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Post foreclosure evictions just got a lot more costly

May 8, 2012 By

Thanks to Herman Thordsen at lendinglaw.com for this morsel of misery.

IN SOME CALIFORNIA COUNTIES YOU CANNOT EVICT A TENANT IF YOU FORECLOSE

 FACTS

In Merced, California, city council members enacted the first anti-eviction ordinance in the Central Valley. The Just Cause eviction law restricts the grounds under which a tenant can be evicted to things such as nonpayment of rent, violating lease terms and the removal of the property from the rental market by the landlord.  The law forbids tenant eviction due to foreclosure.   There are 15 other cities with similar laws such as Los Angeles, San Francisco, Maywoodand Richmond, Glendale, Oaklandand San Diegohave ordinances as well.  (ladj42512) 

If the tenant already has a lease before the foreclosure and/or did not know about the foreclosure at the time of the lease the tenant is already protected by federal law.  The biggest effect here is that it appears to allow month to month tenancies to stay on indefinitely while the federal law allows 90 days notice where there is no lease.  I wonder if preemption comes into play here.

IN OTHER CALIFORNIA COUNTIES YOU CANNOT EVEN EVICT THE TENANT WHEN THE RENT IS NOT PAID FOR THREE MONTHS. 

FACTS 

In the City ofLos Angeles a mortgage company attempted to evict a nonpaying tenant for a Los Angeles home because of nonpayment of rent.  PRIVATE NATIONAL MORTGAGE ACCEPTANCE COMPANY LLC,  purchased the property at a foreclosure sale.  The company then served the renter KAMIE STANKO a  three day notice to pay the rent or quit.    Private National contended she had stopped paying the rent of $2,500 per month.  

HOWEVER, Los Angeles Superior Court Judge Lawrence H. Cho, granted Stanko’s motion to quash the eviction complaint finding the bank failed to give her a 90-day notice to quit under the 3-year old  Protecting Tenants at Foreclosure Act.  The judge ruled that Private National’s failure barred it from booting her out even though she was behind in her rent to the tune of $22,500 after not paying for nearly a year. (PNMAC Mortgage Go. LLC v. Stanko, 11Uo4495 (Los Angeles County Superior Court, filed 2011). 

MORAL 

Are you a tenant?  Do you have a lease? Or a month to month tenancy?  Did you fail to pay rent?  Seems Cash for keys has gone up as to cash considering this case.

 

 

 

Filed Under: Investors, Real Estate Professionals Tagged With: , , , , , ,

Protect your essence!

May 3, 2012 By
I received this today & wanted to share it with you. Having your identity stolen is not a load of chuckles, believe me; been there, done that, got the T shirt.
 
For the eleventh consecutive year, identity theft surpassed debt collection and internet services complaints as the most prevalent form of consumer fraud, according to the Federal Trade Commission, which received almost 251,000 identity theft complaints last year. For the first time, “imposter scams” – where imposters posed as friends, family, respected companies or government agencies to get consumers to send them money – made the top 10.

Many consumers associate identity theft with email solicitations and computer firewall breaches, but checks, credit cards and Social Security numbers remain targets as well. To protect yourself from becoming a victim, follow these tips to prevent identity theft.

Checks

- Use your initials and last name when ordering printed checks. A check forger won’t know how you sign your checks, but your bank will.
- Do not have your home phone number or Social Security number printed on your checks. Use your work phone number. Use a post office box or work address instead of your home address.
- Order new checks from your bank and pick them up at the bank, rather than having them sent to your home mailbox.

Credit cards

- When paying credit card bills, write only the last four digits of the account number in the check memo line.
- Do not sign the back of your credit card — instead write, “Photo ID required.”
- Photocopy both sides of your driver’s license, credit cards and other important contents of your wallet. In the event it is stolen, you’ll know exactly what is missing.
- Keep a list of your credit card numbers and their toll-free customer service numbers so you can cancel cards quickly if lost or stolen. Keep the list in a safe place in your home, not in your wallet.

