Florida Realtors pushed for short sale bill

WASHINGTON – April 21, 2011 – U.S. Rep. Tom Rooney (R-Fla.) and U.S. Rep. Robert Andrews (D-N.J.) introduced bipartisan legislation last week to speed short sales by requiring lenders to decide whether to accept an offer within 45 days.

“This bill addresses the biggest obstacle for homebuyers and owners in short sale situations,” says Patricia Fitzgerald, president of Florida Realtors and a key contact to Rooney, who lives in Tequesta, Fla.

“We’ve worked with The National Association of Realtors® (NAR) and through Patti as the FPC (Federal Political Coordinator) since last August or so,” says John Sebree, Florida Realtors vice president of public policy. “This federal legislation is one of the goals of our short sale work group.”

H.R. 1498 – the “Prompt Decision for Qualification for Short Sale Act of 2011” – will bring the processing time for short sale price approvals in line with the time required for other types of real estate deals by mandating a quicker response from the lender – at most 45 days after submitting the request for short sale approval.

“Due to the economic crisis, the number of short sales in Florida is rising, but lenders haven’t always been able to keep pace,” says Rooney. “By requiring lenders to make decisions on short sales within 45 days, this legislation would speed transactions and help prevent homes from going into foreclosure.”

© 2011 Florida Realtors®

Realty Times - HOA Know How

Realty Times - HOA Know How

Home loan modification scam warning

TALLAHASSEE, Fla. – April 12, 2011 – Florida Attorney General Pam Bondi filed a complaint yesterday against a home loan modification company for allegedly requiring consumers to pay an upfront fee for services.

According to an investigation by the Attorney General’s Office, U.S. Mitigators, LLC, allegedly required consumers to pay an upfront fee of $2,100 before it would render services. Many consumers reported paying the $2,100 fee and an additional $399 application fee for services they never received. The Attorney General’s complaint against the company seeks more than $48,000 in restitution for consumers.

“Charging upfront fees for loan modification services is illegal,” says Bondi. “If consumers have been asked to pay upfront fees for these types of services, I encourage them to file a complaint with my office.”

Under Florida law, loan modification companies may not solicit, charge, receive or attempt to collect or secure payment, directly or indirectly, for foreclosure-related services before completing or performing all services contained in the agreement.

To file a complaint, consumers can call the Attorney General’s fraud hotline at 1-866-966-7226 or file online at http://www.myfloridalegal.com.

The Federal Trade Commission (FTC) has also issued rules concerning mortgage assistance relief services (MARS). For more information, visit the Legal Center on the Florida Realtors’ website.

© 2011 Florida Realtors®

4 mistakes to avoid when buying a foreclosure

ORLANDO, Fla. – April 8, 2011 – Foreclosures continue to flood real estate markets across the country, and buyers are looking to cash in on what they view as some of the best real estate deals. But experts say that while some foreclosures are a great purchase, buyers need to be cautious before jumping in. They must make sure they’re really getting a bargain.

Dan Steward, president of Pillar to Post Professional Home Inspections, advises buyers considering a foreclosure to avoid the following top mistakes:

1. Don’t judge a house by looks alone. A $2 million mansion may look fabulous but have mold hiding beneath the walls or need numerous, costly repairs. A fixer upper, on the other hand, may look rundown but have excellent bones and be repaired at a reasonable cost. A home inspection prior to purchasing a property can help buyers determine if they might be getting in over their head, Steward says. He cautions buyers to not just rely on previous inspections, however, since vacant homes can deteriorate rapidly.

2. Don’t focus on price alone. Buyers may focus on the ultra-low price so much that they forget to factor in other qualities, such as the home’s school district, view, location and local crime rate. Steward cautions buyers not to assume that a previous owner’s financial problems cause all foreclosures.

3. Don’t be tempted to “flip.” Purchasing a home at bargain price, updating it and trying to sell it for a lot more may seem tempting, but Steward warns buyers to be cautious. Unless the buyers are pros at house flipping, they’ll likely run into several novice mistakes in trying to make fast money on flipping a foreclosure. Steward recommends buyers consult a real estate professional, home inspector and contractors before considering a flip.

4. Don’t go over budget. Foreclosures often require some fixes so buyers need to make sure they have the money to afford needed repairs. Steward recommends that buyers have at least half of the money in cash for needed repairs. He says that buyers will want to avoid taking more loans than needed, particularly private loans, because the interest on them will slowly chip away at their initial foreclosure bargain.

Source: “What to Watch Out for When Buying a Foreclosure: Help Your Clients Know Which to Buy ... and Which to Walk By,” RISMedia (April 7, 2011)

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