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Riverside Short Sale Realtor
Challenges That Face Real Estate Agents

By: Lance Thorington

The short sale is a way of selling a property facing foreclosure, and although it is not a legislated method, it has become a common business practice.

Essentially it is a way of selling a property when the home owner is experiencing extreme difficulty in paying their mortgage loan repayments and when there is little or no equity in the property.

Many investors are interested in purchasing property in a short sale, this is because they are able to bag themselves a bargain. Lenders allow mortgage holders to sell the property for as close to market value as possible, even if they owe more on the mortgage than the property is valued at.

This is a regular occurrence in the US with the massive amount of foreclosures available pushing the market values of properties even lower. Short sales and REO (Real Estate Owned) are presently making up over 40% of all real estate sales taking place in the US and more than this in exceptionally hard hit areas such as Florida and Southern California.

Both of these states have seen remarkable drops in the market values of properties in the past two years, and this is pushing many home owners out of their homes as they are no longer affordable. There is also no value left in the home for them if they sell it and there will be a shortfall owed to the mortgage lender if they sell. The lender is then able to pursue a default judgment for the home owner to pay any balance left outstanding on the mortgage after the short sale, although this is only applicable in some state.

The short sale has to take place with the permission of the lender, and only after the home owner has proved that they are in extreme circumstances. This is the reason why a realtor who are experienced in this process is required.

A win-win situation has to be created for all the parties involved in the deal and the bank want to get as much as they possibly can out of it.

If the home owner and realtor manage to pull off the short sale, the home owner will be in a far better circumstance than they would be if a foreclosure took place. This prospect’s incentive is for them to sell their distressed property at less than market value. They get out of paying a mortgage loan they can no longer afford and escape with their credit rating in tact.

This is invaluable because there is very little anyone can do in the US with a bad credit rating. It is recommended that a home owner who has undergone foreclosure, wait two years before applying for a bad credit home loan.

There are many challenge which face the short sale realtor, they really have to work hard for their money and it is being referred to in some real estate circles as the “Wild West”. However in the economic recession being experienced, it is necessary for them also to make a living, so they cannot pass up on these opportunities. House sales are down so they have to get whatever they can take

Author Resource:-> No challenge to big or small for Riverside Short Sale Realtor.

Article From RealEstateArticles4U.com

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Beware of Scam Artists in a Foreclosure

By: William Dorich

In every disaster there are those who look for opportunities to take advantage of the vulnerable and the mortgage crisis is no exception, don’t be victimized twice.

When you are facing foreclosure and looking for help to avoid losing your home, you need to be careful.

There are many corrupt individuals just waiting to pounce upon you and take advantage of your misfortune. They advertise themselves as so called foreclosure rescuers or experts. Before you realize it, they will acquire your property without a formal or recorded purchase for a fraction of what it would have brought at sale.

Without recording any change of ownership they will try to rent your property to another unsuspecting person while you remain legally bound to make the mortgage payments. The mortgage company is unaware that anything is wrong and you are left on the hook to pay the mortgage on a house you no longer possess and upon which you do not receive rentals.

Most homeowners lack adequate knowledge about foreclosure, their legal rights, and alternatives to foreclosure. Beware of scammers who promise rescue from foreclosure.
There are mainly three categories of foreclosure rescue scams: The Phantom Help; The Bailout; The Bait and Switch.

• In Phantom Help: the so called rescuer will charge fees for light-duty phone calls or paperwork you can easily do yourself. None of these phone calls or paperwork actually results in saving your home. It just gives you a false sense of hope and prevents you from seeking qualified help.
• In a Bailout: the rescuer deceives you into signing over title with the belief that you will be able to remain in the house as a renter and eventually buy it back over time. The actual terms are so onerous that the buy-back becomes impossible, you lose possession and the rescuer walks off with the right to sell and possess without the costs of foreclosure.

It is important at this point to stress that you DO NOT SIGN anything without consulting an attorney, no matter what these scammers tell you. If the deal is so good and so beneficial to you it will be just as good in a few days after you have had sufficient time to read the document and seek legal advice.

Any deal that sounds too good to be true, usually is.

