May 3, 2010

Home Sale | Short Sale Mitigation – Consumers Should Be Warned (mitigation Firms)

Distressed property owners suffer the confusion of solution along with the stresses of their financial hardships. Once a default filing reaches the public 411, every joker and legitimate provider of pre-foreclosure services gets the memo. Mortgage Brokers, Realtors, Mitigation Attorneys, Investors and Short Sale Scam Artists prey on the chance for their piece of the buck.

One solution offered to distressed homeowners is the use of Mitigation Services provided by firms qualified in their State to provide these services. For example in California, they are most likely Legal Firms. The Legal approach to negotiating with lenders adds the sledgehammer in cases for example, when it is discovered that when the mortgage was originated, the consumer disclosures were not properly executed. Law Firms are poised with the perceived authority they personify to the public, though it has been debated by many lenders as to their effectiveness over other solutions offered by Brokerages staffed with Short Sale Specialists. Re-finance is commonly impossible.

Mitigation Firms have proved to be an exceptional way for many distressed homeowners to save themselves by saving their homes. If that is your situation, I would not call a real estate firm until after the modification process proved a disqualification. The banks are not going to throw you under the bus if your mortgage is tied to HEMP or HAFA guidelines. HEMP and HAFA are government mandates President Obama rushed through to squash the red tape in the pre-foreclosure process and to help restore pride of homeownership to millions of Americans. HEMP relates to Modification and HAFA tags on HEMP with Short Sale guidelines and protocol. While the programs have honorable intent, there are many mortgages in default which are exempt from these governmental compliances. This is one example where Mitigation Firms provide an equitable and valued Consumer Service.

Here is the Warning! Many Mitigation Firms make their money on Advance Fees, often disclosed as Fees for Service. When you examine the services and fees due in phases, the bulk of the fee is more like a nonrefundable retainer in exchange for the same roundup of the homeowner’s documents and Short Sale packaging as would be included in the Brokerage Commissions paid in the sale of the property. There is a New School of Real Estate Short Sale Specialists out their trained in these pre-foreclosure lender regiments and can supplement the Short Sale Banks bottom-line more equitably. The advice here would be that before signing any Agreement for Mitigation Services, it would be wise to forward the agreement to a second Mitigation Expert, Attorney or Specialist for a Consultation.

Bryan is both a Real Estate and Health and Wellness Coach and Educator. He is currently available for both personal and group coaching and training in Stress Management, Molecular Hydration and Real Estate Loss Mitigation. He currently lives in Los Angeles and Consults in the real estate, health and legal industries. Follow him on Twitter at http://twitter.com/bryanridgley or Facebook at http://facebook.com/bryanridgley or E-mail Bryan at bkr@pacbell.net

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8 Comments on Home Sale | Short Sale Mitigation – Consumers Should Be Warned (mitigation Firms) »

May 16, 2011

I Buy And Sell Houses @ 11:39 am:

A short sale is not as bad as a foreclosure, usually the bank will report
90 days late in your mortgage, but with zero balance, after 1 year that won't affect your credit too much, after 2years, it won't have any negative effect. On the contrary, Foreclosure will remain for 7 years, t it will affect your capacity to buy a home for those years, but it will probably be the time you need to recover from all this mess, you'll be OK with everything, remember this is learning lesson for all of us. Life goes on either renting or owning a property.There are other good things we have that we must value such as having good health, being able to think, to come up with new ideas, and most importantly HOPE.
All we have to do is get up, clean up our wounds and continue the road to success.
I have lived in 4 countries and this is the only one where you fail, and and then you have many opportunities to be on the top again. Don't dismay .Open your eyes to new chances

Attitude is a little thing that makes a big difference.
Winston Churchill

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June 13, 2011

Christopher B @ 12:46 am:

If you have a house to sell before you can buy the house you have a contract on, your realtor should have put in the contract "contingent to the sell of your home". If this was left out of the contract and you have not closed the sale, call your realtor and have this added into the contract. You will have to initial it and the seller will have to initial it. If the realtor was negligent in not putting in this contingency and you have difficulty getting it in the contract, call a real estate attorney and/or your local Board of Realtors and report this to them. The Board of Realtors might help you to resolve the issue.
If you have already closed the sale of the new house, contact your closing attorney for advice.

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June 28, 2011

clear556 @ 4:05 pm:

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July 4, 2011

Greg @ 3:09 pm:

Owning a home limits a persons options. It’s harder to move if you were to find a better job or want to move to a better location or if you just want a change. Renting offers greater flexibility and is cheaper in the short term since no one really stays with the same company for 20 years anymore. The myth owning a home need to be publicized. Can you save for retirement on your own for the same amount you profit from your home sale in 20 years? Yes. I own a house and I know the limitations it places. My point is, don’t buy a home unless you plan on leaving it to your children.

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August 30, 2011

hotbabyblue48 @ 12:25 pm:

Premier Jewelry.

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October 7, 2011

theresa4104 @ 10:24 pm:

craigslist has an easy to use real estate section. If you are close to a bigger city, you may get alot of viewers there.

-I've never personally used it, but I've recently seen links from Craigslist to this Site with additional pictures, info, etc. It's a stand alone Site though- you don't have to use w/ craigs list

Many local newspapers also post their classified ads online now too.

Community Webpages?

You can't post "for sale" on your local freecycle group, but sometimes the freecycle groups have a second "local community chat forum" where you could get some local ideas.

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October 19, 2011

Mom @ 10:18 pm:

these are your personal possessions, you are not necessarily in the business of 'estate sales'–there are some people who are
and you would need to be registered with your state sales tax agency to charge and collect sales tax

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October 30, 2011

Carrie R @ 12:06 am:

You can not get out of an accepted contract even if the house is uninhabitable, but there is a clause in most typical contracts (my experience is in Virginia) that requires the seller to have electrical, mechanical and plumbing in "normal working order."

If you are concerned about making an offer, then definitely bring a home inspector with you prior to making an offer. (keep in mind you will be paying this person to do an inspection, unless you know one personally who is willing to go see the house with you and give you their opinion without performing a full inspection. you can expect to pay at least $200 for an inspection)

You can always make and offer and have it contingent on the home inspection. The seller of an "as is" home may be a bank or person who is just looking to sell without a lot of hassel in fixing minor things. It doesn't necessarily mean that there is something significantly wrong with the house, it may just need some TLC and the seller doesn't want (or can't afford) to make a lot of pretty updates to get it "show ready."

Get a realtor and have them ask a lot of questions about who the seller is, etc. and see if that alleviates any of your concerns. I personally wouldn't have a problem buying an "as is" house (especially in this market, since 99% of the foreclosures I have see are "as is" per the bank). I just wouldn't make an offer unless it was contingent on an acceptable home inspection. Keep in mind though, unless you are paying cash, "acceptable" can mean to you or to your lender. Your lender may not want to loan money on a home based on the home inspection.

Good luck, it's a great time to buy!!

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May 3, 2010

Home Sale | Short Sale Mitigation – Consumers Should Be Warned (mitigation Firms)

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8 Comments on Home Sale | Short Sale Mitigation – Consumers Should Be Warned (mitigation Firms) »

May 16, 2011

I Buy And Sell Houses @ 11:39 am:

June 13, 2011

Christopher B @ 12:46 am:

June 28, 2011

clear556 @ 4:05 pm:

July 4, 2011

Greg @ 3:09 pm:

August 30, 2011

hotbabyblue48 @ 12:25 pm:

October 7, 2011

theresa4104 @ 10:24 pm:

October 19, 2011

Mom @ 10:18 pm:

October 30, 2011

Carrie R @ 12:06 am:

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