Recently there has been a flurry of inquiries from people over seas seeking to quickly buy residential property "in your area" priced in the $450,000-$650,000 range.
They request that you send them property information on these type homes for them to review via e-mail which is fine. Within two days they have selected one of the properties, want to pay cash, and want to close by the end of the month! They also provide you their financial planner's name and contact information to handle the funds transfer and request you recommend a local attorney to handle the escrow. This all sounds really good. Too good to be true?
Let the games begin. They will want to get the property under contract and transfer earnest money to the attorney's escrow account. They then decide to cancel and want money back which was really never there, thus basically seeking to rip off the attorneys' escrow account. These have popped up throughout the United States and an over excited agent could get taken in easily.
I was recently approached by these folks, sent them property information, received the "we must buy now" message and a request for an attorney to handle the escrow. Experience told me that this just seemed to be moving way too fast and seemed far too easy. I decided to do some investigating. Upon doing some research into the financial planner's firm, I uncovered the fact that this approach by these same "buyers" was in fact a scam. The financial planner was a fake name and I decided that no more of my time was to be spent with this, but I should take a few minutes to warn other real estate professionals.
Trulia has a lengthy series of comments from real estate professionals and their stories with this scam. Beware, be careful and do not fall for this creative scam. It could be very expensive.
Published on Monday, September 13, 2010 by Michael Davenport
About Me
- Effective Mortgage Company
- Northridge, CA, United States
- We are a full service mortgage brokerage with experience in the areas of mortgage lending, real estate and business. Our company has established relationships with many mortgage investors and banks to provide the best programs for your individual circumstances. We specialize in Conventional, Goverment, Investment, and Reverse Mortgage. We are experts regarding any FHA or VA (veteran) questions you may have. Post any questions or feel free to call our office 818-773-0033. If our clients don't fit into one of the many loan programs offered we promise to help them overcome the roadblocks that can stop them from securing a loan. When purchasing we suggest always getting a pre-approval early on to have ease of mind knowing what amount you will qualify for and make the loan process as smooth as possible.
Friday, September 24, 2010
Thursday, September 23, 2010
Up to 3.5% HomePath Buyer Incentive and $1,500 Selling Agent Bonus on HomePath Properties
Fannie Mae is offering buyers up to 3.5% in closing cost assistance and a $1,500 selling agent bonus on HomePath® properties. To be eligible for this incentive:
*Initial offers must be accepted on or after September 23, 2010
*Property sales must close on or before December 31, 2010, and close within 60 days of offer acceptance
*Buyers must be owner-occupants and confirm that the property will be used as their primary residence by completing a certification form (investors are excluded); and
*Selling agents must represent owner-occupant buyers purchasing a HomePath property to receive the $1,500 bonus and offers must be submitted on or after the effective date.
The incentive reinforces Fannie Mae's commitment to stabilizing communities and assisting buyers. For more information about the incentive, visit HomePath.com, read the press release, or contact a Fannie Mae listing broker.
Tuesday, September 21, 2010
House Bill Would Force Lenders to Decide on Short Sales in 45 Days
Distressed homeowners looking for a way out of their mortgage that doesn’t involve foreclosure may find relief is on the way from a new bill introduced in the U.S. House.
The legislation would impose a deadline on lenders to respond to short sale requests, requiring them to return an answer to the borrower within 45 days.
The bipartisan bill, Prompt Decision for Qualification of Short Sale Act of 2010 (H.R. 6133), is sponsored by Reps. Robert Andrews (D-New Jersey) and Tom Rooney (R-Florida).
Lenders have taken a lot of heat for the elongated timelines it takes to get an approval on a short sale proposal.
“I have heard from many short sellers in Florida whose potential homebuyers have walked away because they couldn’t get a ‘yes’ or ‘no’ from their lenders,” Rep. Rooney said. “This bill would spur growth in the housing market by helping sellers and buyers complete short sales quickly.”