Social Security Number

- Do not carry your Social Security card in your wallet. Memorize the number and put the original card in a safe place.
- If you believe your Social Security number has been compromised, contact the Social Security Administration fraud line 800-269-0271.

PINs and Passwords

- Do not write your PIN on the back of the card or on anything else in your wallet.
- Use different PINs for each debit and credit card. If you have too many to remember, consider reducing the number of cards you carry in your wallet.
- Do not use easily available information, like your birth date, phone number or part of your Social Security number, for PINS and passwords.

Mail and Trash

- Use post office collection boxes for outgoing mail, rather than your home mail box.
- Shred any trash that may contain personal information, including charge receipts, credit applications, insurance forms, medical statements, checks and bank statements, expired credit and debit cards and direct mail credit offers.
- You can opt not to receive direct mail credit offers by calling 888-567-8688.

If your wallet is stolen, you should immediately:
- File a police report to document the theft and the wallet contents.
- Contact one of the national credit reporting organizations (listed below) to have a fraud alert placed on your name and Social Security number. The organization you contact is required to contact the other two. If the thief’s purchases initiate a credit check, the credit reporting organization can alert the merchant. Placing a fraud alert entitles you to free copies of your credit reports.
- Equifax 800-525-6285
- Experian 888-397-3742
- Trans Union 800-680-7289
- Close all accounts for missing credit cards. Check your credit reports for accounts opened fraudulently.
- File a complaint with the Federal Trade Commission, which maintains a database of identity theft cases, online at www.consumer.gov/idtheft . This database assists law enforcement agencies and helps the FTC learn more about identity theft.
- Notify your bank if your wallet contained a checkbook or debit/ATM cards.

 
Thank you to David Valenzuela at mycitylender.com for the heds up.
Filed Under: Borrowers, Investors, Real Estate Professionals Tagged With: , , , , , ,

Home sales in California

March 26, 2012 By

This article looks at home sales volume, and discusses California trends in homebuying and selling. Many thanks to First Tuesday

 first tuesday 3474 Niki Way, Riverside, CA 92507
Phone (800) 794-0494 Fax (877) 319-8510 Web www.firsttuesday.us

29,630 new and resale home transactions closed escrow in California during February 2012, up 8% from one year ago when 27,320 sales closed escrow, and up 5% from January. For the past two years, home sales have existed on a “bumpy plateau,” with dramatic changes in sales volume from month to month, but little overall change. All forecasts are made by first tuesday based on current data, influential factors and market trends.

Recent sales numbers suggest the upcoming years through 2016 will be characterized by a bumpy plateau in home sales volume. Volume and prices fluctuated from month to month in 2011, with little overall gain in sales from the year before. A (short-lived) rise is expected in the first months of 2012, continuing a trend started by hisorically low prices and interest rates in late-2011. [For more on the influence of interest rates on home sales, see the first tuesday Market Chart, Buyer Purchasing Power]

 Little overall change from 2010’s numbers will occur until California employment growth and homebuyer confidence show consistent improvement over a substantial period of time. For example, in 1994, when the economy began to rise from the recession of 1991, it took 24 consecutive months of improved job numbers for the housing market to respond with increased sales volume.

 Current trends in jobs and consumer confidence do not suggest any equivalent improvement in sales volume is imminent. At the time of this writing, 30% of all homeowners cannot sell and relocate because their homes are worth significantly less than the debt encumbering them. Worse, lenders are reluctant to consent to any discounts on short sale payoffs when sellers are even remotely capable of paying on the loan. [For a discussion of the challenges facing current job seekers, see the August 2011 first tuesday article, Jobs are scarce whether or not you can sell your home.]

 first tuesday forecasts home sales volume will return to the 2006 levels around 2017-2018. The peak sales volume last seen in 2004, inflated by speculator acquisitions, may never return at all.

