As a real estate agent, I devote extra attention to issues facing struggling homeowners. But any homeowner should know that the FBI has reported a 400 percent increase in mortgage fraud cases from five years ago. Sadly, some people are preying on those who need help the most. If you or anyone you know is going through a mortgage-related transaction, there are some "red flags" to be aware of. I created a report on my website that gives examples of what fraud cases the FBI has been noticing. Please send anyone here who needs this free information:
http://hosted.cdpe.com/40800/
If you have any questions about mortgage scams, or if anyone you know needs legitimate, professional help with avoiding foreclosure, please don't hesitate to contact me.
I'm here to help.
Lynn Dasteel
Casa Pacific Realty
(619) 287-7777
www.lynndasteel.com
Fixating on price in real estate may cost you the deal:
Sellers who decide that a specific dollar figure will buy their home and won't budge from that bottom line may sell themselves short.
Buyers who drop out of a transaction for a property they love because the seller's counter-offer shocks them may be quitting before they have really started negotiating. When a buyer makes an offer to purchase a house, condominium unit or commercial property, the purchase price is a prime consideration, but it represents only part of the total value offered to the seller. Problems may arise for both sides of the transaction when this fact is forgotten.
Value Elements in an Offer
The value expressed in a buyer's offer to purchase, or in a seller's offer to sell, involves 5 key elements -- a financial package:
Purchase Price, the stated amount of dollars offered by the buyer, represents a significant contributor to value, but there are other important factors which can reduce the amount the seller receives or which can compromise the transaction. It's not the purchase price, but the net proceeds of the sale that sellers -- and savvy buyers -- should concentrate on.
Closing Date, or the day ownership changes hands and the seller receives the money, can represent cost or value to both parties. Savvy buyers usually attempt to meet the seller's preferred moving date, especially when the seller has committed to purchasing another property or needs the proceeds of the sale on a specific date. For instance, a closing before that date may be expensive because the seller would have to move out and store everything until they could move into their new home. That double move and the inconvenience represent out-of-pocket costs and time lost that make the actual purchase price lower than stated. A closing date later than the seller's preferred date may leave the seller owning two homes - and paying off two mortgages - at once. The seller may incur extra costs in arranging bridge financing to meet legal obligations to close on their new home before they receive proceeds from the sale of their current home. Choice of closing date may represent costs or value to the buyer as well. Balancing this reality for both parties is key in negotiation.
Inclusions and Exclusions to the sale also represent costs and value for both parties. Appliances, heating systems and draperies are common seller inclusions designed to boost value for buyers. If warranties for everything from a new roof or solar panels to new appliances cannot be transferred to a buyer, these items become "second-hand"and will probably represent less value to buyers. Buyers are also free to include excluded seller items, like an antique light fixture, in the offer to purchase. Deals have been lost to disagreements over light fixtures, fireplace accessories and vintage furnishings, so prudent sellers remove contentious items before listing. A buyer may offer less than list price and ask for nothing; a seller could sign back for more money and include items to sweeten the pot. Value is very subjective for these non-real-estate items and that's where negotiations can get heated.
Terms and Conditions are clauses in the offer which cover "what if" risks for one party and the obligations of both parties. These clauses detail what the buyer asks the seller to do for the purchase price. Arrange a survey or include a treasured light fixture? Sellers can create conditions in an offer to sell, but usually conditions are of greater concern to the buyer, particularly if approval of a third partly like a lender or city planning department is involved in determining the property's suitability. Conditions to arrange financing or a home inspection are among the "ifs" that define the offer to purchase. The degree of uncertainty attached to the conditions and the buyer's related ability to close effect the value of an offer. For instance, a buyer who is pre-approved for a mortgage of sufficient size offers less risk to a seller. However, if the purchase price is significantly-above market value, the lender may not approve the mortgage, so a condition for financing is essential to protect all parties. A full-price offer with conditions that will be difficult to meet may hold less value than an under-list-price offer with no conditions. Alternatively, if the conditions are merely formalities, the conditional offer could represent greater value. Would you recognize the difference if you were the seller? That's where the expertise of the real estate professionals involved becomes valuable...