The number of potential short sale properties is rising across the country. According to data from the National Association of Realtors (NAR), in the second quarter of
2010, Nevada, California, Florida, and Arizona are states where significant shares of all properties on the market are potential short sales: 32 percent, 28 percent, 27 percent, and 24 percent, respectively.
NAR President Vicki Cox Golder, owner of Vicki L. Cox & Associates in Tucson, Arizona, says her organization and Realtors across the country strongly support the Andrews-Rooney bill, and are urging Congress to pass the legislation quickly.
“Unfortunately, homeowners who need to execute a short sale are severely hampered because lenders (loan servicers) are unable to decide whether to approve a short sale within a reasonable amount of time,” Golder said.
“Potential homebuyers are walking away from purchasing short sale property because the lender has taken many months and still not responded. Many consumers have mentioned that the delay in short sale price approval exceeds 90 days, and in many cases never arrives,” Golder said.
According to Rep. Rooney, the lending community has worked to improve the size and training of their workforce that handles short sales, but “progress has been extremely slow,” he says.
Rooney argues that for homeowners who owe more than their home is worth and are in real danger of losing their home, the short sale can help relieve them of the overwhelming financial burden of their mortgage.
Golder agrees. “NAR believes that quicker attention to the short sales process is vital to help homeowners who are underwater and their communities, as well as the nation’s economy,” she said.
The legislation would impose a deadline on lenders to respond to short sale requests, requiring them to return an answer to the borrower within 45 days.
The bipartisan bill, Prompt Decision for Qualification of Short Sale Act of 2010 (H.R. 6133), is sponsored by Reps. Robert Andrews (D-New Jersey) and Tom Rooney (R-Florida).
Lenders have taken a lot of heat for the elongated timelines it takes to get an approval on a short sale proposal.
“I have heard from many short sellers in Florida whose potential homebuyers have walked away because they couldn’t get a ‘yes’ or ‘no’ from their lenders,” Rep. Rooney said. “This bill would spur growth in the housing market by helping sellers and buyers complete short sales quickly.”
The number of potential short sale properties is rising across the country. According to data from the National Association of Realtors (NAR), in the second quarter of
2010, Nevada, California, Florida, and Arizona are states where significant shares of all properties on the market are potential short sales: 32 percent, 28 percent, 27 percent, and 24 percent, respectively.
NAR President Vicki Cox Golder, owner of Vicki L. Cox & Associates in Tucson, Arizona, says her organization and Realtors across the country strongly support the Andrews-Rooney bill, and are urging Congress to pass the legislation quickly.
“Unfortunately, homeowners who need to execute a short sale are severely hampered because lenders (loan servicers) are unable to decide whether to approve a short sale within a reasonable amount of time,” Golder said.
“Potential homebuyers are walking away from purchasing short sale property because the lender has taken many months and still not responded. Many consumers have mentioned that the delay in short sale price approval exceeds 90 days, and in many cases never arrives,” Golder said.
According to Rep. Rooney, the lending community has worked to improve the size and training of their workforce that handles short sales, but “progress has been extremely slow,” he says.
Rooney argues that for homeowners who owe more than their home is worth and are in real danger of losing their home, the short sale can help relieve them of the overwhelming financial burden of their mortgage.
Golder agrees. “NAR believes that quicker attention to the short sales process is vital to help homeowners who are underwater and their communities, as well as the nation’s economy,” she said.
Friday, September 10, 2010
Homeowners who are upside down on their mortgage may still be able to refinance
Many homeowners are not aware of the special “Home Affordable Refinance Program (HARP)” offered through the government. HARP provides a refinance option to homeowners who owe more on their mortgage than their home is worth. This is great news for homeowners that are upside down on their mortgage who would like to take advantage of the current record-low mortgage rates.
Eligibility requirements for a refinance through HARP include:
• The loan on your property is owned or guaranteed by Fannie Mae or Freddie Mac.
• The amount you owe on your first mortgage does not exceed 125% of the current market value of your property.
NOTE: Some lenders may require a lower percentage.
• You are the owner-occupant of a one- to four-unit home.
• Your mortgage payments are current, at the time you apply.
