Wednesday, January 28, 2009
Avoid Bold Opinionated Colors
Dear Sue,
I read your article in the Roseville paper this week about loan modifications. I recently went to the DRE Web site you suggested and could not find anything on modifications. Can you help me regarding this? I went to the search engine and typed in modification licenses. I could be looking in the incorrect area. I have two loan companies I am currently looking at to re-modify my loan. Mile Stone Capital and HFC foreclosure solutions in New Jersey.
Thank you,
Modifying Milly
Dear Milly,
Go to the www.dre.ca.gov‡Home Buying & Mortgages‡Mortgage Quick Links‡Advance Fees/Loan Modification‡Advance Fee Agreement Listing.
If you want to try it in one step, here is the direct link:
http://www.dre.ca.gov/mlb_adv_fees_list.html
In my opinion this link was a little buried considering how relevant loan modifications have become in the current market.
As you navigate through the DRE web site you will find other informative material. Just let me emphasize that if an advanced fee is required, choose a loan-modification company from the list. I would also suggest consulting your CPA and/or attorney. Good Luck!
Dear Sue
My wife and I are getting ready to sell our home. We are lucky because we still have some equity. Our home is fifteen years old. It was new when we bought it and it’s in pretty good shape.
My wife and I are at odds as usual. We disagree about most things. That is a big reason that we are in the process of a divorce. She thinks we should just sell it “as is” and not put money (since we don’t have any) into any cosmetic fixes but I say we should borrow money and put it in to top condition.
Is it still true that top condition gets top dollar?
Soon to be Divorced Sam
Dear Sam
I am sorry to hear about your divorce. In spite of all of the distressed property sales, it is still true that properties in top condition net top dollar.
The single most important thing one can do happens to be the least expensive. Clean. Clean. Clean. That includes de-cluttering and using a toothbrush on the grout. Make it shine!
The second most important thing you can do is paint.
Everyone responds in a positive way to something that is fresh and clean.
If you choose to paint, keep your color choices subtle. Pick colors that create the warming effect that buyers want to feel in a home. Stay away from bold opinionated colors.
To make the best out of a bad situation I would suggest getting the help of friends and family (assuming they can all be in the same room together) to help with what probably appears to be an overwhelming job.
Before you begin, I would suggest having an independent person look at your home with buyer’s eyes. Ask them to give you unbiased suggestions. Following them can be a matter of good Home $$’s and Sense.
I read your article in the Roseville paper this week about loan modifications. I recently went to the DRE Web site you suggested and could not find anything on modifications. Can you help me regarding this? I went to the search engine and typed in modification licenses. I could be looking in the incorrect area. I have two loan companies I am currently looking at to re-modify my loan. Mile Stone Capital and HFC foreclosure solutions in New Jersey.
Thank you,
Modifying Milly
Dear Milly,
Go to the www.dre.ca.gov‡Home Buying & Mortgages‡Mortgage Quick Links‡Advance Fees/Loan Modification‡Advance Fee Agreement Listing.
If you want to try it in one step, here is the direct link:
http://www.dre.ca.gov/mlb_adv_fees_list.html
In my opinion this link was a little buried considering how relevant loan modifications have become in the current market.
As you navigate through the DRE web site you will find other informative material. Just let me emphasize that if an advanced fee is required, choose a loan-modification company from the list. I would also suggest consulting your CPA and/or attorney. Good Luck!
Dear Sue
My wife and I are getting ready to sell our home. We are lucky because we still have some equity. Our home is fifteen years old. It was new when we bought it and it’s in pretty good shape.
My wife and I are at odds as usual. We disagree about most things. That is a big reason that we are in the process of a divorce. She thinks we should just sell it “as is” and not put money (since we don’t have any) into any cosmetic fixes but I say we should borrow money and put it in to top condition.
Is it still true that top condition gets top dollar?
Soon to be Divorced Sam
Dear Sam
I am sorry to hear about your divorce. In spite of all of the distressed property sales, it is still true that properties in top condition net top dollar.
