Don’t Fall Victim to the 5 Most Dangerous Mortgage Relief Scams!

 Easy Cash! …  Quick Fix! … Guaranteed!

Three of the most common tag lines used by scammers involved in some type of Mortgage Relief Fraud. Unfortunately, the mortgage crisis opened the door for fraudsters to take advantage of homeowners in distress. This is more common than people realize because the fraud is so well disguised and can seem legitimate. This is an easy area for unscrupulous people to take advantage of others because most distressed homeowners are desperate to save their homes or at least avoid foreclosure and the ramifications to their finances and their lives. It’s hard for a homeowner in a desperate situation to know who to trust and where to turn.

Recently in Florida several individuals were arrested once it was discovered that they were involved in defrauding struggling homeowners under the name of “Home Owners Protection Economics, Inc.” or HOPE, a company specifically designed to mimic a real organization called HOPE NOW, a legitimate organization providing assistance. These guys were taking thousands of dollars up front claiming they were authorized by the lender and telling them they had already been approved for a loan modification.

In New York a law suit has been filed against companies who have defrauded homeowners out of tens of thousands of dollars by promising homeowners loan modifications and lower house payments in return for thousands of dollars up front. It’s unfortunate, but there are stories like these to be told in every state in the nation.

For people in this situation, the best way to avoid the most common types of Mortgage Relief Fraud is by consulting with a professional. If you or someone you know is in this situation, don’t be the next victim. Read the report I am offering free of charge and contact a knowledgeable professional for more details.

The following 5 types of Fraud are among some of the topics covered in the free report:

1.The up front charge – Any time there is a fee paid up front there is a real good chance there is fraud involved. There is no reason for anyone in this situation to be paying fees up front for a service that has not even been completed.

2. Guarantees – There is no guarantee of a certain outcome, there are too many variables.

3. Posing as a charity or government official – This is a common fraud tactic. Talk to your lender.

4. Asking you to transfer the deed to the property – If anyone is ever asked to transfer the deed to their property while still on the hook for the loan against the property that is a HUGE Red Flag!

5. Asking you to stop contacting your lender – You should have the right to contact your lender any time throughout the process of any attempt to avoid foreclosure, whether a short sale, loan mod, or other type of foreclosure avoidance. Be in contact with your lender and stay informed.



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Do I Short Sale my House or Stay and tough it out?

“Should I stay, or should I go now?”

A question many distressed homeowners are asking every day is, “Should I Short Sale my home? Try to stick it out? or Let it go to Foreclosure?”

The decision to stay with an over mortgaged home or go on to a fresh start is complicated. The complications include financial factors such as possible deficiency judgments, bankruptcy and credit rating scores, as well as more personal factors such as family, neighbors, friends, and schools. Some under-water property owners are choosing to stay in their homes because they believe that the market will rebound, or that the market will somehow refund the losses that they have taken.

How long are you able to stay with your home hoping the value will recover? For some, making payments on an expensive mortgage is just throwing good money after bad. As an alternative, should you consider a short sale, loan modification, or foreclosure?

Here are a few helpful questions to help gain perspective:

  1. Do I have a legitimate Hardship that qualifies for a Short Sale or loan mod?
  2. If the Hardship is legit, am I better off to attempt a loan mod to stay in a property where I owe more than it’s worth or is it better to get out from under it and start fresh?
  3. What is the impact on my credit of a Short Sale vs. Foreclosure?
  4. What is the possibility of ending up with a Deficiency Judgement with a Short Sale vs a Foreclosure?
  5. What will the tax consequences be with a Short sale, loan mod, or foreclosure?

Should I stay or should I go? For an increasing number of borrowers, the numbers say … GO!

For assistance to answer these and any other questions you may have for your personal situation feel free to contact me any time. I am also glad to provide current market value info for your property if that would help your decision making process.

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Posted by on January 17, 2013 in Short Sales


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Assessed value of Colorado property declines

