight for others planning to boost a property’s first impression.

Published: March 29, 2012

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Realty Times – Bigger Isn’t Necessarily Better

Realty Times – Bigger Isn’t Necessarily Better.

 

by Julie Wyss

From young, qualified first-time home buyers to 50-and-olders, moving, up, over or down, a new breed of buyer is descending upon the Silicon Valley Housing market.

They’ve worked hard to save, they have solid jobs and they are qualified to buy big.

But offer them what they can really afford and they’ll give you the thumbs down.

They are the new financial conservatives.

They’d rather not be house poor.

They can afford much more, but they want less — less square footage, a smaller energy bill, fewer cleaning and maintenance headaches, but most importantly, less to pay out on the monthly mortgage.

They want a simpler, smaller American Dream.

It’s all about the “more” that comes with the “less.”

A smaller, less expensive home means more financial freedom in terms of more cash to save, more discretionary income to spend on nights out or travels away. A smaller home also means a smaller maintenance noose around your neck.

“Since new home prices peaked in 2007, new single-family sales of homes costing more than $500,000 have been more than cut in half, dropping from 13 percent to just 6 percent of all new home transactions,” said Rick Palacios Jr., senior research analysis of John Burns Real Estate Consulting.

“During this time, sales of home for under $200,000 have risen from 33 percent to 42 percent of transactions (nationwide). In fact, sales of homes priced under $300,000 now account for roughly 75 percent of all new single-family transactions. Of course, price declines and a shift to smaller homes played a role in this change, but consumer attitudes have shifted too. Our surveys and our consulting work show that today’s buyer is frequently very focused on affordability, and this broad macro theme will continue to play itself out in the new home space during 2012,” Palacios added.

A young couple in Silicon Valley with a combined income of $150,000 and top-notch credit can qualify for a mortgage with an debt-to-income ratio of up to 50 percent and their friends may be impressed, but the deal comes with a massive forever-property-tax-bill, uber cleaning and maintenance costs and yard upkeep from hell, not to mention massive energy bills. Home buyers are wisely saying “no thanks” to that. “We don’t want house poor. We’d rather have extra money to enjoy life, travel, eat out and save a few bucks.” That’s a decided change from boom times when buyers wanted the biggest, baddest, most expensive home money could buy.

It’s a lot like the change from the old fitness regimen of bulk and brawn to one of a more svelte approach for endurance.

Today’s economy demands a meaner, leaner bucks and brains for long-termhomeownership.

Published: March 27, 2012

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Realty Times – First-Time Buyer Tips

Realty Times – First-Time Buyer Tips.

 

by Phoebe Chongchua

Maybe you’ve been eyeing the real estate market and you think that you’re finally ready to purchase your first home…if so, read on to be sure you’re in the best position.

The rules have drastically changed in the real estate market. At one time, getting a mortgage seemed to require little more than just simply stating your income on paper. Today, the credit tightening continues. Banks want extra documentation that you can truly afford the home you want to buy.

But don’t let that scare you. Your dream of becoming a homeowner is still a viable option. Here are a few tips to help you achieve your dream.

First take a good look at your credit. It’s sad, but true, many people have no idea how their credit reports look. They can’t remember if they’ve ever seen their report and they don’t know their credit score.

Unfortunately, that puts buyers in a poor position. If there are errors on their credit reports, those must be handled before you try to purchase a home. Sometimes there are marks that truly shouldn’t be on your credit. Other times there are knocks against your credit that you may be able to get removed.

Check your credit score at least three to six months before you apply for a mortgage. This will give you time to address any issues.

Start saving now. These days a downpayment for a home doesn’t come easy. You may need as much as 20 percent down. However, there are still some loan programs that will allow you to put down much less.

Make sure you are working with an experienced team of real estate professionals. This kind of purchase requires lots of information, education, and knowledge. Having a team of industry professionals to guide you through the first-time home-buying experience will make the process so much easier.

When you’re preparing to buy a home, if you haven’t already, make a budget and start watching where every dollar goes. It’s amazing how few people do this. It’s even more amazing to see how much money is wasted. Those extra trips to the coffee shop, the donuts in the morning, the manicures, or shopping sprees, all are areas where you can likely cut back to save for your downpayment.