Intent and Sincerity are vital aspects of an offer although difficult to quantify. How determined is the buyer to buy, and why? How determined is the seller to sell? If either party changes their mind after the contract exists and before the closing date, the injured party has remedies in court. These legal steps may not make up for lost time and, perhaps, a missed market. An investor or flipper may decide to cut losses and bail out of the deal if the market drops significantly before closing. A seller may have second thoughts if their plans to move fall through. For both parties, value should lie in the certainty that the other party will close in spite of market shifts. Yes, price matters, but there's a lot more involved in creating an offer that demands to be accepted. That's why an experienced real estate professional is a valuable contributor to success. Professionals can calculate, or at least estimate, the seller's net proceeds after costs related to the offer and deduction of commission. This information helps the seller accurately evaluate an offer to purchase. Understanding cost and benefit for all elements of an offer helps a buyer intent on ownership to create the best financial package possible.
Tip: Re-read this article when you are ready to make an offer, counter an offer or accept one. This will ensure value is visible to you on all levels before you decide to walk away or sign on the dotted.
Written by PJ Wade
You may have heard or read in the news about ‘strategic defaults’ as a possible foreclosure-avoidance option. However, of the millions of homeowners in distress, more than 70% of homeowners proceed without seeking assistance or getting the facts about their situation.
At my website I’ve prepared a free report to explain the consequences of strategic defaults and foreclosure—and the benefits of a short sale—when underwater on your mortgage. You will learn the advantages and disadvantages to all your options.
I sincerely hope you’ll take advantage of this information and feel free to pass it along to anyone you know in need. Getting the right information is the key to getting back on track.
Please contact me any time with your questions or concerns.
I’m here to assist you.
Lynn Dasteel
Casa Pacific Realty
(619) 287-7777
A new survey reveals that savvy consumers cashing in on the new and improved homebuyer tax credit are helping fuel economic recovery.
The vast majority of current homeowners say they would spend the expanded version of the homebuyer tax credit on repaying existing debts, home improvements, savings and investments and household expenses, according to a National Association of REALTORS® survey of 1,000 homeowners.
Paying off debts affords consumers more spending power, home improvements likewise put more equity money in their pockets and savings and investments generate income.
Consumer spending, of course, is the real fuel for the nation's economic engine. And much consumer spending is fueled by the housing market -- provided the housing market is energized.
Helping to energize the housing market and the economy is the idea behind the homebuyer tax credit and it's recent extension and expansion.
By October 2009, before President Obama signed the latest extension and expansion, more than 1.2 million tax returns had claimed about $8.5 billion in the refundable tax credit, for both new and resale homes - according to the Treasury Inspector General for Tax Administration (TIGTA).
The new law extends the existing credit for first-time homebuyers, worth up to $8,000, through April 30, 2010.
A new credit of up to $6,500 is available to qualifying existing homeowners who buy a new primary residence (or have one built) by April 30, 2010, if they owned their existing home for five consecutive years over the last eight years. Second homes don't qualify.
The new rule also raises the qualifying income limits to $125,000 for single taxpayers and $225,000 for joint taxpayers, from the current $75,000 and $150,000.
The maximum allowed home purchase price is $800,000.
More information is available from the Internal Revenue Service (http://www.irs.gov/), including its question and answer page.
As a tangible asset with a host of other tax breaks and the potential for equity gain, a home is often a consumer's most valuable asset.
As the economic theory goes, when more consumers buy homes, the economy gets a boost.
NAR's survey appears to confirm the theory.
Among those surveyed, 83 percent said if they purchased a home and qualified for the tax credit they would engage in "smart spending" on things that could ultimately increase income available for spending.
Only 6 percent said they would squander the money on luxury items such as vacation or shopping spree.
