Why are Banks more likely to do a Short Sale now, than before? Let Platinum Elite Group explain why…

All the indicators are out there that the Real Estate Market is doing better. However, a number of Homeowners are still Underwater and need assistance.  In addition to this we have a 6 to 1 Ratio of Shadow Inventory to REO’s according to a recent Article published by DS NewsPlatinum Elite Group is aware that the recent rise in Homeowner Appreciation is not just expected, it is anticipated, however, basic economics tells us that this is dictated by supply and demand.  The Institutional REIT‘s that have been competing with the general public with our short supply have artificially pushed these prices up faster than anticipated.  We agree prices will go up and continue to go up through 2014 to 2017 with tapering anticipated during this same time frame.  This is an opportunity for Distressed Homeowners that have attempted to either do a Loan Modification | Short Sale | SSLB – Short Sale Lease Back | Bankruptcy or any type of workout with their lender, that same lender may be more motivated to do a workout at this point as their inherent losses have been diminished with the most recent spike in Real Estate Single Family Resident Appreciation in most metropolitan areas.  Watch this Video and determine if Short Sale with a full deficiency waiver is a viable option for you or family?

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.

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…

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.

 

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

“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.

Did we learn anything? From the Last Bubble that Burst…..

The Las Vegas Home Market is still reeling from “The Real Estate Bubble” and yet we might be repeating history.  Everyone can read Headlines and knows that many indicators are up and creating excitement.  Homebuyers that had to sell short are already back in the home buying process.  Investors have been speculating with Flips and have already seen profits from properties that they purchased right after the bubble burst.  With inventory tightening this is pushing prices up and we again are seeing the “Offer” Frenzy, with multiple offers on much of the new listings on market along with Builder’s starting the lottery system with small phase releases.  We get it, everyone wants the highest and best price.  However, this may be short-lived or will at least stabilize as LPS reports over 1.2 Million homes are in foreclosure, down from 1.5 YoY, this is still a great deal of inventory to absorb along with 900,000 housing starts throughout the nation.  This is further complicated by inflated BPO’s (Broker Price Opinion) as outlined in our previous article, “Are Banks Stealing Homes?”, which will, if allowed to happen, push more homeowners into foreclosure and not allow the market to fully recover prior to over inflated home values as was experienced when no one thought it possible.  As Nike’s controversial new Ad stated, “Winning takes care of Everything,” this may be fine for those on the winning side of this recovery, what about the homeowners left behind with bad loans from predatory lending and exaggerated values resulting in over-leveraged property.  Lets not let this happen again.  Be an informed Seller, Buyer, or Investor, weigh your options, and know what is best for you.  The Neighborhood Home Rescue Workshop Video series has released chapter one with our next Chapter, “Homeowners Options“, being released the first week of April, which will assist you in better understanding the market, what placed us in this circumstance and how a healthy recovery will include help for homeowners impacted by deHouse Bubbleregulation of the Credit Derivatives in the 2000’s.  For notification of our next video release email us at info@platinumelite.com or call 702-869-9999.

The Platinum Elite Group

 

Legislative BDR Update to Nevada Foreclosure Mediation and Foreclosure Process as of March 18, 2013

In our Blog Article “Boomerang Foreclosures” written February 14th of this year, we reminded everyone to watch the Legislature and what revisions were being proposed or lobbied for by the banking or trustee representatives.  Please find attached links to BDR List and each proposed Bill for either Foreclosure or Foreclosure Mediation;

Be reminded the United Trustee Association (UTA) Lobbyist believes they have favorable representation in the Legislature and will be attempting to slip changes through without drawing attention to what effects homeowner or real estate market in general. Quote by Cheryl Blomstrom, Blomstrom Consulting in her December 2012 E-News Bulletin for the United Trustee Association for Nevada;  “Those of us looking for change did not get the result we wanted, however I remain optimistic…  I still think we can cobble together a coalition of democrats and republicans to get our work done.  UTA members reached out during the campaign process to key candidates and several were elected.  They come into the session with a working knowledge of our industry.