Picture your home. It might sound silly but you need to envision the home you want to buy. This will help you tremendously once you start your search. Start looking online, in magazines, and around your chosen neighborhoods.

You can even use online tools like Pintrest.com to pin images and videos you see on an online storage board to refer to later. This is a great tool for collecting photos of home decor.

The point here is to make sure you have an idea of what is important to you in a home. Since you’ve been renting, this might not be crystal clear at first. But as you make your list and explore homes with your agent, you’ll begin to see which things are deal breakers and which things are a must-have.

Buying a home is like looking for the right relationship. It can be exciting at first, frustrating at times, and so comforting once you’ve finally found the right one. Happy house hunting!

Published: March 23, 2012

Realty Times – Moving Made Simple: Tips to Help You Relocate

Realty Times – Moving Made Simple: Tips to Help You Relocate.

 

by Phoebe Chongchua

It’s the least favorite thing for many sellers, packing up their homes and relocating to a new home or even a new state.

Most people associate moving with stress but it doesn’t have to take the thrill of moving into a new home away. Preparation and careful planning can not only ward off the stress but also save you money.

Here are some quick tips to help you move out of your old home and into your new one with ease and comfort.

Get organized. Moves are often a chaotic mess. Very often the sale goes through and sellers scramble to get their belongings packed up and loaded into the trucks. Then when they get to their new home, there isn’t a trace of organization.

Boxes that were hurriedly jammed with stuff are in disarray and unpacking them seems like more work than it’s worth. This is often how people end up with duplicate irons, toasters, coffeemakers. In their frustration of being unable to locate a necessary item from the boxes, some opt to just purchase another.

Instead, color-code the boxes and mark in bold pen their contents. Start with one room and fill the box with only items from that room, for instance, the kitchen. Then, even if the box isn’t stuffed, move to another room and use a new color-coded box to fill with its belongings.

If you’re using movers, give them instructions to place the color-coded and marked boxes in the appropriate rooms. This saves so much time, energy, and hassle when unpacking or searching for items for that particular room.

It may seem like a lot of work to do this in the beginning, but unpacking and moving boxes that you have no idea what’s inside, is far worse and a much longer process.

Sell what you don’t need.

A common mistake sellers make in moving is to bring with them the stuff that they plan to get rid of in the future. If you’re using professional movers, this will cost you more. If you’re doing it yourself, it’s just plain silly to haul that which you intend to get rid of into a new home.

Again, this requires some planning. But you know that you’re selling your home, so start going through the rooms and setting up piles of the items that you plan to get rid of. Garage sales can help you unload some unwanted materials quickly. Also, sites like eBay or even shops that place your items on consignment can be worth it. Then, of course, you can simply make a deduction to a non-profit charity and just take the tax deduction.

The main point here is to use the move to unload the clutter. Do this before you list your home and your real estate agent will thank you. Clearing out the stuff helps buyers see the real beauty and value of your home. And, when it comes time to move, you’ll be glad you’re not simply taking unwanted stuff over to clutter your new home.

Appliance handling tips. If you’re moving big appliances like refrigerators and dishwashers, be sure to wipe them down and clean them out carefully. These items can get very smelly in the move. If you use a damp cloth and vinegar, it can help keep the refrigerator smelling fresh. Make sure you dry the inside completely before moving the refrigerator.

Moving mirrors? Be sure to tape them in a criss-cross pattern. So, if the mirror should break, it will be easier to clean up. Do not place anything breakable in your drawers. Even if you think, it’s in the sweater drawer, so it should be okay. Don’t risk it. Instead, pack breakables with delicate items in the appropriate packaging material and mark the box fragile.

Have what you absolutely need handy. Create a basket or bin and folder to hold important papers. The bin will house the items that you need with you at all times. It is super easy to lose sight of the things that matter most during a move. This is when you frantically are looking for your daily medicine, your necessary paperwork or the health records for boarding your pets.

Meticulous planning will make your move smooth so that you can enjoy your new home and not spending hours or even days searching for misplaced items.