The single most important thing one can do happens to be the least expensive. Clean. Clean. Clean. That includes de-cluttering and using a toothbrush on the grout. Make it shine!
The second most important thing you can do is paint.
Everyone responds in a positive way to something that is fresh and clean.
If you choose to paint, keep your color choices subtle. Pick colors that create the warming effect that buyers want to feel in a home. Stay away from bold opinionated colors.
To make the best out of a bad situation I would suggest getting the help of friends and family (assuming they can all be in the same room together) to help with what probably appears to be an overwhelming job.
Before you begin, I would suggest having an independent person look at your home with buyer’s eyes. Ask them to give you unbiased suggestions. Following them can be a matter of good Home $$’s and Sense.
Thursday, January 22, 2009
Referral Fees and Foreclosures
Dear Sue,
My cousin, whom I have always liked, recently got into real estate. I think that he is a really good guy so I felt comfortable referring my good friend from work. My friend bought a house through him and raved about him.
Since that escrow worked out so well, I thought about referring other people I knew. Since this was going to take up some of my time, I asked my cousin if he could give me referral fees for sending him clients. It seemed like it would be a win-win for both of us.
He told me that it was illegal. I have never heard of such a thing. Is he just being stingy or is this true?
Skeptical Sally
Dear Sally,
Are you a licensed broker? Are you a licensed real estate agent that has your license with a licensed broker? Were you the buyer or seller in the transaction?
If the answer is yes to anyone of the above, you may receive a referral fee, otherwise your cousin is correct. It is illegal.
A real estate agent is prohibited by law to pay a non-licensed person a referral fee unless that person is a principal in the real estate transaction.
The law further states that a real estate licensee cannot pay a referral fee directly to another real estate agent because commissions must be paid through real estate brokers.
Regarding the referral fee, your cousin’s hands are tied. Why not refer to him simply because he provides good service?
Dear Sue,
I never thought that I would be one of those losing their home. I feel like such a loser!
I lost my job last year and have been using up my savings to make my house payments and pay my bills.
It looks like I made a big mistake trying to hang on to my home while its value was declining. When I asked my real estate agent what she thought my home was worth, I discovered that I no longer have any equity.
Foreclosure is looming. I have heard about all kinds of new foreclosure laws but I need to know where to go for the facts.
Please advise!
Destitute Debbie
Dear Debbie,
The current housing crisis is affecting almost everyone! Many hard working, highly principled and well- intentioned individuals are suffering. Try not to define yourself by these hard economic times.
The best thing that you can do is arm yourself with knowledge and seek the advice of a trusted attorney.
The foreclosure laws were modified in September of 2008. California has implemented special timelines for loans originated between 2003 and 2007. For specific information and how these new laws pertain to you, I again recommend that you consult your attorney. It is a matter of good Home $$’s and Sense.
My cousin, whom I have always liked, recently got into real estate. I think that he is a really good guy so I felt comfortable referring my good friend from work. My friend bought a house through him and raved about him.
Since that escrow worked out so well, I thought about referring other people I knew. Since this was going to take up some of my time, I asked my cousin if he could give me referral fees for sending him clients. It seemed like it would be a win-win for both of us.
He told me that it was illegal. I have never heard of such a thing. Is he just being stingy or is this true?
Skeptical Sally
Dear Sally,
Are you a licensed broker? Are you a licensed real estate agent that has your license with a licensed broker? Were you the buyer or seller in the transaction?
If the answer is yes to anyone of the above, you may receive a referral fee, otherwise your cousin is correct. It is illegal.
A real estate agent is prohibited by law to pay a non-licensed person a referral fee unless that person is a principal in the real estate transaction.
The law further states that a real estate licensee cannot pay a referral fee directly to another real estate agent because commissions must be paid through real estate brokers.
Regarding the referral fee, your cousin’s hands are tied. Why not refer to him simply because he provides good service?
