The Poinciana Crane

Homes as Extreme Sport

Buying and selling single family homes in the U.S. market is starting to sound a lot more like a sports event than it does the purchase and sales of shelters for families.  Now that Henrieta Homeowner is finally familiar with the phrase "short sales," the financial industry has a new one that apparently supports the theory, "The more we change, the more we stay the same."  The new system is called an extreme short payoff or ESP, a new trend emerging in some of the hardest hit foreclosure areas in the country, and one that may be coming to a property near you. 

They say this is not short sales but an "extreme" yada ... yada ... yada.  It's in essence a short sale back to the original owners, thus helping to keep families in their own homes.  This new approach hasn't quite made it down to Poinciana or, maybe, sales prices in this area are so low that banks consider their values here already X-TREME! 

Anyway, according to National Public Radio, an ESP is essentially a business that "writes off" a loan in exchange for payment.  Some have seen their payments go down as low as "ten cents on the dollar."  Come to think of it, Poinciana's sales prices haven't quite gotten that low.  Hmm, maybe there is room for X-TREME financial sports here!

FL No Longer #1 in Fraud

According to a study by the Mortgage Asset Research Institute (MARI), mortgage fraud is more abundant now than it was at the height of the lending boom.  MARI singled out the most troubled states based on cases it gathered from about 600 lenders, mortgage insurance firms and mortgage investors, as well as federal data on loan originations.  Rhode Island topped the list, followed immediately by Florida.  Also in the top ten were Illinois, Georgia, Maryland, New York, Michigan, California, and Missouri.

Newest Loan Mod Scam

Scam artists have found a new field in the Obama foreclosure-prevention plan. Attempting to make a grand per customer, these firms charge fees for what they call "quick and effective negotiations" with banks.  In most cases, the firms will take your money, then do nothing.  The Federal Reserve issued advice for people seeking to modify their mortgages:

Cramming It Down the Bank Hole

Americans are not only saving more these days, we've been instrumental in knocking down some of the biggies of the energy industry.  Now it's time to deal with Goliath, i.e., Wall Street.  In a proposal making its way through Washington, it appears that Wall Street is petrified of a newly popularized concept embodied by the word "cramdown!" 

Cramdowns would give our legal system the power to force banks to negotiate with homeowners in trouble and would be a much-needed break from the tsunami of foreclosures still actively striking the U.S.  The financial industry may not have a pulse when it comes to resolving the crisis they created, but came alive when threats of The Cramdown reached their desks.  At least

FL #1 in Fraud?

Now more than ever, it's critically important to make sure that, when you work with professionals in the real estate industry, beware!  According to The Impact of Mortgage Fraud On Florida, a report compiled by the National Association of Realtors (NAR), Florida ranks top 10, nationally, in per capita mortgage fraud.

The report included "falsely inflating the value of a property" as a method used to de-fraud homeowners.  This was a technique popular in the Poinciana area between the years 2004 and 2007 and the primary reasons we have a housing crisis in southwest Kissimmee.  How was it done?

• Real estate agents, mortgage brokers, and appraisers aligned themselves to sell a properties.  Many times, the agent and the broker were the same person.  The weird thing is Florida allows this dual agency and pretend that no conflict of interest could possibly exist.  (The conflict being obvious to honest agents, like Darhlene!)

• Some agents back then even required buyers to use a specific mortgage broker, who would use a specific appraiser, who would, in turn, use a specific et cetera.  While mostly gone with the bubble, too many real estate agents still partake of this activity but are more likely to be aligning with banks these days.

Stop in the Name of Crist

ACORN was once again credited with setting a fire under our politicians cabanas when they called for more action from Florida governor Charlie Crist.  While it was an action on Crist's part to call for 45 days of relief from foreclosure, no action has been so lame duck as the responses from bankers.

 

Did you hear a needle drop?

 

Crist's Hope for Homeowners program, which, as of last month, received only 111 applications, has all but fallen apart.  The Florida Association of Realtors recently reported that while the halt won't help the over 444,000 property owners who are already being foreclosed, it may help owners who are still living in their primary residences. 

Sentinel Calls on Expert

When the Orlando Sentinel was looking for an expert in Poinciana home sales, they turned to Darhlene Zeanwick, who explained the seriousness of the housing crisis in Poinciana to Sentinel reporters.  One of the most stunning statistics is the REO-driven economy in Central Florida, is the "38% of homes in Poinciana in some state of foreclosure or short sale." 

What this means to homeowners in Poinciana who are ready to sell their homes today is that they will have to "compete against the bank," or, more correctly, "many banks."  In this community of many churches and the nation's largest homeowner association the APV HOA,

Osceola 4 Homeowners

The Osceola County human services department has a new program that is designed to assist residents behind on mortgage payments. It's called the Mortgage Foreclosure Prevention Program.  Apply online now.