Published: March 16, 2012

Use of this article without permission is a violation of federal copyright laws.

Realty Times – Why Do Some Real Estate Agents Do Well in Today’s Economy?

Realty Times – Why Do Some Real Estate Agents Do Well in Today’s Economy?.

 

by Dr. Maya Bailey

Is that a question you’ve ever asked yourself? Have you ever wondered why some real estate agents do well in today’s economy while others fail? There is a huge discrepancy right now between people who are failing and people who are succeeding.

Having been a real estate business coach for the past 15+ years I’ve had the privilege to observe how real estate agents function. And this experience has included new agents and seasoned agents, and the experience of watching them work through hard times and good times. In addition, I’ve even had the privilege to be able to participate in helping them to become successful.

Here’s the secret to what separates those who are doing well in today’s economy from those who are not. It’s one word – fear. The not so successful real estate agents have fallen into a cycle of fear. Usually that pattern is established through incessant watching of the news, whether it’s reading a newspaper, or a magazine, or watching TV, or listening to the radio, the real estate agents who aren’t doing well are following the news much too closely, and what happens is that their mind is focused on gloom and doom.

They have gotten in a cycle of focusing on what they don’t want instead of what they do want. Because the media focuses on lack, they have also been focusing on lack. Since our thoughts create our reality the more we focus on lack the more we bring that experience to us.

The energy of fear is a contracting energy. If you’re caught up in fear you might not know it but you might notice the signs and symptoms of fear. Here are some things to watch out for: Are you feeling discouraged? Are you procrastinating? Are you avoiding marketing? Are you feeling depressed? Are you suffering from low energy?

You see all of these signs and symptoms simply indicate that your energy instead of being expansive and confident has shrunken.

So what’s the way out? Let’s take a look at group B, the successful real estate professionals in today’s economy. These professionals are not watching the news very much at all; in fact most of them go out of their way to avoid the news because they know the devastating effects on their mindset if they inundate themselves with the latest media blitz. Instead they focus on the opportunities available in their marketplace.

They are keenly aware of the properties available. They are keenly aware that this is one of the best times to buy. They are taking action.

What the successful group is doing that the non-successful group is not doing is that they are keeping their confidence level high and their mindset. They are focusing instead on, “How can I serve the people in my community?”

In addition they are not focusing on what they don’t want; they’re focusing on what they do want. They’re focusing on their vision. They’re focusing on the income they want to create. They’re focusing on how they want to help people.

In addition, they’re focusing on their capabilities. If they have skills that they need to refresh they’re taking that opportunity to do it now.

Finally, the most important thing they’re doing that the other group isn’t doing, is that they’re taking action. With a positive mindset it’s easy to take action. They are getting on the phone. They’re not afraid to pick up the phone and call their past clients, their current clients, their sphere of influence, and even people they don’t know. Because they know that they have a valuable service they offer.

Most of the time when I coach my clients I help them with this belief: “I have a valuable service to offer and people are happy to hear from me.” Since our beliefs create our reality if that’s what you put out to the universe that is what you get back.

Many of my former clients that are practicing being proactive, practice getting their clients connected with the great opportunities. They have actually doubled and tripled their income in an economy that the rest of the world is calling a recession.

My advice to any real estate professional right now who wants to be successful is this; you may have knowledge of the current economy, but you don’t have to participate. Instead you could do what Jack Canfield recommends and just say to yourself, “I hear there’s a recession going on and I choose not to participate.”

 

Dr. Maya Bailey, Multiple 6 Figure Income Business Coach for Real Estate Professionals, integrates her 20 years of experience as a psychologist with 15 years of expertise in marketing. Her powerful transformational work creates a Success Formula for Real Estate Professionals ready to create a Multiple 6 Figure Income. To get your free report: “7 Simple Strategies to More Clients in 90 Days” and to apply for an Initial Complimentary Consultation, go to: http://www.90daystomoreclients.com

Published: March 15, 2012

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Realty Times – Real Estate Outlook: Mortgage Applications Decline Again

Realty Times – Real Estate Outlook: Mortgage Applications Decline Again.

