SHOCKER!! Buyer of a short sale doesn’t own the property he just purchased (or does he?). Seller of the short sale paid off the wrong party (or did he?). The below email was sent to Neil Garfield at Living Lies. Sadly this is not shocking at we know of two other lawsuits where the seller [...]
Short Sale + Mortgage Insurance = Problem
May 5, 2011 By Leave a Comment
Mortgage insurance adds another and potentially difficult step to closing out a short sale. Why? Quite simply it adds another approval needed in the short sale approval process. When negotiating with the bank for a short sale it may appear that the assigned negotiator is the person that you are dealing with but only on [...]
What is the Prompt Decision for Qualification for Short Sale Act of 2011?
April 18, 2011 By Leave a Comment
NAR is touting a new bill the “Prompt Decision for Qualification for Short Sale Act of 2011” which has been introduced in the U.S. House of Representative and will mandate that mortgage servicers respond to short sale requests within 45 days! Sounds good but guess what? They already tried this once. It was called Prompt [...]
TX Assoc of Realtors response to FTC’s MARS rule misses the mark!
April 4, 2011 By Leave a Comment
The FTC’s (Federal Trade Commission) MARS rule (Mortgage Assistance Relief Services) has caused a lot of confusion for licensed real estate agents. In just the past three weeks I (along with attorneys from The Gore Law Firm) have spoken to two of the largest Keller-Williams & RE/Max offices in the Houston area as well at [...]
FTC MARS Rule: Short Sales & Proof of Compliance
February 18, 2011 By 3 Comments
Although the FTC’s claims the new MARS rule is meant to protect homeowners from scammers and incompetents; it also places an enormous number of and frankly burdensome responsibilities on real estate agents/brokers who assist homeowners with short sales or deed in lieu. Penalties run as high as $11,000 a day thus every agent and broker [...]
FTC’s MARS Rule: Short Sales & Promises – Part 3 of 3
February 18, 2011 By 1 Comment
The FTC’s new MARS rule is meant to protect homeowners from scammers and incompetents. Since penalties run as high as $11,000 a day every agent and broker needs to fully understand the risks to their business. In previous posts we addressed the questions of: When does the FTC’s MARS rule apply to real estate agents [...]
FTC’s MARS Rule: Short Sales & Fees – Part 2 of 3
February 17, 2011 By 6 Comments
How does the FTC’s MARS rule affect fees and income from assisting homeowners in a short sale? In other word, how do you get paid for your hard work? In previous posts we addressed the questions of: Ddoes the FTC’s MARS rule apply to real estate agents assisting homeowners in a short sale. The answer [...]
FTC’s MARS Rule: Short Sales & Disclosures – Part 1 of 3
February 17, 2011 By 8 Comments
We have established that brokers/agents assisting homeowners with a short sale do fall under the FTC’s MARS rule: In fact, the new MARS rule applies to all real estate brokers, agents, title officers, etc. who attempt to negotiate, or otherwise provide services, and/or endeavor in efforts related to halting a foreclosure, or obtaining lender or [...]
Does the FTC’s Rule on Mortgage Assistance Relief Services aptly called “MARS” apply to REALTORS?
February 15, 2011 By 3 Comments
The quick answer is yes, REALTORS® as well as anyone else is involved in short sales or other “pre-foreclosure” activities are subject to the MARS Rule. Although the FTC’s MARS Rule took effect on January 31, 2011, most real estate brokers have little or no knowledge regarding the impact on their practice. Why hasn’t someone [...]
Homeowners Hit Brick Wall, Most Owe More Than Home’s Worth
February 9, 2011 By Leave a Comment
Sad but true – the real estate website Zillow.com is reporting that 27% of all homeowners are “upside down” or underwater. Are you upside down in your home? Economist David Blitzer with Standard & Poor’s says, “First of all, you may have somebody who’s underwater, you know, they owe $200,000 on the mortgage and the [...]
