Matt Weidner – Fighting For The American People

Posts Tagged ‘reo’

Not so long ago in this country breaking into another person’s home would clearly have been a crime.

When law enforcement cared.  When those we elected to protect us cared. When Judges cared.

But that was long ago.  Before the banks, foreclosure mills and Wall Street criminals took over this country and trampled on the rights of any soul who dared cross them or get in their way.  Today we live in a much different world.  The banks and their agents are emboldened.  They fear no government official.  They fear no judge.  They are restrained by no law.

I have begun collecting terrifying examples of bank terror and will continue to publish the examples.  For starters, I want each of you to read the lawsuit I’ve just filed.  Read carefully the allegations made in the lawsuit, but most importantly read the report from the Charlotte County Sheriff’s Department.  Read the findings of fact.  Two thugs broke into a home, moved property around, helped themselves to a beer.  The thugs returned and boldly told their victims they would return to terrorize again.  Two visitors to our country were terrified.  Thousands of dollars in property was stolen.  But the Sheriff’s office can seem to find a crime here.

The thing that terrifies me most about the incidents described in this lawsuit is the fact that I have logged dozens of phone calls to various levels of authority within the Charlotte County Sheriff’s Office.  I have spoken with street officers, detectives, supervisors, even internal affairs.  My calls have been ignored.  I’m not sure if I’ve gotten high enough up the chain of command, but I’m going to keep working, keep calling and keep filing lawsuits until this issue gets the attention that it deserves.

Pay attention to the facts in this case and be appalled, but sit tight and stay tuned because as bad as the facts in this case are, I’ve got worse cases and am preparing to file additional cases with even more grotesque facts. If law enforcement, particularly our elected Sheriff will no longer protect us in our homes, who can we count on to protect our families?  When one of these lender break ins results in physical harm either in Charlotte County or in some other county across this country, law enforcement cannot stand by and say they were unaware of this phenomena.

complaintfiledtotal

Please share your examples with me.  We cannot stand by and allow these fundamental violations of rights to occur.  I hope that press picks up on these stories and that our elected officials and judges will wake up serve those they took an oath to protect.

One pesky government policy that has prevented reasonable sales of foreclosed properties has been a requirement that a new buyer cannot get FHA financing for a property until after the prior owner held it for three months.  The so called “seasoning” rule required an investor who purchased a home at a foreclosure auction to sit on it for three months after purchase before it could be flipped or sold to another party.

The rule had the effect of preventing many investors from entering the market because they did not want to carry these homes that long, preferring instead to buy them, fix them and turn around and sell them for a profit quickly.  The new rule change will now allow this to occur and it should bring buyers looking to flip properties back into the foreclosure market.

This is a positive development.  The full text of the rule can be found here.

As foreclosures in Pinellas County continue to increase, there is news that the Obama administration plans to announce a new campaign to pressure lenders to modifiy mortgages for borrowers.  This will come as welcome news to the many homeowners struggling to obtain a mortgage modification from their lender but who have hit a brick wall.

The Lucky 2000

Last month, an oversight panel created by Congress reported that fewer than 2,000 of the 500,000 loan modifications then in progress had bdecome permanent under the Making Homes Affordable Program.  The same report expects thousands of permanent modifications out of the more than 650,000 trial modifications that will then be in progress, but I frankly doubt we will seee that many.  That’s a dismal percentage when you consider that the federal government has poured $75 billion into the mortgage modification program.

For the full text of an article that appears in today’s New York Times, click here.

If you’re one of the thousands of homeowners in Pinellas or Hillsborough County struggling with attempts to obtain a mortgage modification or in foreclosure trouble, contact Matt Weidner at www.mattweidnerlaw.com

The Florida Legislature recently found that homeowners who are in default on their mortgages, in foreclosure, or at risk of losing their homes due to nonpayment of taxes may be vulnerable to fraud, deception, and unfair dealings with foreclosure-rescue consultants or equity purchasers.

In response, the Legislature passed Chapter 501.1377, The Foreclosure Rescue Fraud Prevention Act, (the full text can be found here) the intent of which is to provide a homeowner with information necessary to make an informed decision regarding the sale or transfer of his or her home to an equity purchaser. It is the further the intent of the law to require that foreclosure-related rescue services agreements be expressed in writing in order to safeguard homeowners against deceit and financial hardship; to ensure, foster, and encourage fair dealing in the sale and purchase of homes in foreclosure or default; to prohibit representations that tend to mislead; to prohibit or restrict unfair contract terms.

Under the law an “Equity purchaser” means a person who acquires a legal, equitable, or beneficial ownership interest in any residential real property as a result of a foreclosure-rescue transaction.

A “Foreclosure-rescue consultant” is a person who directly or indirectly makes a solicitation, representation, or offer to a homeowner to provide or perform, in return for payment of money or other valuable consideration, foreclosure-related rescue services.

And “Foreclosure-related rescue services” means any good or service related to, or promising assistance in connection with Stopping, avoiding, or delaying foreclosure proceedings concerning residential real property; or Curing or otherwise addressing a default or failure to timely pay with respect to a residential mortgage loan obligation.

Finally, “Foreclosure-rescue transaction” means a transaction by which residential real property in foreclosure is conveyed to an equity purchaser and the homeowner maintains a legal or equitable interest in the residential real property conveyed, including, without limitation, a lease option interest, an option to acquire the property, an interest as beneficiary or trustee to a land trust, or other interest in the property conveyed.

