Foreclosure Trends

Ki Gray asked:


The general arguments concerning the bailout have gone something along the lines of

Anti Bailout : “The taxpayers should not have to foot a 700 billion dollar bill to bail out Wall Street”

Pro Bailout : “But if taxpayers do not bail out Wall Street the economy will fall apart and those same taxpayers will be hurt”

If we could be sure the bailout would work the second argument has some merit. While the bailout will certainly help the banks, the problem is we have almost no guarantee the bailout will help the real estate market and the general economy.

First let’s look at some recent history of how the Fed has tried to help the troubled real estate market. The Fed usually attempts to lower mortgage interest rates to help the real estate market. By lowering mortgage rates houses become more attractive to buyers. In addition, with lower mortgage rates home buyers can buy more expensive houses with the same monthly payment. Therefore lower rates can help stop falling home prices. So it was not surprising in early 2008 the Fed cut the Fed rate. In normal markets lowering the Fed rate helps banks and causes them to lower mortgage interest rates. And following the Fed cut mortgage rates dropped to 5.5 for a period of time. If they had stayed down we might have averted some of the problems with the current housing crisis. But instead a few weeks later rates had jumped backed up to 6.2. Basically banks said thanks for the lower fed rates but we are not going to alter our mortgage rates.

In fact, over the next few months mortgage rates rose all the way to 6.6. The next big move was acquiring Freddie Mac and Fannie Mae. This was one of the largest government takeovers in US history. The move was risky because the government was providing insurance for trillions in loans. And it initially had a positive effect on the housing market. But a few weeks later AIG ran into financial problems. This dominated the news cycle. It was almost as if the government takeover of Freddie Mac and Fannie Mae never happened.

So the previous moves the federal government has made to stop the financial crisis have not worked. Should the 700 billion dollar bailout be different? It could certainly help the housing markets. But it might not. Lets look at why.

One of the benefits of the 700 billion dollar bailout has nothing to do with banks. It has more to do with perception on Main Street. The hope is that the bailout will restore confidence in the real estate market on Main Street.

In politics people often talk about news cycles covering up the last news cycle. Basically the last piece of news stays in people’s minds until the next piece of news comes along. The Fannie Mae and Freddie Mac news cycle (and the billions the government will spend on it) only lasted until the next piece of news, which was about a week. While the 700 billion dollar bailout should restore some confidence in the real estate market, that confidence might only last until the next piece of news. And with things happening so quickly that news cycle might not last very long and given the current market the next piece of news will probably be negative.

The other benefit of the 700 billion dollar bailout is that the government is hoping to influence banks to start lending again. The idea is that by taking billions in toxic loans off the books for banks they will start lending again. The problem is that their is no guarantee this will happen. In fact, when the Fed lowered rates banks said thanks but decided that prospects for the housing market looked negative and continued to add restrictions to lending. In a similar fashion banks could say thanks for the 700 billion but we continue to see negative prospects in the housing market and therefore we will continue to have strict lending practices. But thanks for the 700 billion taxpayers.



RANDOLPH

Phil asked:


A dwindling house market in the UK could stretch the financial situation for some mortgage lenders according to credit ratings agency, Fitch.

Their research has uncovered that the British housing market is set to see the trend of lower prices continue, but they do not expect to see a collapse of house prices.

Director of Fitch’s London-based Financial Institutions Group, Alexander Birry, warned that a weakening housing market could place added pressure on UK mortgage lenders who may see a downgrading of their credit ratings, making it more expensive for them to borrow on the money markets. However, a rebalancing act of the market is likely to offer opportunities to those with the best access to funding.

Birry said, “Rating actions may occur if a lender shows more vulnerability to a weakening housing market than is currently anticipated. In particular, the performance of certain non-conforming residential loans in a more difficult market represents a key uncertainty.”

Banks are set to find it increasingly difficult to offer competitive mortgage rates if they are forced to spend more money on their borrowing, which will in turn worsen the squeeze on credit; but downgrades are not expected across the board from UK lenders.

Alliance and Leicester have announced though, that they are set to stop writing the vast majority of new mortgages after they suffered losses of £150 million as a result of a recent credit crunch. Their shares also suffered with a reported fall of 2.5 per cent to a record low of 479.5 pence.

The lender also revealed that they were to end the offer of 125 per cent mortgages as a result of the falling house prices leaving many borrowers who relied on their house value increasing, facing financial difficulty.