Timeo Danaos et dona ferentes | Beware of Greeks bearing Gifts

To discuss your circumstances or schedule a “Private Consultation” with a Team Member of Platinum Elite Group, contact us at Platinum Elite, info@PlatinumElite.com or call us 702-869-9999.

 

What sets us at Platinum Elite apart from the rest?

Donald Lainer has developed a strong team in real estate that focuses on service and the clients needs.  First and foremost, we get the job done.  As a team, Platinum Elite Group closed over ninety-one transactions in 2012.  2013 looks to be even stronger.  Already in 2013, the Team has had 11 Listings close, not including the individual team members independent statistics.  In cooperation with Negotiation Service Providers, there has been an additional 13 closings and 12 Short Sale approvals that should close by the end of April.  Donald Lainer, as Team Leader, also does outreach through the Neighborhood Home Rescue Program.  We will be releasing one Video Chapter a month over the next several months, which includes this video from our Youtube Video Channel covering the Las Vegas Market Overview.  Additional Chapters will include:

  • Homeowners Options in Today’s Marketplace
  • Short Sale Options
  • Foreclosure | Mediation | Notice of Default and the process of each
  • Bankruptcy Chapters 7 | 11 and 13
  • Moving Forward with Lending
  • Estate Planning

If you have an immediate need or questions, feel free to contact one of the team for a Private Consultation.

Some segments or chapters are highlighted by guest speakers in each field of expertise.  As a homeowner or investor you need to be informed and knowledgeable in this ever-changing and volatile Real Estate Market.  To sign up for our next Neighborhood Home Rescue Event RSVP at RSVP@PlatinumElite.com or call 702-675-3000.

The Platinum Elite Group is always looking to develop its team with professionals from any field that may be interested in entering the Real Estate Industry.  You may preview our Welcome PowerPoint on Slideshare.com, contact Donald Lainer directly, or any one on the Team and see what we have to offer.  Contact us through our Home Page, info@PlatinumElite.com or by calling 702-869-9999.

 

Are Banks Stealing Homes from Homeowners? You Decide!

Short-Sale-Questions-262x300

Recently, the President of the GLVAR (Greater Las Vegas Association of Realtors), asked all Realtors to stand-up for what is right. Banks and Servicing Entities are again instructing BPO Agents to not include Foreclosures, REO properties, Short Sales, Properties in poor condition, and are including properties that are too far out from the subject property. They are also using, “As-Is” Language, which is not recognized in the State of Nevada, it should be “As-Disclosed!” Whatever happened to “Fair Market Value!” These same banks would not loan on a property based on the same valuation and criteria they are setting for Short Sales. This is a “To Big to Fail” Mentality and the BPO Agents are agreeing to it to get the work!

I attended a mediation hearing for a client, as a service we provide, where I pointed out to the mediator the flaws in the Bank ordered BPO and the Mediator agreed that the instruction to the BPO Agent was a mis-representation of its true value and marked on the Mediation Resolution Form, “BPO was flawed due to mis-representation.” Thus finding that the Bank was acting in bad faith and therefore the “Certificate of Foreclosure,” will not be issued! You also can act on your clients best interest, as well as on the promptings of the GLVAR President and myself that this must stop! This is Aiding and Abetting Fraud perpetuated by these institutions and by doing nothing we are allowing it and seeing homeowners put out on the street! Remember GLVAR is a Self-Policing Entity, that means All of Us are responsible!  Please start reporting Agents that are following these flawed instructions by Fannie Mae or whichever servicing entity has engaged the BPO Agent. Is the money really worth your license?

Below, see our original article published earlier this year. This issue is going to get worse prior to resolution!

