by Les Christie, CNNMoney.com staff writer
Lenders are fixing more loans, but the number needing assistance is soaring.
NEW YORK (CNNMoney.com) -- Lenders have helped an increasing number of mortgage borrowers to get current on payments and stay in their homes, but the tide of foreclosures is still rising.
In February, nearly 250,000 homeowners received either mortgage modifications or repayment plans from their lenders, according to Hope Now, the coalition of lenders, investors and community advocacy groups put together to combat the foreclosure plague.
About 134,000 of the workouts completed were mortgage modifications, which typically lower the interest rate on loans, lengthen mortgage terms or reduce principal owed to make loans more affordable. Modifications are considered more comprehensive and effective than repayment plans, which simply tack the late payments on to the end of the loan but don't reduce payments.
"The mortgage lending industry is responding to the needs of its customers and offering solutions that are appropriate to the current market and economic conditions," said Hope Now's director Faith Schwartz.
But in spite of these efforts, the number of foreclosures started in February rose to 243,000 from 217,000 in January. About 87,000 homes were repossessed by banks during February, a 28% jump from the 68,000 foreclosures completed in January. Since the mortgage meltdown hit in July 2007, 1,395,044 homes have been lost.
February was the second straight month of sharply higher foreclosures; prior to January, the problem appeared to be easing. Foreclosures declined to 69,000 in November from 77,000 in October and then dropped again to 56,000 in December.
But the report could have been much worse, considering the nation's deteriorating economic picture, Schwartz said. "We're shedding 650,000 jobs a month," she said. "But there's more flexibility [by the lenders]. They're offering more forbearance in response to job losses."
The Obama administration's foreclosure prevention initiative could send mortgage modification numbers higher in the coming months, but it will take time. "We won't see a spike right away," said Schwartz. "[Under the program] It takes 90 days to complete a modification. Over the next three months we'll start to see some pull-through."
April will be "the month to get all the implementation details done on the new plan so that everything is crystal clear when they start using it," she added.
Source: CNNMoney.com
Tuesday, March 31, 2009
Friday, March 27, 2009
HUD Launches Foreclosure Prevention Website
The U.S. Department of Housing and Urban Development has launched a new on-line resource for homeowners who may be at risk of default and foreclosure. The "Making Home Affordable" website is an interactive guide through the Homeowner Affordability Plan and can be used by homeowners to see if they qualify for a loan modification or purchase refinancing. It also provides information about free counseling services.
For more information please visit: MakingHomeAffordable.gov
For more information please visit: MakingHomeAffordable.gov
Wednesday, March 25, 2009
C.A.R. February Home Sales and Price Report
LOS ANGELES – Home sales increased 83 percent in February in California compared with the same period a year ago, while the median price of an existing home declined 40.8 percent, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported today.
“Home sales in California continue to be considerably stronger than the nationwide sales figures,” said C.A.R. President James Liptak. “The market will continue to register large, but diminishing year-to-year percentage gains in the coming months, as current sales are compared against the extremely low numbers that prevailed during the early months of the credit crunch.”
Closed escrow sales of existing, single-family detached homes in California totaled 620,410 in February at a seasonally adjusted annualized rate, according to information collected by C.A.R. from more than 90 local REALTOR® associations statewide. Statewide home resale activity increased 83 percent from the revised 338,970 sales pace recorded in February 2008. Sales in February 2009 decreased 0.8 percent compared with the previous month.
The statewide sales figure represents what the total number of homes sold during 2009 would be if sales maintained the February pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.
The median price of an existing, single-family detached home in California during February 2009 was $247,590, a 40.8 percent decrease from the revised $418,260 median for February 2008, C.A.R. reported. The February 2009 median price fell 2.3 percent compared with January’s revised $253,330 median price.
“The California median price has declined by a larger margin than the nationwide median price,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. “This can be attributed to the under $500,000 portion of the market, which has experienced larger price declines than the other market segments due to the large share of distressed homes for sale. This further contributed to the decline in the statewide median.”
“Home sales in California continue to be considerably stronger than the nationwide sales figures,” said C.A.R. President James Liptak. “The market will continue to register large, but diminishing year-to-year percentage gains in the coming months, as current sales are compared against the extremely low numbers that prevailed during the early months of the credit crunch.”
