Chance Gates' Blog

Thursday, February 26, 2009

ATTORNEY GENERAL ANNOUNCES ARRESTS IN FORECLOSURE RESCUE SCAM

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NVAR Online News 02/17/09 Reports

Las Vegas, NV— Attorney General Catherine Cortez Masto announced

today the arrest of William Vargas, one of three defendants who allegedly

operated a foreclosure rescue scam in Las Vegas since February 2007, under

the business name of Federal Housing Aid.

Two additional defendants are still at large with warrants issued for their

arrest. Paula Luna is believed to be in California and Michael Sinclair is believed

to have fled to the Philippines. The Vargas arrest was made by investigators

working for the Attorney General’s Mortgage Fraud Task Force, created in early

2008, to investigate and prosecute mortgage related crimes in Nevada.

“Foreclosure rescue scams are particularly egregious because they target

victims who are already experiencing financial hardship,” said Attorney General

Cortez Masto. “These types of scams prey on vulnerable victims who are

desperate for hope and who are looking for ways to avoid foreclosure. The victims

end up paying whatever money they have left to the perpetrators, only to end up in

a worse position than before they were scammed”“

The alleged scheme involved the collection of upfront fees for the purpose of

assisting the victims with avoiding foreclosure on their homes. The suspects

allegedly charged the victims between $899 to $1500 for foreclosure rescue

services and offered a 100% money back guaranty, claiming their company would

refund the money if the foreclosure could not be stopped.

Collection of fees upfront is in violation of Nevada Revised Statute

645D.400, which makes it unlawful for a mortgage consultant to collect or receive

any compensation until after the consultant has fully performed the consulting

services that he contracted to perform or represented that he would perform.

The State alleges that the defendants failed to provide the foreclosure rescue

services and failed to refund the victims’ money as promised.

Defendants Vargas, Sinclair and Luna are each charged with multiple

felonies including: One (1) felony count of Theft of a Person 60 Years or Older;

seven (7) felony counts of Theft by Material Misrepresentation; and eight (8)

misdemeanor counts of Deceptive Trade Practice. The initial appearance in

Justice Court is set for December 10 at 7:30 am in Las Vegas Justice Court

Department 9.

The case was filed by prosecutors assigned to the Attorney General’s

Mortgage Fraud Task Force, which was created by Attorney General Masto in early

2008 to address mortgage fraud scams throughout Nevada. The task force

combines the resources of several Attorney General Bureaus, including the Bureau

of Criminal Justice and the Bureau of Consumer Protection. It works closely with

other State agencies including the Mortgage Lending Division to investigate and

prosecute mortgage fraud crimes in Nevada.

The charges against the named individuals are merely allegations. The

defendants are presumed innocent until or unless proven otherwise in a court of

law.

Consumers who wish to report mortgage fraud are asked to contact the

Attorney General’s Bureau of Consumer Protection in Las Vegas at (702) 486-

3194 to obtain a complaint form. Consumers with internet access may also

obtain a Consumer Complaint Form, as well as other consumer protection and

contact information, on the Attorney General’s website at www.ag.state.nv.us

As a Reno – Sparks real estate consultant I encourage any questions or comments on the Reno – Sparks real estate market or about any of the articles I post. You can email me at chance@ballard-company.com

Wednesday, February 25, 2009

30-Year Rates Drop to Near 5%

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Mortgage rates across the board fell this week, a welcoming sign to potential buyers and home owners looking to refinance.

The 30-year fixed-rate mortgage averaged 5.04 percent this week, a drop from last week’s 5.16 percent. Last year at this time, the 30-year rate averaged 6.04 percent, Freddie Mac reports.

Freddie Mac reported the following for other rates for the week:

15-year mortgage rates: averaged 4.68 percent, down from last week’s 4.81 percent. Last year at this time: 5.64 percent.
5-year hybrid adjustable-rate mortgages: averaged 5.04 percent this week, a drop from last week’s 5.23 percent. Last year at this time: 5.37 percent
1-year ARMs: averaged 4.8 percent, down from last week’s 4.94 percent. Last year at this time: 4.98 percent

“Mortgage rates followed bond yields lower this week as recent economic reports suggest the economy is still slowing, which reduces the future threat of inflation,” says Frank Nothaft, Freddie Mac’s chief economist.

Source: Freddie Mac(02/19/09)

As a Reno – Sparks real estate consultant I encourage any questions or comments on the Reno – Sparks real estate market or about any of the articles I post. You can email me at chance@ballard-company.com

Monday, February 23, 2009

Obama Homeowner Affordability and Stability Plan

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On February 18, 2009, President Obama announced his Homeowner Affordability and Stability Plan designed to help 7 to 9 million families avoid foreclosure by refinancing or modifying their mortgages. The plan also strengthens the federal commitment to Fannie Mae and Freddie Mac (the government sponsored enterprises, or GSEs).

Here are the key elements of the Obama plan:
Refinancing by the GSEs of loans that they own or guarantee. The GSEs will work with their loan servicers to develop a streamlined refinancing program for borrowers with loan-to-value ratios (LTVs) above 80 percent who now face difficulty refinancing.
A $75 billion Homeowner Stability Initiative—with lender, servicer, investor, and borrower incentives to make it work. The program is limited to loans at or below the GSE conforming loan limits.
More support for the GSEs, including doubling of potential Treasury investment from $100 billion to $200 billion for each GSE, to maintain their positive net worth. The plan also raises the cap on mortgages that the GSEs may hold in their portfolios by $50 billion to $900 billion.