Loot for Thought

Many homeowners in the Poinciana area have been asking me why they have to pay Osceola and Polk taxes on high assessments when their home values and have dropped and their equities are gone.  The answer is, "You don't."

You can appeal your tax assessment.  In Poinciana, where home values continue to drop, if you win your appeal, you won't have to pay your county's over-inflated tax but one that would likely be more in line with your home's value.

In Osceola, appeals are handled through their Value Adjustment Board.  In Polk, they also have their own Value Adjustment Board.

As well, if the county does not re-evaluate your taxes, you may be able to present an argument that is gaining popularity among Florida voters.  It originated with a a letter to the editor of a publication produced by the the Florida Association of Realtors (FAR).

Free Legal Aid

A program offered by the Florida Bar and Florida Legal Services Florida provides access to a lawyer and free legal advice for homeowners troubled with financial issues.  To take advantage of this free program call, toll-free – (866) 607-2187 - or take advantage of their new, online Intake Form.

Fill out the form on-line to bypass the toll-free hot line available.  If you opt to call the hot line, note their office hours are from 10 a.m. to 4 p.m. Monday through Friday.  They also take up to ten days to respond to intakes.

You’ll be asked a few initial questions about your situation to ensure an accurate placement, and then you’ll be sent to a free attorney. The attorney will then negotiate with the lender on your behalf to help keep your home from foreclosure.

More than 10,000 Florida attorneys have volunteered their services in the program, according to Florida Legal Services Inc.  They volunteered under the the Florida Attorneys Saving Homes program.

Other legal aid services for Florida homeowners include:

• Greater Orlando Area Legal Services
• Pro Bono Legal Assistance to the Poor

Rent-to-Own is Back

As more and more people are struggling to get re-financing for their homes, more and more are also looking at offering lease-to-own agreements.  Such agreements enable tenants to rent a property with the option of buying the residence at some date in the future.

Sellers with once-vacant properties, who add this option, have seen a stable cash flow, and they also get a prospective sale later!  Sellers can contact Home@PoincianaHome.net to see what a rent-to-own option might look like.

No Help for the Defrauded

Sept. 16, 2008 | Now burdened with the nation’s highest level of mortgage fraud, Florida residents are now just finding out that a program -- that at one time reimbursed people scammed by mortgage brokers -– no longer exists -- at least not for them.

State regulators killed a victim assistance program with no public debate more than a decade ago, even when it was warned that mortgage fraud was on the rise in Florida. While 47 states have protections for people who are scammed, including guaranty funds and insurance that covers fraud, Florida has nothing in comparison.

Debt is not a Crime

Debt is not a crime. That's why there are laws against debt collectors who harass.  If you're feeling intimidated, checkup on the rules.  The Fair Debt Collection Practice Actis a federal law. It applies to debt collection companies which are hired by the lenders.  This law allows debtors to go to court if there is violation to any term of the law.

#1 Forecloser Out!

For years, Countrywide has been the number one forecloser of properties in the Poinciana area, but that will end soon. The SECis now conducting a formal investigation againt Countrywide, according to a regulatory filing by Bank of America, which finalized its acquisition of Countrywide just in July 2008. Countrywide will soon be history as it continues to get pummelled by lawsuits from investors, consumers and state officials in Florida, among other states.

Can You Forbear?

Options to a short sale?  Are there any?

You've come to the right place if what you're seeking is an alternative to a short sale, pre-foreclosure, or lis pendens.

Using Forbearance to Prevent Foreclosure

Forbearance means that a lender agrees to let you delay your payments to them for a short period of time. That doesn't mean the lender has forgiven the debt.  They may just allow you to pay what you owe at a later date.

Forbearance can be a good option for someone who is experiencing temporary financial difficulty. A forbearance mortgage is often combined with other programs that bring your monthly mortgage payments current after a negotiated period of time.

How to Tell if a Realtor is Licensed

I was recently called by someone wanting to show one of my homes.  She gave me her name and company.  As usual, the request was being processed when, Zip-a-dee-doo-dah, it turned out the woman on the phone had been unlicensed for over two years.  For this homeowner, choosing me may have prevented a crime far greater than an expired license.  But how to tell if one is licensed without having to jump on the Internet?  It's easy.

Ask them for it.  Every bona fide real estate agent must have a license that looks like either of the one's shown in the photograph at left.  Of course, this is not a fool-proof method.  If you need verification, call me or go to the Florida Department of Business & Professional Regulation.