Closed escrow sales of existing, single-family detached homes in California totaled 620,410 in February at a seasonally adjusted annualized rate, according to information collected by C.A.R. from more than 90 local REALTOR® associations statewide. Statewide home resale activity increased 83 percent from the revised 338,970 sales pace recorded in February 2008. Sales in February 2009 decreased 0.8 percent compared with the previous month.
The statewide sales figure represents what the total number of homes sold during 2009 would be if sales maintained the February pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.
The median price of an existing, single-family detached home in California during February 2009 was $247,590, a 40.8 percent decrease from the revised $418,260 median for February 2008, C.A.R. reported. The February 2009 median price fell 2.3 percent compared with January’s revised $253,330 median price.
“The California median price has declined by a larger margin than the nationwide median price,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. “This can be attributed to the under $500,000 portion of the market, which has experienced larger price declines than the other market segments due to the large share of distressed homes for sale. This further contributed to the decline in the statewide median.”
Saturday, March 21, 2009
C.A.R. Releases Guide to Stimulus Packages
The California Association of REALTORS® has created an easy to use guide to the various federal and state economic stimulus packages. The guide is based on a "Frequently Asked Questions" format and covers the following topics:
American Recovery and Reinvestment Act
•First-Time Homebuyer Tax Credit
•FHA, Fannie Mae, and Freddie Mac Loan Limits
•Other Provisions of the Recovery Act
Making Home Affordable Program
•Home Affordable Refinance
•Home Affordable Modification
•Keeping Mortgage Rates Low
California's 2009-2010 State Budget
•New Home Tax Credit
•90-Day Extension to Foreclosure Process
To read the complete guide in PDF format, please click here.
American Recovery and Reinvestment Act
•First-Time Homebuyer Tax Credit
•FHA, Fannie Mae, and Freddie Mac Loan Limits
•Other Provisions of the Recovery Act
Making Home Affordable Program
•Home Affordable Refinance
•Home Affordable Modification
•Keeping Mortgage Rates Low
California's 2009-2010 State Budget
•New Home Tax Credit
•90-Day Extension to Foreclosure Process
To read the complete guide in PDF format, please click here.
Thursday, March 19, 2009
Foreclosure Rescue Scams
Red Flags for Foreclosure Rescue Scams
If you are at risk of or in foreclosure, you should be on the lookout for foreclosure scams. Here are some of the red flags to
watch out for:
• Asks for money upfront before providing any service
• Instructs you not to contact your lender, lawyer, housing
counselor, family, friends, or others
• Asks for mortgage payments to be made directly to his or her
company or a bank account set up by that person, rather than
your lender.
• Requires payment only in the form of cash, cashier’s check,
or wire transfer
• Promises to stop the foreclosure process, no matter the
circumstances
• Advises you to transfer your property deed or title to his or
her company
• Offers to fill out paperwork for you
• Asks for something to be done immediately and without delay.
This includes pressuring you into signing paperwork that you
have not had the chance to read thoroughly or do not fully
understand
• Encourages you to lease your house and buy it back
over time
• Offers to buy your house for a fixed price that is not set by the
housing market at the time of sale
• Asks for you to give a power of attorney
• Asks for signatures on a grant deed or deed of trust
• Asks for signatures on a document that has lines left blank
• Fails to provide copies of signed documents
• Refuses or fails to put an oral promise in writing
Source: California Association of REALTORS
If you are at risk of or in foreclosure, you should be on the lookout for foreclosure scams. Here are some of the red flags to
watch out for:
• Asks for money upfront before providing any service
• Instructs you not to contact your lender, lawyer, housing
counselor, family, friends, or others
• Asks for mortgage payments to be made directly to his or her
company or a bank account set up by that person, rather than
your lender.
• Requires payment only in the form of cash, cashier’s check,
or wire transfer
• Promises to stop the foreclosure process, no matter the
circumstances
• Advises you to transfer your property deed or title to his or
her company
• Offers to fill out paperwork for you
• Asks for something to be done immediately and without delay.