 

by Carla Hill

Super tuesday came and went last week. This spurred the latest RealtyTrac report about those state’s foreclosure rates. It’s been no secret that foreclosures have run rampant across the entire United States. No state has been immune.

This latest report shows, however, that the 10 states involved in Tuesday’s primaries carried 15 percent, or around 1.9 million, of foreclosure filings nationwide.

The largest hit was taken in Georgia with 2.71 percent of the state’s housing units entering foreclosure. This was the fourth highest rate in the nation.

RealtyTrac reports, “Foreclosure activity in seven of the 10 Super Tuesday states decreased in 2011 compared to the last presidential election year, 2008. This was thanks in part to an artificial slowdown in foreclosure activity in 2011 because of delays in processing and paperwork, but that decrease may be helping at least some voters to believe the housing market is improving.”

Mortgage activity slowed again last week. This is the fourth consecutive week of declines. Activity was down 1.2 percent from the week before. The Mortgage Bankers Association reports that refinance activity was down 2.0 percent.

The Wall Street Journal’s MarketWatch noted, “Rates have reached historically low levels in recent months, but still-oversupplied housing markets, tougher lending requirements and stubborn unemployment in some areas continue to dampen demand for new purchases.”

In positive news this week, the latest Conference Board’s Consumer Confidence Index showed an increase in February.

Lynn Franco, Director of The Conference Board Consumer Research Center: “Consumer Confidence, which had declined last month, posted a sizable improvement in February. The Index is now close to levels last seen a year ago. Consumers are considerably less pessimistic about current business and labor market conditions than they were in January. And, despite further increases in gas prices, they are more optimistic about the short-term outlook for the economy, job prospects, and their financial situation.”

Those surveyed indicated business conditions were good, increasing a fraction of a percent. Consumers were also more optimistic about the labor market — 18.7 percent expect improvements — and the short-term outlook of the economy. 18.7 percent of consumers expect business conditions to improve over the next six months.

Published: March 12, 2012

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Realty Times – What Can I Do To Sell My Home?

Realty Times – What Can I Do To Sell My Home?.

 

by Phoebe Chongchua

It’s a question that all sellers ask, yet, many are still searching for answers. At one time, houses flew off the market but today’s market conditions have changed.

With the flood of foreclosures, short sales, and excess inventory, some houses sit for a long time on the market. It could take years to move some of those properties and see the excess supply diminish.

However, if you take action and you have a plan, there’s a good chance that your home will sell faster.

The first important action step is to bring in the most qualified expert to help. Finding the best agent to guide you through the real estate transaction can be the difference between a real estate dream or nightmare.

Make your home stand out. In a sea of homes for sale, you have to highlight and advertise what makes your home stand out. The upgrades, the location, the amenities, the curb appeal, the well-maintained landscape, the outdoor living space you’ve created, the “aging-in-place” remodeling you’ve done… you get the picture.

Take a pad of paper or your iPad and do a walk-through of your home. Look for all the things that a buyer would see as a benefit and list them. When you meet with your agent share these details. Your agent will be able to tell you which features are most important to highlight.

Get real on your pricing. It’s hard to deal with this next action step but it’s among the most important. Let your agent guide you to the right pricing. I’ve written columns in the past about how pricing a home too high and how it is a painful, humbling lesson. Your home will sit on the market and, in many cases, not even get walk-throughs, if it’s not properly priced.

A qualified, experienced agent, studies the market and understands realistic pricing. The agent isn’t emotionally vested in the price and therefore can help you compare your home to others that have sold or are currently on the market so that you can see how your home should be properly priced.

Then when an offer comes in be sure to give careful consideration to it. If it’s reasonable take it. If the home is priced right, you will see offers come in and you must be ready to take action.

Depersonalize and declutter. You must realize when you’re selling your home, that buyers want to see the home as their own. That’s really hard to do when you have your personal mark all over it. Sellers often say, “But I live here.” Yes, that’s true, but you’re now trying to sell the home.

So, pack up your personal belongings and declutter the areas so that the true value of your home can be seen. The rooms will look larger. Buyers will appreciate being able to see each room without getting lost in your pictures, memorabilia, and other stuff.