According to the survey most consumers would spend their tax credit:
To pay off debts (34 percent). Paying off debts leaves more money to spend or save and invest for returns that again generate spending money.
To make home improvements and potentially increase the value of their home and home equity (29 percent). Home equity, can be a way to consolidate other, more expensive debt or spend further on capital improvements that generate more returns on the money.
To put into savings and investments (28 percent). Saving and investing for returns is a much better personal financial approach than using credit for purchases. The survey also found, after learning about the tax credit expansion, 20 percent of those surveyed said they were more likely to consider purchasing a home than they were six months ago.
Of course, what will happen when the tax credit expires in 2010, without another extension, is anyone's guess.
Written by Broderick Perkins
Lenders want you to avoid foreclosure! Find out how! If you or someone you know owes more on a mortgage than it's worth, you deserve to be educated on options to protect from financial ruin.
So Which Option is the Right One?
Contrary to what you may have heard, lenders actually want to avoid a foreclosure wherever possible. That’s why they’re accepting more short sales and deed-in-lieu transactions everyday—especially short sales—to eliminate unnecessary foreclosures. As a Certified Distressed Property Expert, I have been trained to assist homeowners facing these difficult situations. I can eliminate the confusion and ease frustration by providing you with the information you need to evaluate your options. In fact, I've created a free report to provide you with more information about these two dignified solutions to foreclosure. The report provides clear facts about the options that could save you from further financial distress. You can access this report by clicking here!
If you have any questions or concerns about your circumstances, or if your situation is urgent please give me a call.
It's time. I'm here to help!
Lynn
619-287-7777
or email lynndasteel@hotmail.com
Equipt yourself with the right information on each of your foreclosure-
avoidance options. Formulate a plan, know your next step and get
back on track!
If you or someone you know is among the many homeowners struggling to pay the
mortgage each month, it’s critical to your fi nancial future that you explore all the
options available. A mortgage modifi cation can be an ideal solution for homeowners
facing fi nancial hardship. However, it is important to take precaution, get all the facts
and have a contingency plan. ‘The Truth About Mortgage Modifi cations,’ is a FREE
report that I’ve prepared. Please click here for more information and your free report!
A trusted, educated agent can guide you through these tumultuous times toward a
solution. As a Certifi ed Distressed Property Expert® I’ve been trained to help.
Lynn Dasteel
Casa Pacific Realty
LynnDasteel@hotmail.com
www.LynnDasteel.com
Today, foreclosure is an overwhelming reality for millions of homeowners. However, more than 70% of homeowners proceed without seeking assistance and without getting the facts.
I’ve prepared a free report to lay out the first steps you should take when upside-down on a mortgage and unsure of what to do next! You will learn the advantages and disadvantages to all your options, while putting together an efficient outline of how to take advantage of whichever one you choose. (please click the logo below for more information.)
I sincerely hope you will take advantage of this information and feel free to pass it along to anyone you know in need. Getting the right information is the key to getting back on track.
Please, contact me any time with your questions or concerns.
I’m here to assist you.
Lynn Dasteel
Casa Pacific Realty
(619) 287-7777
Once again a New Year is upon us, and it undoubtedly will bring many changes. Hopes and dreams for the future combined with memories of the past year can mean an exciting year to come. If one of those dreams includes a new home, I would love to help make that dream come true. I can provide you with information about the value of your current home as well as homes presently available. Your new dream home may be out there waiting for you now! Please feel free to contact me regarding the sale of your current home, the purchase of your new home or any real estate questions you may have. I would be happy to help you in any way I can during this New Year! Sincerely, Lynn Dasteel
San Diego, CA – 12/20/09 – Lynn Dasteel of Casa Pacific Realty has earned the prestigious Certified Distressed Property Expert® (CDPE) designation, having completed extensive training in foreclosure avoidance, with a particular emphasis on short sales. At a time when millions of homeowners are struggling with the possibility of foreclosure, the skills and education accumulated by Lynn will help benefit San Diego-area residents.
