No one can charge a fee for service before they provide service!

This new law adds forensic loan audits to the existing law that prohibits anyone from charging an advance fee, even attorneys, for loan modifications or short sales or “offer to any homeowner to perform certain services relating to foreclosure sales and loan modifications.”  

No one can charge a fee for service before they provide the service.  They must first obtain a loan modification or provide the service and then charge.

New Law for forensic audits

 “A foreclosure consultant is any person who makes any solicitation, representation, or offer to any homeowner to perform certain services relating to foreclosure sales and loan modifications ("forbearance from any beneficiary or mortgagee"), including debt, budget, or financial counseling, and credit repair, for compensation.  There are certain exemptions under the law. A violation of the law can impose criminal penalties.

This new law adds forensic loan audits to the definition of services under the Mortgage Foreclosure Consultant law by adding CA Civil Code Section 2945.1(e)(9).  Amends Section 2945.1 of CA Civil Code.”

If you are interested in selling your home, please call me at (562) 916-3237.  I am a real estate broker with over 20 years experience as a Realtor.  I also have mobile Notary Public services available.

Aida Pinto

Real Estate Broker

Realtor since 1987

(562) 916-3237

Websites:

http://www.blogger.com/www.ReoLicensedSpecialist.com

http://shortsalediva.org/

Blogs:

Short Sale Diva' s on Blogger.com

Active Rain Blog

Short Sale Diva Face Book Fan Page

Pinto Realty Face Book Fan Page  

Disclaimer: This is not legal or tax or advise and this is solely for informational purposes, please consult with an attorney for legal matters or your tax accountant.  All information contained in this blog is current and careful attention to accuracies is taken but not guaranteed. 

If you have already decided to sell, I would be more than happy to assist you next real estate transaction. I am California Licensed Real Estate Broker, and have been in business for over 20 years in the Los Angeles County area.  I currently specialize in selling distressed properties in Los Angeles county such as:  REO, Foreclosures, and Short Sales.  Whether you have a distressed property or regular standard sale, I can help you with all your real estate needs.  I can also handle your Probate properties as well.  I am an expert in selling vacant homes owned by out-of- state owners, as well as tenant or owner occupied properties.

Please feel free to call me at 562-916-3237 should you have any further questions. © 2011

What is an REO?

What’s an REO?  REO is short for Real Estate Owned, and this is how lenders classify the properties they own after a foreclosure.  

When a Lender wants to sell their real estate holdings which they have acquired through foreclosure, they usually hire a local real estate broker to handle the marketing and sale of these properties.  They classify these foreclosed properties on their accounting books as REO (Real Estate Owned). 

The process of selling the lender’s REO inventory is different than selling a property that is a Short Sale, Divorce, Probate or Regular sale.  When selling an REO, once an offer is obtained, the Listing Real Estate Broker submits it for review to the lender’s Asset Manager; and, depending on the banks policy, the Asset Manager determines whether it’s an acceptable offer.  Some banks will want to see more than one offer, some only want to see the top three offers and others just want to see one—the highest net offer. 

How does an Asset Manager determine if the offer is a good offer? Well, first they don’t usually make their decision based on the offered price but off the HUD 1.  What is a Hud 1? It’s the document that is prepared by escrow for all sales.  The HUD 1 specially spells out all the cost associated with the sale and what the seller is going to net from the  REO sale. There are other factors involved when determining if your offer is a good or great or acceptable one.  If the lender wants the property off it’s books ASAP then they might be open to a lower offer if it’s all cash. An All Cash offer can close in as little as 7 days!

Why do lenders prefer a quick closing even if it means them getting less for the property? Some Lenders feel "Time is Money!" The longer the bank holds the property the more cost they incur, all the cost of the REO sale is paid by the lender. When an offer is contingent upon the buyer getting a loan—this delays the process. It could take as long as 60 days.  Some  REO lenders are in no hurry so they can wait out until a higher offer comes in, and will consider an offer with a financing contingency.

For most of my friends and clients who are not in the real estate business, some of the lingo used in real estate can be confusing.  I will try to clarify things for you, as much as possible; but if you still have questions after reading one of my blogs, please feel free to leave a comment or call me at 562-916-3237 email me at: PintoRealty@yahoo.com or TheShortSaleDiva@yahoo.com. I will be more than happy to answer any of your questions or you can connect with me on Face Book Pinto fan page or the Short Sale Diva fan page! 
Please continue to follow my blogs.  I will try to write more often.  

If you have any suggestions on topics you would like for me to write about, please feel free to make a comment or send me any email.  If you have enjoyed reading this or have learned something, please make a comment or push the like button and share it with your friends.  Also, please visit the advertisers who help me stay motivated to continue writing about the ins and outs and the ups and downs of the current real estate market.