This includes pressuring you into signing paperwork that you
have not had the chance to read thoroughly or do not fully
understand
• Encourages you to lease your house and buy it back
over time
• Offers to buy your house for a fixed price that is not set by the
housing market at the time of sale
• Asks for you to give a power of attorney
• Asks for signatures on a grant deed or deed of trust
• Asks for signatures on a document that has lines left blank
• Fails to provide copies of signed documents
• Refuses or fails to put an oral promise in writing
Source: California Association of REALTORS
Bay Area home median falls below $300,000
James Temple, Chronicle Staff Writer
SAN FRANCISCO -- Bay Area median home prices crossed below the $300,000 threshold for the first time this century, as the one-two punch of foreclosures and tight credit continue to batter the market, according to a February housing report released Thursday.
The regionwide figure, however, is becoming less representative of individual markets, as Bay Area real estate trends increasingly diverge and weigh down the statistics with cheap homes.
Heavily discounted foreclosed properties, and regular sellers dropping asking prices to compete with banks, are drawing buyers to inland areas in droves, according to MDA DataQuick. On the other hand, the tightness in the credit markets has made it difficult for borrowers to secure the so-called jumbo loans necessary to purchase homes in high-priced markets, where there are also fewer repossessions forcing property onto the market, the San Diego research firm said.
"These are atypical buying patterns that frankly skew the statistics," said Andrew LePage, a DataQuick analyst. "It's just not normal to have so much of the activity concentrated in inland areas or neighborhoods rife with foreclosures."
What it all means for home buyers, sellers and owners depends on where they buy, sell or own.
The real statistical story only begins to emerge in the county by county figures. Transactions tumbled in the coastal markets of Marin and San Francisco - 26.9 percent and 13.5 percent, respectively - while they soared in Solano and Contra Costa - 121.7 percent and 106.4 percent, respectively, DataQuick reported. Median prices for existing, single-family homes - while down across the region - roughly correlated to the sales trends, falling between 21 percent and 23 percent in the former two counties, and 40 percent and 51 percent in the latter two.
County medians - which mean that half the homes sold for more than that amount and half for less - ranged from $200,000 in Solano to $640,000 in Marin.
Sales fell to or near record lows in expensive communities around the Bay Area, including Orinda, Walnut Creek and San Rafael, and rose to record highs in cheaper areas such as Vallejo, Brentwood, Antioch and Pittsburg, DataQuick reported.
Realtors in the outer East Bay say the inventory of unsold homes and average days on market are both steadily declining, factors that could eventually put a floor under falling prices.
In addition to the bargains, they attribute the surge in activity to interest rates driven steadily lower by a series of Federal Reserve efforts and new government incentive programs, including the federal stimulus package's $8,000 tax credit for first-time home purchases.
"We've just seen this huge upswing," said Kevin Kieffer, a Realtor with Keller Williams in Danville.
"This month alone I've had three new buyers who came in asking about the (tax credits). One of them went into contract within three days."
Mortgage giant Freddie Mac said that average rates on 30-year fixed-rate mortgages dropped to 4.98 percent this week, the lowest level since January, after the Fed said it would pump an additional $1.2 trillion into the economy.
There was wide speculation on Thursday that the effort, which includes hundreds of billions more for mortgage-backed securities, could ease credit markets and buttress the housing sector. Whether it will translate into the jumbo loan market, where secondary buyers all but vanished during the initial credit crunch of August 2007, remains to be seen, said Keith Gumbinger, vice president with Pompton Plains, N.J., research firm HSH Associates.
"Does it spark new demand? That's an unknown question," he said. "Just because financing is available doesn't make the product more attractive. But then some support may be all this market needs to get itself moving forward again."
What $300,000 will buy
For the first time since 1999, the Bay Area median home price fell below $300,000. Here's what that amount will get you in three cities:
San Francisco
1430 Thomas Ave.
A three-bedroom, one-bathroom "fixer-upper" in the Bayview neighborhood, built in 1910.
Represented by Prudential California Realty.
List Price: $299,950
East Palo Alto
2321 Poplar Ave.
A two-bedroom, one-bathroom bungalow built in 1940. It includes a one-car garage on a 6,500-square-foot lot.
Represented by Coldwell Banker.
List Price: $299,000
Brentwood
2467 Marshall Drive
This home includes five bedrooms, three bathrooms, a two-car garage and a swimming pool. The 2,121-square-foot structure was built in 2001.
Represented by Prudential California Realty.