A homeowner wanting to do the right thing in relation to working out here situation with her lender, contacted me for assistance.  She explained to me that she is behind in payments and wanted to know her options, at this time.  Mind you this is a very nice home, in a very nice community, however, like many homeowners in today’s distressed market, her circumstances have caused her to become delinquent.  Wells Fargo, the servicing company for Freddie Mac, instructed her that she would have to consider selling the home as a loan modification was not an option due to insufficient income.  Wells Fargo stated they would do a valuation.  They hired an evaluator to provide a Brokers Price Opinion, known in the industry as a BPO.  This BPO / Appraisal as her lender stated, would be necessary for them to re-entertain a loan modification or to establish a sale amount to cover and include unpaid principal, reinstatement fees, back interest, and legal fees.  The Freddie Mac BPO was valued at around $370,000 dollars.  When the homeowner contacted me to discuss listing the property for sale, as she was instructed by Wells Fargo, I was perplexed by the fact that I could not find any comparable “Model Matches” in the entire community or similar models in the surrounding communities that came anywhere close to the banks valuation.  My valuation was more in the range of $280,000 to $290,000 a variance of over $80,000.  This places the homeowner in a potential Short Sale situation, which we are more than happy to assist with and successfully provide for our clients.  However, with the banks valuation I stated that “this over valuation by the bank has to be explained, as Lender BPO’s are done by other professionals in the area.” When I contacted the Homeowner’s bank, not surprisingly, I was declined a copy of the BPO.  However, the homeowner had the contact information for the evaluating agent.  As this industry is small, I knew the BPO Agent, and contacted him directly. With the right connections I was able to obtain a copy of the BPO results and have a conversation with the evaluating Agent. I was taken back by his “Instructions” from the Servicing Company as guidelines for any Freddie Mac backed home.  He stated, “You would never believe how far I had to go outside of the subject properties’ community to find non-distressed comparables.”  This was his specific instructions by the Servicing Company for Freddie Mac, “No Distressed Properties are to be included in the report!”  Placing the comparable homes completely outside of the community. In fact, he mentioned, “The Comps selected were beyond a mile!”  I ask you, How is this a Comp?! This type of activity is completely putting our market, not only here in Nevada, but across the country in turmoil.

What is the motivation behind inflating the price on a non-performing Asset?

We all know for a fact that a Buyer’s appraiser is not going to go by the same parameters and the home will appraise at a lower market value creating several issues;

  • A valuation dispute with the servicing company
  • Delay in the traditional or short sale process
  • Mis-stated information when this BPO / Appraisal valuation is brought to the table during a homeowner’s mediation
  • Buyers being asked to pay the inflated difference in value

If no resolution, the homeowner is left up a creek without a paddle. Without assistance through a short sale most homeowners inevitably end up in foreclosure.  It would seem Freddie Mac and Fannie Mae have decided NOT to help homeowners in trouble. Is this the result for homeowners trying to do the right thing?

Who benefits from this inflated BPO that created this mess?

Please understand, though overseen by the Treasury Department, Freddie Mac or Fannie Mae have their  own motivations.  When a Freddie Mac and Fannie Mae backed homes revert to them through either foreclosure, deed-in-lieu, or other means, it is then made available through a variety of venues, for instance Fannie Mae’s HomePath Program (select the HomePath “More Info”). This program does not require appraisals for buyers using it, offers incentives, and offers as much as only 3% down assistance. On the surface this is attractive to the buyer, however, with these incentives they can then over value and oversell the property by 10% to 30% over current market value as stated in the “Related Articles” below. By further controlling the number of homes released to the market and constricting inventory, this inevitably drives up a falsely inflated market. “BUYERS BEWARE” you may be closing on upside down property from the get go. Again, I ask where is the Assistance for the Sellers that fell victim to this same behavior and here it is being condoned by an entity with Government oversight?!  Homeowners must no longer allow banks to have it their way.  This type of mentality that “They are To Big to Deal With,” must change.  Be an informed seller, an educated buyer, and a smart investor. The homeowner in this situation, through Network Assistance Program is taking the steps with us to utilize Nevada’s Foreclosure Mediation Program.  Follow us for more information as this scenario unfolds.  If you find this information useful and applicable to you or others close to you, please contact us and / or share through our social media links.

We can assist you in knowing which is your best option in relation to your real estate needs and we want to help you get the assistance you need to maneuver through this unprecedented Real Estate Market.  Please contact anyone of our Team Members here at Platinum Elite by clicking on our Home Page, email us at Info@PlatinumElite.com or call us at 702-869-9999.

Donald Lainer, Team Lead for Prudential’s Platinum Elite Group

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