• In Bait and Switch: under the guise of having you sign documents to bring your mortgage current, the rescuers will cause you to surrender your ownership. The documents appear to be temporary loans. They will do this in a sneaky way so that you will not realize you have been scammed until you are evicted.

How does the scam work?

Scammers approach homeowners in many ways including a straightforward phone call, or flyers and brochures being left at the door, and even a knock on the door. Some of the scammers are well organized and advertise in the local newspaper classified section. Some even have their own websites.

When you are faced with foreclosure, you do not have much time to react. This can lead you to make hasty decisions without consulting others. Scammers almost always highlight the lack of time and insist that you make quick decisions. They then pressure you for a quick signature on documents that you have not been given adequate time to read.

The initial contact typically revolves around a simple message and frequently contains a time is of the essence theme, adding a note of urgency to what is already a stressful and possibly desperate situation.

Once you fall for the trap and decide to move forward with the rescuer, you will be promised a fresh start at the initial meeting and they may also provide you with testimonials of other homeowners they claim to have rescued. They will then instruct you to cease all contact with your lender and allow them to take over. Any time you cease all contact with your lender, it is dangerous. It cuts off access to your options and you can quickly run out of time to prevent foreclosure. By the time you realize what is happening, it’s too late and you have been conned.

Scammers will do everything to cut off a home owner to access correct information. They win over the homeowner trust and warn them to stay away from attorneys and counseling agencies, ironically on the grounds that the attorney or agencies are out to make money from the misfortune of the homeowner.

Once it is too late to save your home, you will have been drained by substantial heavy fees and other charges. If a deed was signed on fraudulent promises, you, the homeowner, will then be evicted by the alleged rescuer from the property you once owned.

Author Resource: William Dorich is author of 7 books. His two newest are: Defeat Foreclosure and The Nursing Home Crisis. See: Defeat Foreclosure

Article From RealEstateArticles4U.com

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Foreclosure Rescue Services: Good Or Bad?
By: Susan Dean

You may get a solicitation for foreclosure rescue services in the mail. Many individuals who are behind in their loan payments on their home see this as an opportunity to get things back on track. The problem is, though, that it is a dangerous situation to put yourself in. Many people need options when it comes to getting caught up. Once you get one month or more behind on your mortgage payments, you are in serious trouble with getting caught up as well as getting out of foreclosure. So, what can a person in your situation do?

How Do They Work?

Many individuals do consider these foreclosure rescue services as an option. But, you’ll need to insure that you know just what they will do to you.

The service works like this.

· In many areas, the companies will find your name listed on public record information and will then contact you, so you usually won’t have to bother with trying to find them.

· Then, they will offer help. You give them ownership of your home and they will get your mortgage payments current.

· They will then pay off the mortgage all together.

· They may provide you with some small amount of money, say $500 or so.

· They may provide you with several months free rent. It is rent because they now own your home. After a time period, usually 18 months, you will have had to find new financing for the home or you will likely need to move out.

· If you do not find the financing, the company is likely to sell the home or to rent it to someone else.

This alternative lending to stop foreclosure is essential to helping many individuals stop themselves from losing their home.

But, if you do take this road, you’ll need to realize that you are actually giving up your home to them and you will possibly lose it if you can not secure credit to get a new loan in place in the given time period.

Although, they will help you to deal with the late payments on your mortgage and keep the home from entering foreclosure. If the home does enter it, you will lose the home unless you find another way to pay it off.

What’s worse in that situation is that you may actually find yourself without a home and with horrible credit anyway. So, in either case, you’ll need to take risks.

There are assistance loans out there that you may be able to tap into as well. For many who have decent credit, there may be a way to refinance the mortgage to lower the monthly payment or else try to get the loan caught up.

If you haven’t talked to your mortgage lender about options that they may be able to provide you with, do so as your first step. Then, use the web to find alternative types of lending opportunities for you. While foreclosure rescue services are one way to get through this difficult time, weigh your decision to do so wisely.

Author Resource: Susan Dean is the webmaster and publisher of: www.stop-house-foreclosure.com
Visit her site for help to stop foreclosure.

Article From RealEstateArticles4U.com

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