Loan Modification Scams

After just attending a legal seminar from a top local attorney, I learned a few things about loan mod's that you should know about.
1) Lender's don't like dealing with loan modification companies. They figure if the borrower doesn't have the money to pay them, how can they afford to pay a 3rd party company?
2) Some loan mod companies have had borrowers sign Power of Attorney documents enabling the company to sign on the borrower’s behalf. After the dust settles and the loan has been modified, some borrowers are finding that the loan modification merely took the amount that was past due and added it to the principle while keeping the payment and interest rate the same. If the borrowers couldn’t afford the loan in the first place, the problem repeats itself.
3) There are some good companies out there, but be careful what you sign!

Open House Activity

Last week I was holding an Open House on a Bank Owned home. This particular single family home was listed at $444k in Blossom Valley and had 3 beds/2 baths. I found it interesting that so many buyers who came in were sharing with me that they had been out-bid on several homes. So the eveidence suggests that the entry level homes are a hot product in today's marketplace. Please contact me for your free list of bank owned homes.

Home Buyer Layoff Protection Program

The California Association of Realtors has just announced a program which helps protect home buyers against a potential lay-off by providing FREE mortgage insurance to the buyer(s). What that means is that if you buy a home and are laid off within the first year after owning, you will be given $1,500 per month for up to 6 months. According to California officials, 6 months is approximately twice the amount of time it takes an average employee to obtain new employment. If there are two buyers and the second buyer also loses their job, the second buyer will receive an additional $750 per month. So in a worst case scenario where two buyers lose their job, they will be protected for up to $2,250 per month for up to six months.
Below are the eligibility requirements.

· You must be represented by a member of the California Association of Realtors
· You must open escrow after April 2, 2009 and closed escrow by December 31, 2009
· You must be a first time home buyer (not owned in the past 3 years)
· You must live in the home you buy
· No income limitations
· You must be a “W2” employee
· Cannot be a principle (business owner) of the business to which you are employed
· Other restriction may apply

Please contact me for further details and an application.