Also, some items that sellers have in their home might actually offend the buyer, such as game hanging on the walls. Professional stagers or agents, who also have a staging background, can help you easily decide which things should stay and which must go.

In the end, a little inconvenience for a faster sale is really worth it. Take the action steps needed, make your home stand out, and sell your home faster, even in a market that’s saturated with homes for sale.

Published: March 9, 2012

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Realty Times – Agents Have A Central Role To Play, With That Comes Responsibility

Realty Times – Agents Have A Central Role To Play, With That Comes Responsibility.

by Bob Hunt

It wasn’t too many years ago that a lot of very smart people were predicting that real estate professionals, like dinosaurs, sloths, and saber-tooth tigers before them, were about to become extinct. It was not that they were going to be replaced by someone else – persons or a profession that would fulfill a perhaps similar, but slightly different, function – but rather that they just wouldn’t be needed at all.

People thought this for two reasons: (1) The Internet was (and still is) making information available about almost everything to almost everybody at any time of the day or night. (2) The primary – if not sole – purpose of real estate professionals was to provide information about the market. Hence, the smart people thought, people would no longer need real estate agents, because they could easily obtain the relevant information themselves.

As an example, the demise of travel agents was often cited. They, too, were predicted to be practically eliminated as a result of the internet. And, certainly, things have looked that way. (To be sure, other factors have been at work too.) In 1997 there were approximately 44,000 travel agencies in the U.S. In 2011, the number was roughly 20,000.

Curiously, though, despite all the pundits had to say, the membership in the National Association of Realtors® (NAR) has actually increased, substantially, during the same period of time. Yes, it has dropped from its peak during the bubble years, but still it is noteworthy that in 1997 NAR membership was 716,078, and in 2011 it was 1,009,940.

A couple of things explain the differences: (1) Much – though not all – of a travel agent’s inventory was fungible, which is pretty much to say, interchangeable. Non-stop coach tickets from Los Angeles to Dallas are pretty much the same, regardless of airline, with the exception of time and price. When people can get the latter information themselves, they don’t need an intermediary. (2) That is not so true of real estate. The closest thing to fungibility might be model matches in the same development; but, as we all know, two Plan B’s in the Happy Homes Tract can differ in value by many thousands of dollars.

Another, undoubtedly more important difference, is that a real estate transaction — unlike the purchase of an airplane ticket – involves a variety of dimensions or levels. The negotiation between buyer and seller is just the beginning. To name just a few, there are also considerations involving such things as taxes, title, physical and pest inspections, insurance, settlement agents, warranty provisions, and the date of occupancy.

The real estate professional is not the person who attends to all these things, but he or she is the one at the center – coordinating them and making sure they fall into place.

The real estate agent has a central role to play in the transaction; but with that role also come responsibility. It is twofold.

One aspect of the responsibility is competence. There’s a lot of stuff the professional needs to know in order to properly orchestrate a transaction closing. They can never know enough. A wise person once said: “We have two things to give to our clients – our time and our knowledge. And we are running out of time.”

The other aspect of an agent’s responsibility is a commitment to ethics. With so many moving parts in a transaction, myriad opportunities exist for a central player to take advantage of a principal – to place the agent’s interest above that of the client. This is where true professionalism comes into play: when the competence and character of an agent combine to deliver service that is both reliable and trustworthy.

That sort of performance is not about to be disintermediated or replaced by an automated exchange.

Published: March 6, 2012

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Realty Times – Home Loan Modification Scams Persist

Realty Times – Home Loan Modification Scams Persist.

 

by Robert Aldana

Maria Lozano, a Los Banos, CA homeowner, recently struggled to pay her mortgage so she hired who she thought was a real estate broker. The broker charged her more than $2,000 for a loan modification she never received.

When Lozano attempted to cancel the contract with the non-licensed “loan consultant” the consultant refused to refund her money and managed to extract another $500 from the homeowner’s bank account.

Bella Aguilar, a struggling homeowner from Union City, CA, paid a California attorney $2,300 for a loan modification she also never received.

Aguilar has been unable to make final payments to the attorney and even though she never received a loan modification, the attorney is threatening to sue her for the balance.