 Relocating Baby Boomers going into retirement later this decade will be the primary propelling force in both selling homes and buying replacements. Their Generation Y (Gen Y) children will add to the sales volume as they become first-time homebuyers whose influence will peak at the end of this decade. [For an analysis of the Boomers’ lasting influence, see the first tuesday Market Chart, Boomers retire, and California trembles.]

 

Filed Under: Investors, Real Estate Professionals Tagged With: , ,

Have you ever thought about a different IRA to retire on?

March 26, 2012 By

 A very interesting take on an area you need to consider. Thank you to Ross Kenneth Urken at Dailyfinance.com

The economic prognosticators have spoken: Tax hikes are coming — soon. And that means you may want to adjust your retirement planning to compensate.

It wasn’t that hard to do the math: Thanks to tax cuts, wars, the recession and our growing population of retirees, the federal government is spending more than it takes in — a lot more — and will have to increase revenue to make up the difference. That this will be necessary has been obvious for years, but politics and our ongoing economic malaise have postponed the inevitable.

In 2013, experts say, the fiscal strain will hit critical mass and the delays will end. The top income bracket will go from paying 35% to almost 40%, with surtaxes expected in 2014. After that? They could even go higher.

Which is why future retirees looking for savvier ways protect their money in the long term are flocking to Roth IRAs, according to Doug Lockwood, CFP at Hefty Wealth Partners in Auburn, Ind.

What is a Roth IRA?

The Roth Individual Retirement Arrangement is a retirement plan that allows you to withdraw money tax-free in retirement. That contrasts with traditional IRAs and retirement plans, that let you deposit pre-tax funds, but tax your withdrawals.

Now, in a traditional IRA, you can deduct your contribution (up to $5,000 annually) from your taxable income. But let’s think about the future.

There’s an old business school trick called the Rule of 72 for estimating how many years it will take for an investment to double: Divide 72 by your average return on investment percentage, and you have a rough answer. So, if someone earns 8% on a Roth IRA, — 72/8 = 9 — their money will double every 9 years. Thus, $5,000 invested at age 30 will become $10,000 at 39, $20,000 at 48, $40,000 at 57 and $80,000 at 66. If that were a traditional IRA, the investor would then have to pay income taxes on the $80,000.

With the Roth, you don’t get a deduction for your contribution, so you pay the taxes on the initial $5,000 you put in. Your investment grows the same way, but when you take money out, it’s tax free. Basically, you’re choosing between paying taxes on the seeds or on the crops.

The crux of the matter comes down to people’s belief that taxes will continue to increase. Based on that premise, it’s better to pay the taxes on your initial investments now, while rates are lower, than to wait and pay a higher rate on your total returns when you remove the money at retirement.

The Roth’s Rise

IRA’s are the most popular type of retirement savings product, holding $4.7 trillion in assets as of the end of 2010, according to Mintel Market Research. And according to the Investment Company Institute’s 2008 IRA report, as of May 2008, 41% ofU.S. households had an IRA. Back then, the great majority of IRA owners had a traditional IRA (89.6%), while a modest 4.2% had a Roth (and 6.1% had another type, such as a SEP or SIMPLE). But it was Roths that were experiencing the most growth — the number of accounts increased 47% from 2000 to 2008.

And the Roth has gained continued momentum throughout the recessionary period: In 2010, 38.5 million U.S. households had traditional IRAs, and 19.5 million had Roth IRAs.

“Now all of sudden, the Roth makes a whole lot more sense or at least makes people take a view at its benefits over the traditional IRA,” Lockwood said.

The advantage of a Roth is that it’s never going to be taxed again, it has capital appreciation as long as it grows and you get it back tax free. “That’s a huge, huge benefit for people worried about government manipulation and the IRS,” Lockwood said. “Inside an IRA, you don’t know what you’re going to get back.”

Much of the growth in IRAs comes from rollovers from other types of retirement plans as people try to protect their assets from future tax hikes. The majority of assets are held in Traditional IRAs, but more of the new money coming in is going into Roth or other types of IRAs, according to the Employee Benefit Research . Deduct the contribution from your annual income today or not? As tempting as a tax break today might be, the savvy personal finance planner might do well to be patient and avoid potentially painful taxes down the road by joining the Roth trend.

