Monthly Archives: May 2013

Predatory Practices still in full swing against Homeowners?

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Update to Predatory Practices against Homeowners! We closed without having to go through Auction.com

Platinum Elite Group

Update to Predatory Practices: The property in question that brought this Nationstar vs. Auction.com issue to light, has now closed! We were able to successfully remove the Auction Task and complete the Close of Escrow last week without participating in their mandatory process described, below. This was done by the cooperation of the Platinum Elite Group Team and Negotiation Service Providers as well as all of those that are involved in any transaction that is distressed.  Thank you to everyone that participated, responded, and commented on this article.  It is the collaboration and activism that empowers us to push through the complexities thrown at us through the Lending servicers and the sometimes unrealistic guidelines set in place by the investors.

We believe in the education of our clients as to all of the options available to them, by doing so, we have found the Homeowner to be able to make the…

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How soon after doing a Modified Pay-Off, Short Sale, Foreclosure, Deed-in-Lieu can I buy a home, again? Watch our newest video and see…

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Platinum Elite and our contributors through Neighborhood Home Rescue Program answer the tough questions with real answers in our newest video release, “Moving Forward with Lending!” Taken from our Workshop that is geared towards educating homeowners that are faced with or have faced a Distressed circumstance and want to know how soon they can truly be back in the home purchasing market.  This video covers Highlights from our Distressed Homeowner Option Video with one of our Contributors, Dave Cooper a Mortgage Consultant with Shelter Mortgage Company.  In the re-cap of the options Dave Cooper explains the lending process and the credit ramifications from these various options and what lenders are looking for when a homeowner is preparing to re-purchase or is ready to purchase. Watch and learn from one of many of our Neighborhood Home Rescue Contributors.

We believe in the education of our clients as to all of the options available to them, by doing so, we have found the Homeowner to be able to make the healthiest decisions for themselves and their family while reaching for the best possible outcome. The information we and our network of consultants | contributors provide is at no cost and | or no advance fee consultations.  We can assist you in knowing which is your best option in relation to your real estate needs and we look forward to helping you get the assistance you need to maneuver through this unprecedented Market.  Please contact any Platinum Elite Associate by clicking our HomePage, E-mail us at Info@PlatinumElite.com, or call us at 702-869-9999.

The Platinum Elite Group or Follow-us on Facebook | Twitter | Linked-In | Trulia | Realtor.com all links are on the right column or our HomePage.

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Why are Platinum Elite Clients Cashing Checks in the Thousands from The National Mortgage Settlement?

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“Errors Afflict More Checks Issues to Aid Homeowners”

By Ben Protess and Jessica Silver-Greenbergmortgage-blog-foreclosure-letter-21

“At least these checks cleared,” I love the way these two columnists start this article, however, the results of this Rust Consulting Fiasco is no laughing matter.  This has effected not just Platinum Elite Clients, it has effected homeowners across the nation that expected some type of relief from a Global Settlement between the Federal Government and 13 Institutional Lenders.  This Settlement as described in the article was deemed ” The National Mortgage Settlement” and was created to assist in bring relief to homeowners that had been wrongfully filed against or wrongfully foreclosed upon by the participating lenders.  The National Mortgage Settlement is being managed for these 13 lending institutions and overseen by government regulators by Rust Consulting.  Though its intial intention was to bring relief to homeowners it has been in the media  for its mishaps more than it’s successes and these errors are documented.  What we wanted to do is start tracking these Errors and enumerate these mishaps to see how far or how long it takes for this to get enough attention to be resolved.  Let’s take a look at the “Mishaps” one at a time;