Foreclosure rescue operations demanding up-front fees continue to rob homeowners looking for relief, even as the services circumvent state and federal laws enacted to prohibit the way they conduct business.

The laws primarily prohibit foreclosure relief or foreclosure rescue services from collecting fees before services are actually rendered, and they come with heavy disclosure requirements.

Federal, state and other jurisdictions enacted the laws in recent years in response to questionable operations that have sprung up since the housing crash to capitalize on vulnerable homeowners struggling to pay the mortgage.

The laws provide consumers with protections against mortgage modification fraud, but they also target shady short sale operations, questionable deed-in-lieu of foreclosure deals and other services professing to help homeowners prevent foreclosure.

State, federal laws

In California, former Governor Arnold Schwarzenegger signed Senate Bill 94 (SB 94) Oct. 11, 2009, effective on that date, to prohibit advanced fees.

The new law also applies to operations holding California Department of Real Estate “no objection letters,” operations which once were exempt from the advance fee ban.

Since Jan. 31, 2011, the Federal Trade Commission’s (FTC)“Mortgage Assistance Relief Services (MARS) Rule,” designed to curb fraud, scams and rip-offs in the mortgage services industry, likewise has prohibited most services from collecting up-front fees. Attorney’s are exempt, under certain conditions in the federal law, but not under California’s law.

The FTC says state laws that are stronger than federal rules, including California’s law, take precedence over the federal law.

Despite California’s law and the federal rule, some real estate brokers and attorneys continue to break the law, especially when it comes to collecting advance fees.

Attempting to find a loop hole in the law, some operations carve up or itemize loan modification services and ask homeowners to pay for each itemized service as it is completed.

That’s illegal, according to a California Department of Real Estate (DRE) bulletinand SB94 Frequently Asked Questions (FAQ) which clearly explain the reversed “no objection letter” exemption as well as the ban on collecting advance fees when services are itemized.

Payment for services is only due upon completion of a mortgage modification or other service and the service isn’t complete until the lender has issued, in writing, a trial or permanent loan modification or other workout.

http://www.youtube-nocookie.com/embed/tqKUaPHBJ7w?rel=0

“I found out about the company on a local radio station where an individual was announcing her loan modification services,” said Lozano.

“She demanded an upfront payment and wanted me to make monthly payments of $500 to her broker’s office and when I asked her why I was being charged every month, she replied to me by saying ‘We all have to eat and pay the bills’,” Lozano said.

Lozano grew suspicious when the salesperson told her to deposit extra money every month into her bank account. The salesperson also told her to lie the lender that the money was income earned from renting rooms. Lozano did not rent rooms and the request prompted her to ask the salesperson for her real estate license.

That’s when Lozano discovered the salesperson wasn’t licensed, but was distributing business cards identifying her as a “loan consultant” for a mortgage broker.

Home buyers falsifying incomes and other information, when they were unable to afford a mortgage payment, contributed to the housing crisis.

Educational information

“Although SB94 does in fact prohibit individuals from collecting advanced fees, people are still doing it” said Tom Pool, a spokesperson for the California’s DRE, which has issued a host of alerts about the scams.

Fannie Mae, Freddie Mac, NeighborWorks America and the Lawyers’ Committee For Civil Rights Under the Law also opened the Prevent Loan Scams website to thwart fraud.

To that end, the FTC offers the “Mortgage Assistance Relief Scams” web page.

“Our advice is to file a formal complaint and let us look at all the documents and facts and investigate each complaint,” Pool said.

Lozano now has a complaint on file with DRE.

Confusion about her contract made Aguilar suspicious.

“The attorney had me pay for loan modification services and assistance before they began or completed their loan modification services,” she said.

“I was confused because the contract that I signed with the attorney states that I am not paying for loan modification services, yet on another page it stated ‘loan modification services’,” said Aguilar who is filing a formal complaint with the California Bar Association.

In California, any contract that is unlawful and/or entered into unlawfully is void and cannot be enforced.

Forensic load audit scams

A related scam is the forensic loan audit which comes with the promise of a reduced interest rate, the promise of a reduced loan balance, even the promise of a full mortgage cancellation if errors are found in the homeowner’s original loan documents.