Short sales allow the distressed homeowner to repay the mortgage at the price that the home sells for, even if it is LOWER than what is owed on the property. This is an alternative to foreclosure, which can cause significant problems for the homeowner. With plummeting property values, this can save many people from foreclosure and even bankruptcy. It is also an excellent alternative should the homeowner apply for and not receive a reasonable loan modification. It is important to know that there is NO fee for these services.
Today, more than 13% of homeowners are delinquent on their mortgage or in the foreclosure process. Over 85% of the clients served by CDPE real estate professionals avoid foreclosure.
“The CDPE designation has been invaluable as I work with homeowners and lenders on complicated short sales. It is extremely rewarding to be able to help families save their homes from foreclosure. My focus with homeowners is to give them the hope of a dignified solution to their financial crisis through current lender loan modification, loan refinancing (short or long-term) or a short sale (lender-approved sale at less than the outstanding loan balance)”, stated Lynn.
Alex Charfen, co-founder and CEO of the Distressed Property Institute in Austin, Texas, was quoted as saying “Agents such as Lynn Dasteel with the CDPE Designation have a valuable perspective on the market, and training in short sales that can offer homeowners real alternatives to foreclosure, which can be devastating to credit ratings. These experts better understand market conditions than the average agent, and can help sellers through the complications of foreclosure avoidance. Lynn Dasteel has demonstrated a commitment to struggling homeowners, and will provide much-needed assistance in stabilizing the community.”
“Not having a clear understanding of the elements and consequences of foreclosure lead many homeowners to just give up. If I can help you stay in your home or guide you through the short sale process, I will have the satisfaction of knowing I helped to do whatever is possible to best serve your needs”, states Lynn.
For more information, or to set up an appointment call Lynn @ 619-287-7777
Dear Neighbors and Friends,
As the holidays approach, I want to personally thank all of you for your years of warmth, support, and trust, as I have built my career in Real Estate. Who would have thought seven years ago, that I would leave the field of social work, and actually go into an area of “sales”!!!! But that is not what being a Realtor has been for me. It is not about sales but about people and friendship. I feel truly blessed to know so many of you – you have let me into your lives, have entrusted me to help you with some of your biggest transitions ever. Thank you! Thank you for the privilege of knowing you. I only hope that I can continue to assist you with your real estate needs in the same spirit of cooperation and support that you have shared with me when we have worked together. And to those of you I haven’t had the privilege of meeting, I invite you to give me a call and say hello. I am here to help. I wish you and your families a most wonderful holiday season and a healthy and happy New Year!
Fondly,
~Lynn
First-time home buyers reached the highest market share on record during the past year, according to the latest consumer survey of home buyers and sellers. The study was released November 12th at the 2009 REALTORS® Conference & Expo.
The 2009 National Association of Realtors (NAR) Profile of Home Buyers and Sellers is the latest in a series of large national NAR surveys evaluating demographics, preferences, marketing and experiences of recent home buyers and sellers. Among national surveys, NAR's Profile of Home Buyers and Sellers is unprecedented in size and scope.
Paul Bishop, NAR vice president of research, said several factors have been at play. "Tax incentives, record high affordability conditions and a pent-up demand brought a record share of first-time home buyers into the market," he said. "These buyers are critical to housing and a general economic recovery because the market always heals from the bottom up – they absorb inventory, free existing owners to make a trade and stimulate related goods and services."
The number of first-time home buyers rose to 47 percent of all home sales from 41 percent of transactions in last year's study, and was the highest on record dating back to 1981. The previous high was 44 percent in 1991. "It's interesting to note the last cyclical peak of first-time home buyers was during the last noteworthy economic downturn, with first-time buyers starting the chain reaction that led the nation out of recession," Bishop said.