List Price: $299,000
Source: SFGate.com
SAN FRANCISCO -- Bay Area median home prices crossed below the $300,000 threshold for the first time this century, as the one-two punch of foreclosures and tight credit continue to batter the market, according to a February housing report released Thursday.
The regionwide figure, however, is becoming less representative of individual markets, as Bay Area real estate trends increasingly diverge and weigh down the statistics with cheap homes.
Heavily discounted foreclosed properties, and regular sellers dropping asking prices to compete with banks, are drawing buyers to inland areas in droves, according to MDA DataQuick. On the other hand, the tightness in the credit markets has made it difficult for borrowers to secure the so-called jumbo loans necessary to purchase homes in high-priced markets, where there are also fewer repossessions forcing property onto the market, the San Diego research firm said.
"These are atypical buying patterns that frankly skew the statistics," said Andrew LePage, a DataQuick analyst. "It's just not normal to have so much of the activity concentrated in inland areas or neighborhoods rife with foreclosures."
What it all means for home buyers, sellers and owners depends on where they buy, sell or own.
The real statistical story only begins to emerge in the county by county figures. Transactions tumbled in the coastal markets of Marin and San Francisco - 26.9 percent and 13.5 percent, respectively - while they soared in Solano and Contra Costa - 121.7 percent and 106.4 percent, respectively, DataQuick reported. Median prices for existing, single-family homes - while down across the region - roughly correlated to the sales trends, falling between 21 percent and 23 percent in the former two counties, and 40 percent and 51 percent in the latter two.
County medians - which mean that half the homes sold for more than that amount and half for less - ranged from $200,000 in Solano to $640,000 in Marin.
Sales fell to or near record lows in expensive communities around the Bay Area, including Orinda, Walnut Creek and San Rafael, and rose to record highs in cheaper areas such as Vallejo, Brentwood, Antioch and Pittsburg, DataQuick reported.
Realtors in the outer East Bay say the inventory of unsold homes and average days on market are both steadily declining, factors that could eventually put a floor under falling prices.
In addition to the bargains, they attribute the surge in activity to interest rates driven steadily lower by a series of Federal Reserve efforts and new government incentive programs, including the federal stimulus package's $8,000 tax credit for first-time home purchases.
"We've just seen this huge upswing," said Kevin Kieffer, a Realtor with Keller Williams in Danville.
"This month alone I've had three new buyers who came in asking about the (tax credits). One of them went into contract within three days."
Mortgage giant Freddie Mac said that average rates on 30-year fixed-rate mortgages dropped to 4.98 percent this week, the lowest level since January, after the Fed said it would pump an additional $1.2 trillion into the economy.
There was wide speculation on Thursday that the effort, which includes hundreds of billions more for mortgage-backed securities, could ease credit markets and buttress the housing sector. Whether it will translate into the jumbo loan market, where secondary buyers all but vanished during the initial credit crunch of August 2007, remains to be seen, said Keith Gumbinger, vice president with Pompton Plains, N.J., research firm HSH Associates.
"Does it spark new demand? That's an unknown question," he said. "Just because financing is available doesn't make the product more attractive. But then some support may be all this market needs to get itself moving forward again."
What $300,000 will buy
For the first time since 1999, the Bay Area median home price fell below $300,000. Here's what that amount will get you in three cities:
San Francisco
1430 Thomas Ave.
A three-bedroom, one-bathroom "fixer-upper" in the Bayview neighborhood, built in 1910.
Represented by Prudential California Realty.
List Price: $299,950
East Palo Alto
2321 Poplar Ave.
A two-bedroom, one-bathroom bungalow built in 1940. It includes a one-car garage on a 6,500-square-foot lot.
Represented by Coldwell Banker.
List Price: $299,000
Brentwood
2467 Marshall Drive
This home includes five bedrooms, three bathrooms, a two-car garage and a swimming pool. The 2,121-square-foot structure was built in 2001.
Represented by Prudential California Realty.
List Price: $299,000
Source: SFGate.com
Wednesday, March 18, 2009
First-Time Homebuyers Have Several Options to Maximize New Tax Credit
WASHINGTON — As part of the Treasury Department’s consumer outreach effort and with the April 15 individual tax filing deadline approaching, the Internal Revenue Service today began a concerted effort to educate taxpayers about additional options at their disposal to claim the new $8,000 first-time homebuyer credit for 2009 home purchases. For people who recently purchased a home or are considering buying in the next few months, there are several different ways that they can get this tax credit even if they’ve already filed their tax return.