Filed Under: Investors Tagged With: , ,

Say goodbye to tax deductions for home interest?

March 8, 2012 By

This is a very interesting viewpoint on home loan interest deductability, what do you think?.

Thank you to First Tuesday Realty Publications for shasring their thoughts. Their contact information is at the bottom.

As of January 1, 2012, a new law has eliminated the ability of large numbers of home buyers and owners to write off their mortgage insurance premiums (MIPs). Alongside the loss of the tax deduction, Congress now requires new fees on all conventional Federal Housing Administration (FHA) loans. Together, these regulations will lead to an increase in the cost of homeownership for buyers by the end of this year.

Millions of existing owners and new homebuyers will be affected by the elimination of the MIP deduction. The law will affect all newly originated mortgages with less than a 20% downpayment and may also apply to all low downpayment-mortgages made after 2007. [For information on personal savings and the 20% downpayment solution, see November 2011 first tuesday article, The 20% solution: personal savings rates and homeownership.]

Enacted in 2006, the MIP deduction allowed borrowers using private or federal insurance to write off their premiums. In most cases, borrowers saved significantly from their post-tax deductions, depending on marginal federal tax brackets (with higher income households saving more). Thus, the termination of mortgage insurance deductibility concerns middle-income and first-time buyers in terms of price consideration.

This elimination of the ability to write off premiums is not the only change in law to affect borrowers’ housing costs. Beginning in April, Fannie Mae and Freddie Mac will charge a surtax on guarantee fees charged to private lenders, which could add an eighth of a percentage point to rates, significantly increasing costs paid by the borrower over the life of the loan. FHA loans will raise annual premiums for new borrowers by one-tenth of a point annually.

first tuesday take: Embrace this change. Government sanctioned tax policies to supplement homeownership have artificially increased home prices as a tool to keep the economy going. The American Dream, built on expectations of homeownership, has suffered as a result.

While the virtue of owning a home has become deeply embedded in the American psyche, our present model of homeownership is riddled with detrimental policies that serve only to increase debt for homeowners and, as we have seen again recently, increase their risk of losing their homes.

The homeownership driven economy of the past 30 years was created through government tax incentives, supporting loopholes to purportedly implement the nation’s housing policy rather than personal savings for that home purchase and a sustainable economic vision for those inclined to own. [For more information on government tax deductions in relation to homeownership, see the June 2011 first tuesday article, Subsidizing the American Dream.]

Rather than benefitting American homeowners, tax subsidies always both profit the rich and support loss-operating businesses – builders, mortgage banks and the Wall Street bond market. Worse, they are bad for the economy, to say nothing about the inevitable violence these juiced up conditions bring to the real estate market.

As housing subsidies have been determined to have no effect upon the level of homeownership nationwide, the loss of tax deductions will not reduce the number of homeowners. Instead, this change will ultimately benefit homebuyers because the government will then have an opportunity to create a stronger plan for economic recovery rather than simply dropping interest rates and granting subsidies for homebuyers so construction jobs and lending activity take off again.

The removal of the MIP deduction is a first step toward the repeal of mortgage interest tax deduction subsidy, which has long been advocated by first tuesday. Such a repeal will have little impact on sales prices. The low- and mid-tier homebuyers and owners receive no value from these subsidies. Subsidies serve primarily to drive up the price of homes (evidenced most recently by the cycle in 2009-2010) and mortgages, both of which form the pass through of the subsidy to the rich.

It is the rich that scream about losing the subsidies (builders, lenders, provides of closing services and high-tier homeowners).

Better yet, without subsidies, prices will more likely remain at their fundamental equilibrium rather than be driven by conditions outside the basic need for a home. A change in the collective attitude regarding mortgage debt is needed, with the MIP deduction being a step in the right direction. [For more information on mean pricing and the historical pricing equilibrium, see October 2011 first tuesday article, The equilibrium trendline: The mean-price anchor.]