The packages that usually saw a mortgage with a loan to the value of 95 per cent, with a further 30 per cent as a personal loan had been abandoned because “Alliance and Leicester is a prudent and responsible lender, with PlusMortgage successfully targeting high quality applicants” according to their spokesman, Stephen Leonard.

Elsewhere on the continent the weakening Irish housing market has also affected their mortgage lenders as Irish banks are more exposed to real estate than most others in Western Europe. This has made them susceptible to any significant frailties in the sector. Fitch analyst Matthew Taylor warned, “If the Irish economy achieves a soft landing, which we regards as the most likely scenario, then most Irish institutions should be capable of rising to the challenge without the need for rating action. In the case of a more severe contraction in economic growth, a wider range of rating actions on Irish banks may be required.”

In Spain property prices had fallen dramatically after a housing boom in recent years. This has left mortgage lenders especially weak when banks have significantly increased their exposure to real estate. However, Fitch has concluded that they see more pressure falling on some of the savings banks, rather than the larger, more expansive lenders.



CAMERON

Maureen Karpinski asked:


 As you are surely aware, the housing market in Arizona is not in the best of shape.  The economy is on very shaky ground.  What does this mean for you if you are a homeowner and can’t afford your monthly mortgage?  Here is some information that may help relieve some of your stress.

Arizona has been hit extremely hard with foreclosures in the past year.  In fact, only two other states had a higher rate.  President Obama recently signed a bill into law that will prevent many people from losing their homes.  This stimulus package will help millions of people avoid foreclosure and keep their homes.

There are many questions homeowners have.  Here is some information that will help explain things if you fear you are on the verge of foreclosure:

 

What help is available if I am at risk of foreclosure because I am behind, or struggling to make my payments?

 The Homeowner Affordability and Stability Plan offers to help you if your are already behind on your monthly payments or are having a difficult time making your current payments.  By providing incentives to mortgage lenders, the Treasury hopes to get these lenders to modify already existing first mortgages, so that your monthly payments will be reduced.

If you are an Arizona homeowner, how do you know if you qualify for a payment reduction under this plan?

 Generally, you may qualify for a reduced mortgage if (a) the home you live in is your primary residence; (b) your monthly payment is in excess of 31% of your monthly gross income; and (c) your mortgage loan is not big enough to go over current Fannie Mae and Freddie Mac loan limits.  Your financial situation will help determine whether you are eligible, which will be reviewed by your mortgage lender. If the lender that holds the mortgage on your home doesn’t seem willing to participate, don’t hesitate to call another lender.  Detailed guidelines will be available on March 4, 2009.

 You may wonder about other homes you own in the Phoenix Arizona area.  If you own rental homes or vacation properties that are not your primary residence, the mortgages on these homes are not eligible under this plan.

 On the other hand, if you own a duplex with 2 to 4 units and you live in one of the units, all of the other units are eligible for reduced mortgage payments.  If you don’t live in one of the units, the duplex is not eligible.

 There is much more information in this plan such as eligibility if you owe more than your home is worth, and if you have more than one mortgage.  Your Arizona real estate agent can supply you with lenders names that can  help you with these questions, and determine what is best for you.

 If the current housing market and foreclosure has you worried, learn more about the plan.  Arizona is a wonderful place to live, and you may not have to suffer financial difficulty to keep the house you call home.



WILL

R. Sebastian Gibson asked:


Today, everywhere you look, there are commercials, billboards and roadside signs by entities offering to help you prevent a foreclosure of your home. Known as Foreclosure Consultants, some, if not many of these services and the persons whom they employ may be acting in violation of the strict regulations in California which regulate this growing industry. Others, may be outright frauds and scam artists.

 

The focus of these foreclosure consultants is anyone who is behind on their mortgage payments, which is now estimated to encompass one out of every ten homeowners. However, those who seek to defraud the public have their focus especially on the elderly, the newly unemployed, those whose properties are entering foreclosure and those whose payments have recently spiked upwards.

 

If you’ve been the victim anywhere in Southern California of real estate fraud or the target of an unscrupulous loan modification service, foreclosure consultant or someone acting on your behalf to modify your mortgage or cure your problems who is in violation of the strict regulations discussed in this article, call the Law Offices of R. Sebastian Gibson at any of the numbers on our website at http://www.SebastianGibsonLaw.com .