The Treasury Department encourages taxpayers to explore these options to maximize their credit and get their money back as fast as possible.
“The new credit can get money in the pockets of first-time homebuyers quickly,” said IRS Commissioner Doug Shulman. “For people who recently purchased a home or are considering buying in the next few months, there are several different ways that they can get this tax credit even if they’ve already filed their tax return.”
First-time homebuyers represent a significant portion of existing single-family home sales. The expansion in the first-time homebuyer credit will make it easier for first-time homebuyers to enter the housing market this year.
Under the American Recovery and Reinvestment Act of 2009, qualifying taxpayers who purchase a home before Dec. 1 receive up to $8,000, or $4,000 for married individuals filing separately. People can claim the credit either on their 2008 tax returns due April 15 or on their 2009 tax returns next year.
The filing options to consider are:
*File an extension. Taxpayers who haven’t yet filed their 2008 returns but are buying a home soon can request a six-month extension to October 15. This step would be faster than waiting until next year to claim it on the 2009 tax return. Even with an extension, taxpayers could still file electronically, receiving their refund in as few as 10 days with direct deposit.
*File now, amend later. Taxpayers due a sizable refund for their 2008 tax return but who also are considering buying a house in the next few months can file their return now and claim the credit later. Taxpayers would file their 2008 tax forms as usual, then follow up with an amended return later this year to claim the homebuyer credit.
*Amend the 2008 tax return. Taxpayers buying a home in the near future who have already filed their 2008 tax return can consider filing an amended tax return. The amended tax return will allow them to claim the homebuyer credit on the 2008 return without waiting until next year to claim it on the 2009 return.
*Claim the credit in 2009 rather than 2008. For some taxpayers, it may make more financial sense to wait and claim the homebuyer credit next year when they file the 2009 tax return rather than claiming it now on the 2008 tax return. This could benefit taxpayers who might qualify for a higher credit on the 2009 tax return. This could include people who have less income in 2009 than 2008 because of factors such as a job loss or drop in investment income.
The IRS reminds taxpayers the amount of the credit begins to phase out for taxpayers whose modified adjusted gross income is more than $75,000, or $150,000 for joint filers. Taxpayers can claim 10 percent of the purchase price up to $8,000, or $4,000 for married individuals filing separately.
Source: www.irs.gov
The Treasury Department encourages taxpayers to explore these options to maximize their credit and get their money back as fast as possible.
“The new credit can get money in the pockets of first-time homebuyers quickly,” said IRS Commissioner Doug Shulman. “For people who recently purchased a home or are considering buying in the next few months, there are several different ways that they can get this tax credit even if they’ve already filed their tax return.”
First-time homebuyers represent a significant portion of existing single-family home sales. The expansion in the first-time homebuyer credit will make it easier for first-time homebuyers to enter the housing market this year.
Under the American Recovery and Reinvestment Act of 2009, qualifying taxpayers who purchase a home before Dec. 1 receive up to $8,000, or $4,000 for married individuals filing separately. People can claim the credit either on their 2008 tax returns due April 15 or on their 2009 tax returns next year.
The filing options to consider are:
*File an extension. Taxpayers who haven’t yet filed their 2008 returns but are buying a home soon can request a six-month extension to October 15. This step would be faster than waiting until next year to claim it on the 2009 tax return. Even with an extension, taxpayers could still file electronically, receiving their refund in as few as 10 days with direct deposit.
*File now, amend later. Taxpayers due a sizable refund for their 2008 tax return but who also are considering buying a house in the next few months can file their return now and claim the credit later. Taxpayers would file their 2008 tax forms as usual, then follow up with an amended return later this year to claim the homebuyer credit.
*Amend the 2008 tax return. Taxpayers buying a home in the near future who have already filed their 2008 tax return can consider filing an amended tax return. The amended tax return will allow them to claim the homebuyer credit on the 2008 return without waiting until next year to claim it on the 2009 return.