Aida Pinto

Real Estate Broker

Realtor since 1987

<峼ੵ>(562) 916-3237

Websites:

www.ShortSaleDiva.org

www.ReoLicensedSpecialist.com

Blogs:

Active Rain Profile: http://activerain.com/blogs/aidapinto

Blogger.com Short Sale Diva' s Blog: http://shortsaledivasblog.blogspot.com/

Face Book Short Sale Diva Fan Page: http://www.facebook.com/pages/Downey-CA/Short-Sale-Diva/362371813208 © 2010

If you have already decided to sell, I would be more than happy to assist you next real estate transaction. I am California Licensed Real Estate Broker, and have been in business for over 20 years in the Los Angeles County area.  I currently specialize in selling distressed properties in Los Angeles county such as:  REO, Foreclosures, and Short Sales.  Whether you have a distressed property or regular standard sale, I can help you with all your real estate needs.  I can also handle your Probate properties as well.  I am an expert in selling vacant homes owned by out-of- state owners, as well as tenant or owner occupied properties.

Please feel free to call me at 562-916-3237 should you have any further questions. © 2011

Disclaimer: This is not legal or tax or advise and this is solely for informational purposes, please consult with an attorney for legal matters or your tax accountant.  All information contained in this blog is current and careful attention to accuracies is taken but not guaranteed. 

Why the rich stay rich and the poor pay the bill!

Even the treasury chief had to do a Short Sale!  This is why the rich stay rich and the poor pay the bill....

"Ex-Treasury chief Paulson loses $1 million on DC home"

The rich knows how the game is played and they play it well.  Most rich folks who were given the option to do a short sale took it without blinking an eye! 

They know that trying to keep a property that has loss so much value is ludicrous—they are the smart ones.

“The loss is not likely to have much impact on Paulson's net worth.....estimated to be as much as $700 million....”

“Perhaps his house had a treasury chief curse. His successor at the Treasury Department, Timothy Geithner, was unable to sell his five-bedroom New York home for $1.6 million....”

This is one thing I admire about rich people—they are not very emotional when it comes to letting go of a losing proposition.  Everyone knows that anyone that purchased a home or refinanced during the height of the real estate bubble (between 2005 and 2008) with a toxic loan is fighting an up hill battle.

If you are rich like Mr. Paulson, you have nothing to worry about.  Losing a million bucks to him is a drop in the bucket.  Yet, he knows well that it’s better to cut your losses now instead of later.

Forbearance Agreement VS a Loan Modification Agreement

Many have asked me: "What is a Forbearance Agreement?"

Well, first let me say that a forbearance agreement is not an "agreement." An agreement, by definition, is: "The act or fact of agreeing; harmony of opinion, action, or character...," well that's what Merriam Webster says. Agreeing means: "the act of coming to terms that are mutually beneficial."   Usually those forbearance agreements are one sided and only benefit the Lender. They are usually for three months and don't really resolve anything. It's like putting a band-aid on a wound that requires stitches.

If you are looking for a more permanent solution or stronger glue than a band-aid; you need a permanent loan modification with a reduction in the principal. If your loan principal doesn't get reduced, any other type of agreement is just a band-aid.

To ensure that you will be a permanent homeowner, you must get a loan modification that makes sense to you and not just to the lender. Most loan modifications that I have reviewed don't make sense--they only benefit the Lender and really is just a mask, and it's a flimsy mask to boot!

If you are not happy with the loan modification you were given and would like to know what other options you have, please feel free to call me at 562-916-3237 or email me at TheShortSaleDiva@yahoo.com. I hope this has been helpful, if it does please make a comment or press the like button.

Lenders CANNOT go after California homeowners after a short sale

Short Sale Law

That's worth repeating: "Lenders CANNOT sue California Homeowners after a short sale." Thanks to California Senate Bill 931 which takes effect on January 1, 2011.

As a Real Estate Broker, I try to keep up with all the new changes in real estate and more particular with the Short Sales. But, I have to admit that it can be very daunting even for a Short Sale Diva like myself. 

In doing research for this blog, I didn't really find as many blogs as I thought I would, but I did find a few like: "Some Peace of Mind for Short Sale Sellers," and a blog by Neil J. Rubenstein, Esq. addressing this new short sale law.  Although by Mr. Rubenstein's title: "NEW CALIFORNIA “SHORT SALE” LEGISLATION CREATES RISKS FOR LENDERS" it looks like Mr. Rubenstein is not on the homeowners side, and is making it sound like the lenders have a lot to lose by accepting a short sale. No, they have more to lose by doing a foreclosure than short sale. A short sale is a win-win situation for all parties.  I also found another blog on Active Rain, one of my favorite blogging sites.

If this new short sale law is confusing to you, don't worry! even pros get confused! I will try my best to help you get "un-confused!" Please read my other blogs here or on my Face book short sale diva fan page.

For those who don't know, in California we use a trust deed not a mortgages and there are two types of loans Non-Recourse* and Recourse loans. Non-Recourse loans secured by your residence are loans where a lender canNOT go after you if you default. Should the owner default on a Non-recourse loan, the only recourse the lender has is to take back the property, sell it and write off the losses. They CANNOT come after the owner for the difference (deficiency), that has always been and still is. Most Non-recourse loans are those used to purchase homes (not refinances--they are recourse loans).