It is important for realtors, title agents, attorneys and especially homeowners to understand the new law and its broad application to just about any interaction between a homeowner and any party who provides any service to that homeowner.  For questions about the law or to determine whether the law applies to your conduct or any other party, you are encouraged to visit the website of the Florida Attorney General here.

1. Title Underwriters Are Going to Go Bankrupt

For as long as any of us can remember, we paid little attention to the title underwriter that was issuing title insurance right? Well those days are long gone.  All of the title underwriters are under extreme financial pressures caused by decline in new premiums and claims on old policies.  The vast majority of new policies being written are being written over foreclosure properties, REO’s and other properties that have a much greater risk of hidden problems and title claims.  Because of this we can expect extreme pressure on these companies and some just will not make it in the long run.  To protect your client, you need to take an active role in considering who will close your deals and you should go the extra step to confirm the title work with your agent.

2. You Must Take A Much More Active Role In Your Closing

The days of turning your contract over to the title company then waiting for your closing date are long over.  You need to be very proactive with your title agent, making sure that all bases are being covered and that all conditions and problems are being actively resolved from the moment the contract is signed.  The days where your involvement in closing was limited to reviewing the HUD when you arrived at the closing are long gone.  Develop a strong working relationship with your title agent and be actively involved in every step of the process.

3. Make Sure Your Listing Agreement and Sales Contracts Reflect The New Closing Realities

In previous postings, I have described where the FAR/BAR Short Sale Addendum is deficient, does not adequately protect sellers and may lead to complaints and litigation against realtors.  The reality is that every contract, from the listing agreement to the sales contract should be modified to reflect the inevitable delays, miscommunications and problems that are now a part of every closing.  If you do not, you can expect complaints and problems at some point in time.

4. Know Your Clients and Their Situation

Every listing agreement should contain explicit instructions that your client must notify you in writing if they are served with a foreclsoure lawsuit.  If they are served with a foreclosure suit, they must retain a local attorney who can properly defend the foreclosure.  Defending the foreclosure creates the space you and your clients need to help effectively negotiate a sale.  If your client fails to respond and a default is entered against them, you lose important negotiating power against the lenders.

5. Know All Parties That Are Involved in Your Closing

Clients these days are approached by all sorts of individuals and businesses who are offering to help them and in some cases take advantage of their situation.  Florida recently passed one of the toughest consumer protection statutes that makes most of these activities illegal and which subjects all parties involved in such transactions subject to penalties and fines.  You may be surprised at all the activities and made illegal, but as the professional involved in the transaction, you are responsible to know these details and take steps to protect your clients!  The text of the statute can be viewed here keep in mind that the language is drafted so broadly that many activities that were once permissible are now illegal.

These are challenging times in the industry and you need to work harder than ever to protect your clients and yourself.  Make sure you’re working with an attorney who knows this market and who can properly advise you.

Visit www.mattweidnerlaw.com

1. BEWARE THE FAR BAR SHORT SALE ADDENDUM!

The existing FAR/BAR short sale addendum is deficient in many respects but one section in particular poses real risks for real estate agents ad brokers who encourage their clients to sign the addendum as part of a sales contract.  Due to a glaring oversight in the language contained within the addendum, a situation could develop that will guarantee you will be faced with an unhappy client. In the worst case scenario, you could be subject to a complaint or litigation! Don’t sign another acceptance until you find out what this crucial problem is!

2. BEWARE THE SHORT SALE “FLIP” TRANSACTION!

It’s no secret that the only real action in this challenging economic environment are short sale transactions. Many agents are either knowingly or unknowingly getting involved in “flip” transactions where a second transaction for a higher price is on the table immediately behind the first transaction.  You need to be aware that in most cases, these transactions are fraught with liability for all parties involved and as the licensed professional, you’ve got the most to lose.

3. BEWARE OF PROVIDING YOUR CLIENTS LEGAL ADVICE!

If a client is behind on his mortgage they will look to you for advice.  Should they stop paying? What are the consequences of not paying or of a short sale?  What should they do if they get served with foreclosure?  You risk serious consequences for attempting to answer any of these questions and you will almost certainly be subject to liability if anything goes wrong.  Don’t make the mistake of crossing the line between trusted sales advisor and providing legal advice.  It complicates and interferes with the relationship you have worked to build and may work against getting your deal closed.

4. CLIENTS IN FORECLOSURE ABSOLUTELY MUST HIRE AN ATTORNEY!

So you’ve got a listing that you’ve been working on for days, weeks or months and you find out a foreclosure case has been filed against them…what should you do?  The most important thing you can do to protect your client’s interest in the property and your interest in the closing is to insist that your client hire an attorney.  Even if you’ve got a contract on the table or feel like you can get the home sold before a foreclosure sale occurs, you cannot risk the possibility that this might not happen.  Only an attorney properly licensed in the state can represent your client and the most effective attorney is one who practices before the local judges all the time.

5. BEWARE OF LOSS MITIGATORS, “SHORT SALE EXPERTS” AND OTHERS

Florida’s Foreclosure Rescue Fraud Act makes it a crime and subjects parties to fines of up to $25,000 for any party who takes any money or who engages in virtually any activity on behalf of a homeowner who is in foreclosure.  This law is very broad and applies to just about every conceivable interaction with a homeowner in foreclosure.  Don’t risk getting drawn into the wave of prosecutions and enforcement actions that are coming…carefully consider any party involved in your transactions and do not associate with parties who may be violating the Act.

These are tough and challenging times for everyone…protect yourself and your clients…work with an attorney who knows how to do both!

www.mattweidnerlaw.com