*Claim the credit in 2009 rather than 2008. For some taxpayers, it may make more financial sense to wait and claim the homebuyer credit next year when they file the 2009 tax return rather than claiming it now on the 2008 tax return. This could benefit taxpayers who might qualify for a higher credit on the 2009 tax return. This could include people who have less income in 2009 than 2008 because of factors such as a job loss or drop in investment income.
The IRS reminds taxpayers the amount of the credit begins to phase out for taxpayers whose modified adjusted gross income is more than $75,000, or $150,000 for joint filers. Taxpayers can claim 10 percent of the purchase price up to $8,000, or $4,000 for married individuals filing separately.
Source: www.irs.gov
FTC Warns Consumers About Economic Stimulus Scams
The Federal Trade Commission (FTC) is warning consumers that they could get stung by economic stimulus scams, perpetrated on the Web and through e-mail, by enticing consumers to provide personal information or a small payment.
E-mail messages and Web sites may ask for bank account information and use it to drain consumers' accounts of money or commit identity theft. Web sites also may persuade consumers to clink on links that will download malicious software or spyware that can be used to make them a victim of identity theft, or entice consumers to pay a small fee in order to capture their credit card information.
"Web sites may advertise that they can help you get money from the stimulus fund," said Eileen Harrington, acting director of the FTC's Bureau of Consumer Protection. "Many use deceptive names or images of President Obama and Vice President Biden to suggest they are legitimate. They're not."
To file a complaint in English or Spanish, visit the FTC's online Complaint Assistant at ftccomplaintassistant.gov or call (877) 382-4357.
E-mail messages and Web sites may ask for bank account information and use it to drain consumers' accounts of money or commit identity theft. Web sites also may persuade consumers to clink on links that will download malicious software or spyware that can be used to make them a victim of identity theft, or entice consumers to pay a small fee in order to capture their credit card information.
"Web sites may advertise that they can help you get money from the stimulus fund," said Eileen Harrington, acting director of the FTC's Bureau of Consumer Protection. "Many use deceptive names or images of President Obama and Vice President Biden to suggest they are legitimate. They're not."
To file a complaint in English or Spanish, visit the FTC's online Complaint Assistant at ftccomplaintassistant.gov or call (877) 382-4357.
New Home Sales in California Decline 64 Percent
Sales in new-home communities of 10 units or more were 64 percent below the January 2008 rate, and down from the 59 percent year-over-year decline reported in December, according to the monthly CBIA/Hanley Wood Market Intelligence (HWMI) New Home Sales and Pricing Report.
"January figures were about what we expected, which is a continuation of a very weak sales pace," said Jonathan Dienhart, Director of Published Research for HWMI. "Conditions remain poor, but the sales trends suggest we may be closer to finding a floor in this market."
Source: California Association of REALTORS
"January figures were about what we expected, which is a continuation of a very weak sales pace," said Jonathan Dienhart, Director of Published Research for HWMI. "Conditions remain poor, but the sales trends suggest we may be closer to finding a floor in this market."
Source: California Association of REALTORS
Scam Artists Using Forged Letterhead to Con Californians
California Attorney General Edmund G. Brown Jr. is warning consumers that scam artists are using the forged letterhead of major lenders to con worried Californians into paying thousands of dollars for non-existent loan modification services.
"Californians should be deeply skeptical of anyone who demands money up front and makes extravagant promises that they can save their home," Brown said. Steps consumers can take to protect themselves from loan modification fraud are available at ag.ca.gov.
Complaints may be filed with the Attorney General's Office at: Office of the Attorney General - Public Inquiry Unit, P.O. Box 944255, Sacramento, CA 94244, or online at ag.ca.gov.
"Californians should be deeply skeptical of anyone who demands money up front and makes extravagant promises that they can save their home," Brown said. Steps consumers can take to protect themselves from loan modification fraud are available at ag.ca.gov.
Complaints may be filed with the Attorney General's Office at: Office of the Attorney General - Public Inquiry Unit, P.O. Box 944255, Sacramento, CA 94244, or online at ag.ca.gov.
Consumer Alert - Advance Fees and Loan Modification Services
If you are behind in your mortgage payments, you may be contacted by individuals or companies that will offer to help you work out a loan modification with your lender or provide other services to you in order to help you prevent a foreclosure on your home.