 

If you are a licensed real estate broker or agent and have either been wrongly accused of being in violation of the laws and regulations governing loan modification services and foreclosure consultants, or acted as such without being aware of these strict regulations and need legal defense, we urge you to call us at any of the numbers which you can find on our website.

 

To help you wade through the regulations in California on such services, here are some of the most important regulations. Keep in mind, that there is some overlap between foreclosure consultants and loan modification services. For that reason, the laws and regulations governing both services are included.

 

California Civil Code Section 2945 regulates foreclosure consultants. There is an additional requirement with respect to loan modification services, as discussed below. As with many code sections, the restrictions are complex and many. But here are the primary ways in which foreclosure consultants and loan modification services are regulated.

 

First, no foreclosure consultant and no real estate licensee is allowed to collect any advance fees for services as a foreclosure consultant once a Notice of Default has been recorded against your property. California lawyers are exempt from this prohibition.

 

Second, even if a Notice of Default has not been recorded against your property, in order for a real estate broker to assist you in obtaining a loan modification, or to otherwise negotiate a possible resolution to your problem, the broker must have you sign an agreement that specifically states what services will be performed, when they will be performed and how much you must pay.

 

Third, a broker may not have you sign any such loan modification agreement until it has been submitted to the Department of Real Estate for review and the broker has received permission from the DRE to use it and collect an advance fee.

 

Fourth, licensed real estate brokers who provide loan modification services without collecting fees in advance are not required to receive the DRE’s permission so long as their services are fully completed before they are paid by you.

 

Fifth, foreclosure consultant contract must allow the homeowner the right to cancel the contract until midnight of the third business day as defined in Section 1689.5 of the California Civil Code.

 

Sixth, foreclosure consultant contracts must provide an additional notice to the homeowner in 14-point boldface type stating when fees can be taken and notifying the homeowner that the consultant cannot ask you to sign any lien, deed of trust or deed.

 

Seventh, it is a violation for the foreclosure consultant to claim, demand, charge, collect, or receive any compensation until after the consultant has performed each and every service the consultant contracted or represented he or she would perform.

 

Eighth, it is a violation for the foreclosure consultant to charge any fee or interest which exceeds ten percent per annum of the amount of any loan which the foreclosure consultant may make to the owner.

 

Ninth, it is also a violation for the foreclosure consultant to take any wage assignment, consideration from any third party, acquire any interest in the residence in question, take any power of attorney, induce the owner to sign other contracts which are not in compliance, or enter into an agreement to assist the owner to obtain surplus funds prior to 65 days after the trustee’s sale has been conducted.

 

Tenth, an action may be brought against a foreclosure consultant for any of these violations and judgment shall include actual damages, reasonable attorney’s fees and costs, equitable relief and exemplary damage of at least three times the compensation received by the foreclosure consultant. The foreclosure consultant may also be punished by a fine of up to $25,000.00 or imprisonment for up to a year or both for each violation.

 

The reason for these regulations are many. Foreclosure consultants have, in many cases, been found to charge high fees, require the payment to be secured by a deed of trust on the residence, and then have either performed no service or worthless services. Some foreclosure consultants have then been known to purchase the homes at a fraction of their worth shortly before the homeowner loses their home.

 

Additionally, some foreclosure consultants have required payment of exorbitant fees for services such as to obtain the remaining funds from a foreclosure sale when the homeowner could have obtained those remaining funds from the trustee of a trustee’s sale directly for minimal cost if the homeowner had sufficient time to receive notices from the trustee regarding how and where to make a claim for excess proceeds under Civil Code Section 2924j.

 

Among the services foreclosure consultants are known to offer, legitimate or otherwise, are to stop or postpone foreclosure sales, obtain forbearances from beneficiaries and mortgage companies, assist in getting reinstated, obtain extensions of time, obtain waivers of acceleration clauses, assist in obtaining loans and advances, avoiding or ameliorating the impairment of the owner’s credit, saving the home from foreclosure, and assisting in obtaining the remaining proceeds from the foreclosure of the residence. If a foreclosure consultant promises any of these services, he or she is bound by Civil Code Section 2945 discussed above.

 

If you are dealing with a loan modification service, even one with a contract which has been submitted to the DRE and the broker has received permission to use it and collect an advance fee, if the real estate broker does not follow the strict procedures for handling the advance fee as contained in California Business & Professions Code Section 10146, the agent will be presumed to have violated Sections 506 and 506a of the Penal Code and the homeowner may recover treble damages for amounts misapplied and shall also be entitled to reasonable attorney fees in any action to recover those amounts.