Dear Sue,
I never thought that I would be one of those losing their home. I feel like such a loser!
I lost my job last year and have been using up my savings to make my house payments and pay my bills.
It looks like I made a big mistake trying to hang on to my home while its value was declining. When I asked my real estate agent what she thought my home was worth, I discovered that I no longer have any equity.
Foreclosure is looming. I have heard about all kinds of new foreclosure laws but I need to know where to go for the facts.
Please advise!
Destitute Debbie
Dear Debbie,
The current housing crisis is affecting almost everyone! Many hard working, highly principled and well- intentioned individuals are suffering. Try not to define yourself by these hard economic times.
The best thing that you can do is arm yourself with knowledge and seek the advice of a trusted attorney.
The foreclosure laws were modified in September of 2008. California has implemented special timelines for loans originated between 2003 and 2007. For specific information and how these new laws pertain to you, I again recommend that you consult your attorney. It is a matter of good Home $$’s and Sense.
Wednesday, January 14, 2009
Beware of Loan Mod Scams!
Dear Sue,
I have a great job and a wonderful family. My husband and I both worked to pay the mortgage on our beautiful home.
He passed away three years ago. Since then I have been taking money from our savings to make the payments.
I worked through an on-line loan modification company and was turned down. It was suggested that I sign a deed in lieu of foreclosure. I couldn’t believe that my only recourse was to give up my home. I simply signed my home over to the lender. We not only had a lot of years in our home, we also put a lot of money into it.
Within weeks the lender turned around and sold our house for half of the loan balance. I am furious!
I could have easily kept our home if I had been given the opportunity to have it for half of what I owed.
I checked with my attorney to see if I had any legal recourse. It seems as if I don’t.
How do I go about finding out if the loan-modification company is legitimate?
Furious Fran
Dear Fran,
First it’s important that you understand that lenders are ill prepared for the onslaught of loan modification requests. They are inexperienced and under staffed and are being forced to learn as they go.
Loan modification companies that negotiate short sales, various modifications to the loans, short sale refinances, stream- lined refinance loans and every other type of rescue plan, are popping up everywhere.
Beware! Many of these companies are unlicensed scam artists! Check the company out through the Department of Real Estate. Be particularly cautious if the company is asking for fees in advance.
A legitimate loan modification company is required to be licensed. If they collect advance fees they must have approval from DRE. Go online to dre.ca.gov and search for the list of all approved loan modification companies.
No matter whom you are working with, always consult your attorney before signing anything! It’s a matter of good Home $$s and Sense!
I have a great job and a wonderful family. My husband and I both worked to pay the mortgage on our beautiful home.
He passed away three years ago. Since then I have been taking money from our savings to make the payments.
I worked through an on-line loan modification company and was turned down. It was suggested that I sign a deed in lieu of foreclosure. I couldn’t believe that my only recourse was to give up my home. I simply signed my home over to the lender. We not only had a lot of years in our home, we also put a lot of money into it.
Within weeks the lender turned around and sold our house for half of the loan balance. I am furious!
I could have easily kept our home if I had been given the opportunity to have it for half of what I owed.
I checked with my attorney to see if I had any legal recourse. It seems as if I don’t.
How do I go about finding out if the loan-modification company is legitimate?
Furious Fran
Dear Fran,
First it’s important that you understand that lenders are ill prepared for the onslaught of loan modification requests. They are inexperienced and under staffed and are being forced to learn as they go.
Loan modification companies that negotiate short sales, various modifications to the loans, short sale refinances, stream- lined refinance loans and every other type of rescue plan, are popping up everywhere.
Beware! Many of these companies are unlicensed scam artists! Check the company out through the Department of Real Estate. Be particularly cautious if the company is asking for fees in advance.
A legitimate loan modification company is required to be licensed. If they collect advance fees they must have approval from DRE. Go online to dre.ca.gov and search for the list of all approved loan modification companies.
No matter whom you are working with, always consult your attorney before signing anything! It’s a matter of good Home $$s and Sense!
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