  1. “Slow to alert borrowers to expected payments since settlement was announced in January.” Checks not issued until April.
  2. “Rust delayed the checks for weeks as it struggled to gear up for the payments.” They knew since January and were not ready until April, Three months and they weren’t prepared.
  3. “Once Rust Consulting issued the first round of the checks in April, it failed to move money into the bank account used for the settlement.” So, checks were returned for insufficient funds. Who pays the NSF fees?
  4. “Homeowners complained about clerical errors at Rust Consulting, problems like checks sent to the wrong addresses or issued to deceased borrowers.” This, after being contacted numerous times by individual homeowners. Furthermore, one of our staff here called for personal reasons and found that the addresses they are using are the foreclosed property address unless they have been notified otherwise. Last we checked, once a foreclosure happens, you are most likely not still living in the property. Past foreclosed homeowners may need to contact The National Mortgage Settlement Program, directly.
  5. The newest “Fiasco” lumped together, “sending out checks in the wrong amount,” and, “failed to follow the payout plan.”  This is even more interesting as 11 of the 13 banks adopted a “Metric” to calculate payouts to harmed homeowners.  Read further and you will see that this “Metric” and what phase the “Harmed Homeowner” was in determines the amount of the payout to the injured party.
  6. As Reported by the NYTimes, “Mr. Cummings, the Congressman from Maryland, noted that Rust Consulting does not include an explanation of what homeowners are owed under the settlement.” With no mention of this “Metric”, what you may be owed, or why you even received the payment as a part of “The Worst Settlement Ever,” how are you to know if you were reasonably compensated from this $3.6 Billion Dollar Settlement?
  7. “Space reserved for next Mis-hap?” It’s going to happen, the Fed is already asking for an investigation according to Reuters.

My last question after recapping, and we will keep tabs on this, is who gets the interest on $3.6 Billion Dollars while we wait for Rust Consulting to figure out how to fix these problems, or as the Naked Capitalism Blog mentions, “Errors by Design,” you have to wonder, don’t you?

We believe in the education of our clients as to all of the options available to them, by doing so, we have found the Homeowner to be able to make the healthiest decisions for themselves and their family while reaching for the best possible outcome. The information we and our network of consultants | contributors provide is at no cost and | or no advance fee consultations.  We can assist you in knowing which is your best option in relation to your real estate needs and we look forward to helping you get the assistance you need to maneuver through this unprecedented Market.  Please contact any Platinum Elite Associate by clicking our HomePage, E-mail us at Info@PlatinumElite.com, or call us at 702-869-9999.

The Platinum Elite Group or Follow-us on Facebook | Twitter | Linked-In | Trulia | Realtor.com all links are on the right column or our HomePage.

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Short Sale, Lease Back, and then Re-Purchase your home? Is this really an option for Distressed Homeowners? We’re not sure…

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the-power-of-good-decision-making

Short Sale Lease Back – SSLB Program for Distressed Homeowners is one of the newer “Options” Available and is causing a wave of controversy. Here is why; HAFA Guidelines were amended in 2011 to allow Short Sale Lease Back (SSLB) as long as a Non-Profit Corporation registered as a 503 (c) is the purchaser.  See Section  7.3 of Chapter IV of the Handbook. This SSLB Program is seeing some success in California and gaining momentum in other states by being used in advertising as a “Distressed Homeowner Option“.  However, we see several caveats to these HAFA guideline amendments and the SSLB Program, as it has been presented.  On the surface it appears to be like most government sponsored options and a major reason the Making Homes Affordable Programs have not seen the results expected, is that the Lender | Servicer has to first agree to participate, establish that they have implemented guidelines with HAFA, and that they then get to determine if you are approved or qualify for this “Option”.  The criteria for this program is that you have to meet the following;

  • Lender | Servicer approve or qualify home in advance
  • Sale or transfer property to a Non-Profit Corporation
  • viable or verifiable Hardship
  • Pay fair market value in rent
  • Stay in the home for three years
  • Complete a Short Sale in this time frame to a Not for Profit Corporation, Not specified or monitored by HAFA
  • Transaction for both the purchase, lease-back, and Short Sale have to be completed by this Non-Profit Group

Again, HAFA or as many government programs do, leaves the cooperative power in the hands of the Lender | Servicer and their Investors, through guidelines and approval stipulations.  An Attorney | Broker in California pointed out, and we agree, that Fannie Mae and Freddie Mac have “Arms-Length Transaction” stipulations or restrictions, which comprises over 90% of the Distressed Home Loan Inventory.  Thus, your margin of success is now limited to 10% of the remaining lenders | servicers | investors.