Re: “Federal tax deduction for mortgage insurance premium expires” from L.A. Times

Copyright © 2012 by the first tuesday Journal Online – firsttuesdayjournal.com;
P.O. Box 20069, Riverside, CA 92516

Readers are encouraged to reproduce and/or distribute this article.

Copyright © 2012 by first tuesday Realty Publications, Inc. Readers are encouraged to reprint or distribute this information with credit given to the first tuesday Journal Online — P.O. Box 20069, Riverside, CA 92516.

Filed Under: Borrowers, Investors Tagged With: , , , , , , , ,

Sales of existing homes at almost a 2 year high!

March 7, 2012 By

Good news for a change!

 Buying existing homes contracts have hit a two year high according to NAR, the National Association of REALTORS®’ index of pending home sales., The housing  recovery is looking good folks.. The index of deals for previously owned homes is up 8 percent from last January

This increase is equal to the 2010 tax credit incentive sunset. Could the market be rebounding without a major government crutch?.

While the west region showed the smallest % increase, anything is better than nothing, right? .Existing home sales nationally were up more than 4 percent in January, bumping 4.57 million.

Housing experts such as Lawrence Yun, the REALTOR® group’s chief economist, credit the sliding unemployment rate—which fell in January to its lowest point in three years —as well as a downward trend in home prices and a supply of homes that is at a nearly seven-year low.

“Movements in the index have been uneven, reflecting the head winds of tight credit, but job gains, high affordability and rising rents are hopefully pushing the market into what appears to be a sustained housing recovery,”  according to Lawrence Yun, the REALTOR® group’s chief economist,  in a statement.

 

Filed Under: Borrowers, Investors, Loan Information, Real Estate Professionals Tagged With: , , , ,

The Homeowner Bill of Rights

March 1, 2012 By

Here’s something you might find interesting. As usual good intentions that may lead to unintended consequences.
California Attorney General Kamala D. Harris has announced the California Homeowner Bill of Rights designed to protect homeowners from unfair practices by banks and mortgage companies and to help consumers and communities cope with the state’s urgent mortgage and foreclosure crisis. Joined by Senate President pro Tem Darrell Steinberg and Assembly Speaker John A. Perez, Attorney General Harris announced her sponsorship of six bills designed to guarantee:

►Basic standards of fairness in the mortgage process, including an end to dual-track foreclosures

►Transparency in the mortgage process, including a single point of contact for homeowners

►Community tools to prevent blight after banks foreclose upon homes

►Tenant protections after foreclosures

►Enhanced law enforcement to defend homeowner rights – paid for by fees imposed on banks

►A special grand jury to investigate financial and foreclosure crime

“California communities and families are being devastated by the mortgage and foreclosure crisis. We must ensure the deceptive practices that caused it never happen again,” said AG Harris. “The California Homeowner Bill of Rights will provide basic fairness and transparency for homeowners, and improve the mortgage process for everyone.”

The legislation builds on the California commitment announced by Attorney General Harris earlier this month, which is expected to result in $18 billion of benefits for California homeowners. That agreement included reforms for mortgages owned by the five banks that were signing parties. The California Homeowner Bill of Rights will strengthen those protections, make them permanent, and apply them to all mortgages in the state.

“I want to congratulate the Attorney General on the victory she won on behalf of the people of California,” said Speaker John A. Perez. “Our state has suffered greatly as the result of bad actors in the banking and financial industries, and this settlement holds them accountable as we continue the difficult work of recovering the housing market and stemming the tide of foreclosures, evictions and auctions.”

If passed, the following bills would:

Assembly Bill 1602/Senate Bill 1470: The Foreclosure Reduction Act of 2012Authors:Assemblymen Mike Eng and Mike Feuer; Senators Mark Leno, Fran Pavley, and Senate President pro Tem Darrell Steinberg

►Require creditors to provide documentation to a borrower that establishes the creditor’s right to foreclose on real property prior to recording a notice of default.