This new short sale law is not about non-recourse loans, this new short sale law addresses recourse (refinanced) loans. What this new short sale law does is it changes how a recourse loan is treated. If the lender has agreed to a short sale, the lender cannot pursue the owner for any losses they incur. I think it's a good thing! This law was written because some lenders were misleading homeowners by allowing them to do a short sale and then trying to sue them for the difference or forcing them to sign a promissory note. Well, now Lenders cannot sue homeowners for any deficiency or losses.

Let me recap: the passing of California Senate Bill 931 (Short Sale law) will not allow the lender who has agreed to a short sale to later sue the homeowner for any losses they incur from a short sale. So the lender can't come after the owner regardless of whether the loan was purchase or a refinance.  In doing research for this blog I found other blogs that offer a lengthier explanation, and they also discuss loans that have been modify..."issue with those borrowers who have recently modified their loans which are in default, because they may have unknowingly converted their purchase money non-recourse loan to a fully recourse loan, and exposed themselves to a potential large deficiency judgment."  If you are interested in knowing more details about California foreclosure check out these other blogs!

With this new Short Sale Law those who modified their loans and then do a short sale there is no fear of the lender coming after you for the difference. What I must find out if there is an end date. I will do some more research. If I've confused you more with this blog, I sincerely apologize. Confusing you is not my intention but I can totally understand if you are. I get confused sometimes but not on this subject, Short Sales are a big part of my real estate business, and I strive to keep on top of all the changes.

If your property is located in the Los Angeles, Orange or San Fernando Counties, and you would like to speak to me directly about selling your property via a short sale, REO, regular/standard sale or probate, please call me at (562) 916-3237. I will be more than happy to answer any questions or if I don't have the answer--I have a team of Attorneys that I can ask.

CALL ME @ 562-916-3237

* Note: A non-recourse loan means that the lender's only recourse to recoup monies is from the sale of the property its self and not from the owner. (When you re-financed or modified, you turned your non-recourse loan into a recourse loan but with this new Short Sale law--there is no fear that the lender will pursue you.)

Aida Pinto

Real Estate Broker

Realtor since 1987

(562) 916-3237

Websites:

http://shortsalediva.org/

http://www.reolicensedspecialist.com/

Blogs:

Active Rain Blog

Short Sale Diva' s Blog on Blogger.com

Face Book "Short Sale Diva" Fan Page!

Pinto Realty on Face Book

Personal Blog: Chronicles of Aida

Disclaimer: I am not an attorney or tax accountant. The information in this blog post is for informational purposes ONLY and should not be constructed as legal or tax advise. Please consult with an attorney or your tax advisor to see how a short sale or foreclosure will affect you. If you have already consulted with an attorney or a tax accountant, and have decided that a short sale is your best option--I can help you sell your property. I can be reached at (562)916-3237 or email: mailto:TheShortSaleDiva@yahoo.com.

Los Angeles County Tax reassessment deadline

If your home has lost value, and whose hasn’t, you can apply to have your home reassessed so that your property taxes can be reduced.

The form that is used is called: Decline-in-value and can be obtain at the Los Angeles Tax assessors’ website Deadline to file your Decline-in-value is November 30th.

You will need two comparable properties that sold between Jan. 1, to March 30th.

Your 10 Digit Assessor’s Id number and Property Pin # both you can get from your Annual Property Tax Statement. Which you should have already received.

If you miss this deadline, you will have to wait until next year to file. You can file between June 1st to November 30th.

If this information has been helpful, please feel free to make a comment or if you need of sell your property in the Los Angeles County, call me I would love to help you. If you owe more than your property is worth, you can still sell through a “short sale!” and you won’t owe any taxes on the debt forgiven if you sell before 12-31-2012 or any deficiency judgment. Please see my “what is a short sale” on my website.

Please feel free to visit my websites:

http://shortsalediva.org/

http://www.reolicensedspecialist.com/

Or you can call me at (562) 916-3237!

This is not tax or legal advise and this is solely for informational purposes, please consult with an attorney for legal matters but if you have already decided to do a short sale, I would be more than happy to assist you with that. I am California Real Estate Broker for over 20 years and specialize in Short Sales and distressed properties. Please feel free to call me at 562-916-3237 should you have any further questions.

Sales Statistics for LOS ANGELES County CA

Realist's most recent sale date for this county is 11/16/2010

Single Family Residence

Oct 2010 # of Sales 3,636 Median Sale Price $330,000

Oct 2009 # of Sales 5,031 Median Sale Price $335,000

2010 YTD # of Sales 43,496 Median Sale Price $340,000

2009 Total of Sales 54,058 Median Sale Price $325,000


Please, remember that all real estate is local! And even the street your home is on can make a big difference in the price you get.

Pricing is one of the most crucial aspect in selling in today's distress market. While location, condition, and terms are still very important; what you price your property at can make a big difference in how quickly it sells. Any property will sell at the right price.

If you would like an accurate value for your property and need to sell I can prepare a CMA or BPO at no cost to you. Please feel free to call me at (562) 916-3237 or email me at: TheShortSaleDiva@yahoo.com or visit my website: www.ShortSaleDiva.org.