Helping Those In Foreclosure...Becoming Illegal?
I just asked an agent (bless her heart, she seems wonderful, in fact she may even read this 
) if I happen to run into any good deals on the MLS if she would make offers no matter how low they would be and also that I deal with people in foreclosure, her response:
"But I really do not mind
making low ball offers but also be careful because now they are making it
against the law to go after people who are going into foreclosures."
Give me a break!
Helping people from the financial ruins as far as their house is concerned, saving their credit, helping them back on their feet illegal?? I think not!
[ Edited by Optimum on Date 11/19/2003 ]
Some interesting crimes have been committed in relieving persons in financial distress from the burden of their properties.
Of course this is sort of a tradition in the latter day merchantile society here in the United States.
So here in California they have passed some new laws to protect the newly fallen. For example you now have five days to consider and cancel any contractual arrangements you make while in the default situation.
That also creates problems when you are working under the gun of an upcoming Trustee Sale.
I have been doing this a long time and as a Licensed Real Estate Broker, so I am always under three or four guns. The answer I have always found is creating the win/win situation and as long as you do that you may proceed on your lawfull occasions.
Example. I respond to a Notice of Default having been filed on some deserving HomeOwner. I sit down with them and run thru all the options and I mean all of the options. With the HomeOwner we select that path which is best for him/her. I then undertake to achieve that goal. Refinance, Deed to a Relative and lease back. Sell the property utilizing the funds to restart a life plan. A secondary loan to restabilize the first and give the HomeOwner time in which to make corrections in their economic situation.
Yes sometimes I do a correction and in a few months I am back again. I think my record is about five visits as we corrected and corrected. At the end I sold the property. Settled several liens that had attached by that time and of course paid off a newly arrived second trust deed at discount. At that final moment we had to open and Escrow, throw the Seller in and sign all documents and then find a Buyer and insert him into escrow and close. We had of course promised to do all of this at moment of opening escrow.
I have chased errant husbands to obtain a Quick Claim Deed, I have even gone to an Institution of Correction to obtain a deed from a very naughty husband who not only abandoned his wife and kids for a life of heavy dopping and crime but came back once and beat her up. Took the listing on the property in the hospital.
Oh the stories you can tell. The time I knocked on the door and there stood a guy with a shotgun pointed at me. I suggested to the marksman that perhaps I should return at a more opportune time.
Interesting work, but always you try to create the win/win situation.
Sounds like Goody Two Shoes? Perhaps. I like the Lone Ranger Better.
Hi Ho Silver Lucius
Lucius,
Way too funny!
Win/Win is the key![ Edited by Optimum on Date 11/19/2003 ]
That Lufos is a Saint!!!!. Doesn't sound
like he needs to make any money. His win/win dictum is mine also. Foreclosure touches all economic strata.
The defaultees need our help.
sammy (aka : Tonto-Get'um up Scout)
Taking advantage of those in foreclosure is coming under greater scrutiny... almost in direct proportion to the increasing numbers of infomercials touting 'get rich quick' in your spare time schemes.
One man's perception of help could well be another man's example of exploitation.
Realtor are kind of like what snakes are to mongooses. Investors typically dont use them. I dont see any big problem with the california law. They will never be able to stop homeowners from selling there houses. If they really wanted to help Lenders would give them lower interest rates to make there payments instead of higher ones. Guess what thats not going to happen. So you realtor bless her heart probably has underlying motives in her heart. But then again. I dont trust people all that much. I trust Jesus however. Have a good day
Uh by the way. I looked at a few more articles untill they take home ownership away from owners and dictate what and where and when they can do what there house what they will. Your fears arent going to happen. Now I know say maybe the Realtors some of them anyway in this country would love to have control over what the owner does with his home. This just isnt going to happen dont worry. Your running into problems with lenders this is the greatest hurdle now because of crooks
has anyone experimented with recording the conversations with homeowners on digital recorder or audio tape (openly, of course) to protect themselves from liability??
Hey I wear the white hat. There are people out there really ripping the unsuspecting people out there. I also see mortgage company refinancing loans that should have never been done. But it is NOT illegal, but we must act professional or get lumped with all the idiots out there giving us a bad name.
The saddest thing I found are people who have been in there home 10 years and then refinance and he or she lose their job. They are "A" borrowers who are now going down the messy road to foreclosure they just used up there equity to refinance. Those are the ones I really feel sorry for.
[addsig]
California Civil Code 1695
The Legislature finds and declares that homeowners whose homes are in foreclosure have been subjected to fraud, deception, and unfair dealings by equity purchasers. ... homeowners in financial distress, particularly the poor, elderly and financially unsophisticated, are vulnerable to the importunities of equity purchasers... Any equity purchser who violates ... upon conviction be punished by a fine of not more than $10,000 , by imprisonment in the county jail for not more than one year, or in the state prison, or by both that fine and imprisonment for each violation.
Do you have a link to the entire body of that?
thanks!
w w w . l e g i n f o . c a . g o v / c a l a w . h t m l
pick civil code and then navigate to proper code number
Actually that law exsists in many states its call foreclouser fraud. As long as you disclose what your doing you shouldnt have a problem. Judges and lawyers are real big on disclouser
Full documented disclosure should always be done on any real estate transaction, especially an owner occupant in distress.
Go easy on your realtor. Realtors are highly regulated and in a very litagous industry.
JoanAlyce - Texas Realtor