►Require creditors to provide documentary evidence of ownership, the chain of title to real property, and the right to foreclose, at the time of the filing of a notice of default.

►Prohibit creditors from recording a notice of default when a timely-filed application for a loan modification or other loss mitigation measure is pending.

►Prohibit creditors from recording a notice of sale when a timely-filed application for a loan modification or other loss mitigation measure is pending.

►Prohibit creditors from recording a notice of sale while a borrower is in compliance with the terms of a trial loan modification or after another loss mitigation measure has been approved.

►Require creditors to disclose why an application for a loan modification or other loss mitigation measure has been denied.

►Require that notices of foreclosure sales be personally served, including notices of foreclosure sale postponement.

►Provide homeowners with a private right of action in instances in which the requirements set forth in the legislation are not followed

Assembly Bill 2425/Senate Bill 1471: Due Process Reform Legislation

Authors: Assemblywoman Holly Mitchell; Senators Mark DeSaulnier and Fran Pavley
► Require creditors to provide a single point of contact to borrowers in the foreclosure process who will be responsible for providing accurate account and other information related to the foreclosure process and loss mitigation efforts.

►Require creditors to provide a dedicated electronic mail address, facsimile number and mailing address for borrowers to submit information requested as part of a loan modification, short sale or other loss mitigation option.

►Authorize borrowers to challenge the unlawful commencement of a foreclosure process in court.

►Impose a $10,000 civil penalty on the recordation or filing of “robosigned” documents, defined as documents that contain information that was not verified for accuracy by the person or persons signing or swearing to the accuracy of the document or statement.

►Require that certain documents be recorded in a county recorder’s office.

Assembly Bill 2314/Senate Bill 1472: Blight Prevention Legislation

Authors: Assemblywoman Wilmer Carter; Senator Fran Pavley
► Prevent blight enforcement actions from being taken against new purchasers of blighted property for 60 days, provided that repairs are being made to the property.

►Require banks that release liens on foreclosed property to inform local code enforcement agencies of the release so that demolition of blighted property can proceed.

►Increase fines against owners of blighted property from $1,000 per day to $5,000 per day, and allow the imposition of the costs of a receivership over blighted property to be imposed directly against the owner of blighted property.

Assembly Bill 2610/Senate Bill 1473: Tenant Protection Legislation

Authors: Assemblywoman Nancy Skinner; Senator Loni Hancock

►Require purchasers of foreclosed homes to honor the terms of existing leases and give tenants at least 90 days notice before commencing eviction proceedings.

Assembly Bill 1950: Enhancement Of Attorney General Enforcement

Author: Assemblyman Mike Davis

►Impose a new $25 fee to be paid by servicers upon the recording of a notice of default. The fee would be deposited into a real estate fraud prosecution trust fund that would support the Attorney General’s efforts to deter, investigate and prosecute real estate fraud crimes, including the work of the Mortgage Fraud Strike Force.

►Extend the statute of limitations from one year to four years from the date of discovery for violations of law commonly occurring in connection with foreclosure-related scams, including acting as a real-estate agent without a license and charging up-front fees for loan modification services.

Senate Bill 1474/Assembly Bill 1763: Attorney General Special Grand Jury

Authors: Assemblyman Mike Davis; Senator Loni Hancock

►Authorize the Attorney General to impanel a special grand jury for the purposes of investigating and indicting multi-jurisdictional financial crimes against the state.

 

Fred Kreger, CMC

President Elect & Vice President, Government Affairs

California Association of Mortgage Professionals (CAMP)

“Excellence and Integrity in Lending”

 

 

Certified Mortgage Consultant

American Family Funding,

A Division of American Pacific Mortgage – A Direct Lender

24961 The Old Road Ste 101

Stevenson Ranch, CA 91381

Phone: (661) 505-4311

Cell: (661) 400-8905

Fax: (661) 705-8339

DRE License # 01371184 / 01215943

NLMS License# 214640 / 1850

 

Check out our GA blog site: www.campga.org

 

Filed Under: Borrowers, Investors, Real Estate Professionals Tagged With: , , , , , , , , , ,

Loans available today

January 4, 2012 By

 

Please give some thought to using your retirement plan as a source of investment funds! Call us.