The profile shows the median age of first-time buyers was 30 and the median income was $61,600. The typical first-time buyer purchased a home costing $156,000, down from $165,000 in the 2008 study, and plans to stay in that home for 10 years.
Fifty-five percent of entry level buyers reported they financed their purchase with an FHA loan, while another 8 percent used the VA loan program.
First-time buyers who made a downpayment used a variety of sources: 61 percent used savings and 22 percent received a gift from a friend or relative, typically from their parents. Six percent received a loan from a relative or friend, 6 percent tapped into a 401(k) fund, and 6 percent sold stocks or bonds. Ninety-six percent chose a fixed-rate mortgage.
First-time buyers often make financial sacrifices to purchase a home: 39 percent cut spending on luxury items, 38 percent cut back on entertainment and 30 percent cut spending on clothes.
Buyers searched a median of 12 weeks and viewed 12 homes. Among buyers who used an agent, 63 percent selected a buyer's representative. Eighty-seven percent consider their home a good investment, and more than half see it as a better investment than stocks. Twelve percent of buyers own two homes, while another three percent own three or more homes.
The typical repeat buyer was 48 years old, earned $88,100, purchased a home costing $224,500 and plans to stay in that home for 12 years.
The median downpayment of all home buyers was 8 percent, and the number purchasing with no money down fell from 23 percent in 2008 to 15 percent in the current survey; 8 percent of buyers paid all cash for their home.
The median age of home sellers was 46 and their income was $91,100. Typical sellers had been in their home for seven years, up from six years in the 2008 survey, moved a median distance of 19 miles, and their home was on the market for 10 weeks. Nearly half traded up in size, 30 percent bought a comparable home and 22 percent traded down.
Written by Realty Times Staff
The CDPE Designation provides real estate industry professionals with detailed information on how to engage with and assist homeowners in distress. With more than 7,500 professionals trained across the United States, the CDPE is one of the fastest growing designations in real estate industry history. The CDPE designation has been endorsed by RE/MAX International and other major U.S. brokerages and industry icons, including: Dave Liniger, chairman and co-founder of RE/MAX; Howard Brinton, founder of STAR POWER® Systems; Bob Corcoran, founder of Corcoran Coaching and Consulting; Brian Buffini, founder of Buffini and Company; and David Knox, founder of Knox Productions. What is a CDPE?
A Certified Distressed Property Expert® is a real estate professional with specific understanding of the complex issues confronting the real estate industry, and the foreclosure avoidance options available to homeowners. Through comprehensive training and experience, CDPEs are able to provide solutions for homeowners facing hardships in today’s market, specifically short sales.
The prospect of foreclosure can be financially and emotionally devastating, and often homeowners proceed without guidance of any kind. The developers of the CDPE Designation believe that the best course of action for a homeowner in distress is to speak with a well-informed, licensed real estate professional. They have the tools needed to help homeowners find the best solution for their situation. Often, when other options have been exhausted, CDPEs can help homeowners avoid foreclosure through the efficient execution of a short sale. While enduring financial difficulties is challenging for any family, the process of finding a qualified real estate professional should not be. Selecting an agent with the CDPE Designation ensures you are dealing with a professional trained to address your specific needs. For more information, contact Lynn Dasteel at 619-287-7777 or lynndasteel@hotmail.com.
CDPEs don’t merely assist in selling properties, they serve and help save their clients in need.
Mt. Tabor Monastery in Tecate, Mexico helps the poor, young and old. The people living near the monastery need blankets -they are cold and have no electricity. Can you help?
Do you have blankets that are gently used, new, any size?
What to do: Please call Lynn at (619) 287-7777, with your name and address.
Who will pick up the blankets and deliver to Tecate? Lynn Dasteel
Any questions: Call Lynn 619-287-7777
Thank you from the community of Tecate! Mexico.