From RSAR Association Press Online 02/20/09

As a Reno – Sparks real estate consultant I encourage any questions or comments on the Reno – Sparks real estate market or about any of the articles I post. You can email me at chance@ballard-company.com

Wednesday, February 18, 2009

STIMULUS BILL IMPACT ON REAL ESTATE

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The legislation contains two important housing provisions championed by NAR. The final stimulus bill increases the first-time home buyer tax credit to $8,000 and eliminates the repayment requirement of earlier legislation. In addition, the credit availability has been extended until December 1.

“These important provisions will help bring first-time home buyers to the market and reduce housing inventory,” said McMillan. NAR estimates that the home buyer tax provisions could stimulate up to 300,000 additional home sales, helping stabilize home values and potentially preventing some homeowners from being “underwater” on their mortgage, which can often lead to foreclosure.

The bill also reinstates the 2008 higher loan limits for FHA, Fannie Mae and Freddie Mac. “These higher loan limits are important to make mortgages affordable regardless of where you live. This will also help reduce inventory and improve liquidity in the overall mortgage market,” McMillan said.

This information was obtained from realtor.org.

As a Reno – Sparks real estate consultant I encourage any questions or comments on the Reno – Sparks real estate market or about any of the articles I post. You can email me at chance@ballard-company.com

Monday, February 16, 2009

Home At Last Housing Loan Program

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ELIGIBILITY:

First time home Buyer:

A person who has not owned a house in the last 3 years is considered to be a first time home buyer.

Qualified Veteran:

Washoe County Income limits are:

Family of 2 or fewer: $83,400

Family of 3 or more: $97,300

Cities or towns less than 100,00 in population

BENEFECTS:

Mortgage Credit Certificate (MCC)

Is a tax credit that will reduce the federal income of qualified buyers.

Has the effect of reducing mortgage payments.

PROGRAM IMPACT:

Interest Rate 6% MCC Savings 1.8% Net Cost 4.2%

Monthly payments on $100,000 loan = $600.00 less monthly saving of $150 equals net cost of $450.00

This is just one of the benefits of this program. Lending rates will vary from buyer to buyer.

As a Reno – Sparks real estate consultant I encourage any questions or comments on the Reno – Sparks real estate market or about any of the articles I post. You can email me at chance@ballard-company.com

Friday, February 13, 2009

Selling A House For Less Than The Full Mortgage . Step 1

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This is a complicated process, and it is always recommended a person talk to a CPA and/or an attorney before trying to sell a home for less than they owe the bank. The bank will usually require that a person be two months delinquent, before the bank will allow someone to start a short sale. Believe it or not the process has become a little simpler this year compared to last year. Now banks seem to be more prepared. They will send out a package that a person will have to fill out. This will have financial information and needs a letter of hardship stating why a person cannot make their mortgage payment. On every short sale the bank will open a case of fraud. This is one on the reason it usually takes so long. Sometimes it is a little easier and less stress on the owner, if a realtor is given permission to talk to the bank.

As a Reno/Sparks real estate consultant I always welcome any comments or questions on the Reno/Sparks real estate or any of the articles I posted. You can email me directly at chance at ballard-company.com

Wednesday, February 11, 2009

Selling A House For Less Than The Mortgage Part 2

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The next step is to determine the price to list the house. Once again this will be less than the homeowner owes on the mortgage. Knowing it is tough to find a buyer, for a short sale, the sale price will usually be to the lower end of the market. This will hopefully generate more interest in the house. However this price will have to come with in, a percentage of market value. The percentage could differ depending on which bank holds the mortgage.

As a Reno/Sparks real estate consultant I always welcome any comments or questions on the Reno/Sparks real estate or any of the articles I posted. You can email me directly at chance at ballard-company.com

Monday, February 9, 2009

Selling a House For Less Than The Full Mortgage. Part 3

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So the lender has given permission and accepted that the house is going to be sold for less than the mortgage. The house price has been determined and the house is now on the market. The homeowner has turned in all of the necessary paperwork, talked to lawyer and accountant to make sure there would be no litigation or tax liabilities. The homeowner also understand selling the house this way is going to damage their credit, however not near as damaging as having the house foreclosed on.

After a few showings hopefully an offer comes, now this is when the experience of the agent really gets tested. The agent needs to run the numbers and make sure asking price will match the lenders bottom line, or the lender will turn the offer down. Once again the net to the lender has to be within a certain percentage of the market value. The lender will hire someone to determine the market value by comparing sales of similar houses in the neighborhood.

The offer is high enough to satisfy the lender. The homeowner will then sign the offer and accept it. Then the offer and acceptance will be sent to the lender for third party approval, which can take up to 90 days or more. Title can be opened at the point so when third party approval comes, the house can be sold in 30 days or less.

Hopefully if there is more than one mortgage on the house, both are with the same bank. If the first and second mortgages are held with two different banks then the problem I discussed in “When Buying a House that is a Short Sale” come into effect.

As a Reno/Sparks real estate consultant I always welcome any comments or questions on the Reno/Sparks real estate or any of the articles I posted. You can email me directly at chance at ballard-company.com

Reno/Sparks Nevada Real Estate

Archive for February, 2009

ATTORNEY GENERAL ANNOUNCES ARRESTS IN FORECLOSURE RESCUE SCAM

30-Year Rates Drop to Near 5%

Obama Homeowner Affordability and Stability Plan

STIMULUS BILL IMPACT ON REAL ESTATE

Home At Last Housing Loan Program

Selling A House For Less Than The Full Mortgage . Step 1

Selling A House For Less Than The Mortgage Part 2

Selling a House For Less Than The Full Mortgage. Part 3

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Archive for February, 2009

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