Utah Real Estate & Mortgage Blog

I have heard from a couple of different clients lately about foreclosure fraud, and how they were almost affected. I am sharing this with my readers so that you all can stay clear of this. Instead of spending all day telling you stories or giving you too much advice, I’ll try to make this short and easy to understand.

Access to lists that contain “Notice of Defaults” are very easy to get. This list shows who has defaulted on their home loan, and what the property addresses are. Scammers are getting a hold of these lists and doing a lot of damage with them. I’ve been told some scammers are even knocking on the doors of these homeowners and conning them at their own home. Here is a list of the most common foreclosure frauds to watch out for.

Myth #1: They promise you that if you sign over the title to your home to them, then the foreclosure will be recorded against them, and not you.

Truth #1: What happens is you lose your home to them, they get any equity you had in your home, the foreclosure still hits your credit, and they usually collect a fee from you for this.

Myth #2: They promise to sell your home as a short sale, which won’t affect your credit.

Truth #2: Short sales WILL affect your credit. They are a little bit better than a foreclosure in regards to your credit and future financing, but they ALWAYS affect your credit.

Myth #3: They promise to help you declare bankruptcy to save your home.

Truth #3: Bankruptcy can be a pretty messy affair. A lot can depend on if you lose your home or not through bankruptcy court. You should always consult your attorney and financial adviser before going this route. Most people suggest doing this ONLY if there is no other alternative.

Myth #4: For a fee, they promise that they have a special relationship with the bank and will work something out with your bank and save your credit.

Truth #4: There are no easy solutions when facing foreclosure.

Myth #5: *This is the most common scam* – They will purchase your home and lease it back to you with the option to buy it back from them in a year or two at a great price. This keeps you in the home and ensures, in your mind, that you can own it again in a short time.

Truth #5: They will have you sign title over to them. This means you just lost your home, and they got all of the equity. They also usually charge for this, and won’t give your home back to you at a great price. One thing to note, there are legit lease-options out there, so if you are getting yourself into this, please be careful. I would also be happy to look over any leases you are about to sign on this very topic to ensure its legitimacy.

Remember, if something sounds too good to be true, it usually is. I hope this will help prevent some of you from being taken advantage of, and losing much more than your home. Remember, no question is a dumb question, so if you have any issues with someone that crosses your path about this, ask them as many questions as it takes for you to feel secure in your decision making. The real professionals will not have a problem with that.

If you’ve spoken with someone and things didn’t sound legit, please contact the Division of Real Estate and let those guys do their thing. Let’s get as many of these scammers off our streets as possible.

Also, please don’t hesitate to contact me for additional information regarding foreclosure properties for purchase or if you are a home owner in need of some answers or assistance regarding foreclosure.

Cameron North
Real Estate Professional
801-553-9761

I hope I am wrong on this. After several weeks of declining gas prices (and many car owners celebrating), I’ve heard rumors that gas prices may actually be on the rise again.

Members of OPEC will be meeting soon to discuss cutting production on oil to increase the prices. It’s a natural supply and demand scenario. This is difficult to hear considering just Wednesday crude oil was at the lowest price since June 2007.

Because of the recession-like indicators we are seeing from our economy, some members are concerned that these sudden price reductions will severely impact the people that are less dependent on higher oil prices.

Hopefully OPEC can meet somewhere in the middle so the price doesn’t go down too low to impact other parts of the worlds economy, yet not cut the production so much that it creates prices far above $100/barrel, like they were a few months ago.

Have you heard about the new housing rescue bill that passed last July? One of the most exciting new provisions of the Housing and Economic Recovery Act of 2008 is the First-Time Home Buyer Tax Credit. The credit is designed to encourage first-time home buyers to go ahead and make the leap to purchase their first homes.

First Time Home Buyer Tax Credit Rules:

• The home must be purchased as a primary residence.
• You must not have owned a primary residence in the last three years. For couples, both individuals must not have owned a primary residence in the last three years.
• Must not be a non-resident alien as defined by the IRS in Publication 519.
• Individuals must have a modified adjusted gross income of less than $75,000 annually and couples less than $150,000 to qualify for the full amount.
• The home must be closed between April 9th, 2008 and July 1st, 2009.

How the tax credit works:

• The tax credit is 10% of the home’s sale price with a maximum of $7,500.
• You can claim the credit on taxes filed in 2008 or 2009.
• It’s a credit and not a deduction.
• It’s refundable, so if your tax liability is less than the credit, you can get the money back.

Tax Credit Loan Repayment Terms

The tax credit isn’t really a tax credit, it’s really just an interest free loan with some qualifications. You have to start paying back this loan within two years and you make equal payments over 15 years. When you sell your home, any profits will go first into paying off that loan. If you sell at a loss, the difference will be forgiven.

Combine this tax credit with the fact that home prices are dropping, interest rates are very favorable, it is indeed an ideal time for many first-time home buyers to purchase homes.

Feel free to contact us for additional information on how you can take advantage of this opportunity.

An Australian ad company developed this “mock ad” as a test. They are trying to change the negative public perception of immigrants in Australia. It was initially designed to appear tasteless so that anyone who has an opinion on immigration (either way) would start talking. After playing it, I feel it was designed to show a realization of the consequences both to the Economy and social impact on Australia if the immigrants were not there.

It would be interesting to see one of these created for America. Tell me what you think…

http://www.kickamigrant.com/game.html

Today World Entertainment News put out a couple of interesting tidbits about Governor Palin. Apparently she has the looks and body to be a singer in one of the nations most popular “girl bands.” Pussycat Doll Nicole Scherzinger, has asked Republican vice president Sarah Palin to join the Pussycat Dolls if her run for the office fails in November. She has even been quoted as saying, “She seems like a headstrong woman, a tough chick. And she’s hot.”

I actually thought it was a joke initially, but I looked around the web and found several other sources. She has also received a few other offers, including one from Hugh Hefner to pose in Playboy.

I wish her the best in her political career, but if it doesn’t work for her, it appears she has a couple good fall-backs.