 

Representatives of foreclosure consultants must be bonded real estate licensees. Foreclosure consultants must also be bonded and registered with the California Department of Justice (and submit advertising and promotional materials) and the homeowner must be provided with written proof that the consultant’s representative has a valid California real estate sales license, and is bonded in an amount equal to at least twice the fair market value of the property in question. If the foreclosure consultant performs any activities which include negotiating loans or performing services in connection with real property loans, the consultant must also be a real estate licensee.

 

While real estate agents are in some respects exempt from the foreclosure consultant regulations contained in Civil Code Section 2945, they are subject to it’s regulations under certain circumstances and it is in those circumstances that a real estate agent can be in violation of the Act. If they collect fees once a Notice of Default has been recorded, if they collect advance fees before acts have been performed, if they acquire an interest in a residence in foreclosure, if they assist the owner in obtaining the remaining proceeds from the foreclosure sale, or if they make a direct loan for a residence in foreclosure, they may be in violation of the foreclosure consultant laws.

 

A real estate broker cannot collect an advance fee under California Business and Professions Code Section 10026 unless the broker has submitted to the California Department of Real Estate an advance fee agreement for approval.

 

A loan modification contract, even one with a licensed real estate broker, for their assistance in working out a loan modification or negotiating another resolution of your problem must still state what services will be performed, when they will be performed and exactly how much you must pay. If the fees are to be collected in advance, the contract must be pre-approved by the Department of Real Estate.

 

At the Law Offices of Sebastian Gibson, we specialize in the field of real estate and stand ready to assist you if you have been the victim of any type of real estate scam. If you have lost money or your house to a foreclosure consultant or loan modification service as a result of their wrongdoing, we can assist you in pursuing the parties who victimized you and in some instances, we may be able to seek not only any moneys paid to them, but also, in some cases, your other actual damages, equitable relief, reasonable attorney’s fees and costs and punitive damages of three times the compensation received or misapplied by the foreclosure consultant or loan modification service who contracted with you.

 

If you have a business or real estate legal matter in Palm Springs or Palm Desert, in Ontario or Rancho Cucamonga, Temecula or Murrieta, Newport Beach or Huntington Beach, Anaheim or Santa Ana, El Cajon or Carlsbad, Palmdale or Victorville, Long Beach or Santa Monica, Ventura or Oxnard, or anywhere in Southern California, our Palm Springs, San Diego, Orange County, Inland Empire, Los Angeles, Santa Barbara and San Luis Obispo law firm has the knowledge and resources to be your Business Lawyers and Real Estate Attorneys. If you’ve been the victim of a real estate, business, loan modification or foreclosure scam or fraud, be sure to hire a law firm with experience in loan modification, foreclosure and real estate fraud in California and who will endeavor to ensure that your rights are properly represented.

 

To learn more about the statutes which regulate loan modification and foreclosure consultants, or for legal representation, call the Law Offices of R. Sebastian Gibson at any of the numbers on our website at http://www.SebastianGibsonLaw.com .



DEMETRIUS

Raymond Stoklosa asked:


San Mateo, California, March 4, 2008 - Everyone has read the latest headlines predicting the total collapse of the housing market. Potential buyers and investors nationwide are holding their breath and biding their time, waiting for the bottom to fall out so they can capitalize on the weakness in the market. Sellers are shell shocked and worried, how will their home sell now?

But if you are a potential buyer or seller in San Mateo County, you might want to reevaluate your strategy. As David Lereah made famous in his book of the same title, “All Real Estate is Local” and local buyers and sellers need to understand the intricacies of their own markets.

San Mateo County, California is a performance leader and it’s not an accident.

While it is true that the number of sales is off from past highs and the inventory of unsold homes is up slightly, industry analysts reported the January 2008 average sales price in San Mateo County was $1,206,153. When compared against an average sale of $1,109,303 for January 2007 and $1,081,979 for January 2006, it’s clear this housing market is still looking steady and strong.

The San Francisco Peninsula has some obvious advantages to surviving the recent downturn. The market here was never plagued by either over building nor is there a preponderance of sub-prime loans. These two factors alone have made San Mateo County the most solid housing market in California, if not the entire United States.