LOANS PRESENTLY AVAILABLE FOR PURCHASE

Loan 14071

$40,000 1st T.D. Wanted. The note pays $367.00 per month including 11% interest*** all due in 5 years. Secured by home with a spectacular view on 31472 Panorama Dr, Running Springs. Property is being purchased for $63,000 with $23,000 cash down. Call for additional details.

 

Loan 14069

$31,000 1st T.D. Wanted. The note pays $250.00per month including 10% interest*** all due in 1 year. Secured by permanently attached manufactured home on large lot on Geary Ave, Menifee (near Temecula). Broker estimate of value is $150,000.00. Loan to value ratio based on the above is 21%. Call for additional details.

Loan 14067

$115,000 1st T.D. Wanted At close 12 months interest in advance will be paid ($12,650.00) The note pays $1,150.00 per month including 11% interest*** all due in 5 years. Secured by home on 1816 Scott Ave, Los Angeles (Echo Park, near Dodger Stadium). $18,000 of loan funds will be held to pay for rehab. Broker estimate of value is $250,000.00. Loan to value ratio based on the above is 48%. Call for additional details.

　*******************************************************

these trust deeds are offered for sale subject to prior sale. we do not guarantee the accuracy of the above information. to receive a free copy of this brochure, send us your name and address. warning: if payments default on any trust deeds, you may have to foreclose at substantial extra expense to prevent loss of your money. buyer will be required to release the hope trust deed company, inc. dba hope 4 loans from all liability due to any loss, and buyer will be required to satisfy himself as to the adequate security value of the t.d. real property, the payor’s ability to pay, and the sufficiency of all documents.

Filed Under: Investors, Loan Information

A commission or not?

December 30, 2011 By

Quite often we are asked if a licesee can participate in a loan commission.

The answer is absolutely!, maybe.

With a valid R.E. Broker’slicense, & the property is not a 1-4 residential, the answer is how much do you want & can I keep at least a meager amount to buy fuel for the yacht?

With a Salesperson’s license, as long as the check is written to your broker of record, the only difference is how much more I keep for gas for the company plane.

A single family (1-4) is a whole different kettle of fish. RESPA (Real Estate Settlement Procedures Act) mandates that in order to participate in the commission earned, you must perform some or all of 14 services normally performed in the origination of a loan. In the interest of brevity, call & I’ll be happy to send you the whole enchilada.

Additionally, on the 1-4s there’s a very good chance you may need an additional license from the federal government which entails an unbelievable amount of education, reporting, & quite probably more hassle than it’s worth unless you are deeply involved in the conventional lending market.

There is a possible out of this quagmire which has to do with the purpose of the loan. If it is not for consumer purposes, you may be home free.

So there ya go. My best suggestion is to call prior to creating a pickle for yourself.

Filed Under: Investors, Loan Information, Real Estate Professionals Tagged With: , , , , , , , , , , ,

A love note from the City of Los Angeles

December 30, 2011 By

This isn’t particularly new, but they rubbed my nose in it, so I wanted to be sure you are aware & register with them. (Doesn’t that word just send a warm glow directly to your heart)

You need to register properties that have been issued a notice of default every calendar year. If you registered it in 2011, it needs to be reregistered in 2012 or pay  $250 PER DAY AS A FINE.

If you had a NOD filed last year, the property reverted to you (& was sold or not) or reinstated you have until January 31, 2012 to upload supporting documentation so the staff can confirm/deny the status change through a verification process. (I promise I am not making this up!)

The info is available at http//clkrep.lacity.org/onlinedocs/2009/0365_ord_18115.pdf  

 

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