The first-time homebuyer Federal tax credit for $8000, record-low interest rates, and nationwide median home prices dropping to the lowest point in five years, makes this an enticing time to consider buying a home. By the way, that tax incentive isn't truly just for first-time buyers -- it's defined as those not having owned a home in the last three years. Research and knowing your options are critical. Check with your tax accountant for more details. It’s increasingly likely that Congress will extend and expand the popular home buyer tax credit, which will expire at the end of this month. According to an article in August in the Raleigh News & Observer, 10.8 percent of buyers are motivated to buy due to Federal and state tax incentives. So far only 1.14 million buyers have filed for the credit but many more are expected to file for it on their 2010 returns. However, the National Association of Realtors reports that the first-time homebuyer figure in July was still about 10 percent below the average for the past six years. There are many aspects to consider when buying your first home. Your price point, location, lifestyle, expert help, mortgage programs, inspections, how quickly you want/need to move, the list goes on. It can seem like an overwhelming process for first-time buyers. In fact, some shy away and continue to rent simply because they don't know who to turn to or where to begin. Today there are more resources than ever available with just the click of a mouse; however, that can create information overload! But if you take a breath and relax, I'll sort through some important factors for home buying. And even if you're a seller, it's good to review this material because it helps to remind you where first-time buyers' mindsets are when they make an offer on your home. Give yourself more time than you think you need. Due to the housing crisis and credit crunch, the mortgage process can take even longer than it did previously. Searching for a home is averaging about 12 weeks while getting the mortgage process wrapped up can take up to 60 days, according to information released by National Association of REALTORS 2008 Profile of Buyers and Sellers. Give yourself plenty of time to understand how much home you can afford, what kind of loan is most suitable for your needs, and, of course, plenty of time to select the home that fits your lifestyle. First-time homebuyers often don't have a lot of comparison shopping experience. Frequently they're just getting started. What is acceptable for a rental is likely different from what first-time buyers expect and accept when purchasing their first home. However, first-time buyers must understand that shopping for a home is akin to shopping for a mate... there are always some compromises that are necessary. If you don't allow enough time, you'll find that it will lead to headaches, rushed decisions, and, in the end, you may feel pressured to buy something that you have not had enough time to completely consider—maybe because you have to relocate and start your job. Never skip an inspection. You simply can't spot everything that could be wrong with the home. While not all sellers do it, some hire an inspector to inspect the home when they list it on the market. However, the burden of the inspection typically falls on the buyer to pay for it. And the information you receive is invaluable. Hiring a certified inspector to give the home a once-over will help you discover problem areas that your agent can then negotiate for repair work or price adjustment. Also, note that the home inspections (yours and the sellers) may differ; examine both, this way you'll learn more about your potential home. Frank Schulte-Ladbeck, a licensed home inspector says that when you get your home inspection be certain to have everything turned on. In one case, "The water valve to the house was turned to almost off. When you turned it on to regular pressure... the seller had water spurting out of almost all of the faucets because all of the O-rings, the seals, had all dried so much that they were just allowing water to spill right out of them," said Schulte-Ladbeck. Use experts to help prepare. Having a team of experts who can expedite your search by finding the most suitable properties for you will save you endless hours of looking. Also, the right mortgage expert simplifies the loan process. You'll be guided through the home-buying process instead of becoming overwhelmed by the options, paperwork, and tasks. Using the best specialists can truly make buying your first home a wonderful experience. Written by Phoebe Chongchua
Despite tougher lending standards putting the kibosh on some types of home loan scams, organized wise guys continue to traffic in mortgage fraud.
The number of Suspicious Activity Reports (SARs) for mortgage fraud tracked by the Federal Bureau of Investigation could skyrocket by nearly 300 percent this year.
Compared to 2007, mortgage fraud SARs in 2008 had already increased by more than 36 percent to 63,000. But just two months into 2009, the FBI has already documented nearly 29,000 mortgage fraud SARs. At that rate, some 174,000 SARs; a 276 percent increase; could be filed by the end of the year.
And that's only what the FBI can see.