Let’s talk long term though; housing appreciates based upon two factors: job creation and housing supply. The greatest appreciation is found in markets where the numbers of jobs created exceeds the number of housing units being produced. San Mateo County is a text book example of this formula, but there is also more to the story.

The Peninsula has a strong history of positive and sometimes dramatically powerful appreciation dating back decades. A collection of unique characteristics are attributable to the county’s housing strength.

First, San Mateo County has an acute shortage of build-able land. By industry standards the county is effectively built out. Most of the new housing construction is “in-filling” (the phenomena where is builder finds a property with an old, worn-out structure, demolishes it and builds a bigger, better more valuable structure). This drives up the aggregate value of the neighborhood and increases the tax base.

Then, the county is locked in by well defined geographic constraints. The City of San Francisco to the north, the suburban sprawl of Silicon Valley on the south, the Pacific Ocean to the west and the Bay on the east provide no room to grow.

Add the best job market in America, driven by the capital-rich tech industry, and you can begin to see how San Mateo County attracts some of the world’s best talent (along with their solid paychecks).

Moreover, it’s an area loaded with entertainment, recreational and cultural amenities. It’s convenient to one of the great cities of the world, San Francisco, and near two phenomenal universities, Stanford and the University of California.

Now add a Mediterranean-type climate and it’s clear why San Mateo County will continue to prosper.

Media reports that indicate that “the real estate market” is collapsing are generalizations. Pockets of strength and stability exist and are recognizable. San Mateo County, California is clearly alive, well and poised for future appreciation. While it can’t be denied that consumer confidence is distinctly affected by media commentary, it’s important not to overlook the facts. San Mateo County, California, is still one of the best, and most stable, places to live, work and own a home in the US.

So, buyers, start looking. The best time to find a good deal is any time you are willing to take the time to find it. And, sellers, don’t forget to breath.



ALVA

preety_gurl2 asked:


Indicating that single-family home builders remain cautious and concerned about the fragile state of today’s economy and housing market, the National Association of Home Builders/Wells Fargo Housing Market Index (HMI) declined one point to 15 in June.

 

“The outlook for home sales has improved somewhat in recent months, due largely to implementation of the first-time home buyer tax credit and gains in housing affordability,” said NAHB Chairman Joe Robson, a home builder from Tulsa, Okla.

“However, looking forward, home builders are facing a few headwinds, including expiration of the tax credit at the end of November; a recent upturn in interest rates; and especially the continuing lack of credit for housing production loans.”

 

“As expected, the housing market continues to bump along trying to find a bottom,” said NAHB Chief Economist David Crowe. “Meanwhile, builders are taking their cue from consumers, who remain uncertain about the economy and their own situation. Builders are also finding it difficult to complete a sale because customers cannot sell their existing homes.”

 

Derived from a monthly survey that NAHB has been conducting for more than 20 years, the NAHB/Wells Fargo HMI gauges builder perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair” or “poor.” The survey also asks builders to rate traffic of prospective buyers as “high to very high,” “average” or “low to very low.” Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor.

 

Two out of three of the HMI’s component indexes were unchanged in June, including the index gauging current home sales, which held at 14, and the index gauging traffic of prospective buyers, which held at 13. Meanwhile, the index gauging expectations for the next six months declined a single point, to 26.

 

Regionally, the decline was entirely focused in the South, which is the nation’s largest housing market. There, the HMI declined 3 points to 15, while the rest of the regions posted gains. The Northeast had a one-point gain to 20, the Midwest, a one-point gain to 15, and the West, a two-point gain to 14.

article source: www.nahb.org



EFREN

Kari Shea asked:


Many people are in search of a definitive answer about when the California housing market will hit bottom. Are you biding your time before you buy a new home? Sitting around eagerly anticipating another drop in housing prices? Well, while you are sitting around waiting, somebody else is likely scooping up that lovely beach house in the San Diego suburbs you’ve been eyeing.

Analysts are all over the map when they try to predict the bottom of the housing market tumble, and that’s because it’s anybodies guess. Plus, there is no guarantee that mortgage rates will not increase, which can easily offset any potential savings you’ll see from a hypothetical drop in the price of the house you want. Mortgage standards are also on the rise. Lenders are becoming increasingly more discriminating about the credit history of potential buyers. So, if your credit is less than perfect, playing the waiting game might really burn you in the end.