There’s little evidence these audits will reduce anything but a homeowner’s bank account balance. They are not an effective way to get a loan modification.

“There is no evidence that forensic loan audits will help you get a loan modification or any other foreclosure relief, even if they’re conducted by a licensed, legitimate and trained auditor, mortgage professional or lawyer,” according to the FTC.

The services are, however, so heavily marketed via the Internet, television and radio, they triggered an FTC consumer alert “Forensic Mortgage Loan Audit Scams: A New Twist on Foreclosure Rescue Fraud.”

California has also warned of “mass joinder” or class-action-litigation posturing that scammers use to try to separate homeowners from their money and their homes.

Bottom line for mortgage relief

If you believe a mortgage modification, short sale or other mortgage relief program can help you, educate yourself on the program, just as you should have educated yourself about obtaining a mortgage.

Chances are, just as you don’t need to pay anyone to help you complete a mortgage application and provide the necessary documentation, you don’t need to pay for mortgage modification assistance or related services.

Examine your foreclosure relief options at Making Home Affordable or by calling 1-888-995-HOPE for free personalized advice from housing counseling agencies certified by the U.S. Department of Housing and Urban Development (HUD).

Study their guidelines and be clear, concise, thorough and honest on your loan modification application. Falsifying information is as damaging to your hopes as not correctly filling out a loan modification application.

Even a certified agency is not above you asking how long they take to get answers from lenders and about their track record of successfully modifications from your lender.

A certified agency should be able to go over the guidelines and qualification requirements for specific lenders to determine your eligibility before you actually begin the mortgage modification, short sale or other process.

They initially should help you learn if you qualify for a modification or other service and can afford any new payment plan, before you spend time wrangling with your lender.

Throughout the process, when you talk with your lender, document (date, time, discussion details) every conversation and action.

Finally, become part of the anti-fraud solution by avoiding illegal loan modification scams and by reporting them to your local district attorney’s office, local real estate regulator and local state bar as well as federal regulators.

If you believe you don’t have the time to learn the application process and proceed through it, perhaps you don’t have the time to save your home.

It isn’t easy, but the end result of your hands-on attention could be well worth the effort and your time.

Published: March 1, 2012

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Realty Times – Average 30-Year Fixed-Rate Mortgage Up From All-Time Record Low

Realty Times – Average 30-Year Fixed-Rate Mortgage Up From All-Time Record Low.

 

In Freddie Mac’s results of its Primary Mortgage Market Survey® (PMMS®), fixed mortgage rates moved off their at- or-near record lows for the first time in three weeks amid recent data showing the housing market continues to improve.

 

• 30-year fixed-rate mortgage (FRM) averaged 3.95 percent with an average 0.8 point for the week ending February 23, 2012, up from last week when it also averaged 3.87 percent. Last year at this time, the 30-year FRM averaged 4.95 percent. 
• 15-year FRM this week averaged 3.19 percent with an average 0.8 point, up from last week when it also averaged 3.16 percent. A year ago at this time, the 15-year FRM averaged 4.22 percent. 
• 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.80 percent this week, with an average 0.7 point, down from last week when it averaged 2.82 percent. A year ago, the 5-year ARM averaged 3.80 percent. 
• 1-year Treasury-indexed ARM averaged 2.73 percent this week with an average 0.6 point, down from last week when it averaged 2.84 percent. At this time last year, the 1-year ARM averaged 3.40 percent.According to Frank Nothaft, vice president and chief economist, Freddie Mac:

  “New data releases this week suggest the housing market is continuing to gradually improve. Loans that were seriously delinquent (90 days or more past due plus the foreclosure inventory) fell to 5.3 percent of prime mortgages at the end of 2011, representing the lowest quarterly share since the start of 2009, according to the Mortgage Bankers Association. The Census Bureau reported new residential construction starts in January outpaced the market consensus forecast, led by condominiums and apartment buildings, and December’s figures had upward revisions. Finally, existing home sales were at the strongest pace in January since May 2010, according to the National Association of Realtors®”

Published: February 24, 2012

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