• The refinance improves the long term affordability or stability of your loan.
Eligibility requirements for a refinance through HARP include:
• The loan on your property is owned or guaranteed by Fannie Mae or Freddie Mac.
• The amount you owe on your first mortgage does not exceed 125% of the current market value of your property.
NOTE: Some lenders may require a lower percentage.
• You are the owner-occupant of a one- to four-unit home.
• Your mortgage payments are current, at the time you apply.
• The refinance improves the long term affordability or stability of your loan.
Tuesday, August 17, 2010
Tax Credit Extension for Service Members
The $8,000 tax credit for first-time home buyers and the $6,500 tax credit for repeat home buyers have expired. However, service members who were on official extended duty outside of the United States for at least 90 days between Jan.1, 2009 and May 1, 2010, may qualify for a one-year extension.
For home purchases where a binding sales contract was signed by April 30, 2010, otherwise qualified buyers now have until September 30, 2010 to complete the purchase. Congress has extended the closing date to provide buyers who had binding sales contracts in place by April 30, 2010, additional time to complete their purchases.
For home purchases where a binding sales contract was signed by April 30, 2010, otherwise qualified buyers now have until September 30, 2010 to complete the purchase. Congress has extended the closing date to provide buyers who had binding sales contracts in place by April 30, 2010, additional time to complete their purchases.
Thursday, August 12, 2010
How your credit score is calculated and tips to help keep it in good standing
A recent report by FICO shows more than 25% of Americans have a credit score lower than 599. With a credit score that low, it makes it very difficult to take advantage of the current record-low interest rates. Below are the main factors, and the percentage of importance of each, that are used to determine your credit score.
1. Payment history = 35% – The most important thing is to pay your bills on time.
2. Amounts owed = 30% – This is the amount of money you owe versus the amount of credit you have available to you. A 20% debt-to-credit limit ratio is optimal.
3. Credit history = 15% – It’s better to keep old credit accounts than to close them.
4. New credit = 10% – Don’t apply for new credit without a good reason.
5. Credit mix = 10% – Try having a good mix of credit, such as credit cards, retail accounts, mortgage, installment loans, and consumer finance accounts.
1. Payment history = 35% – The most important thing is to pay your bills on time.
2. Amounts owed = 30% – This is the amount of money you owe versus the amount of credit you have available to you. A 20% debt-to-credit limit ratio is optimal.
3. Credit history = 15% – It’s better to keep old credit accounts than to close them.
4. New credit = 10% – Don’t apply for new credit without a good reason.
5. Credit mix = 10% – Try having a good mix of credit, such as credit cards, retail accounts, mortgage, installment loans, and consumer finance accounts.
Wednesday, July 7, 2010
Top 7 Tips for Using Credit Cards
1. Avoid paying debt at 17%
Credit cards can be very useful if you are able to pay off the balance. However, when you start paying interest at 17%, the advantages are easily outweighed by the very high interest payments. Therefore, always seek to pay off the balance and avoid these rates of interest. These are the best strategy’s for avoiding paying credit card debt interest.
* Avoid overspending. – Don’t get carried away, just because you are paying with plastic rather than cash.
* Transfer the debt to a lower interest paying loan like mortgage or personal loan.
* Don’t see credit cards as a way of borrowing. See it as a convenient way of borrowing.
2. Pay Electronically at latest date.
Many credit card companies give you up to 6 weeks to pay for your balances. When your statement arrives often you do not need to pay for 3 weeks. It is tempting to pay the account straight away. However, if you are short on cash, you can leave the payment until nearer the payment date. If you do pay close to the deadline make sure you:
* pay electronically for guaranteed payment (don’t rely on the post)
* Make sure you are not going to forget.
3. How to Deal with Missed Payment
If you don’t have a direct debit for minimum payment and you miss a payment by accident you should contact your credit card company as soon as possible. If you pay it as soon as you realize it may not incur a penalty for your credit rating. However, if is more than a few weeks late then it will count as a negative rating. In this case, the best thing to do is to try and challenge the negative rating. You could try write to the bank and apologize, saying it got lost in the post. If it is your first time they may agree to write off the negative credit rating
4. Use one Card for Collecting Points
Choose one credit card to put the majority of your spending on. It is best to choose a card that has an attractive points / reward system. This credit card you should always pay off at the end of the month.