If you really wanted a sandwich for lunch, would you stand outside for hours, just in case they dropped the price by fifty cents? Any potential drop in housing prices can easily be negotiated when you are buying your home, anyhow. Sellers are often eager to move their properties in the current market. Rather than sitting like a silent spectator on the sidelines, try negotiating instead. Then, you’ll get the house you want before someone else does, and you’ll still walk away knowing you’ve gotten a great deal.

By buying a new home, you are actually doing your part to aid the market’s recovery. As home buyers stop feeling squeamish and start realizing that the market is theirs for the taking, the housing market will begin its steady upward climb. It’s only a matter of time before real estate investors and private home buyers alike start to swoop in and scoop up the numerous short sale and foreclosure bargains on the market today.

Once those properties are in short supply, home prices will steadily begin to creep up. Prices will normalize as the nation’s homes start the inevitable process of gaining equity once again. For all we know, we could currently be looking up from the very bottom we’re trying to predict. In fact, The National Association of Realtors predicts a slight increase in existing-home sales for 2008.

Potential buyers might think that twiddling their thumbs while carefully watching the “For Sale” sign in the front yard of house of their dreams is a wise financial plan. However, they are likely not the only ones watching to make sure that sign is still there every morning. Once the first surge of buyers starts to show confidence in the market, it’s only up from there. We are likely to only see the bottom of the California real estate market in the rear-view mirror. Wouldn’t you rather see the inside of your new home instead?

The only person that can know when the time is right to buy a new house is you. Don’t let the media’s negativity prevent you from buying at today’s great prices and low mortgage rates. Your family is sure to enjoy their new home for years to come, and it won’t be a decision you will regret in the long run.



REX

Charlotte Foreclosure Attorney - Zellers Rudd asked:


The North Carolina legislature has enacted new legislation to help homeowners with subprime loans avoid foreclosure.  If a homeowner with a subprime loan defaults on his loan, the lender is now required to send to the homeowner a Pre-Foreclosure Notice at least 45 days prior to filing the Notice of Foreclosure Hearing.  The Pre-Foreclosure Notice must include an itemization of all past due amounts and other charges that need to be paid in order to bring the loan current as well as a statement that the homeowner may have options available other than foreclosure.  In addition, the Notice must also include contact information for the lender, the North Carolina Office of Commissioner of Banks and other HUD approved foreclosure counseling agencies.

The intent is to give homeowners who have fallen behind on their mortgage notice before their house is actually in foreclosure that they may be facing foreclosure in the near future and that there are options available that may allow them to save their home and/or their credit score.

Fore more information about Charlotte foreclosure and foreclosure alternatives, please visit:  http://zellersrudd.com/areas_of_practice/foreclosure_alternative.aspx

Dan Zellers and Scott Rudd- Founding Partners

Dan Zellers, originally from Ohio, earned his undergraduate degree in finance and management from Defiance College and his law degree from the University of Toledo College of Law. He is a member of the North Carolina Bar, South Carolina Bar, Mecklenburg County Bar and the North Carolina Bar Association. His practice is focused on residential and commercial real estate, foreclosure alternatives, landlord-tenant laws and estate planning.

Scott Rudd, a North Carolina native, earned his undergraduate degree in accounting from Campbell University and his law degree from the Norman Adrian Wiggins School of Law at Campbell University. He is a member of the North Carolina Bar, Mecklenburg County Bar and the North Carolina Bar Association. His practice is focused on residential and commercial real estate, business formation and litigation, foreclosure alternatives and work with homeowners’ associations.

Prior to founding Zellers Rudd PLLC, Dan Zellers and Scott Rudd worked together in the real estate finance group of some of the top international law firms in the nation. They represented large national banks and servicers in multi-million dollar commercial property transactions as well as multi-billion dollar commercial loan securitizations. These transactions included the negotiation of large servicing contracts as well as conducting large commercial loan transactions, loan assumptions, defeasances, parcel releases, and other consent matters on large commercial properties located all across the nation. In addition, their work prior to that has afforded them extensive experience in all aspects of residential real estate and residential real estate transactions including loan closings, foreclosure, landlord-tenant law, work with homeowners’ associations, default judgments and private transactions.

 



DARIN

Charlotte Foreclosure Attorney - Zellers Rudd asked:


The North Carolina legislature has enacted new legislation to help homeowners with subprime loans avoid foreclosure.  If a homeowner with a subprime loan defaults on his loan, the lender is now required to send to the homeowner a Pre-Foreclosure Notice at least 45 days prior to filing the Notice of Foreclosure Hearing.  The Pre-Foreclosure Notice must include an itemization of all past due amounts and other charges that need to be paid in order to bring the loan current as well as a statement that the homeowner may have options available other than foreclosure.  In addition, the Notice must also include contact information for the lender, the North Carolina Office of Commissioner of Banks and other HUD approved foreclosure counseling agencies.