What concerns us even more, as evidenced by scenario’s being presented to the Grievance Committee in the Las Vegas Market, is how some are presenting and mis-representing variations of the original SSLB Program. These parties have been discovered, to some degree, to be preying upon Distressed Homeowners by offering enticing alternatives such as a purchase back solutions.  It’s our belief these parties are taking advantage of Distressed Homeowner’s emotions that are wanting to stay in their homes at today’s prices.

Homeowners Be aware;

These abuses premised on this SSLB Program are not based on what’s being told to some Distressed Homeowners when they sign-up, it’s what’s not being disclosed, that is the concern!

“What if my Short Sale fails and I have already agreed to sell, my home to the Non-Profit Group?  In fact, in one situation the home was already transferred via power of  attorney and a quit-claim deed.  Thus the answer was: Oh, didn’t we discuss the risks initially? Sorry and by the way, you have 30-days to move, if that….”

“Now that the house is still going to foreclosure, where did all my rent go to that I paid the Non-Profit Group and/or Investor while under review? The Answer: Oops, I’m sure we discussed this possibility, sorry and by the way, you have 30-days to get out, and no refunds……” This mis-use of the SSLB was done under the pretence to collect rents and never stay the foreclosure or assist in helping the homeowner.

“This was a great program, Thank you! I am on my feet again and ready to buy my house back. The Answer: Oops sorry, did we forget to mention that one of the conditions are that you cannot by your house back due to the lien holders policy on Arms-Length Transactions! Of course, you may continue to pay rent to the Non-Profit Corporation or  current Investor.”

Understand that the SSLB Program does not allow for you to re-purchase your specific home. Thus, those advertising, may be over promising, or potentially misleading you to move forward with an SSLB option will not deliver on promises to keep you in your home past the three (3) year stipulation by the HAFA guidelines. Any party that hooks a Distressed Homeowner with the SSLB promise, which results in a flip for profit benefit raises concern.

The scenarios mentioned are current abuses of what we are already seeing in the Las Vegas Area.

The SSLB Program, though allowed by HAFA, has not evolved enough in this market. After hearing the Distressed Homeowner’s complaints of not keeping the negotiations in their directive control during the bank’s review of a loan modification, deed-in-lieu, deficiency release, or short sale, we believe there are much better options available that have fewer challenges and fewer opportunities for fraudulent practices, that can be accomplished with our assistance.

We are not sold on the SSLB Program, the complications created by the HAFA guidelines, or the willingness of lenders | servicers to participate other than on a limited basis. Thus, the Neighborhood Home Rescue Program will present the SSLB option benefits, in addition to the risks so, the homeowner has a better understanding.

We believe in the education of our clients as to all of the options available to them, by doing so, we have found the Homeowner to be able to make the healthiest decisions for themselves and their family while reaching for the best possible outcome. The information we and our network of consultants | contributors provide is at no cost and | or no advance fee consultations.  See our most recent Video regarding Distressed Homeowner Options or schedule an appointment with one of our associates. We can assist you in knowing which is your best option in relation to your real estate needs and we look forward to helping you get the assistance you need to maneuver through this unprecedented Market.  Please contact any Platinum Elite Associate by clicking our HomePage, E-mail us at Info@PlatinumElite.com, or call us at 702-869-9999.

The Platinum Elite Group or Follow-us on Facebook | Twitter | Linked-In | Trulia | Realtor.com all links are on the right column or our HomePage.

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