5. Use 6 Month Interest Free offers
Many credit card companies seek to entice new customers through offering introductory periods of 0% interest. This can be very beneficial for consumers of credit cards. Personally I like to choose cards with 12 months interest free. They may charge a 2% balance transfer fee. But, this equates to only a 2% interest rate – you can probably get a better rate on savings. These 6 month interest free periods are ideal for dealing with periods of temporary cash shortfalls. It is a much preferable alternative than paying interest at 17%, the standard rate for some cards
6. Don’t overdo 6 month interest free cards.
It is tempting to take out as many interest free credit cards and invest the money elsewhere. However, I would definitely advise against this. Credit card companies are increasingly taking a dim view of people who do this. You may find it difficult to get cards in the future. The small gain of making 2% interest profit is not worth the negative standing with credit card companies.
7. Set Up Direct Debit to Pay Minimum monthly payment.
This means you will never miss the payment and is the easiest way to make sure you don’t damage your credit rating. Of course, you should try to pay the whole amount off. But, the main benefit of doing this is that you don’t need to worry about a missed payment which is very damaging for your long term benefit.
Credit cards can be very useful if you are able to pay off the balance. However, when you start paying interest at 17%, the advantages are easily outweighed by the very high interest payments. Therefore, always seek to pay off the balance and avoid these rates of interest. These are the best strategy’s for avoiding paying credit card debt interest.
* Avoid overspending. – Don’t get carried away, just because you are paying with plastic rather than cash.
* Transfer the debt to a lower interest paying loan like mortgage or personal loan.
* Don’t see credit cards as a way of borrowing. See it as a convenient way of borrowing.
2. Pay Electronically at latest date.
Many credit card companies give you up to 6 weeks to pay for your balances. When your statement arrives often you do not need to pay for 3 weeks. It is tempting to pay the account straight away. However, if you are short on cash, you can leave the payment until nearer the payment date. If you do pay close to the deadline make sure you:
* pay electronically for guaranteed payment (don’t rely on the post)
* Make sure you are not going to forget.
3. How to Deal with Missed Payment
If you don’t have a direct debit for minimum payment and you miss a payment by accident you should contact your credit card company as soon as possible. If you pay it as soon as you realize it may not incur a penalty for your credit rating. However, if is more than a few weeks late then it will count as a negative rating. In this case, the best thing to do is to try and challenge the negative rating. You could try write to the bank and apologize, saying it got lost in the post. If it is your first time they may agree to write off the negative credit rating
4. Use one Card for Collecting Points
Choose one credit card to put the majority of your spending on. It is best to choose a card that has an attractive points / reward system. This credit card you should always pay off at the end of the month.
5. Use 6 Month Interest Free offers
Many credit card companies seek to entice new customers through offering introductory periods of 0% interest. This can be very beneficial for consumers of credit cards. Personally I like to choose cards with 12 months interest free. They may charge a 2% balance transfer fee. But, this equates to only a 2% interest rate – you can probably get a better rate on savings. These 6 month interest free periods are ideal for dealing with periods of temporary cash shortfalls. It is a much preferable alternative than paying interest at 17%, the standard rate for some cards
6. Don’t overdo 6 month interest free cards.
It is tempting to take out as many interest free credit cards and invest the money elsewhere. However, I would definitely advise against this. Credit card companies are increasingly taking a dim view of people who do this. You may find it difficult to get cards in the future. The small gain of making 2% interest profit is not worth the negative standing with credit card companies.
7. Set Up Direct Debit to Pay Minimum monthly payment.
This means you will never miss the payment and is the easiest way to make sure you don’t damage your credit rating. Of course, you should try to pay the whole amount off. But, the main benefit of doing this is that you don’t need to worry about a missed payment which is very damaging for your long term benefit.
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