The intent is to give homeowners who have fallen behind on their mortgage notice before their house is actually in foreclosure that they may be facing foreclosure in the near future and that there are options available that may allow them to save their home and/or their credit score.

Dan Zellers and Scott Rudd- Founding Partners

Dan Zellers, originally from Ohio, earned his undergraduate degree in finance and management from Defiance College and his law degree from the University of Toledo College of Law. He is a member of the North Carolina Bar, South Carolina Bar, Mecklenburg County Bar and the North Carolina Bar Association. His practice is focused on residential and commercial real estate, foreclosure alternatives, landlord-tenant laws and estate planning.

Scott Rudd, a North Carolina native, earned his undergraduate degree in accounting from Campbell University and his law degree from the Norman Adrian Wiggins School of Law at Campbell University. He is a member of the North Carolina Bar, Mecklenburg County Bar and the North Carolina Bar Association. His practice is focused on residential and commercial real estate, business formation and litigation, foreclosure alternatives and work with homeowners’ associations.

Prior to founding Zellers Rudd PLLC, Dan Zellers and Scott Rudd worked together in the real estate finance group of some of the top international law firms in the nation. They represented large national banks and servicers in multi-million dollar commercial property transactions as well as multi-billion dollar commercial loan securitizations. These transactions included the negotiation of large servicing contracts as well as conducting large commercial loan transactions, loan assumptions, defeasances, parcel releases, and other consent matters on large commercial properties located all across the nation. In addition, their work prior to that has afforded them extensive experience in all aspects of residential real estate and residential real estate transactions including loan closings, foreclosure, landlord-tenant law, work with homeowners’ associations, default judgments and private transactions.

For more information about Charlotte foreclosure and foreclosure alternatives, please visit:  http://zellersrudd.com/areas_of_practice/foreclosure_alternative.aspx



DANTE

Mack Winthrop asked:


With the economy in a deep recession, more people are unable to meet their financial obligations and a major symptom is foreclosure. When people cannot pay their mortgage and their lending institutions reclaim their house, it is with the intent of recovering the balance owed on the property and getting it off their books as soon as possible. Many banks do not want to advertise all their foreclosures since it puts their financial troubles in the spotlight. One way to find current upcoming auctions is through foreclosure lists.

Foreclosure lists are generated from many types of lenders. For example, there are traditional banks, FHA, HUD, IRS, FDIC, Treasury, VA, Federal, State, and County seizures, and more. Even real estate companies have foreclosure lists, but in this particular case, subscribing to that kind of list is more about generating leads for the real estate agent.

With the advent of computer technology and the Internet, foreclosure lists are readily available online. There are free listings, however, the information is usually more limited. In order to get detailed information, a small membership price is required following a trial period. If you are serious about investing in foreclosures, having access to this information is indispensable. Just make sure that the list in question is frequently updated.

There are other ways to find foreclosures in your local area if you are willing to do a little work. Most newspaper-classified sections have a public notice for foreclosures. The local sheriff’s office or banks may also carry a foreclosure list. You simply contact them and tell them you are a person interested in bidding on foreclosure properties. It is also a good idea to attend a foreclosure auction and ask the person running the auction for a source of foreclosure lists in your area.

If you have the time, you can compile your own foreclosure lists by searching the public records at the county clerk’s office. Local attorneys may also have lists of bank REOs.

Often times, pre-foreclosures present a more profitable opportunity than foreclosures. Many people will sell their homes before the banks foreclose in order to save their credit and retrieve any equity they can in the process.

The biggest advantage of having access to foreclosure lists online is the time it saves. You can sort listings and pick the ones that are right for you. Some sites have government auction listings that include over 100,000 foreclosure and pre-foreclosures, as well as auction times and locations. Often you can access more than real estate, including cars, trucks, boats, RV’s, and more.

Having a foreclosure list is a great resource, but remember it is only one tool available in the real estate investing business. There are many other factors to consider including your own experience and knowledge level. You must do your own due diligence and research to give you the best chance at success. Start today with your research, you never know when the right deal is around the corner.



ERICK