"Many mortgage finance-related entities are either loosely or completely unregulated at the state or federal level," said FBI Director Robert Mueller in recent testimony before the U.S. Senate Appropriations panel.
The good news?
"The current financial crisis has produced an unexpected consequence. They have helped reveal numerous mortgage fraud schemes, Ponzi schemes, and investment frauds, such as the Bernard Madoff scam," Mueller testified.
But while the Feds are catching up with Wall Street crooks, struggling homeowners on Main Street remain common prey. Despite tougher lending standards putting the kibosh on some types of home loan scams, organized wise guys continue to traffic in mortgage fraud.
That's prompted the U.S. Department of the Treasury, the U.S. Department of Justice (DOJ), the Department of Housing and Urban Development (HUD), the Federal Trade Commission (FTC), and the Attorney General of Illinois to launch new initiatives to pump up fraud investigations and step up enforcement actions, especially to protect homeowners seeking relief from President Obama's Making Home Affordable initiative.
The effort particularly targets loan modification and mortgage fraud.
Mortgage fraud, a relatively new form of organized crime, first cashed in on the greed that came with the boom market, when some buyers would do anything to own a home, including lie on the application. Cons, often insiders, also falsified documents, inflated appraisals and used other underhanded techniques to get home loans approved and properties flipped for a hefty profit when appreciation was skyrocketing.
With the housing market bust, however, came stricter underwriting scrutiny which helped stem the tide of loans approved with fabricated information.
Now, mortgage fraud is taking advantage of vulnerable, gullible homeowners facing foreclosure. Like those who once fibbed to cash in on the booming market, many struggling homeowners are likewise willing to do anything to remain homeowners.
Mueller said today's host of sophisticated scams are associated with new loan modification services, foreclosure bailouts, equity grabs, bankruptcy, identity theft and property flipping, among others.
Bruce Hahn, president of the American Homeowners Foundation, a non-profit advocacy group in Washington, D.C. says it's tough to tell the good guys from the bad without a scorecard.
"Some loan modification services are competent, but some are incompetent and there is another group of people who post ads to help with mortgage problems, but are basically fraudsters and fronts," Hahn said.
The FTC recently surveyed online and print advertising for mortgage foreclosure rescue operations nationwide and identified approximately 71 distinct companies running suspicious ads.
It's clear homeowners, who want to avoid being taken by the new scammers must likewise become more sophisticated.
The experts advise:
Don't be a rube. If it sounds too good to be true, it probably is. Debts, bad credit and other financial holes didn't appear over night. They won't magically disappear over night. "A fair number of homeowners have actually paid someone money before they see us. They see us because they paid and the company didn't do anything for them," said Martin Eichner, director of housing counseling services for Project Sentinel in Northern California.
Be wary of strangers and unsolicited contacts, as well as high-pressure sales techniques. Avoid spam come-ons and web-based advertisements promoting the elimination of mortgage loans for an up-front fee to prepare documents to satisfy the debt. Beware of offers to "save" you from defaulting on loan payments or from foreclosure. "The most outrageous of these schemes are offers to take your mortgage payment and hold them for you in a trust account. That is a total rip off. Never give your mortgage payment to any third party," Eichner said.
Attempts to cajole you into making false statements in the name of mortgage relief is a red flag. Likewise don't sign blank documents or those you don't understand.
Seek out family, friends, co-workers and others you trust who recently successfully solved a mortgage problem. Ask them for referrals. That applies to loan modifications, work outs, restructuring and refinance efforts. "I would say contact a U.S. Department of Housing and Urban Development, but you can't just say that. We can't help everybody who needs help (because of overwhelming demand). If you hire a for-profit service you should be paying money only if (and after) they are successful. If they are an attorney, contact the state bar. For mortgage brokers (and real estate agents) check with the California Department of Real Estate," Eichner added.
Hahn also says to contact city and county housing offices for assistance and referrals and the latest information on legal, government-sponsored assistance.
Written by Broderick Perkins