You must be very careful if you are asked to pay for any of these services in advance, whether in cash, check or by charging your credit card. First, California Civil Code Section 2945, which regulates "foreclosure consultants", forbids anyone who falls under the definition of a “foreclosure consultant”, as well as a real estate licensee, from collecting any advance fees for these types of services if a Notice of Default has been recorded against your property. If your lender has recorded a notice of default, do not pay an advance fee to a real estate licensee, or to any person or entity. California licensed lawyers when rendering services in the course of their legal practice(s) are exempt from this prohibition. There are non-profit agencies that can assist you without charging you a fee and real estate licensees who can represent you for a fee to be paid after they have completed their work.
If a Notice of Default has not been recorded against your property, it may be permissible for a real estate broker to assist you in working out a loan modification or otherwise negotiate a possible resolution to your problem with your lender or loan servicer and ask you for payment in advance for their services. However, the broker must have you sign an agreement that tells you what services will be performed, when they will be performed and how much you must pay. The broker cannot have you sign an agreement until it has been submitted to the Department of Real Estate for review and the broker has received permission to use it and collect the advance fee.
The following individual and corporate real estate brokers have submitted advance fee agreements for loan modification and/or similar services to the Department of Real Estate for review, and have received “no objection” letters regarding their use. You can obtain information on brokers and their locations by clicking on the “License Number” on the listing below or call (916) 227-0770.
The Department of Real Estate does not approve, endorse, recommend or make any representations about any of the agreements or their terms, or any aspect of a licensee’s business activities. Consumers wishing to contract with a real estate broker for loan modification or any other similar or related services should carefully review the agreement(s) and consider obtaining independent advice before signing an agreement(s) or advancing any fees. Consumers should also consider comparing the services and fees offered by other licensed brokers on the list.
Note: Licensed real estate brokers who provide loan modification or similar services without collecting fees in advance are not required to receive the Department of Real Estate’s permission as long as their services are fully completed before you pay them.
Source: dre.ca.gov
For a list of real estate brokers who have have submitted Advance Fee Agreements for Loan Modification and/or similar services to the Department of Real Estate for review and have received "no objection" letters regarding their use: dre.ca.gov
You must be very careful if you are asked to pay for any of these services in advance, whether in cash, check or by charging your credit card. First, California Civil Code Section 2945, which regulates "foreclosure consultants", forbids anyone who falls under the definition of a “foreclosure consultant”, as well as a real estate licensee, from collecting any advance fees for these types of services if a Notice of Default has been recorded against your property. If your lender has recorded a notice of default, do not pay an advance fee to a real estate licensee, or to any person or entity. California licensed lawyers when rendering services in the course of their legal practice(s) are exempt from this prohibition. There are non-profit agencies that can assist you without charging you a fee and real estate licensees who can represent you for a fee to be paid after they have completed their work.
If a Notice of Default has not been recorded against your property, it may be permissible for a real estate broker to assist you in working out a loan modification or otherwise negotiate a possible resolution to your problem with your lender or loan servicer and ask you for payment in advance for their services. However, the broker must have you sign an agreement that tells you what services will be performed, when they will be performed and how much you must pay. The broker cannot have you sign an agreement until it has been submitted to the Department of Real Estate for review and the broker has received permission to use it and collect the advance fee.
The following individual and corporate real estate brokers have submitted advance fee agreements for loan modification and/or similar services to the Department of Real Estate for review, and have received “no objection” letters regarding their use. You can obtain information on brokers and their locations by clicking on the “License Number” on the listing below or call (916) 227-0770.
The Department of Real Estate does not approve, endorse, recommend or make any representations about any of the agreements or their terms, or any aspect of a licensee’s business activities. Consumers wishing to contract with a real estate broker for loan modification or any other similar or related services should carefully review the agreement(s) and consider obtaining independent advice before signing an agreement(s) or advancing any fees. Consumers should also consider comparing the services and fees offered by other licensed brokers on the list.
Note: Licensed real estate brokers who provide loan modification or similar services without collecting fees in advance are not required to receive the Department of Real Estate’s permission as long as their services are fully completed before you pay them.
Source: dre.ca.gov
For a list of real estate brokers who have have submitted Advance Fee Agreements for Loan Modification and/or similar services to the Department of Real Estate for review and have received "no objection" letters regarding their use: dre.ca.gov
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