And remember: Never, never, never allow anyone a foot-in-the-door, so-to-say, especially when it's your front door.  By not opening your door to someone claiming to be a real estate agent, you eliminate the possibility of a far worse crime than unlicensed real estate activity.  Stay safe!

HOPE to Respond to Crist by April

Gov. Charlie Crist recently appointed a group of 13 to a new program to combat the rising problem of foreclosures. The program, called the HOPE Task Force, stands for Florida Home Ownership Promotes the Economy.

"Last year one out of every 95 households experienced foreclosure in [Florida] with filings up more than 275 percent over the previous year," said chief financial officer Alex Sink, one of the committee members. "Working with the Governor's HOPE Task Force, my office will be focused on identifying solutions to help families work through the often confusing and difficult process of retaining their homes."

HOPE is scheduled to meet four times – March 3, March 19, April 2 and, via conference call, on April 9. HOPE will make recommendations to Crist, the speaker of the House, and to the president of the Senate by April 18. Lt. Governor Jeff Kottkamp serves as chair to HOPE.  Click here for meeting agendas, a complete list of the task force members and additional information on the HOPE Task Force.

Source: FAR EarlyBird News, 02/21/2008.

Options to Short Sale

If your home is your primary residence and you have an ARM, avoid going down the path of short sales. If at all possible, you want to do everything you can to modify your loan – your best option. Going down the loan modification path – over a short sale – will help you keep your home so you can sell it when the market will give you at least what you paid for it. Before entering into a short sale agreement with your bank or mortgage broker, call one – or all of the following numbers – and tell them you're looking to get help with modifying your loan.

• LULAC – (877) 445-8522 (National toll-free number although they work with all – not just Hispanic – residents of Kissimmee.)
• ACORN – (407) 254-5974 (Their Orlando number.)

Selling "The Save" in Short Sales

For homeowners thinking of giving-in to a real estate agent vowing “To Save You” from foreclosure, think again, especially if you live in Poinciana, Florida.� Short sales–the preferred phrase among agents today–is really the double of “foreclosure is imminent."� It is the new industry crop for agents, many of whom tout the process because that's what they're being told by their short sale guru's, a.k.a., brokers and anyone else in the industry who can get away with making a buck on the side while the life-dream of homeowners results in economic horror.�

Poinciana today is now boom-town to buyers thinking of moving to Florida and is an example of how the decisions from way up on the chair of Ben Bernanke can reach down to family neighborhoods.� This one rendered Poinciana Ground Zero of the U.S. housing bust.

Of the nearly 2,000+ short sales and REO's (bank-owned/foreclosed) reported by RealtyTrac for the Poinciana area, only slightly over 200 are listed in the local multiple listing service (MLS), the realtor’s tool.� And why aren’t the 1,800+ short sales and REO’s on the MLS?� Some theories: banks don’t know what to do with a commodity other than money; banks don’t play well with real estate agents; or banks don’t have enough incentive from the Feds, et al., to do anything but watch the foreclosures roll in.� It is also possible that mortgagees are so overwhelmed with the crisis that they cannot process contracts quick enough to satisfy the needs of most pre-qualified buyers on the market today; or, whisper, whisper, banks are just plain incompetent when it comes to houses.

Real estate agents, most of whom are still not familiar with closing a short sale, sell the Save to distressed homeowners but not the Experience they’ll be feeling as a result of a shoddy response to the housing bust.� As might be expected, it is the primarily because the Experience means you, the seller, will have to be told that you more likely than not to end in foreclosure.� But, “Hell,” says the agent, “one can’t do business unless we sell the Save.”� That truly is the attitude of the Save Shorty agent.�

If you are a homeowner with a financial problem be wary of the caroler at your front door or you might be ho, ho, hosed, by one who says they can Save You from foreclosure.� But, if you do happen to mistakenly open your door to one of these, rule of thumb is to compliment them on their courageousness, then ask, “Exactly, how many have you saved this year?”�

Short Sale Help Directory

If your home is your primary residence and you have an ARM, avoid going down the path of short sales. If at all possible, you want to do everything you can to modify your loan – your best option. Going down the loan modification path instead – over a short sale – will help you keep your home so you can sell it when the market will give you at least what you paid for it. Before entering into a short sale agreement with your bank or mortgage broker, call one – or all of the following numbers – and tell them you’re looking to get help with modifying your loan.

• LULAC – (877) 445-8522 (National toll-free number although they work with all – not just Hispanic – residents of Kissimmee.)
• ACORN – (407) 254-5974 (Their Orlando number.)
• New Hope - 888-995-HOPE
• “Watch Out” Brochure About Predatory Lenders