According to the Denver Post
assessed value of Colorado Properties declined in 2010 for the first time since real estate troubles in the 1980’s, and residential properties are expected to plummet another 10.4% in 2011. In the 80’s the oil bust and the savings-and-loan collapse were blamed for the decline in real estate values. As we enter the second decade in the 21st century, the culprits are “The sustained high level of foreclosures, economic downturn and tight mortgage financing market have put downward pressure on home prices throughout Colorado” the Report said. As we work our way through the difficulties associated with high unemployment, lethargic economy, and declines in real estate values, more and more families are finding themselves in trouble on their mortgages. Many distressed homeowners find that they are not able to make the mortgage payment which they once qualified for, either because of job loss, curtailment of income, high debt, or medical issues. To boot, their property is no longer worth as much as they owe, making it difficult to even sell just to get out from under it. In some of these situations, depending on their particular scenario, the homeowner may be able to qualify for a loan modification we all continue to hear so much about. Unfortunately, according to most of the professionals who are attempting to help people obtain a modification or workout program so they can stay in their home, it is a very small percentage of borrowers who are getting the permanent solution they are looking for approved by their lenders. For the rest, a Short Sale is a much better alternative to at least avoid Foreclosure and the aftermath of life after Foreclosure. That is where we come in. As a Certified Distressed Property Expert, my first consultation with a Distressed Homeowner is designed to help them determine if their situation may qualify them for a loan modification or one of the other alternatives to stay in their home. If we agree they should try to keep their home, I have experienced professionals who will give them the best possibility of keeping their home, by assisting the homeowner in compiling all of the critical information and documentation necessary, as well as negotiating on their behalf with the lender(s). In the event that they are not able to keep the property, my team and I have a proven system and track record to successfully sell the property for what it is worth in today’s real estate market, and negotiate the short pay with their lender. A Short Pay involves the mortgage lender(s) on the property agreeing to accept less than the full principal balance of the loan, the net proceeds from the Short sale, and release the lien on the property so it can be sold to avoid foreclosure.

Read more: Assessed value of Colorado property declines – The Denver Post
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Posted by on December 26, 2010 in Short Sales


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Short Sales may become an even better alternative on April 5th

There has been a great deal of variety and unknowns in the Short Sale process as each Servicer, Investor, Mortgage Insurance company, etc. involved in the process has a different way of processing, reviewing, and approving the transaction. The timeframes and results vary from one transaction to the next,  many times even with the same lender or Servicing company.

On April 5, 2010 a new program takes effect under the Home Affordable Modification Program (HAMP), the Home Affordable Foreclosure Alternatives program (HAFA). The intent is to provide incentives to the parties involved in the process to more effectively and efficiently implement options to avoid Foreclosure,  such as Short Sales. One of the intended effects is to bring uniformity to the process so there are less unknowns, hence a more attractive option to be considered by Homeowners in Distress, Buyers, and Realtors. If they meet their objectives, the process which has taken weeks or months in the past will be accomplished within 10 days.

So what are the rules? The rules are set by the new Home Affordable Foreclosure Alternatives (HAFA) Program, which seeks to find alternatives when a borrower cannot qualify for a modification under HAMP rules, because they don’t have enough income. Both short sales and deed-in-lieu of foreclosure will be options. In a deed-in-lieu of foreclosure the homeowner turns the keys over to the bank without the need for a foreclosure and the bank agrees to accept them without seeking any funds for a short fall when the home finally sells.

If a borrower is not eligible for a HAMP modification, then the bank will use the information gathered during the HAMP process so they don’t need to do additional eligibility analysis. The borrower will get a pre-approved set of terms for the short sale before the property is listed, which means the potential buyers won’t have to wait weeks or months for an answer from the bank. The bank is also required to fully release the borrower from any future liability for the debt.

For short sale offers where there isn’t a pre-approved set of terms, banks must respond to an offer in 10 days. However, I have not been able to find anyone who is sure when that 10-day count begins. Is it when the contract is offered or when all paperwork required by the bank has been submitted? We suspect banks will find ways to stall their answers. “It’s a cumbersome process. It will take a couple of months at least, to see what the lenders will actually do with this program.
To be eligible for help under HAFA rules:

  • The property must be the borrower’s principal residence;
  • The mortgage loan must be a first lien mortgage originated on or before January 1, 2009;
  • The mortgage is delinquent or default is reasonably foreseeable;
  • The current unpaid principal balance is equal to or less than $729,7501; and
  • The borrower’s total monthly mortgage payment exceeds 31 percent of the borrower’s gross income.


The HAFA program simplifies and streamlines the use of

short sales and DIL options by incorporating the following unique features:

 Complements HAMP by providing viable alternatives for borrowers who are HAMPeligible.

 Utilizes borrower financial and hardship information collected in conjunction with

HAMP, eliminating the need for additional eligibility analysis.

 Allows the borrower to receive pre-approved short sale terms prior to the property listing.

 Prohibits the servicer from requiring, as a condition of approving the short sale, a

reduction in the real estate commission agreed upon in the listing agreement.

 Requires that borrowers be fully released from future liability for the debt.

 Uses standard processes, documents and timeframes.

 Provides financial incentives to borrowers, servicers and investors.

If you are in the middle of the HAMP process or have been told you don’t qualify, be sure to ask about HAFA alternatives for help in getting out of your loan obligations.

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Posted by on April 4, 2010 in Short Sales


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